This is a relatively new theory on leadership and attempts to focus on the distinction between leading for change and leading for stability. It takes the form of leadership as building.
The entire focus is on arousing human potential, satisfying higher order needs and raising expectations of both leaders and followers to motivate them to higher levels of commitment and performance (Sergiovanni, 1982).
Transformational leadership is the set of abilities that allow the leader to recognize the need for change, to create a vision to guide that change and to execute that change effectively.
The issues involving the normal, routine work-related transactions such as assigning subjects to teach, evaluating students’ and teachers’ performance, making decisions etc. are incorporated in transactional leadership.
However, occasionally an education manager has initiate and manage major change such as developing a new course, creating a work group, bringing innovations into the curriculum, defining the institution’s culture or starting a new branch of the school/college with another medium of instruction.
Such issues entail transformational leadership. Only a leader with tremendous influence can hope to perform these function is effectively.
In order to establish the best fit possible between the micro and macro-environments of the educational system, the transformational leader must be prepared to evolve long-term strategic plans, to read the changing nature of external and internal situations and to manage institutional culture to align it with action plans.
Transformational leadership incorporates energizing personnel to make a united response to a higher level of goals common to all those associated with the teaching-learning process (Hanson et al, 1991).