The theoretical foundations of transformational leadership are rooted in James MacGregor Burns’ (1978) seminal distinction between transactional and transformational leadership. Burns conceptualized leadership as a moral and elevating process in which both leaders and followers advance to higher levels of motivation, performance, and ethical development. Transactional leadership, grounded in behavioral exchange theory, focuses on contingent reinforcement, rewarding compliance, and ensuring adherence to organizational rules and performance expectations.