Abstract
Transformational leadership theory is an essential topic in management research. This style of leadership requires a leader's ability to identify and observe the psychological needs and values of followers, as well as to stimulate work motivation. Transformational leadership is characterized by four groups of factors: individualized consideration, intellectual stimulation, inspirational motivation and charisma or idealized influence. The role of a transformational leader is motivational in nature. Within the theory of self-determination, the authors emphasize the importance of the basic psychological need for relatedness with others, the feeling of personal competence and autonomy in performing a given behavior. Recent research has shown that perceived transformational leadership contributes to meeting the basic psychological needs of employees. Satisfying each of these needs directly impacts positive outcomes and achievement of organizational goals. The most commonly reported positive outcomes include trust of employees in the organization, positive feedback from managers, belief in one’s own ability to contribute to the organization, recognizing opportunities for progress, feeling of security, job satisfaction and a high level of enthusiasm for work. Transformational leadership facilitates the adoption of common motivational principles in the organization, empowers managers and gains the support of followers in their efforts to build a strong and stable organizational culture.
Highlights
In the competitive world with turbulent changes within the business environment, it is vital that organizations hire leaders who enable organizations to survive and thrive
If we look at the effects of transformational leadership from a self-determination theory perspective, we conclude that transformational leadership contributes to meeting the needs of employees
Meeting each of these needs directly refers to the perception of positive outcomes by employees and management
Summary
In the competitive world with turbulent changes within the business environment, it is vital that organizations hire leaders who enable organizations to survive and thrive. As opposed to transformational leadership, transactional leadership is a more conventional approach that involves use of rewards, focusing on norms and monitoring employee behavior. This leadership style is characterized by corrective criticism, negative feedback, and negative reinforcement. The leader ensures understanding and acceptance of the group purpose and mission used to encourage employees to take into account what is good for the group, apart from their personal needs and interests Such leaders give their associates a feeling of purpose that goes beyond a simple exchange of rewards for the effort made.
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