Transformational Leadership: A Brief Overview

Abstract

In the late 1970’s a label was used to identify an emerging leadership style which had as its outcome the potential to satisfy the individual’s high level growth needs, needs identified by Maslow earlier in his books «Eupsychian Management» and «Motivation and Personality.» That emerging leadership style was coined by James McGregor Burns as «transformational» leadership, which he contrasted with «transactional » leadership. He identified transformational leadership as the process of tapping into the individual’s motivation to be positive, productive, and achievement oriented regarding the organization’s goals. Transactional leaders operate by making transactions with employeees regarding pay, recognition, advancement, etc., in exchange for good performance — or penalties for poor performance.