An Examination of Transformational and Transactional Leadership: A Study of Dimensions and Outcomes in Indian Context

Abstract

This study examined the outcome of transformational and transactional leadership in the Indian context. Using data from a sample of 285 managers from a large private sector organization, the study examined: (i) the dimensionality of transformational and transactional leadership; (ii) the role of these leadership variables in explaining the select outcome variables in the Indian context. Transformational leadership and the five dimensions of it were positively related to extra effort of the follower, effectiveness of leader rated by follower, follower satisfaction with leader, organizational commitment of the follower, and negative relationship with turnover intention (intention to quit) of follower. The results of the study supported the hypotheses generated based on the review of the literature. The results of hierarchical regression analysis revealed that when the transformational leadership was added as predictor to the transactional leadership, significant proportions of additional variance were accounted for in three outcome variables. The study also examined the dimensionality of transformational and transactional leadership scales; the results suggest that the two-factor Active-Passive model may be more suitable. This study provides an empirical support to the transformational and transactional leadership model in the Indian context.