International Journal of Commerce and Management Studies (IJCAMS), ISSN

2456-3684
Vol.01, No.02, 2016

Transformational Leadership: Its Influence

on Employee Motivation

Author 1
Dr. Rahul Kharabe
Assistant Professor
Department of Business Management
Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur.
Mob 9326851333
Email - ​[email protected]

Author 2
Mr. Jonathan Joseph
Assistant Professor
Department of Commerce, Management and Computer
Hislop College, Nagpur
Mob 9665810350
Email – ​[email protected]

Abstract employees may resist certain transformational

behaviors such as intellectual stimulation and
Transformational leadership has been admired by individualized consideration seeing them as
many leaders because of its supportive, productive ineffective.
and innovative nature. It has placed a positive impact
on employee motivation.

At the same time there is accumulating evidence that Keywords: ​Transformational leaders, Employee

indicates a positive relationship between motivation, components, competencies, effects of

transformational leadership and employee transformational leaders

motivation. Also, there is compelling evidence that

indicates a negative link between the two variables.
1. Introduction
In certain conditions, other styles of leadership may
be preferred over transformational leadership and
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
2456-3684
Vol.01, No.02, 2016

For the last decade, it has been observed that Individualized Consideration and Intellectual
transformational and charismatic leadership measured Stimulation. Inspirational Motivation involves the
very critical aspects of leadership, which is highly need of leaders to followers for achieving goals
associated with individual and organizational through describing the goals in attractive and
performance as well. Effectiveness of leadership compensating manner, which motivate employees.
measures the ability of leaders to provoke the Idealized influence shows being a role model in front
followers. of employees and ready for sacrifices for the good of
a complete group. Leaders have a high level of
ethical conduct and do anything for the team.

towards the collective goals. Researchers who have Individual Consideration includes attention,

examined transformational and charismatic encouragement and aid of leader to followers.

leadership they must include the motivational effect Intellectual Stimulation come to the end that leader

in their study. enable the followers for probing the problems in a

new way that is easy and creative. Fig 2 describes
(Shamir, House, & Arthur, 1993). The theory of this phenomenon.
leadership as shown in fig 1 narrates the few
qualities of transformational leaders. Organizations perceived organizational commitment
as one of the factors for the success of the
organization. In order to run the organizations
smoothly, effectively, and efficiently, the most
valuable and indiapensable factor
organizationsmneed is the human resource
(Mosadeghrad 2003). According to it a well qualified
and capable personnel are major factors in context of
achieving goals and objectives of an organization. It
states the success of an organization depends on the
hardworking, loyal, and involved managers and
employees.

Altimately, it states leaders have the means and

powers to running organizations, their impact on
Fig 1 Leadership Theories employees is significant and their leadership style
plays a vital role in shaping employees’ attitudes in
As per Bass and Avolio (1994), there are four
regards with creativity, job performance and
dimensions of transformational leadership that are
Idealized Influence, Inspirational Motivation,
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
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Vol.01, No.02, 2016

satisfaction. As such, leadership plays a major role in employee motivation. The fact is that when leaders
employee performance and motivation. engage in inspirational behaviours like articulating a
compelling vision, optimism and expressing
confidence, referencing core values and emphasizing
on collective identities; employees become more
motivated and they set more value-congruent goals
and remain committed to their organization (Grant
2012).

In spite of that, transformational leadership does not

always enhance employee motivation. There is
emerging evidence that show inconsistent effects on

Fig 2 4 I’s of Transformational Leadership employee motivation and job satisfaction (Grant
2012). At the same time, there is accumulating
Among the different types of leadership styles, evidence that indicates a positive relationship
transformational leadership has attained more between transformational leadership and employee
popularity and attention, perhaps because of its motivation, there is also compelling evidence that
productive, supportive and innovative nature (Shah ​et indicates a negative link between the two variables.
al. 2011). Literature on transformational leadership In this paper, we critically explore the motivational
has identified important positive effects on employee effects of transformational leadership on employee.
motivation. Several authors have observed in their The paper starts by exploring on the concept of
study that transformational leadership style improves transformational leadership.
employee motivations and increases their
commitment to the organization. 2. Transformational leadership style

For an instance, a study conducted by Avolio ​et Transformational leadership is a style of leadership
al. (2004), on the effect of transformational that involves leaders utilizing their power, knowledge
leadership on motivation and performance of nurses and experience in meaningful ways, such as
in a public hospital of Singapore showed a positive providing support, advice and engaging with
relationship. Similarly, study Limsili & Ogunlana employees in friendly communication and
(2008) and Ismail & Yusuf (2009) also observed discussions. Also, transformational leaders seek to
remarkable positive relation between change employee goals, needs, identities, values,
transformational leadership and employee priorities and ambitions with the aim of boosting their
motivation. Several other studies have appeared with trust and confidence that would allow them to boost
the same conclusions on the validity of the their performance and commitment to the
relationship between transformational leadership and
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
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Vol.01, No.02, 2016

organization. Through such social, responsive and The result of transformation leadership on employee
pleasant attitudes, transformational leaders could performance appears from development and
facilitate and encourage employees to effectively empowerment, which is observed to boost the
utilize their experience, skills, and knowledge in the subordinate’s ability and motivation. The
organization (Shah ​et al. 2011). Fig 3 explains the philosophical approach to this style of leadership
components of transformational leadership. includes empowering employees and increasing their
organizational commitment. In such a way
transformational leaders, state a vision that empowers
employees and engages them to contribute to the
organization. They emphasize the prosocial effect of
the vision and struggle to motivate the employees to
transcend their own self-interests for the purpose of
the big organization (Bushra ​et al. 2011)

As pointed out by Bass & Avolio (1995),

transformational leadership style is defined by four
key aspects are inspirational motivation, idealized
Fig3 Employee motivation through influence, intellectual stimulation and individualized
transformational leadership consideration. Inspirational motivation significantly
includes the articulation and sharing of an attractive
vision with the employees and use of emotions to

Bernard M. Bass, Ronald E. Riggio stated in their demonstrate optimism and enthusiasm. Idealized

Transformational Leadership that Transformational influence includes setting a lead example by

leaders inspire others to do more than they originally sacrificing certain aspects for the benefit of the team

intended and even more than they thought possible. or organization.

They create more challenging expectations and

Individualized consideration includes the provision of
typically attain higher performances. Also,
encouragement and support to the followers.
Transformational leaders tend to have more
Intellectual stimulation refers to transformational
committed and happy followers. Additionally,
behaviours that increase the awareness of employees
transformational leaders empower followers and pay
of the problems facing them and challenges them to
attention to their individual needs and personal
view their problems from new perspectives (Kark &
development, helping followers to improve their own
Shamir 2003). These transformational behaviours
leadership potential.
essentially impact upon employee motivation and
performance.
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
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Vol.01, No.02, 2016

For instance, when an inspirational message is sent Fig 4 Competencies of Transformational Leader
by a transformational leader, several needs in
Transformational leaders encourage employees to
subordinate employees may become activated and if
develop their abilities through intellectual
employees are able to satisfy their activated needs,
stimulation, thereby enhancing their innovative and
which causes in increased motivation to perform at
creative capabilities. Moreover, by engaging in
work (Porter ​et al. 2003). In addition, by articulating
individualized consideration, transformational leaders
and sharing an inspirational vision with employees,
represent themselves as mentors and effective
transformational leaders improve employee
listeners, emphasizing on individual employee
understanding and enhance their ability to critically
requirements and working towards meeting those
explore a situation (Mayfield & Mayfield 2012).
needs. Such transformational behaviors help improve
Also, there is a positive effect of transformational the low levels of employee motivation.
leaders on employee motivation through leading by
Thus, Transformational leaders help increase
example and highlighting the importance of having a
employee awareness about the importance and values
strong sense of purpose (idealized influence) (Grant
of goals and objectives; and notify them on the ways
2012).When the transformational leader expresses a
to fulfilling those objectives (Porter ​et al. 2003).
vision in an idealized manner and when they
Transformational leaders also permit employees to
challenge the status quo; the employees are also
participate in the decision making process, which
challenged to reflect on the same vision and to
effects in higher organizational commitment. By
re-examine their behavior that is supporting the status
permitting them to participate in decision making, it
quo (Porter​et al.2003).
leads to more empowered and motivated employees.
Fig 4 highlights the impact and competancies of
Such empowerment of employees through above
transformational leader.
mentioned transformational leadership behaviors
develops a sense of responsibility and employee
commitment to the organization. Empowered
employees feel a sense of responsibility for their
work and feel more in control, thus results in their
firm commitment to the organization. Additionally,
individual considerations and the supportive attitude
demonstrated by transformational leaders results in
reduced turnovers and increased job satisfaction and
organizational commitment.
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
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So, the main purpose of transformational leadership counterparts since transformational leadership
is clearly to empower the employees, increase their characteristics are closely related to those unveiled by
performance and to assure them more committed to the feminine gender (Lopez-Zafra ​et al. 2012).
the organization. Transformational leaders could Additionally, it has been noted that women tend to
achieve this through the following: score higher in general emotional intelligence than
men.
● A clear vision that focuses employees attention in
participating to the organization Surprisingly, there are still a relatively low number of
women leaders in different organizations. The lack of
● giving them with support through their
women leaders in most of the organizations can be
knowledge, exposure and experience;
described by the gender-role congruity theory where
● delegating certain tasks to them; gender stereotyping is observed to play an important

● And building their confidence also enhancing role in preventing women from accessing leadership

their self-efficacy. positions in top working organizations

(Lopez-Zafra ​et al. 2012). There is a need for future
This kind of encouraging and communicative
transformational leadership research to solve this
approach towards the personnel helps to involve the
problem of gender. Fig 5 depicts the effects of
employees in persuasion of the organizational goal
transformation leadership on organization structure.
and to encourage them to stay committed to the
organization .

Moreover, research has recognized the significance

of emotional intelligence in improving employee
motivation in organizations. This kind of leadership
style in leaders develop emotions of leaderships
skills and their capability to identify others’
emotional expressions have marked significant
effects on employee motivation. In reality, leadership
is mostly identified more as an emotion-laden
process. And transformational leaders have emotional
Fig 5 Effects of Transformation Leadership on
intelligence as well the ability to use emotions to Organizational Structure
build leadership skills. Still, there seems to be a
Although, there is accumulating evidence that
gender imbalance on leadership positions.
indicates a positive relationship between employee
Transformational leadership literature states that motivation and transformational leadership, there is
women are more transformational than their male emerging evidence also that shows a negative link
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
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Vol.01, No.02, 2016

between the two. While the transformational enthusiastically inspired and motivated. Also,
leadership style may significantly effect on employee Charismatic leaders are observed as courageous, as
motivation and performance, which results in growth they challenge a status quo that is observed as
and empowerment of employees. It is important to undesirable.
pinpoint such influential leadership can also result in Charismatic transformational leadership behaviors
weakening and increased dependency on the leader. have been suggested to result in followers or
The implications are that the subordinate employees employees becoming highly dependent on the
become limited in their capability to perform a task leaders. Employees who perceive the
and cann’t make a decision without guidance from transformational leader as exceptional and
the leader. Psychologically, this implies that the extraordinary may end up believing on the leader for
employee motivation and self-esteem is dependent on decision making and for guidance on accomplishing
receiving recognition and approval from the tasks (Kark & Shamir 2003). This charismatic
transformational leader (Kark & Shamir 2003). On relationship can be compared with the parent-child
the contrary, an empowered person must be relationship, which implies increased dependence on
self-motivated, independent and autonomous. the leader.

In Weber's explication of the charismatic leader, It should also be noted that when individualized
House (1977) was the first to exhibit an integrated consideration is made to one group within an
theoretical framework and testable propositions to organization, it may result into hate and jealousy
describe the behaviors of charismatic leaders. House among employees in the different groups that are not
also described a complete explanation of the experiencing individualized consideration, and leads
psychological impact of charismatic leaders on to decrease in employee motivation (Porter ​et
followers. House suggested that the basis for the al. 2003).
charismatic appeal is the emotional interaction that
In addition to this “spillover” effect, transformational
appears between followers and their leader. On the
leadership can imaginably activate certain intergroup
basis of mission luluirements, charismatic leaders
dynamics that may influence either positively or
arouse followers' power, affiliation, and achievement
negatively on employee motivation. For example,
motives to achieve the leader's vision. As per the
when this kind of leadership arises in an
House, charismatic leaders set high expectations for
organizational unit collection of different groups, it
themselves and their followers, and exhibit
may bring about intergroup conflict by increasing
confidence that these expectations can be
cohesion among specific group members (Porter ​et
accomplished. Due to that House argued that these
al. 2003). Whilst transformational leadership has
leaders become role models and objects or
been observed for encouraging individuals to
identification for followers, in turn, they emulate
transcend self-interests for the advantage of the
their leader's values and ideals, also they are
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
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complete group or organization, this kind of group capacities to perform at peak levels, it can be
coherence are potential antecedents to intergroup stressing (Humphrey 2012). As a result, contrary to
inequality and disagreement, with such conflict the commonly held outlook, the positive relationship
escalating with an increase in cohesion (Porter ​et between employee motivation and transformational
al. 2003, p.271). leadership may have a short-term effect. This
leadership style may in the long run exhibit
This kind of conflicts may leads to group dynamism
minimising marginal returns.
that may either maximize or minimize employee
motivation. Feelings of solidarity may results into Criticism has also been raised because
negative stereotyping and discrimination of out-group transformational leadership style gives more focus on
members, therefore minimizing employee motivation ‘vague and distal goals’ which continues simply
in the organization (Porter ​et al. 2003, p.272). Still, rhetoric. Also, Grant (2012) argues that when
such kind of conflict may occur, besides that, articulating meaningful visions, transformational
improving employee motivation by encouraging the leaders unsuccessful to make these visions a tangible
other group members to become more focused and reality. As this kind of employees cannot be
also committed to their own group objectives. In such effectively motivated if it exists rhetoric
conditions of conflict, autocratic style of leadership is continuously.
often selected by group members and employees may
There is a need to enhance the salience and vividness
resist certain transformational leadership behaviours
of pro social impact, also need to provide followers
like intellectual stimulation and individualized
with beneficiary contacts who then establishes a
consideration as they may appear them as ineffective
credible link between the words and deeds of the
(Porter ​et al. 2003, p.272).
leaders (Grant 2012). This allows employees to
As mentioned above, the transformational leadership actually see how the articulated vision comes to life
style encourages employees to work at peak levels at to benefit others, therefore motivating them to stay
the same time bringing them into contact with each with their work and to stay committed to the
other. Most of this contact, however, may be organization (Grant 2012).
counterproductive for the employee and may lead to
demoralization. Which becomes increasingly difficult 3. Conclusion
for employees to disengage from relationships. It also
Many criticisms which have been raised above reveal
stated that they cannot regulate their personal contact
that transformational leadership does not always
with transformational leaders, they may wind up
impact positively on employee motivation. In fact, in
experiencing higher stress levels.
other conditions, employee motivation may be

Hence, such leadership takes more emphasis on the complicated through a reduction in the level of

followers individual psychological as well as physical transformational leadership behaviors. So, to simply
 International Journal of Commerce and Management Studies (IJCAMS), ISSN
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Vol.01, No.02, 2016

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