TRANSFORMATIONAL LEADERSHIP -
THE KEY TO SUCCESSFUL MANAGEMENT
OF TRANSFORMATIONAL ORGANIZATIONAL CHANGES
Faculty of Economics, University of Niš, Trg VJ 11, 18000 Niš, Yugoslavia
Abstract. Transformational leadership represents the essential quality for successful
management of transformational organizational changes. It is about the quality that, in
fact, so-called transactional management has missed to bring to an end of the
transformational cycles with efficiency. In that sense, the success in realizing
transformational organizational changes means that the key people in an organization
(managers) develop sets of appropriate skills and attributes that ...view middle of the document...
year latter (1986) Noel M. Tichy and Marry Anne Devanna published a book under the
title "The Transformational Leader" (2). Research projects, doctor disertations and books
in the field of transformational leadership have been carried out and published in the
initial phase of the transformational leadership concept development and, especially in
recent years, have contributed to the development of the most actual leaders' concept.
The most intensive interest in the transformational leadership concept is the result of,
at least, two tendencies. First, most large western companies, like AT&T, IBM, GM, etc.,
ventured into transformations, comprehensive have changed programs which had to be
realized in relatively short time (3, p. 489). Namely, since World War II till the 70's, the
business climate in most western countries, and especially in the USA, offered such
degree of stability that most firms did not feel the need for a change, and for leadership
as a force, which led the change. However, after 25 - 30 years of relatively slow growth,
in the 70's, and especially in the 80's the business world became very much dynamic,
more competitive and less stable. Fast technological changes, great international
competition, commercial deregulation, too much capacity in capital intensive industries,
unsteadiness of oil cartels, demographic labour changes etc., are some of the factors
which brought to such a state. Until then, many successful organizations faced with a
crisis and a need of radical change in their business way.
Second, leadership theoretic base which rested on the analyzing personal
characteristics of leaders (theory of leader personal characteristics), behaviour of leaders
(behaviouristic theory of leaders) and different situations (contingency theory of
leadership), did not take in consideration some "untypical" qualities of leaders of those
days. These "new" qualities required a new theory, or a new leadership concept. The
transformational leadership concept is in question.
Transformational leadership rests on the bases of transactional leadership. However,
as Jamer McGregor Burns states "... what today is needed is not the old style of
transactional leadership, but the new style of transformational leadership" (2). Barnard
M. Bass compares these two styles of leadership, giving their closer terms of reference.
According to Bass, transactional leaders predetermine what their followers should do to
realize their personal and organizational aims; they classify these aims and help their
followers to become more self-confident in order to achieve their goals with the
minimum effort. On the contrary, transformational leaders motivate their followers to do
more than they really expect they can do, increasing the sense of importance and value of
the tasks, stimulating them to surpass their own interests and direct themselves to the
interests of the team, organization or larger community and raising the...