One has come across leaders in different areas of our lives – at business, at school, at university, in sport and even within our own circle of friends. Someone always stands out and takes the lead. They not only influence us such that we look up to them and follow them but also we often wonder what is it they have that we, who follow, haven't. We ask ourselves: 'Are they born with it?' (Traits theory) or 'Is it what they do and how they do it that defines their leadership and therefore can I learn it?' (Functional theory) or is the environment and situation that produces them? (Situational theory) Or ……………. In organisations too, how a leader influences others to achieve the mission, goal, or objectives is affected not only by the leadership style they choose but also by the situation, the followers and their own skills and abilities. Transformational Leadership The concept of Transformational leadership, introduced by Burns (1978) and later developed further by Bass (1985), has become very popular in recent years. Burns defined transformational leadership as a process where 'leaders and their followers raise one another to higher levels of morality and motivation.' According to Bass, this kind of leader: • Is a model of integrity and fairness. • Sets clear goals. • Has high expectations. • Encourages others. • Provides support and recognition. • Stirs the emotions of people. • Gets people to look beyond their self-interest. • Inspires people to reach for the improbable. In the view of Hoy & Miskel (2001), transformational leaders are expected to: • Define the need for change. • Create new visions and muster commitment to the visions. • Concentrate on long-term goals. • Inspire followers to transcend their own interest to pursue higher order goals. • Change the organization to accommodate their vision rather than work within the existing one. • Mentor followers to take greater responsibility for their own development and that of others. Followers become leaders and leaders become change agents, and ultimately transform the organization. Transformational leadership involves four critical components or behaviours (Bass & Avolio, 1994): • Idealised influence – building respect and mutual trust by choosing to do what is right rather than what is expedient. • Inspirational motivation – conveying meaning through stories and symbols with which followers can identify; helping followers attain more than they thought was possible by setting high expectations. • Intellectual stimulation – challenging employees to think for themselves, to answer their own questions. • Individualised consideration – recognizing that people are at their best when their individual needs are considered, and their efforts and accomplishments encouraged and recognized. Bass (1985) drew a sharp contrast between a leader who is transformational and a merely transactional one. Transactional leadership is a leadership that proves instrumental in bringing about anticipated or expected outcomes in which the leader not only 'recognizes the role the followers must play to attain the outcomes desired by the leader' but also, crucially, recognizes what the followers need and clarifies how those needs will be fulfilled in exchange for the follower's satisfactory effort and performance' However, the transformational leadership is seen when leaders stimulate others to view their work from new perspectives, generate an awareness of the mission or vision of the organization, develop colleagues and followers to higher levels of ability and potential, and motivate them to look beyond their own interests toward those that will benefit the group more. In this understanding, transformational leaders set more challenging goals and typically achieve higher performances than transactional leadership that goes beyond simple exchanges and agreement. Transactional leadership, as with some other styles, tends to have an operational or "here and now" focus whereas Transformational leadership runs deeper and focuses on a strategic and fundamental change. Question Many of the leadership styles you have come across in the module tend to be more successful in the short term but the emerging research and literature seems to demonstrate that a transformational style is much more effective for the longer term. By reference to leadership principles adopted by various business leaders, critically evaluate the evidence that transformational leadership impacts positively on employee motivation and organisational culture and thereby influences the success of the business. 1500 words