Leadership with values, meaning and a higher purpose
Transformational Leadership theory has evolved from and contains elements of preceding leadership types, such as trait and behaviour theories, charismatic, situational and transactional leadership.
Transformational leadership theory is about leadership that creates positive change in the followers whereby they take care of each other's interests and act in the interests of the group as a whole.
In this leadership style, the leader enhances the motivation, moral and performance of his follower group.
James MacGregor Burns first brought the concept of transformational leadership to prominence in his book Leadership [1978].
Originally this was in the context of his researches into political leadership, but this term is now used in organisational psychology as well.
Macgregor drew the distinction between transactional leadership and transformational leadership.
Transformational leadership theory transcends transactional leadership and rather than describing a set of specific behaviours, it outlines an ongoing process by which "leaders and followers raise one another to higher levels of morality and motivation" [Leadership, p20].
Transformational leadership is all about values and meaning, and a purpose that transcends short-term goals and focuses on higher order needs.
“Essentially the leader’s task is consciousness-raising on a wide plane. The leader’s fundamental act is to induce people to be aware or conscious of what they feel - to feel their true needs so strongly, to define their values so meaningfully, that they can be moved to purposeful action.”
Macgregor [Leadership, pp 43-44]
Bernard M. Bass [1985], suggested a transformational leadership theory that added to Burn's original theory - the extent to which a leader is transformational, is measured:
(1) In terms of the leader's influence on the followers
(2) The leader success in seeking new ways for working, while he tries to identify new opportunities and assess threats