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38). The transactional leadership theory involves exchange between labour and rewards while the transformational leadership theory is mainly based on placing concern for intellectual stimulation, employees and offering vision to a group (Bass, Avolio and Atwater 2006, p. 99). James Macgregor Burns, who was a leadership expert, introduced transformational leadership theory concept. According to him, transformational leadership is manifested in a situation where a leaders and followers lead to the advancement of one another in motivation and morality (Bass and Riggio 2006, p. 64). A transformational leader uses different mechanisms to improve performance, morale and motivation of his followers.
The mechanisms include being a good role model to followers which inspires them, having a connection to the followers’ self-identity, striving to understand weakness and strength of the followers and challenging followers to have more ownership of the business(Bass, Avolio and Atwater 2006, p, 94). Transformational leaders, foster moral values of loyalty, honesty, and fairness and at the same time they preserve end values of equality, justice and respect to human rights (Yates 2012, p.53). Transformational leaders have strong character and vision.
This power helps them inspire their followers to change the perception, motivations and expectations to work toward the set purpose (Yukl 2009, p.28). The transformational leadership theory is based on the leadership trait;character and ability to bring about change through energized vision, articulation and challenging goals. For a leader to be considered transformational, he must be idealized in the sense that he is a moral exemplar of striving toward benefits of an organization, a team or a community (Sanders, Hopkins, and Geroy 2013, p. 21-31). The impact that the leader has on his followers’ performance and motivation is what determines
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