After a thorough analysis of the existing culture at the dry-cleaning company and the definition of the desired values and culture for good customer service and growth, the leadership team realised that the change must start at the top of the business. The investigation identified a number of issues as the root cause of the problem including employee resistance and functional teams working against each other. The leadership team admitted that these problems might have been symptomatic of how the employees were managed. The chief executive officer (CEO) requested employees, during a company-wide communication event, to post comments on a company blog on the intranet concerning the leadership impact over the last few years. These were the results:

• Top management has all the power. They are in charge and employees have to comply.

• The expertise of operating teams and individuals was not recognised.

• The project was managed by demand and not inclusion.

• Punishnyat for mistakes was the order of the day. The only reward was to avoid retribution.

• Employets were very dependent, each step of the way, on receiving instructions from management.

• There were instances where employees were asked for their opinions but it was later realised that management never intended to use the ideas. It was therefore perceived as a fake exercise.

• It is generally believed that the organisation will only change if the leadership cadre was replaced by new blood. The feedback from employees was a revelation for the executive team. They realised that the organisational change might be much tougher than initially expected. A major issue was employee distrust in the leadership, and extreme scepticism amongst employees whether things could change - based on past experiences. A transformational type of leadership might be the solution to the leadership crisis at the dry-cleaning company.

• Explain the behaviours that transformational leaders possess. (5 marks) Describe how the transformational style of leadership will benefit the dry-cleaning company?