Leadership Theories 
Transformational leadership is a more humane leadership theory, as 
compared to the militaristic transactional theory 
It believes in inspiring employees to do great work through example 
and the force of a leader's personality 
People rise higher through positive motivation, than negative 
motivation 
It is a leadership theory which appeals to the higher need of an 
individual in the Maslow's hierarchy of needs, which is self-actualization!
INTRODUCTION 
O As an idea, transformational leadership was first 
mentioned in 1973,in the sociological study conducted by 
the author “Downton, J.V”. 
O After that ,“James McGregor” used the term 
transformational leadership in his book “Leadership” 
(1978). 
O In 1985, “Banard M. Bass” presented a formal 
transformational leadership theory which ,in addition to 
other things also includes the models and factors of 
behavior. 
O One year later (1986)“Noel M. Tichy” and “Marry Anne 
Devanna” published a book under the title “The 
Transformational Leadership”.
What is 
TRANSFORMATIONAL LEADERSHIP?
Definition 
TRANSFORMATIONAL LEADERSHIP 
is a leadership style where one or more 
persons engage with others in such a 
way that leaders and followers raise 
one another to higher levels of 
motivation and morality
Definition 
TRANSFORMATIONAL LEADERS 
stimulate and inspire their followers to achieve 
extraordinary outcomes and, in the process, 
develop their followers’ own leadership capacity. 
These leaders help followers to grow and develop 
by responding to followers’ individual needs by 
empowering them and aligning the objectives and 
goals of the individual followers, the leader, the 
group, and the larger organization 
(Bass & Riggio, 2006).
A TRANSFORMATIONAL 
LEADER’S GOAL 
To inspire followers to 
share the leaders’ values 
and connect with the 
leader’s vision
Assumptions 
 The prime assumption is, that people will 
willingly follow a leader who inspires 
them 
 The vision and passion of one man can 
transform his followers and together they 
can achieve great things 
 Energy and enthusiasm are the tonics 
that get things done
Transformational Leadership 
- A Process - 
 Process that changes and transforms 
 Process that is concerned with the Emotions, 
Values, Standards, Ethics, and Long Term 
Goals 
 A transformational leader motivates followers 
to accomplish more than what is usually 
expected 
 The sum becomes more powerful than its 
parts
4 I's of Transformational Leadership 
Idealized Influence 
Leader serves as an ideal role model for followers and is admired for 
this 
Inspirational Motivation 
Transformational leaders have the ability to inspire and motivate 
followers 
Individualized Consideration 
Transformational leaders demonstrate genuine concern for the needs 
and feelings of followers which brings out the best efforts from each 
individual 
Intellectual Stimulation 
Transformational leaders challenges followers to be innovative and 
creative
FOUR COMPONENTS OF 
TRANSFORMATIONAL LEADERSHIP 
OIdealized influence 
OInspirational motivation 
OIntellectual stimulation 
OIndividualized consideration
Components of Transformational Leadership 
Transitional Leadership 
Inception of creative ideas 
Clear understanding of current scenario 
Pre-defined objectives and a clear road 
map to achieve them 
No self-serving motives 
Focus approach on identified 
objectives 
Transactional Leadership 
Planning and following process 
oriented methodology 
Building team and support 
Identifying expertise in various fields 
of work 
challenges 
Transformational 
Leadership 
Transparent Leadership 
Congruence between leadership 
and goal 
Integrity in finances and in 
information 
Transcendent Leadership 
Identifying future leader and team 
Relinquishing control 
Inspiring and motivating potential to 
lead
Idealized influence 
OIdeal role model 
OHigh moral and ethical standards 
OShow respect, attention, and 
consideration towards followers 
OConsider differences between followers 
levels of abilities, ways of learning, and 
approaches to work 
OEncourages the followers 
OUnderstanding personal feelings and 
needs
Inspirational motivation 
OAbility to inspire and motivate 
followers 
OProvides followers with challenges 
and meaning for engaging in shared 
goals and undertakings 
OShow followers how their work 
applies to real world 
OBehave in an enthusiastic, 
passionate and energetic way
Individualized consideration 
OCoaching, mentoring, and growth 
opportunities 
OSelf-actualization, self-fulfillment, and 
self-worth 
OAttend to each follower's needs 
OListen to the follower's concerns and 
needs.
Intellectual stimulation 
ORe-examine their assumptions about 
their work and re-think how it can be 
performed 
OInnovative and creative 
OHelps followers see the big picture and 
how they connect to the leader, 
organization, each other, and the goal. 
OChallenge followers to come up with 
new ideas 
OAsk questions that make the followers 
think
Transformational Leadership 
Behaviors
Steps for Transformational Leadership 
Developin 
g Vision 
• Starts with creating a vision 
• Vision that is exciting and attract potential followers 
Selling the 
Vision 
• Constantly sell the vision and build a strong network of high 
potential 
Road Map 
• Transformation leaders have a clear vision 
• Have a fair idea about the direction to move and want followers to move in 
the same direction 
• Ready to accept failures 
Leading 
the charge 
• Transformation leaders remain in the fore-front during the action 
• Always visible and stand up to be counted 
• Bolster and infect the followers with commitment and enthusiasm
Competencies of a Transformational Leader 
Continuous Personal 
Development 
• Wide Range of 
Leadership Styles 
• Personal Values, 
Vision, & Goals 
• Risk-taking & Courage 
• Resilient & Resolute 
Managing Information & 
Knowledge 
• Inquisitive Mind & Critical 
Thinking To Apply Research 
Findings 
• Measures Performance 
• Breakthrough 
Technologies 
& Networking 
Transformation 
Leadership 
Competency 
Mental Health Future 
• Recovery-oriented 
• Science ↔ Service 
• Evidence-based Practices 
• Elimination of Disparities 
• Interagency Perspectives 
• Consumer & Family-Relevant 
Outcomes 
Trans. Management 
• Org. & System Shifts & 
Learning 
• Congregate Vision & 
Innovation 
• Strategic Alliances 
• Mgmt. of Collaborative 
Relationships 
Business Acumen 
• Financing Strategies 
• Organizational Dynamics 
• Human Resource Development 
• Internal/External Radar 
• Marketing & Branding 
Process Toolkit 
• Negotiation Skills 
• Dispute & Conflict 
Resolution 
• Group Facilitation 
• Concept Mapping, 
Future Casting, 
Lateral Thinking
James Macn Gregor Burns 
(1978) 
“Leaders and followers make each 
other to advance to a higher level of 
moral and motivation." 
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 was influenced by 
Abraham Maslow’s Theory of Human Needs
BERNARD BASS 
(1985) 
He identified three ways in which leaders 
transform followers: 
• Increasing their awareness of task importance 
and value. 
• Getting them to focus first on team or 
organizational goals, rather than their own 
interests. 
• Activating their higher-order needs.
How Does Transformational 
Leadership Work? 
OTransformational leaders set out to empower 
followers and nurture them to change. 
OThey become strong role models for their followers. 
OThey create a vision. 
OThey act as change agents who initiate and 
implement new directions. 
OThey act as social architects.
Application of 
Transformational Leadership 
 Provides ideas as to what a leader 
should be in a transforming 
environment 
 Vision statements create discussion 
 Can be used in recruitment, 
selection and promotion, and 
training and development
Effect of Transformation Leadership 
on Organizational Structure 
Solution 
Clarification 
Groups under 
Transformation 
al Leadership 
Higher 
Performanc 
e 
Extra Effort 
Satisfaction 
Supportive 
Remarks 
Original 
Solutions
Effect of Transformation Leadership on 
Organizational Structure 
 Transformational leadership and organizational culture hold 
the key to understanding organizational effectiveness 
 Decisions taken by a manager are very important as they 
affect a large number of people 
 Thus the leadership skills of the manager have to be very 
pronounced 
 An organic, non-formalized organization with a larger span 
of control are conducive for transformational leadership to 
appear
Self Sacrifice and 
Transformational Leadership 
Leader 
Effectivenes 
s 
Self 
Sacrifice 
Public Good 
Cooperation 
Extra Effort 
Reciprocity 
Belongingne 
ss
Self Sacrifice and 
Transformational Leadership 
 Display of self sacrifice behaviors by leaders 
enhances transformational leadership 
 Transformational leaders have the ability to transform 
self-interests of followers into collective interests 
 They do so by enhancing salience of collective 
identity in the self-concept of followers 
 Followers of transformational leaders work towards 
advancing overall mission of the group rather than 
their own personal interests
Self Sacrifice and 
Transformational Leadership 
 Martin Luther King, Mahatma Gandhi, Mother Teresa 
demonstrated a form of transformational leadership 
that was based on values 
 Without morally uplifting the followers, leadership 
cannot be transforming 
 They motivate followers to go beyond their self-interests 
for the good of the group, organization, or 
society 
 Such actions mutually benefit both the organization/ 
society and the employees
Transformational Leadership in Schools 
• To transform the value system of its students 
• To enhance perception of oneness with others 
Objective of Management 
Education 
• Self-oriented values like a comfortable life and pleasure becoming 
more important 
• Others-oriented values like being helpful and polite becoming less 
important 
Value system of MBA 
students 
• The corporate world interested in managers whose relative ordering 
of values is just the reverse 
• An MBA program that reduces the relative importance given to 
values like being helpful and polite might find it difficult to market its 
graduates to business organizations 
Cause for concern 
The findings of this study provide some preliminary evidence on the 
changes in value systems that are caused by management 
education. Self-oriented values become more important and 
others-oriented values become less important
Benefits 
 Widely researched intuitive appeal 
 Focuses on the follower too 
 Emphasis on followers’ needs, values, and 
morals 
 Enthusiastic work atmosphere 
 Innovations 
 Higher output and efficiency 
 Develops future leaders 
 People will work for leader even if monetary 
compensation is less
Limitations 
X Lacks conceptual clarity 
X Validity of MLQ is questionable 
X Fixed trait or malleable state 
X Potentially elitist or antidemocratic 
X Totally depends on ability of leader 
X Leaders might lack the required 
characteristics
Strengths 
OWidely researched from many different 
perspectives. 
OIt has intuitive appeal as a concept. 
OIt treats leadership as a process between leaders 
and followers. 
OIt offers an expanded picture of leadership. Most 
other models are transactional. 
OIt has a strong emphasis on followers’ needs, 
values, and morals. 
OIt has substantial evidence of being effective.
Criticisms 
OLacks conceptual clarity. 
OThe measurement scale does not always 
distinguish clearly among factors. 
OIt is a trait theory rather than a behavioral 
theory. 
OTends to be elitist and antidemocratic. 
OHas a heroic leadership bias. 
OMay not work on all levels of the organization. 
OHas the potential to be abused.
Conclusion 
Lead and inspire people. 
Don't try to manage and 
manipulate people. 
Inventories can be managed 
but people must be lead. 
--- Ross Perot
CONCLUSION
TRANSFORMATIONAL LEADERSHIP

TRANSFORMATIONAL LEADERSHIP

  • 2.
    Leadership Theories Transformationalleadership is a more humane leadership theory, as compared to the militaristic transactional theory It believes in inspiring employees to do great work through example and the force of a leader's personality People rise higher through positive motivation, than negative motivation It is a leadership theory which appeals to the higher need of an individual in the Maslow's hierarchy of needs, which is self-actualization!
  • 3.
    INTRODUCTION O Asan idea, transformational leadership was first mentioned in 1973,in the sociological study conducted by the author “Downton, J.V”. O After that ,“James McGregor” used the term transformational leadership in his book “Leadership” (1978). O In 1985, “Banard M. Bass” presented a formal transformational leadership theory which ,in addition to other things also includes the models and factors of behavior. O One year later (1986)“Noel M. Tichy” and “Marry Anne Devanna” published a book under the title “The Transformational Leadership”.
  • 4.
  • 5.
    Definition TRANSFORMATIONAL LEADERSHIP is a leadership style where one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality
  • 6.
    Definition TRANSFORMATIONAL LEADERS stimulate and inspire their followers to achieve extraordinary outcomes and, in the process, develop their followers’ own leadership capacity. These leaders help followers to grow and develop by responding to followers’ individual needs by empowering them and aligning the objectives and goals of the individual followers, the leader, the group, and the larger organization (Bass & Riggio, 2006).
  • 7.
    A TRANSFORMATIONAL LEADER’SGOAL To inspire followers to share the leaders’ values and connect with the leader’s vision
  • 8.
    Assumptions  Theprime assumption is, that people will willingly follow a leader who inspires them  The vision and passion of one man can transform his followers and together they can achieve great things  Energy and enthusiasm are the tonics that get things done
  • 9.
    Transformational Leadership -A Process -  Process that changes and transforms  Process that is concerned with the Emotions, Values, Standards, Ethics, and Long Term Goals  A transformational leader motivates followers to accomplish more than what is usually expected  The sum becomes more powerful than its parts
  • 10.
    4 I's ofTransformational Leadership Idealized Influence Leader serves as an ideal role model for followers and is admired for this Inspirational Motivation Transformational leaders have the ability to inspire and motivate followers Individualized Consideration Transformational leaders demonstrate genuine concern for the needs and feelings of followers which brings out the best efforts from each individual Intellectual Stimulation Transformational leaders challenges followers to be innovative and creative
  • 11.
    FOUR COMPONENTS OF TRANSFORMATIONAL LEADERSHIP OIdealized influence OInspirational motivation OIntellectual stimulation OIndividualized consideration
  • 12.
    Components of TransformationalLeadership Transitional Leadership Inception of creative ideas Clear understanding of current scenario Pre-defined objectives and a clear road map to achieve them No self-serving motives Focus approach on identified objectives Transactional Leadership Planning and following process oriented methodology Building team and support Identifying expertise in various fields of work challenges Transformational Leadership Transparent Leadership Congruence between leadership and goal Integrity in finances and in information Transcendent Leadership Identifying future leader and team Relinquishing control Inspiring and motivating potential to lead
  • 13.
    Idealized influence OIdealrole model OHigh moral and ethical standards OShow respect, attention, and consideration towards followers OConsider differences between followers levels of abilities, ways of learning, and approaches to work OEncourages the followers OUnderstanding personal feelings and needs
  • 14.
    Inspirational motivation OAbilityto inspire and motivate followers OProvides followers with challenges and meaning for engaging in shared goals and undertakings OShow followers how their work applies to real world OBehave in an enthusiastic, passionate and energetic way
  • 15.
    Individualized consideration OCoaching,mentoring, and growth opportunities OSelf-actualization, self-fulfillment, and self-worth OAttend to each follower's needs OListen to the follower's concerns and needs.
  • 16.
    Intellectual stimulation ORe-examinetheir assumptions about their work and re-think how it can be performed OInnovative and creative OHelps followers see the big picture and how they connect to the leader, organization, each other, and the goal. OChallenge followers to come up with new ideas OAsk questions that make the followers think
  • 17.
  • 18.
    Steps for TransformationalLeadership Developin g Vision • Starts with creating a vision • Vision that is exciting and attract potential followers Selling the Vision • Constantly sell the vision and build a strong network of high potential Road Map • Transformation leaders have a clear vision • Have a fair idea about the direction to move and want followers to move in the same direction • Ready to accept failures Leading the charge • Transformation leaders remain in the fore-front during the action • Always visible and stand up to be counted • Bolster and infect the followers with commitment and enthusiasm
  • 19.
    Competencies of aTransformational Leader Continuous Personal Development • Wide Range of Leadership Styles • Personal Values, Vision, & Goals • Risk-taking & Courage • Resilient & Resolute Managing Information & Knowledge • Inquisitive Mind & Critical Thinking To Apply Research Findings • Measures Performance • Breakthrough Technologies & Networking Transformation Leadership Competency Mental Health Future • Recovery-oriented • Science ↔ Service • Evidence-based Practices • Elimination of Disparities • Interagency Perspectives • Consumer & Family-Relevant Outcomes Trans. Management • Org. & System Shifts & Learning • Congregate Vision & Innovation • Strategic Alliances • Mgmt. of Collaborative Relationships Business Acumen • Financing Strategies • Organizational Dynamics • Human Resource Development • Internal/External Radar • Marketing & Branding Process Toolkit • Negotiation Skills • Dispute & Conflict Resolution • Group Facilitation • Concept Mapping, Future Casting, Lateral Thinking
  • 20.
    James Macn GregorBurns (1978) “Leaders and followers make each other to advance to a higher level of moral and motivation." 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.
  • 21.
    Burns was influencedby Abraham Maslow’s Theory of Human Needs
  • 22.
    BERNARD BASS (1985) He identified three ways in which leaders transform followers: • Increasing their awareness of task importance and value. • Getting them to focus first on team or organizational goals, rather than their own interests. • Activating their higher-order needs.
  • 23.
    How Does Transformational Leadership Work? OTransformational leaders set out to empower followers and nurture them to change. OThey become strong role models for their followers. OThey create a vision. OThey act as change agents who initiate and implement new directions. OThey act as social architects.
  • 24.
    Application of TransformationalLeadership  Provides ideas as to what a leader should be in a transforming environment  Vision statements create discussion  Can be used in recruitment, selection and promotion, and training and development
  • 25.
    Effect of TransformationLeadership on Organizational Structure Solution Clarification Groups under Transformation al Leadership Higher Performanc e Extra Effort Satisfaction Supportive Remarks Original Solutions
  • 26.
    Effect of TransformationLeadership on Organizational Structure  Transformational leadership and organizational culture hold the key to understanding organizational effectiveness  Decisions taken by a manager are very important as they affect a large number of people  Thus the leadership skills of the manager have to be very pronounced  An organic, non-formalized organization with a larger span of control are conducive for transformational leadership to appear
  • 27.
    Self Sacrifice and Transformational Leadership Leader Effectivenes s Self Sacrifice Public Good Cooperation Extra Effort Reciprocity Belongingne ss
  • 28.
    Self Sacrifice and Transformational Leadership  Display of self sacrifice behaviors by leaders enhances transformational leadership  Transformational leaders have the ability to transform self-interests of followers into collective interests  They do so by enhancing salience of collective identity in the self-concept of followers  Followers of transformational leaders work towards advancing overall mission of the group rather than their own personal interests
  • 29.
    Self Sacrifice and Transformational Leadership  Martin Luther King, Mahatma Gandhi, Mother Teresa demonstrated a form of transformational leadership that was based on values  Without morally uplifting the followers, leadership cannot be transforming  They motivate followers to go beyond their self-interests for the good of the group, organization, or society  Such actions mutually benefit both the organization/ society and the employees
  • 30.
    Transformational Leadership inSchools • To transform the value system of its students • To enhance perception of oneness with others Objective of Management Education • Self-oriented values like a comfortable life and pleasure becoming more important • Others-oriented values like being helpful and polite becoming less important Value system of MBA students • The corporate world interested in managers whose relative ordering of values is just the reverse • An MBA program that reduces the relative importance given to values like being helpful and polite might find it difficult to market its graduates to business organizations Cause for concern The findings of this study provide some preliminary evidence on the changes in value systems that are caused by management education. Self-oriented values become more important and others-oriented values become less important
  • 31.
    Benefits  Widelyresearched intuitive appeal  Focuses on the follower too  Emphasis on followers’ needs, values, and morals  Enthusiastic work atmosphere  Innovations  Higher output and efficiency  Develops future leaders  People will work for leader even if monetary compensation is less
  • 32.
    Limitations X Lacksconceptual clarity X Validity of MLQ is questionable X Fixed trait or malleable state X Potentially elitist or antidemocratic X Totally depends on ability of leader X Leaders might lack the required characteristics
  • 33.
    Strengths OWidely researchedfrom many different perspectives. OIt has intuitive appeal as a concept. OIt treats leadership as a process between leaders and followers. OIt offers an expanded picture of leadership. Most other models are transactional. OIt has a strong emphasis on followers’ needs, values, and morals. OIt has substantial evidence of being effective.
  • 34.
    Criticisms OLacks conceptualclarity. OThe measurement scale does not always distinguish clearly among factors. OIt is a trait theory rather than a behavioral theory. OTends to be elitist and antidemocratic. OHas a heroic leadership bias. OMay not work on all levels of the organization. OHas the potential to be abused.
  • 35.
    Conclusion Lead andinspire people. Don't try to manage and manipulate people. Inventories can be managed but people must be lead. --- Ross Perot
  • 36.

Editor's Notes

  • #6 Transformational leadership is a leadership style where one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality