Often managers are called to be more than just managers; they’re called to be leaders. Recent literature continues to blur the line between management and leadership. However, one theory stands out because of its potential to make clear cut distinctions between leaders and managers: Transformational Leadership theory.

Transformational Leadership is a relatively new approach to leadership that focuses on how leaders can create valuable and positive change in their followers. James MacGregor Burns first introduced the concept of transformational leadership when studying political leaders, but this term is now used when studying organizations as well. Burns described two leadership styles: transactional and transformational.

Transactional leaders focus on gaining compliance by giving and withholding rewards and benefits. Managers are typically transactional leaders, charged with gaining productivity and compliance from workers. Transformational leaders, instead, focus on “transforming” others to support each other and the organization as a whole. Followers of a transformational leader respond by feeling trust, admiration, loyalty and respect for the leader are more willing to work harder than originally expected. Another researcher, Bernard M. Bass, added to the work of Burns by explaining the psychological mechanisms that underlie transformational and transactional leadership. Bass’ work established that transformational leaders demonstrate four factors: individual consideration, intellectual stimulation, inspirational motivation (charismatic leadership) and idealized influence. If you’re called on to manage, then transact. If you’re called on to lead, then learn to be transformational.