poses “that represent the values and motivations, the wants and needs, the aspirations and expectations of both leaders and followers” (Burns, 1978:19). The genius of leadership lies in the manner in which leaders see, act on, and satisfy followers’ values and motivations as well as their own.
Leadership therefore can be either transaction-based or transformational. Transactional leadership typifies most leader–follower relationships. It involves a “you scratch my back; I’ll scratch yours” exchange of economic, political, or psychological items of value. Each party to the bargain is conscious of the power and attitudes of the other. Their purposes are related and advanced only as long as both parties perceive their individual interests to be furthered by the relationship. The bargainers have no enduring relationship that holds them together; as soon as an item of value is perceived to be at risk, the relationship may break apart (Burns, 1978). This point is illustrated by labor strikes resulting from a change in the terms of work. The compliance of labor with management is based on an acceptable set of transactions; when the transactions are changed, the relationship may not have much to hold it together. Burns notes that in such cases, a leadership act takes place, but it is not one that “binds leader and follower together in a mutual and continuing pursuit of a higher purpose” (Burns, 1978:20). Transactional leadership is not a joint effort of persons with common aims acting for a collective purpose, but “a bargain to aid the individual interests of persons or groups going their separate ways” (Burns, 1978:425).
In contrast, transformational leadership occurs when leaders engage with their followers in pursuit of jointly held goals. Their purposes, which may have started out as separate but related (as in the case of transactional leadership), become fused. Such leadership is sometimes described as “el-evating” or “inspiring.” Those who are led feel “elevated by it and often become more active themselves, thereby creating new cadres of leaders” (Burns, 1978:20). Transformational leadership is in essence a relationship of mutual stimulation and elevation that raises the level of human conduct as well as the aspirations of both the leader and those led, and thereby has a transforming effect on both (Burns, 1978).
Transformational leadership is achieved by the specific actions of leaders. First, leaders take the initiative in establishing and making a commitment to relationships with followers. This effort includes the creation of formal, ongoing mechanisms that promote two-way communication and the exchange of information and ideas. On an ongoing basis, leaders play the major role in maintaining and nurturing the relationship with their followers. Burns notes that, most important, leaders seek to gratify followers’ wants, needs, and other motivations as well as their own. Understanding of followers’ wants, needs, and motivations can be secured only through ongoing communication and exchange of information and ideas. Leaders