0320238

An Empirical Analysis on Transformational Leadership in
Bangladesh
By
Rashid Rezoana
ID # 0320238
An Internship Report Presented in Partial Fulfillment

of the Requirements for the Degree
Bachelor of Business Administration
INDEPENDENT UNIVERSITY, BANGLADESH

August 31, 2006
An Empirical Analysis on Transformational Leadership in
Bangladesh
By
Rashid Rezoana
ID # 0320238
has been approved
August 2006
Mr. Shubhankar Shil.

Lecturer.
School of Business.
Independent University, Bangladesh.
August 31, 2006
Mr. Shubhankar Shil

Lecturer
School of Business
Independent University, Bangladesh
Dhaka
Subject: Submission of the internship report.
Dear Sir:
This is the most excellent time when I have the overwhelming experience of submitting the
internship report that I have prepared with the best of my skill and hard work. I joined Standard
Chartered Bank for the internship and worked on the Transformational leadership of the banking
sector in Bangladesh. This report has attempted to focus on the attributes, styles, influences,
developmental strategies and the process of becoming of transformational leaders. I have
prepared this report with the best feasible ways and have tried to make it as sound as possible.
Therefore, I would like to take this opportunity to ask you to thoughtfully go through the report
and evaluate it for yourself how far have I been successful in the endeavor. Please be humble to
any unintended errors.
Yours sincerely,
Rashid Rezoana
ID # 0320238
I
Acknowledgement
Completion of this report was only possible due to the cooperation and work of many people. To
all those so freely offered their advice and encouragement in this endeavor; I offer my most
sincere appreciation.
I am thankful to the members of Standard Chartered Bank. I am grateful to Mr. Tanim
Noman Sattar, Head of Priority & Wealth Management, for his valuable suggestions and
assurance. Besides, I was well-guided by the Centre Manager of Priority Banking Uttara Mr.
Mishu Minhaj.
I would like to express my gratitude to my supervisor, Mr. Shubhankar Shil. His contribution
boosted my confidence and helped me finish my study on time. And finally a special thanks to
all the respondents who spared their valuable time in answering my questionnaires.
II
Table of Content
Contents Page no.
List of tables V
List of figures V
Executive Summary VI
1. Introduction 01
2. Purpose of the study 02
3. Problem statement 03
4. Related Literature 03
4.1 Transactional Leadership 05
4.2 Transformational leadership 07
4.3 Management of Change 09
4.4 Characteristics of Transformational Leaders 12
5. Operational Definition 14
6. Limitation of the study 14
7. Research Timeline 15
8. Methodology 15
8.1Research Design 15
8.2 Construction of questionnaire for executives
having close working relationship with leaders 17
8.3 Sampling Method 17
8.4 Data Collection 17
8.5 Data Analysis procedure 18
III
9. Case studies 19
9.1 Case One 19
9.2 Case two 25
10. Research Framework 28
11. Result of Research 28
11.1 Reliability and Descriptive statistics of the Instruments 28
11.2 Correlation Analysis 30
12. Collective Result 32
13. Significance of the study 32
14. Conclusion 33
15. Paths forwarded to further studies 33
16. References 34
17. Appendix A. 38
18. Appendix B. 45
19. Appendix C. 51
20. Appendix D 58
IV
List of Tables
Contents Page no
1. Operational Definitions of Measured Variable 14
2. Research Timeline 15
3. Descriptive Statistics and Reliability Coefficient 29
4. Correlation Matrix 31
List of Figures
Contents Page no
1. The Conceptual Framework 28
V
Executive Summary
Transformational leadership is one of the most recent conceptualization of leadership concepts. It
has been specified as an important mechanism of introducing organizational changes. Generally,
transformational leadership is viewed as superior to the more conventional transactional
leadership and produces desirable leadership outcomes. The identified aspects of
transformational leadership theory have resulted in a lack of empirical support for the
hypothesized factor structure of the model, and very strong relationships among the leadership
components. However, Transformational leadership is an inimitable topic in Bangladesh. Studies
on transformational leadership have not done yet. This study has explored the aspects of
Transformational Leadership; to understand the attributes, styles, influences and developmental
strategies of transformational leaders. The research has revealed the role of transformational
leadership in managing change for effective organizational performance. An attempt will be also
made to explore some important aspects behind the process of a transformational leader in the
context of Bangladesh, where there is a great need for such leadership. The whole study has been
done through by both case studies of transformational leaders and detailed analysis of various
attributes. From the literature review researcher has found large number of attributes and using
factor analysis, most important attributes have been figured out that defines a transformational
leader in the context of Bangladesh; and those attributes are visionary, intellectual stimulator,
interactive, lifter, passionate, courageous, decisive and self-confident, concerned and supportive
leadership, ethical, and empowering. Researcher has done the study in two parts; case studies and
research. Case studies on two transformational leaders have been done with four hypotheses;
moreover researcher also figured out relations of the attributes with transformational leadership.
VI
Introduction
A business short of capital can borrow money, and one with a poor location can move. But a
business short on leadership has little chance for survival. It will be reduced to the controls of, at
best, efficient clerks in narrow orbit. Organizations must be led to overcome their ‘trained
incapacity’ and to adapt to changing conditions. Leadership is what gives an organization its
vision and its ability to translate that vision into reality.
- Warren Bennis
TODAY”S ORGANIZATIONS DEPEND ON TWO resources to fulfill their missions. One, of

course, is their equity base. The other resource – just as vital but perhaps even more scarce – is
leadership. Today, many organizations struggle to attract and retain the talented senior
executives who convert ideas into impact. Searches for transformational leaders as chief
executive, operating, and financial officers often turn up only one to three qualified candidates,
compared with twenty to thirty for comparable same operating and financial mid-level positions.
How the organization responds to the leadership challenge will have an enormous impact on both
individual organizations and the sector they serve. Organizations are not only growing more
plentiful, they are also being held more accountable. Under relentless performance pressure from
all types of stakeholders including regulators, and the public, these organizations’ management
teams will have to expand to include executives with specialized skills. Do influential board
members insist that the organization be run more like a scoring chambers. Besides, the present
day reporting requirements growing more complex and rigorous. And, all the organizations are
in the deep search of skilled marketing, development, and communications executives too to
keep them ahead of their rivals.
The same is also true in Bangladesh. The growth of every sector is very much evident
here. But the corporate Bangladesh is experiencing the huge deficit in leadership. Here every
effort is made in this report to reflect the Bangladesh scenario and it is all about the story of
Bangladeshi leaders who transformed their organization by raising the consciousness levels of
their followers beyond the call of duty. These leaders attracted energized and excited people by
taking them to a horizon from where they could think in a different way. The leaders made the
process of articulation and communication of the vision of what the organization could be and
then mobilized support for change towards realizing the vision.
Transformational Leadership in Bangladesh 2
The vision these leaders conveyed seemed to bring about confidence in the employees
that they were competent of performing the necessary acts. These leaders were challengers, not
conformists. They played the crucial role in drew attention. Their intensity coupled along with
commitment was magnetic. And, these towering personalities did not have to persuade people to
pay attention. Their intent and passion to perform like a child completely absorbed with creating
sand castle in a sandbox, naturally charmed people.
They are some leaders in Bangladesh who appeared as transformational leaders. These
Transformational leaders are:
1. Professor Muhammad Yunus ,Executive Director, Grameen Bank
2. Fazle Hasan Abed, Executive Director, BRAC
3. Mamun Rashid, CEO, Citi Bank N.A
4. Samson H. Chowdhury, Chairman, Square Group
5. Manzoor Elahi, Chairman, Apex Group
6. Iqbal Afzal Rahman, Founder, Grameen Phone
7. Rubaba Dowla, Marketing Manager, Grameen Phone
8. Rokeya Afzal Rahman, Managing Director, AdComm
9. Iqbal Qaudir, Founder, Grameen Phone and Wharton Hero
10. Sufi Mizanur Rahman, Chairman, PHP Group
This study is done in two parts; one part is case studies of transformational leaders and the
second part is consisted of analysis of different dimensions of transformational leadership.
Purpose of the study

There has been an unprecedented transformation in the socio-economic, political, technological
and organizational spheres. This accelerated rate of change poses a serious challenge to
organizations, either to foresee and manage change effectively in order to organizations, or meet
the fate of a dinosaur. In this context, transformational leadership is needed because the old
theories of leadership, operating through power of performance-reward linkage have become less
relevant.
Alannah E. Rafferty and Mark A. Griffin (2004) pointed out different aspects of
transformational leadership theory that have resulted in a lack of empirical support for the
hypothesized factor structure of the model, and very strong relationships among the leadership
components.
Following B. M. Bass (1990) and Mrityunjay Kumar Srivastava (2003), the purpose of
this research is to explore the aspects of Transformational Leadership; to understand the
attributes, styles, influences and developmental strategies of transformational leaders. The
research will reveal the role of transformational leadership in managing change for effective
organizational performance. An attempt will be also made to explore some important aspects
behind the process of a transformational leader in the context of Bangladesh, where there is a
great need for such leadership.
Problem Statement
Transformational leaders are the people who motivate followers to achieve performance beyond
expectations by transforming followers’ attitudes, beliefs, and values as opposed to simply
gaining compliance. (Bass 1985)
Model of transformational leadership has been embraced by scholars and practitioners
alike as one way in which organizations can encourage employees to perform beyond
expectations. However, Transformational leadership is a unique topic in Bangladesh. Studies on
transformational leadership and transformation leaders have not done yet. Nevertheless, this
study will explore some important dimensions of transformational leadership and
transformational leaders; moreover, this study will explore role of transformational leadership in
managing changes for effective organizational performance and the process of becoming a
transformational leader.
Related Literature
The field of leadership is frequently portrayed as having passed through three distinct eras: (a)
great man or trait perspective (b) behavior perspective and (c) contingency perspective. A
leading research strategy and focus of interest characterize each era. The inference of most
historical review is that leadership has progressed in a linear, predictable and consistent fashion
through these phases. In reality, leadership studies flowed more as a stream in a meandering,
intertwining and consistently shifting manner.
Nearly all studies divide leadership naturally into distinct lines of research and can be
classified in relation to whether the primary focus is on power-influence, leader-behavior, leader
traits, or situational factors that interact with behavior, traits, or power. Most of the researchers
have dealt only with a narrow aspect of leadership and ignored other aspects. The research on
leader power has not examined leadership behavior except for explicit influence attempts and
there has been tiny concern for traits except those that are a source of leader influence. The trait
research has revealed little concern for direct measurement of leadership behavior or influence.
The trait research has shown little concern though it is apparent that the effects of leader traits
are mediated by behavior and influence. The behavior research has hardly ever included leader
traits, even though they influence a leader’s behavior, and power is seldom considered, even
though some behavior is an attempt to exercise and strengthen power. Situational theories
scrutinize how the situation enhances or nullifies the effects of selected leader behaviors or traits,
rather than taking a broader view of the way traits, power, behavior and situation all interact to
find out leadership effectiveness.
By the 1980,s, nevertheless, dissatisfaction with the former models of leadership was
growing. They seemed to be too constricted and sterile. It was being understood that the term
leader had been applied loosely to anyone who was managing others, while ignoring certain core
aspects of leadership role behavior, e.g. leader’s formulation, and articulation of a future vision,
or the formulation of goals for the followers, or the building of trust and credibility in the minds
of followers, which is so essential to develop in them a commitment to strive for the realization
of the vision.
Further, the majority leadership studies in organizational contexts were, in fact, studies of
supervision of day-to-day routine maintenance rather than the true phenomenon of leadership as
observed in society. The core element of supervision or management is the efficient maintenance
of status quo, while the core element of leadership is to effectively bring about improvement,
change and transformations in the existing system and in its members.
Adding fuel to the fire, the rigid competition in the market in the late 70s and early 80s
also played a crucial role to make organizations and researchers think about new models of
leadership. For instance, competitive challenge in the 1980s compelled many North American
companies to re-examine the ways they had structured themselves. Years of success had yielded
growth, but had also produced intensely layered bureaucracies. Therefore, slow and conservative
decision-making by the hierarchy hindered responsiveness to markets. Further, the invasion by

Japanese and European companies made American corporations promptly look far less
competitive. This prompted the press, business schools and corporations to re-examine
management effectiveness and attention twisted to leadership as one of the key factors.
When the lack of leadership became evident in the traditional industries, the virtual
presence of leadership in other sector grabbed media attention. Despite the fact that some
industries were dying, others were growing dramatically. The new business environment saw a
flowering of new services and products, from Silicon semiconductors chips to McDonald’s
hamburger. Most of these new businesses had an entrepreneur at the back of them. Hence, the
vision, flair and drive of these individuals drew national attention as the public began to seek
reassurance that North America had not lost its touch; computer whiz kids like Bill Gates of
Microsoft and Steve jobs of Apple Computer became national heroes. Lee Iaccoca’s turnaround
of Chrysler Corporation had led to a campaign to draft him for the United States presidency.
Hence, it was apparent that even in the midst of severe competition, some business executives
were leading their companies to a spectacular growth.
This led management practitioners and academics to contemplate and alter their views of
leadership. Hence, research in late 1970s and 1980s integrated not only tests and extensions of
old theories or exchange/transactional framework of leader/follower relationship, but also put
emphasis on a new class of theories referred to as theories of transformational/charismatic
leadership. Here, attention transferred to new areas like vision, charisma, transformational and
inspirational, communications, and management of change. A foremost transition was underway.
In fact, the new theory “transformational leadership” represented a revolution in the concept of
leadership. To understand transformational leadership, it is appropriate to first know the concept
of transactional leadership.
Transactional Leadership
According to James McGregor Burns (1978), transactional leadership takes place when one
person takes the initiatives in making contact with others for the purpose of exchange of valued
things. The exchange could be economic or political or psychological in nature where each party
to the bargain in conscious of the power resources and attitudes of the other. Their points are
related, at least to the extent that the points stand within the bargaining process and can be
advanced by maintaining that process. But beyond this, the relationship does not go. In other
words, exchange of goods usually precise, tangible and calculable. The relationship ends as soon
as the needs of both leader and follower are satisfied by the continuing exchange. Therefore, this
is not a relationship that binds leader and follower together in mutual and continuing pursuit of a
higher purpose.
Later on, Bass used Burns’ definition of transactional political leadership as motivating
followers by exchanging with them rewards for services rendered. In other words a transactional
political leadership identifies what actions subordinates must take to achieve outcomes. He
clarifies these roles and task requirements, in order that the followers are confident in exerting
the necessary efforts. Complementing this approach, transactional leaders also recognize what
subordinates need and want, and clarify for them how those needs will be satisfied when they
increase the necessary effort to accomplish the leaders’ objectives. By clarifying what is required
of followers, the transactional leader tries to build confidence in them to exert the essential
efforts to achieve expected levels of performance. Such effort to perform or motivate to work
gives a sense of direction and, to a degree, energizes subordinates to reach agreed-upon
objectives.
It is obvious that the focus here is on a transaction between the leader and the follower.
More particularly, based on the findings of a series of surveys and on clinical and case evidence,
Bass listed that transactional leadership was characterized by the following factors:
(i) Contingent Reward;
(ii) Management by Exception (active);
(iii) Management by Exception (passive); and
(iv) Laissez-faire.
The first factor, contingent reward refers to rewarding subordinates for their attempt,
promise good performance and recognizes accomplishments and doing what needs to be done.
The second factor, management-by-exception (active) refers to taking corrective action in terms
of punishments or reprimands when subordinates move away from rules and standards. The third
factor management-by-exception (passive) refers to interventions by leaders only when standards
are not met and finally, laissez-faire to abdication of responsibilities, evasion of taking decisions
by the leader.
Thus, the transactional leader engages in an exchange based on initiating and clarifying what is
required of his subordinates and the consideration they will receive if they fulfill the
requirements.
Transformational Leadership
The concept of transformational leadership was developed generally from research on political
leaders. For the first time, political scientist James McGregor Burns in this book “Leadership”
described transformational leadership (actually used the term transforming leadership) as a
process where, leaders and followers raise one another to higher level of morality and
motivation. He further stated, “Dynamics of such leadership in recognizing expressed and
unexpressed wants among followers, bringing them into fuller consciousness of their needs and
converting consciousness of their needs into hopes and expectations… the secret of transforming
leadership is the capacity of leaders to have their goals, to stand back from immediate events and
day-to-day routines, and understand the potential, and consequences of change.”
Thus, for Burns, transactional leaders appeal to high ideals and end or terminal values of
followers, such as liberty, equality, justice, peace and humanitarianism, not to baser emotions,
such as fear, jealousy, greed, or hatred. Followers are elevated from their everyday selves to their
better selves. For Burns, transformational leadership may be demonstrated by anyone in the
organization in any type of position. It may engage people influencing peers or superiors as well
as subordinates. Burns had contrasted transformational leadership with transactional leadership,
in which followers were motivated by appealing to their self-interest. He also differentiated
transformational leadership from influence based on bureaucratic authority, which put emphasis
on legitimate power and respect for rules and tradition.
As said by Burns, during the process of transforming leadership, power bases are linked
not as counter-weight but as mutual support for common purposes. But beyond that the
transforming leader looks for potential motives in followers, seeks to satisfy higher needs and
employ the full person of the follower. Further, transforming leadership includes the fusion of
the purposes of the leader and followers. Change in followers’ purposes occurs through the
leader exploiting conflict and tension within value structures. The changes in followers’ purposes
brought about by transformational leadership in enduring.
Burns mentions the result of transforming leadership eventually becomes moral in that it
raises the level of human conduct and ethical aspirations of both the leader and the led, and thus
it has a transforming effect on both; therefore, enabling leaders and followers to be united in the
pursuit of higher goals.
While Burns considered morality a crucial aspects of transformational leadership, Bass
defined a transformational leader as one who motivates followers to do more than they originally
expected to do – not necessarily raise the followers to higher levels of morality.
Transformational leaders enlarge and change the interests of their followers, and generate
awareness and acceptance of the purposes and mission of the group. They rouse their followers’
enhanced commitment, efforts and actions towards the realization of the vision. Although
transformational leaders as well get engaged in transactional type of behaviors, the
internationalization of vision have been identified as charismatic – that is engendering faith in
and trust of the leader; consideration of or sensitivity to followers needs; a statement of the
vision in a manner that causes followers to reconsider their priorities and activities.
Bass model of transformational leadership varies from that of Burns in three aspects:
First, Bass added the expansion of the followers’ portfolio of needs and wants. Second, the
leaders’ behavior can be of long- or short-term benefits or cost to the followers. Third, Burns
perceives transformational and transactional leadership as opposite ends of a continuum whereas
Bass does not. Bass notes that conceptually and empirically, leaders exhibit a variety of patterns
of transformational and transactional leadership. He perceives transformational leadership as
higher-older leadership. Such leadership is needed as well as transactional leadership to go
beyond accomplishment of day-to-day activities. Further, transformational and transactional
leadership display various decision styles, which include directives, persuasive, consultative, or
participative. Transformational leadership is likely to generate more effort, creativity and
productivity in the long run.
Bass also argues that transformational leadership essentially consists of three dimensions:
(1) charisma, (2) individualized consideration, and (3) intellectual stimulation. Later on, Bass
added another factor called inspirational leadership.
For Bass, then, charisma is an essential (and extremely important) but not the sufficient
condition for transformational leadership. Bass judges charisma as a process wherein a leader
influences followers by arousing strong emotions and identification with the leader. Therefore,
Bass distinguishes a charismatic leader from the transformational leader, though most of the time
this is used interchangeably because of the lack of any clear-cut distinction even to date.
The additional distinction is made that without the other two components-intellectual
stimulation and individual consideration, the leader is a pure charismatic, driven by personalized
or self-seeking aims. However, according to conceptualization of Congor and Kanungo, the
qualities of intellectual stimulation and individual consideration are subsumed under charismas
itself. To become charismatic, they believe that a leader must, to a significant degree, be
sensitive to follower needs and desires (individual considerations). Moreover, he or she must
provide a vision and mission that are both mentally and emotionally stimulating
(intellectual/emotional stimulation). A leader who fails to do this will not be apparent as
charismatic. However, it is not possible for charisma to manifest itself without a degree of
individual consideration and intellectual stimulation. Hence, Conger and Kanungo feel that these
components are interrelated rather than discrete entities, as conceptualized by Bass and others.
Per se, they also feel that the distinction between transformational and pure charismatic
leadership might lead to confusion over the concept of charisma itself.
Management of Change
Though Bass put emphasis on the style of transformational leadership, he has not paid much
attention on the substance, which is also a vital part of management of change.
Bennis and Nanus (1985) in an effort to better understand the subject of leadership as the
fundamental ingredient of the way progress is created and to the way organizations develop and
survive, conducted a series of 90 interviews – 60 with successful CEOs, all corporate presidents
or chairman of boards, and 30 with outstanding leaders from the public sector. The findings of
the study showed that all 90 leaders embodied:
Strategy I : Attention through vision
Strategy II : Meaning through communication
Strategy III : Trust through positioning
Strategy IV : the deployment of self through (1) positive self-regard
and (2) the Wallenda factor
Further, Tichy and Devanna (1986) defined transformational leaders as people, who are
always in the business of renewal and the task never done. And they time and again articulate
this aspect of their leadership role. They have no sense of being able to finish something before
they retire or pass the baton on to a successor, as they know that the dynamic forces in the
marketplace will soon force change in the organization they lead.
Tichy and Devanna found in their study that when Blumenthal joined Burroughs, this
organization was doing well and had not had a down quarter in the last 11 years. Nevertheless,
within a couple of months, he realized that there was a need for revitalization. He restructured
management, pared operations, consolidated engineering, opened up new markets in Chaina, and
increased Burrough’s sales from $ 3.6 billion to $4.9 billion and thus stayed ahead of many
competitors. In the same way, when Jack Welch took over GE as its chairman in 1981, GE was
doing well. However, in only first five years as chairman, the financial performance of GE
outpaced the rest of the Standard and Poor’s companies. Further, in 1982 when Campbell was
appointed president of Burger King, USA, the company was having many problems and not
doing well, but within first two years, he significantly changed Burger King’s relative value to
Pillsbury by increasing profits 76 percent. John Harvey-Jones of Imperial Chemical Industries,
UK, took ICI from its first quarterly loss into a revitalization that would take a decade to full.
Likewise, when Lee Lacocca joined Chrysler Corporation, the company was on the brink of
bankruptcy. However, he managed to assemble a new top management team at Chrysler and
mobilized the organization to fight its way through one of the most eminent turnarounds in
American history. In the process, Lacocco became the best-known business leader in America
and assumed the status of a national folk hero.
The analysis of the successes of the above-mentioned leaders evidently brings out that
these leaders first of all created a felt call for change in the people of the organization, they then
articulated a new vision which grabbed the attention of the people in the organization, which in
turn mobilized commitment to its cause and thus institutionalized the process of change created.
In brief, theses leaders anticipated the likely changes, tried to prevent the threats and not only
prepared the organization for new things but also created a new vision for the future.
Therefore, transformational leadership is about change, innovation and entrepreneurship.
Tichy and Devanna (1986) agree with Peter Drucker that these are not the provinces of lonely,
half-mad individuals with flashes of genius. Rather, this brand of leadership is a behavioral
process capable of being managed and learned. It’s a leadership process that is systematic,
consisting of purposeful and organized search for changes, systematic analysis and the capacity
to move resources from areas of smaller to greater productivity. Though, transforming an

organization to make it strategically competitive is a very complex task, it can be accomplished
and the new leadership style can be learned. In fact, Tichy and Devanna described three steps in
transformational leadership. These are:
a) Recognizing the need for revitalization, i.e. an attempt by the leader to change the
organization to growing threats from the environment;
b) Creating a new vision, i.e. to focus the organization’s attention on a vision of the
future that is positive and exciting; and
c) Institutionalizing change, i.e. institutionalize the transformation so that it can survive
his/her tenure in a given position.
Besides, the study done by Singh and Bhandarkar (1990) on five Indian transformational
leaders, namely Russi Modi of TISCO, S. P. Sharma of IFFCO Phulpur, Pankaj Sinha of
Western Coalfields Limited, S.V.S. Raghavan of MMTC, Pench Area, and S. N. Jain of National
Fertilizers Limited, brought out that there were 19 modes which the leaders employed in varying
degrees for introducing and sustaining organizational transformation. Of them, following were
found to be present in all five transactional leaders:
1. Sincerity of the leader
2. Consultation and participation
3. Empowering and supportive
4. Collectivity and teamwork
5. Role model
6. Novelty coupled with continuity
A close look at all the above discussed definitions and analysis of transformational
leadership points out that although there are variations in them, according to Bennis (1984),
Holland (1989) and Leithwood (1994), one constant throughout is that the transformational
leader is above all an agent of change. His/her main function is to serve as a catalyst of change,
but never as a controller of change.
For this reason, raising the consciousness level of executives to higher level being
constant, the term transformational leadership can be applied in terms of (i) turning around the
identity of the organization as Lee Lacocca and John Harvey-Jones did for their organizations;
(ii) bringing about profitable superior performance and growth as Blumental and Jack Welch did;
and (iii) creating a new organization.
The achievement of any two of the above-mentioned elements can be a sufficient
parameter for a leader to be considered as a transformational leader.
Characteristics of Transformational Leaders

Based on the literature and studies done by Bass, Tichy and Devanna, Hackman and Johnson
(1991), Singh and Bhardarkar, and J. B. P. Sinha, the following common characteristics of
transformational leaders emerge:
i. Visionary: Transformational leader have to articulate a shared vision with his

followers and communicate it to them; and must become the social architect for
their performance.
ii. Empowering: Transformational leaders empower their followers and
consequently promote responsibility to achieve their fullest potential.
iii. Passionate: Transformational leaders are passionate in their commitment to task
and people. Without passion there is no direction and the vision is short-lived.
iv. Courageous: Courageous means being able to take a stand, being able to take
risks and being able to stand against the status quo in the larger interest of the
organization. Hence, without losing the grip on the situation and not succumbing
to pressures, become the hallmark of transformational leaders, as it maintains
their originally and helps the leader being creative and innovative.
v. Interactive: An interactive leader gives better direction than a non-interactive
leader. For that reason, it becomes very important for transformational leader to
become an effective communicator.
vi. Ethical: A Transformational leader should maintain high ethical standards.
vii. Change Agent: Last, but not the least, a transformational leader is a catalyst of
change. He manages change very well and thrives on it.
The above discussion on characteristics of transformational leaders makes it obvious that

they need to be different from general leaders.
Literature confirms that transformational leadership asks for transcendence. By

transcending their own particular concerns and working for the common good, transformational
leaders in general, and those at higher level in particular, intellectual stimulation or inspiration,
achieve shared faith, and consideration of the individual. Finally, the individual will be an
effective leader.
A real and true transformational leader is one who seeks greatest good for the greatest
number and is concerned about doing what is right and honest. He/she is likely to avoid
stretching the truth or going beyond the evidence for his/her wants to set a personal example to
followers about the value of the leader and accurate communication in maintaining the mutual
trust of the leader and follower. Moreover, the transformational leader believes in total
transformation of the organization and consequently, the people in terms of their thinking style,
process and performance.
Although there are many instances when a moral leader might judge it best to soften the
hard facts of a situation, impression management can be hopeful and optimistic without being
deceitful and treacherous. A transformational leader tries to maintain hope alive in the fact of bad
news. As Franklin D. Roosevelt declared in his inaugural address in 1933, “the only thing we can
have to fear is fear itself.”
Further, trust in the leader is risked and that trust is the single-most essential variable
moderating the effects of transformational leadership on the performance, attitude and
satisfaction of the follower. This was the conclusion reached in a large-scale survey by
Podsakoff, Nichoff, et al.
Although the distant leader might be able to play with the truth longer than the close,
immediate leader, the trust so crucial for transformational leadership is the level of an
individual’s motivation. Work experiences and other developmental opportunities are of limited
value, if an individual is not inclined to become a leader. Most of us simply do not want the
responsibilities and hardship of leadership. Moreover, driven by a need to conform; we fear the
risk of being seen as too unconventional. Psychologist Jane Laevinger argued that many
individuals remain locked at a conformist stage of personal development.
In a nutshell, a transformational leader is a person who motivates and inspires followers
by showing the way to manage change by articulating a vision.
Operational Definition
Table 1: Operational Definitions of Measured Variables.
Measured Variable Operational Definitions
Transformational Leadership J. M. Burns, Leadership, Cited, pp. 20
Limitation of the study

The methodology of this study had the following limitations:
1. Transformational leaders were not asked to self evaluate themselves.
2. Due to non-inclusion of friend and family members, the personal side of these
transformational leaders remains unexplored.
3. The leaders were not observed while dealing with people, making decisions or
communicating with people.
4. Social, economic and political environments might play a role in emergence of
transformational leader. However, establishing a cause and effect relationship of the
attributes and consequences on emergence of a transformational leader was beyond the
scope of the study.
5. Although confidently was assured, some respondents were hesitant to express their views
freely because of the fear that their leader could come to know about this.
6. There was a tendency on the part of followers to highlight only the positive aspects of
leader and not talk about the negative aspects.
Research Timeline
The timeline for the research is project in the table below:
Date Activities
June 10, 2006- June 25, 2006 Problem searching

July 01, 2006 – July 20, 2006 Literature Review
July 25, 2006- August 05, 2006. Data collection
August 06, 2006- August 10, 2006 Data input and data analysis
August 13, 2006- August 19, 2006 Results documentation
August 21, 2006- August 25, 2006 Report completion
August 26, 2006- August 29, 2006 References and others
August 31, 2006. Report Submission
Methodology
This study explores the determinants and attributes of transformational leadership. It tries to
understand the impact of transformational leadership on the performance of the concerned
organization in terms of market leadership, profit, growth, innovation and stakeholders’
satisfaction.
Research Design
The whole study is done through two phases. They are:
[
Selection of Transformational leadership.

Analysis of different attributes.
[
First phase is consists of selection of transformational leaders. The second phase deals with
research part contains the construction of measurement tool through factor analysis and analysis
of different attributes of transformational leaders.
Selection of Transformational Leader

Selection of transformational leaders for the study was done on the basis of three sources of
information:
1.Business Magazines
2.Opinion of Senior Executives, Academicians and Consultants
3.Questionnaire Survey Method
1. business magazines.
The process of selection of the transformational leaders started with the study of different
Bangladeshi newspapers and magazines, especially the Financial Express, Ortho Kotha,
the New Horizon; these newspapers and magazines have been scrutinized for the name of
transformational leaders.
2. opinion of senior executives, academicians and consultants.

In addition to relying on the business magazines for the identification of transformational
leaders, a total of 40 senior executives (Asst Manager and above), academicians and
management consultants were requested to name some of the transformational leaders in
Bangladesh, keeping in mind the following criteria:
1. They should be alive and accessible;
2. They should have an excellent track record;
3. They should be considered as change agents;
4. They should have made their organization as one of the best organizations during
their tenure; and
5. They should be a reputed leader.
As the term transformational leader could have meant different things to different people,
the following definition was used to maintain uniformity of thought processes: A
transformational leader is a person who motivates and inspires followers by showing the
way to manage chance by articulating a vision.
3. questionnaire survey method.

To further validate some of the common names which had emerged, a questionnaire was
constructed and given to 100 top executives (Manager and above), bankers, academicians
and consultants across 20 public sector, multinational companies, banks and academic
institutions. This questionnaire was given along with a covering letter where
transformational leadership was defined as mentioned earlier. The questionnaire had two
parts; first part consisted of a name of transformational leader and the second parts
consisted of 41 relevant attributes of transformational leader based on literature review.
Response to those questionnaires was 53 percent, which is considered satisfactory for a
questionnaire survey.
Construction of questionnaire for executives having close working relationship with leaders.
Since a leader is always one in the eyes of his followers, it was important to obtain the views of
the followers about them. Therefore, to capture the perceptions of the followers, a questionnaire
was designed.Based on the literature on transformational leadership and responses the 100 top
executives (Manager & above), bankers, academicians and consultants across 20 public sector,
multinational companies, banks and academic institutions regarding the necessary attributes of
transformational Factor Analysis has been done. Moreover, to validate these attributes and to
find out some significant attributes to measure the transformational leadership in the context of
Bangladesh Factor Analysis has been done. Significant attributes, which are got from the results
of Factor Analysis, are used to construct the questionnaires for executives having close working
relationship with leaders.
Sampling Method
About 20 to 25 executives were administered questionnaire for each transformational leader
being formally interviewed. The criteria used to select the executives were their (i) close working
relationship with the transformational leader – at least for one year; (ii) availability of executives;
and (iii) consent of executives (subordinates) to fill the questionnaire willingly and thus is the
part of the study. Hence, by design a purposive sample (non-probability restricted sample) was
used to get information about the leaders.
Data Collection
Two sources were used for data collection;
primary source.
Information collected through structured questionnaire administered to the executives.
After the questionnaire was filled up by the executives anonymously, it was collected
directly by the researcher. Further, each and every filled in questionnaire was checked
thoroughly by the researcher to check the seriousness of the respondents. To validate the
questionnaire data further, an attempt was made to interview as many respondents as
possible based on their convenience.
secondary sources.
The secondary sources used to collect data about these leaders were:
1. Published interview with the leaders as well as writes-ups about them in different
business magazines and newspapers like Ortho Kotha, the New Horizon,
Financial Express, Ice Today etc.
2. Critical incidents during their stay as Leader in the organization; reports of
companies’ performance; changes brought in the company by the leaders; and the
stories about them.
Data Analysis Procedure

For data analysis the software Statistical Package for Social Science (SPSS) version 12.0 has
been used. The descriptive statistics have been used to find the norm of the employed variables
and their direction. The descriptive statistics have indicated the standard deviations and means of
the variables, and using those researcher could figure out the nature of the data. Regression
coefficients for the proposed model were estimated using linear regression model. The goodness
of fit was evaluated and estimated using multiple coefficient of determination denoted by R².
Sometimes because of increasing the number of independent variable the goodness of fit may be
positively biased. Correlation matrices have been constructed to measure and test the strength of
linear relationship (if any) between variables. Using Pearson’s correlation values, r, and the
significance levels (p values) the relationships have been determined.
Case Studies
Each case describes the personal and professional background of the leader; his/her styles in
terms of managing change, managing relationships with bosses, peers, and subordinates,
decision-making, risk taking abilities etc. Moreover, the performance of the organization during
their tenure as leader has also been highlighted.
In the light of the purposes, the following hypotheses are formulated:

1. Family background plays an important role in the emergence of a transformational leader
2. Experience of crisis of young age helps an individual become a transformational leader.
3. Success in challenging job assignments in early career makes transformational leaders
confident to take up bigger challenges.
4. Transformational leaders are likely to have those people as their role models who have
excelled in their work areas by doing things differently as well as have belonged to the same
business industry.
Case One
PROFESSOR MUHAMMAD YUNUS
Grameen Bank, Bangladesh
As founder of the Grameen Movement, Professor Muhammad Yunus is a revolutionary. His

ideas couple capitalism with social responsibility and have changed the face of rural economic
and social development forever. The Grameen Bank operates 1,092 branches in 36,000 rural
Bangladesh villages, providing credit to over two million of the country's poorest people in
Bangladesh. Since its inception, Grameen has loaned more than US$2 billion. This new banking
system of providing unsecured credit to the poorest of the poor began as an action- research
project at Chittagong University, and later grew into a full-fledged bank. Grameen Bank's
patrons are 94% women who have an unparalleled repayment rate of 98%.
Professor Yunus is responsible for many innovative programs benefiting the rural poor.
In 1974, he pioneered the idea of Gram Sarker (village government) as a form of local
government based on the participation of rural people. This concept proved successful and was
adopted by the Bangladeshi government in 1980. In 1978, Yunus received the President's award
for Tebhaga Khamar (a system of cooperative three-share farming, which the Bangladeshi
government adopted as the Packaged Input Program in 1977).
A Fulbright Scholar at Vanderbilt University, Professor Yunus received his Ph.D. in
Economics in 1969. Later that year, he became an assistant professor of Economics at Middle
Tennessee State University, before returning to Bangladesh where he joined the Economics
Department at Chittagong University.
The UN secretary general appointed Professor Yunus to the International Advisory
Group for the Fourth World Conference on Women in Beijing from 1993 to 1995. Professor
Yunus has also served on the Global Commission of Women's Health (1993-1995), the Advisory
Council for Sustainable Economic Development (1993-present), and the UN Expert Group on
Women and Finance. He also serves as the chair of the Policy Advisory Group (PAG) of
Consultative Group to Assist the Poorest (CGAP). Yunus has also served on many committees
and commissions dealing with education, population, health, disaster prevention, banking, and
development programs. He is currently on the boards of many international organizations
including Amanah Ikhtiar Malaysia (a Grameen replication project), the International Rice
Research Institute in the Philippines, and Credit and Savings for the Poor in Malayasia. Professor
Yunus also sits on the board of the Calvert World Values Fund, the Foundation for International
Community Assistance, the National Council for Freedom From Hunger, RESULTS and the
International Council of Ashoka Foundation, all of which are located in the US.
Professor Yunus has received the following International awards: the Ramon Magsaysay
Award (1984) from Manila; the Aga Khan Award for Architecture (1989) from Geneva; the
Mohamed Shabdeen Award for Science (1993) from Sri Lanka; and the World Food Prize by
World Food Prize Foundation (1994) from the US. Within Bangladesh, he has received the
President's Award (1978), Central Bank Award (1985), and the Independence Day Award
(1987), the nation's highest award.
Muhammad Yunus believes that he can eradicate world poverty, all by the use of one
simple idea. Now the world's leaders are starting to take him seriously. Cynics roll their eyes to
the ceiling, but Muhammad Yunus, a 56-year-old banker from Bangladesh, is that rare thing: a
bona fide visionary. His dream, which he is actively pursuing, is the total eradication of poverty
from the world. "One day," he says confidently, "our grandchildren will go to museums to see
what poverty was like."
But what is truly amazing about Yunus is not the extravagance of his vision but the fact
that, after two decades of working in anonymity, his ideas are winning converts among the
world's top policy-makers. Bill Clinton said in his last election campaign that Yunus deserved a
Nobel Peace Prize and cited his experiment in Bangladesh as a model for rebuilding the inner
cities of America. Since then, the World Bank has made him the head of its advfsory committee
to propagate his vision worldwide. He has also won countless prizes and accolades: hailed by
"Asia Week" magazine as one of the 25 most influential Asians, by the "New York Times" as the
star of the UN's Women's Conference last year, and by ABC TV as Man of the Week. When he's
not busy receiving prizes -- the World Food Prize and the Care Humanitarian Award among
them -- he is escorting Hillary Clinton on a field trip to his borrowers or preparing for a visit by
Queen Sofia of Spain. In July he will come to England to receive an honorary doctorate from
Warwick University.
What this man has invented that excites so much interest is something called micro-
credit. It is both terribly simple and, in the field of development and aid, completely
revolutionary. Rather than donating billions to help large infrastructure ventures, Yunus gives
loans of as little as A320 to the destitute. A typical borrower from his bank would be a
Bangladeshi woman (94 per cent of the bank's borrowers are women) who has never touched
money before; all her life, her father and husband will have told her she is useless and a burden
to the family; finally, widowed or divorced, she will have been forced to beg to feed her children.
Yunus lends her money -- and doesn't regret it. Kept on the straight and narrow by a mixture of
peer pressure and peer support, she uses the loan to buy an asset which can immediately start
paying income -- such as cotton to weave, or raw materials for bangles or a cow she can milk.
She repays the loan in tiny weekly installments until she becomes self-sufficient. Then, if she
wants, she can take out a new, larger loan. Either way, she is no longer poor.
His bank provides no training, no education, and no infrastructure for its clients. "I firmly
believe that all human beings have an innate skill," says Yunus. "I call it the survival skill. The
fact that the poor are alive is proof of their ability. We do not need to teach them how to survive:
They know this already. Giving the poor credit allows them to put into practice the skills they
already know. And the cash they earn is then a tool, a key that unlocks a host of other problems."
The Grameen Bank ("rural bank" in Bengali), which Yunus has built over the last 20 years, is
today the largest rural banbk in Bangladesh. It has over 2 million borrowers and works in 35,000
villages throughout the country. Assuming that each borrower has six dependents, it is possible
that 10 per cent of the population of Bangladesh (or 12 million people) now live directly from
the benefit of Grameen loans. By 1994, the bank had lent a total of A3650m; in 1995, it made
loans of A3250m. By 1998, it plans to increase its lending to A3650m a year. The bank actively
seeks out the most deprived in Bangladeshi society: beggars, illiterates, widows. Yet it claims a
loan repayment rate of 99 per cent. Most western banks would be delighted with such a bad debt
ratio. And, since 92 per cent of its shares are owned by the borrowers themselves (the balance is
owned by the government), it truly is a bank for, and of, the poor. Each borrower is issued with
one non-tradeable share and has to start a saving scheme as a form of insurance against disaster.
"What Yunus has achieved is simply brilliant," says Bruno Lefevre, who just completed a study
of Grameen for UNESCO.
The man whose vision has made this all possible is a soft-spoken, bespectacled ex-
professor, who lives and dresses simply -- he earns only A3160 a month and is, in public,
unassuming and shy. In private Muhammad Yunus is funny, charming and approachable. His
best work is done in a two-bedroom apartment at the bank's headquarters in Bangladesh's capital,
Dhaka, where he lives with his wife and 10-year-old daughter, Deena. He does not own a car,
and, although he was recently persuaded to get a credit card for hotel bookings, he has never
actually charged anything to it.
Yunus was born in 1940 in Chittagong, the business centre of what was then Eastem
Bengal. His father, a goldsmith, did well for himself and pushed his sons to seek higher
education. But his main influence was his mother, Sofia Khatun, who had 14 children, of whom
five died in childbirth. "Mother always helped any poor who knocked on our door," he explains.
"Thanks to her I always knew I would have a mission in life, though I didn't know what form it
would take." Tragically, a congenital illness reduced her mental abilities in later life.
In 1965, he was awarded a Fulbright scholarship and went to do a PhD at Vanderbilt
University in Nashville, Tennessee, where he stayed for seven years. Returning in 1972 to
become the head of the economics department at Chittagong University, he found the situation in
newly independent Bangladesh worsening day by day. Tbc terrible man-made famine of 1974,
which by some estimates killed 1.5 million Bangladeshis, changed his life for ever. "While
people were dying of hunger on the streets, I was teaching elegant theories of economics. I
started hating myself for the arrogance of pretending I had answers. We university professors
were all so intelligent, but we knew absolutely nothing about the poverty surrounding us. Why
did people who worked 12 hours a day, seven days a week, not have enough food to eat? I
decided that the poor themselves would be my teachers. I began to study them and question them
on their lives."
Yunus spent most of 1975 and 1976 leading his students on field trips to the nearby
village of Jobra. It was easy to see the problem, but what was the solution? He introduced
improved rice-farming techniques and established a farmers' cooperative to irrigate during the
dry season. Soon he realised that targeting farmers was not helping the truly destitute underclass
-- the landless, assetless, rural poor. Then he made his big discovery. One day, interviewing a
woman who made bamboo stools, he learnt that, because she had no capital of her own, she had
to borrow the equivalent of 15p to buy raw bamboo for each stool made. After repaying the
middleman, she kept only a lp profit margin. With the help of his graduate students, he
discovered 42 other villagers in the same predicament.
"Their poverty was not a personal problem due to laziness or lack of intelligence, but a
structural one: lack of capital. The existing system made it certain that the poor could not save a
penny and could not invest in bettering themselves. Some money-lenders set interest rates as
high as 10 per cent a month, some 10 per cent a week. So, no matter how hard these people
worked, they would never raise themselves above subsistence level. What was needed was to
link their work to capital to allow them to amass an economic cushion and earn a ready income."
And so the idea of credit for the landless was born. Yunus's first approach was to reach into his
pocket and lend each of the 42 women the equivalent of A317. He set no interest rate and no
repayment date: "I didn't think of myself as a banker, but as the liberator of 42 families."
Immediately, Yunus saw the impracticality of carrying on in this way, and tried to
interest banks in institutionalising his gesture by lending to the poorest, with no collateral --
Bankers laughed at him, insisting that the poor are not "creditworthy". Yunus answered, "How
do you know they are not creditworthy, if you've never tried? Perhaps it is the banks that are not
people-worthy?"
Undeterred, he started an experimental project in Jobra, the village he and his students
had been studying, and staffed it with his graduate students. Between 1976 and 1979, his
microloans successfully changed the lives of around 500 borrowers. But it was hard work
combining the project with his full-time job as a Professor, and he continued to lobby the state-
owned Central Bank and the commercial banks to adopt his experiment. In 1979, the Central
Bank was won over and arranged for the Grameen project, as it was then called, to be run from
the branches of seven state-run banks -- initially in one province, and, by 1981, in five. Each
expansion confirmed the effectivenesss of micro-credit: by 1983, Grameen had 59,000 clients in
86 branches. Eventually, Yunus decided to quit academia and go it alone. Grameen was
incorporated as a separate legal institution in 1983, and since then it has moved fast -- some
would say too fast -- to expand its operations.
Despite the opposition, Yunus's method is gathering supporters. Grameen is being copied
in 52 countries. The methods are adapted to suit local conditions, but the solution of creating a
counter-culture that empowers individuals with their own capital is the same. The bank has
entered into an agreement with the Governor of Illinois so that borrowers can continue to receive
welfare benefits in the transitional period until they become self-reliant. To see women weep for
joy when they inform the authorities that they no longer need welfare is a moving experience.
Group solidarity works well in America's black ghettos, on Indian reservations, in rural
Arkansas -- wherever the social life of the poor is tightly knit. But in many urban settings in the
West the lack of it has been the greatest stumbling block to the Grameen method. Maria Nowak,
a worker for the World Bank who has set up Grameen replicas in Albania and in Bosnia, has not
had the same success in France, where she is based. "There is simply no solidarity among the
poorest of the poor here," she says. "Why would a Zairean tortured in prison in her country and
now living in Paris care about a fellow borrower living in a train station out of garbage bags?
There is not enough social fabric left on which to hook the group solidarity." But even replicators
in Asia and Africa report that it is more difficult to make micro credit work in urban areas,
especially among those who have no fixed address and thus few links to their neighbors.
Yunus does not pretend to have solution for all problems. What he does say ts that by
creating wealth in the countryside, Grameen can reduce the pressure on those moving to the
urban slums. He also points to the success of the newly formed Shokhti Foundation, which has
118,000 micro-loan borrowers in the shanty towns of Dhaka; and to the Self Employed Women's
Association (SEWA), which has many more in Indian cities.
It has also been suggested that microcredit cannot flourish in Westem countries without
Bangladesh's long history of self-employment. But Yunus believes that self-employment is the
future. He has visited China, where Grameen loans have helped starving peasants who have too
little to keep warm in winter; he has travelled to South Africa and met with the poor who jump at
the chance to start their own car repair workshop or timber-sawing business, or plant wheat. All
this has convinced him that, as Jan Piercy, US Executive Director of the World Bank, puts it:
"Creating jobs requires huge investment, management, overheads ... It is extremely complex and
time-consuming to set up, whereas self-employment is inunediate. It may be tiny, but each tiny
bit contributed by the millions adds up."
It is Yunus's very pragmatism, and his refusal to be cornered by ideology, which his
supporters say may prevent him from getting the Nobel Prize for economics -- which usually
rewards theoretical work. But Yunus is far too ambitious for Grameen to worry about a mere
prize. What he has set his sights on is the total eradication of poverty from the world and to hear
him discuss it is spine-tingling: "There are 1.2 billon poor in the world. Grameen has reached 2
million of them, our copycats service another 1.5 million in Bangladesh. Our international
replicators have 2.5 million borrowers. That means so far, counting dependants, we've helped 36
million. If we can reach 100 million, that will be a critical mass. The rest will be easy. "People
say I am crazy, but no one can achieve anything without a dream. When you build a house, you
can't just assemble a bunch of bricks and mortar, you must first have the idea that it can be done.
If one is going to make headway against poverty, one cannot do business as usual. One must be
revolutionary and think the unthinkable."
Case Two
IQBAL QUADIR
Founder, Grameen Phone and Wharton Hero
Iqbal Quadir knows what it's like to live cut off from the world. In 1971, when he was 13
years old, his native Bangladesh erupted in war. Quadir's middle-class family was forced to flee
their urban home and hide out in the countryside for a year. Suddenly, everyday conveniences
the Quadirs had taken for granted — running water, electricity, even basic roads — were
missing. Then fighting forced the suspension of ferry services on a nearby river, taking away the
village's sole means of transportation. When Quadir's parents sent him to fetch medicine from a
neighboring town one day, he walked for 10 kilometers to get there, only to return empty-
handed. "Even as a boy, I could see how I had wasted a whole day," he says.
Memories of that day surfaced decades later when the computer network at the New York
investment bank where he was working broke down. Quadir found himself once again reflecting
on what a difference technology can make. "I realized that connectivity is productivity, whether
it's in a modern office or an underdeveloped village," he says.
Today, thousands of such villages are connected, thanks to Quadir. The 42-year-old
business-school graduate has brought mobile-phone services to millions of people in rural
Bangladesh, and created self-employment opportunities for thousands of disenfranchised poor.
With the help of micro-credit pioneer Grameen Bank, Quadir established a mobile-phone
company called GrameenPhone. The for-profit enterprise provided the infrastructure necessary
to sustain an affiliated non-profit project called Village Phone. Rural women receive small, no-
collateral loans (hence the term "micro-credit") for cellphones, and a 50% discount on airtime.
They can then charge their neighbors the market rate for making calls. Development experts see
the program as a model for using technology to empower the poor.
Creating better opportunity for women is one of the scheme's many achievements.
Women who run Village Phone businesses not only earn more than most men, but have greater
decision-making power in the family. Their children are more likely to be in school than other
kids. The users of the phones benefit too. With easy access to market information, they can get a
fair price for the sale of agricultural products. They're also able to keep in touch with relatives
living in other towns or abroad.
Quadir's inspiration for Village Phone was Grameen Bank (now a 35% shareholder in
GrameenPhone). The bank started micro-loans to Bangladeshis 25 years ago, and enjoys a
remarkable 98% repayment rate. That's partly because most borrowers are women, who tend to
be better credit risks than men. "You will never see a woman take the money and get drunk with
it," says Grameen Bank founder Muhammad Yunus.
Still, even after gaining Yunus's support for his idea in 1994, getting the project off the
ground wasn't easy. Quadir quit his banking job, moved back to Bangladesh and for three years
worked out of his house and car, without pay. "At the beginning he was kind of frustrated," says
his wife Samina. "He really had to start from scratch in Bangladesh." Quadir traveled the world
trying to convince investors that rural Bangladesh was an attractive market for mobile-phone
services. "The idea just seemed so atrocious," recalls Khalid Shams, deputy managing director of
Grameen Bank. "But Iqbal Quadir was very persistent. He was someone who could do the
bulldozing."
Finally, Quadir convinced Norway's state-backed telecoms company, Telenor, to take a

51% stake in GrameenPhone. With the help of Japan's Marubeni Corporation and $65 million
in loans from aid agencies and development banks, the new company started operations. But
the battle had just begun. Quadir says he considered throwing in the towel just two days before
GrameenPhone won a mobile-phone license from the government. "There was almost no
hope," he recalls. "And at that time, I had a wife and a child, and I was thinking I had to wrap
up all this crazy stuff. For three years I had been completely floating around."
The company did win its license, and built transmitting towers and leased a fiber-optic
network from the national railway. GrameenPhone is now by far the largest cellphone company
in Bangladesh, with 260,000 subscribers, 5,000 of whom are part of the Village Phone
program. Considering the average village has 1,700 people, around 8.5 million villagers now
have access to the world. The number of Village Phone subscribers is expected to double to
10,000 by the end of the year. They are a commercial asset to GrameenPhone, ringing up an
average $100 a month in charges each, compared with urban users who average only $22 a
month. After four years of losses, GrameenPhone began making a profit this year.
Bangladesh's flat terrain and dense population make it easier to build a profitable rural
cellphone business than in many other poor countries. But Quadir is convinced similar projects
can succeed elsewhere, fueled by entrepreneurialism rather than traditional hand-outs. "I don't
know any country that has used aid to become developed," he says. It's a belief he picked up
while studying for his MBA at Wharton business school in the U.S., where he realized
companies and the profit motive can help solve society's problems. "I didn't want to believe
that," he chuckles. "I would rather learn that businesses were exploiting. But in fact commerce
is development."
Quadir is still a shareholder in GrameenPhone, but the restless entrepreneur left the firm
in 1999 to return to the U.S. and tackle other challenges. "I like to solve problems, but I don't
want to solve the same problem every day," he says. His immediate task is preparing a course on
technology and development that he is scheduled to teach at Harvard's Kennedy School of
Government this autumn. He's a bit nervous about it because he's never taught before. His
students, however, will no doubt find they have a lot to learn from the man who got Bangladesh's
villages ringing.
Research Framework
The conceptual framework for the study in question is drawn below
Visionary
Intellectual Stimulator
Interactive
Lifter
Passionate
Courageous Transformational
Concerned and Supportive Leadership Leadership
Decisive and self-confident
Ethical
Empowering
Fig 1: The conceptual framework
Results of Research
Reliability and Descriptive statistics of the Instruments
According to Parameswaram, Greenberg, & Bellenger (as cited in Ngansathil, 2001, p.121),
there are two basic requirements of measurement. Firstly the measurement must be an
operationally definable process and secondly the outcome of the measurement process must be
repeatable (reliability).
Gregory (1996) has defined “reliability” as the extent to which measurements of the
particular test are repeatable. In other words, proper measuring procedure must give consistent
results on repeat tests. The more consistent the results are in repeated measurements, the higher
the reliability of the procedure (Carmines & Zeller).
According to Nunally (1970), there are at least four methods of estimating the reliability
coefficient: test-retest method (repeating method), alternative form, subdivided-rest method
(referred to as split-half method), and methods concerning the internal consistency.
The most highly recommended measure of internal consistency is provided by coefficient alpha
(α) or Cronbach’s alpha (1951); it provides a superior reliability estimate in most situations. The
nearer the value of alpha (α) to 1, the better the reliability of data.
Table: 3
Descriptive Statistics and Reliability Coefficient of Visionary, Intellectual Stimulator,
Interactive, Lifter, Passionate, Courageous, Concerned and Supportive Leadership, Decisive and
self-confident, Ethical, Empowering
Scale No. of Items Alpha Mean SD
Visionary 02 0.914 4.400 0.49487

Intellectual Stimulator 04 0.68 4.7500 0.41955
Interactive 04 0.602 4.9350 1.66661
Lifter 06 0.595 4.5350 0.39773
Passionate 03 0.697 4.4533 0.23338
Courageous 06 0.594 4.2200 0.46952
Concerned and Supportive Leadership 04 0.641 4.2500 0.31988
Decisive and self-confident 03 0.624 4.2250 0.33216
Ethical 03 0.706 4.3733 0.31327
Empowering 05 0.602 4.4467 0.37259
Note: n= 50
According to Nunnally (1978), for the early stages of the any research, the reliability of 0.50-
0.60 is sufficient although a coefficient of 0.70 or above is desirable (Hair et al., 1998).
In this study, the coefficient alphas for the different constructs were computed using the
reliability procedure in SPSS (version 12.0). The reliabilities of most of the constructs in this
study are within the acceptable range (0.60-0.80).
Means have been computed by equally weighting the mean scores of all items. On a five point
scale, mean scores are with 4.20-4.75 and standard deviations are within 0.30-1.75.
Correlation Analysis
A correlation analysis has been conducted on all the variables to explore the relationship
between variables. To interpret the strength of relationships between variables, the guidelines
suggested by Rowntree (1981) has been followed. The bivariate correlation procedure is a
subject to a two tailed test of statistical significance at two different levels highly significant
(p<.001) and significant (p<.01) or (p<.05). The results of the correlational analysis are shown
in Table 4 (next page):
From the Table: 4, it is been observed that Visionary, Intellectual Stimulator, Interactive, Lifter,
Passionate, Courageous, Concerned and Supportive Leadership, Decisive and self-confident,
Ethical, Empowering are related to Transformational leadership
Collective Results
From the reconciliation of background investigation and research outcome, it is very evident that
the factors which were assumed to have cause affect with the effect affect are relevant except
role model as the researcher was not able to find out the role models of the leaders chosen if
there is/were any. Besides, all the other factors i.e. family background, early crisis in life, success
in challenging job are substantially liable for crafting a man with the armor of transformational
leadership. After finishing out the research undertaken the researcher expresses her opinion that
the factors, Visionary, Intellectual Stimulator, Interactive, Lifter, Passionate, Courageous,
Concerned and Supportive Leadership, Decisive and self-confident, Ethical, Empowering are all
individually and collectively related significantly which is more or equal to 0.65 in the
magnitude of correlation out of 41 factors (all 41 factors are showed and analyzed in the
appendix D). Getting these ten most evident and significantly correlated factors, the researcher
went for the relational study which showed its outcome as such that these factors do have
relation with transformational leadership.
Significance of the study

Through, the demand of transformational leadership has increased tremendously due to its
importance in the complex and less predictable environment, only a few empirical research
studies of chief executives as transformational leaders are available. P. Gronn confirms this when
he writes, after nearly two decades of its existence, there are still remarkably few empirically
documented case examples of transformational leaders. In fact, except the Bennis and Nanus
study, which covers a series of 90 interviews, and Tichy and Devanna who have conducted
empirical study on 11 American and one English Transformational leaders, there are very few
evidences of empirical studies from Western and European countries on transformational leaders
at the CEO level. Of course, there have been studies on transformational leadership but not
transformational leaders. Leadership involves making difficult decisions, not only in leaders’
own work, but in the rest of their life as well. It involves difficult decisions about how and what
leaders want to lead, and how to integrate their professional aspirations with other aspirations in
their life. This small-group dinner series provides students with valuable opportunities to learn
how interesting alumni have made important leadership decisions in their lives—decisions which
have ultimately propelled them along unique and fulfilling paths. In Bangladesh, leadership,
especially transformational leadership is a very green field from the view point of research and
study. And, research and studies on transformational leaders are yet to be discovered in
Bangladesh. The people who appeared as transformational leaders in these years, their works
have not been documented properly, i.e. how they have achieved success, managed change
effectively, developed and helped people achieve results beyond their potential, so that others
can learn from their experiences. Hence, there was, is a felt need to study substantially on the
Bangladeshi transformational leaders and document their achievements
.
Conclusion
Questions may be asked to the high performing leaders in such way, “Can success lead to self-
defeating behavior? Why is it that most white-collar crime is committed by people who have
already amassed significant fortunes, power, and prestige?”
Communication is central to effective leadership in any setting. “It’s extraordinarily more
important in today’s organizations as a means of influencing and motivating. Leaders are those
entities who do more with less. But to do that they have to invest enough time or energy into
understanding the organization. On the performance side, many leaders do not want to
understand that measuring social change is challenging and costly. But rather than developing
performance measures that are both meaningful and doable, they often throw in the towel on
measurement, deeming it nearly impossible. Or they simply focus on keeping administrative
costs low without a careful consideration of what is needed to ensure.
Paths forwards to further studies

Studies on transformational leadership and transformational leaders are not explored yet. But
these studies carry a substantial weight in significance. Here, in this study, we only studied
keeping under the very narrow sphere in respect of lengths and breadth of transformational
leaders only, even no study has been yet done on transformational leadership. So, there is a
plenty of scope to study on transformational leadership and transformational leaders.
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Appendix A
Questionnaire on Transformational Leadership
in Bangladesh
▲Transformational Leader
A Transformational leader is a person who motivates and inspires followers by showing the way
to manage change by articulating a vision.
Name a Transformational Leader keeping in mind the following criteria:

6. They should be alive and accessible;
7. They should have an excellent track record;
8. They should be considered as change agents;
9. They should have made their organization as one of the best organizations during
their tenure; and
10. They should be a reputed leader.
Name: ............………………………………………...............................................
Position: ............………………………...……………................................................
Organization: ...........………………………………………................................................
▲ Assessment of Leadership
Sub dimensions:
∆ Vision
∆ Inspirational communication
∆ Intellectual stimulation
∆ Supportive leadership
∆ Personal recognition
Values:
1 = Strongly Disagree
2 = Disagree
3 = Neither Disagree nor Agree
4 = Agree
5 = Strongly Agree
3. Neither
Sub 1. Strongly 2.Disagree 5.Strongly
Leadership items Agree nor 4.Agree
dimensions Disagree Agree
Disagree
1. Has a clear understanding

1 2 3 4 5
of where we are going?
2. Has a clear sense of
Vision where he/she wants our unit 1 2 3 4 5
to be in 5 years?
3. Has no idea where the
5 4 3 2 1
organization is going (R)*?
4. Says things that make
employees proud to be a 1 2 3 4 5
part of this organization.
5. Says positive things about
Inspirational 1 2 3 4 5
the work unit.
communication
6. Encourages people to see
changing environments as
1 2 3 4 5
situations full of
opportunities.
7. Challenges me to think
about old problems in new 1 2 3 4 5
ways.
8. Has ideas that have
forced me to rethink some
Intellectual 1 2 3 4 5
things that I have never
stimulation
questioned before?
9. Has challenged me to
rethink some of my basic
1 2 3 4 5
assumptions about my
work?
10. Considers my personal

1 2 3 4 5
feelings before acting.
11. Behaves in a manner
Supportive which is thoughtful of my 1 2 3 4 5
leadership personal needs.
12. Sees that the interests of
employees are given due 1 2 3 4 5
consideration.
13. Commends me when I
1 2 3 4 5
do a better than average job.
14. Acknowledges
Personal improvement in my quality 1 2 3 4 5
recognition of work.
15. Personally compliments
me when I do outstanding 1 2 3 4 5
work.
* (R) Indicates that the item was reverse-scored
▲ Assessment of Transformational leadership
Scales:
∆ Genuine concern for others
∆ Political sensitivity and skills
∆ Decisiveness, determination, self-confidence
∆ Integrity, trustworthy, honest and open
∆ Empowers, develops potential
∆ Inspirational net worker and promoter
∆ Accessible, approachable
∆ Clarifies boundaries, involves others in decisions
∆ Encourages critical and strategic thinking
■ Genuine concern for others
1. Genuine interest in me as an individual.

1. Strongly Disagree 2. Disagree 3. Neither Disagree nor Agree 4. Agree
5. Strongly Agree
2. Develops my strengths.
5. Strongly Agree
■ Political sensitivity and skills
3. Sensitive to the political pressures that elected members face.

5. Strongly Agree
4. Understands the political dynamics of the leading group.
5. Strongly Agree
5. Can work with elected member to achieve results?
5. Strongly Agree
■ Decisiveness, determination, self-confidence
6. Decisive when required.

5. Strongly Agree
7. Prepared to take difficult decisions.
5. Strongly Agree
8. Self- confident?
5. Strongly Agree
9. Resilient to setback?
5. Strongly Agree
■ Integrity, trustworthy, honest and open
10. Makes it easy for me to admit mistakes.

5. Strongly Agree
11. Trustworthy?
5. Strongly Agree
12. Takes decisions based on moral and ethical principles.
5. Strongly Agree
■ Empowers, develops potential
13. Trusts me to take decision/initiatives on important issues.

5. Strongly Agree
14. Delegates effectively.
5. Strongly Agree
15. Enables me to use my potential.
5. Strongly Agree
■ Inspirational net worker and promoter
16. Has a wide network of links to external environment?

5. Strongly Agree
17. Effectively promotes the work/achievements of the department/ organization to the outside
world.
5. Strongly Agree
18. Is able to communicate effectively the vision of the authority/department to the pubic
community?
5. Strongly Agree
■ Accessible, approachable
19. Accessible to staff at all levels.

5. Strongly Agree
20. Keeps in touch using face-to-face communication.
5. Strongly Agree
■ Clarifies boundaries, involves others in decisions
21. Defines boundaries of responsibility.

5. Strongly Agree
22. Involves staff when making decisions.
5. Strongly Agree
23. Keeps people informed of what is going on.
5. Strongly Agree
■ Encourages critical and strategic thinking
24. Encourages the questioning of traditional approaches to the job.

5. Strongly Agree
25. Encourages people to think of wholly new approaches/solutions to problems.
5. Strongly Agree
26. Encourages strategic, rather than short-term thinking.
5. Strongly Agree
▲ Anything that you would like to share/add
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
Respondent’s Name: ...............................................................................
Designation: ...........................................................................................
Organization: ...........................................................................................
Appendix B
Questionnaire on Transformational Leaders
1. Visionary
☺ Has a clear understanding of where we are going.

1. Strongly Disagree 2. Disagree 3. Neither Disagree nor Agree
4. Agree 5. Strongly Agree
☺ Has a clear sense of where he/she wants our unit to be in 5 years.

2. Intellectual stimulator
☺ Challenges me to think about old problems in new ways.

☺ Encourages strategic, rather than short-term thinking.

☺ Has challenged me to rethink some of my basic assumptions about my work.

☺ Innovative.
3. Interactive
☺ Accessible to staff at all levels.

☺ Keeps in touch using face-to-face communication.
☺ Involves staff when making decisions.

☺ Keeps people informed of what is going on.

4. Lifter
☺ Says things that make employees proud to be a part of this organization.

☺ Says positive things about the work unit.

☺ Encourages people to see changing environments as situations full of

opportunities.
☺ Acknowledges improvement in my quality of work.

☺ Commends me when I do a better than average job.

☺ Personally compliments me when I do outstanding work.

5. Passionate
☺ Effectively promotes the work/achievements of the department/ organization to

the outside world.
☺ Is able to communicate effectively the vision of the authority/department to the

pubic community.
☺ Has a wide network of links to external environment.

6. Courageous
☺ Encourages the questioning of traditional approaches to the job.

☺ Encourages people to think of wholly new approaches/solutions to problems.


☺ Have ideas that have forced me to rethink some things that I have never
questioned before.
☺ Sensitive to the political pressures that elected members face. *R

1. Strongly Agree 2. Agree 3. Neither Disagree nor Agree
4. Disagree 5. Strongly Disagree
☺ Understands the political dynamics of the leading group.

☺ Can work with elected member to achieve results.

7. Concerned and Supportive Leadership
☺ Considers my personal feelings before acting.

☺ Behaves in a manner, which is thoughtful of personal needs.

☺ Sees that the interests of employees are given due consideration.

☺ Shows genuine interest in me as an individual.

8. Decisive and self-confident
☺ Prepared to take difficult decisions.

☺ Self- confident.
☺ Resilient to setback.
9. Ethical
☺ Trustworthy.
☺ Takes decisions based on moral and ethical principles.

☺ Makes it easy for me to admit mistakes.

10. Empowering
☺ Delegate effectively.
☺ Defines boundaries of responsibility.

☺ Trusts me to take decision/initiatives on important issues.

☺ Enables me to use my potential.

☺ Develops my strengths.
* (R) Indicates that the item was reverse-scored.
☺ Rate your Leader as a Transformational Leader;
1. Very Poor 2. Poor . 3. Moderate

4 Very Good 5. Excellent
Thank you
Appendix C
Reliability of Visionary
Case Processing Summary Reliability Statistics
N %
Cronbach's Alpha N of Items
Valid 50 100.0
Cases Excluded .914 2

0 .0
(a)
Total 50 100.0
a. List wise deletion based

on all variables in the procedure.
Reliability of Intellectual Stimulator
N %
Cases Valid Cronbach's Alpha N of Items
50 100.0
Excluded(
a) 0 .0
.68 4
Total
50 100.0

Reliability of Interactive
N %
Cases Valid 50 100.0 Cronbach's Alpha N of Items
Excluded 0 .0
(a)
Total 50 100.0 .602 4

Reliability of Lifter
Case Processing Summary
N %
Cases Valid 50 100.0
Excluded a 0 .0
Total 50 100.0
a. Listwise deletion based on all
variables in the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.595 6
Reliability of Passionate
N %
Excluded a 0 .0
Total 50 100.0
Cronbach's
Alpha N of Items
.697 3
Reliability of Courageous
N %
Excluded a 0 .0
Total 50 100.0
Cronbach's
Alpha N of Items
.594 6
Reliability of Concern & Supportive Leader

N %
Excluded a 0 .0
Total 50 100.0
Cronbach's
Alpha N of Items
.641 4
Reliability of Decisive and self-confident

N %
Excluded a 0 .0
Total 50 100.0
Cronbach's
Alpha N of Items
.624 3
Reliability of Ethical
N %
Excluded a 0 .0
Total 50 100.0
Cronbach's
Alpha N of Items
.706 3
Reliability of Empowering
N %
Excluded a 0 .0
Total 50 100.0
Cronbach's
Alpha N of Items
.602 5
Descriptives
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation

vision 50 4.00 5.00 4.7500 .41955
Int_sti 50 4.00 16.25 4.9350 1.66661
Intactv 50 3.25 5.00 4.5350 .39773
Lifter 50 3.83 5.00 4.4533 .23338
Pission 50 3.33 4.67 4.2200 .46952
Courage 50 3.83 4.83 4.2500 .31988
Con_Supr 50 3.50 4.75 4.2250 .33216
Decsiv 50 4.00 5.00 4.3733 .31327
Ethical 50 3.67 5.00 4.4467 .37259
Empwr 50 3.60 4.80 4.2280 .33566
Valid N (listwise) 50
Correlations Matrix
Correlations
ans_leadevision Int_sti Intactv Lifter PissionCourageCon_SupDecsiv Ethical Empwr

trans_leaPearson Cor 1 -.098 -.104 .031 -.130 -.123 -.086 -.093 -.018 .155 .005
Sig. (2-tailed . .497 .473 .830 .370 .395 .553 .520 .904 .283 .973
N 50 50 50 50 50 50 50 50 50 50 50
vision Pearson Cor -.098 1 .140 -.023 -.035 -.112 -.247 .046 .104 .272 .268
Sig. (2-tailed .497 . .331 .874 .811 .438 .084 .752 .474 .056 .060
N 50 50 50 50 50 50 50 50 50 50 50
Int_sti Pearson Cor -.104 .140 1 .105 .086 -.118 -.202 .117 -.008 -.059 -.106
Sig. (2-tailed .473 .331 . .466 .552 .413 .160 .419 .956 .683 .463
N 50 50 50 50 50 50 50 50 50 50 50
Intactv Pearson Cor .031 -.023 .105 1 -.028 -.033 -.077 -.235 -.230 -.303* -.275
Sig. (2-tailed .830 .874 .466 . .848 .820 .596 .101 .108 .033 .053
N 50 50 50 50 50 50 50 50 50 50 50
Lifter Pearson Cor -.130 -.035 .086 -.028 1 .116 .205 .215 -.160 -.264 .130
Sig. (2-tailed .370 .811 .552 .848 . .421 .153 .134 .267 .064 .369
N 50 50 50 50 50 50 50 50 50 50 50
Pission Pearson Cor -.123 -.112 -.118 -.033 .116 1 .472** .494** -.123 .127 .236
Sig. (2-tailed .395 .438 .413 .820 .421 . .001 .000 .396 .380 .098
N 50 50 50 50 50 50 50 50 50 50 50
Courage Pearson Cor -.086 -.247 -.202 -.077 .205 .472** 1 -.028 .147 -.328* .029
Sig. (2-tailed .553 .084 .160 .596 .153 .001 . .847 .308 .020 .844
N 50 50 50 50 50 50 50 50 50 50 50
Con_Su Pearson Cor -.093 .046 .117 -.235 .215 .494** -.028 1 -.301* .381** .052
Sig. (2-tailed .520 .752 .419 .101 .134 .000 .847 . .034 .006 .719
N 50 50 50 50 50 50 50 50 50 50 50
Decsiv Pearson Cor -.018 .104 -.008 -.230 -.160 -.123 .147 -.301* 1 -.040 .261
Sig. (2-tailed .904 .474 .956 .108 .267 .396 .308 .034 . .785 .067
N 50 50 50 50 50 50 50 50 50 50 50
Ethical Pearson Cor .155 .272 -.059 -.303* -.264 .127 -.328* .381** -.040 1 .094
Sig. (2-tailed .283 .056 .683 .033 .064 .380 .020 .006 .785 . .517
N 50 50 50 50 50 50 50 50 50 50 50
Empwr Pearson Cor .005 .268 -.106 -.275 .130 .236 .029 .052 .261 .094 1
Sig. (2-tailed .973 .060 .463 .053 .369 .098 .844 .719 .067 .517 .
N 50 50 50 50 50 50 50 50 50 50 50
*.Correlation is significant at the 0.05 level (2-tailed).
**.Correlation is significant at the 0.01 level (2-tailed).
Regression
Variables Entered/Removed b
Variables Variables
Model Entered Removed Method
1 Empwr,
Courage,
Con_Supr,
Int_sti,
Lifter,
. Enter
Intactv,
vision,
Decsiv,
Ethical, a
Pission
a. All requested variables entered.
b. Dependent Variable: trans_leader
Model Summary
Change Statistics
Adjusted Std. Error of R Square
Model R R Square R Square the Estimate Change F Change df1 df2 Sig. F Change
1 .333a .111 -.117 .52308 .111 .486 10 39 .889
a. Predictors: (Constant), Empwr, Courage, Con_Supr, Int_sti, Lifter, Intactv, vision, Decsiv, Ethical,
ANOVAb
Sum of
Model Squares df Mean Square F Sig.
1 Regression 1.329 10 .133 .486 .889a
Residual 10.671 39 .274
Total 12.000 49
a. Predictors: (Constant), Empwr, Courage, Con_Supr, Int_sti, Lifter, Intactv, visi
Decsiv, Ethical, Pission
b. Dependent Variable: trans_leader
a
Coefficients
Unstandardized Standardized
Coefficients Coefficients Correlations
Model B Std. Error Beta t Sig. Zero-order Partial Part
1 (Constant 4.045 3.544 1.141 .261
vision -.240 .202 -.203 -1.186 .243 -.098 -.187 -.179
Int_sti -.017 .048 -.057 -.350 .728 -.104 -.056 -.053
Intactv .163 .229 .131 .710 .482 .031 .113 .107
Lifter -.119 .372 -.056 -.321 .750 -.130 -.051 -.048
Pission -.243 .252 -.230 -.964 .341 -.123 -.153 -.146
Courage .126 .337 .082 .374 .710 -.086 .060 .057
Con_Sup -.081 .333 -.054 -.243 .810 -.093 -.039 -.037
Decsiv -.090 .283 -.057 -.319 .751 -.018 -.051 -.048
Ethical .389 .271 .293 1.434 .160 .155 .224 .217
Empwr .205 .275 .139 .746 .460 .005 .119 .113
a.Dependent Variable: trans_leader
Appendix D
Results of Factor analysis
1. Has a clear understanding of where we are going?
1. Has a clear understanding of where we are going? (1.00)

7. Challenges me to think about old problems in new ways. (0.81)
24. Resilient to setback? (0.67)
41. Encourages strategic, rather than short-term thinking. (0.75)
2. Has a clear sense of where he/she wants our unit to be in 5 years?

2. Has a clear sense of where he/she wants our unit to be in 5 years? (1.00)
3. Has no idea where the organization is going?

3. Has no idea where the organization is going? (1.00)
5. Says positive things about the work unit. (0.69)
31. Has a wide network of links to external environment? (0.76)
4. Says things that make employees proud to be a part of this organization.

4. Says things that make employees proud to be a part of this organization. (1.00)
27. Takes decisions based on moral and ethical principles. (0.66)
30. Enables me to use my potential. (0.75)
5. Says positive things about the work unit.

26. Trustworthy? (0.79)
35. Keeps in touch using face-to-face communication. (0.79)
6. Encourages people to see changing environments as situations full of opportunities.

(1.00)
7. Challenges me to think about old problems in new ways.

1. Has a clear understanding of where we are going? (.81)
29. Delegates effectively. (0.67)
32. Effectively promotes the work/achievements of the department/ organization to the
outside world (0.71)
8. Has ideas that have forced me to rethink some things that I have never questioned before?
8. Has ideas that have forced me to rethink some things that I have never questioned
before? (1.00)
23. Self- confident? (0.77)
39. Encourages the questioning of traditional approaches to the job. (0.81)
40. Encourages people to think of wholly new approaches/solutions to problems. (0.72)
9. Has challenged me to rethink some of my basic assumptions about my work?

9. Has challenged me to rethink some of my basic assumptions about my work? (1.00)
outside world. (0.74)
10. Considers my personal feelings before acting.

10. Considers my personal feelings before acting. (1.00)
11. Behaves in a manner which is thoughtful of personal needs.

11. Behaves in a manner which is thoughtful of personal needs. (1.00)
13. Commends me when I do a better than average job. (-0.72)
12. Sees that the interests of employees are given due consideration.
12. Sees that the interests of employees are given due consideration. (1.00)
16. Genuine interest in me as an individual. (0.67)
13. Commends me when I do a better than average job.

13. Commends me when I do a better than average job. (1.00)
11. Behaves in a manner which is thoughtful of personal needs. (-0.72)
19. Understands the political dynamics of the leading group. (0.67)
34. Accessible to staff at all levels. (0.80)
14. Acknowledges improvement in my quality of work.

14. Acknowledges improvement in my quality of work. (1.00)
17. Develops my strengths. (0.72)
21. Decisive when required. (-0.83)
15. Personally compliments me when I do outstanding work.

15. Personally compliments me when I do outstanding work. (1.00)
22. Prepared to take difficult decisions. (0.83)
16. Genuine interest in me as an individual.

16. Genuine interest in me as an individual. (1.00)
12. Sees that the interests of employees are given due consideration. (0.67)
20. Can work with elected member to achieve results? (-0.73)
36. Defines boundaries of responsibility. (-0.71)
17. Develops my strengths.

14. Acknowledges improvement in my quality of work.(0.82)
17. Develops my strengths (1.00)
21. Decisive when required. (-0.75)
28. Trusts me to take decision/initiatives on important issues. (0.70)
18. Sensitive to the political pressures that elected members face.

18. Sensitive to the political pressures that elected members face. (1.00)
38. Keeps people informed of what is going on. (-0.71)
19. Understands the political dynamics of the leading group.

22. Prepared to take difficult decisions. (-0.72)
20. Can work with elected member to achieve results?

20. Can work with elected member to achieve results? (1.00)
16. Genuine interest in me as an individual. (-0.73)
21. Decisive when required.

21. Decisive when required. (1.00)
14. Acknowledges improvement in my quality of work. (-0.83)
17. Develops my strengths. (-0.73)
22. Prepared to take difficult decisions.

23. Self- confident?

before? (0.77)
24. Resilient to setback?

29. Delegates effectively. 90.92)

25. Makes it easy for me to admit mistakes.

25. Makes it easy for me to admit mistakes. (1.00)
28. Trusts me to take decision/initiatives on important issues.(0.89)
33. Is able to communicate effectively the vision of the authority/department to the
pubic community?(0.96)
26. Trustworthy?
27. Takes decisions based on moral and ethical principles.

pubic community? (0.65)
29. Delegates effectively.

30. Enables me to use my potential.


(0.65)
31. Has a wide network of links to external environment?

7 Challenges me to think about old problems in new ways. (0.68)
32. Effectively promotes the work/achievements of the department/ organization to the outside
world.
33. Is able to communicate effectively the vision of the authority/department to the pubic
community?
pubic community? (1.00)
25. Makes it easy for me to admit mistakes. (0.96)
34. Accessible to staff at all levels.

35. Keeps in touch using face-to-face communication.


36. Defines boundaries of responsibility.

36. Defines boundaries of responsibility. (1.00)
16. Genuine interest in me as an individual. (-0.71)
37. Involves staff when making decisions.

37. Involves staff when making decisions. (1.00)
28. Trusts me to take decision/initiatives on important issues. (-0.67)
38. Keeps people informed of what is going on.

38. Keeps people informed of what is going on. (1.00)
18. Sensitive to the political pressures that elected members face. (-0.71)
39. Encourages the questioning of traditional approaches to the job.

before? (0.81)
40. Encourages people to think of wholly new approaches/solutions to problems.

before? (0.72)
41. Encourages strategic, rather than short-term thinking.

Table: 4
Correlation Matrix for Visionary, Intellectual Stimulator, Interactive, Lifter, Passionate, Courageous, Concerned and Supportive Leadership,
Decisive and self-confident, Ethical, Empowering
Scale Visionary Intellectual Interactive Lifter Passionate Courageous Concerned Decisive Ethical Empowering Transformational
Stimulator and Supportive and self-confident Leadership
Leadership
Visionary ___ 0.14 -.023 -.035 -.112 -.247 .046 .104 0 .272 .268 -.098
Intellectual ___ 0.105 0.086 -.118 -.202 0.117 -.008 -.059 -.106 -.104
Stimulator
Interactive ___ -.028 -.033 -0.077 -0.235 -0.230 -0.303* 0.275 0.034
Lifter ___ 0.116 0.205 0.215 -0.160 -0.264 0 .130 -0.130
Passionate ___ 0.472* 0.494* -0.123 0.127 0.236 -.132
Courageous ____ -0.028 0.147 0.328* 0.029 -0.086
Concerned ____ -0.301* 0.381* 0.052 - 0.039

and Supportive
Leadership
Decisive ___ -0.04 0.261 -.018

and self-confident
Ethical ___ 0.094 0.155
Empowering ____ 0.005
Transformational Leadership ____
Note: *p<.05

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An Empirical Analysis on Transformational Leadership in

An Internship Report Presented in Partial Fulfillment

INDEPENDENT UNIVERSITY, BANGLADESH

has been approved

Mr. Shubhankar Shil.

Mr. Shubhankar Shil

Subject: Submission of the internship report.

developmental strategies and the process of becoming of transformational leaders. I have

any unintended errors.

I am thankful to the members of Standard Chartered Bank. I am grateful to Mr. Tanim

Contents Page no.

2. Purpose of the study 02

4.1 Transactional Leadership 05

4.2 Transformational leadership 07

4.3 Management of Change 09

4.4 Characteristics of Transformational Leaders 12

6. Limitation of the study 14

8.2 Construction of questionnaire for executives

having close working relationship with leaders 17

8.3 Sampling Method 17

8.4 Data Collection 17

8.5 Data Analysis procedure 18

9.1 Case One 19

9.2 Case two 25

10. Research Framework 28

11. Result of Research 28

11.1 Reliability and Descriptive statistics of the Instruments 28

11.2 Correlation Analysis 30

12. Collective Result 32

13. Significance of the study 32

15. Paths forwarded to further studies 33

1. Operational Definitions of Measured Variable 14

3. Descriptive Statistics and Reliability Coefficient 29

1. The Conceptual Framework 28

Transformational leadership is one of the most recent conceptualization of leadership concepts. It

has been specified as an important mechanism of introducing organizational changes. Generally,

transformational leadership is viewed as superior to the more conventional transactional

leadership and produces desirable leadership outcomes. The identified aspects of

components. However, Transformational leadership is an inimitable topic in Bangladesh. Studies

Transformational Leadership; to understand the attributes, styles, influences and developmental

TODAY”S ORGANIZATIONS DEPEND ON TWO resources to fulfill their missions. One, of

Purpose of the study

decision-making by the hierarchy hindered responsiveness to markets. Further, the invasion by

to move resources from areas of smaller to greater productivity. Though, transforming an

Characteristics of Transformational Leaders

i. Visionary: Transformational leader have to articulate a shared vision with his

The above discussion on characteristics of transformational leaders makes it obvious that

Literature confirms that transformational leadership asks for transcendence. By

Measured Variable Operational Definitions

Transformational Leadership J. M. Burns, Leadership, Cited, pp. 20

Limitation of the study

June 10, 2006- June 25, 2006 Problem searching

Selection of Transformational leadership.

Selection of Transformational Leader

2. opinion of senior executives, academicians and consultants.

3. questionnaire survey method.

Data Analysis Procedure

In the light of the purposes, the following hypotheses are formulated:

As founder of the Grameen Movement, Professor Muhammad Yunus is a revolutionary. His

Finally, Quadir convinced Norway's state-backed telecoms company, Telenor, to take a

The conceptual framework for the study in question is drawn below

Fig 1: The conceptual framework

Scale No. of Items Alpha Mean SD