The prime assumption is, that people will willingly follow a leader who inspires them.
The vision and passion of one man can transform his followers and together they can achieve great things.
Energy and enthusiasm are the tonics that get things done.
Nurturing original thought and expression is important.
Challenges bring out the best out of people.
The forces of great ideas, creativity and inspiration are more potent than any other material lure.
Pros: This effective leadership model will create an enthusiastic work atmosphere and it'll drive the organization with innovations. The fact that people are working through self motivation, will certainly guarantee higher output and efficiency. it'll naturally develop future leaders from the lot of followers. People will work for the leader, even if the monetary and other benefits offered are lesser, as they'll be inspired by his vision. Legacy of transformational leaders creates a line of mentor-proteges, that lead innovative waves in businesses.
Cons: This theory is totally based on the ability of the leader, to inspire the work force to put their best in. Leaders of organizations may not have the force of character to achieve that.
Situational Leadership
This is a leadership theory which says that neither a transactional leadership model. A transformational model of leadership will work in all situations and all the time. The philosophy of a leader should be flexible enough to adapt to situations and changing times. We need a mixture of transactional and transformational leadership techniques to get the job done. The basic idea behind this theory is that one must adapt strategy with changing conditions.
Pros: The situational leadership model adopts the best from the transactional and transformational models and so, is better suited for a world which constantly puts new leadership challenges. There may be some followers on whom the transactional theorywill work and some who could be motivated by transformational theory methods. A mixture of both techniques will work better. Every individual has a unique psyche, with a blend of talents, gifts, inhibition and insecurities. Some may be introverts or extroverts, while some may be in between these two polarizations. To bring out the best out of everyone, a leader must handle every one of them, according to their level of motivation and avoid using the same strategy toward everyone. Some need a nudge, some need rough treatment, some need constant encouragement and some need their egos to be deflated. A transformational leader is a good people person and instinctively senses the degree of motivation every team member needs.
Cons: With constantly changing strategies with time, a leader will find it difficult to implement new strategies on the go. A long term vision may elude him due to constant changes.
These leadership styles must be studied by every individual, who dreams of building an organization and leading people. The greatest resource of any organization is its people. Where people are respected and nurtured, great things happen.