Transformational and Charismatic Leadership Chapter 4

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

Transactional Leadership Transactional –Traditional leadership –Lower level of leadership –Assists with organizational stability

Transformational Leadership –Change agent –Inspire change and innovation –Potent and Complex

Maslow’s Hierarchy of Needs Self Actualization Self Esteem Belonging and Love Needs Safety Needs Physiological Needs

Dimensions of Transactional Leadership Transactional Leadership Factors –Contingent reward: Provide rewards for effort Provide rewards for effort Recognize good performance –Management by exception: Maintain status quo Intervene when subordinates do not meet acceptable performance levels Initiate corrective action to improve performance

Dimensions of Transformational Leadership Charisma: –Provide a vision and a sense of mission –Inspire and build trust and respect Individualized consideration: –Exhibit considerate and supportive behavior directed toward each individual subordinate; coach and advise Inspiration: –Communicate high expectations –Use symbols to focus efforts and enhance understanding of goals Intellectual Stimulation: –Promote innovative ways of viewing situations –Stimulate intelligent problem solving and decision making

Primary Characteristics of Transformational Leaders CreativeInteractiveVisionaryEmpoweringPassionate

Creative Seek out new ideas, products and ways of performing tasks Cannot be content with things remaining the same

Creativity Capacity to create and manipulate symbols (chemical formulas, sentences, drawings) Referred to as divergent or lateral thinking Refined through vertical thinking

Wallas’ Steps to Problem Solving PreparationIncubationIlluminationVerification

Characteristics of the Creative Hard working and persevering Independent thinkers Comfortable with complexity and ambiguity

Adam’s Creative Blocks Perceptual Blocks Emotional Blocks Cultural and Environmental Blocks Intellectual and Expressive Blocks

Interactive Great Communicators –JFK –Ronald Reagan Involvement with followers –Management by Wandering Around –Regular Meetings

Visionary Communicating the Vision Nanus’ Characteristics of Effective Visions –Attracts commitment and energizes people –Creates meaning for followers –Establishes a standard of excellence –Bridges the present and the future

Vision Statements Transformational leader’s behavior Vision statement vs mission statement Specific yet provide guidance Guides actions of members

Empowering Need capable followers Delegating decision making Increasing individual autonomy

5 Key Dimensions of Trust Competence Openness and Honesty Concern for Employees ReliabilityIdentification

Passionate Committed to work Chang says most important competitive advantage

Charismatic Leadership Perspectives on Charismatic Leadership –Sociological Approach –Psychoanalytical Approach –Political Approach –Behavioral Approach –Attribution Approach –Communication Approach

Sociological Approach Max Weber Charisma in Greek means “gift” Five key components –A leader with extraordinary vision, almost magical, talents –An unstable or crisis situation –A radical vision for providing a solution to the crisis –A group of followers attracted to the extraordinary leader because they believe they are linked through the leader to powers that exceed usual limits. –A validation, through repeated success, of the extraordinary leader’s talents and power.

Psychoanalytic Approach Zaleznik –Managers different from leaders –Leaders bring about change, take risks and arouse emotions Freud –Intense follower identification is explained by: RegressionTransferenceProjection

Political Approach Not always in agreement on who is charismatic Schweitzer says there are different types: –Giants –Luminaries –Failures –Aspirants

Political Approach Willner looks at charisma on the basis of the leader-follower relationship: –Attribute divine or semi-divine qualities to their leaders –Believe that their leaders have supernatural abilities –Offer absolute devotion and obedience –Are loyal

Behavioral Approach Use a set of behaviors to define it Compare those that are charismatic with those who are not House and Bass’ Propositions: –Leader Behaviors –Leader-Follower relations –Elements of the charismatic situation

Attribution Approach Conger and Kanungo look at charisma from the perceptions of the followers: –Possess a vision that is unique, yet attainable –Act in an unconventional manner –Demonstrate personal commitment and risk taking –Demonstrate confidence and expertise –Demonstrate personal power

Communication Approach Authors say communication is the most important element Charismatic Leaders excel in all three functions of communication –Relationship builders –As Visionaries –As Influence Agents

Dark Side of Charisma Ethical Charismatic Leader –Uses power to serve others –Aligns vision with followers’ needs and aspirations –Considers and learns from criticism. –Encourages followers to question leader’s view –Coaches, develops and supports followers –Relies on internal moral standards Unethical Charismatic Leader –Uses power only for personal gain –Promotes personal vision –Censures critical or opposing views –Demands own decisions accepted without question –Insensitive to follower’s needs –Relies on convenient external moral standards

Significant Abuses Contributing to Leadership Failure Failure of vision Misarticulation of goals Poor management practices