Final answer:
Transformational theory is a contemporary approach to leadership that focuses on four attributes possessed by transformational leaders: charisma, inspiration, intellectual stimulation, and consideration.
Step-by-step explanation:
Transformational theory is a contemporary approach to leadership that focuses on four attributes possessed by transformational leaders: charisma, inspiration, intellectual stimulation, and consideration. Transformational leaders are role models who inspire and motivate their followers to exceed their own self-interests and work towards the betterment of the organization or society as a whole. This theory suggests that transformational leadership is more effective than transactional leadership, which focuses on rewards and punishments to achieve organizational goals.