Transformational Leadership

1. MBAA 816
Contact 1
Recent approaches to
leadership:
Transformational leadership
Prof. Dr. L.T.B. Jackson
MBA (NWU); MA (NWU); PhD (NWU); PhD (Tilburg University)
Registered Industrial Psychologist

2. Module information
1
Module code MBAD 814
Module credits 12
Module name Leadership
NQF 9
Qualification MBA
Name of lecturer(s) Prof. Dr. L.T.B. JACKSON
Office telephone 018 085 2040
Email address Leon.Jackson@nwu.ac.za
Building and Office nr K14 room G12
Consulting hours Make an appointment (e-mail)

3. Module outcomes
2
After completion of the module, the student will:
• Provide and integrate specialist knowledge to enable engagement with,
• critique current leadership research or practices, and
• practically apply a comprehensive and systematic knowledge base
• of key terms, principles and theories on leadership;
• Use a wide range of specialised skills
• in identifying, conceptualising, designing and
• the use of methods, techniques and technologies of enquiry,
• to address, complex and challenging real-world issues
• appropriate to leadership and write up a research report ;
• Design and implement a strategy for processing and managing information,
• in order to conduct a comprehensive review of leading and current research,
• use the resources of academic and professional or occupational discourses
• to communicate and defend substantial ideas that are the products of research or development, and
• use a range of advanced and specialised skills and discourses appropriate to the field of leadership,
• to communicate effectively in a multi-cultural environment and with people at different levels of
knowledge or expertise; and
• Have the capacity to operate independently and
• take full responsibility for his or her own work,
• account for leading in applying introspection and reflexivity and
• initiate processes and implement systems,
• ensuring responsible leadership
• through effective, efficient and ethical governance practices.

4. MBAA 814 2021 Work Programme
3
CLASS DATE CLASS – TOPIC PREPARATION
STUDY
SCHOOL
25 - 29
Jan
Study school 1.1: The historical development of leadership theory;
Study school 1.2: Skills, attributes and practices of leaders and EQ
Study school 1.3: Approaches to leadership research;
Prescribe literature and self-assessment
1 06 Feb Theme 1: The transactional and transformational leader Prescribe literature and self-assessment
2 20 Feb Theme 2: The charismatic leader Prescribe literature and self-assessment
3 06 March Theme 3: Moral leadership: Servant, authentic leadership and Level
six leadership
Prescribe literature and self-assessment
4 20 March Theme 4: Moral leadership: Ethical leadership Prescribe literature and self-assessment
5 04 April Theme 5: Self-leadership Prescribe literature and self-assessment
6 16 April Theme 6: The dark side of leadership Prescribe literature and self-assessment
7 08 May Theme 7: Substitutes for and neutralizers of leadership Prescribe literature and self-assessment
8 22 May Theme 8: Leading in multicultural organisations and Leading in
Africa
Prescribe literature and self-assessment

5. 1. Study unit outcomes
2. Study material
3. Introduction
4. Transactional leadership
5. Transformational leadership
6. Transactional and Transformational leadership and
– organisational and employee outcomes
7. Transformational leadership and
– employee well-being
– trust
– and self-efficacy
– Self-efficacy and well-being
8. Bias of Transformational leadership research
9. Conclusion
Table of Content
4

6. Study unit outcomes
5
• After studying this study unit, you should be able to:
1. Describe the phenomena of Transactional leadership
2. Discuss the dimensions of Transactional leadership according to the MLQ.
3. Describe the phenomena of Transformational leadership
4. What is the association between Transformational leadership and employee well-being?
5. Explain the concept of trust as well as the approaches to studying trust
6. What is the association between Transformational leadership and trust?
7. Describe what is meant by the bias nature of Transformational leadership research.
8. Explain the associations between Transactional leadership and employee outcomes
9. Explain the associations between Transformational leadership and employee outcomes
10. Use the constructs discussed in the study material and propose a model to be tested in a
research project. Provide three study objective and discuss the research methodology to be
followed.
11. Explain the link between transformational leadership and self-efficacy
12. How can we promote self-efficacy in the workplace?
13. Explain the link between self-efficacy and well-being at work.

7. Study material
6
Conger, J.A., & Kanungo, R.N. (1994). Charismatic Leadership in
Organizations: Perceived Behavioral Attributes and Their Measurement.
Journal of Organizational behaviour, 15(5), 439-452.
Jackson, L.T.B. (2017). The mediating effect of personal resources in the
relationship between transformational leadership and employee attitudes,
11th International Business Conference Proceedings, 569-590.
Liu, J., Siu, O, & Shi, K. (2010). Transformational Leadership and Employee
Well-Being: The Mediating Role of Trust in the Leader and Self-Efficacy.
Applied Psychology: An International Review, 59(3), 454-479. doi:
10.1111/j.1464-0597.2009.00407.x
Smith, B.N., Montagno, R.V., & Kuzmenko, T.N. (2004). Transformational
and Servant Leadership: Content and Contextual Comparisons. Journal of
leadership and Organizational Studies, 10(4), 80-91.

8. Where were we the last time?
Leadership: Models and Theories
• Leadership Traits
– The strong man / heroic approach
– Trait theory
• Leadership Styles and
Behaviours
– T. McGregor (1906-1964) theory X and Y
– Ohio State University Research
– University of Michigan Research
– The Leadership Grid (Blake and Mouton)
• Contingency Approaches
– The continuum of leadership behaviour
/ decision-making
– Fielder’s Contingency Model
– Path-Goal Theory (directing / following)
– Action Centred Leadership
• Recent / Contemporary /
Current Approaches
– Transformational and transactional
leadership
– Charismatic leadership
– Moral leadership (servant / ethical /
authentic / spiritual)
– Level 5 and 6 leadership
– Toxic leadership
– Shared and distributive leadership /
System leadership
– Self-leadership
– Substitutes of leadership
– Inclusive leadership
– Engaging leadership
– Evolutionary leadership theory
– African leadership
• Ubuntu leadership
7

9. Introduction
8
https://hbr.org/2016/03/the-most-important-leadership-competencies-according-to-leaders-around-the-world

10. The Most Important Leadership Competencies
http://wow.uscgaux.info/content.php?unit=AUX60&category=leadership-competencies
9

11. In search for a public health leadership
competency framework: Results

13. Four broad categories of leadership theory
• Essentialist theories
• Relational theories
• Critical theories
• Constructionist perspective

14. Jian, G., & Fairhurst, G. T. (2017).
Leadership in Organizations. The
International Encyclopedia of
Organizational Communication, 1-20.
Leadership in Organizations.

15. The lenses of leadership research
Normative
Interpretive
Critical
Dialogical

16. Areas of study of the
Normative lens
Leader-centric
Follower-
centric
Leader-
member
relationship

17. Areas of study of the Interpretive lens
Sense making
and framing
Leadership
aesthetics
Influential
acts of
human and
material
organising

18. 24

19. Areas of study of the Critical lens
• Tries to understand how certain
leadership situations appear “natural”
or “the way things are.”
• Power operates diffusely and under the
radar in this genre as a result.
Denaturalization
• Critical leadership scholarship argues
that issues of control and resistance
are never a simple either/or choice.
Dialectics

20. Areas of study of the Dialogical lens
• Sensitizes actors to
the ways in which
conversational moments can
inspire change, renewal, and
moral accountability.
• Encourages the building of a
critical and conscious
awareness through dialogue to
encourage more morally
responsive and responsible
organisational and leadership
actions
• Uses leadership theory and
research as a developmental
tool.
• An ontology of being that
breaks away from the
individualist view of human
existence that we have
inherited since the
Enlightenment
era. Relationality
Practical
theory
The art of
leadership
conversation
Reflexivity

21. Current trends and future directions: Trends
(1) A shift becomes clear: we are moving from a dominant masculine and leader-
centric view of leadership
to a distributed perspective in which
a variety of leadership actors have agency and
coauthor social or organisational change.
(2) Capitalizing on the momentum of the linguistic turn that impacted philosophy
and social sciences a few decades ago, a communicative turn in leadership
research has been gradually taking hold (Fairhurst & Connaughton, 2014).
– As we have seen in this gradual shift,
– communication has been elevated from a secondary component of psychological
theories
– to become the central explanatory mechanism that
– stitches together the psychological, sociological, and historical threads in the
leadership process

22. Current trends and future directions: Trends
(3) Related to this communicative turn, we have observed a deepened understanding of
communication itself in producing leadership effects.
– In the normative tradition, communication is largely understood as representational and
transmissional of thought processes.
– From the interpretive lens, we learn that communication is at the center of meaning making.
– Through the critical lens, we begin to grasp the potent power effects of communication.
– Finally, it is through the dialogical lens that we learn to appreciate the performative,
historical, and improvisational nature of leadership conversation and its potential in shaping
relationships and driving change.
(4) We have observed a growing concern with morality, which earlier leadership research
did relatively little to develop (e.g., neo-charismatic theories see morality from a leader-
centric view as innate or developed in the personal integrity or character of leaders).
– Critical scholars not only go beyond individual moral character, but also expose the systemic,
sociocultural processes that influence moral decisions and grow both the positive and the
deviant, dark side of leadership.
– More recent developments in dialogical scholarship highlight the relational nature of morality
as infused in the everyday practice of leadership conversations.
– Morality is not seen as a collection of abstract principles or heroic leaders’ personal quality.
– Rather, morality is exhibited in leadership actors’ relational responsiveness to others in
situated social interactions.

23. Current trends and future directions:
Opportunities for growth
• Emerging technologies stimulate new platforms for
– organising, authoring, relating, and influencing in innovative
ways.
• As the Internet and new technologies continue to
transform our conventional work design and as social
media redefine voice and social influence,
– the next generation of leadership research has to be responsive to
this shifting technological environment.
– leadership theories need to better account for the human
material / technology connection in achieving leadership effects.

24. Current trends and future directions:
Opportunities for growth
• Second, existing leadership theories are largely authored by scholars
from the West and drawn from the contexts of industrialized societies.
• Against the backdrop of the globalization of commerce, education, and
human migration,
– it is imperative to understand leadership in non-Western societies and in
multicultural / national contexts.
• In the last decade or so, we have only begun to see empirical studies
emerging
– that address leadership in China, Southeast Asia, and South America.
– The GLOBE project (House et al., 2004) represents another ambitious attempt in this
direction.
– Part of the project was designed to compare values and ideals for outstanding
leaders across national cultures.
– In spite of its leader-centric approach and heavily normative discourse, the
project offers valuable information on an unprecedented global scale.

25. Current trends and future directions:
Opportunities for growth
• Third, organisational and social problems have become increasingly
complex, intractable, and interdisciplinary.
– They are often filled with moral dilemmas and contradictions and defy ready-
made solutions.
– Yet, existing leadership theories are woefully inadequate to account for such
complex leadership processes, which call for more holistic and nonlinear
solutions.
• Finally, leadership research could benefit from greater innovation in
methods.
– The complexity of leadership processes calls for innovative research designs that
employ mixed methodologies and multilevel analyses.
– This would require students of leadership to be versed in more than one
particular scientific discourse.
– Cross-pollination across these discourses in both theory and method holds the
promise of a brighter future for leadership research.

26. Where are we today
Recent leadership theories
Transformational and
Transactional leadership
it’s role in
Employee attitudes
Well-being
Trust
34

27. VUCA World
35

28. Smith, B.N., Montagno, R.V., & Kuzmenko,
T.N. (2004). Transformational and Servant
Leadership: Content and Contextual
Comparisons. Journal of leadership and
Organizational Studies, 10(4), 80-91.
Transformational and Servant
Leadership: Content and
Contextual Comparisons.

29. Transformational Leadership: Introduction
• The topic of leadership has become popular among scholars
– during the last 20 years
– Considerable research on this topic has appeared in the literature (Avolio & Yammarino,
2002; Dansereau & Yammarino, 1998).
• There is still no comprehensive understanding of
– what leadership is,
• There is also no agreement among different theorists on
– what good or effective leadership should be.
• The most popular leadership theories currently being discussed
by researchers include
– charismatic,
– transactional,
– transformational and
– servant leadership.

30. Transactional leadership
• Transactional leadership is
• a process of social exchange
• between followers and leaders that
• involves several reward-based transactions.
• The transactional leader
• clarifies performance expectations, goals, and a path
• that will link achievement of the goals to rewards.
• The transactional leader also
• monitors followers’ performance and
• takes corrective actions when necessary
• (Bums, 1978; Graen & Cashman, 1975; Graen & Scandura, 1987; Hollander, 1993; Yukl, 1994; Bass, 1996).

31. Transformational leadership
• Transformational leadership occurs when a leader
– inspires followers to share a vision,
– empowering them to achieve the vision, and
– provides the resource necessary for
– developing their personal potential.
• Transformational leaders
– serve as role models,
– support optimism and
– mobilize commitment, as well as
– focus on the followers’ needs for growth (Bass, 1996; Bass & Avolio, 1988, 1994a, 1994b).
• Transformational leadership has been conceptualized as containing four
behavioural components:
• idealized influence,
• inspirational motivation,
• intellectual stimulation, and
• individualized consideration (Bass, 1985, 1996; Bass & Avolio, 1994a, 1994b).

32. Transformational leaders of the world
40
https://www.youtube.com/watch?v=tbnzAVRZ9Xc&feature=emb_rel_err

33. Transformational leadership
• Bass claims that some leaders may be charismatic but
• not transformational in terms of their effect on followers.
• intellectual stimulation and individualized consideration are
• not wholly charismatic in nature.
• Intellectual stimulation refers to a leader’s behaviour that encourages followers’
creativity and stimulates innovative thinking.
• Transformational leaders are tolerant to followers’ mistakes.
• They involve followers in problem solving and are
• open to new ideas.
• Individualized consideration refers to the role a transformational leader plays in
• developing followers’ potential and paying attention to
• their individual needs for achievement and growth.
• strives to create new learning opportunities for followers and
• tends to act as a coach or mentor.
• Transformational leaders
• create and utilize two-way personalized communications with followers.

34. Conger, J.A., & Kanungo, R.N. (1994).
Charismatic Leadership in Organizations:
Perceived Behavioral Attributes and Their
Measurement. Journal of Organizational
behaviour, 15(5), 439-452.
Charismatic Leadership in
Organizations: Perceived Behavioral
Attributes and Their Measurement

35. Transformational leadership (TL )
• In 1978, in his seminal work
Leadership, political scientist
James McGregor Burns coined
the term 'transformational
leader’
• to illustrate the two
fundamentally different patterns
of interaction that might occur
between leaders and their
followers.
• TL engaged 'with others in such a
way that leaders and followers
raise one another to higher levels
of motivation and morality ...

36. Transformational leadership (TL )
• Their purposes which might have started out as separate but related ...
• become fused .. .
• as mutual support for common purpose ...
• transforming leadership
• ultimately becomes moral in that it raises the level of human conduct and
• ethical aspiration of both leader and led,
• and thus has a transforming effect on both’
• This, he contrasted it with transactional leadership –
• a more mundane form that 'occurs when
• one person takes the initiative in making contact with others
• for the purpose of an exchange of valued things ...
• Their purposes are related,
• at least to the extent that the purposes stand within the bargaining process and
• can be advanced by maintaining that process.
• But beyond this the relationship does not go ...
• A leadership act took place, but it was not one that binds leader and follower
together in a mutual and continuing pursuit of a higher purpose'
• In other words, both leader and led experienced their interaction
• as simply a transaction in the most instrumental sense of the word.

37. Transformational leadership and
employee attitudes
• Transformational leadership is best suited to support and foster
• a work environment that enhances employee attitudes and belief
such as
• commitment (Tanner, 2007; Tremblay, 2010; Wang, 2008),
• trust (Tanner, 2007) and
• job satisfaction (Rowold & Heinitz, Tanner, 2007; Wolfram & Mohr, 2009),
• effectiveness and extra effort (Rowold & Heinitz, 2007),
• subjective task performance and
• organisational citizenship behaviour (Wang, Law, Hackett, Wang & Chen, 2005) and
• engagement (Tims, Bakker, & Xanthopoulou, 2011)
• as this leadership approach aims to
• change,
• transform and
• assist employees (Northouse, 2013).

38. Transformational and Transactional
Leadership: A Meta-Analytic Test of Their
Relative Validity
Timothy A. Judge and Ronald F. Piccolo
Transformational and
Transactional Leadership

39. The difference between transformational
and transactional leadership
• Transformational leaders offer a purpose that transcends
short-term goals and focuses on higher order intrinsic
needs.
• Transactional leaders, in contrast, focus on the proper
exchange of resources.
• If transformational leadership results in followers
identifying with the needs of the leader,
• the transactional leader gives followers something they want
in exchange for something the leader wants (Kuhnert & Lewis, 1987).
• Transactional leadership is more commonplace than is
transformational leadership, yet less dramatic in its
consequences.

40. Workplace Social Exchange Network
Organisation
Supervisor/
leader
Team
Exchange
“Currencies”
Available
Organisational
Structure
Organisational
Culture
Exchange
Salience/
Relevance
Employee Needs
Employee
Exchange
“Currencies”
Available
Employee Organization Exchange
Employee Supervisor Exchange
Employee Team Exchange

41. Social exchanges in the workplace
The exchange of currencies
• Organisation
– Support
– Security
– Advancement
– Pay
– Benefits
– Employment
– Social identity
– Job assignment
– Information
• Employee / individual
– Talent
– Experience
– Educational attainment
– Knowledge
– Organisation citizenship
– Performance
– Attendance
– Membership
– Loyalty
– Positive attitude
49

42. Transformational and Transactional
Leadership
• Bass (1985) based his theory of transformational leadership on Burns’s
(1978) conceptualization, with several modifications or elaborations.
(1) Bass did not agree with Burns
that transformational and transactional leadership
represent opposite ends of a single continuum.
Bass argued that
transformational and transactional leadership are separate concepts, and further argued that
the best leaders are both transformational and transactional.
(2) Bass elaborated considerably on the behaviours
that manifest transformational and transactional leadership.
Although the theory has undergone several revisions, in the most recent version there
are
four dimensions of transformational leadership,
three dimensions of transactional leadership, and
a non-leadership dimension.

43. Transformational and Transactional
Leadership
• The four dimensions of transformational leadership are
– Charisma or idealized influence,
– inspirational motivation,
– intellectual stimulation, and
– individualized consideration.
• The three dimensions of transactional leadership are
– Contingent reward,
– management by exception—active, and
– management by exception—passive.
– laissez-faire leadership (actually non leadership)

44. 52

45. 53
Description of leadership style
Transformational
Idealized Influence (attribute) Demonstrates qualities that motivate respect and pride from
association with him or her
Idealized Influence (behaviour) Communicates values, purpose, and importance of organisation’s
mission
Inspirational Motivation Exhibits optimism and excitement about goals and future states
Intellectual Stimulation Examines new perspectives for solving problems and completing
tasks
Individualized Consideration Focuses on development and mentoring of followers and attends
to their individual needs
Transactional
Contingent Reward Provides rewards for satisfactory performance by followers
Management by Exception
(active)
Attends to followers’ mistakes and failures to meet standards
Management by Exception
(passive)
Waits until problems become severe before attending to them
and intervening
Laissez-Faire Exhibits frequent absence and lack of involvement during critical
junctures

46. Important Leadership Behaviour of
Transformational Leaders
Transformational
leadership behaviour
Role-Modelling
Vision
Articulation Performance
Expectation
Goal Acceptance
Individual
Support
Intellectual
Stimulation

47. 55

48. On a more practical level – what’s the difference
between transformational and transactional
leadership?
56

49. Transactional
leadership
• Advantages
– Clear structure
– Achievable goals
– Can lead to high performance
– Straightforward motivation
– Efficient
• Disadvantages
– Inflexible, rigid
– Uninspiring
– Limit follower engagement
• Advantages
– Taps into the higher-level needs
– More personal motivation
– Looks to empower and develop the
whole person
– Transform the follower into a leader
• Disadvantages
– Can be a complex and blurry
collection of attributes
– May not be trainable
– Charisma can potentially be abused
57
Transformational
leadership

50. Transactional Leadership
• Avolio (1999) commented
– “transactions are at the base of transformations” (p. 37).
• In Bass’s (1985) conceptualization,
– transactional leadership results in followers meeting expectations,
– upon which their end of the bargain is fulfilled and
– they are rewarded accordingly.
• According to Bass (1998), transformational leadership is required.
– To motivate followers to move beyond expectations,
• This suggests that without the foundation of transactional leadership,
– transformational effects may not be possible.

51. Liu, J., Siu, O, & Shi, K. (2010). Transformational
Leadership and Employee Well-Being: The Mediating
Role of Trust in the Leader and Self-Efficacy. Applied
Psychology: An International Review, 59(3), 454-479
Transformational Leadership,
Employee Well-Being, Trust in
the Leader and Self-Efficacy.

52. Transformational leadership and
employee well-being
• Employee well-being is important for both employees and employers,
not only
• because of the happy/productive employee thesis (Wright & Staw, 1999), but
• also because stress in the workplace has negative consequences for employees,
such as
• frustration,
• depression,
• anxiety, and
• many physical problems, including
• cardiovascular disease / high blood pressure (Siu, Lu, & Spector, 2007).
• Some employers have taken increasing interest in enhancing and
maintaining employee well-being,
• Some employees are even willing to take pay cuts in order to be
healthier and happier (Warr, 1999).

53. Transformational leadership and
employee well-being
• Research has proved that employee well-being is affected
• not only by the physical work environment,
• but also by the psychosocial work environment (Gilbreath & Benson, 2004).
• Management style is one of the four main psychosocial work
environment issues
• that are of current concern for employee well-being and
• occupational health in the 21st-century workplace.
• The focus has been on supervisors because
• they can be a major influence on employees’ work lives,
• positively or negatively, since
• supervisors have a large impact on
• work demands,
• control, and
• social support (Gilbreath & Benson, 2004; Harris & Kacmar, 2006)

54. Transformational leadership and
employee well-being
• In line with the development of positive psychology
• there has been more emphasis on healthy work
• which implies promotion of both
• psychological and physical well-being
• Specifically, a body of knowledge about positive leadership is advocated
• It is argued that positive leadership, which comprises
• positive attitudes of passion, skills, and confidence to inspire followers,
• has the potential to elevate followers in the long term
• in areas such as trust, commitment, and well-being.
• The closest leadership style to positive leadership is transformational
leadership (TL),
• since Bass (1985) defined TL in terms of
• the leader’s motivational and elevating effect on followers.

55. Transformational leadership and
employee well-being
• Confirming this positive leadership thesis,
• researchers have established associations
• between TL and employee well-being
• Arnold, Turner, Barling, Kelloway, & McKee, 2007;
• Densten, 2005;
• Seltzer, Numerof, & Bass, 1989;
• Sivanathan et al., 2004).
• Individual consideration from a TL is reflected
• in the leader’s behaviours
• showing concern for followers’ needs and feelings.
• This kind of TL behaviour could be associated
• with favourable affective responses,
• such as job satisfaction (Butler, Cantrell, & Flick, 1999).

56. Transformational leadership and
employee well-being
• Inspirational motivation could
• increase followers’ task clarity and
• eliminate uncertainty and ambiguity by providing a
• frame of reference for describing expected performance,
• which in turn are related to lower levels of perceived work stress and less stress symptoms (Turner et
al., 2002).
• Empirically studies have demonstrated associations
• between TL and employee well-being (Arnold et al., 2007; Densten, 2005; Seltzer et al., 1989; Sivanathan et al., 2004).
• Podsakoff et al. demonstrated that TL behaviours influenced employees’ job satisfaction, and
• this has been confirmed by Fuller, Patterson, Hester, and Stringer’s (1996) meta-analysis.
• Seltzer et al. (1989) found that symptoms of stress and burnout could be attributed to the lack of TL.
• In other words, TL can reduce subordinates’ stress symptoms and job
burnout.
• Recently, using a sample of 480 senior managers from an Australian law-enforcement organisation,
• Densten (2005) drew similar conclusions.

57. Employee well-being
• Well-being is a broad concept, and
• has been used in a variety of ways,
• covering different dimensions and degrees of scope.
• As suggested by Warr (2006), experience of well-being may be viewed
• simply in terms of feeling good or feeling bad.
• Positive and negative aspects of well-being are believed to be
• two related but also independent constructs (Karademas, 2007).
• In line with the literature on well-being,
• employee well-being is also an ambiguous concept.
• Traditionally, employee well-being has been studied
• using the construct of job satisfaction, which is defined as
• “a pleasurable or positive emotional state
• resulting from the appraisal of
• one’s job or job experiences”

58. Employee well-being
• Warr (1987) categorised those concepts such as
• job satisfaction, job-related tension,
• job-related depression,
• job-related burnout, and morale as employee well-being.
• Danna and Griffin (1999) further proposed that employee well-being comprises
• “the combination of mental/ psychological indicators such as affect, frustration, and anxiety and
• physical/ physiological indicators such as blood pressure, heart condition, and general physical
health”
• Recently, social well-being, which refers to
• the quality of one’s relationship with other people and communities,
• is also proposed as one aspect of well-being (Keyes, 1998).
• Psychological well-being and physiological well-being are individually focused,
• Social wellbeing focuses on interpersonal and social interactions (Bradbury & Lichtenstein, 2000).
• Although more differentiated accounts are often desirable,
• affective well-being is the core aspect of employee well-being,
• since the literature usually construes well-being as a primarily affective state (Diener, Suh, Lucas, & Smith, 1999).

59. Trust
• Trust is defined as
• “the willingness of a party to be vulnerable
• to the actions of another party
• based on the expectation that the other will perform a particular action important to the
trustor,
• irrespective of the ability to monitor or control that other party” (Mayer et al., 1995, p. 712)
• Extending this to the leader–follower relationship, trust in the leader
• can be viewed as the willingness of followers
• to be vulnerable to their leaders.
• Antecedents to trust include perceptions of the trustee’s
• ability,
• integrity, and
• benevolence toward the trustor in the workplace.
• Two major perspectives in the literature on the nature of trust:
• one is the character-based perspective, and the other is
• the relationship-based perspective

60. The nature of trust
• The kind of perspective which focuses on the followers’ perception of their
leaders’ characters and
• its influence on followers’ sense of vulnerabilities
• can be implied as the character-based perspective.
• From the relationship-based perspective, trust is treated as
• a result of the social exchange process,
• which goes beyond standard economic exchange and
• develops the perception of mutual obligations (Brower, Schoorman, & Hwee Hoon, 2000).
• Extending this to the leader–follower relationship,
• trust in the leader can be viewed as
• the obligation of the followers to be vulnerable to their leaders.
• Leaders’ care and consideration are the main antecedents of this obligation (Dirks & Ferrin,
2002).
• Although these two kinds of perspective have different theoretical
backgrounds,
• both have a common conceptual core
• that trust in the leader is a kind of positive perception or
• belief that followers are “willing/obligated to be vulnerable” to their leaders

61. Trust and Transformational leadership (TL)
• Trust in the leader has been a significant outcome
• built by effective leadership,
• especially in the field of TL (Casimir, Waldman, Bartram, & Yang, 2006; Jung & Avolio, 2000; Pillai et al., 1999; Podsakoff et al., 1990)
• Yukl (1999) argued that one of the key reasons why TL works
• is followers’ trust and respect.
• The characteristics of TL are parallels to the antecedents of trust
in the leader from both perspectives summarised, such as
• integrity,
• benevolence,
• care, and
• consideration.
• There are also a number of empirical studies suggesting a
• positive relationship between
• TL and trust in the leader.

62. Trust and Transformational leadership
• Research reported a direct link between TL and trust in the leader,
• in which trust in the leader was conceptualised as
• faith in and loyalty to the leader.
• Others posited that TL may gain followers’ trust
• by acting as role models
• in the process of developing a shared vision, and also
• by demonstrating individualised consideration
• for followers’ needs and the capability to achieve the vision.
• Some have found that TL may build followers’ trust
• by establishing a social exchange relationship between leaders and followers.
• Summarising 13 empirical studies, meta-analysis showed that
• the correlation between TL and trust is .72

63. Trust and Transformational leadership
• Both of the two major perspectives on the nature of trust
suggest that
• trust in the leader exerts positive effects on employee well-being.
• Using the logic behind the character-based perspective,
• followers are more likely to feel safe and comfortable
• if they believe that their leaders have ability, integrity, and benevolence (Mayer et al., 1995),
• because leaders are responsible for many activities
• that have a significant impact on followers’ job satisfaction,
• such as performance evaluations, pay, promotion, and training (Rich, 1997).
• In contrast, when followers believe that their leaders cannot be
trusted,
• they are likely to feel psychologically distressed,
• which in turn influences employee well-being (Dirks & Ferrin, 2002).
• On the other hand, from the relationship-based perspective,
• followers are also more likely to feel safe and comfortable
• if they believe their leaders give them care and consideration.

64. Self-efficacy and Transformational
leadership
• Bandura’s (1997) social cognitive theory, define self-efficacy as
– “an individual’s beliefs in one’s capabilities to
– organise and execute the course of action
– required to produce given attainments” (p. 3).
• Four main sources of influence are used in the development of self-
efficacy, including
– Enactive mastery (successful accomplishments),
– modelling (vicarious experiences provided by social models),
– verbal/social persuasion, and
– psychological arousal.
• These determinants are parallels to many of the qualities of TL,
especially
– role modeling,
– verbal/social persuasion, and
– psychological arousal, which are
• also core characteristics of TL (Yukl, 1999).

65. Self-efficacy and well-being
• Although self-efficacy does not alter people’s capabilities,
– it affects the sense of mastery and control over their environment and
– influences the choices people make,
– influences the choices the effort they expend,
– how long they persevere in the face of challenge, and
– the degree of anxiety or confidence they bring to the task at hand (Bandura, 1997; Lazarus &
Folkman, 1984).
• Judge, Locke, and Durham (1997) argued that
– self-efficacy could affect job satisfaction
– through its association with practical success on the job.
• Because individuals with high self-efficacy
– deal more effectively with difficulties and
– persist in the face of failure,
– they are more likely to achieve expected outcomes and thus
– derive satisfaction from their jobs.

66. Self-efficacy and Transformational
leadership
• Podsakoff et al. (1990) suggested that a TL influences followers’ self-efficacy
• by role modelling appropriate behaviours, because
– followers identify with such leaders and
– this identification facilitates them
– to engage in observational learning.
• Empirical findings confirm this theoretical speculation.
• Kirkpatrick and Locke (1996) found that
– the quality of the leader’s vision and vision implementation,
– is instrumental in increasing self-efficacy,
– which in turn affects performance.
• Pillai and Williams (2004) also found that
– TL was positively related to self-efficacy

68. Jackson, L.T.B. (2017). The mediating effect
of personal resources in the relationship
between transformational leadership and
employee attitudes, 11th International
Business Conference Proceedings, 569-590.
Personal resources,
Transformational leadership and
Employee attitudes

69. The Bias Nature of Transformational
Leadership Research
• It has been objected that TL research is biased toward
favouring
• some stakeholders such as top management, owners, and customers
• at the expense of employees,
• since it accentuates the role of leadership
• in increasing task motivation and performance (Stevens, D’Intino, & Victor, 1995).
• We need to develop theories of
• the psychological processes
• that translate leader behaviour into follower action (Knippenberg et al, 2004),
• if we want to understand leadership.
• Despite the empirical confirmed linked between TL and employee
attitudes,
• little is known about the psychological mechanisms
• through which these associations occur.
• Still this area of research has received relatively less attention.

70. The Bias Nature of Transformational
Leadership Research