Transactional Transformational & Charismatic Leadership

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Inspirational Approaches to Leadership Traditional approaches ignore the importance of the leader as a communicator. Framing is a way of communicating to shape meaning. Its a way for leaders to influence how others understand and see events. Framing is an important aspect of leadership as it is the ability of leader to inspire others to act beyond their self interests.

Charismatic Leadership Charismatic leadership was first discussed by Max Weber. The word charismatic is derived from a Greek word charisma which means a gift. Charismatic means a certain quality of an individual personality, by virtue of which he or she is set apart from ordinary people and treated as exceptional powers or qualities. According to Robert House the theory followers make attributions of extraordinary leadership abilities when they observe certain behaviors.

ContThe characteristics of a charismatic leader are as follows : 1. They have a vision. 2. They are willing to take personal risks to achieve that vision. 3. They are sensitive to follower needs. 4. They exhibit behaviors that are out of the ordinary.

TransformationalleadershipJames MacGregor Burns (1978) : first introduced the concept of transforming leadership in his descriptive research on political leaders, but this term is now used in organizational psychology as well.

DefinitionTransforming leadership is a process in which "leaders and followers help each other to advance to a higher level of morale and motivation. James MacGregor Burns

According to Burns, the transforming approach creates significant change in the life of people and organizations. It redesigns perceptions and values, and changes expectations and aspirations of employees. Unlike in the transactional approach, it is not based on a "give and take" relationship, but on the leader's personality, traits and ability to make a change through example, articulation of an energizing vision and challenging goals.

The four Is Idealized Influence (charisma): - Follower admiration & respect. - Risk sharing. - Consideration for follower needs. - Ethical & moral conduct (trust). Inspirational motivation: - Meaning & challenge to work Intellectual stimulation: - Creative problem solving. Individualized consideration: - Listening, praising.

Some tips for transformational leadership Develop a challenging and attractive vision, together with the employees. Tie the vision to a strategy for its achievement. Develop the vision, specify and translate it to actions. Express confidence, decisiveness and optimism about the vision and its implementation. Realize the vision through small planned steps and small successes in the path for its full implementation.

Transactional Leadership First described by Max Weber in 1947 Focuses on Basic management process of Controlling, organizing and Short-term Planning Most often used by managers Motivates and directs followers through appealing to their own self-interest Power of transactional leader comes from authority and responsibility given to them Main goal of follower is to obey the instructions of leader

Dimensions of Transactional Theory Contingent rewards SMART Goals Active Management by exceptions Passive Management by exceptions Laissez - faire

Assumptions of Transactional Theory Employees are motivated by reward & punishment Subordinates are not Self-motivated. Closely monitored and controlled to get work done Subordinate have to obey the orders of the superior

Implication of Theory Where no creativity or new ideas are required from followers Where goal is clearly defined

Difference b/w Transactional Leadership and Transformational Leadership