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ders should encourage their followers instead of commanding and should act as a coach rather than bosses. Ray Smith, Chief Executive Officer of Bell Atlantic expressed his vision of new leadership style emerging in the United States as a moral commitment where the leaders and employees should work as partners in achieving the goals of their organisations” (Sarros & Santora, 2001). Trust on the employees is most important in this.

Lot of researches establish the validity of the concept, transformational leadership which brings change and movement in the organisation. Many researchers define transformational leadership as one that motivates people to create change, by distinguishing it with transactional leadership that uses the power and authority that exists in the organisation. Transformational style is denoted as leader of innovation and transactional style as manager of planning and policy (King, 1994). Transactional style depends on the current structure in the organisation while transformational style creates new pathways (Mink, 1992). An effective transformational leader should have a clear sense of goals to guide their organisation in to new directions (Burns, 1978). They should have the capability to foresee the change to a long term. The interaction among the people in an organisation and the flow of information gives rise to the need for change in the organisation. A fresh look at trends and feedback from frontline people becomes the catalyst for change (Herrington, Bonem & Furr, 2000). Transformational leadership also influences the culture of the organisation. If the culture of the organisation itself is cultural, then the growth of individual and the organisation becomes more effective (Bass & Avolio, 1993). The cultures of people in and beyond the organisation are also influenced by this. However, transformational leadership have potential dangers associated with it if the leader doesn’t rely on a strong ethical and moral foundation as the danger lies in the leader-follower interactions. Such kind of behaviour is defined as pseudo-transformational leadership.

From the year 1999 to 2004, there has been a considerable increase in the research on servant leadership as a result of emergence of certain servant leadership models developed by several researchers. Trust is a common factor in all the research conducted on servant leadership. Servant leaders generate and sustain trust through their communicative and supportive behaviour (Tschannen-Moran & Hoy, 1998). “Servant leadership begins with a natural feeling that one wants to serve, to serve first and then conscious choice brings them to aspire to lead, who is sharply different from one who is leader right from the beginning. Listening and understanding, imagination, acceptance and empathy, intuition, foresight, the ability to persuade, healing and serving, the ability to build community etc are some of the other attributes of a servant leader” (Greenleaf,1997). It not only builds the trust between the leaders and the followers but also among the followers themselves and is thus established as an important variable in the development and maintenance of organisational trust (Joseph & Winston, 2005). Studies indicate that servant leadership has the potential to improve the organisational satisfaction, productivity, safety practices and financial performance.

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