Transactional, Transformational, and Charismatic Leadership Conger & Kanungo (1987) Kuhnert & Lewis (1987) Judge & Piccolo (2004)

Agenda – 7/6/05  Questions, Comments, and Concerns?  Organization and Societal Leadership Transactional Leadership Transformational Leadership Charismatic Leadership  Break  TRP 8  Concluding Remarks

Questions, Comments, or Concerns? When Can Leaders Be Effectively Substituted?

Contact Information Foster College of Business Bradley University

Turn in SAP 8 Please Pass to the Aisle and then Pass Forward Thanks

Organizational and Societal Theories of Leadership  Seek Broad Explanation of Leader and Follower Behavior Inclusive of Leader and Follower Characteristics Inclusive of Situational and Organizational Constraints  Best of the Old and New “Great Man” Plus Organizational Influences

Transactional Leadership  Originally Included in Transformational Leadership (Bass, 1985)  Back to Behavior Modification and Skinner  Transactional Leader Behaviors: Contingent Reward Behavior Management by Exception Active Management by Exception Laissez-Faire  Combined Positive Empirical Support, Especially Contingent Reward

Transformational Leadership  Bass (1985)  Defined by Leader’s Effect on Followers: Trust, Admiration, Loyalty, Respect, and Motivation  Leader Transforms Followers: Awareness of Importance of Outcomes Transcend Self- Interests Activate Higher Order Needs  Leader Behaviors: Idealized Influence (Charisma) Individualized Consideration Inspirational Motivation Intellectual Stimulation  Charisma is Necessary but not Sufficient  Bound by Organizational Culture  Moderate Empirical Support

Shaping Culture through Transformational Leadership LLeaders Act as “Change Agents” to Develop Organizational Culture PPrimary Mechanisms Focus Attention React to Crisis Act as Role Model Allocate Resources Establish Hire/Fire Criteria SSecondary Mechanisms Design Systems and Policies Design Organizational Structure Design Facilities Stories, Legends, and Myths Formal Statements TThe “Founding Father Effect”

Charismatic Leadership  Charisma = Divinely Inspired Gift  Unclear Interaction between Leader Attributes, Follower Perceptions, and Situational Constraints  Pro-Social or Pro-Self Charismatic Leaders Desire to Serve Self-Interests over the Establishment of Achievement Oriented Cultures

Charismatic Leader Influence LLeader Characteristics High nPow and Self Esteem Strong Positive Impression Management Articulate Ideological Vision Role Models Communicate High Expectations Arouse Motivation FFollower Attributions Non Status Quo Vision Unconventional Methods Self-Sacrificing Confident and Assured Rational Persuasion and Inspirational Appeals FFlash in the Pan Charismatic Leaders are Change Agents at Pivotal Moments

Break 20 Minute Break

TRP 8

Concluding Remarks WWhat Does it Take to Be a Leader? DDoes Leadership Matter? DDo Organizations Want or Need Leaders? WWhat Kinds of Leaders Are Needed?