The role of transformational- and servant leadership in a governmental agency (Bank of the Lao PDR) in order to build an effective working environment

Abstract

Leadership is very crucial for any type of organisations, especially leadership that stresses the importance of leaders and followers interaction. In a Lao governmental agency, the Bank of the Lao PDR (BOL), this type of leadership is highly required in order to develop employees and build an effective working environment. Transformational is considered to be one of the most effective leadership approaches in terms of developing employees. It focuses on the process that changes and transforms people. It is concerned with emotions, values, ethics, and long-term goals. Similarly, servant leadership emphasises that leaders be attentive to the concerns of their followers, empathise with them, and nurture them.

This qualitative research study attempts to gain an insight into transformational- and servant leadership in relation to building an effective working environment in BOL. This includes the perspectives and real practices of these types of leadership as well as the factors that support or prevent the practice of them. This research study uses semi-structured interviews to collect relevant data from ten leaders in BOL.

The findings of the research reveal that leaders in BOL practice transformational- and servant leadership to some extent. Regarding transformational leadership, leaders focus on its four main behaviours (4Is): idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration. The practice of servant leadership is also focused on its seven core behaviours: conceptualising, emotional healing, putting followers first, helping followers grow and succeed, behaving ethically, empowering, and creating value for the community. These key behaviours of transformational- and servant leadership play a very crucial role in increasing effectiveness of the working environment in BOL.

Finally, this study concludes that transformational- and servant leadership is fundamental for BOL. This is because these types of leadership can help to improve a wide range of components that are crucial for organisational success such as employee working commitment, employee empowerment, ethical behaviours, employee motivation, and employee creativity. Without transformational- and servant leaders, it is hard that the organisation to be prosperous.