Final answer:
Transformational leadership is defined by its ability to inspire and elevate followers through charisma, inspiration, intellectual stimulation, and consideration. It aims to lead both individuals and organizations towards exceptional achievements, differing from transactional leadership that relies on rewards and punishments.
Step-by-step explanation:
The significant characteristic of transformational leadership is that it offers an approach to leading both subordinates and organizations. Transformational leadership is distinguished from transactional leadership in that it involves leaders who are charismatic, inspirational, intellectually stimulating, and considerate. These leaders empower their followers, encourage innovation and critical thinking, and aim for higher goals beyond the usual transactions of reward and punishment.
Transformational leadership is not about giving a leader absolute power, nor does it reduce the leader's responsibility. Instead, it fosters an environment where the leader works collaboratively with their subordinates, thus it is not quite accurate to say that it balances power between the leader and their followers; rather, transformational leaders strive to inspire and elevate their followers to achieve exceptional outcomes.
Historical examples like Hitler, despite the negative connotations, illustrate the powerful influence a charismatic leader can have, albeit with vastly different outcomes depending on the leader's intentions and the societal context.