the estimated true score correlationwas still positive, Lowe et al. indicated that it was considerablylower when ratings of leadership and performance werecollected from different sources.DeGroot, Kiker, and Cross (2000) completed a third metaanalysisof the transformational and transactional leadership literature,reconfirming the positive relationship between ratings ofcharismatic–transformational leadership and performance reportedearlier. They also reported that the relationship between charismaticleadership and performance varied when leadership andperformance were examined at an individual versus group level,concluding that “results show an effect size at the group level ofanalysis that is double in magnitude relative to the effect size at the
individual level” (DeGroot et al., 2000, p. 363).
Although the literature on transformational and transactional
leadership has grown rapidly over the past 15 years, only a handful
of studies have examined how transformational and transactional
leadership predict performance. For example, Howell and Avolio
(1993) reported that transformational, but not transactional, leadership
of financial managers positively predicted unit performance
Bernard M. Bass, Center for Leadership Studies and School of Management,
Binghamton University; Bruce J. Avolio, Department of Management
and College of Business Administration, University of Nebraska—
Lincoln; Dong I. Jung, Department of Management, San Diego State
University; Yair Berson, Institute for Technology and Enterprise, PolytechnicUniversity.Bernard M. Bass and Bruce J. Avolio served as co-principal investigatorsin a project (Contract DASW01-008) sponsored by the U.S. ArmyResearch Institute for the Behavioral and Social Sciences that supportedthe collection of data used in this study. We thank retired LieutenantGeneral W. F. Ulmer and Colonels M. Shaler and W. M. Snodgrass fortheir active consultation in all phases of the project, as well as WendyClark. We also express our appreciation to the generals in command of the10th Mountain and the 82d and 101st Airborne divisions for their cooperationand the officers and enlisted men. Finally, we thank Mike Drillings,who was our contract monitor at the Army Research Institute.Correspondence concerning this article should be addressed to Bruce J.Avolio, Department of Management, 209 College of Business Administration,University of Nebraska, Lincoln, Nebraska 68588-0491. E-mail:
bavolio2@unl.edu
Journal of Applied
Psychology Copyright 2003 by the American Psychological Association, Inc.
2003, Vol. 88, No. 2, 207–218 0021-9010/03/$12.00 DOI: 10.1037/0021-9010.88.2.207
207
over a 1-year period. Geyer and Steyrer (1998) evaluated the
leadership of managers heading Austrian branch banks, reporting
a stronger positive relationship between transformational leadership
and long- versus short-term performance. Geyer and Steyrer
speculated the stronger relationship between transformational
leadership and long-term performance may have been due to
transformational leaders creating a more inspired, committed, and
cohesive culture in their banks.
Emergence of transformational leadership depends in part on the
context in which the leader and followers interact. For example,
Bass (1985) argued that “transformational leadership is more
likely to reflect social values and to emerge in times of distress and
change while transactional leadership is
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