Transformational leadership boosts organizational performance, while transactional leadership hinders it.
The study compared Transformational and Transactional Leadership styles to see how they affect organizational performance. They interviewed 800 employees in management roles and found that Transformational Leadership, with characteristics like Charismatic Action and Inspiration Motivation, has a positive impact on performance. However, Transactional Leadership has a negative effect. This means that Transformational Leadership is more effective for improving how well an organization performs.