Impact of transformational leadership in organizations

By on May 3, 2012

The impacts created by transformational leaders on an organization are at most of the times positive and beneficial to it (Jung, Chow and Wu, 2003). They turn adversely in very rare situations. Since transformational leaders possess extra ordinary characteristics, an organization with a transformational leader in it is said to be very fortunate.

Organization, which is usually surrounded by politics both from internal and external sources, can have the effect of that politics or conflict minimized with the presence of transformational leaders. Transformational leaders are great relationship builders. Their friendly approach towards others helps in reducing organizational politics to a significant extent. Their focus cwork environment (Walumbwa, Avolio and Zhu,s 2008).

In today’s dynamic environment and changing demands of people, there must be someone, in an organization who can take quick decisions in order to keep its customers, stakeholders, suppliers and employees happy and satisfied. Only a transformational leader can do it. A transformational leader has the ability to forecast the future and to take an appropriate decision without affecting anyone (Howell and Avolio, 1993). Their extraordinary skills and effective decision making approach reduces problems an organization would encounter in uncertain conditions, to a great extent. Their journey towards organizations’ vision and mission help it in staying aligned with its goals.

On the whole, people who exhibit transformational leadership are considered as a boon to any organization irrespective of its structure, culture, size, technology and core competency. It is hence recommended for any organization to hire at least one individual with extra ordinary leadership qualities in order to perform well in the changing markets.


  • Walumbwa F O, Avolio B J and Zhu W (2008), How transformational leadership weaves its influence on individual job performance, Personnel Psychology Book, pp 793-825, UK.
  • Howell J M and Avolio B J (1993), Transformational leadership, transactional leadership, locus of control and support for innovation, Journal of Applied Psychology, pp 891- 902, USA.
  • Jung D I, Chow C and Wu A (2003), The role of Transformational Leadership in enhancing organizational innovation, Corwin Press, New Jersey