TRANSACTIONAL & TRANSFORMATIONAL LEADERSHIP

Burns Theory of Transformational & Transactional Leadership
The idea of transformational leadership between leaders and followers was first developed by James McGregor Burns in 1978. He distinguishes between leaders who are, or attempt to be ethical and moral, and "power wielders," who are not. In an essay 20 years later, Burns returns to this idea, arguing that: -
 Transactional leaders, through their transactions, make use of "modal values such as honesty, trustworthiness, reliability, reciprocity, [and] accountability". They do not possess these leader characteristics, nor are they able to develop strong emotional bonds with followers or inspire followers to do more than they thought …show more content…

• Inducing them to transcend their own self-interests for the sake of the organization or team
• Activating their higher-level needs.

The four factors or components to transformational leadership-or four I’s are:-

• Charisma or idealized influence
• Inspirational
• Motivation
• Intellectual stimulation
• Individualized consideration.

1. Charisma or idealized influence
• Leaders display conviction, and specify the importance of having a strong sense of purpose.
• Stimulate employees to be more innovative-they themselves take personal risks and take stand on difficult issues- are not afraid to use unconventional (always ethical) methods in order to achieve a collective mission.
• Act as role models; they generate pride, loyalty, confidence, and alignment around a shared purpose.
• Talk about most important values and beliefs.
• Consider the moral and ethical consequences of a decision.
• Instill pride in employees for being associated with them.
2. Inspirational consideration
• Leaders articulate in appealing a vision of the future-they have a collective vision of the future, and most importantly manage to communicate it effectively to all employees.
• They are masters of communication skills ,using