The Influence of the Transformational Leader

Bruce A. Tucker, Acworth, Georgia

Robert F. Russell, Emory & Henry College, Emory, VA

This articlefocuses on how transformational and forming a base of credibility. Conversely,

leaders influence organizations. transactional leadership is based on bureaucracy
Transformational leaders provide change and and organizational standards.
movement in their organizations. Such leaders The difference between transformational
seek to alter the existing structure and influence and transactional leadership styles can be
people to buy into a new vision and new defined by denoting the transformational style as
possibilities. Excellent transformational leaders a leader of innovation and the transactional style
use authority and power to inspire and motivate as a manager of planning and policy (King,
people to trust and follow their example. 1994). Another view is that the transformational
However, there are also potential dangers style creates new pathways in an organization,
resulting from the powerful influence of while the transactional style depends on existing
transformational leaders. Leaders and structures (Mink, 1992). Whereas the
organizations must maintain accountability to transactional style uses the power and authority
insure that leaders stay within certain that already exists in the organization, the
boundaries. Overall, transformational leaders transformational leader motivates people to
provide new direction, new inspiration, and new work for a new and greater good and to create
behaviors for their organizations. change (Davidhizer & Shearer, 1997). Schuster
(1994) stated that transactional leadership is at
Transformational Leadership is a popular best a networking of power; however,
theory in the leadership arena. Various transformational leadership appeals to higher
researchers and writers have established the motivation and adds to the quality of life in the
validity of the concept. It is an appealing theory people and the organization. Transformational
that yields insight into leadership differences leadership provides energy-producing
and provides a model for leadership characteristics that generate new changes for the
development. This article focuses on a single organization, which transactional management
dimension of transformational leadership theory: cannot produce.
how transformational leaders influence Ackoff (1999) provided a helpful summary
organizations. of the fmdings of three areas often associated
James MacGregor Bums’ seminal study with leaders. First, he defined administration as
(1978) provided initial definitions of directing others in carrying out the will of a third
transformational leadership by drawing a party using means selected by that party.
distinction between transformational and Second, he stipulated that management consists
transactional leadership styles. Other of directing others in the pursuit of an end by
researchers followed Bums’ lead and provided use of means selected by the manager himself.
more in-depth descriptions. According to And third, Ackoff specified that leadership
Tracey and Hinkin (1998), transformational consists of guiding, encouraging, and facilitating
leadership is a process that motivates people by others in the pursuit of an end by the use of
appealing to higher ideals and moral values, means that the followers have either selected or

defining and articulating a vision of the future, approved. Given these definitions, Ackoff then
104
defined a transformational leader as one who
formulates an inspiring vision, facilitates the
vision, encourages short-term sacrifices, and
makes pursuing the vision a fulfilling venture.
Stephen Covey (1991) described
transformational leadership as the ’parent’ of
transactional leadership. Transformational
leadership provides the frame of reference
within which transactions of power within
organizations take place. Bass and Avolio
(1993) asserted that organizations should move
in the direction of more transformational
qualities in their cultures while continuing
effective transactional qualities. Therefore,
transactional managerial tasks must follow the
new directions and adjust to the changes.
Themes in Transformational Leadership
Tracey and Hinkin (1998), who correlated
their findings with the work of Bass and Avolio
(1990, 1994a), observed that characteristics of
transformational leadership follow clear themes.
The themes further illustrate the distinction from
transactional managers. The first characteristic
of transformational leaders is questioning
assumptions and promoting non-traditional
thinking. Tracey and Hinkin compared this
theme to the intellectual stimulation focus of the
Bass and Avolio research. The areas of problem
solving and decision-making take on a different
perspective in transformational leadership than
in managerial tasks.
The second theme that Tracey and Hinkin
(1998) correlated with the work of Bass and
Avolio (1990, 1994a) is a focus on follower
development. This theme blends the needs of
the individual and the importance of providing a
role model for followers. The leader emphasizes
self-development and offers positive feedback to
improve a worker’s performance. The
transformational leader wants followers to
become leaders themselves. Bass and Avolio
(1997) stated, &dquo;a transformational leader differs
from a transactional one by not merely
recognizing associates’ needs, but by attempting
to develop those needs from lower to higher
levels of maturity. Transformational leaders
engage the full person so that associates are
developed into leaders&dquo; (p. 17).
Characteristics of Transformational
Leaders
Leader descriptions often focus on
behaviors. As Finkelstein and Hambrick (1996)
stated: &dquo;It is appropriate that our conception of
executive activity ... extends beyond ’strategic
choice’ to include ’executive behaviors.’ Day in
and day out, seemingly minute actions by
executives can have a major effect on
organizational functioning and performance&dquo; (p.
71). However, external behavior reflects
internal influences as well as relationship goals.
These behaviors function within internal,
external, and relational contexts.
The internal context of the individual’s
behavior is the foundation for transformational
leadership (Herrington, Bonem, & Furr, 2000).
Leaders must experience personal
transformation within themselves before they
can truly help to transform other people.
Personal renewal and reflection are important
ways that leaders change their inner selves
(Herrington, Bonem, & Furr). The leader’s own
development provides internal changes that
produce an emotional link or bond between the
leader and followers (Popper & Zakkai, 1994).
Dixon (1998) discovered inner
characteristics of transformational leaders that
produce effective behaviors. He indicated that
self-confidence (’I can make a difference’),
inner integrity, honesty, and personal values
influence the leader’s behavior. A key
ingredient in effective performance is for the
leader to connect his or her life experiences with
transformational behaviors (Avolio, 1994). This
inner connection and resulting behavior lead to
external behaviors that transform the
organization. For example, a sense of personal
involvement produces a vision for the group
(Schuster, 1994). Vision begins when a leader
wants his or her own life to make a difference.
The leader’s external and visible behavior
has an impact on the organization (Avolio, 1994;
Finkelstein & Hambrick, 1996). There is a
’cascading effect’ from higher-level leaders to
lower-level leaders due to modeling effective
behaviors, hiring others with similar behaviors,
and behaviors being reinforced by the
organization (Bass, Waldman, Avolio, & Bebb,
1987). The leader’s behavior motivates and
creates an impression that the leader has the

competence and vision to achieve success
(Keller, 1992). Changes in behavior are
necessary to change culture (Trahant, Burke, &
Koonce, 1997). Therefore, leader’s relational
a characteristics that lift their sights above the
behavior affects the organization.
The relational context introduces two
primary areas of the transformational leader’s
influence. According to Schuster (1994), they
are: 1) deep thinking (the head) and 2) empathy
(the heart). The transformational leader affects
the followers’ thinking by appealing to their
hearts. He or she creates a relational context
that motivates the followers to act on their own
behalf and for the needs of others. The leader
relates to their developmental needs (Popper &
Zakkai, 1994), their deeply held values (Mink,
1992), and their needs for respect and caring
(Dixon, 1998).
The transformational leader’s internal,
external, and relational context of behavior
connects with the followers’ own sense of
internal motivation. The leader’s behaviors
provide a model for internally motivated people.
Such individuals sense the leader’s
encouragement as he or she listens to them,
respects them, assists in their development, and
shares power with them (Davidhizer & Shearer,
1997). Transformational leaders elevate the
interests of people (Bass, 1990) and serve as the
missing ingredient in moving toward more
participative systems (Collins, Ross, & Ross,
1989). Such leaders attract internally motivated
people, inspire them with a mission, and initiate
new ways of thinking (Keller, 1995). The result
is new influence on the culture of the
organization.
An Emphasis upon Organizational
Change
According to Bums (1978),
transformational leaders provide change and
movement in an organization. They do so by
providing a vision for change (Bennis & Nanus,
1997). In order to be effective, transformational
leaders must have a clear sense of goals in order
to guide their institutions in new directions
(Bums). They need the capacity to stand back
from everyday activities and see the processes of
change over the long term.
Transformational leaders emphasize new
possibilities and promote a compelling vision of
105
the future. A strong sense of purpose guides
their vision. Transforming organizations led by
transforming leaders appeal to human
routine, everyday elements of a mechanistic.
power-oriented system. Transformational
leaders manifest passionate inspiration (Hersey
& Blanchard, 1996) and visibly model
appropriate behaviors (Kouzes & Posner. 1987).
The goal is change that raises the organizations
to new and exciting possibilities. To reach the
goal, organizations must receive new energy and
vision from their leaders. The process of
transformational leadership grows out of this
sense of vision and energy.
The Process of Change
Transformational leaders focus on change,
progress, and development. Therefore,
transformational leaders desire to influence the
way people think and introduce new processes
into the organization. They may do so by
addressing perceptions of reality, influencing
psychological understanding of the existing
structures, and facilitating comprehension of the
need for growth. These methods reach into the
areas about which humans truly care. Thereby,
transformational leaders can define the meaning
that motivates actions.
Transformational leaders emphasize the
need for understanding change as a process. A
process mindset is the basis for effective
transformation (Heckscher, Eisenstat, & Rice,
1994). The process mentality involves defining
clear concepts (Keller, 1995). It also requires a
future orientation toward problem solving
(Smith, 1990). One of the key factors in the
change process is for each person to become and
remain a continual learner (Mink, 1992).
Two events can become catalysts for
change: 1) a fresh look at trends and 2)
feedback from front-line people ( Herrington,
Bonem, & Furr, 2000). A constant flow of
information and continuous interaction with
people ignite the need for changes. Leaders
must not only question the status quo of their
organizations, but they must also engage in a
process that yields transformational change
(Dess, Picken, & Lyon, 1998). The purpose is
to define human meaning and the process
involves influencing human thinking.
106
Transformational leaders intend to
influence unique human qualities. Covey (1991)
noted that transformational leaders are
preoccupied with purposes, values, morals, and
ethics. They align internal structures to
reinforce values and goals. They seek to release
human potential and lead into new directions.
Transformational leaders have an impact on the
psychology and behavior of followers in order to
shape their values (Brown, 1994).
The Influence of Transformational
Leaders on the Organization’s Culture
Leaders must recognize the importance of
considering and influencing the culture in their
organizations (Bass & Avolio, 1993, 1994b;
Inkson & Moss, 1993). Culture can limit a
leader so renewal efforts that actually change the
culture are constantly needed. In fact, one
primary factor that distinguishes
transformational leaders is that they work to
change the organization, whereas transactional
managers work within the existing structure
(Bass & Avolio, 1997). Consequently, cultural
change is an important part of the
transformational leadership process. If the
culture itself becomes transformational, then it
will produce an environment for more effective
individual growth and organizational
performance (Bass & Avolio, 1993).
The culture in transformational
organizations inculcates a sense of purpose,
long-term commitments, and mutual interests.
Such cultures are based on shared
interdependence, as well as leaders and
followers who can transcend their self- interests
for the good of the team and the organization.
Transformational leaders influence three areas of
the organizational culture: 1) the internal
mindset of the people in the organization, 2) the
culture among the people of the organization,
and 3) the culture beyond the people of the
organization.
influencing the Internal Mindset of the
People in the Organization
Transformational organizations operate
from the inside out. Mink (1992) admonished
leaders to ’get inside’ the people they are trying
to help and develop. Transformational energy
flows as leaders emphasize free will and drive
out the inner fears of followers. In so doing, the
people come to know and trust who they are and
where they can go.
Transformational leaders strongly engage
followers’ self-concepts (Shamir, House, &
Arthur, 1993; Bass & Avolio, 1997).
Consequently, people come to know who they
are and how they connect to the mission of the
organization. Through this process,
transformational leaders enable followers to
develop themselves and come to know what they
can do within the entity. This in turn promotes
an enhanced commitment to their jobs, their
coworkers, and the whole organization (Avolio,
Waldman, & Yammarino, 1991). The leaders
touch the internal mindset of the people and
enable them to make new steps in their
commitment levels and their behavior within the
organization.
The transformational paradigm optimizes
an energy exchange between the leaders and
followers for the benefit of the followers and the
mission of the organization (Mink, 1992). The
energy from within the individual follower
meets the energy from other followers to
produce change at a higher level (Bass &
Avolio, 1997). The followers respond and new
behaviors develop (Seltzer & Bass, 1990). As a
result, the culture among the followers takes on
a new dynamic.
Influencing the Culture among the
People in the Organization
Transformational leaders affect the culture
among the people through teams, innovation,
and productivity. Many years ago, Bass (1985)
observed a correlation between transformational
leaders and team effectiveness. The leaders
served as a role model for the team members and
increased cooperation among the members.
Therefore, organizations benefit from having
transformational leaders at all functional levels
(King, 1994; Waldman, 1987). However, the
spread of transformational elements to all levels
of an organization can lead to conflicts with the
transactional bureaucracy (Bass & Avolio,
1993). Nevertheless, transformational energy
leads people to greater effectiveness as they
reach common goals for the organization and for
themselves.

Transformational innovation brings higher
productivity (Bass & Avolio, 1997).
Transformational leaders influence the culture
among people and can take teams to higher
levels of performance (Keller, 1995).
Transformational leaders can even take highly
technological systems to greater levels of change
(Brown, 1994).
Productivity and innovation improve when
transformational leaders emphasize culture and
values in an organization (Niehoff, Enz, &
Grover, 1990). For example, valuing, listening
to, and serving people affects growth and
outcomes (Trahant, Burke, & Koonce, 1997). In
such settings, the people of the organization
have a central focus in its culture. This is why
Keller (1995) asserted that leaders must be
chosen with leader skills and not just technical
skills. In addition to being technically
competent, the leaders must have people skills
that affect the organizational culture.
Influencing the Culture of the People
beyond the Organization
Transformational leaders not only influence
the culture among their followers, but their
influence also extends beyond the organization
to the outside culture. Transformational leaders
see beyond their organizations. Flanagan and
Thompson (1993) suggested that
transformational leaders must develop
situational sensitivity by which they understand
situations in terms of organizations and people.
This sensitivity progresses from the inner self,
through the organization, and then to the
external environment. Consequently, leaders
help organizations to establish flexible and new
ways of seeing the world (Mink, 1992).
As the world beyond the organization
changes, transformational leaders help the
existing organization adapt to the developing
environment (Smith, 1990). Perhaps too much
attention is given to the role of the leader inside
the organization. There is a clear need for
genuine leaders to have an effect beyond the
confmes of their organizations.
Transformational leaders have the potential to
influence the world in both positive and negative
ways (Morgan, 1997). That makes it crucial for
them to have a clear picture of what
transformation is needed (Covey, 1991). If they
107
do not, the leaders will tend to respond to the
social and political agendas around them rather
than influencing those agendas for the benefit of
the people and the organization.
The Potential Dangers and Abuses of
Transformational Leadership
Transformational leadership carries the
potential for abuse (Bass & Steidlmeier, 1999;
Conger & Kanungo, 1998). The potential
dangers lie within the leader-follower
interactions that arise from social power
responses (Clements & Washbush, 1999).
Followers develop perceptions of
transformational leaders and their uses of power
within organizations (Atwater & Wright, 1996).
Problems can arise when leaders attempt to
practice transformational leadership without
relying upon a strong ethical and moral
foundation. Bass and Steidlmeier defined such
behavior as &dquo;pseudo-transformational
leadership&dquo; (p. 184).
McIntosh and Rima (1997) defined the
&dquo;dark side&dquo; of leadership as &dquo;inner urges,
compulsions, motivations and dysfunctions that
drive us toward success or undermine our
accomplishments&dquo; (p. 29). These dark places
hover around our personalities &dquo;until we
experience an emotional explosion or some
other significant problem that causes us to
search for a reason why&dquo; (p. 22). Leaders and
organizations must know how to recognize the
hiding places of the dark forces that undermine
them. They must know how to implement
safeguards that deal with the personal and
organizational factors in these dangers.
Keeley (1995) went so far as to question
the validity of transformational leadership in
leading organizations because of its potential for
abuse. However, Bass and Steidlmeier (1999)
answered this kind of charge by grounding the
effectiveness of genuine transformational
leadership in three essential pillars: 1) moral
character, 2) ethical values, and 3) the morality
of the processes of ethical choices. These
pillars primarily affect the treatment of
followers. &dquo;Followers should not be mere
means to self-satisfying ends for the leader but
should be seen as ends in themselves. We label
as inauthentic or ’pseudo’ that kind of
108
transformational leadership that tramples upon
those concerns&dquo; (Bass & Steidlmeier, 1999, p.
186).
Personal Factors in the Dangers and
Abuses
A leader’s use of power reflects integrity.
A leader with a high level of integrity has an
understanding of what it means to give fair
treatment to all people (Arterburn, 1996).
However, leaders who lack integrity can rely
upon deceitful and manipulative methods to get
people to follow their agendas for the leader’s
benefit alone. Covey (1991) categorized three
types of leadership power that influence people:
1) coercive (people follow out of fear), 2) utility
(people follow out of an exchange of goods),
and 3) principle-centered (people follow based
on trust, respect, and honor). Principle-centered
leaders distribute power to other people. In so
doing, they engage people in a positive power
exchange rather than allowing the leader to
become a &dquo;black hole&dquo; of power.
Power becomes a potential danger if leaders
have their focus on themselves or on building
resources alone rather than on building their
followers (Bass & Steidlmeier, 1999). The
leader’s peril is to allow his or her ’dark side’ to
become completely self-absorbed with the
resources the people can provide rather than
serving the people. McIntosh and Rima (1997)
observed that the ’dark side’ is present in all of
us. Those who ignore it face major problems in
their leadership responsibilities. Nevertheless,
leaders who face their dark potential can redeem
and use it in positive ways.
Two of the most obvious perils in
leadership are pride and egotism (Sanders,
1994). These areas can press leaders into more
pronounced problems. To illustrate, McIntosh
and Rima (1997) identified five types of
darkened leaders: 1) the compulsive leader who
is status conscious and tries to perfect
everything in order to gain approval, 2) the
narcissistic leader who tries to succeed in order
to gain the admiration of others, 3) the paranoid
leader who is suspicious, hostile, and insecure,
4) the codependent leader who takes on more
than is necessary and represses emotions and
problems, and 5) the passive-aggressive leader
who is stubborn, complaining, angry, sad, and
manipulative.
Bass and Steidlmeier (1999) pointed out
that all leaders have some integration of positive
and negative factors. The transformational
leader must learn to progress in personal growth
in order to effectively recognize and manage the
potential danger of negative characteristics.
Progress takes place through accountability to
others and working to develop positive
attributes. Maintaining accountability keeps
leaders from isolation and nurturing their ’dark
side.’ It also helps keep leaders’ focus off
themselves and on the people who follow them.
Good transformational leaders sacrifice pride,
share their power, and develop humility.
Humility is a primary characteristic of great
leaders who make positive contributions to
humankind (Covey, 1991).
Organizational Factors in the Dangers
and Abuses
In addition to personal factors, there can be
organizational factors that lead to dangers in
transformational leadership. Leaders must
become aware of the organizational factors that
perpetuate negative forces among the people and
take steps to eliminate such problems. For
example, the flow of power in an organization
affects how people relate to one another (Folger,
Poole, & Stutman, 1997). Leaders in abusive
systems misuse power for their own benefit.
Morgan (1997) believes that managers can
easily turn power into a political tool to control
others. Transformational leaders must not allow
organizational bureaucracy to manipulate the
people for the sake of its own power. Ford
( 1991 ) asserted that power is not value neutral; it
is value driven. Therefore, transformational
leaders insure that their organizations value
people and use power for the benefit of the
people.
Leaders and organizations can recognize
the hiding places of the dark forces that
undermine genuine transformational leadership.
They can institute safeguards that benefit and
protect everyone. Accountability throughout the
organization is one clear factor that safeguards
people. In addition, the distribution of power
prevents leaders from abusing their positions or

taking advantage of their followers (Hackman
& Johnson, 1996).
The personal and organizational factors in
these dangers will never be totally eliminated,
but they can be managed for positive growth.
As a result, healthy transformational leaders can
benefit organizations. Bass & Steidlmeier
(1999, p. 190) stated: &dquo;If transformational
leadership is authentic and true to self and
others, it is characterized by high moral and
ethical standards .... At the same time it aims
to develop the leader as a moral person and
creates a moral environment
organization.&dquo; Bennis and Nanus (1997) gave a
powerful description of what this type of leader
will do: &dquo;lead by pulling rather than by pushing;
by inspiring rather than by ordering; by creating
achievable, though challenging expectations and
rewarding progress toward them rather than by
manipulating; by enabling people to use their
own initiative and experiences rather than by
denying or constraining their experiences and
actions&dquo; (p. 209).
Conclusion
Organizations need transformational
leaders. Such leaders focus upon organizational
change, which is imperative in an ever-changing
world. Transformational leaders seek to alter
the existing structure and influence people to
buy into a new vision and new possibilities.
Excellent transformational leaders use authority
and power to inspire people and motivate them
to trust and follow their example.
Transformational leaders have a major influence
upon organizational culture. In fact, their
primary focus is upon creating change process
a Arterburn, S. (1996). The power book. Nashville:
that continually causes people within the
organization to learn and grow.
Transformational leaders are needed
throughout organizations, and they can have a
in
significant impact any area. However, there
are also potential dangers resulting from the
powerful influence of transformational leaders.
Inauthentic transformational leaders can become
abusive or manipulative. Consequently,
organizations need some stability. Leaders and
organizations must maintain accountability to
insure that leaders stay within certain
boundaries.
The stability brought about by
109
effective transactional managers who initiate and
develop policy and procedures provide an
important rhythm in organizations. Leaders who
want to grow can guard against abuses and learn
to increase their overall effectiveness through
developing procedural stability in the
organization.
Bernard Bass (1990) concluded that
&dquo;transformational leadership can be learned, and
it can--and should--be the subject of
management training and development&dquo; (p. 27).
Herrington, Bonem, and Furr (2000) concurred
for the with Bass; they said, &dquo;One prevalent image is
that leadership is a natural ability and that
anyone who is not a ’bom leader’ will never
amount to anything as a leader .... Our
experience diverges from the conventional
wisdom, however, in the implications for those
who have to work at leadership. With time and
dedicated effort, leadership skills can be
learned&dquo; (p. 99).
Aspiring individuals should seek to learn
the skills necessary to become transformational
leaders. Organizations throughout the world
need transformational leaders who possess a
high degree of integrity and are motivated to
lead people to higher levels of performance.
Transformational leaders provide new direction,
new inspiration, and new behaviors for their
organizations. Therefore, they are essential
ingredients in organizational development and
societal progress.
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