Theoretical Perspectives: Transformational & Transactional Leadership OUTLINE: I. A theory of transformational leadership II. The four "I" model III. Film analysis

Where are we now? Trait approach Trait approach Behavioral/situational approach Behavioral/situational approach Contingency approaches Contingency approaches Leader and follower relationship approach Leader and follower relationship approach …..now onto transformational leadership…

Leadership Leadership

Transformational Leadership Emphasis on understanding exceptional leaders Emphasis on understanding exceptional leaders Understand why visionary leaders are able to change their organizations Understand why visionary leaders are able to change their organizations

Transformational Leaders Abraham Lincoln & Martin Luther King, Jr. Abraham Lincoln & Martin Luther King, Jr. Each of whom led the US in the debate and fight for an end to racism and slavery. Each of whom led the US in the debate and fight for an end to racism and slavery. Lee Iacocca Lee Iacocca Led Chrysler out of debt and back to a viable company. Led Chrysler out of debt and back to a viable company. FDR FDR Stirred the nation out of the Great Depression; Stirred the nation out of the Great Depression; "We have nothing to fear but fear itself." "We have nothing to fear but fear itself."

Bass' Theory of Transformational Leadership Leaders transform followers from focus on self-interest to focus on collective interest Leaders transform followers from focus on self-interest to focus on collective interest Creation of high commitment to the leader's mission by followers Creation of high commitment to the leader's mission by followers Understand the behaviors and psychological processes of leaders that produce performance beyond expectations by followers Understand the behaviors and psychological processes of leaders that produce performance beyond expectations by followers

Transactional Leadership Two behavioral components Two behavioral components 1. Contingent reward 1. Contingent reward 2. Management-by-exception 2. Management-by-exception

Transformational Leadership Four behavioral components (Bass): Four behavioral components (Bass): 1. Idealized influence/ Charisma 1. Idealized influence/ Charisma 2. Inspiration 2. Inspiration 3. Intellectual stimulation 3. Intellectual stimulation 4. Individualized consideration 4. Individualized consideration

Leadership Factors Transformational TransactionalLaissez-faire Leadership LeadershipLeadership Idealized influence Idealized influence Inspirational motivation Inspirational motivation Intellectual stimulation Intellectual stimulation Individualized consideration Individualized consideration Contingent reward Management- by-exception Laissez-faire Laissez-faire

Transformational Leadership and Performance Many favorable effects found! Many favorable effects found! Performance Performance Qualitative vs quantitative performance Qualitative vs quantitative performance Satisfaction Satisfaction Cohesiveness Cohesiveness