For many, the concept of transformational leadership is difficult to understand. Numerous researchers have defined it as a leadership theory and leadership style. One definition of transformational leadership is “the process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower. This type of leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential” (Northouse, 2016, p. 162).
Sir Richard Branson is a commonly cited example of a transformational business leader. Branson’s entrepreneurial efforts began in the music industry and then expanded to numerous industries, including the Voyager Group travel company, Virgin Atlantic Airline, and Virgin Galactic, a space-tourism company. He changed perceptions of entrepreneurial possibilities and empowered other business leaders.
To prepare for this Discussion, do the following:
- Consider the difference between transactional and transformational leadership.
- Identify two well-known business leaders from the scholarly literature or personal experience, including one who exhibits transactional business leadership behavior, and one who exhibits transformational business leadership behavior.
- Note: Your transformational business leadership example need only satisfy one of the functions of transformational leadership as outlined in the course text.
By Day 3
Post an evaluation of the effectiveness of transactional and transformational leadership in business. In your evaluation, do the following:
- Describe two well-known business leaders who respectively exhibit transactional and transformational business leadership behavior, and explain how each business leader exemplifies the identified type of leadership.
- Explain whether you believe that transformational leadership is the most effective type of business leadership and why. Be sure to include specific examples, if any, in which transactional leadership might be more appropriate.
- Describe any potential negative consequences of transformational leadership.
Be sure to support your work with a minimum of two specific citations from this week’s Learning Resources and one or more additional scholarly sources.
Latham, J. R. (2014). Leadership for quality and innovation: Challenges, theories, and a framework for future research. Quality Management Journal, 21(1), 11–15.
Northouse, P. G. (2016). Leadership: Theory and practice (7th ed.). Thousand Oaks, CA: Sage.
- Chapter 7, “Leader–Member Exchange Theory” (pp. 137–160)
- Chapter 9, “Authentic Leadership” (pp. 200–224)
- Chapter 10, “Servant Leadership” (pp. 225–256)