There’s no denying that leadership is incredibly important. With nearly 75% of employees leaving their jobs due to ‘bad bosses’ and only one in 10 people possessing ‘high talent to manage’, it’s abundantly clear that we need to be learning more about it. Now, rather than investing time in old-fashioned leadership methods that show little success, many organisations are trying to shift towards transformational leadership.
What is transformational leadership?
Transformational leadership is a leadership theory that has been around for more than 40 years. Its efficacy has been supported by research that shows the correlation between the leadership style and performance outcomes, considering variables at individual, group and organisational levels.
The concept was first introduced by James McGregor Burns in his 1978 book, Leadership. The author broadly divided leaders into two categories: transactional and transformational. Transactional leaders focused on getting results by either giving or holding back rewards or benefits for their employees. Transformational leaders, on the other hand, would encourage those below them in the hierarchy to support one another and the organisation as a whole.
McGregor identified transformational leadership as happening where “leaders and their followers raise one another to higher levels of morality and motivations”. Of course, the author was studying political leaders, but the term is now widely used in organisations too.
Later, researched Bernard M. Bass expanded on McGregor’s to develop a framework that explains the psychological mechanisms that underlie both transactional and transformational leadership. According to Bass, subordinates of transformational leaders have feelings of respect, trust and admiration for their manager. What’s more, they’re more willing to put in more work that what may have initially been expected from them.
The components of transformational leadership
Aside from the indicating the attitudes that transformational leaders cultivate within their teams and organisations, Bass pointed out the four components of transformational leadership.
- Individual consideration
Transformational leaders offer individualised support and encouragement to their subordinates. To do this, they keep lines of communication open to ensure that their followers feel free to share ideas. They will also directly recognise the unique contributions of each follower both personally and on a team level.
- Intellectual stimulation
To challenge the status quo and promote creative thinking among those who they lead, transformational leaders encourage team members to find opportunities to learn and to explore new problem-solving methods.
- Inspirational motivation
Also known as charismatic leadership, this characteristic enables transformational leaders to engage their followers and encourage them to work towards a single goal. By articulating their vision, a transformational leader can help their subordinates to feel the same passion and motivation for achieving these goals.
- Idealised influence
One of the components of transformational leadership that make this method so successful is idealised influence. By gaining the trust and admiration of their followers and serving as a role model, transformational leaders are able to encourage teams to emulate their actions and ideals.
Characteristics of a transformational leader
To encourage good morale, increase performance and motivate employees, transformational leaders usually possess certain characteristics. While some of these are inborn, many can be learnt.
1. A strong leadership ego
Often, it’s all too easy for individuals who find themselves in positions of power to let their egos take over as they strive to achieve their goals. However, a strong leadership ego requires that whoever is ‘in charge’ does exactly the opposite of this. A transformational leader will keep their ego in check and ensure that everyone on the team has a chance to tackle problems and is acknowledged for their hard work. What’s more, they will and put the needs of others before their own to elicit the best possible performance from them. If necessary, they will also accept criticism and take responsibility for any shortcomings.
2. A measured risk taker
Every leader should be able to assess a situation and make a quick decision based on the facts at their disposal[NF1] . But this is a particularly important characteristic for a transformational leader. Rather than focusing on risk management and the idea that they may be able to reduce the probability of making a mistake, transformational leaders rely on their instincts and information gathered from their team to make informed decisions. This is especially valuable in an environment where potentially risky decisions can facilitate growth.
[NF1]Opportunity to link to 6 leadership skills for success
