Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance.

Abstract

The authors used measures of leadership, locus of control, and support for innovation to predict the consolidated-unit performance of 78 managers. Results revealed that 3 transformational-leadership measures were associated with a higher internal locus of control and significantly and positively predicted business-unit performance over a 1-year interval. Transactional measures of leadership, including contingent reward and management by exception (active and passive), were each negatively related to business-unit performance. Causal relationships between the transformational-leadership behaviors and unit performance were moderated by the level of support for innovation in the business unit.

The Effects of Transformational Leadership in Chinese Family Business How Should Family Business Lead Their Family Employees?

“…They deeply admire, respect and trust these leaders, and thus identify with the leaders and want to imitate them. Under such leadership, followers have a vision and a sense of mission [19,21]. Inspirational motivation occurs when leaders motivate and inspire those around them by providing challenges and meaning to their work.…”

“…Specifically, Bass [6] described transformational leadership as leader behaviors that stimulate and inspire followers to achieve extraordinary outcomes by raising the level of motivation and morality in both themselves and their followers. Transformational leaders are effective in promoting organizational commitment by aligning goals and values of the follower, the group, the leader, and the organization [10,12,21]. Its strong, positive effects on followers" attributes and commitment will then motivate followers to reach their fullest potential and exceed expected performance [11].…”

Effects of transformational leadership training on attitudinal and financial outcomes: A field experiment.

“…Second, where transformational leadership is enhanced, subordinates' commitment to the organization would change (e.g., Koh et al, 1995;Mathieu & Zajac, 1990). Third, if transformational leadership is enhanced and subordinates' commitment to the organization increases, financial performance of the unit in question may be enhanced (Howell &Avolio, 1993).…”

The Impact of Effective Leadership Practice on Organizational Performance and Growth of State Owned Banks in Ghana: The Case of National Investment Bank, Ghana

“…According to Mullins [13] giving a fair impression of what has to be achieved enables staff to have a clear vision of achievable goals. In the opinion of Howell and Avolio [23] demonstrating to subordinates what needs to be done presents the kind of confidence that employees require to accomplish jobs. Other very positive features of leadership quality relate to how supervisors and managers communicate to their team member how they feel about performance of the group.…”