Transactional vs. Transformational Leadership Definition [Starting at 3:52] DR. JIM DITTMAR: So, what are the particular is about transformational leadership and Bass identified four components if you think about them as the four I's, the letter I, each one starts with the letter I and two for Bass the transformational leader is someone who expresses these four I's. The first one is idealized influence; idealized influence is this notion that you behave in such a way as a leader that other people want to emulate that. The phrase that was very popular some years ago you know "I want to be like Mike" is idealized influence, it was the influence, the impact, that Michael Jordan had on people was such that, you know, kids want to aspire to be just like Mike. And so you have a person a leader in an organization situation that really reflects behaviors and attitudes and perspectives that you resonate with tremendously and you see modeled by this person, and so you aspire you say you know that's the kind of leader that I want to be someday. The second I is something that is called inspirational motivation. Now in the first case, you might think this this going back to idealized influences is someone who has charisma, and someone who has kind of that influence. Inspirational motivation has to do more with an individual who can inspire certain behaviors, certain actions, it's somebody who comes along and says you know, "I have a vision" or "we have a vision as an organization that is just you know tremendous" and "we're going to make, we're going to achieve that vision and this is how we're going to do it" you know it's sort of passionate, inspiration, and motivational kind of speech and behavior that's inspirational motivation and that's what the transformational leader does as well. So the transformational leader provides idealized influence, number one, that's sort of modeling that that other people want to aspire to but also, in the second I, inspirational motivation. The leader inspires, the leader motivates, the leader is passionate about what the organization is about and and because of that, other people say yes, yes I want to be part of that vision. Now the third factor is called intellectual stimulation and this is a, this is a behavior within transformational leadership in which the leader recognizes the fact that people have something to say. People have talents, and abilities, and knowledge, and and can contribute to the achievement of the goals of the organization. And so the leader in that case, comes into a room and doesn't say, "this is what we're going to do" but says "what do you think we should do in this case? Let's think outside the box. I want you folks to get creative, I want you to come up with ideas, maybe we need to or we'll have to take a risk, but you know we're going to. It's going to be a calculated risk but but let's do it." And so you get a sense of being empowered, and you feel like wow, I really have a stake in this organization. I have something to say, my opinion is valued. That's what the transformational leader does when he or she considers the the intellect, the abilities, the knowledge, of the people that they work with. So intellectual stimulation is the third factor. The final of the four I's, the fourth factor is individualized consideration. Now in this case, the leader is really interested in knowing the individual. What kind of skills, what kind of talents, what kind of assets does the person bring to the table so to speak and putting people in a position within the organization where they can succeed. You know, utilizing these strengths. It also refers to knowing what's going on in life of the employee, where there may be issues or problems or things that are going on that are affecting performance. It's just this idea that of acting like a coach, you know, where you are, where the leader is very aware of what's going on with the person and tries to--the best possible way--be sensitive to those, support them, and help work through them. So these are the four I's. These are the fundamental components of transformational leadership. Again, they are idealized in influence, inspirational motivation, intellectual stimulation, and individualized consideration. If you think about the four I's, you won't forget what transformational leadership means. Now also on the end of the continuum, way way way way, if you can go far away from transactional, transformational, is this idea of laissez-faire leadership, which vast and others refer to. And that means someone who is just completely hands-off. Doesn't do anything really in terms of interacting and working with people. We don't want to be laissez-faire leaders that's for sure, but let me say this. The transactional leadership should not necessarily be seen as a bad thing. There are times when we need transaction. We need transactional leadership if the, you know, the buildings on fire and I say, "Get out of here right now," and listen to me, and do it, and you as a result your life will be saved. That's transactional leadership and you need that. You don't need transformational, you don't need to consider each one's needs as they're running by you to get out the door, it's "let's get outside right away." And so think of it again as this continuum vast, always wanting us to become more transformational, and understand that and become more of that kind of leader, but also knowing that there may be situations in which we have to go back and forth on the continuum and become more transactional based on the situation. So, an important leadership model that you can read about in North House and it's something that's fundamental as I said, in understanding other leadership models to come, thanks very much.