Essential High-Moral Trusted Transformational Leadership in Democratic Work Organizations, Problems and a Solution

Abstract

Research on cooperatives and other democratic work organizations (DWOs) has rarely alluded to the leadership required to retain egalitarian and democratic principles amid success and growth despite the tendency of successful trustful transformational leaders to become dysfunctional self-perpetuators and stop risky innovation that would advance DWO principles. Dysfunction is concealed by the use of powers and capitals, leading to distrust, brain-drain and collapse or abandonment of DWO principles. Problematic trust and leadership concepts have helped to veil leaders’ prime role in these negative events. Their timely succession just as they change course and begin to eliminate critical thinkers and innovators, before they become irreplaceable, is decisive for DWOs longevity, but no solution to this problem has been devised. Analysis of such negative events in the kibbutz field augmented by studies of DWOs, leadership and trust offers ideas for a solution.

Keywords: cooperatives, democratic work organizations, high-trust cultures, servant transformational leadership, leaders’ succession

JEL Classification: J24, J54, L69, M11, O30, P32