Effects of Transformational Leadership in Individual Performance

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Transformational leadership theory is defined as inspiring followers through “broadening and elevating followers’ goals and providing them with confidence to perform beyond the expectations specified in the implicit or explicit exchange” (Shin and Zhou 2003, as cited in Dvir, Eden, Avolio, & Shamir, 2002). This paper intends to focus on the effect that transformational leadership has on individual performance.

Dvir et al (2002) observed the Israel Defense Force and hypothesized that transformational leadership positively impacts follower performance, as well as a positive impact in: motivation in self actualization needs and extra effort, morality regarding their organization’s morals and collectivistic orientation, and empowerment in terms of critical independent approach, active engagement and specific self efficacy. Applying transformational leadership is hypothesized to positively impact creativity (Shin and Zhou, 2003). This relationship is also hypothesized to be mediated by intrinsic motivation, as transformation leadership evokes intrinsic motivation in a follower, which fosters more creativity (Shin and Zhou, 2003). A follower’s attachment to the value of conservation is hypothesized to impact the intensity between the transformational leadership and creativity relationship (Shin and Zhou, 2003). Lastly, Shin and Zhou (2003) propose that this new relationship between transformational leadership, creativity and conservation are mediated by intrinsic motivation. Shin and Zhou (2003) used reputable surveys, such as the Multifactor Leadership Questionnaire (Shin and Zhou 2003, as cited in Bass & Avolio, 1995), and surveyed a random sample of employees working in the research and development department in both large and small Korean companies. All hypotheses of this experiment were proven to be conclusive, as statistically data showed a positive correlation between transformational leadership and creativity, which was mediated by intrinsic motivation...
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