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Abstract ▼ AI-Helper

The purpose of this study is to review the current state of the transformational leadership and LMX approach to the study of leadership. Leadership research has witnessed a shift from traditional transactional models to a new genre of theories of transformational and charismatic leadership and LMX. ...

The purpose of this study is to review the current state of the transformational leadership and LMX approach to the study of leadership. Leadership research has witnessed a shift from traditional transactional models to a new genre of theories of transformational and charismatic leadership and LMX. Transformational leadership theories offer the promise of extraordinary individual and organizational outcomes. Leaders motivate followers to perform beyond expected levels by activating higher order needs, fostering a climate of trust, and inducing them to transcend their self-interest for the organization's sake. Numerous investigations point of the robustness of the effects of such leadership on individual and organizational outcomes such as job satisfaction, organizational commitment, and performance. LMX theory suggests that leaders do not use the same style in dealing with all subordinates, but rather develop a different type of relationship or exchange with each subordinate. These relationships range from those that are based strictly on employment contracts to those that are characterized by mutual trust, respect, liking, and reciprocal influence. LMX has been positively related to job satisfaction, productivity, and career progress of managers and negatively related to turnover and employee grievances. In conclusions, effective leaders link achievement of organizational goals to follower fulfillment of self-development goals, with the former advancing the latter.

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