Transformational leadership refers to a form of leadership based upon religion or a cause that aims to inspire and improve followers’ motivation, capabilities, and productivity. Human resource management, as it relates to transformational leadership, attempts to understand why some leaders can motivate and inspire their employees and others are not.
Transformational leadership is the style of leadership where a leader leads by example and inspires people to follow their values and beliefs to help them succeed in the organization by fulfilling its organizational goals. This kind of leadership style is commonly found in charismatic and enthusiastic leaders who use their talents and passions to motivate the team, create mission statements, and pursue visions that will benefit everyone in the organization.
Developing a successful leadership routine is one of the most critical personality traits you can have as an entrepreneur. Four elements make up effective transformational leadership. Those elements are idealized influence, inspirational motivation, intellectual stimulation, and individual consideration.
Transformational leadership can be defined as a leader who changes from one situation to a higher or better position through an influence process. For example, the leader wants to transform the follower’s cultural belief system to hinder the organization’s performance. Examples of transformational leaders include Abraham Lincoln and Martin Luther King, Jr.
Transactional leadership stems from the idea that leaders must reward and punish employees for their performance, for example, offering a bonus scheme for good performance and a pay cut incentive where there was no performance. Finally, when it comes to transformational leadership, it is the kind of leadership based on inspiring employees by nurturing and guiding them towards achieving a common goal.
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