Numerous types of leadership styles have been identified through various studies which help the leaders in managing the organisations. As identified by Burns'(1978), two of the most prominent leadership styles are transactional and transformational styles, which are also focus of this study. Leaders adopting a transformational leadership style try to persuade their followers by the means of motivation and personal development by aligning the needs of the followers to the organisational needs. This leads to enhance the subordinate's commitment towards the organisation and they become zealous for better performance. Considering the complex business environment, this sort of leadership style is often seen as ideal one to bring about the change in mind-set of the employees. On the contrary, the transactional leaders make use of momentary rewards, accolades and assurances which would cater to the immediate requirements of the employees. Such rewards and accolades are often provided in return of the performance and/or achievement of the employee towards a set goal (Avolio, B. J., Waldman, D. A., & Einstein, W. O. 1988). Organisations mostly look to establish a more transformational leadership styles as compared to the transactional one, yet there is a general notion among the researchers that both these leadership styles are transactional at one point or other. It is a primary requirement of an effective leader to be able to use the combination of short-term and long-term rewards as and when required keeping the organisational interests in mind (Banaszak-Holl, J., & Hines, M.A. 1996). .
Four dimensions can be attributed towards the transformational leadership style comprising of principle based influence, encouraging motivation, intellectual motivation, individual contemplation. These dimensions combined together form a leadership style through which a leader is able to articulate vision and motivate the employees, lead from front by setting examples for the employees to follow, motivate the for innovation and creativity, pay attention to the needs of each and every individual in order to attain the growth and goals of the organisation (Bogler, R.