Transformational leadership

So if we accept that transformational leadership is now the way to go, but by this we mean that we need to have aspects of transactional leadership too, then let's explore this in more detail.

In the simplest terms, transformational leadership is a process that changes and transforms individuals. In other words, transformational leadership is the ability to get people to want to change, to improve, and to be led. It involves assessing employees' motives, satisfying their needs, and valuing them. Therefore, a transformational leader could make the company more successful by valuing its employees

(Northouse, 2001: 7)

flickr/ CC BY 2.0

One such example is Sam Walton, founder of Wal-Mart, who often visited Wal-Mart stores across the country to meet with employees to show his appreciation for what they did for the company. Sam Walton gave "rules for success" in his autobiography, one of which was to appreciate 'associates' (employees) with praise (Walton, 1996).

Interestingly though, Wal-Mart has a particularly poor reputation these days in terms of how it treats its employees.

Michael Moore, the American comedian and film writer and director, and political activist, is a HUGE fan of Wal-Mart (she said sarcastically ;-)). Check out his website at: http://www.michaelmoore.com/