Transformational leadership has been in existence for centuries. But the term as it is used now in organizational leadership was introduced by James McGregor Burns in 1978. A transformational leader leads people through his charisma of personality. Charisma here doesn’t have a specific definition, it can be experienced only that builds an aura around the personality of the leader.

People believe him and feel emotionally attached to his ideals. He sees beyond what is in the sight and builds his plan around that.The leader has inspirational motivation which gives his team a constant source of inspiration to overcome difficulties that come by on the way to the ultimate goal. Personally the leader shows inexhaustible energy expanding beyond physical strength.

Transformational leaders show flexibility and continuously adapt themselves to situation in contrast of the leaders who break but don’t bend. Transformational leadership comes more through inspiration and clarity of vision than training.However, it has also been found that transformation leadership can be taught, but certainly not to every leader. Transformational leaders devise their own tools and parameters of success and have staunch belief in them. Then they make people believe in those means.

Theodore Roosevelt, Mahatma Gandhi, Nelson Mondela, John F kennedy have been such leaders. A known recent example from the corporate world is Robert Iacocca who, sacked by Henry Ford committed himself to a new challenge at the age of fifty two, lifted Chrysler from bankruptcy to profit by the sheer power of his commitment.Mahatma Gandhi started his career as an unsuccessful lawyer in South Africa. When he was thrown out of a first class rail compartment by an English guard, he decided to overthrow the British from India. On his return to India the contemporary leaders made fun of him and doubted his theory of non-violence.

But he remained committed. Gradually the masses started orienting towards him. People left jobs, spun cotton thread to weave their own clothes and practiced non-violence.In 1947, India became the first British colony to be liberated that too through a bloodless transformation.

The main difference between the transactional theory and transformational leadership is that in the latter, people volunteer to follow willingly to achieve the goal thereby creating group effectiveness.. “Transformational leaders move followers to transcend their own self interests for the group, organization or the country” (Bass, 1997 p133)In transformation leadership theory, individualized consideration is the degree to which the leader attends to each followers needs, acts as a mentor or coach and listens followers’ concerns and needs. (Bass, 1985) Transformational leaders seek transform which sometimes the organizations may not be prepared to experiment with.

More often than not, these leaders exhibit enough promise succeed than fail. A more critical examination of the fact that how far Transformation Theory works for individual organizations is yet to be done at research level.