Transformational leaders and their followers ‘raise one another to higher levels of morality and motivation’ (Burns, 1978). Such leadership ‘builds on man’s need for meaning’ and ‘creates institutional purpose’ (Peters and Waterman, 1984, p.82).
Transactional leaders ‘exchange things of value with the followers to advance their own and their followers’ agendas’ (Kuhnert, 1994 in Northouse, 2019). They do not ‘individualise the needs of followers or focus on their personal development’ (Northouse, 2019).
Steve Jobs showed provocative transformational leadership when trying to recruit John Sculley, CEO of Pepsi, asking him: ‘Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?’ (Inbimbo, 2009)
Henry Ford’s leadership was transactional in that he used money as the sole motivator for workers. He believed that ‘paying good wages is not charity at all – it is the best kind of business’ (Ford, 1922).
Burns, J.M. (1978) Leadership. New York. Harper Row.
Ford, Henry; Crowther, Samuel (1922), My Life and Work, Garden City, New York
Imbimbo, A. (2009) Steve Jobs: The Brilliant Mind Behind Apple: The Brilliant Mind Behind Apple. Gareth Stevens Publishing LLLP.
Northouse, P.G. (2019) Leadership: Theory and practice. London. SAGE Publications, Incorporated.
Waterman, R.H. and Peters, T.J. (1982) In search of excellence: Lessons from America’s best-run companies. New York: Harper & Row.
