Transformational Leadership Theories

Background and History

For much of the 20th century, leadership scholars studied exchange-based, or transactional, leadership behavior, which involves reinforcing followers' behaviors and providing direction and support. In 1978, James Burns introduced the notion of transforming leadership. In the mid-1980s, partly inspired by Bernard Bass, researchers began to shift their attention to leadership models that emphasize visionary messages, inspirational appeals, ideological and moral values, intellectual stimulation, and individualized consideration. Burns initially posited that transactional and transformational leadership represent opposite ends of a continuum and differ in terms of what leaders and followers offer one another.

Transactional leadership focuses on the proper exchange of resources between a leader and his or her followers. Transformational leadership, in contrast, emphasizes meaning and purpose to develop and fulfill deeper existential needs that go beyond a simple relationship of quid pro quo. Although Burns suggested that leaders engage in either transactional or transformational leadership, Bass posited that effective leaders engage in both types of leadership behavior.

Transformational leadership augments, or supplements, the effect of transactional leadership. Stated differently, transactional leadership can be effective, but transformational leadership will improve leadership effectiveness, achieving performance beyond expectations. Transformational leaders establish goals and objectives with the developmental objective of changing followers into individual leaders or into a collective leadership group, such as self-directed teams.

The focus on follower development distinguishes transformational leadership from transactional leadership. Transforming followers into leaders not only empowers associates but also enhances their capability to deal effectively with ambiguity, develops their competence to handle more intellectually stimulating tasks, and gives them the opportunity to assume some of the leader's responsibilities. Although transactional leadership may yield short-term extrinsic benefits, transformational leadership produces longerterm intrinsic rewards. In other words, transformational leadership significantly adds to transactional leadership effectiveness, thus building higher individual, group, and organizational potential. Subsequent empirical research supported these hypotheses, suggesting that more effective leaders engage in exchange-related, as well as inspirational, motivational, and developmental, behaviors.

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