In recent years, the hospitality industry has undergone major changes both
within the industry and in its operating environment. Researchers have posited that
in an environment of change, as described above, a visionary, or leadership style,
would be most appropriate. The study, reported here, compared the use of
transformational leadership style with the more traditional transactional style, and
examined the effects of transformationalleadership on individual and organizational
outcomes in a hotel management organization. Results suggest that transforma
tional leadership both impacts perceptions of leadership effectiveness and subordi
nate satisfaction, and clarifies the direction and mission of the organization.
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