Transformational Leadership Theory - Explained
What is Transformational Leadership Theory?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is Transformational Leadership?
Transformational leadership theory posits that transformational leaders lead subordinates by aligning subordinate goals with the leaders goals. Per this approach, subordinates adopt the interests of the company as their own interest. This is in stark contrast to transactional leaders, who focus on motivating behaviors through rewards.
Back To: LEADERSHIP
Back to: BUSINESS MANAGEMENT
Techniques of Transformational Leaders
Transformational leaders generally have four techniques or abilities that they use to influence employees and create a commitment to the company goals.
- Charisma - This is behavior used to inspire confidence, commitment, and admiration.
- Inspiration - The leader is able to motivate others by developing a vision that is inspiring to others.
- Intellectual Stimulation - The leader encourages employees to be mindful and think creatively - which often goes against organizational norms.
- Individualized Consideration - The leader has specific concern and empathy for the well-being of the subordinate.
What is Transactional Leadership?
While transformational leaders rely on their charisma, persuasiveness, and personal appeal to change and inspire their companies, transactional leaders use three other methods.
- Contingent Rewards - Employees are rewarded based upon performance.
- Active Management by Exception - Employees are left to do their jobs with interference unless the leader predicts a potential problem.
- Passive Management by Exception - Employees are left alone until something happens that requires leader intervention.
Transformational leaders are thought to increase the intrinsic motivation of subordinates, allow for more effective employee relationships, augment creativity, foster organizational commitment, and improve overall performance.
The primary reason that transformational leadership is effective concerns the level of trust in the leader among subordinates. That is, subordinates have confidence in the judgment, values, and fairness of the leaders decisions.
Thought leaders often demonstrate transactional and transformational styles at times.