1. 9 - 1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Charismatic and Transformational Leadership Chapter 9 Part Three: Organizational Leadership

2. 9 - 2 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Outcomes 1)Briefly explain Max Weber’s conceptualization of charisma. 2)Explain what is meant by the phrase “locus of charismatic leadership”. 3)Discuss the effects of charismatic leadership on followers. 4)Discuss how one can acquire charismatic qualities. 5)Distinguish between socialized and personalized charismatic leader types. 6)Explain the four stages of the transformation process. 7)List the qualities of effective charismatic and transformational leaders. 8)Describe the four behavior dimensions associated with transformational and charismatic leaders. 9)Distinguish between charismatic and transformational leadership. 10)Explain the basis of stewardship and servant leadership.

3. 9 - 3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Weber’s Conceptualization of Charisma The sociologist Max Weber believed charismatic leaders had a vision that spurred followers to action. Vision is the ability to imagine different and better conditions and the ways to achieve them. Charisma is a social construct between the leader and follower, in which the leader offers a transformative vision or ideal which exceeds the status quo and then convinces followers to accept this course of action not because of its rational likelihood of success, but because of their implicit belief in the extraordinary qualities of the leader.

4. 9 - 4 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. What is the basis of charisma? The situation or social climate facing the leader. The leader’s extraordinary qualities. A combination of the situation and the leader’s qualities. Locus of Charismatic Leadership External locus of charismatic leadership. Internal locus of charismatic leadership. An interaction of the two.

5. 9 - 5 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Effects of Charismatic Leaders on Followers > Develop a strong sense of trust and bonding with the leader. o Mostly due to the leader’s transcendent vision. > Show unconditional acceptance of the leader. > Develop self-confidence and self-efficacy. > Show increased organizational citizenship and empowerment. > Assume greater risk. > Show loyalty and obedience to the leader. > Set/aim for higher goals or ideals. > Align their beliefs, self-concept, cognitions and values with those of the leader. See Exhibit 9.1.

6. 9 - 6 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. How One Acquires Charismatic Qualities Suggested strategies: > Through training and practice, you can improve your communication and interpersonal skills. > While still in college, develop your visionary skills by practicing the act of creating a vision. > You can practice being candid. > Through a leadership development workshop or seminar, you can develop an enthusiastic, optimistic, and energetic personality profile.

7. 9 - 7 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Charisma: A Double Edged Sword Positive or negative charisma lies in the values and motives of the leader. > The socialized charismatic leader (SCL) is one who possesses an egalitarian, self-transcendent, and empowering personality and uses charisma for the benefit of others. > The personalized charismatic leader (PCL) is one who possesses a dominant, self-centered, self- aggrandizing and narcissistic personality and uses charisma for self-glorification.

8. 9 - 8 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Transformational Leadership Transformational leadership seeks to change the status quo by articulating to followers the problems in the current system and a compelling vision of what a new organization could be. Transactional leadership seeks to maintain stability within an organization through regular economic and social exchanges that achieve specific goals for both the leaders and their followers.

9. 9 - 9 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Effects of Transformational Leadership Positive effects on: > organizational performance, culture, and learning. > Follower organizational commitment. > Employee turnover rates, performance and citizenship behavior. Effective transformational leaders shift focus from self-interest to collective interests. Transformational leadership is associated with improved creativity and decision quality.

10. 9 - 10 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Transformational and Transactional Leadership Transformational Leadership Is about changing the status quo. Is vision-oriented. Values change. Is more enduring. Transactional Leadership Is about exchanging valued benefits. Is task & reward-oriented. Values stability. Tends to be transitory.

11. 9 - 11 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Transformation Process Transformational leaders usually enter an organization experiencing a decline or in need of a major change in direction. A four-part transformation process starts with the leader’s ability to: 1)Challenge the status quo and make a convincing case for change, 2)Present an inspiring vision of the future, 3)Provide effective leadership during the transformation, and 4)Institutionalize the change. See Exhibit 9.2.

12. 9 - 12 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Qualities of Effective Charismatic and Transformational Leadership Vision, Superb communication skills, Self-confidence and moral conviction, Ability to inspire trust, High-risk orientation, High energy and action orientation, Relational power base, Achievement orientation, Ability to empower followers, and Self-promoting personality. See Exhibit 9.3 and following explanatory text.

13. 9 - 13 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Transformational and Charismatic Leader Behaviors Both leaders use the following behavior dimensions, known as the “four I’s”. > Idealized influence. o Infuse followers with a sense of idealism. > Inspirational motivation. o Passionately communicate a future vision. > Individual consideration. o They serve as mentors to followers. > Intellectual stimulation. o Inspire followers to solve problems creatively. See Exhibit 9.4.

14. 9 - 14 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Charismatic and Transformational Leadership: What’s the Difference? Personal meaning is the degree to which people’s lives make emotional sense and to which the demands confronted by them are perceived as being worthy of their energy and commitment. Not all transformational leaders are charismatic. Each achieves their labels in different ways. They often have differing mind- sets. Their career paths usually differ. Each perceives their personal meaning differently. They face different degrees of risk from opponents.

15. 9 - 15 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Stewardship and Servant Leadership Some use the term values-based leadership to describe these two leadership types. > Stewardship is an employee-focused form of leadership that empowers followers to make decisions and have control over their jobs. > Servant leadership is leadership that transcends self-interest to serve the needs of others, by helping them grow professionally and personally.

16. 9 - 16 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Attributes of the Effective Steward Leader Strong team orientation. Decentralized decision making and power. Equality – honesty, respect, and mutual trust prevail when there is equality. Reward – must have rewards aligned with performance. See Exhibit 9.5. > Steward leaders coach followers to lead.

17. 9 - 17 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Attributes of the Effective Servant Leader Helping others discover their inner spirit. Earning and keeping others’ trust. Service over self-interest. Effective listening. See Exhibit 9.6. > Servant leadership is centered on a strong service orientation and moral-spiritual grounding.

18. 9 - 18 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Key Terms charisma personalized charismatic leader (PCL) personal meaning servant leadership socialized charismatic leader (SCL) stewardship transformational leadership transactional leadership vision