Transformational leadership

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Transformational leadership is a theory of leadership where a leader works with
teams to identify needed change, creating a vision to guide the change through
inspiration, and executing the change in tandem with committed members of a group; [1]
[2]
 it is an integral part of the Full Range Leadership Model. Transformational leadership
is when leader behaviors influence followers and inspire them to perform beyond their
perceived capabilities. Transformational leadership inspires people to achieve
unexpected or remarkable results. It gives workers autonomy over specific jobs, as well
as the authority to make decisions once they have been trained. This induces a positive
change in the followers attitudes and the organization as a whole. Transformational
leaders typically perform four distinct behaviors, also known as the four I's. These
behaviors are inspirational motivation, idealized influence, intellectual stimulation,
individualized consideration.
Transformational leadership serves to enhance the motivation, morale, and job
performance of followers through a variety of mechanisms; these include connecting the
follower's sense of identity and self to a project and to the collective identity of the
organization; being a role model for followers in order to inspire them and to raise their
interest in the project; challenging followers to take greater ownership for their work, and
understanding the strengths and weaknesses of followers, which allows the leader to
align followers with tasks that enhance their performance. It is also important to
understand the qualities a transformational leadership can bring to a work organization.
Transformational leadership enhances commitment, involvement, loyalty, and
performance of followers. Followers exert extra effort to show support to the leader,
emulate the leader to emotionally identify with him/her, maintain obedience without
losing any sense of self esteem.[3] Transformational leaders are strong in the abilities to
adapt to different situations, share a collective consciousness, self-manage, and be
inspirational while leading a group of employees.
Inspirational motivation is when the leader inspires their followers to achieve. This
leader sets high and reasonable goals for their followers and their organization. They
inspire commitment and they create a shared vision for their organization. Leaders that
utilize inspirational motivation motivate followers extrinsically and intrinsically, and they
are able to articulate their expectations clearly. Inspirational motivation is closely tied to
charisma. Charisma leads directly to having a source of authority, and could be
considered both inspirational and visionary, leading to a positive emotional impact on
that leader's followers.[4]
Idealized influence is when the leader acts as a strong role model for their organization
and leads by example. These types of leaders consider the needs of their followers and
prioritize their needs. They typically have loads of charisma and are very ethical.
Followers of these leaders typically try to emulate their leader as they tend to identify
with them easily.
 Intellectual stimulation is when the leader encourages their followers to think for
themselves. These leaders are creative, innovative, and are very open to new ideas.
They tend to be tolerant of their followers' mistakes, and even encourage them as they
believe they promote growth and improvement within the organization. These leaders
create learning opportunities for their followers and abandon obsolete practices.
Individualized consideration is when the leader establishes a strong relationship with
their followers. These leaders act as a caring supportive resource for their followers and
their organization. They mentor their followers and allocate their time to developing their
followers potential.

Contents

 1Origins
 2Definitions
 3Characteristics
o 3.1Extraversion
o 3.2Neuroticism
o 3.3Openness to experience
o 3.4Agreeableness
o 3.5Conscientiousness
 4Measurement
 5Effectiveness as compared to other leadership styles
o 5.1Transactional leadership
o 5.2Laissez-faire leadership
o 5.3Comparison of Styles among Public and Private Companies
 6Factors affecting use
 7Outcomes
 8Examples
o 8.1Nelson Mandela
 9Future
 10References

Origins[edit]
The concept of transformational leadership was initially introduced by James V.
Downton, the first to coin the term "Transformational leadership", a concept further
developed by leadership expert and presidential biographer James MacGregor Burns.
According to Burns, transformational leadership can be seen when "leaders and
followers make each other advance to a higher level of morality and
motivation."[5] Through the strength of their vision and personality, transformational
leaders are able to inspire followers to change expectations, perceptions, and
motivations to work towards common goals. Burns also described transformational
leaders as those who can move followers up on Maslow's hierarchy, but also move
them to go beyond their own interests.[6] Unlike in the transactional approach, it is not
based on a "give and take" relationship, but on the leader's personality, traits and ability
to make a change through example, articulation of an energizing vision and challenging
goals. Transforming leaders are idealized in the sense that they are a moral exemplar of
working towards the benefit of the team, organization and/or community. Burns
theorized that transforming and transactional leadership were mutually exclusive styles.
Later, researcher Bernard M. Bass expanded upon Burns' original ideas to develop
what is today referred to as Bass’ Transformational Leadership Theory. According to
Bass, transformational leadership can be defined based on the impact that it has on
followers. Transformational leaders, Bass suggested, garner trust, respect, and
admiration from their followers.
Bernard M. Bass (1985), extended the work of Burns (1978) by explaining
the psychological mechanisms that underlie transforming and transactional leadership.
Bass introduced the term "transformational" in place of "transforming." Bass added to
the initial concepts of Burns (1978) to help explain how transformational leadership
could be measured, as well as how it impacts follower motivation and performance. The
extent to which a leader is transformational, is measured first, in terms of his influence
on the followers. The followers of such a leader feel trust, admiration, loyalty and
respect for the leader and because of the qualities of the transformational leader are
willing to work harder than originally expected. These outcomes occur because the
transformational leader offers followers something more than just working for self-gain;
they provide followers with an inspiring mission and vision and give them an identity.
[7]
 The leader transforms and motivates followers through their idealized influence
(earlier referred to as charisma), intellectual stimulation and individual consideration. In
addition, this leader encourages followers to come up with new and unique ways to
challenge the status quo and to alter the environment to support being successful.
Finally, in contrast to Burns, Bass suggested that leadership can simultaneously display
both transformational and transactional leadership.
In 1985, transformational leadership had become more defined and developed whereby
leaders known to use this style possessed the following traits: idealized influences,
charisma, and inspirational motivation. Transformational leadership made transactional
leadership more effective.[8]

Definitions[edit]
Martin Luther King was known for using persuasive appeals based on reason. [9]

According to Bass,[10] transformational leadership encompasses several different

aspects, including:

 Emphasizing intrinsic motivation and positive development of followers

 Raising awareness of moral standards
 Highlighting important priorities
 Fostering higher moral maturity in followers
 Creating an ethical climate (share values, high ethical standards)
 Encouraging followers to look beyond self-interests to the common good
 Promoting cooperation and harmony
 Using authentic, consistent means
 Using persuasive appeals based on reason
 Providing individual coaching and mentoring for followers
 Appealing to the ideals of followers
 Allowing freedom of choice for followers
Transformational leaders are described to hold positive expectations for followers,
believing that they can do their best. As a result, they inspire, empower, and stimulate
followers to exceed normal levels of performance. Transformational leaders also focus
on and care about followers and their personal needs and development.
[11]
 Transformational leaders fit well in leading and working with complex work groups
and organizations, where beyond seeking an inspirational leader to help guide them
through an uncertain environment, followers are also challenged and feel empowered;
this nurtures them into becoming loyal, high performers.
There are 4 components to transformational leadership, sometimes referred to as the 4
I's:

 Idealized Influence (II) – the leader serves as an ideal role model for followers; the
leader "walks the talk," and is admired for this. A transformational leader embodies
 the qualities that he/she wants in his/her team. In this case, the followers see the
leader as a model to emulate. For the followers, it is easy to believe and trust in a
transformational leader.
 Inspirational Motivation (IM) – Transformational leaders have the ability to inspire
and motivate followers through having a vision and presenting that vision.
Combined, these first two I's are what constitute the transformational leader's
charisma. A transformational leader manages to inspire the followers easily with
clarity. The transformational leader convinces the followers with simple and easy-to-
understand words, as well as with their own image.
 Individualized Consideration (IC) – Transformational leaders demonstrate
genuine concern for the needs and feelings of followers and help them self-
actualize. This personal attention to each follower assists in developing trust among
the organization's members and their authority figure(s). For example, the
transformational leader can point out the problems of a member working in a group.
From this perspective, the leader can work towards training and developing a
follower who is having difficulties in a job. This is an important element because
teams are able to rely on and work together, so decisions can be made more
quickly, while the transformational leader increases their buy-in. [12]
 Intellectual Stimulation (IS) – the leader challenges followers to be innovative and
creative, they encourage their followers to challenge the status quo. A common
misunderstanding is that transformational leaders are "soft," but the truth is that they
constantly challenge followers to higher levels of performance. [11]
Transformational leadership is said to have occurred when engagement in a group
results in leaders and followers raising one another to increased levels of motivation
and morality.[10] It is not enough to make the correct choice, but to make the moral
choice. In simple words, a transformational leader is not selfish and sees an opportunity
of growth in others. Transformational leadership enhances intellectual stimulation
through employee training and development.
Transformational leaders do one thing tranactional leaders don't, which is going beyond
self-actualization. The importance of transcending self-interests is something lost sight
of by those who see that the ultimate in maturity of development is self-actualization.
Bass. (1999).

Characteristics[edit]
Five major personality traits have been identified as factors contributing to the likelihood
of an individual displaying the characteristics of a transformational leader. Different
emphasis on different elements of these traits point to inclination in personality to
inspirational leadership, transactional leadership, and transformational leadership.
These five traits are as follows.[13]
Results of Meta Analysis finding correlation between personality traits and transformational leadership from
data gathered by Joyce Bono and Timothy Judge.[13]

Extraversion[edit]
The two main characteristics of extraverts are affiliation and agency,[13] which relate to
the social and leadership aspects of their personality, respectively. Extraversion is
generally seen as an inspirational trait usually exhibited in transformational leadership.
Neuroticism[edit]
Neuroticism generally gives an individual an anxiety related to productivity which, in a
group setting can be debilitating to a degree where they are unlikely to position
themselves in a role of transformational leadership due to lower self-esteem and a
tendency to shirk from leadership responsibilities.[13]
Openness to experience[edit]
Creative expression and emotional responsiveness have been linked to a general
tendency of openness to experience.[13] This trait is also seen as a component of
transformational leadership as it relates to the ability to give big-picture visionary
leadership for an organization.
Agreeableness[edit]
Although not a trait which specifically points to transformational leadership, leaders in
general possess an agreeable nature stemming from a natural concern for others and
high levels of individual consideration.[13] Charisma and idealized influence is a classic
ability of individuals who possess agreeability. [13]
Conscientiousness[edit]
Strong sense of direction and the ability to put large amounts of productive work into
tasks is the by-product of conscientious leaders.[13] This trait is more linked to a
transactional form of leadership given the management-based abilities of such
individuals and the detail oriented nature of their personality. Results suggest that
transformational leaders might give greater importance to values pertaining to others
than to values concerning only themselves.[14]
Studies have shown that subordinates' and leaders' ratings of transformational
leadership may not converge. According to leaders' self‐ratings, the extraverted,
intuitive and perceiving preferences favour transformational leadership. On the contrary,
subordinates' ratings indicated that leaders with sensing preference are associated with
transformational leadership.[15]

Measurement[edit]
One of the ways in which transformational leadership is measured is through use of
the Multifactor Leadership Questionnaire (MLQ), a survey which identifies different
leadership characteristics based on examples and provides a basis for leadership
training. Early development was limited because the knowledge in this area was
primitive, and as such, finding good examples for the items in the questionnaire was
difficult. Subsequent development on the MLQ led to the current version of the survey,
the MLQ5X.
The current version of the MLQ5X includes 36 items that are broken down into 9 scales
with 4 items measuring each scale. Subsequent validation work by John Antonakis and
his colleagues provided strong evidence supporting the validity and reliability of the
MLQ5X.[16] Indeed, Antonakis went on to confirm the viability of the proposed nine-factor
MLQ model, using two very large samples. Although other researchers have still been
critical of the MLQ model, since 2003 no one has been able to provide dis-confirming
evidence of the theorized nine-factor model with such large sample sizes as those
published by Antonakis.
In regards to transformational leadership, the first 5 components – Idealized Attributes,
Idealized Behaviors, Inspirational Motivation, Intellectual Stimulation, and Individualized
Consideration – are considered to be transformational leadership behaviors.

Effectiveness as compared to other leadership styles [edit]

Studies have shown that transformational leadership styles are associated with positive
outcomes in relation to other leadership styles. It is suggested that transformational
leadership augments transactional in predicating effects on follower satisfaction and
performance.[17] According to studies performed by Lowe, Kroeck, and
Sivasubramaniam, charisma (or Idealized Influence) was found to be a variable that
was most strongly related to leader effectiveness among MLQ scales. [18] Other studies
show that transformational leadership is positively associated with employee outcomes
including commitment, role clarity, and well-being. [19] However, the effectiveness of
transformational leadership varies by the situational contexts. For example, it can be
more effective when applied to smaller, privately held firms than complex organizations
based on its outreach effect with members of the organization. [20] However, it can be
concluded that transformational leadership has a positive effect on organizational
effectiveness. This is because transformational leaders can encourage and facilitate
change in their subordinates and encourage their development and creativity. [21]
Transactional leadership[edit]
In contrast to transformational leadership, transactional leadership styles focus on the
use of rewards and punishments in order to achieve compliance from followers.
According to Burns, the transforming approach creates significant change in the life of
people and organizations. It redesigns perceptions and values, and changes
expectations and aspirations of employees.[22] Unlike in the transactional approach, it is
not based on a "give and take" relationship, but on the leader's personality, traits and
ability to make a change through example, articulation of an energizing vision and
challenging goals.[23]
Transformational leaders look towards changing the future to inspire followers and
accomplish goals, whereas transactional leaders seek to maintain the status quo, not
aiming for progress. Transactional leaders frequently get results from employees by
using authority, while transformational leaders have a true vision for their company, are
able to inspire people, and are entirely committed to their work.
The MLQ does test for some transactional leadership elements – Contingent Reward
and Management-by-Exception – and the results for these elements are often
compared to those for the transformational elements tested by the MLQ. Studies have
shown transformational leadership practices lead to higher satisfaction with leader
among followers and greater leader effectiveness, while one transactional practice
(contingent reward) lead to higher follower job satisfaction and leader job performance.
[24]

Laissez-faire leadership[edit]
In a laissez-faire leadership style, a person may be given a leadership position without
providing leadership, which leaves followers to fend for themselves. This leads to
subordinates having a free hand in deciding policies and methods.
Studies have shown that while transformational leadership styles are associated with
positive outcomes, laissez-faire leadership is associated with negative outcomes,
especially in terms of follower satisfaction with leader and leader effectiveness. [24] Also,
other studies comparing the leadership styles of men and women have shown that
female leaders tend to be more transformational with their leadership styles, whereas
laissez-faire leadership is more prevalent in male leaders. [25]
Comparison of Styles among Public and Private Companies[edit]
Lowe, Kroeck, and Sivasubramaniam (1996) [18] conducted a meta-analysis combining
data from studies in both the private and public sector. The results indicated a hierarchy
of leadership styles and related subcomponents. Transformational Leadership
characteristics were the most effective; in the following order of effectiveness from most
to least: charisma-inspiration, intellectual stimulation, and individual consideration.
Transactional Leadership was the next most effective; in the following order of
effectiveness from most to least: contingent reward and managing-by-exception.
Laissez Faire leadership does not intentionally intervene, and as such, is not measured,
and has no effectiveness score.
Table 2.3
Correlations With Effectiveness in Public and Private Organizations

Secto
r

Publi Privat
Leadership
c e

Transformational

Charisma-inspiration .74 .69

Intellectual stimulation .65 .56

Individual
.63 .62
consideration

Transactional

Contingent reward .41 .41

Managing-by-exception .10 –.02

Results of a meta-analysis of effectiveness of as adapted by Bass (2006) in

Transformational Leadership.[26]

Factors affecting use[edit]

Phipps suggests that the individual personality of a leader heavily affects their
leadership style, specifically with regard to the following components of the Five-factor
model of personality: openness to experience, conscientiousness,
extraversion/introversion, agreeableness, and neuroticism/emotional stability (OCEAN).
[27]
Phipps also proposed that all the Big Five dimensions would be positively related to
transformational leadership. Openness to experience allows the leader to be more
accepting of novel ideas and thus more likely to stimulate the follower intellectually.
Conscientious leaders are achievement oriented and thus more likely to motivate their
followers to achieve organizational goals. Extraverted and agreeable individuals are
more outgoing and pleasant, respectively, and more likely to have successful
interpersonal relationships. Thus, they are more likely to influence their followers and to
be considerate towards them. Emotionally stable leaders would be better able to
influence their followers because their stability would enable them to be better role
models to followers and to thoroughly engage them in the goal fulfillment process. [27]
A specific example of cultural background affecting the effectiveness of transformational
leadership would be Indian culture, where a nurturant-task style of leadership has been
shown to be an effective leadership style. Singh and Bhandarker (1990) demonstrated
that effective transformational leaders in India are likes heads of Indian families taking
personal interest in the welfare of their followers. Leaders in Indian organizations are
therefore more likely to exhibit transformational behaviors if their followers are more
self-effacing in approaching the leaders. It is also hypothesized in general that
subordinates’ being socialized to be less assertive, self-confident, and independent
would enhance superiors’ exhibition of transformational leadership. [28]
Follower characteristics, combined with their perceptions of the leader and their own
situation, did appear to moderate the connection between transformational leadership
and subordinates’ willingness to take charge and be good organizational citizens. For
instance, if subordinates in a work group perceive their leader to be prototypical of
them, then transformational leadership would have less of an impact on their willingness
to engage in organizational citizenship behaviors. Likewise, if subordinates are goal
oriented and possess a traditional view of the organizational hierarchy, they tend to be
less affected by transformational leadership. Self-motivated employees are less likely to
need transformational leaders to prod them into action, while “traditionalists” tend to see
positive organizational citizenship as something expected given their roles as followers
—not something they need to be “inspired” to do.
Evidence suggests that the above sets of factors act, in essence, as both inhibitors of
and substitutes for transformational leadership. As inhibitors, the presence of any of
these factors—either independently or especially collectively—could make the presence
of a transformational leader “redundant” since followers’ positive behavior would instead
be sparked by their own motivations or perceptions. On the other hand, when these
factors are not present (e.g., employees in a work group do not see their leader as “one
of us”), then transformational leadership is likely to have a much greater impact on
subordinates. In essence, when such “favorable conditions” are not present, managers
—and the organizations they work for—should see a better return on investment from
transformational leadership.[29]
It was shown that leader continuity enhanced the effect of transformational leadership
on role clarity and commitment, indicating that it takes time before transformational
leaders actually have an effect on employees. Furthermore, co-worker support
enhanced the effect on commitment, reflecting the role of followers in the
transformational leadership process. However, there are also factors that would serve to
hinder the exhibition of transformational leadership, including the organizational
structure, ongoing change, the leaders’ working conditions, [19] and the leaders' elevated
perceptions of personal power.[30]

Outcomes[edit]
Bernard Bass in Leadership and Performance Beyond Expectations states some
leaders are only able to extract competent effort from their employees, while others
inspire extraordinary effort. Transformational leadership is the key (Bass, 1985). [31]
Implementing transformational leadership has many positive outcomes not only in the
workplace but in other situations as well. Evidence shows that each of the previously
talked about four components of transformational leadership are significantly associated
with positive emotions and outcomes in the workplace as well as in team projects
performed online.[32][33][34] One recent study indicates that these four components are
significantly associated with higher job satisfaction and the effectiveness of the
employees. Both intellectual stimulation and inspirational motivation are associated with
a higher degree of positive emotions in the workplace such as enthusiasm, happiness,
and a sense of pride in the follower's work. [34]
Companies seem to be transforming everywhere; growth and culture change are a
focus within their core strategies. It is not necessarily about cost structure, but about
finding new ways to grow. Models need to be produced to help leaders create the
future. Kent Thirty, CEO of DaVita, chose the name DaVita, Italian for “giving life,” and
settled on a list of core values that included service excellence, teamwork,
accountability, and fun. A transformational leader inspires and follows the employee's
self-interests, while a transactional leader manages and reinforces generally without
employee consideration. Aligning the organization into transformational leaders by
committing, being involved, and developing with the employees will lead to higher job
satisfaction and motivation.[35]
When transformational leadership was used in a nursing environment, researchers
found that it led to an increase in organizational commitment.[32] A separate study
examined that way that transformational leadership and transactional leadership
compare when implemented into an online class. [33] The results of this study indicate that
transformational leadership increases cognitive effort while transactional leadership
decreases it.

Examples[edit]
Nelson Mandela[edit]
Nelson Mandela used transformational leadership principles while working to abolish
apartheid and enforce change in South Africa. In 1995, he visited Betsie Verwoerd, the
widow of the architect of apartheid Hendrik Verwoerd, at her home in Orania. Orania
was an Afrikaner homeland and a striking anachronistic symbol of racial separation, and
Mandela's recurring emphasis on forgiveness contributed toward the healing the
prejudices of South Africa and as vast influence as a leader. In 2000, he was quoted as
saying, "For all people who have found themselves in the position of being in jail and
trying to transform society, forgiveness is natural because you have no time to be
retaliative."[36] This illustrates a common approach in the narratives of transformational
leadership, of describing a collective or corporate effort in individualised terms, and
pointing to the responsibility or opportunity for individuals to commit to making the effort
a success. Such an approach is seen in community organising.
He also set an example for others to follow in terms of sacrifice and philanthropy.
Schoemaker describes one such instance:
"One such leader received a call from Mandela's office requesting that he accompany
the President to the Eastern Cape. This leader was less than enthusiastic and pleaded
that he had an appointment around mid-day clashing with Mandela's request. But there
was no denying Mandela, so the leader agreed to go—but first consulted with his
financial director to set a reasonable limit on the size of the anticipated donation
request. They settled on 500,000 Rand, or about $50,000 in those days...upon landing,
about 80,000 black school children—all adorned in crisp white shirts—simultaneously
bowed to acknowledge the great man's arrival. As they were climbing down from the
helicopter, Mandela planted his hand firmly in his guest's back and said, 'Now, I hope
you are not going to disappoint me?' The business leader decided in that instance to
double the donation...how could he tell a man who sacrificed as much as Mandela that
he couldn't afford to be more generous?"

Future[edit]
The evolution of transformational leadership in the digital age is tied to the development
of organizational leadership in an academic setting. [37] As organizations move from
position-based responsibilities to task-based responsibilities, transformational
leadership is redefined to continue to develop individual commitment to organizational
goals by aligning these goals with the interests of their leadership community. The
academic community is a front-runner in this sense of redefining transformational
leadership to suit these changes in job definition.
The future of transformational leadership is also related to political globalization and a
more homogenous spectrum of economic systems under which organizations find
themselves operating. Cultural and geographical dimensions of transformational
leadership become blurred as globalization renders ethnically specific collectivist and
individualistic effects of organizational behavior obsolete in a more diversified
workplace.
The concept of transformational leadership further needs clarification, especially when a
leader is declared as a transformational or transactional leader. While discussing
Jinnah's leadership style, Yousaf (2015) argued that it is not the number of followers,
but the nature of the change that indicates whether a leader is transformational or
transactional.[38]