Abstract
Despite the influence of transformational and charismatic leadership theories, scholars have struggled with two major issues: why behaviors associated with transformational-charismatic leadership are often inferior predictors of performance when compared with transactional leadership, and why studies have shown that there is great variation in the effectiveness of charismatic and transformational leadership. Using two elements of goal structure, dimensions and networks, I first argue that transformational leaders influence followers to adopt qualitative goals (unspecific, distal, high in positive-affect) that increase satisfaction, while transactional leaders promote quantitative goals (specific, proximal, low in positive-affect) that increase performance yet reduce satisfaction. I then argue that specific combinations of transformational and transactional leader behaviors optimize how followers balance qualitative and quantitative goals in their cognitive goal networks, ultimately enhancing both performance and satisfaction.
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