mission.

V
Transactional Transformational
S.

Leadership is responsive Leadership is proactive

Works within the organizational Works to change the organizational

culture culture by implementing new ideas

Employees achieve objectives

Employees achieve objectives through
through rewards and punishments set
higher ideals and moral values
by leader

Motivates followers by appealing to Motivates followers by encouraging them

their own self-interest[6] to put group interests first [7]

Individualized consideration: Each

Management-by-exception: maintain behavior is directed to each individual to
the status quo; stress correct actions express consideration and support. [4]
to improve performance.[4] Intellectual stimulation: Promote creative
and innovative ideas to solve problems.[4]

What is Transformational Leadership? How New Ideas Produce Impressive Results

Posted November 25, 2014 in Leadership is Learned Updated October 30, 2015 by
Pamela Spahr
Transformational leadership inspires people to achieve unexpected or remarkable
results. It gives workers autonomy over specific jobs, as well as the authority to
make decisions once they have been trained.

Some of the basic characteristics of transformational leadership are inspirational, in

that the leader can inspire workers to find better ways of achieving a goal;
mobilization, because leadership can mobilize people into groups that can get work
done, and morale, in that transformational leaders raise the well-being and
motivation level of a group through excellent rapport. They are also good at conflict
resolution.

All of these traits make transformational leadership a good fit for many types of
business.

Read more about transformational leadership:

Transformational leadership defined

History of transformational leadership

Examples of transformational leadership and famous quotes

Characteristics of transformational leaders

Advantages and disadvantages of transformational leadership

Benefits of transformational leadership

Transformational leadership defined

Transformational leaders are sometimes call quiet leaders. They are the ones that
lead by example. Their style tends to use rapport, inspiration, or empathy to engage
followers. They are known to possess courage, confidence, and the willingness to
make sacrifices for the greater good.

They possess a single-minded need to streamline or change things that no longer

work. The transformational leader motivates workers and understands how to form
them into integral units that work well with others.

Differences between transformational leadership and other leadership styles

There are marked differences between transactional leadership and

transformational leadership.

Transformational leaders specialize in:

Working to change the system

 Solving challenges by finding experiences that show that old patterns do not
fit or work

Wanting to know what has to change

Maximizing their teams capability and capacity

Transactional leaders do the following:

Work within the system

Start solving challenges by fitting experiences to a known pattern

Want to know the step-by-step approach

Minimize variation of the organization

Another way to put it: Transactional is a telling style, while transformational is a

selling style.

History of transformational leadership

The term transformational leadership was coined by sociologist James V. Downton

in 1973. Leadership expert James Burns defined transformational leaders as those
who seek to change existing thoughts, techniques and goals for better results and
the greater good. Burns also described transformational leaders as those who focus
on the essential needs of the followers.

Examples of transformational leadership

Transformational leaders excel in a variety of sectors. Here are notable business

leaders who used the transformational style.

William Edwards Deming

William Edwards Deming is known as the father of statistical quality control. After
earning a doctorate in mathematics and physics at Yale in 1928, he spent most of
his career working or consulting for the U.S. government. During World War II,
Deming taught statistical process control techniques to military production workers.

After the war ended, the U.S. Department of the Army sent Deming to Japan to
study agricultural production and related problems. He convinced Japanese officials
of the potential for industrial uses of statistical methods. Demings goal was to have
Japan become a world industrial power in five years. Japan did it in four. Deming
was asked to do the same thing for U.S. manufacturing firms, but his methods did
not take root until the 1980s.

Peter Drucker
Peter Drucker was a professor and management consultant among other things. He
predicted some of the 20th-centurys biggest changes, such as the Japanese rise to
a world economic power, the age where people would need to learn in order to keep
their jobs or get ahead, and the importance of marketing and innovation. He coined
the term knowledge worker.

Drucker continually called for balanced management, which called for a balance
between short-term needs and long-term plans, as well as profitability and other
elements of business. He was very interested in how to mesh innovation and
entrepreneurship.

He felt that entrepreneurship was a vehicle of innovation. Entrepreneurship was not

just high technology, but high tech was a vehicle for change, in attitude, values, and
behavior. The entrepreneur systematically looked for change, responded to them
and took advantage of opportunities as they present themselves.

Ross Perot

H. Ross Perot started his career as a salesman for IBM. In the 1960s he started his
own company, Electric Data Systems (EDS), one of the first businesses that built
and serviced computer systems for other companies. In contrast to IBM, Perot
trained his workers to do whatever needed to be done for a customer without
waiting for approval. There was a strong bias toward action.

In the beginning, Perot shunned strategic planning. Over the next few years,
however, he hired military officers who could take orders and give orders. Perots
slogan was Go, do.

If an employee took credit for someone elses work, they were out the door. The
motto of Perots company at one point was We bring order to chaos.

John D. Rockefeller

John D. Rockefeller was the founder of Standard Oil. It started as a single oil refinery
and grew to a huge company. Much of the companys growth came through
acquisitions. But, Rockefeller also spent a considerable amount of time streamlining
the organization as it grew.

Rockefeller built his companys early reputation by guaranteeing the quality of

Standards kerosene. He was known for his organizational tactics and for using
disciplined strategies. One of the reasons for Rockefellers success was he could
align his company with one simple vision, then he held everyone accountable for
their part in making that vision happen.

In business, transformational leadership is often the most effective leadership style.

Transformational leadership quotations

Edwards Deming: A bad system will beat a good person every time.

Peter Drucker: If you want something new, you have to stop doing something
old.

Ross Perot: Punishing honest mistakes stifles creativity. I want people moving and
shaking the earth and they are going to make mistakes.

John D. Rockefeller: Good leadership consists of showing average people how to

do the work of superior people.

Transformational leadership style requirements

Here are some of the characteristics of transformational leaders:

Very well-organized and expect their followers to be creative

Team-oriented and expect that followers will work together to create the best
possible results

Respected, and in turn respects followers

Acts as coach of the team. He or she provides training and motivation to

reach the desired goals

Responsible for their team, but also instills responsibility into team members

Engenders respect through rapport and a personal influence

Advantages and disadvantages of transformational leadership

Transformational leadership works well in organizations where change is needed.

Transformational leadership is not the right fit for new organizations where no
structure exists.

Transformational leadership pros:

Excellent at communicating new ideas

Good at balancing short-term vision and long-term goals

Experience building strong coalitions and establishing mutual trust

They have integrity and high emotional intelligence (empathy with others)

Transformational leadership cons:

Ineffective in initial stage or ad-hoc situations

Require an existing structure to fix

 Bad fit in bureaucratic structures

Benefits of transformational leadership

One of the best uses of this leadership style is in an organization that is outdated
and requires serious retooling. It is also a perfect match for a small company that
has big dreams and wants to change and adapt to get there. In both of these
examples, the board of directors can bring in a transformational leader who will
change the structure of the organization and also motivate the current workers to
buy into the new direction.

Inspirational Motivation: The foundation of transformational leadership is the

promotion of consistent vision, mission, and a set of values to the members. Their
vision is so compelling that they know what they want from every interaction.
Transformational leaders guide followers by providing them with a sense of
meaning and challenge. They work enthusiastically and optimistically to foster the
spirit of teamwork and commitment.

Intellectual Stimulation: Such

leaders encourage their followers to be
innovative and creative. They
encourage new ideas from their
followers and never criticize them
publicly for the mistakes committed by
them. The leaders focus on the what
in problems and do not focus on the
blaming part of it. They have no
hesitation in discarding an old practice
set by them if it is found ineffective.

Idealized Influence: They believe in

the philosophy that a leader can
influence followers only when he
practices what he preaches. The leaders
act as role models that followers seek to
emulate. Such leaders always win the
trust and respect of their followers
through their action. They typically
place their followers needs over their
own, sacrifice their personal gains for
them, ad demonstrate high standards of
ethical conduct. The use of power by
such leaders is aimed at influencing
them to strive for the common goals of
the organization.

Individualized Consideration:
Leaders act as mentors to their
followers and reward them for creativity
and innovation. The followers are
treated differently according to their
talents and knowledge. They are
empowered to make decisions and are
always provided with the needed
support to implement their decisions.