Microsoft Word - sabas, V4 I2 P3.docx South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 113 Volume and Issues Obtainable at Center for Business Research and Consulting, IBMAS, The Islamia University of Bahawalpur Pakistan South Asian Review of Business and Administrative Studies ISSN: 2710-5318 ; ISSN (E): 2710-5164 Volume 4, No.2, December 2022 Journal homepage: https://journals.iub.edu.pk/index.php/sabas How Does Transformational Leadership Style Effect on the Organizational Performance? The Case of Educational Institutions Muhammad Hafeez, Department of Education, Institute of Southern Punjab, Multan, Pakistan Samikshya Bidari, Institute for Excellence in Higher Education, Tohoku University, Japan ARTICLE DETAILS ABSTRACT History Revised format: Nov 2022 Available Online: Dec 2022 Keywords Transformational Leadership, Effect, Organizational Performance, Educational Institutions Transformational leadership style can motivate and satisfy followers by helping and inspiring them in a friendly manner. A transformational leader has a clear vision about how to manage an educational institution to achieve the defined goals and objectives. He/she has the ability to create conducive learning environment for the teachers and students. A transformational leader has the skills and potentials to develop the learning community in an educational institution. A review of previous researches studies was done to conclude the previous researches that how does transformational leadership style effect of on the organizational performance in case of educational institutions. A total of 178 previous studies were selected by following the inclusion and exclusion criteria. The results of the review of researches studies indicated that transformational leadership style has a great impact on the performance of the educational institutions. The transformational leader can build a learning community by involving teachers, students and society by establishing a vision and creating conducive learning environment in an educational institution. Moreover, transformational leadership model is also discussed in this study. © 2022 The authors, under a Creative Commons Attribution Non- Commercial 4.0 international license Corresponding author’s email address: mh9589041@gmail.com DOI: https://doi.org/10.52461/sabas.v4i2.1514 Introduction Academic leadership is dependent on individuals who play significant roles in educational institution administration. These individuals are at the heart of organizational and individual growth, which eventually leads to the development of society (Jovanovica & Ciricb, 2016). For a long time, the process of categorizing aspects, behaviour, and characteristics of effective leadership in educational institutions has been extensively researched (Antonopoulou et al., 2021). The dynamics and characteristics of the educational sector are unique and serve the objectives of meeting educational institutional demands (Al-Mansoori & Koç, 2019). A leadership approach known as transformational leadership encourages team members to grow and perform above and beyond what was previously anticipated (Andriani et al., 20218). Transformational leadership encourages the growth of people around them. Lai et al., (2020) stated that transformational leaders South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 114 that urge people to meet expectations can change their views. Transformational leadership focuses on how leaders influence their people (Bush, 2014). Distinct leadership styles have different effects on the outcomes of employees. Transformational leadership abilities lead to businesses performing above and beyond expectations. It refers to how a father treats his children in life situations, and it is based on individualized allegiance to the leader and complete surrender to him (Budur, 2020). This ultimately resulted in the paternalistic boss who mentors his employees in both their professional and personal life (Asad et al., 2021). Since a few years ago, organizational commitment and work happiness have become more crucial. These comforts predict employee feedback as good and negative attitudes about work and the business, which may have a significant impact on how people behave in an organization (Andriani et al., 2018). Numerous academic studies have demonstrated the enormous influence that leadership and organizational culture have on workers' loyalty, trust, and contentment (Atan & Mahmood, 2019; Royhatudin et al., 2020; Hai et al., 2021). Problem Statement and Objectives of the Study Several research studies have revealed that leadership style has a prodigious effect on the performance of individuals as well as the organization (Majeed et al., 2017; Toufaili, 2018; Nicdao, 2019; Top et al., 2020; Al-Husseini et al., 2021). A transformational leadership style is the most influential style of leaders as it changes the individuals by making it a purposeful individual by creating the positive changes. An academic leader having transformational leadership qualities can improve the performance of the individual teachers and educational institutions by influencing on their abilities. He/she can develop the culture of performance in an educational organization by making purposeful changes in the individual teachers. In the current age, the complexity of problems has increased much more. Now the leaders have to deal with several problems at a time to keep the track on right line according to the defined goals and for the smooth running of the educational institution. The current age leader has the required abilities and skills to deal all the problems according to the vision and mission of the educational institution. So, it is a time of need to discuss the role of such leadership style that have the abilities to deal with all the complex problems according to the vision statement of the educational institution. So, by keeping in view the importance of transformational leadership style in the current scenario, the objective of current review research was to determine how does the transformational leadership style effect on an organizational performance in case of educational institutions. Review of The Literature Transformational Leadership Style A leader's leadership style is the repeating pattern of behaviours that he or she exhibits. A leader's style is the usual pattern of behaviour used to persuade subordinates to accomplish organizational objectives. A leader's approach to each of the three functions giving direction, carrying out plans, and motivating people is stated to as their leadership style (Putra et al., 2020). Transformational leaders are endowed with charisma. They envision and communicate a compelling future in order to motivate their subordinates and appeal to their ideals and moral convictions. This sort of leadership requires leaders and employees to have an emotional relationship. Transformational leaders are sincerely concerned about the well-being of their employees (Supermane, 2019). Transformational leadership includes sensitivity, understanding, compassion, and the ability to develop relationships. It encourages a culture of trust, increases employees' self-esteem, and aids in their personal development (Mufeed, 2018). When compared to other leadership styles, the transformational leadership style has garnered considerable support among leadership scholars due to its unique ways of inspiring employee South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 115 creativity. Transformational leaders boost their colleagues' confidence and values, and as a result, their performance exceeds their expectations (Arifin & Maunah, 2020). Transformational leadership, encourages workers to fulfil their high-level wants as outlined in Maslow's hierarchy of needs by instilling in them the value of taking on organizational responsibility (Wang & Hu, 2017). Transformational leaders show a great concern for their workforce, particularly for their needs and personal growth. The traits of a transformative leader inspire the workforce to be loyal, respect, and impressed. Employees' job performance has also improved, which is affected by the traits and skills of transformational leaders. In an organisation, there is some mutual trust and respect between the leaders and the employees, and they work together to achieve the organisational goals. Transformational leadership is also stated as a leadership style that may inspire good changes in the culture, structure, and strategy of an organisation (Lo et al., 2020). With the definitive goal of transforming supporters into leaders, it produces positive and meaningful development in each follower on an individual basis. Transformational leadership has been graded using inspirational motivation, idealistic impact, intellectual stimulation, idealized effect behavioural, and employee care. Through the employment of higher ideals and embedded internal moral standards, transformational leadership is a technique for inspiring followers to act in ways that are more advantageous to the company than to themselves (Mukhtar et al., 2020). A transformative leader sees their followers' needs and strives to address those needs with their complete support. The leader's personality and ability to bring about good change via the dissemination of an inspiring vision and motivating objectives that improve employee performance are what constitute transformational leadership (Puni et al., 2018). The fundamental tenet of the transformational leadership theory is that transformational leaders persuade their followers to perform above the organization's desired threshold result by influencing their followers' values, beliefs, norms, and attitudes (Jameel & Ahmad, 2019). Berkovich & Eyal, (2021) argued that transformational leadership is motivating and that leaders can effectively change followers' attitudes, ideas, and behavioural patterns for the company, provided evidence in support of this assertion. According to the authors, transformational leaders assist followers see the value of the whole and how positively organisational outcomes impact employees' performance. Table 1 shows the traits of transformational leaders. Table 1. Traits of Transformational Leaders Sr. No Trait Explanation 1 Possibility of new thinking No matter where new ideas come from, transformational leaders are always receptive to them. They are always searching for novel solutions to solve issues and are receptive to all kinds of fresh concepts. 2 Mind- broadening ability It is common for transformative leadership to require altering people's views of how things should operate. It is essential to do this through comprehending the justifications for people's current beliefs and learning how to shape their thinking. 3 Active listening commitment Transformative leaders listen to others' ideas with an open mind and respond to them without bias or resolve. They commit to use active listening techniques to provide their team members a sense of being seen, being heard, and being appreciated. They encourage individuals to express themselves without self-censorship by putting these safeguards in place. 4 Ability to accept intelligent risks Such risks must be examined, along with the potential implications for the future of the company, by a transformational leader. The leader must be ready to pursue a notion further if it seems practical South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 116 and the benefits exceed the risks. When the threat is too great, the leader must recognize that a different plan is necessary. 5 Willingness to accept responsibility Any invention venturing into uncharted territory must be willing to assume responsibility for the results, good or bad. No one will follow a leader who expects others to shoulder the burden for a faulty strategy. All of a transformative leader's decisions, including approving other people's ideas, must be accountable. 6 Trust in team members Autonomy is required for people to conceive and form new ideas. The transformative leader trusts the team members to chart their own paths to success. 7 Ability to motivate engagement Everyone must be expected to innovate, not just one or two people with brilliant ideas, according to the transformative leader. The leader's job is to set an example of creativity and innovation across the world. Teams with transformative leaders are ones where everyone shares ideas. Transformational Leadership Model A transformational leadership style concentrates on the needs and development of followers. Managers that practise transformational leadership put special emphasis on helping people grow their morals, drive, and values in addition to their skills (Ali et al., 2019). In order to establish a clear knowledge of followers' interests, values, and degree of motivation, transformational leadership serves as a conduit between them and the leaders. Essentially, it assists followers in achieving their goals while working in an organisational context; it promotes communication and encourages followers to be adaptable to new and improved techniques and environmental changes (Ullah, 2018). A transformational leader's conduct springs from the leader's own personal values and beliefs and inspires followers to go above and beyond what is required (Bass, 1985). Uplifting followers and taking into account their needs are the main goals of transformative leadership. Managers that place a strong emphasis on transformational leadership spend a lot of time and energy encouraging the morals, values, and general value system of their staff members (Hambali & Idris, 2020). In transformative leadership, the followers have complete faith in, respect for, and loyalty toward the leader. Further, they are inspired to go above and beyond what was initially anticipated (Aguas et al., 20217). The team members are then motivated by the transformational leader by first increasing their awareness of the significance of task results, motivating them to put the needs of the group ahead of their personal interests, and igniting their higher-order demands. Leaders encourage followers to exercise critical thought and consider novel job strategies, which stimulates the mind (Ndlovu et al., 2018). Transformational leadership increases an organization's level of performance, satisfaction, and dedication to its goals. Bass (1990) defined transformational leadership as having four components: charisma, inspiring motivation, intellectual stimulation, and individual consideration (Renjith et al., 2015). Components of Transformational Leadership Model Idealized Influence The idealized form of influence is also known as charisma, and it is characterized by having a clear vision and a sense of purpose, inspiring a sense of community pride, and earning people's respect and trust. Employees are motivated by charismatic behaviour to put the team's needs ahead of their own, ensuring that challenges will be conquered and fostering confidence and certainty in the attainment and execution of influence. Followers invest an excessive degree of faith and trust in charismatic leaders (Kouni et al., 2018). Jyoti & Bhau, (2015) stated that a transformative leader's idealized and behavioural charisma motivates followers to identify with the leader. A South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 117 transformative leader's personalized relationship fosters an environment in which employees are happy and pleased. As a result, their total performance improves, which in turn raises production. Inspirational Motivation Inspirational motivation, which is often combined with charm and focuses on a leader setting higher standards to position oneself as a benchmark for others to follow, is the second element of the transformational leadership paradigm (Vu et al., 2020). The followers look up to their inspirational leader as someone who can make emotional appeals to raise awareness and understanding of goals that benefit both parties. This is indicated by the communication of high expectations and the plain declaration of relevant goals. The leader consistently projects optimism for the future, evoking an exciting sense of organisational transformation, and providing a compelling future vision (Zacharo et al., 2018). Motivation happens when leaders give their followers' work significance and challenges; as a result, teamwork, excitement, and optimism are sparked. The leader inspires people to imagine appealing future states for the organisation and themselves (Freihat, 2020). Intellectual Stimulation Intellectual stimulation offers followers with challenging new ideas and motivates them to depart from traditional ways of thinking. A leader is defined as someone who fosters intelligence, logical reasoning, deliberate problem-solving, and methodical aptitude (Duyan & Yildiz, 2020). The characteristics include finding diverse views when solving difficulties, providing new ways of assessing how to perform tasks, and encouraging re-thinking of previously unquestioned concepts. The leader encourages the followers to be inquisitive by questioning assumptions and creative by rethinking problems and addressing everyday situations (Majeed & Jamshed, 2021). Individual Consideration The fourth and final component of the transformational leadership approach is individual consideration. Followers are established by mentorship and coaching. The leader acts as a tutor to the followers, carefully noticing the differences between individuals. The leader is attentive to others' concerns as well as mentoring and aiding others in finding and developing their talents (Mbithi et al., 2016). Litz & Scott, (2017) emphasised the importance of treating followers as unique individuals in order to increase their maturity levels and improve their ability to effectively meet their objectives and obstacles. Research Question How does Transformational Leadership Style improve the Organizational Performance? The Case of Educational Institutions Methodology Article Selection Process Articles included in this review study were selected by searching Scopus, the Web of Science, and the ERIC databases. Initially, 257 studies were identified. After removing the duplicate records of 19 studies, the first and second authors revised all the studies regarding titles and abstracts based on inclusion and exclusion criteria. After removing the duplicate studies, the remaining studies were 238 for screening. Records excluded on the basis of the abstract review were n=16, not relevant n=13, and not in English n=2. The total full-text articles assessed for eligibility obtained were n=207. The full-text articles that have no link between transformational leadership style and improvement in educational institutions were also excluded n=29. So, the final studies included in the review were obtained as n=178. The article selection process followed by the Prisma diagram is shown in figure 1. South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 118 Figure 1. Prisma Flow Diagram for Article Selection Results How does Transformational Leadership Style improve the Organizational Performance? The Case of Educational Institutions Leadership Style and Performance Leadership has been acknowledged as an important subject in the realm of organisational behaviour in the literature. The impacts of leadership on interpersonal and organisational interactions are the most dynamic of any factor. In other words, leadership skill determines management's ability to carry out a joint endeavor. Outstanding leadership meets the requirements of followers while maximizing their capacity for efficiency and achieving organisational objectives. Leadership is the use of a leading strategy to offer a motivating justification and to optimize the staff's growth potential. Numerous factors suggested that there is a connection between organizational performance and leadership style (Kalsoom et al., 2018). Understanding how leadership affects performance is crucial as according to some experts, it is one of the most important aspects impacting the performance of a company. In order to improve organizational performance, effective management is seen as a key driver of managerial progress and a sustainable competitive advantage. For instance, transactional leadership ensures that employees have the tools they need to complete their jobs and links job performance to worthwhile rewards to enable firms more effectively accomplish their current goals. Leaders with an eye on the future South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 119 create a strategic vision for that condition, convey that vision through metaphors and frames, serve as examples of that goal by acting consistently, and foster dedication to that vision (Masry- Herzallah & Stavissky, 2021). Transformational Leadership Style and Organizational Performance Transformative leadership's key objectives are to uplift followers and consider their needs. Managers that place a high focus on transformational leadership actively monitor the complete value systems, morals, abilities, and motivation of their team members. The excellent communication skills of transformational leadership enable followers and leaders to have a thorough understanding of one another's motivational levels, values, and interests. Transformational leaders motivate their people to think beyond their own interests. The charismatic abilities of transformational leaders, their ability to meet the emotional demands of their followers, and their ability to engage their followers' brains are just a few of the many aspects that contribute to their effectiveness (Alatawi, 2017). A self-defining and gratifying relationship with a person or group defines transformational leaders. Transformational leaders' ideological and behavioural charm persuade people to relate with them. People perform better overall in environments where they feel happy thanks to a transformative leader's individualized relationships. As a result, it is possible to assert that there is a positive relationship between transformational leadership and organisational performance (Milhem et al., 2019). Performance of the organisation is highly impacted by transformational leadership style. The effectiveness of an organisation is significantly influenced by its leadership principles. The many forms of leadership styles are related to performance and organisational culture. To exploit the creative environment and enable employees to work creatively, transformational leaders motivate and empower their followers to take calculated risks and own their outcomes. Furthermore, transformational leaders encourage their staff to find alternate ways to complete their tasks in order to produce unique and creative ideas (Lappalainen et al., 2020). Several studies have found a favourable and significant association between transformative leadership and organisational success (Fan et al., 2017; Top et al., 2020). Leaders must provide information through modelling learning behaviours in order to inspire staff to create new concepts. Organizational innovation greatly benefits from the intellectual stimulation and inspiring motivation of leaders. With a vision that inspires employees to perform creatively, which leads to organisational success, leaders with transformational leadership skills foster creativity. Numerous studies have provided empirical support for the beneficial association between these leaders and innovation (Shafi et al., 2020). Transformational Leadership in Educational Institutions Transformational leaders have the power to change an organization's employees and culture. Leaders that employ transformational leadership techniques bring about admirable changes within an organisation. In order to prepare principals to use accountability and achievement data to drive instruction, serve as an instructional coach, challenge the status quo, motivate and mentor staff, manage personnel, deal with disruptions in and out of the school, and comprehend the impact of economic, social, technological, and global change on education, transformational leadership practices must be taught to principals in universities and alternative preparation programmes. Leadership programmes must adapt their curriculum and programmes to meet the growing demands of the principal ship. Leadership programmes should use a curriculum that contains a set of specified leadership behaviours (Nuel et al., 2021). Transformational leaders who are competent and gifted are crucial to the success of change efforts. High-performing school principals generate positive change in their organisations by establishing trust among stakeholders and fostering a healthy school culture. Principal leaders create their culture by highlighting victories, disseminating success tales, and reiterating established standards and principles. In high- performing schools, school leaders enhance the environment, the drive, and the productivity of the South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 120 teachers and employees, which changes the organisation (Tintoré, 2019; Madjid & Samsudin, 2021). Transformational Leadership and Teacher’s Performance The effectiveness of teachers is directly correlated with the leadership of a school's principal. A mediator is deemed to be a leader. They have the capacity to empower and train teachers to improve educational initiatives (Top et al., 2020). To accomplish corporate objectives, the transformational leadership style emphasizes enhancing followers' intellectual growth, self- confidence, sense of team, and excitement. Transformational leadership emphasizes information sharing among employees. The goal of transformational leadership approach is to infuse the company with change and creativity. Teachers value transformational leadership approaches in principals, and they see these leaders as role models who instill confidence in the school community (Khan et al., 2021). Teachers are more satisfied with their educational environments when administrators exhibit transformational leadership, especially when it takes the form of tailored thoughtfulness that fosters an amicable and reliable connection between teachers and principals. Teachers highly evaluate principals who exhibit transformational leadership traits because they frequently provide teacher support, encourage introspection, and are thought to be great student disciplinarians who are focused on raising responsible children. Teacher commitment is improved when principals exhibit transformational leadership, particularly the transformational leadership traits of intellectual stimulation and vision creation (Devi & Subiyantoro, 2021). Transformational leadership techniques improve teacher internal states and improve student success in reading and math. Teachers' internal states improve, which raises school performance and student progress. Individualized assistance is one transformative leadership strategy that encourages student accomplishment more than others. It has been discovered that transformational leadership behaviours have a beneficial impact on teachers' motivation to work towards enhancing their instructional strategies and classroom management abilities (Madjid & Samsudin, 2021). Ahmad & Rochimah, (2021) stated that recognizing the requirement for soothing leadership behaviour allows for the optimum performance development. This is due to the ability of a headmaster to shape the performance of schools and become a source of influence in life and at school. A principal's innovations and teachers' performance are directly related (Aguas et al., 2017). Tambingon, (2018) backed up this study by claiming that principal leadership influences certified instructors' performance. Nicdao, (2019) identified that incorporating such elements impacts not only the individual but also the group they lead in order to operate best. A leader's actions will generally have an impact on their followers. Majeed & Jamshed, (2021) demonstrated in their study how a principal's transformative leadership may inspire his or her team to go above and beyond the call of duty. This is in line with the findings of Madjid & Samsudin, (2021) study, which showed that transformational leadership significantly and favourably impacts teachers' performance. In another study, Hai et al., (2021) showed that invention and explanation fundamentally demonstrate that a school principal's leadership successfully improves teacher effectiveness. This is not distinct from the leader's policy of teacher empowerment. How does transformational Leadership Style Effect on an educational institution? A Transformational leader can affect the educational institution by adopting the following steps: Develop and Follow a Vision The vision is the most and important and key factor for the development of an educational institution. Every teacher should support the school's vision since it is a statement about how the educational institutions will develop in the future. To develop the vision, a leader must assess the educational organisation they are in charge of. To develop the vision to eliminate the shortcomings, they must assess the institute's deficiencies (Atan and Mahmood, 2019). A vision needs to be South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 121 fueled by drive, optimism, and lofty objectives. Vision indicates that the leader is aware of the fundamental principles, primary functions, and desired outcomes of the company. Teachers might be motivated by vision to do particularly well. The head of the school will exhort everyone on staff to align their attitudes with the mission. The identification and analysis of several short-term or micro activities are required while creating the vision of an educational institution. Finding these micro tasks are crucial because by observing how they are carried out, a leader can start to analyze institutional leadership from a different perspective than what it is and how it will be incorporated into the curricula, cultures, attitudes, and energies of the educational institutions. The mission statement for the educational institutions will be created by the vision (Baba, 2022). To complete the assigned task, the leader must be able to sway the entire workforce. Idealized influence is the term used to describe charismatic behaviours by leaders that are based on their beliefs, values, and sense of purpose. The mission and vision are explained in depth to the whole team by transformational leaders, who also serve as an interpreter of the purpose and vision. People want to follow a leader that is driven, has a distinct vision, and communicates the purpose to others effectively. People want to follow a leader they can connect to; therefore, charisma clearly plays a part in drawing them to the objective. The goals and particulars of the educational institution are contained in the mission. The educational institution is divided into smaller systems like an organism. Each little system has to have a goal that ties back to the institute's aim. The transformative leader must divide the educational institution into smaller groups and engage each one individually (Berkovich and Eyal, 2021). Collecting and Analyzing the Data For an educational institution to develop, data collecting is crucial. The leader must understand what is functioning, where there is room for improvement, and what kind of progress programmes are making inside the educational institution. The manager has to examine the last three to five years of data and assess any increases or decreases in test results. The institute's leader must determine if it has been rezoned or whether the teachers have not been performing to expectations in the classroom. The next stage is to implement the plans and gather the data once the data plans have been formed inside the educational institutions (Duyan and Yildiz, 2020). Teachers must work together to collect the data and put in effort to enter it correctly. The institutional leaders' next step is to assess the data and decide whether or not programmes are necessary based on their analysis. Making continual, little adjustments to how data is gathered or utilized is the ultimate phase in data analysis. Data may be a crucial tool for transformational leaders as they create learning communities inside educational institutions. The window into a student's academic success can be provided via data (Masry-Herzallah and Stavissky, 2021). Building a Positive Educational Culture Mukhtar et al., (2020) discovered in a study that principals' and instructors' attitudes establish an environment for learning, also known as institutional climate, which determines its efficacy. They also demonstrated that trust, shared vision, and openness foster favourable school climate conditions. According to Freihat (2020), institutional leaders must provide teachers the freedom to create a supportive atmosphere by fostering professional learning communities, holding them to high standards, and providing them with resources, planning time, professional development, and mentorship programmes. The institutional management must comprehend the makeup of its faculty, their origins, their demands, and how to inspire a workforce. The institutional culture is the rhythm that parents, children, and instructors follow. The leadership of the educational institution controls this. It is crucial to have a leader that supports establishing parental support networks (Hambali and Idris, 2020). To develop collaboration among the school, family, and community, it is vital to establish links between parents and the school; this may be a means to reduce school punishment and enhance student conduct (Jameel and Ahmad, 2019). Numerous South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 122 studies have found that having a strong transformational leader who fosters collegial support, community support, and support from all stakeholders is crucial for bringing about meaningful change in educational institutions (Milhem et al., 2019). Engage the Community There are many ways to connect with the community to ensure the success of educational institutions. To mobilize the community, the leader must set up community socials on institutional grounds. By recognizing the diversity and culture of those who reside in the community and celebrating in such a way, the transformational leader may engage the local community (Supermane, 2019). Collaboration is more than just making good friends; it's about creating strong, productive working relationships. Building ties with the community that will last for a long time is crucial. The institutional leader should think about creating a community based on institutional principles. When working with children who have extenuating circumstances, it's critical to have a structure in place for supporting families (Ullah, 2018). The organization's head needs to recruit smart locals to work as volunteers in the school's faculty. The coordinator should look for outside funding through grants available for community initiatives (Tambingon, 2018).Transformational leaders can contribute to the strengthening of family educational cultures by promoting trust and communication between families and educational institutions, assisting in the provision of resources to families, educating and supporting families on issues related to parenting and institutions, and adjusting institutional practices to accommodate the educational cultures that families do have. These programmes are intended to foster and sustain communal culture. It is an outreach that communicates knowledge enrichment and a better degree of education. It establishes that education is the key to global prosperity (Zacharo et al., 2018). Developing the Teachers and Staff Staff development and empowerment is an important aspect in the growth of educational institutions. The majority of the instructors have been retained and should be professionally trained. Creating a professional learning community requires selecting the correct staff development programmes. There will be money in the institutional budget for development, and the institutional leader must properly balance the budget and choose the finest seminars for their instructors. They must also look for extra awards and seminars offered by local colleges (Ndlovu et al., 2018). The environment of educational institutions itself has a role in staff development as well. The workers and instructors must all comprehend the processes put in place by administration at the same level as the transformational leader. The purpose and vision should be considered while developing the systems, and the teachers should be made fully aware of them. To keep teachers informed on institutional achievement, data, statistics, and what they can do to improve themselves as instructors, educational institution leaders must seize every chance they get to communicate with teachers. Every meeting should involve a reevaluation of the teacher's motivation, which will result in the teacher's growth (Milhem et al., 2019). Empowering the Teachers and Staff The manager must be able to provide their personnel the authority to make choices for the educational facility. The precise actions included in this group are focused on creating an environment at work where instructors may maximize their talents, commitments, and motivations. It provides them a sense of entitlement to the institution and a measure of authority when the leader encourages their workers and professors (Mufeed, 2018; Nicdao, 2019). The instructor will feel that because everything is on them, the goal needs to be accomplished correctly and quickly. The instructor will probably exhibit a strong feeling of pride in their goals and a sense of commitment to the initiative. The leader is in charge of making sure that everything is in order and that the goal is progressing as intended. The teacher's goal must align with the school's purpose and vision (Jovanovica and Ciricb, 2016; Kalsoom et al., 2018) Transformational leaders may set South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 123 standards for high-quality pedagogy and encourage teachers' professional development by challenging them to reevaluate their preconceptions about their work and the teaching process. Whether a teacher is fired, moved, or demoted to a position, an institutional leader must make the proper staff modifications. By encouraging organisational stability and bolstering the institution's infrastructure, the specified activities are intended to provide productive working circumstances for instructors. The specific techniques include staffing the teaching programme, offering assistance for the classroom, keeping an eye on institutional activities, and protecting personnel from interruptions during work. A leader wishes to transfer their instructors to a new location where they would face challenges and be inspired to perform well (Lappalainen et al., 2020). Engaging the Students When the leader has complete control of the school, the curriculum is another area that requires special attention. The institutional leader must develop objectives for students to attain in the classroom with the assistance of instructors, staff, and department leaders. This success can be attributed to thinking outside the box and deviating from established teaching practices (Ali et al., 2019). Giving children a more hands-on approach to learning might be advantageous. Leaders of educational institutions urge instructors to be innovative and educate outside of the classroom. It is critical for students' success to be actively involved in the classroom. Many student disturbances have been demonstrated to originate in the classroom and end up in the office with a referral. There are several key factors to developing a learning-friendly school culture (Alatawi, 2017). Ahmad and Rochimah (2021) discussed the process of establishing a professional learning community for educational institutions as a whole, a community centered on student accomplishment. According to Ahmad & Saad (2020), teachers, administrators, and other stakeholders who are committed in the child's education must work together in a collaborative effort and bear responsibility for all kids' learning. Teachers must grasp the significance of building a learning environment at the institution that will engage students in active learning. Creating a student-centered atmosphere is an excellent method for minimizing suspension rates and attaining high-quality classroom management practices. The transformational leader has the ability to utilize the resources for creating conducive learning environment for the students so that they can highly engage in the learning process and can achieve higher academic achievements Discussion In order to guarantee that firms are customer-centered, dynamic and effective leadership must develop a vision and an action plan. It also must foster an atmosphere where employees may be creative and productive. Transformational leadership is becoming more significant and visible at all organisational levels. Since talented teams will boost production for the organisation, leaders should understand how to empower subordinates. Transformational leaders inspire others by satisfying and amplifying the needs of each of their subordinates via personalized appreciation, intellectual simulating, and exploring for new sources of learning. As a result, the effectiveness of the transformational leader depends on determining the appropriateness and congruence between individual and organisational requirements (Tintoré, 2019; Khan et al., 2021). In order to improve quality of life, efficiency, and performance in many situations, transformational leadership entails having an effect on the development and transformation of people, groups, and organisations. Therefore, at the organisational, group, and individual levels of organisational behaviour, leadership is crucial. Transformational leaders place a strong emphasis on key behaviours, such as inspiring their teams to set ambitious objectives and providing them the assurance they require to live up to expectations and reach their full potential. Transformational leaders encourage their subordinates to participate more fully in their job. This involvement leads to higher efficiency and happiness, which leads to better management and organisational performance. A number of organisational outcomes are favorably connected with transformative leadership (Buda and Ling, 2017; Baba, 2022). South Asian Review of Business and Administrative Studies Vol. 4, No. 2, Dec 2022 124 In past investigations, researches established the positive connection between transformational leadership and job success. A shared understanding of the objectives and performance standards of the company is inspired and made possible by transformational leaders (Majeed et al., 2017; Ahmad and Saad, 2020). A transformational leader motivates followers by setting an example, motivating by example, challenging the mind, and taking into account the particular needs and objectives of each follower. As a result, success on a personal, group, and organisational level surpasses expectations (Sihombing, 2020). Transformational leaders are prepared to build groups and provide them with strength, as well as to lead and guide them through the procedures of advancement, notably hierarchical learning. This review study was conducted to find the answer of a question that “how does transformational leadership style improve the organizational performance? the case of educational institutions”. The review of the previous studies indicated that transformational leadership style greatly affect the organizational performance. The transformational leadership style improves the performance of individual teachers and students and build the learning community in an educational institution by establishing vision and creating a conducive learning environment to achieve the predefined goals and objectives of the institute. Conclusion Transformational leadership changes the fundamental ideas and attitudes of an organization's workforce in order to achieve its goals. A stronger organisational performance results from the leaders having transformational leadership style. The current review study indicated that transformational leadership style greatly affect the organizational performance by improving the work capacity of teachers and students by establishing a learning community in an educational institute. References Aguas, P. P., Zapata, L. V., & Arellano, D. L. (2017). Transformational Leadership Plans. World journal of education, 7(4), 1-11. Ahmad, M., & Rochimah, H. (2021). 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