ABSTRACT

Transformational and charismatic leadership are the most frequently researched leadership theories of the past 20 years (Avolio 2005). These theories came up in

the 1980s when leadership researchers became interested in the emotional and symbolic aspects of leadership (Yukl 2006). The theories describe how people can be motivated to make sacrifices and put the needs of the mission or organization above their own needs. One of the best developed and most researched transformational leadership theories is the model that was formulated by Bass (1998). In this theory, Bass makes a distinction between transformational and transactional leadership dimensions. Both types of leadership dimensions are described in terms of component behaviors (see Table 9.1). Research shows that both transformational and transactional leadership contribute to leadership effectiveness, although the effects of transformational leadership are more profound. According to Yukl (2006), the primary influence process for transactional leadership is probably instrumental compliance. If that leadership style is dominant, subordinates feel compelled to do what the leader asks them to do, but they are not necessarily enthusiastic about it and will only make a minimal effort. The leader influences the subordinates’ behavior, but not

their attitudes. On the other hand, transformational leadership involves internalization on the side of subordinates. An inspiring vision and intellectual stimulation can make subordinates enthusiastic because their work becomes linked to their values, beliefs, and self-image. Shamir and Howell (1999) show that charismatic or transformational leadership is more important than transactional leadership in situations that can be characterized by crises and fast changes, and also in conditions where tasks are complex and the goals are ambiguous. These situations require much of the leaders’ capabilities to give direction and motivate their followers to persist in difficult circumstances.