Leadership: Understanding its Global Impact Chapter 6: Charismatic and transformational leadership

Learning objectives Define charismatic leadership Understand the difference between transformational and transactional leadership Discuss the impact of ‘charismatic’ style leadership behaviour Describe breakthrough leadership 2

Chapter contents Spotlight: Natasha Stott Despoja Introduction Charisma and charismatic leadership Leader in action: President Obama Transactional leadership Transformational leadership Breakthrough leadership Summary Case study: Dick Smith 3

Spotlight: Natasha Stott Despoja Touches on many aspects of charismatic and transformational leadership Leadership is possible at a very early age Trying to change the status quo can come at a high price 4

Charisma has long been associated with leadership Charismatic and transformational leadership models move beyond simply considering personality Introduction 5

A special quality of leaders whose purpose, powers and extraordinary determination differentiate them from others (Conger & Kanungo 1988) Charisma and charismatic leadership 6

One who revels ‘a transcendent mission or course of action that may not be in itself appealing to the potential followers, but which is acted on because the followers believe their leader is extraordinarily gifted’ (Weber 1947) The charismatic leader and his/her followers are mutually dependent (Kellerman 2009) Charisma and charismatic leadership (cont.) 7

Charismatic leaders … value and pursue an interrelated set of images: they are perceived as trustworthy, credible, morally worthy, innovative, esteemed, and powerful (Gardner & Avolio 1998) Followers must have a strong desire to identify with the leader Nine charismatic effects (House 1977); Jane A Halpert clustered these outcomes into: referent power, expert power & job involvement. The locus of charismatic leadership 8

He remains composed. He radiates assurance. He stays on message and communicates with astounding verbal fluency. He appears to be a genuinely charismatic leader. Will he also turn out to be a transformational one? … they said this day would never come. They said that this country was too divided, too disillusioned to ever come together around a common purpose. But on this January night—at this defining moment in history—you have done what the cynics said we couldn’t do. Leader in action: Obama 9

Burns 1978 Leaders and followers in an exchange relationship Very common; tends to be transitory Ethical element Transactional leadership 10

Burns 1978 Power wielders v. leaders Serve to change the status quo by: –Appealing to followers’ values –Reframing issues –Operating at a higher level of moral development than followers Transformational leadership 11

Bass 1990 Transformational leaders are: –Charismatic –Practice inspirational leadership –Provide intellectual stimulation –Demonstrate individualised consideration Qualities for bringing about transformation 12

Dubrin, Dalglish & Miller 2006 –raises people’s awareness –helps people look beyond self-interest –helps people search for self-fulfilment –helps people understand need for change –invests managers with a sense of urgency –is committed to greatness –adopts a long range, broad perspective Role of leader in transformation 13

Special relationship does not happen by accident Does not develop overnight Prevalent in countries possessing collectivist societies (Jung et al 1995) Rosener men described themselves in transactional terms; women described themselves in transformational terms Issues in transformational and charismatic leadership 14

Sarros & Butchatsky 1996 Four specific leader behaviours: –Respect for others –Values clarification –Willingness to look, listen and learn –A systems approach Breakthrough leaders create a climate within their organisations that encourages individual and group learning Breakthrough leadership 15

Breakthrough leadership sits within a body of writing about Australian leadership There are significant differences between Australian and American perceptions of leadership (Parry & Sarros 1996) Australian leaders are expected to inspire high levels of performance but must do so in a culturally appropriate way (Ashkanasy & Falkus 1997) Differences between Aust. & US perceptions of leadership 16

What creates charisma? Jane A. Halpert clustered House’s research into three dimensions Burns coined the terms transactional and transformational leadership Bass identified behaviours that cause leaders to be seen as transformational Breakthrough leadership can be seen as Australia’s transformational model Summary 17

What do you think has contributed to Dick Smith’s business success? Identify the attributes that contribute to Dick Smith’s charisma. Is Dick Smith a transformational leader? Explain your answer. Case study: Dick Smith 18