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Transformational Leadership - transform the organization in fundamental ways

Transformational leaders are mainly concerned with change, the needs of followers, and helping followers look at old problems in new ways. They are able to excite ,arouse and inspire followers to put an extra effort and transcend their own self interest to achieve group goals.

Transformational and transactional leadership should not be viewed as opposing approaches. Transformational leadership is built on top of transactional leadership producing performance that goes beyond what would occur with transactional approach alone.

For bringing major changes, transformational leaders must exhibit the following four factors:
Inspirational Motivation
Intellectual Stimulation
Idealized Influence
Individualized Consideration

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INFORMAL LEADERSHIP: process of influencing others to pursue unofficial objectives.

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