Final answer:
Transformational leadership refers to a leadership style that brings about major changes within an organization. It is characterized by leaders who possess attributes such as charisma, inspiration, intellectual stimulation, and consideration. This type of leadership is more effective than transactional approaches according to research.
Step-by-step explanation:
Transformational leadership refers to a leadership style that brings about significant changes within an organization. It is characterized by leaders who possess four attributes: charisma, inspiration, intellectual stimulation, and consideration. Research has shown that transformational leadership approaches are more effective than transactional approaches, although individual leaders may exhibit elements of both styles. This type of leadership is important in management and has been extensively studied within the field of industrial-organizational (I-O) psychology.