Transformational leadership has proved remarkably effective in ensuring that employees understand the vision of the organization, which their leaders rally them towards the attainment. Transformational leaders, according to Bass and Riggio (2012) are also ethical, wield power from a set of values, and communicate symbolically to ensure the organizational vision is attained. Further, Bass and Riggio state that transformational leaders possess an inborn ability to adapt and align their strategies in an ever-changing environment. These qualities possessed by transformational leaders are essential for strategic planning as they help align followers towards the attainment of organizational objectives.
Transformational leadership concept also plays a vital role in strategic planning since such leaders tend to focus on affirmative moral obligations of an organization. Lowder (1996) argues that transformational leaders focus a lot on social ethics theory, which holds that an organization has the positive moral duty to do that, which is good for its stakeholders. At the same time, transformational leaders strongly believe that companies have a moral duty to do good for its employees. Emphasizing on ethics in the decision-making process is extremely important since it ensures that the organization only does that which is beneficial to its stakeholders.
Transformational leadership also plays a critical role in strategic planning due to its inspirational motivational. According to Lowder (2009), transformational leadership greatly influences the culture of an organization through actions, decision-making, modeling, and personal attitude, which, in turn, positively boost the values and perceptions of employees in an organization. According to Bass and Riggio (2012), the transformational leader makes decisions in accordance with Kantian Capitalism perspective free of employees or people as a means to an end in accomplishing objectives.
This is because transformational leaders do not use their employees to achieve goals without seeking their consent.
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