International Journal of Enhanced Research in Management & Computer Applications

ISSN: 2319-7471, Vol. 5 Issue 5, May-2016, Impact Factor: 1.544

Transformational Leadership: Inspirational,

Intellectual and Motivational Stimulation in
Business
Prof. Avinash Pawar
University of Pune

ABSTRACT

Leading in today's dynamic, global, and multi-generational world provides new challenges and requires
innovative new approaches to leadership. At a time of increasing complexity, leaders across sectors and
geographies recognize that the work of a leader involves far more than driving results and delivering numbers.
People will follow a person who inspires them. A person with vision and passion can achieve great things. The
way to get things done is by injecting enthusiasm and energy. Transformational leaders have higher levels of
performance and satisfaction than groups led by other types of leaders. Style of leadership can have a positive
effect on the group. Transformational Leader seeks overtly to transform the organization, there is also a tacit
promise to followers that they also will be transformed in some way, perhaps to be more like this amazing
leader. In some respects, then, the followers are the product of the transformation. Transformational
Leadership is that passion and confidence can easily be mistaken for truth and reality. Whilst it is true that
great things have been achieved through enthusiastic leadership, it is also true that many passionate people have
led the charge right over the cliff and into a bottomless chasm. Just because someone believes they are right, it
does not mean they are right. This paper will outline various dimensions and attributes of transformational
leadership and its impact on business.

Keywords: Transformational Leadership, Inspiration and Motivation, Business Role Model, Organizational
Success.

INTRODUCTION

―The single biggest way to impact an organization is to focus on transformational leadership. There is almost no limit
to the potential of an organization that recruits good people, raises them up as leaders and continually develop them.‖
John C Maxwell (2001): The 17th Irrefutable Laws of Teamwork Transformational leadership is defined as a
leadership approach that causes change in individuals and socialsystems. In its ideal form, it creates valuable and
positive change in the followers with the end goal of developingfollowers into leaders. Enacted in its authentic form,
transformational leadership enhances the motivation, moraleand performance of followers through a variety of
mechanisms. These include connecting the follower's sense ofidentity and self to the mission and the collective identity
of the organization; being a role model for followers thatinspires them; challenging followers to take greater ownership
for their work, and understanding the strengths andweaknesses of followers, so the leader can align followers with tasks
that optimize their performance.

James Macgregor Burns (1978) first introduced the concept of transforming leadership in his descriptive researchon
political leaders, but this term is now used in organizational psychology as well. According to Burns,transforming
leadership is a process in which "leaders and followers help each other to advance to a higher level ofmorale and
motivation". Burns related to the difficulty in differentiation between management and leadership andclaimed that the
differences are in characteristics and behaviours. He established two concepts: "transformingleadership" and
"transactional leadership".

According to Burns, the transforming approach creates significant change in the life of people and organizations. It
redesigns perceptions and values, and changes expectations and aspirations of employees. Unlike in the transactional
approach, it is not based on a "give and take" relationship, but on the leader's personality, traits and ability to make a
change through example, articulation of an energizing vision and challenging goals. Transforming leaders are idealized

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in the sense that they are a moral exemplar of working towards the benefit of the team, organization and/or community.
Burns theorized that transforming and transactional leadership were mutually exclusive styles. Transactional leaders
usually do not strive for cultural change in theorganization but they work in the existing culture while transformational
leaders can try to change organizational culture.

DEVELOPMENT OF CONCEPT

Another researcher, Bernard M. Bass (1985), extended the work of Burns (1978) by explaining the
psychologicalmechanisms that underlie transforming and transactional leadership; Bass also used the term
"transformational"instead of "transforming." Bass added to the initial concepts of Burns (1978) to help explain how
transformationalleadership could be measured, as well as how it impacts follower motivation and performance.

The extent, to which a leader is transformational, is measured first, in terms of his influence on the followers. The
followers of such a leader feel trust, admiration, loyalty and respect for the leader and because of the qualities of the
transformational leader are willing to work harder than originally expected. These outcomes occur because the
transformational leader offers followers something more than just working for self-gain, they provide followers with an
inspiring missionand vision and give them an identity.

The leader transforms and motivates followers through his or her idealizedinfluence (earlier referred to as charisma),
intellectual stimulation and individual consideration. In addition, thisleader encourages followers to come up with new
and unique ways to challenge the status quo and to alter theenvironment to support being successful. Finally, in contrast
to Burns, Bass suggested that leadership cansimultaneously display both transformational and transactional leadership.

Now 30 years of research and a number of meta-analyses have shown that transformational and transactional leadership
positively predicts a wide variety of performance outcomes including individual, group and organizational level
variables
Transformational leaders have been written about for thousands of years–being both praised (Christ and Buddha) and
cursed (Attila the Hun and Genghis Khan). And transformational leaders are increasingly in demand when you want to:

 Escape the trap of the status quo,

 Grow a small business in to a larger one
 Create and Innovate, and
 Change Others & Change your Self.

The full range of leadership introduces four elements of transformational leadership:

1) Individualized Consideration: The degree to which the leader attends to each follower's needs, acts as a
mentor or coach to the follower and listens to the follower's concerns and needs. The leader gives empathy and
support, keeps communication open and places challenges before the followers. This also encompasses the
need for respect and celebrates the individual contribution that each follower can make to the team. The
followers have a will and aspirations for self-development and have intrinsic motivation for their tasks.

2) Intellectual Stimulation: The degree, to which the leader challenges assumptions, takes risks and solicits
followers' ideas. Leaders with this style stimulate and encourage creativity in their followers. They nurture and
develop people who think independently. For such a leader, learning is a value and unexpected situations are
seen as opportunities to learn. The followers ask questions, think deeply about things and figure out better
ways to execute their tasks.

3) Inspirational Motivation: the degree to which the leader articulates a vision that is appealing and inspiring to
followers. Leaders with inspirational motivation challenge followers with high standards, communicate
optimism about future goals, and provide meaning for the task at hand. Followers need to have a strong sense
of purpose if they are to be motivated to act. Purpose and meaning provide the energy that drives a group
forward. The visionary aspects of leadership are supported by communication skills that make the vision
understandable, precise, powerful and engaging. The followers are willing to invest more effort in their tasks;
they are encouraged and optimistic about the future and believe in their abilities.

4) Idealized Influence: Provides a role model for high ethical behaviour, instils pride, gains respect and trust. As
a development tool, transformational leadership has spread already in all sectors of western societies,
including governmental organizations. As an example, the Finnish Defence Forces is using widely Deep Lead
Model as basic solution of its leadership training and development. The Deep Lead Model is based on the
theory of transformational leadership.

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Working for a Transformational Leader can be a wonderful and uplifting experience. They put passion and energy into
everything. They care about you and want you to succeed.

Developing the vision: Transformational Leadership starts with the development of a vision, a view of the future that
will excite and convert potential followers. This vision may be developed by the leader, by the senior team or may
emerge from a broad series of discussions. The important factor is the leader buys into it, hook, line and sinker.

Selling the vision:The next step, which in fact never stops, is to constantly sell the vision. This takes energy and
commitment, as few people will immediately buy into a radical vision, and some will join the show much more slowly
than others. The Transformational Leader thus takes every opportunity and will use whatever works to convince others
to climb on board the bandwagon.In order to create followers, the Transformational Leader has to be very careful in
creating trust, and their personal integrity is a critical part of the package that they are selling. In effect, they are selling
themselves as well as the vision.

Finding the way forwards:In parallel with the selling activity is seeking the way forward. Some Transformational
Leaders know the way, and simply want others to follow them. Others do not have a ready strategy, but will happily
lead the exploration of possible routes to the Promised Land.The route forwards may not be obvious and may not be
plotted in details, but with a clear vision, the direction will always be known. Thus finding the way forward can be an
on-going process of course correction and the Transformational Leader will accept that there will be failures and blind
canyons along the way. As long as they feel progress is being made, they will be happy.

Leading the charge:The final stage is to remain up-front and central during the action. Transformational Leaders are
always visible and will stand up to be counted rather than hide behind their troops. They show by their attitudes and
actions how everyone else should behave. They also make continued efforts to motivate and rally their followers,
constantly doing the rounds, listening, soothing and enthusing.It is their unswerving commitment as much as anything
else that keeps people going, particularly through the darker times when some may question whether the vision can
ever be achieved. If the people do not believe that they can succeed, then their efforts will flag. The Transformational
Leader seeks to infect and reflect their followers with a high level of commitment to the vision.

One of the methods the Transformational Leader uses to sustain motivation is in the use of ceremonies, rituals and
other cultural symbolism. Small changes get big hurrahs, pumping up their significance as indicators of real
progress.Overall, they balance their attention between action that creates progress and the mental state of their
followers. Perhaps more than other approaches, they are people-oriented and believe that success comes first and last
through deep and sustained commitment.

Whilst the Transformational Leader seeks overtly to transform the organization, there is also a tacit promise to
followers that they also will be transformed in some way, perhaps to be more like this amazing leader. In some
respects, then, the followers are the product of the transformation.Transformational Leaders are often charismatic, but
are not as narcissistic as pure Charismatic Leaders, who succeed through a belief in themselves rather than a belief in
others.

One of the traps of Transformational Leadership is that passion and confidence can easily be mistaken for truth and
reality. Whilst it is true that great things have been achieved through enthusiastic leadership, it is also true that many
passionate people have led the charge right over the cliff and into a bottomless chasm. Just because someone believes
they are right, it does not mean they are right.Paradoxically, the energy that gets people going can also cause them to
give up. Transformational Leaders often have large amounts of enthusiasm which, if relentlessly applied, can wear out
their followers.Transformational Leaders also tend to see the big picture, but not the details, where the devil often lurks.
If they do not have people to take care of this level of information, then they are usually doomed to fail.

Finally, Transformational Leaders, by definition, seek to transform. When the organization does not need transforming
and people are happy as they are, then such a leader will be frustrated. Like wartime leaders, however, given the right
situation they come into their own and can be personally responsible for saving entire companies.

Researchers have found that this style of leadership can have a positive effect on the group. "Research evidence clearly
shows that groups led by transformational leaders have higher levels of performance and satisfaction than groups led by
other types of leaders".The transformational leaders believe that their followers can do their best, leading members of
the group to feel inspired and empowered.

Much like a breath of fresh air, the transformational leader creates enthusiasm and revitalizes organizations. This
enthusiasm is generated in several ways. First, transformational leaders use what's called idealized influence to
demonstrate to followers that the leader can walk the walk and talk the talk. Essentially, the transformational leader
serves as a role model to followers by living by the same principles that he or she expects of their followers. The
transformational leader would never expect followers to do something that he or she would not do themselves.
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Second, the transformational leader is also a charismatic leader, who has the ability to arouse a sense of excitement,
motivation and assurance in followers. Keep in mind while transformational leaders are charismatic, they are not as
narcissistic as pure charismatic leaders can be.

Third, transformational leaders show a genuine concern for the needs and feelings of their followers through something
called individualized consideration. Examples of individualized consideration include things like mentoring employees
one-on-one, delegating difficult tasks to deserving people and maintaining a high level of communication with
followers. Each follower is treated as an individual. The transformational leader spends time recognizing the
differences in followers.

Fourth, the transformational leader is intellectually stimulating by encouraging creativity and innovation when
formulating potential solutions to organizational problems. By allowing the followers to participate in this unrestricted
fashion, the transformational leader is able to stir the imagination of followers in a way that promotes the prompt
identification of problems and high-quality solutions that are implemented with the full commitment of followers.
Given that much of the transformational leader's time is spent trying to convince followers to transcend their personal
interests for the sake of the larger organization, idealized influence, charisma, individualized consideration and
intellectual stimulation are essential.

Transformational leadership is that which facilitates a redefinition of a people‘s mission and vision, a renewal of their
commitment and the restructuring of their systems for goal accomplishment. It is a relationship of mutual stimulation
and elevation that converts followers into leaders and may convert leaders into moral agents. Hence, transformational
leadership must be grounded in moral foundations.

While idealized influence, charisma, individualized consideration and intellectual stimulation certainly pave the way
for the transformational leader to gain the support of followers, much like the Transformers, there is more than meets
the eye when it comes to transformational leadership. What sets the transformational leader apart from many other
leadership styles is the ability to influence others to follow them through vision, framing and impression
management.Vision is central to any transformational leader's goal for the reason that before anyone can follow a
leader they need to have an idea of where they are going and why. The transformational leader will paint the picture of
the desirable future for followers, detailing out their individual role in the process and how they will be affected by the
change in addition to binding the greater group together to work towards the shared goal.

Framing is used by the transformational leader to provide followers with a game plan in highly-measureable terms for
how they will accomplish their tasks, which will aid in the achievement of some organizational goal.Impression
management refers to the steps that a transformational leader will take to control how they are viewed by their
followers. Clearly, a leader wants to be seen as competent, knowledgeable and deserving of their role in the
organization; however, the transformational leader makes a conscious effort to be transparent and regarded as all of
those things and more so that they can really continue to influence their followers.

In essence, the transformational leader wants to be the 'pick of the litter' by seeming more attractive and appealing to
followers than alternate leaders - they really want to form a special bond with their followers built on things like trust,
personal integrity and genuine concern for others. At the same time, followers should quickly be able to tell you what
their transformational leader stands for. Likewise, the followers should know where their leader stands, which is always
right next to them instead of behind them.

Once a leader is seen as charismatic, trustworthy, confident,committed and admirable to the organization, followers are
more than willing to identify with the leader and their vision. The transformational leader will use contingent rewards,
or rewards based on meeting some established goal, to acknowledge the efforts of followers when they are aligned with
the vision. They also practice management by exception by providing autonomy to followers and intervening only
when there is a problem. Followers are converted into leaders by the transformational leader, who empowers them to
commit to actions that align with the vision.

CHARACTERISTICS OF TRANSFORMATIONAL LEADERS

Transformational leaders are people who can create significant change in both followers and the organization with
which they are associated and they lead changes in mission, strategy, structure and culture, in part through a focus on
intangible qualities like vision, shared values and ideas, and relationship building. They are able to give significance to
diverse activities, illustrating, for example, the ways in which different people and groups might be working towards
larger organizational objectives. Transformational leaders also find common ground that allows them to enlist
followers in processes of change.

Transformational leaders have following characteristics

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 Clear sense of purpose, expressed simply (e.g.  Strategic and Visionary

metaphors, anecdotes)  Effective communicator
 Value driven (e.g. have core values and congruent  Emotionally mature and Courageous
behavior)
 Risk-taking and Risk-sharing
 Strong role model
 Unwilling to believe in failure
 High expectations
 Sense of public need and mentoring
 Persistent and Self-knowing
 Considerate of the personal needs of employees.
 Perpetual desire for learning
 Listens to all viewpoints to develop spirit of
 Love work and Life-long learners cooperation
 Identify themselves as change agents  Able to deal with complexity, uncertainty and
 Enthusiastic and Able to attract and inspire other ambiguity

The current environment characterized by uncertainty, global turbulence, and organizational instability calls for
transformational leadership to prevail at all levels of the organization. The followers of such leaders demonstrate high
levels of job satisfaction and organizational commitment, and engage in organizational citizenship behaviours. With
such a devoted workforce, it will definitely be useful to consider making efforts towards developing ways of
transforming organization through leadership.The transformational leader articulates the vision in a clear and appealing
manner, explains how to attain the visions, acts confidently and optimistically, expresses confidence in the followers,
emphasizes values with symbolic actions, leads by example, and empowers followers to achieve the vision

TRANSFORMATIONAL LEADERSHIP & EMOTIONAL INTELLIGENCE

There are a number of leader styles, some relatively easy to do. But still others require a great deal of practice along
with determined effort to build the component skills. This is the case with transformational leadership.

All individuals who aspire to become great transformational leaders must master their own emotions. After all, would
you want to follow someone who has anger management problems? Effective transformational leaders understand how
another will respond to a persuasive or motivational attempt. And when they do not correctly anticpate, they have
enough empathy to adjust.

One might say this this theory is a correction for the assumption made in business schools that humans are rationally. If
fact, this is a key assumption underlying the dominant theories held by the field of economics.

Transformational leaders cannot assume logic and rationale in responding to change; one will have to deal with illogic
and negative emotions. So, the importance of being high on emotional intelligence.
―Only those who do not seek power are qualified to hold it.‖ — Plato

Technically, emotional intelligence is not about leadership. The Emotional Intelligence approach stresses five
developmental areas:

 Self-regulation
 Social Skills
 Empathy
 Self-Awareness, and
 Achievement Motivation

Leader‘s need to have a number of different types of skills. One of the practical skills transformational leaders need to
develop this ability to read people‘s emotions. It‘s not as easy as it sounds, and different cultures have different facial
expressions for different types of emotions.

THEORY DISCUSSION

James Macgregor Burns (2003). Transforming Leadership, New York: Atlantic Monthly Press. Twenty-five years after
the publication of Leadership, Burns expands his theories on how leaders cultivate transformational leadership skills in
themselves and in their successors. He starts with the explaining the two opposing styles: those who occupy the
position (they arrange the deck chairs on the Titanic) and those who transform not only their own position, but those
around it (they fix the ship).Burns draws on numerous examples from history, citing meaningful examples from the
lives of great political transformational leaders. Unlike many writers, he possesses deep insight into recent
psychological approaches and so has a more profound understanding of transformational leadership.

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Burns, James Macgregor, (1982). Leadership, New York: Harper Perennial Modern Classics Considered a classic by
many, the book was the winner of both a Pulitzer Prize and a National Book Award after it was published in 1978. It
focuses on the many different types of leadership. Burns argues that the type of leadership exercised by a general in the
military is in many respects different from that used by an executive in a multinational corporation, a mayor of city or
the head of a religious organization. Two chapters of the book cover power and purpose of leadership, three chapters on
the origin of leadership, and four chapters are dedicated to understanding transformational leadership and five chapters
cover transactional leadership. On the change side of things, he covers heroic, moral, revolutionary and reform styles of
transformational leadership. He illustrates his points with vivid historical stories on Joan of Arc, Freud, Gandhi, Mao,
the Roosevelt‘s, Stalin and others. He also puts forth his belief that great leaders play to mutual need, empathy and
growth; whether one lives within the status quo or tries to transform it.

Goleman, Daniel, et. al. (2002). Primal Leadership. Cambridge, MA: Harvard Business Press. In his recent book Primal
Leadership, Goleman presents the theory on why emotional intelligence is an important foundation for leader
effectiveness. It makes sense that leaders are not only be aware and in control of their own emotions, but also able to
influence individuals at an emotional level. Can you take someone who is feeling ―down‖ and leave them feeling ―up?‖
Yukl, Gary. (2002) Leadership in Organizations. Cambridge, MA: Harvard Business Press. Much can be learned by a
good book honed by constant improvement. Originally published in 1981, Yukl‘s book is now up to the fifth edition.
The book is jammed packed full of sound theory on leadership. It contains fifteen chapters, some of which are listed
below:

 Participative Leadership
 Leaders and Their Followers
 Power and Influence
 Traits and Skills
 Charismatic and Transformational Leadership
 Leading Change in Organizations
 Strategic
 Leading Change in Organizations
 Developing Leadership Skills

Kouzes, James and Posner, Barry (2007). The Leadership Challenge, 4th Edition, SanFranciso, CA: Jossey-Bass.By
James Kouzes and Barry Posner There is a story of a rather old professor who was adamant about not having his
students read the first edition on any textbook. It was his belief that good theory only gets better with age and
reprints.While not a textbook, The Leadership Challenge continues to get published and republished since it first came
out in 1989. The book presents five leadership principles. These five are:

o Challenge the Process

o Inspire a Shared Vision
o Model the Way
o Enable Others to Act, and
o Encourage The Heart.

While not claiming to be a book on transformational leadership, these principles lend themselves to its implementation.

CASES ON TRANSFORMATIONAL LEADERSHIP

Case 1: Queen Elizabeth I of England

There are similarities between managing a corporation and running a country. The most obvious difference—countries
are much harder to run. When Elizabeth began her reign, England was, to put it mildly, a mess. Ascending to the throne
at a particularly chaotic time of British history, she was beset by enemies from without and within. A betting man
would have put good odds on her getting through the first two-years alive.However, at the end of her 45 year reign,
England had become the richest and most powerful nation in Europe and was well on its way to becoming one of the
great powers of the modern age.

Case 2: Alexander the Great: King of Macedonia

How can one so young accomplish so much? By the time Alexander died in 323 BC, he had not yet reached his 33rd
birthday. Yet, in that short time, he had created an empire that stretched from Greece to India.In an age where tyrants
ruled by brute force and fear, he defied the conventional political wisdom of the time. Rather than cleaning out the
treasury of a conquered nation and then taxing them to the max, he built new cities libraries; established mechanisms
for communication and commerce; had engineers build new roads, and had scientists capture new knowledge.Known

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as much for his sound strategy and tactical innovation in the military arena as his wise statesmanship in the political
sphere, he was the student of Aristotle who went on to became even greater than his teacher.

Case 3: Bill Gates, Former CEO of Microsoft

There is a certain type of transformational leader that many try to be, but few succeed. This type of personal, the Great
Founder, also requires a set of skills not taught in the university. In fact, one of the most successful entrepreneurs ever,
Bill Gates, decided to drop out of Harvard and start a business called Microsoft. One can almost image how that
conversation went. The future entrepreneur saying, ―Mom, I want to drop out of school so that I can work on an
entrepreneurial venture for 80 hours a week, for now pay, that has a high probability of failure‖. But unlike most
entrepreneurs, he never failed and Microsoft was never unprofitable.

APPLYING TRANSFORMATIONAL LEADERSHIP

Because transformational leadership covers a wide range of aspects within leadership, there are no specific steps for a
manager to follow. Becoming an effective transformational leader is a process. This means that conscious effort must
be made to adopt a transformational style. Understanding the basics of transformational leadership and the four I's can
help a manager apply this approach. A transformational leader has the following qualities:

 Empowers followers to do what is best for the organization.

 Strong role model with high values.
 Listens to all viewpoints to develop a spirit of cooperation.
 Creates a vision, using people in the organization.
 Acts as a change agent within the organization by setting an example of how to initiate and implement
change.
 Helps the organization by helping others contribute to the organization.

Implications for Managers

The role every manager must fill in the workplace is leadership. Managers often make the mistake of assuming that
because they are the managers, they are also the leaders and that their associates will automatically follow. In reality,
position only denotes title, not leadership. To be an effective leader, the manager must influence his associates in a
positive way to reach the goals of the organization. Furthermore, the transformational leadership approach can help
managers become exceptional leaders. This paper will explain the transformational leadership approach by discussing
its strengths, weaknesses, and steps for application.

1) Develop a challenging and attractive vision, together with the employees.

2) Tie the vision to a strategy for its achievement.
3) Develop the vision, specify and translate it to actions.
4) Express confidence, decisiveness and optimism about the vision and its implementation.
5) Realize the vision through small planned steps and small successes in the path for its full implementation.

CONCLUSION

The transformational leader spends much of their time trying to convince employees to transcend their personal
interests for the sake of the larger organization. This is accomplished in several ways including: idealized influence,
charisma, individualized consideration and intellectual stimulation. Idealized influence involves the transformational
leader serving as a role model to followers by living by the same principles that he or she expects of their followers.
Charisma shows the leader's ability to arouse a sense of excitement, motivation and assurance in followers.
Individualized consideration is used by the transformational leader to show a genuine concern for the needs and
feelings of followers. Finally, the transformational leader is intellectually stimulating by encouraging creativity and
innovation when formulating potential solutions to organizational problems.

What sets transformational leaders apart from many other leadership styles is their ability to influence others to follow
them through vision, framing and impression management. Vision is central to any transformational leader's goal for
the reason that before anyone can follow a leader they need to have an idea of where they are going and why. Framing
is used by the transformational leader to provide followers with a game plan in highly measureable terms for how they
will accomplish their tasks which aid in the achievement of some organizational goal. Impression management refers to
the steps a transformational leader will take to really try to control how they are viewed by their followers.

Transformational leadership is a vital role for effective managers because leader effectiveness determines the success
level of the organization. Organizations that take the time to teach leadership are far ahead of the competition. By

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becoming familiar with the transformational leadership approach, managers can become effective leaders in the
business world.Transformational leaders are relevant in contemporary business due to their flexible, innovative, and
inspirational personas. When it comes to creating and sustaining the competitive advantage, the transformational
leadership style is most effective due to the ability to transcend the status quo and bring organizations into their
desirable future.

Transformational leadership can be applied in one-on-one or group situations. Using this approach, the manager
(leader) and the associates (followers) are ―transformed‖ to enhance job performance and help the organization to be
more productive and successful.

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