Transformational and Transformational and Charismatic LeadershipCharismatic Leadership

Chapter 4Chapter 4

““When dealing with people, let us remember When dealing with people, let us remember we are not dealing with creatures of logic. we are not dealing with creatures of logic. We are dealing with creatures of emotion, We are dealing with creatures of emotion, creatures bustling with prejudices and creatures bustling with prejudices and motivated by pride and vanity.”motivated by pride and vanity.”

Dale CarnegieDale Carnegie

Transactional Leadership Transactional Leadership

Transactional Transactional – Traditional leadershipTraditional leadership– Lower level of leadershipLower level of leadership– Assists with organizational stabilityAssists with organizational stability

Transformational LeadershipTransformational Leadership

Transformational LeadershipTransformational Leadership– Change agentChange agent– Inspire change and innovationInspire change and innovation– Potent and ComplexPotent and Complex

Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs

Self ActualizationSelf Actualization

Self EsteemSelf Esteem

Belonging and Love NeedsBelonging and Love Needs

Safety NeedsSafety Needs

Physiological NeedsPhysiological Needs

Dimensions of Transactional Dimensions of Transactional LeadershipLeadership

Transactional Leadership FactorsTransactional Leadership Factors– Contingent reward: Contingent reward:

Provide rewards for effortProvide rewards for effort

Recognize good performanceRecognize good performance

– Management by exception:Management by exception:Maintain status quoMaintain status quo

Intervene when subordinates do not meet Intervene when subordinates do not meet acceptable performance levelsacceptable performance levels

Initiate corrective action to improve performanceInitiate corrective action to improve performance

Dimensions of Transformational Dimensions of Transformational LeadershipLeadership

Charisma:Charisma:– Provide a vision and a sense of missionProvide a vision and a sense of mission– Inspire and build trust and respectInspire and build trust and respect

Individualized consideration:Individualized consideration:– Exhibit considerate and supportive behavior directed toward Exhibit considerate and supportive behavior directed toward

each individual subordinate; coach and adviseeach individual subordinate; coach and advise

Inspiration:Inspiration:– Communicate high expectationsCommunicate high expectations– Use symbols to focus efforts and enhance understanding of Use symbols to focus efforts and enhance understanding of

goalsgoals

Intellectual Stimulation:Intellectual Stimulation:– Promote innovative ways of viewing situationsPromote innovative ways of viewing situations– Stimulate intelligent problem solving and decision makingStimulate intelligent problem solving and decision making

Primary Characteristics of Primary Characteristics of Transformational LeadersTransformational Leaders

CreativeCreative

InteractiveInteractive

VisionaryVisionary

EmpoweringEmpowering

PassionatePassionate

CreativeCreative

Seek out new ideas, products and ways of Seek out new ideas, products and ways of performing tasksperforming tasks

Cannot be content with things remaining Cannot be content with things remaining the samethe same

CreativityCreativity

Capacity to create and manipulate Capacity to create and manipulate symbols (chemical formulas, sentences, symbols (chemical formulas, sentences, drawings)drawings)

Referred to as divergent or lateral thinkingReferred to as divergent or lateral thinking

Refined through vertical thinkingRefined through vertical thinking

Wallas’ Steps to Problem SolvingWallas’ Steps to Problem Solving

PreparationPreparation

IncubationIncubation

IlluminationIllumination

VerificationVerification

Characteristics of the CreativeCharacteristics of the Creative

Hard working and perseveringHard working and persevering

Independent thinkersIndependent thinkers

Comfortable with complexity and Comfortable with complexity and ambiguityambiguity

Adam’s Creative BlocksAdam’s Creative Blocks

Perceptual BlocksPerceptual Blocks

Emotional BlocksEmotional Blocks

Cultural and Environmental BlocksCultural and Environmental Blocks

Intellectual and Expressive BlocksIntellectual and Expressive Blocks

InteractiveInteractive

Great CommunicatorsGreat Communicators– JFKJFK– Ronald ReaganRonald Reagan

Involvement with followersInvolvement with followers– Management by Wandering AroundManagement by Wandering Around– Regular MeetingsRegular Meetings

VisionaryVisionary

Communicating the VisionCommunicating the Vision

Nanus’ Characteristics of Effective VisionsNanus’ Characteristics of Effective Visions– Attracts commitment and energizes peopleAttracts commitment and energizes people– Creates meaning for followersCreates meaning for followers– Establishes a standard of excellenceEstablishes a standard of excellence– Bridges the present and the futureBridges the present and the future

Vision StatementsVision Statements

Transformational leader’s behaviorTransformational leader’s behavior

Vision statement vs mission statementVision statement vs mission statement

Specific yet provide guidanceSpecific yet provide guidance

Guides actions of membersGuides actions of members

EmpoweringEmpowering

Need capable followersNeed capable followers

Delegating decision makingDelegating decision making

Increasing individual autonomyIncreasing individual autonomy

5 Key Dimensions of Trust5 Key Dimensions of Trust

CompetenceCompetence

Openness and HonestyOpenness and Honesty

Concern for EmployeesConcern for Employees

ReliabilityReliability

IdentificationIdentification

PassionatePassionate

Committed to workCommitted to work

Chang says most important competitive Chang says most important competitive advantageadvantage

Charismatic LeadershipCharismatic Leadership

Perspectives on Charismatic LeadershipPerspectives on Charismatic Leadership– Sociological ApproachSociological Approach– Psychoanalytical ApproachPsychoanalytical Approach– Political ApproachPolitical Approach– Behavioral ApproachBehavioral Approach– Attribution ApproachAttribution Approach– Communication ApproachCommunication Approach

Sociological ApproachSociological Approach

Max WeberMax WeberCharisma in Greek means “gift”Charisma in Greek means “gift”Five key componentsFive key components– A leader with extraordinary vision, almost magical, A leader with extraordinary vision, almost magical,

talentstalents– An unstable or crisis situationAn unstable or crisis situation– A radical vision for providing a solution to the crisisA radical vision for providing a solution to the crisis– A group of followers attracted to the extraordinary A group of followers attracted to the extraordinary

leader because they believe they are linked through leader because they believe they are linked through the leader to powers that exceed usual limits.the leader to powers that exceed usual limits.

– A validation, through repeated success, of the A validation, through repeated success, of the extraordinary leader’s talents and power. extraordinary leader’s talents and power.

Psychoanalytic ApproachPsychoanalytic Approach

ZaleznikZaleznik– Managers different from leadersManagers different from leaders– Leaders bring about change, take risks and Leaders bring about change, take risks and

arouse emotionsarouse emotions

FreudFreud– Intense follower identification is explained by:Intense follower identification is explained by:

RegressionRegression

TransferenceTransference

ProjectionProjection

Political ApproachPolitical Approach

Not always in agreement on who is Not always in agreement on who is charismaticcharismatic

Schweitzer says there are different types:Schweitzer says there are different types:– GiantsGiants– LuminariesLuminaries– FailuresFailures– AspirantsAspirants

Political ApproachPolitical Approach

Willner looks at charisma on the basis of Willner looks at charisma on the basis of the leader-follower relationship:the leader-follower relationship:– Attribute divine or semi-divine qualities to their Attribute divine or semi-divine qualities to their

leadersleaders– Believe that their leaders have supernatural Believe that their leaders have supernatural

abilitiesabilities– Offer absolute devotion and obedienceOffer absolute devotion and obedience– Are loyalAre loyal

Behavioral ApproachBehavioral Approach

Use a set of behaviors to define itUse a set of behaviors to define it

Compare those that are charismatic with Compare those that are charismatic with those who are notthose who are not

House and Bass’ Propositions:House and Bass’ Propositions:– Leader BehaviorsLeader Behaviors– Leader-Follower relationsLeader-Follower relations– Elements of the charismatic situationElements of the charismatic situation

Attribution ApproachAttribution Approach

Conger and Kanungo look at charisma Conger and Kanungo look at charisma from the perceptions of the followers:from the perceptions of the followers:– Possess a vision that is unique, yet attainablePossess a vision that is unique, yet attainable– Act in an unconventional mannerAct in an unconventional manner– Demonstrate personal commitment and risk Demonstrate personal commitment and risk

takingtaking– Demonstrate confidence and expertiseDemonstrate confidence and expertise– Demonstrate personal powerDemonstrate personal power

Communication ApproachCommunication Approach

Authors say communication is the most Authors say communication is the most important elementimportant element

Charismatic Leaders excel in all three Charismatic Leaders excel in all three functions of communicationfunctions of communication– Relationship buildersRelationship builders– As VisionariesAs Visionaries– As Influence AgentsAs Influence Agents

Dark Side of CharismaDark Side of Charisma

Ethical Charismatic Ethical Charismatic LeaderLeader– Uses power to serve othersUses power to serve others– Aligns vision with followers’ Aligns vision with followers’

needs and aspirationsneeds and aspirations– Considers and learns from Considers and learns from

criticism.criticism.– Encourages followers to Encourages followers to

question leader’s viewquestion leader’s view– Coaches, develops and Coaches, develops and

supports followers supports followers – Relies on internal moral Relies on internal moral

standardsstandards

Unethical Charismatic Unethical Charismatic LeaderLeader– Uses power only for Uses power only for

personal gainpersonal gain– Promotes personal visionPromotes personal vision– Censures critical or Censures critical or

opposing viewsopposing views– Demands own decisions Demands own decisions

accepted without questionaccepted without question– Insensitive to follower’s Insensitive to follower’s

needsneeds– Relies on convenient Relies on convenient

external moral standardsexternal moral standards

Significant Abuses Contributing to Significant Abuses Contributing to Leadership FailureLeadership Failure

Failure of visionFailure of vision

Misarticulation of goalsMisarticulation of goals

Poor management practicesPoor management practices