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These four components are essential when it comes to transforming an
organization and empowering employees. The transformational leader has
to be quick to adapt to changes within an organization. In fact, the purpose
of effective leadership is to create positive change. Along with this, he or

she dedicates time and effort into translating the organization’s vision and
mission to each employee for purposes of motivation, inspiration, and
unifying the organization as a whole. Becoming a transformational leader
is an evolutionary process.

A considerable literature base can be found about Transformational
Leadership, and most data indicate that it tends to predict positive
outcomes for organizations in terms of things like performance and desired
organizational behavior. One of the potential problems with
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Transformational Leadership is that enthusiasm can easily be mistaken for
competency. While it is true that great things have been achieved through
enthusiastic leadership, it is also true that many passionate leaders have

led their followers into a bad place. Just because someone believes they are
right, it does not mean they are right.
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Figure 5: The Difference Between Transactional and Transformational
Leaders
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Transactional Leadership Transformational Leadership
Leadership is responsive Leadership is proactive
Works within the organizational Works to change the organizational
culture culture by implementing new ideas

Makes employees achieve desired Encourages and empowers
organizational outcomes through employees to achieve the
rewards and punishment organization’s desired outcomes by
appealing to higher ideals and
values

Tries to motivate followers by Encourages followers to transcend
appealing to their own self-interest their own interests for those of the
organization or team

53 http://www.knowwpcarey.com/article.cfm?cid=25&aid=1151.
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http://changingminds.org/disciplines/leadership/styles/transformational_leadership.htm.
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http://www.managementstudyguide.com/transactional-leadership.htm.
David Kolzow 46