Chapter 8 – Transformational Leadership Inspiring change
Transformational leadership focuses on inspiring and elevating followers, often captured in the “Four I’s”:
- Idealized influence – acting as a role model with strong values.
- Inspirational motivation – articulating an attractive vision.
- Intellectual stimulation – challenging assumptions and encouraging creativity.
- Individualized consideration – coaching and supporting each follower’s development.
In contrast, transactional leadership is based on exchange (rewards, monitoring, corrective actions). While both can be useful, transformational leadership tends to be linked with higher levels of innovation, commitment and change.
1. How do the “Four I’s” of transformational leadership reinforce one another? Provide an example of a leader who demonstrates these components effectively.
The Four I’s are mutually reinforcing. Idealized influence builds trust, which makes followers more receptive to the leader’s inspirational motivation (vision). Intellectual stimulation encourages followers to think creatively about how to realize the vision, and individualized consideration helps each person grow into roles that support it. For example, a CEO who lives the company’s values, communicates a compelling purpose, invites employees to challenge existing processes, and personally mentors high-potential staff is using all four I’s.
2. Transformational leadership has been praised for its positive influence on innovation. What mechanisms enable this approach to promote creativity within organizations?
Transformational leaders: (1) create a vision that values experimentation; (2) provide intellectual stimulation by questioning assumptions and encouraging new perspectives; (3) build psychological safety so people can share unconventional ideas; and (4) offer individualized consideration that supports learning and risk-taking. Together these mechanisms increase intrinsic motivation and the flow of creative ideas.
3. Explain how transformational leadership differs from transactional leadership in terms of follower motivation and engagement.
Transactional leadership motivates mainly through extrinsic rewards and punishments (e.g., meeting targets, avoiding errors). Transformational leadership appeals to intrinsic motives by connecting work with values and identity, inspiring followers to go beyond minimum requirements. As a result, transformational leadership tends to generate higher engagement, discretionary effort and commitment to the mission rather than just to specific transactions.
4. Critics suggest that transformational leadership can be misused to manipulate followers. Under what circumstances might this occur, and how can organizations guard against it?
When leaders have strong charisma but weak ethics, they may use vision and inspirational communication to serve their own interests rather than the organization or society. This can lead to cult-like followership or unethical decisions. Organizations can guard against misuse by: (1) emphasizing integrity and accountability; (2) encouraging dissent and checks and balances; (3) promoting shared leadership; and (4) embedding ethical standards into culture and governance.