General Electric was composed of one hundred business, before Jack Welch became the CEO. When became the CEO he streamlined the organization by...

The concept of transformational leadership was first introduced in 1978 by James McGregor Burns. It is kind of leadership that creates desirable changes in followers. The changes lead to followers helping and supporting each other in the process of achieving the goals of organization.

Burns differentiated transformational leadership from another type of leadership he called transactional leadership, which is not based on give and take relationship between the followers. Transactional leadership is based on leaders personality, traits, and abilities to make changes using personal visions and goals.

Transformational leadership is based on four elements of leadership as described below.

1. Individualized consideration: The degree to which the leader is able to appreciate needs and traits of each follower and act as mentor and coach to them.


2. Intellectual simulation: The ability to challenge existing ideas and assumptions and to develop creativity among followers.


3. Inspirational Motivation:Ability to articulate vision and to motivate followers towards achieving it that leads to higher standards of performance and more optimistic attitudes.


4. Idealized influence: Ability to provide vision and sense of mission and instill pride. Also ability to gain trust and respect of followers.