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Transformational leadership is one of the most prominent contemporary leadership theories. Transformational leadership is defined as a process in which “leaders and followers raise one another to higher levels of motivation and morality” (Burns, 1978, p. 21). Transformational leadership theory is based on the idea of empowering others to engage in pursuing a collective purpose by working together to achieve a vision of a preferred future. This kind of leadership can influence0 both the leader and the follower to a higher level of conduct and achievement that transforms them both (Burns, 1978). Burns maintained that there are two types of leaders: the traditional manager concerned with day‐to‐day operations, called the transactional leader, and the leader who is committed to a vision that empowers others, called the transformational leader.

Transformational leaders motivate others by behaving in accordance with values, providing a vision that reflects mutual values, and empowering others to contribute. Bennis and Nanus (1985) describe this leader as a person who “commits people to action, who converts followers into leaders, and who converts leaders into agents of change” (p. 3). According to research by Tichy and Devanna (1986), effective transformational leaders identify themselves as change agents; are courageous; believe in people; are value driven; are lifelong learners; are able to negotiate complexity, ambiguity, and uncertainty; and are visionaries. Yet transformational leadership may be demonstrated by anyone in an organization regardless of his position (Burns, 1978). The interaction that occurs between individuals can be transformational and motivate both to a higher level of performance (Bass, 1985).

Transformational leadership at the organizational level is about innovation and change. The transformational leader uses vision based on shared values to align people and inspire growth and advancement. It is both the inspiration and the empowerment aspects of transformational leadership that lead to commitment beyond self‐interest, commitment to a vision, and commitment to action that creates change. Transformational leadership theory suggests that the relationship between the leader and the follower inspires and empowers an individual toward commitment to the organization.