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In current literature on organizations, there has been a new formulation emerging along with studies on charismatic leadership. This formulation is open to innovation, change and reformation. Transformational leadership greatly enhances the leader’s and his followers'ethic, desire and human relations. Transformational leadership is a successful way of materialising radical changes in societies and organizations. Transformational leaders benefit from three behavioural types. These are charismatic leadership, individualized thought and intellectual stimulation respectively. It can be argued that it is necessary to get transformational leadership in organizations to make a step forward and pursue developmental policies.

Because, those who are rank and files, should have enthusiasm and perspectives to make them learn and be open to innovation. Transformational leaders don’t merely consider innovation and performance, they also take into consideration of increasing those rank and files’confidence and happiness.