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Introduction

Transformational leadership concept was initially introduced by James MacGregor Burns (1978) and then extended by Bernard M. Bass in 1985. It was defined as “the process through which leaders and followers help each other to advance to a higher level of morality and motivation” (Burns, 1979:21). Thus it means that both leaders and followers can identify themselves but not only can the transformational leader motivate subordinates’ attitudes and behaviours.

This short essay is aimed at discussing the relationship between transformational leadership and subordinates’ performance according to variety research literature and surveys from experts.

Transformational leadership and subordinates’ performance

When talking about leadership, two fundamental forms are involved. The first one is transactional leadership which works by give-and-take exchange process but research on this kind of leadership has been somewhat disappointing because theses leader behaviors have not accounted for as much of the variance in performance (Scott et al., 2001:116). The other one is transformational leadership which requires a leader to share vision of the future, intellectually stimulate subordinates, provide a great deal of support to subordinates, recognize individual differences, and set high expectations (Kirkman et al., 2009:744). Arguments among experts about which leadership is better never stop and this essay will focus on why and how transformational leadership influences subordinates’ performance according to three of the 4I’s.

2.1 Why influence

2.1.1 Individualized consideration

Individualized consideration directly treats the subordinates on a one-to-one basis but not just members of a group. According to exchange theory (SET) (Blau, 1964) which indicates that the series of interactions that can occur between two parties (e.g. the manager and followers) will usually create obligations from one party to another. Therefore, a party is likely to reciprocate according to the SET (Mario et al., 2013:536). It is obvious that when a leader concentrates on his subordinates, he can easily identify what they really need from their daily work, respond to their demands and show care of individual differences. Consequently, followers will be motivated and crystal clear about their strength and weakness so that they can improve themselves.

2.1.2 Idealized influence

Idealized influence makes subordinates be exceptional, confident and trustworthy. It acts as ethical role model and builds loyalty for leaders without much consideration for their own self-interest. Followers strive to emulate their transformational managers because they act in ways that allow them to serve as role models for their subordinates (Bono and Judge, 2003). That means when leaders set themselves as examples for their subordinates, subordinates will be less likely to oppose the changing proposals and would like to carry out the more difficult tasks. Under the circumstances, subordinates are willing to do the job beyond their own self-interests and make a better contribution to the group. As a result, they will enhance their value to the group and be fully engaged in work.

2.1.3 Inspirational motivation

Inspirational motivation makes leaders articulate visions and share goals to followers with optimistic attitude. Supervisors who use verbal persuasion and emotional appeals act as a powerful source for motivating subordinates effort, therefore developing a sense of identification in subordinates with their work unit (Piccolo and Colquitt, 2006:329). Thus, inspirational motivational behavior can cheer followers up and make them full of energy so that it influences subordinates’ performance emotionally.

2.2 How influence

2.2.1 Individualized consideration

Behaviours related to individualized consideration include spending time in teaching and coaching, helping others develop their strengths and listening attentively to others' concerns (Bass and Avolio, 1994). That means the leader should concentrate on a one-to-one relationship with all the team members. He should listen to the subordinates’ voice and try to find what they really want so that he can appeal to their needs. Also, individualized consideration can enhance the communication between leaders and followers so that they can show better understanding of each other. When thinking from the others’ angle, less misunderstanding will be caused and subordinates will perform efficiently. Therefore, the leader should talk to their subordinates periodically to find out if they have any problems or suggestions and care more about them to learn their needs and feelings.

2.2.2 Idealized influence

Idealized influence behavior requires a leader to talk about his most important values and beliefs to his subordinates so that they can be associated with him. Thereby, the behaviour in the transformational leadership style is like a role model that leaders build loyalty and devotion without much consideration for their own self-interest (Shelley et. al., 2004:183). In this way, subordinates will be less likely to oppose the changing proposals and would like to carry out the more difficult tasks. In this context, subordinates perform effectively and are energized to sacrifice and move beyond their own self-interests to make a better contribution towards organizational performance (Mario et al., 2013:535). According to this behaviour, leaders act as ethical role models as well as communicate mission and values to their subordinates to make the subordinates fully engaged in their work.