Transformational Leadership Theory [Easy & Quick Explanation]

Transformational leadership is a relatively new approach to leadership that focuses on how leaders can create valuable and positive change in their followers. James MacGregor Burns first introduced the concepts of transformational leadership when studying political leaders, but this term is now used when studying organizations as well. Burns described two leadership styles: transactional and transformational.

• Transactional Leaders: Transactional leaders focus on gaining compliance by giving and withholding rewards and benefits. 
• Transformational Leaders: Transformational leaders focus on “transforming” others to support each other and the organization as a whole. 

Followers of a transformational leader respond by feeling trust, admiration, loyalty, and respect for the leader and are more willing to work harder than originally expected. 

Background of Transformational Leadership Theory

The term was first coined by James V. Downton in 1973 and later used by James Burns in 1978.

In 1990, Bernard Bass added to the idea and developed Bass’s Transformational Leadership Theory. This theory gave ways to measure and check the success of a leadership style and how leaders could express their ideas to inspire other team members. He believed measuring the impact of the leadership style would inspire a great number of people. 

When followers are led with loyalty, respect, trust, and admiration, they have an environment where they will be willing to put in more effort than before. Bass’s leadership model is versatile and can easily be applied in all types of industries and workplaces.

He explained the psychological mechanisms that underlie transformational and transactional leadership. Bass’ work established that transformational leaders demonstrate four factors: individual consideration, intellectual stimulation, inspirational motivation (charismatic leadership), and idealized influence.

• Idealized and Charismatic. They are role models for others. Their personalities are based on empathy, listening, and concerns, and are highly likable to others.
• Inspirational Motivation. They have very positive attitudes and are quite optimistic about the achievement of goals.
• Intellectually Stimulating. These leaders deeply encourage critical thinking and developing problem-solving skills among team members.
• Considerate. Lastly, they are empathetic and concerned about others.

Further Explanation – Transformational Leadership

Transformational leadership theory is supported by nearly 30 years of research correlating transformational leadership to positive performance outcomes, including individual, group, and organizational level variables. It also solidified the need to study followers in leadership research. 

Transformational leadership was the first developed and validated theory to emphasize morals and values in leadership. Here are the key points of the theory:

• Transformational leaders create a vision and inspire their team to work towards achieving the goals with innovative ideas.
• They lead by example as role models and display the core values of integrity, confidence, and commitment.
• They invest time, effort, and resources in developing their team members and helping them grow.
• Transformational leaders invest the time to understand each employee and their strengths and weaknesses.
• They encourage out-of-the-box thinking and problem-solving skills and develop essential life skills among the team members.

Leadership is ideal for all kinds of workplaces and situations. In fact, you won’t be surprised to see it in different settings, such as offices, schools, hospitals, etc.

Bass and Riggio further explained transformational leadership as those leaders who stimulate and inspire followers. While developing their leadership capacity along the way, their style helps them and the team members achieve amazing outcomes. 

They empower their team members and unite the goals of the individuals, organization, and team. The philosophy makes everyone a leader by giving them the power to make decisions where needed.

Wrap Up

Research on the theory is primarily based on the multifactor leadership questionnaire, which has produced inconsistent results. Research has also focused heavily on senior-level leaders. 

Transformational leadership also has the potential to be used negatively by leaders “faking it.” Regardless, transformational leadership theory is a valuable and widely used approach to studying and teaching leadership.

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More Articles in This Series:

• Intro to Leadership Theory
• Why Theory
• A Word on Theory
• Trait Theory
• Skills Theory
• Style Theory
• Contingency Theory
• Situational Leadership Theory
• Path-Goal Theory
• Leader-Member Exchange Theory
• Transformational Leadership Theory
• Servant Leadership Theory
• Strengths-Based Leadership Theory