SPAEF

TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL CULTURE

Author(s): BERNARD M. BASS and BRUCE J. AVOLIO
Source: Public Administration Quarterly, Vol. 17, No. 1 (SPRING, 1993), pp. 112-121
Published by: SPAEF
Stable URL: http://www.jstor.org/stable/40862298 .
Accessed: 11/04/2013 09:20

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .
http://www.jstor.org/page/info/about/policies/terms.jsp

.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of
content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms
of scholarship. For more information about JSTOR, please contact support@jstor.org.

SPAEF is collaborating with JSTOR to digitize, preserve and extend access to Public Administration
Quarterly.

http://www.jstor.org

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
TRANSFORMATIONAL LEADERSHIP
AND ORGANIZATIONAL CULTURE
BERNARD M. BASS
BRUCE J.AVOLIO
SUNY- Bmghamton

INTRODUCTION

The organization's culture developsinlargepartfromitsleader-

ship while the culture of an organizationcan also affect thedevel-
opment of its For
leadership. example, transactional leaders work
within theirorganizational culturesfollowing existing rules,proce-
dures,and norms;transformational leaderschangetheircultureby
firstunderstanding it andthenrealigning theorganization's culture
witha newvisionanda revision ofitssharedassumptions, values,
andnorms(Bass,1985).
Effective organizations requirebothtacticaland strategic think-
ing as wellas culturebuilding byitsleaders. Strategicthinking helps
to createandbuildthevisionofan agency's future.The visioncan
emergearidmoveforward as theleaderconstructs a culturethatis
dedicated to supporting thatvision.The culture is thesetting within
whichthevisiontakeshold.In turn,thevisionmayalso determine
thecharacteristicsoftheorganization's culture.
Transformational leadershavebeencharacterized byfoursepa-
ratecomponents orcharacteristics denotedas the4 Is oftransforma-
tionalleadership (Avolio,Waldman, andYammarino (1991).These
fourfactorsincludeidealizedinfluence, inspirational motivation,
intellectualstimulation, and individualized consideration. Transfor-
mationalleadersintegrate creativeinsight, and
persistence energy,
intuitionandsensitivity totheneedsofothersto "forge thestrategy-
culturealloy"fortheirorganizations. In contrast,transactional
leadersarecharacterized bycontingent reward andmanagement-by-
of
exceptionstyles leadership.Essentially, transactional leaders
or
developexchanges agreements with theirfollowers, pointing out
whatthefollowers willreceiveiftheydo something right as wellas
wfong.Theyworkwithin theexisting culture,framing their decisions

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
FAQ SPRING 1993 (113)

and actionbased on the operativenormsand procedurescharacter-

izingtheirrespectiveorganizations.
In a highlyinnovativeand satisfyingorganizationalculturewe are
likelyto see transformational leaderswhobuildon assumptionssuch
as: people are trustworthy and purposeful;everyonehas a unique
contributionto make; and complex problems are handled at the
lowestlevelpossible.Leaders who buildsuchculturesand articulate
themto followerstypicallyexhibita sense of vision and purpose.
They align othersaround the vision and empowerothersto take
greaterresponsibility forachievingthevision.Such leaders facilitate
and teach followers.They fostera cultureof creativechange and
growthratherthanone whichmaintainsthe statusquo. They take
personalresponsibility forthedevelopmentof theirfollowers.Their
followersoperate under the assumptionthat all organizational
membersshouldbe developedto theirfullpotential.
There is a constantinterplaybetween cultureand leadership.
Leaders create mechanismsforculturaldevelopmentand the rein-
forcement of normsand behaviorsexpressedwithinthe boundaries
of the culture.Culturalnormsarise and change because of what
leadersfocustheirattentionon, how theyreactto crises,the behav-
iors theyrole model,and whomtheyattractto theirorganizations.
The characteristicsand qualities of an organization'scultureare
taughtbyitsleadershipand eventually adoptedbyitsfollowers.
At one extremea leader accepts no deviationfromstandard
operatingprocedures,managing-byexceptionin a highlytransac-
tional fashionwhile at the otherextremeanotherleader rewards
followerswhen theyapplyrules in creativeways or if theybreak
themwhen the overallmissionof the organizationis best served.
How leaders react to problems,resolve crises,rewardand punish
followersare all relevantto an organization's cultureas well as how
the leader is viewedboth internally by followersand externallyby
clients/customers.
To reiterate,thecultureaffectsleadershipas muchas leadership
affectsculture.For instance,a strongorganizationalculture,with
values and internalguides formore autonomyat lower levels, can
preventtop administration fromincreasingitspersonalpowerat the
expense of middle-leveladministration. On a morespecificlevel,the
culturecan affecthowdecisionsare made withrespectto such areas
as recruitment, selection,and placementwithintheorganization.
Leaders need to be attentive to the conservativenessreflectedin
beliefs,values,assumptions, rites,and ceremonies embedded in the

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
 (114) PAQ SPRING 1993
culture thatcanhinder effortstochangetheorganization. Theyneed
tomodify of
keyaspects culture, whenitis possibleto do so, to fit
withnewdirections desiredbytheleadership andmembership ofthe
For
organization. example, they can invent new ritesto replacethe
old,someofwhichsymbolize thevalueofchangeitself. An example
is theceremonial introduction ofa newproductor processto re-
place an olderone. As organizations moveacrosstime,external
constraintschangeforcing thecompany toquestion itsdeeplyrooted
assumptions andvalues.
As newmembers arebrought intotheorganization, theytoowill
oftenchallenge deeplyheldassumptions eventhoughorganizations
oftenhirepeoplewhohavesimilarvaluesto thosedominant in the
organizational culture.Consequently, it is incumbent upon the
leadersin theorganization to viewthedevelopment ofassumptions
andvaluesas anevolutionary process-aprocessbywhichtheorgan-
izationanditsmembership periodically
question itsassumptions and
changethemiftheconditions warrant suchchange.
Earlyin itsdevelopment, an organizational cultureis the"glue"
thatholdstheorganization togetheras a sourceofidentity and dis-
tinctive
competence (Bass,1991).Unfortunately, inan organization's
decline,itsculturecan becomea constraint on innovation sinceits
rootsareintheorganization's pastglories.
ORGANIZATIONAL FOUNDERS AND CULTURE

Organizationalcultures are oftenthecreationoftheirentrepre-

neurialfounders. Foundersoftencreatean organizational culture
froma preconceived "culturalscheme"in theirhead.Typically,
the
founder's andhisorhersuccessor's leadershiphelpsshapea culture
ofsharedvalues and assumptionsguidedand restrictedby the
founders' personalbeliefs.
The successor failure
ofan organization
dependson therelevanceofthefounder's beliefsto
philosophical
thecurrent and constraints
opportunities the
confronting organiza-
tion.
Somefounders originate agencyculturesthattheymustleaveto
othersto manage.However,in general,thefactsare otherwise.
AmongtheCEOs ofthefastestgrowing companiesin theUnited
Statesin the1980s,three-fourthswerefounders oftheircompanies
and83 percent nevermadeplansto retire. Theyremained on until
theydiedleadingtheirorganizations.
To accomplishtheneededchanges inan organization's it
culture,

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
FAQ SPRING 1993 (115)
is essentialfortopadministration thechangethatis
to articulate
required.The messagemaybe ofa visionthatentailsthetypeof
leadershiptheorganizationshouldbe known forinitsintentionsand
behaviorswithfollowers. An organization thatwantsto tap the
expertiseofitsmembers tothefullest
mayhighlightits"consultative"
styleofleadership.Changes, withthismessage,are intro-
consistent
ducedinthedailypractices oftheorganization.Desiredrolemodels
ofleadership beginat thetopandareencouraged at eachsuccessive
levelbelow.The behaviors oftoplevelleadersbecomesymbols of
theorganization'snewculture.Storiesarecreatedaroundtheleader
andmechanisms aredeveloped toimproveupward communication.

Leaderswhoare concernedaboutorganizational renewalwill

seektofoster organizationalcultures
thatarehospitableandcondu-
civeto creativity,
problem risktaking,
solving, and experimentation.
First,thereis an articulation
ofthechangesthatare desired.Next,
thenecessarychangesin structure, processes,and practicesare
madeand are widelycommunicated throughout theorganization.
Finally,new role and behavioralmodels are and rein-
established
forced thatbecomesymbols ofthe"new" culture.

Whentrying to promoteculturalchangesin an organization,

leadersshouldfirst understand andrespectthepast,returning to it
forinspiration,
instruction, and of
identification pastobjectives,
prin-
ciples,andstrategies thatstillmustbe maintained. Gardner(1990)
pointedout thatleadersneed to understand and appreciatethe
of and for
"interweavingcontinuity change" long-term purposesand
values.Promotions shouldbe madetoensurethattheseoldervalues
cansurvive despitethenecessary changes.Valuesoftrusting your
and will
people respect hopefully transcend time.Ceremonial events
maybe neededtomourn thelossofthe"oldwaysofdoingthings." A
act the
symbolic whereby organization makes a clearbreak withits
pastcandramatically influenceitsculture.
Finally,changes should developbyproviding reinforcement for
innovativeeffortsthatare attempted and successful,whichfitwith
thenewmissionor visionfortheorganization. Trusting thatthe
founder'svisionoftheorganization's culturewilltranscendtimeis at
besta questionable assumption and,atworst, thebasisfororganiza-
tionalobsolescence. The truly great founders oforganizationsbuilt
intotheircultures theneedto questioneventheirbeliefs,assump-
tions,andvalues... andtochangethemwhenneeded.

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
(116) FAQ SPRING 1993

TOWARDS A TRANSFORMATIONAL CULTURE

Whilewe can describean idealor "pure"transactional organiza-

tionalcultureand a "pure"transformational one, it is clear that
organizations are likelyto haveculturesthatare characterized by
bothstylesofleadership. The authors'argument is thatorganiza-
tionsshouldmoveinthedirection ofmoretransformational qualities
in theircultures whilealso maintaining a base of effective transac-
tionalqualities.
A "pure"transactional culture focuseson everything in termsof
explicitandimplicit contractual relationships. Alljob assignments
spelledoutalongwithconditions
areexplicitly ofemployment, disci-
plinary codes,andbenefit structures. Stories,rites,jargon,values,
assumptions, reinforcement systems in the transactional organiza-
tionalculturedependon setting a priceon everything. Everyone has
a pricerequired forhis/her motivation to work.Thereis a priceon
everything.Commitments areshort-term. Self-interests arestressed.
Internally,theorganization is a marketplace comprised of indi-
vidualsinwhicheachindividual's rewardis contingent on hisor her
performance. Management-by-exception is oftenactively practiced.
Employees work as independentlypossiblefromtheircolleagues.
as
Cooperationdependson negotiations not problemsolvingor a
common mission. Commitment is as deepas theorganization's abili-
tyto reward members for successful performance.
Thereis littleidentification oftheemployees withtheorganiza-
tion,itsmission or vision. are
Superiorsprimarily negotiators and
resourceallocators. Relatively few behaviors are determined bythe
normsoftheorganization, unlessthosenormsreflect thetransac-
tionalbasisfordoingbusiness intheorganization. Levelsofinnova-
tionandrisktaking be
may severely curtailed in thistypeoforgani-
zationalculture.
In a transformational culture, one fittingwiththemodelofthe
fourIs, thereis generally a senseofpurposeanda feeling offamily.
Commitments are long-term. Leadersandfollowers sharemutual
interestsanda senseofsharedfatesandinterdependence. A trans-
formational culturelikeleadershipcan buildon or augmentthe
cultureof theorganization.
transactional The inclusion of assump-
tions,norms,and values which are transformationally doesnot
based
preclude individualspursuing owngoalsandrewards.
their Thiscan
occurat the same timewherethereis alignment witha central
purposeand thecoordination requiredto achieveit.Leadersand

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
FAQ SPRING 1993 (117)

3
g

¿ à a * O

sI
s I
+ p* I£ 2; m
oi en

P
»u
Se

ICO «E1 Ü ¿*•

«
C§ *>g
° §3
roll Wa

onn
zdd

s e s si' II"
a. tJ ^ •«■ á
>o
»S
to *-• mo

*
►d a O !á

ai tf | ¡¡
tí ri tí © 2Î »r*

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
(118) PAQ SPRING 1993

followersgo beyondtheirself-interests rewardsforthe

or expected
goodoftheteamandthegoodoftheorganization.
Superiorsserveas mentors, coaches,rolemodels,and leaders,
members
socializing intotheculture, becausethey
notnecessarily
are expectedto do so butbecausetheyfeela personalobligationto
helpnewmembers intotheculture.
assimilate Thereis a richsetof
normswhichcovera widerangeofbehaviors, normsthatwilladapt
to and changewithexternal changesin theorganization's environ-
ment.Thereis muchtalkat all levelsin the organization about
purposes, andmeeting
visions, challenges.
CULTURES
TYPOLOGYOF ORGANIZATIONAL

The OrganizationalDescriptionQuestionnaire(ODQ) is a 28
itemsurvey thatcanbe completed
questionnaire byall or a sample
ofmembers ofan organization.Fourteenitemsdeal withtransac-
tionalelementsin theculture's
assumptions,processesandexpecta-
tions.Forexample:

-everyone witheveryone
bargains elseforresources,
rules
-specific affordlittle fordiscretionary
opportunity behavior,
-yougetwhat youdeserve - no no
more, less.

Fourteenitemsdeal withtransformational
elementsof culture.
Forexample:

-peoplego outoftheirwayforthegoodoftheinstitution,
-webelieveintrustingeachothertodo theright
thing,
initiation
-individual is encouraged.

Twoparallelforms, A andB, havebeenconstructed to facilitate

resurveyingafterinterventions.The ODQ generates two overall
scores- theTransactional
CultureScore(TA) andtheTransforma-
maybe typedaccording
tionalCultureScore(TF). Organizations to
themeanscoresobtained whentheirmembers areaskedto describe
usingtheODQ as shownin Figure1 (based on
theirorganizations
answersof members, theircolleagues,and subordinatesin one
Each
organization). of thesetypescanbe described
as follows.
A predominantly
and moderatetransformational
organizational
bya highODQ transformational
culturetendsto be characterized
score.
leadership The morenegativethetransactional
ODQ score,

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
FAQ SPRING 1993 (119)

themoretheculture oftheorganization is regarded as one whichis

purelytransformational. At thisextreme, everyone is likelyto be
constantlytalking aboutpurposes, vision,values, fulfillment without
emphasizing theneedforformal agreements andcontrols. lack
The
oftransactional specifications maymakeit difficult to be certain
aboutwhatpeoplewilldo. Trustis internalized ratherthandepend-
enton formal agreements andcontracts. As thetransactional score
becomeslessnegative or evenslightly positive, theculture willplace
morevalueonagreements, exchanges, andrewards forperformance.
The increaseintransactional scoreleadsto a greater balancein the
organization'sculture.
Expressiveness is likelyto be highas in mosthigh-functioning
The organization's
families. structure is likely to be loose,decentral-
ized,andflat.The organization is flexible, adaptive, dynamic, infor-
mal,bottoms-up, withemphasison thepotentialof its individual
employees andtheorganization togrowandimprove itself. Creativi-
is
ty likely tobe high in this environment with particular emphasis on
questioning the methods used to accrue effective organizational
performance. Iftransactional scoresare extremely negative, new-
comersandoutsiders may have a problem knowing what to expect.
A high-contrast organizational culturetendsto be characterized
byhighODQ scoresin transformational leadership coupledwitha
similarhigh level of transactional leadership. hightransactional
The
scoreis likelyto moderatesomeaspectsof thetransformational
You are likely
culture. to see a greatdeal ofbothmanagement and
leadership in this organization with conflict over the best waysto
proceed. There is likely to be and
chafing battling against rules
the
andtheoldwaysofdoingthings, butmuchoftheconflict is likelyto
be constructive.Maintaining a balance between the two will require
trustintheindividual andorganization. Thiswillbe particularly true
wheretradeoffs mustbe madebetweenshort-term gain and individ-
ualrewards forthelong-term benefit ofthegroupandorganization.
Thisorganization is nothighly structured. Whatever getsdone
occurson thebasisofinformal leadership efforts. Predictability is
lowbutthereis somedegreeofflexibility shown.
A coastingorganizational cultureis neither extremely transfor-
mationalnorextremely transactional and fallsin themiddleof the
range.Externalcontrols, forexample,are balancedwithefforts
towards self-control.
Management and leadershipactivity tendsto be moderatein
amountandtheorganization is likely to coastalongbutdoesnotdo

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
(120) PAQ SPRING 1993

as wellas itmightwiththeresources
andopportunitiesitpossesses.
Littlechangeis expectedas theorganization puttersalong.This
patternmayrepresent thatis simply
an organization its
maintaining
currentposition.
to moderatecontractualorganizationalcultures
Predominantly
arecharacterizedas highly inorientation
transactional andlackingin
muchtransformational Self-interest
leadership. is moreimportant
thantheinterest ofthegroup.Each personwatchesoutforhis/her
and short-term
self-interests goalsprevail.Thereis muchattention
to controls,directions, and standardoperatingprocedures.The
organization tendstobe an internal
market wheremuchis negotiat-
ed according tothe"rulesofthegame."The organization'sstructure
is likely
tobe stable,centralized, andtallwitha cleartop-down
tight,
chain of command.Employeeshave littlediscretionand are
watched, andcontrolled.
driven, The organization
tendsto be rigid
andmechanistic.

The pedestrianorganization is moderately transactional with

littleor no transformational qualities.Littlegetsdonethatis nota
consequence offormalagreements. Littlechangeis observed. Risk
taking is avoided.There is a general sense ofstructure and proce-
durewhichcan takeon different formsdepending on thetransac-
tionalitemsthatwereidentified as trueintheODQ.
The organization is somewhat mechanistic. Leadershave and
practice little
discretion.
Work is routine. Thereis littlecommitment
totheorganization ortoothermembers. Iftherespondent answered
trueto itemslargelyrepresenting management-by-exception, the
structure canhighlightwhatis right versuswrong. Iftherespondent
answered truetoitemswhichweremoreoriented towardcontingent
reward, thenthestructure wouldhighlight theexchange ofeffort
and
goodperformance forrewards and recognition.
The garbagecan organizational culturetendsto be lackingin
eithertransactional or transformationalleadership.Consensusis
to
likely be absent.
Everybody "doestheirown thing."The organiza-
tionis a garbagecan offruitlessactivities.
Thereis verylittlecoop-
eration.Agendasdependon who showsup at meetingsand the
problems individuals
carryaroundwiththemwaiting foran arenain
whichto participate andto airtheirgrievances.
The organization is
anarchic withouteitherclearpurposes, and
visions, values or rules
andregulations tocontrolactivities.

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions
FAQ SPRING 1993 (121)

SUMMARY
The purpose of the authorswas to provide a frameworkfor
examiningorganizationalcultureswhichparallels the factorsthey
associatewitha broad rangeof leadershipbehaviors,e.g.,transfor-
mationalthroughtransactional and, to some extent,non-leadership.
Their measure to describe organizationalcultureprovidesan as-
sessmenttool fordeterminingan agency'sculturein termsof the
leadershipand itseffects
foundwithintheculture.
Currently,data are beingcollectedusingthe ODQ witha broad
array of communityorganizations to examine the connections
betweenleadership,organizational culture,and performance.Based
on priorresearch,the authorsexpect the more transformational
culturesto providethecontextformoreeffective organizationaland
individualperformance.

REFERENCES
Avolio, Bruce J.,David A. Waldman,and FrancisJ. Yammarino(1991). "The Four
I's of Transformational Leadership."JOURNAL OF EUROPEAN INDUSTRI-
AL TRAINING 15(4):9-16.
Bass, BernardM. (1991). STOGDILL AND BASS HANDBOOK OF LEADER-
SHIP. New York: Free Press.
(1985). LEADERSHIP AND PERFORMANCE BEYOND EXPECTA-
TION. New York: Free Press.
Gardner,John(1990). ON LEADERSHIP. New York: Free Press.

This content downloaded from 5.12.114.27 on Thu, 11 Apr 2013 09:20:55 AM

All use subject to JSTOR Terms and Conditions