Existing conceptualizations and measures of transformational and transactional leadership have unclear theoretical bases, confound leadership and its effects, and are not necessarily suitable for public organizations. Overcoming these problems is necessary to test how leadership affects performance. Many public administration scholars apply the concepts, emphasizing the need to ensure that the concepts are applicable in both public and private organizations. The article reconceptualizes transformational and transactional leadership and develops and tests revised measures that can be employed on employees and leaders, are robust in terms of repeated use by the same respondents, and are applicable to public and private organizations alike.

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While performance management is increasingly widespread, we still know little about how performance information generates learning and affects organizational responses. Recent work on performance information and learning in private business organizations, however, suggests that perceived negative performance triggers important strategic responses related to problem identification, search, and change. In turn, how performance is perceived depends on whether performance falls short of aspiration levels that are based on an organization's historical performance and the performance of peer organizations. This article adapts this model to a public sector context and tests one implication of the model, namely that public managers will increase their prioritization of goals that are currently performing below aspirations. This question is central to the study of public organizations pursuing multiple and democratically contested goals. Empirical findings based on administrative performance data and a survey of Danish school principals support this prediction.

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