Does the Transactional-Transformational

Leadership Paradigm Transcend Organizational

and National Boundaries?
Bernard M. Bass
State University of New York at Binghamton

11[ I I I I I I
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There is universality in the transactional-transforma- of reinforcements by the leader that are contingent on
This document is copyrighted by the American Psychological Association or one of its allied publishers.

tional leadership paradigm. That is, the same conception followers' performance. Rather; the new leadership adds
of phenomena and relationships can be observed in a the role of the transformational leader in enlarging and
wide range of organizations and cultures. Exceptions can elevating followers' motivation, understanding, maturity,
be understood as a consequence of unusual attributes and sense of self-worth. Graen and Uhl-Bien (1991) found
of the organizations or cultures. Three corollaries are that although leader-member exchange may begin with a
discussed. Supportive evidence has been gathered in simple transactional relationship, for effectiveness, it needs
studies conducted in organizations in business, educa- to become transformational.
tion, the military, the government, and the independent Numerous reasons bolster the universality argument.
sector. Likewise, supportive evidence has been accumu- First, leadership, as such, is a universal phenomenon. No
lated from all but 1 continent to document the applicabil- society has been found where it is completely absent
ity of the paradigm. (Murdock, 1967). Still, the leadership that occurs is af-
fected by the organizations and cultures in which it ap-
pears. To export participative management from the
United States to more authoritarian countries involves
i l B v i d e n c e supporting the transactional-transforma- preaching Jeffersonian democracy to managers who be-
r tional leadership paradigm has been gathered from lieve in the Divine Right of Kings (Haire, Ghiselli, &
all continents except Antarctica--even offshore in Porter, 1966). Nonetheless, the globalization of industry
the North Sea. The transactional-transformational para- and the media has made the task easier to spread system-
digm views leadership as either a matter of contingent atic approaches to leadership.
reinforcement of followers by a transactional leader or Second, laypeople repeatedly ask, " A r e leaders
the moving of followers beyond their self-interests for born or made?" and usually argue about how much they
the good of the group, organization, or society by a trans- are made. However, recent findings about heritability
formational leader. The paradigm is sufficiently broad to (Rose, 1995) may suggest otherwise. In a study of 100
provide a basis for measurement and understanding that sets of monozygotic and dizygotic twins, T. Vernon (per-
is as universal as the concept of leadership itself. Here, sonal communication, March 31, 1995) reported that
universal does not imply constancy of means, variances, monozygotic twins were much more alike than dizygotic
and correlations across all situations but rather explana- twins in their self-perceived transformational leadership
tory constructs good for all situations. Numerous investi- behaviors as measured by the Multifactor Leadership
gations (field studies, case histories, management games, Questionnaire (MLQ Form 5X; Bass & Avolio, 1995).
interviews, and laboratory studies) point to the robustness As much as 40% of the variance could be attributed
of the effects of transformational and charismatic leader-
ship (Dorfman, 1996).
Although I focus here on the transactional-transfor- Editor's note. William Bevan served as action editor for this article.
mational conceptualization derived from Bums (1978) and
elaborated by Bass (1985), it is one among a number Author's note. This article was deliveredas the DistinguishedScientific
of neocharismatic conceptualizations built around similar ContributionsAwardAddress at the Societyfor Industrialand Organiza-
leader behaviors and perceptions with slight variations in tional Psychology,Orlando, FL, May 1995.
I am indebtedto P. W. Dorfmanfor the liberal view of the meaning
emphases (House, 1995). Referred to as the "New Leader- of universality.The full-rangemodel and much of the relevantresearch
ship" (Bryman, 1992), these conceptualizations include emerged from collaboration with B. J. Avolio, E J. Yamrnarino, and
the 1976 theory of charisma (House, 1977), the attribu- many others at the Center for Leadership Studies. I also thank W. E
tional theory of charisma (Conger & Kanungo, 1987), the Ulmer for commentson an earlier version of this article.
Correspondence concerning this article should be addressed to
leadership challenge (Kouzes & Posner, 1987), and vision- Bernard M. Bass, Center for Leadership Studies, State University of
ary leadership (Sashkin, 1988). This new leadership does New York at Binghamton, P.O. Box 6015, Binghamton, NY 13902-
not replace the conceptions of leadership as exchanges 6015.

130 February 1997 • American Psychologist

Copyright 1997 by the American Psychological Association, Inc. 0003-066X/97/$2.00
Vol. 52, No. 2. 130-139
 by either self-interest (transactional) or moral principles
(transformational). Britain was transactional in main-
taining its "splendid isolation" and the European balance
of powers by taking sides with whichever side was
weaker. It was transformational when it outlawed and
fought the slave trade as a matter of moral principle.
Sixth, pop culture and its fads sweep across the
world. Worldwide webs of communication, trade, and
travel and the international transfer of technology con-
tribute to the convergence of requirements and role mod-
els for leadership. Most business and industrial managers
everywhere are more pragmatic and less idealistic than
most leaders of social movements (England, 1976). Orga-
nizations are continually seeking benchmarks to see what
they can do to become closer in practice to the best of
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their counterparts. They learn, change, and become more

alike. So do cultures. It may not be politically correct to
say so, but less developed cultures change as a conse-
quence of the diffusion of ideas and practices from more
Bernard M. developed cultures.
Bass Seventh, the United States provides important
sources of communalities in the postindustrialized world.
English has become the word's language of business,
to heritability. Transactional managing by exception and and much of American management practices and man-
laissez-faire leadership were similarly affected by herita- agement education have been adopted universally. The
bility. Only transactional contingent reward failed to reg- United States dominates the worldwide entertainment in-
ister a significant effect of inheritance. To the degree dustry. The master of business administration program
that heritability is culture free, it means that a universal has gone global. Recently, the British Ministry adopted
constraint is placed on how much contingencies of train- American-style "publish or perish" rules for supporting
ing, culture, and organization vitiate possible transforma- higher education.
tional leadership effects.
Third, knowledge work will dominate the 21 st cen- Five Universals
tury. It requires more envisioning, enabling, and: empow- Lonner (1980) listed four kinds of universals or regulari-
ering leadership, all of which are central to transforma- ties in leader-follower relations that transcend cultures
tional leadership as defined by Kouzes and Posner (1987). and organizations: simple, variform, functional, and sys-
The leadership must go beyond the transactional reward- tematic. I add a fifthmvariform functional. A simple
punishment exchange relationship. universal about leadership is demonstrated by General
Fourth, the socially oriented transformational leader Norman Schwarzkoff's (1994) statement that anytime a
engages in moral uplifting of followers. Moral absolutes group of human beings come togethel; there is always a
may be involved. It is absolutely true that crying "fire!" leader. Furthermore, he did not see any difference in the
in a crowded theater is absolutely wrong. It is absolutely characteristics required for successful leadership of Ma-
good to help the many without harming any. cedonia by Alexander the Great and successful leadership
Fifth, the transactional-transformational leadership at IBM by Lou Gerstner. A variform universal is a simple
paradigm can be extended to describe teams and group regularity influenced to some extent by cultures or orga-
effects as well as how whole organizations differ nizations. Ordinarily, business organizations almost ev-
(Avolio & Bass, 1994). People jockey for positions in a erywhere are headed by a single executive officer or man-
transactional group, whereas they share common goals aging director, but in Germany, a technical and a commer-
in a transformational group. Rules and regulations domi- cial director may share authority and responsibilities. A
nate the transactional organization; adaptability is a char- functional universal is a relation that is universal between
acteristic of the transformational organization. The team variables. Such a functional universal is the correlation
MLQ has been developed to assess teams, as teams, in between laissez-faire leadership and perceived ineffec-
terms of the components of transformational and transac- tiveness. Everywhere, the assigned leader who frequently
tional team mores (Avolio & Bass, 1995). Correspond- avoids responsibilities and shirks duties is perceived as
ingly, raters have been able to complete reliable and valid ineffective and dissatisfying by followers. A more dy-
descriptions of their organizations using the Organiza- namic rubric is a variform functional universal. Almost
tional Description Questionnaire (Bass & Avolio, 1993a). everywhere, a positive, sizable correlation is found be-
The paradigm can even be extended to the international tween attributed charisma and satisfaction with it. But a
behavior of nations. Kissinger (1994) repeatedly de- slightly negative correlation emerged in one large sample
scribed the international diplomacy of nations as justified of government economists rating their supervisors

February 1997 • American Psychologist 131

 (Avolio, Bass, & Jung, 1996). A systematic behavioral Bass, & Sosik, 1995). Currently, House (1995) is heading
universal is a theory about relationships that explain a 60-nation study in which measures of charismatic lead-
if-then outcomes across cultures and organizations. The ership have been developed indigenously in the same
full-range model of transformational and transactional three industries in each of the nations. So far, preliminar-
leadership provides the measurable relationships for such ily, he has concluded that the similarities of findings out-
a theory. The model and the theory underlying it are weigh the differences.
systematically universal, although they include variform At first, it appeared implicitly to me that transforma-
and variform functional universals. When exceptions tional leadership was limited to leaders in the upper eche-
to the generalizations occur, they usually are circum- lons of organizations. So, when I collected the first inter-
stances explained by the peculiarities of the culture or view and surcey data in 1980, they were data from and
organization. about senior executives and U.S. Army colonels describ-
In sum, universal means a universally applicable ing their leaders (Bass, 1985). But by 1985, it had been
conceptualization. At the individual level of measure- discovered that transformational leadership was much
ment, each individual leader has a profile of transactional m o ~ universal in that it could be displayed by middle
and transformational scores that can be reliably and val- rnaaagers, Army noncommissioned officers and lieuten-
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idly discriminated from the norms for his or her group, ants, firs't-level supervisors, and team leaders with no
organization, or culture: The means will vary in under- ft~nnal rankin their organizations. By 1992, it was clear
standable ways, as will the variances, as one moves from from empirical evidence that tra~nsformational leadership
one context to another. Considerable functional uniformi- could he exhibited by samples ianging from housewives
ties in correlations with outcomes will be observed, with active in the community (Avolio & Bass, 1994) and stu-
understandable exceptions (Bass, Burger, Doktor, & Bar- dents (Avolio, Waldman, & Eirrst~in, 1988) to Japanese
rett, 1979). CEOs (Bass & Yokochi, 1991), world-class leaders of
Variation occurs because the same concepts may movements, and presidents of the United States (Bass,
contain specific thought processes, beliefs, implicit un- Avolio, & Goodheim, 1987). Also, as people began to
derstandings, or behaviors in one culture but not another. work toward transformational teams, it became clear that
Misumi's (1985) performance-maintenance distinctions members of a team could learn how to make a team more
transfer for electronics plant supervisors across Britain, transformational (Avolio & Bass, 1995).
the United States, Japan, and Hong Kong, but the specific A variety of contingency theories of leadership have
behaviors reflecting the two styles differ markedly been advanced, with varying research support. Little em-
(Smith, Misumi, Tayeb, Peterson, & Bond, 1989). The pirical evidence supports Hersey-Blanchard's (Hersey &
linkages among concepts may strengthen or weaken as Blanchard, 1969) model of situational leadership contin-
one moves from one culture to another. For example, gent on the followers' maturity. After more than 400
Indonesian inspirational leaders need to persuade their publications, controversy remains about Fiedler's (1983)
followers about the leaders' own competence, a behavior saw-toothed theory that task-oriented leaders are most
that would appear unseemly in Japan. Contingent re- effective when they are faced with situations that are
warding is more implicit in Japan than in the United highly favorable or highly unfavorable to them and rela-
States (Yokochi, 1989). Nevertheless, the concepts of in- tions-oriented leaders do best when they are faced with
spiration and contingent reward appear to be as universal situations that are in-between in favorableness. Equally
as the concept of leadership itself. In the same way, the researched is House's (1971) path-goal theory, which
contribution to the extra effort of followers of a leader's states that the effective leader clarifies the transactional
inspiration and a leader's promises of reward will vary exchange and the path the subordinate needs to follow
to some degree. Nevertheless, inspirational leadership is for goal attainment. Contingencies include the motivation
more strongly correlated with extra effort of followers in of the subordinate and the structure of the situation. But
most organizations and cultures than is contingent reward supporting evidence is mixed. Although contingencies do
leadership (viz., Druskat, 1994; Salter, 1989). have some validity, overall, better leaders integrate a task-
Dorfman and Ronen (1991) accounted for people's oriented and a relations-oriented approach (Blake &
favoring of differences over similarities of leadership Mouton, 1964) as well as demonstrate their ability to
across cultures. The differences intrigue people; the clarify the path to the goals (Bass, 1960, 1990).
sameness bores them. Differences give people more to Since 1980, general findings have been assembled
say. Significant differences are a matter of having large that the best of leaders are both transactional and trans-
enough samples. It is effect sizes that need to be large formational. Again, for many situations, the circum-
for people to dwell on the differences. Some suggest stances may not make that much difference. In fact, the
that because much of the theories and methods of the leadership behavior may affect the contingent condition
transactional -transformational leadership paradigm more than the reverse. Thus, the transactional leader
originated in the culturally individualistic United States, works within the constraints of the organization; the
the paradigm is likely to have little relevance in countries transformational leader changes the organization (Bass,
with collectivistic cultures. The opposite appears to be 1985). Transformational leadership and transactional
more likely. Transformational leadership emerges more leadership may be affected by contingencies, but most
readily in the collectivistic societies of East Asia (Jung, contingencies may be relatively small in effect.

132 February 1997 • American Psychologist

 Conceptualization executives reported that the leader motivated them to
extend themselves, to develop themselves, and to become
Leaders and followers enter into an exchange beginning more innovative. The executives were motivated to emu-
with a process of negotiation to establish what is being late their transformational leader. They became commit-
exchanged and whether it is satisfactory (Hollander, ted to the organization as a consequence of belief in the
1986). This transactional leadership depends on the lead- leader. They exerted extra effort for their leader (Bass,
er's power to reinforce subordinates for their successful 1985).
completion of the bargain. Reinforcement can be materi- The original MLQ (Bass, 1985) began with the ex-
alistic or symbolic, immediate or delayed, partial or ecutives' statements and those from the literature on cha-
whole, implicit or explicit, and in terms of rewards or risma and contingent reinforcement. The 141 statements
resources. Nevertheless, Levinson (1980) suggested that were sorted by 11 trained judges into transformational
if you limit yourself to transactional leadership of a fol- and transactional leadership. Then, they were adminis-
lower with rewards of carrots for compliance, or punish- tered as MLQ Form 1 to senior U.S. Army officers to
ments with a stick for failure to comply with agreed-on rate how much each statement described their superior
work to be done by the follower, the follower will con- officers on magnitude estimation scales of frequency
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tinue to feel like a jackass. Among other things, the fol-

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ranging from 0 (the behavior is observed not at all) to

lower's sense of self-worth must be addressed to engage 4 (the behavior is observed frequently, if not always).
and commit the follower (Shamir, 1991). And that is one Numerous factor analyses of the frequencies of the be-
of the strongest motivators that transformational leader- haviors rated by subordinates in this and subsequent stud-
ship adds to the transactional exchange. ies of business executives, agency administrators, and
Authentic transformational leaders motivate follow- U.S. Army colonels were completed (for summaries, see
ers to work for transcendental goals that go beyond im- Bass, 1985; Bass & Avolio, 1993b). The factor studies
mediate self-interests. What is right and good to do be- suggested that the transformational statements could be
comes important. Transformational leaders move follow- assigned to four interrelated components: Idealized In-
ers to transcend their own self-interests for the good of the fluence (or Charisma), Inspirational Motivation, Intellec-
group, organization, or country. Transformational leaders tual Stimulation, and Individualized Consideration. The
motivate followers and other constituencies to do more transformational components are intercorrelated. Never-
than they originally expected t o do as they strive for theless, they are assessed separately because they are
higher order outcomes (Bums, 1978). Self-interested conceptually distinct and important for diagnostic pur-
pseudotransformational leaders may impress their fol- poses: Analogously, anxiety and depression correlate
lowers in the same way, but their own purposes are clearly highly but need to be treated differently. The transforma-
different and are likely to be exploitative rather than tional components are as follows:
uplifting.
Until 1980, experimental and survey leadership re- Idealized Influence (Charisma)--leaders display conviction;
search was limited mainly to the effects of leadership on emphasize trust; take stands on difficult issues; present their
lower order changes with leaders and followers at lower most important values; and emphasize the importance of pur-
pose, commitment, and the ethical consequences of decisions.
levels of organizations or in temporary g r o u p s m a reason Such leaders are admired as role models generating pride, loy-
that made more appealing explanations in terms of simple alty, confidence, and alignment around a shared purpose. A
cost-benefit exchanges. The new paradigm of transfor- subjective component of attributed charisma may spin off from
mational and transactional leadership paralleled comple- idealized influence, a behavioral component, for a fifth transfor-
tion of more leadership research at the higher levels of mational component. (Components better describe the concep-
organizations and intrinsic motivation. The old paradigms tually but not empirically distinct constructs. The same leaders
of task-oriented or relations-oriented leadership, directive tend to be high or low in each, but the behaviors involved are
or participative leadership, and autocratic or democratic different and require different remediations.)
leadership and related exchange theories of leadership Inspirational Motivation--leaders articulate an appealing vi-
ignored effects on leader-follower relations of the shar- sion of the future, challenge followers with high standards, talk
ing of vision, symbolism, imaging, and sacrifice. optimistically with enthusiasm, and provide encouragement and
meaning for what needs to be done.
Empirical Support for Universality Intellectual Stimulation--leaders question old assumptions,
Development of the Multifactor Leadership traditions, and beliefs; stimulate in others new perspectives and
Questionnaire ways of doing things; and encourage the expression of ideas
and reasons.
In 1980, 70 South African senior executives were asked
if they could identify someone in their lives who had Individualized Consideration--leaders deal with others as indi-
raised their consciousness; elevated their motivation on viduals; consider their individual needs, abilities, and aspira-
Maslow's (1954) hierarchy of needs; or moved them to tions; listen attentively; further their development; advise; teach;
go beyond their self-interests for the good of their group, and coach.
organization, or society. (These effects were Burns's Transactional leadership, using a carrot or a stick, con-
[1978] definition of the transforming leader.) All were tains three components usually characterized as instru-
able to do so. After identifying such an individual, the mental in followers' goal attainment.

February 1997 • American Psychologist 133

 Contingent Reward--leaders engage in a constructive path- tor structure. These results have been replicated with a
goal transactionof reward for performance.They clarify expec- total of 3,786 cases from 14 samples using MLQ-5X
tations, exchange promises and resources for support of the (Avolio, Bass, & Jung, 1996).
leaders, arrange mutuallysatisfactoryagreements, negotiate for Many factor analyses have been completed for data
resources, exchangeassistance for effort, and provide commen-
dations for successful follower performance. from the United States and abroad. Koh (1990) found a
similar factor structure for Singaporean school princi-
Active Management by Exception--leaders monitor followers' pals. Included were Charisma-Inspiration, Intellectual
performance and take corrective action if deviationsfrom stan- Stimulation, Individualized Consideration, Contingent
dards occur. They enforce rules to avoid mistakes. Reward, Active and Passive Management by Exception,
and Laissez-Faire Leadership. Garcia (1995) produced
Passive Management by Exception--leaders fail to intervene
until problems become serious. They wait to take action until similar results with U.S. salespeople; and Druskat (1994)
mistakes are brought to their attention. did so with Roman Catholic clergy. Nonetheless, particu-
larly when abbreviated scales were used, as at the U.S.
Laissez-Faire Leadership, a nonleadership component, also Air Force Academy (Curphy, 1990) and in a Dutch study
emerges--leaders avoid acceptingtheir responsibilities, are ab- (Den Hartog, Van Muijen, & Koopman, 1994), fewer
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sent when needed, fail to follow up requests for assistance, and

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factors could emerge as factor solutions. Minimally, a

resist expressing their views on important issues. Before the composite transformational factor and active and passive
MLQ Form 5 was revised, an unpublished factor analysis Of 4 transactional,factors were likely to appear in these diverse
of the 10 items such as "avoids interfering with the way I do
my job" could be seen as empowering subordinates rather than studies. Nonetheless, LISREL analyses involving 3,786
as laissez-faire leadership (Bass, 1996). cases indicated that a more complex model of seven fac-
tors including Charisma-Inspiration, Intellectual Stimu-
According to a higher order factor analysis, the factors lation, Individualized Consideration, Contingent Reward,
can be ordered from highest to lowest in activity as fol- Active and Passive Management by Exception, and
lows: Transformational Leadership, Contingent Reward, Laissez-Faire Leadership best fit the data in contrast to
Active Management by Exceptions Passive Management factor solutions with fewer factors (Avolio et al., 1996).
by Exception, and Laissez-Faire Leadership (Bass, 1985).
Correspondingly, confirmed subsequently in an array of
The Universality of Three Propositions
empirical studies, as noted in the first corollary that is Three corollaries for the theory underlying the model
presented, the components can also be ordered on a sec- were presented by Bass and Avolio (1993b). With each
ond dimension--effectiveness. Transformational Leader- corollary, some of the supporting empirical work is
ship tends to he most effective, followed in order of noted, which was completed in different countries and
effectiveness by Contingent Reward, Active Management types of organizations to suggest that variform, func-
by Exception, Passive Management by Exception, and tional, and systematic universals are involved.
Laissez-Faire Leadership (Avolio & Bass, 1990). The first corollary is that there is a hierarchy of
In the numerous factor analyses that have been re- Correlations among the various leadership styles and out-
ported, consistent with the original research (Bass, 1985; comes in effectiveness, effort, and satisfaction. Transfor-
Bycio, Hackett, & Allen, 1995), Charismatic and Inspira- mational leaders are more effective than those leaders
tional Leadership form a single factor. Sometimes a trans- practicing contingent reward; contingent reward is some-
formational factor appears. The boundaries between Con- what more effective than active management by excep-
tingent Reward and Individualized Consideration also tion, which in turn is more effective than passive manage-
may blur. Although both involve helping fulfill the needs ment by exception. Laissez-faire leadership is least effec-
of followers, Individualized Consideration focuses more tive. The patterns are similar for extra effort and for
attention on personal growth and recognition, whereas satisfaction with the leadership. The hierarchy remains,
Contingent Reward attends more to promising or provid- but is less steep, when objective, independent outcome
ing material rewards and resources. criteria of effectiveness are used.
A survey of empirical analyses and three meta- The corollary, first verified in the United States
analyses (Gaspar, 1992; Lowe, Kroeck, & Sivasubraman- (Waldman, Bass, & Einstein, 1986), is applicable to re-
iam, 1996; Patterson, Fuller, Kester, & Stringer, 1995) suits from India, Spain, Singapore, Japan, China, Austria,
suggested that, generally, the MLQ components of Trans- and a number of other countries. In Bombay, Dennyson
formational Leadership correlate highly (.50 to .80) with Pereira (1986) found general support for the correlational
each other but less so with Contingent Reward (.30 to hierarchy for managers in a large manufacturing organi-
.50). They correlate near zero with Management by Ex- zation, as did Roherto Pascual in Bilbao, Spain; Jaime
celXion and moderately to highly negative with Laissez- Filella in Barcelona, Spain; Roger Gill in Singapore;
Falre Leadership. Nokko Yokochi in Japan (Yokochi, 1989); Steyrer and
Howell and Avolio (1993) used partial least squares Mende (1994)in Austria in diverse sectors of business
regression analysis with data collected on MLQ Form 10 and industrial management; and Davis, Guan, Luo, and
from a sample of 250 executives rated by their direct Maahs (1996) in a Chinese state enterprise.
reports, which supported the discriminant and convergent To illustrate, 120 Austrian branch bank managers
validity of a complex transactional-transformational fac- and their subordinates who described them completed

134 February 1997 • American Psychologist

 the MLQ in German. Significant correlations were found been less so, judging from a meta-analysis by Gaspar
between the extent to which the managers were perceived (1992) that compared military and civilian MLQ results.
as transformational rather than transactional and the ex- Gaspar's (1992) meta-analysis of MLQ findings in-
tent to which their banks increased subsequently in cus- volved 957 military respondents with 577 to 2,141 civil-
tomer market share and several other criteria of customer ian counterparts describing their superiors. Overall, the
business. hierarchy of correlations with objective outcomes and
The same kind of results were reported for Federal perceived effectiveness was elevated in the military re-
Express managers in the United States (Hater & Bass, spondents as compared with civilians. For the military
1988) and for financial executives in Canada (Howell & respondents, the mean correlation of the MLQ transfor-
Avolio, 1993). A similar hierarchy of correlations mational factor scores with objective performance ranged
emerged for New Zealand professionals and administra- from .46 to .57. The comparable results for the civilians
tors (Bass, 1985), U.S. nursing administrators (Arnold, ranged from .26 to .29. For the military personnel, objec-
1990), and U.S. religious ministers (Onnen, 1987). Simi- tive performance correlated .46 with contingent reward;
lar hierarchical results have been reported in the profit the comparable result was .20 for the civilians. Objective
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and nonprofit sectors for middle managers in the United performance correlated .26 with active management by
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States, Canada, Belgium, Japan, and elsewhere (Bass & exception for the military respondents and -.27 for the
Avolio, 1993b)and for the military in the United States, civilians. The correlation was .32 with passive manage-
Canada, and Germany (Boyd, 1988). ment by exception for the military respondents and -.07
Between 1989 and 1993, in Italy, Avolio and I sys- for the civilians. When perceived effectiveness was the
tematically collected immediate subordinates' MLQ rat- criterion outcome, the correlations were elevated (partly
ings of Fiat's senior managers (Bass & Avolio, 1990, because of the bias of same-source variance). Military
1991, 1994). For almost 200 of the senior executives transformational leadership components correlated from
described by their 1,032 immediate subordinates, the hi- .51 to .75 with perceived effectiveness. For the civilians,
erarchy of correlations held up. The same was true for the correlations were from .47 to .57. The military-
30 senior managers of Swedish multinationals described civilian differences in mean size of correlations with out-
by their subordinates and for 500 participants in training comes and the reverse direction with management by
in the Binghamton, New York, area coming from 10 dif- exception pointed to a variform, not a simple, universal
ferent types of organizations such as business, education, in the leadership-outcome correlations.
health care, government, law enforcement, and social The second corollary is that there is a one-way aug-
services. mentation effect. When stepwise regression is used, mea-
Lowe et al. (1996) completed a meta-analysis in- sures of transformational leadership add to measures of
volving from 1,295 to 5,475 cases. The hierarchy of cor- transactional leadership in predicting outcomes, but not
relations emerged for results based on subordinates' rat- vice versa. Definitive analyses supporting the augmen-
ings as well as for those based on organizational out- tation effect were completed with a representative sample
comesmindependent performance appraisals, career of U.S. Navy officers using retrospective outcomes (Yam-
advancement, performance of the units led, and so forth. marino & Bass, 1990) and Canadian managers using out-
Results were the same for both published and unpub- comes collected a year after the measurements of leader-
lished reports. ship (Howell & Avolio, 1993). Comparable results were
I do not wish to imply that one has here a functional obtained in India (Pereira, 1986) and the Dominican Re-
universal that is invariant. On the contrary, it is a variform public (Davis, 1994). In Singapore, Koh (1990) found the
functional universal when samples can be compared augmentation effect generalized for 90 secondary school
where everything but nationality is controlled (Boyd, principals when the criteria predicted by transformational
1988). Although the overall order of effects generally leadership added to transactional leadership were com-
remained, variations appeared in the size of the differen- mitment and satisfaction. However, it failed to do so when
tial correlations. Boyd compared 700 North Atlantic the criteria involved turnover or academic performance.
Treaty Organization (NATO) field grade officers. Al- The augmentation effect appears to be a variform func-
though transformational leadership did remain more tional universal.
highly correlated with effective outcomes than did trans- The third corollary is that in whatever the country,
actional leadership, with these military data, contingent when people think about leadership, their prototypes and
reward was less effective and management by exception ideals are transformational. Supportive evidence comes
was more effective than usually obtained with civilian from a variety of sources: (a) Bass and Avolio (1989)
samples. The pattern for Canadian officers was particu- showed that Lord's prototype leader was correlated with
larly divergent from U.S. and German results in that Ca- transformational, not transactional, leadership in an
nadian transactional leadership correlated close to zero American sample. (b) In training efforts in various types
with effectiveness. Although passive and active manage- of organizations and participants from the United States,
ment by exception were not separated in Boyd's scoring Canada, South Africa, Spain, Austria, Sweden, Italy, Is-
of the data, active management by exception undoubtedly rael, and elsewhere, an exercise has been conducted rou-
would have been more highly correlated with effective- tinely in:the Full Range of Leadership Development Pro-
ness and passive management by exception would have gram with several thousand participants (Avolio & Bass,

February 1997 • American Psychologist 135

 1990). Participants are asked to describe an ideal leader tures and agreed with Adler (1984) that the devil is in
who has been of consequence to them in their own lives. the details. Thus, the impact of charismatic leadership
The traits and behaviors that are mentioned to describe on employee satisfaction was greater on the American
the leader are almost invariably transformational, not employees for whom correlations of .50 and .70 were
transactional. (c) Using the MLQ items as a preference found, as compared with correlations of .29 and .57 for
survey, Chinese police and Taiwanese company employ- the Mexican employees (Dorfman & Howell, 1988).
ees chose transformational rather than transactional lead- (Some of the darker history of charismatic Mexican polit-
ership (Singer & Singer, 1990). (d) When U.S. undergrad- ical leaders may have lowered the Mexican results.) U.S.
uates were asked to list up to 25 traits of leadership, employees also generated higher correlations between
the MLQ-like transformational factors emerged. Their contingent reward and the measures of satisfaction with
implicit traits of leadership included charismatic, dedi- work and with supervision (.48 and .73, respectively) in
cated, intelligent, and sensitive (Offerman, Kennedy, & contrast to the Mexican employees (.19 and .58,
Wirtz, 1994). respectively).
Although the three corollaries appear to be univer- In Indonesia, inspirational leaders boast about their
This article is intended solely for the personal use of the individual user and is not to be disseminated broadly.

sal, this does not mean the levels of perceived leadership own competence to create pride and respect in them-
This document is copyrighted by the American Psychological Association or one of its allied publishers.

in self and others will be invariant among the different selves. In so doing, such transformational leaders aim to
nationalities. For instance, among Boyd's (1988) NATO reduce subordinates' feelings of fear and shame. But, it
officers, contingent reward was less effective for Cana- would be unseemly for leaders to be so boastful in Japan.
dian officers than for German or American officers. Self- There are cultural contingencies in manifesting indi-
ratings in Japan were not as inflated as they are in the vidualized consideration. According to interviews by Yo-
United States or Europe (Yokochi, 1989). The size of kochi (1989) with 17 Japanese CEOs of some of the
the means, variances, and correlations will vary to some largest Japanese firms and MLQ questionnaire surveys
degree, yet the overall patterns of results generally remain of 135 Japanese managers at levels below them, effective
the same everywhere. For instance, in Sri Lanka, the Japanese executives tended to be much more transforma-
leader stereotype is a Ceylonese John Wayne, a hard tional than transactional, The three corollaries held up.
task master, or a benevolent dictator. Nevertheless, when Nonetheless, although the concepts and components of
Weathersby (1993) asked 44 Sri Lankan managers to transformational and transactional leadership transfer, the
reflect individually and collectively about their experi- specific behaviors involved may be different, particularly
ences, over time they ended up espousing transforma- as one crosses into the non-Western word. In Yokochi's
tional approaches. study, the transformational factor of Individualized Con-
The three corollaries were found to hold when the sideration emerged from a different set of items in Japan
MLQ was presented in translation in various European because such consideration is expected from one's super-
and Asian languages. One unpublished Chinese version visor as a matter of course, although it remains unspoken.
of MLQ Form 5 suitably backtranslated was used in an The mutual obligation between the leaders and the fol-
unpublished study of managerial motivation in the Peo- lowers in collectivistic cultures facilitates the transforma-
ple's Republic of China by Wang Ming Xhou. Another tional leaders' individualized consideration. Leaders in
independently translated, unpublished version of Form 5 collectivistic cultures likewise already have a moral re-
by Singer and Singer (1990) and an unpublished Chinese sponsibility to take care of their subordinates, to help
version of Form 5X by Li Baiqing were modified and them prepare a career development plan, to attend their
used by Davis et al. (1996) in a Chinese state enterprise. funeral ceremonies and birthday parties, and to counsel
Translations have been made of the MLQ in Spanish followers about personal problems. In turn, subordinates
(Molero Alonso, 1994; replicated in Venezuela, Mexico, have a moral obligation to reciprocate with unquestioning
the Dominican Republic [Davis, 1994], and Puerto Rico), loyalty and obedience. Indeed, transformational leader-
French (duplicated in Quebec, Canada, and France), Ital- ship may be far more pervasive in collectivistic societies
ian (Aparo, 1993), German (Steyrer & Mende, 1994), than in the individualistic societies of the West (Jung,
and Dutch (Den Hartog et al., 1994), as well as other Bass, & Sosik, 1995).
languages more distant from English, such as Hebrew, Transformational leadership may be autocratic and
Arabic (Al-Anazi, 1993), and Japanese (Yokochi, 1989).. directive or democratic and participative. Leaders can be
Nonetheless, although the concepts and components of intellectually stimulating to their followers when they
transformational and transactional leadership transfer, the authoritatively direct the followers' attention to a hidden
specific behaviors involved may be different, particularly assumption in their thinking. Leaders could also be intel-
as one crosses into the non-Western world. lectually stimulating when they ask whether their group
would be ready to look together for hidden assumptions.
Cultural Contingencies In the individualistic societies of North America, more
Variform universals and variform functional universals participative leadership would be expected of its transfor-
still leave room for contingency analyses to assess how mational leaders. In the collectivistic societies of Asia,
much situational context affects the general means, vari- more directiveness would be expected of its transforma-
ances, and correlations. Dorfman (1994) cautioned about tional leaders. How participative or directive the transfor-
applying U.S.-developed leadership models to other cul- mational leaders will be--how much they will depend

136 February 1997 • American Psychologist

 on authority--would also depend on the issue involved. Kennedy (1994) found an outlier within the sample
One would expect to see more authoritative transforma- of offshore oil platform supervisors when he obtained
tional leadership when policy decisions rather than work- onshore bosses' ratings of the offshore supervisors, plat-
place decisions are being made. form by platform. Generally, the expected positive corre-
Contingent reward may be the least universal com- lations were obtained between boss-rated performance
ponent in concepts, behaviors, and effects. As noted ear- of the supervisors on a platform and the supervisors'
lier, there was no beritability effect in the display of transformational leadership according to their subordi-
contingent reward (T. Vernon, personal communication, nates, but the correlation was -.57 for the boss-rated
March 31, 1995). Also, it seems to be particularly contin- performance and the transformational supervisors' be-
gent on the way superior-subordinate relations are orga- havior according to subordinates on one of the platforms.
nized in different countries and on the idiosyncrasies of The result may have been due to a distant, tough, no-
national history. Japan, India, Britain, and Egypt provide nonsense onshore boss rating the supervisors on the basis
illustrations of the divergences. In the West, performing of his view of appropriate management. In the same way,
better than other members of one's team is ordinarily Kennedy found that the mean for management by excep-
This article is intended solely for the personal use of the individual user and is not to be disseminated broadly.

commendable. Contingent reward may be expected as a tion for offshore North Sea oil platform supervisors was
This document is copyrighted by the American Psychological Association or one of its allied publishers.

matter of equity. In Japan, it may be a cause for dishar- much higher than for civilian norms in general. Kenne-
mony and loss of face. Pay differentials are small and dy's finding is understandable if one appreciates how, as
along with promotions are not by one's immediate supe- in the military, a premium is placed on safety and effec-
rior but by the amorphous company, consistent with its tive reaction to emergencies.
standards, values, history, and traditions. In India, im-
plicit is the preference of many subordinates for a depen- Universality or Specificity?.
dent personal relationship rather than a contractual one Many situational contingencies may be posed as variform
with their leader (Sinha, 1984). Earley (1988) noted that functional universals that raise or lower the means, vari-
English workers do not value praise, criticism, and gen- ances, and correlations with outcomes. But the issue re-
eral conversation with their superiors as much as do mains as to whether the portion of the accountable vari-
workers in the United States and Ghana. English workers, ance due to a contingent situation remains small, although
therefore, are likely to be less responsive to contingent interesting, or becomes so large as to call into question
rewards. In particular, those in heavy industry distrust the argument endorsing the universality of transactional-
feedback from their supervisors. Perhaps contingent re- transformational behaviors and their effects.
ward needs to be sought in the English workers' interac- The cultural as well as organizational influences
tions with their shop stewards. Egypt is dominated by on leadership and interpersonal behavior are well-
large public organizations. These are highly structured documented (Bass, 1990). Differences in cultural beliefs,
and centralized bureaucracies with little room for super- values, and norms moderate leader-follower relations.
visors to practice contingent rewarding (Badran & Hin- Nonetheless, certain generalizations appear warranted.
ings, 1981).
Transformational leadership tends to be more effective
Organizational Contingencies and satisfying than contingent rewarding, contingent re-
warding is more effective andsatisfying than managing
Mechanistic organizations were expected to reveal more by exception, and managing by exception is more effec-
individual transactional leaders and organic organizations tive and satisfying than laissez-faire leadership. Transfor-
more individual transformational leaders (Bass, 1985). mational leadership tends to addto the effects of transac-
However, Singer and Singer (1990) failed to find such tional leadership, not substitute for the latter. The ideals
differences when results for members of police organiza- and implicit theories of leadership tend to be transforma-
tions were compared with those in business firms in New tional rather than transactional. Borrowing from Podsa-
Zealand and Taiwan. But, the three corollaries tend to koff, MacKenzie, Moorman, and Fetter (1990) and
hold up across organizations, with a few exceptions. Or- Shamir, House, and Arthur (1993), to refute the transac-
ganizational outliers have appeared on occasion when tional-transformational distinction will require finding
multiple samples of data have been collected in different conditions, cultures, and organizations in which trust be-
units or organizations. Thus, in all but 1 of the 14 samples
tween the leader and the led is unimportant and the led
mentioned earlier, analyzed by Avolio et al. (1996), the have no concern for self-esteem, intrinsic motivation,
usual expected strong correlation emerged between the consistency in self-concept, actions taken for the leader,
leader's inspirational motivation and satisfaction with the
or meaningfulness in their work and lives. Such contexts
leader. Thirteen samples generated correlations greater are likely to prove to be the exception rather than the
than .60. In 1 sample, an unexpected correlation of -.21 rule.
appeared! There is a possible explanation. The outlier
sample consisted o f professional economists working in
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