2. 1 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transformational Leadership Approach Leadership Theory and Practice, 3/e Peter G. Northouse, Ph.D.

3. 2 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transformational Leadership (TL) Approach Perspective A Model of Transformational Leadership Transformational Leadership Factors Full Range of Leadership Model The Additive Effects of TL Other Transformational Leadership Perspectives How Does the Transformational Approach Work? OverviewOverview

4. 3 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transformational Leadership Approach Description Influence - TL centers on an exceptional form of influence that moves followers to accomplish beyond expectationsInfluence - TL centers on an exceptional form of influence that moves followers to accomplish beyond expectations Process - TL is a process that frequently incorporates charismatic and visionary leadershipProcess - TL is a process that frequently incorporates charismatic and visionary leadership Core elements - TL is concerned with emotions, values, ethics, standards, and long-term goals; treats followers as complete human beings, including assessing their motives and satisfying their needsCore elements - TL is concerned with emotions, values, ethics, standards, and long-term goals; treats followers as complete human beings, including assessing their motives and satisfying their needs PerspectivePerspective

5. 4 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Types of Leadership Defined Burns (1978) TRANSACTIONAL Focuses on the exchanges that occur between leaders and their followers TRANSFORMATIONAL Process of engaging with others to create a connection that increases motivation and morality

6. 5 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transformational Leadership and Charisma Charisma - A special personality characteristic that gives superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader DefinitionDefinition Characteristics of a Charismatic Leader PERSONALITY DominantDominant Desire to influenceDesire to influence ConfidentConfident Strong moral valuesStrong moral values BEHAVIORS Sets Strong Role ModelSets Strong Role Model Shows CompetenceShows Competence Articulates GoalsArticulates Goals Communicates High ExpectationsCommunicates High Expectations Expresses ConfidenceExpresses Confidence Arouses MotivesArouses Motives

7. 6 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Model of Transformational Leadership Bass (1985) TL motivates followers beyond the expected by: ¶raising consciousness about the value and importance of specific and idealized goals ·transcending self-interest for the good of the organization ¸addressing higher-level needs TransformationalLeadershipTransactionalLeadershipLaissez-FaireLeadership

8. 7 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transformational Leadership Factors Transformational Factor 1 Idealized Influence Charisma Factor 2 InspirationalMotivational Factor 3 IntellectualStimulation Factor 4 IndividualizedConsideration Transactional Factor 5 Contingent Reward ConstructiveTransactions Factor 6 Mgmt. by Exception Active & Passive Corrective Transactions Lassiez-Faire Factor 7 Laissez-FaireNontransactional Leaders who exhibit TL: ¶ have a strong set of values & ideals · are effective in motivating followers to support greater good over self-interest greater good over self-interest

9. 8 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transformational Leadership Factors The 4 “I”s IndividualizedInfluence Describes leaders who act as strong role models for followers InspirationalMotivation Leaders who communicate high expectations to followers, inspiring them through motivation to commitment and engagement in the shared vision of the organization IntellectualStimulation Stimulates followers to be creative and innovative; challenges their own beliefs and values and those of leader and organization IndividualizedConsideration Leaders who provide a supportive climate in which they listen carefully to the needs of followers

10. 9 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transactional Leadership Factors The exchange process between leaders and followers in which effort by followers is exchanged for specified rewards Leadership that involves corrective criticism, negative feedback, and negative reinforcement Two forms Two forms Active - Watches follower closely to identify mistakes/rule violations Active - Watches follower closely to identify mistakes/rule violations Passive - Intervenes only after standards have not been met or Passive - Intervenes only after standards have not been met or problems have arisen problems have arisen ContingentReward Management by Exception

11. 10 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Nonleadership Factor The absence of leadership. A hands-off, let-things-ride approach. Refers to a leader who abdicates responsibility, delays decisions, gives no feedback, and makes little effort to help followers satisfy their needs. Laissez-Faire

12. 11 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Full Range of Leadership Model Source: Bass & Avolio (1994) 4 “I”s CR MBE- A MBE- P LFLFEffectiveIneffective Frequency Active Passive LegendNonleadership LF Laissez-Faire Transactional MBE-P Mgmt by Exception Passive MBE-A Mgmt by Exception Active CR Contingent Reward Transformational 4 “I”s Idealized Influence Inspirational Motivation Intellectual Stimulation Individualized Consideration

13. 12 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Additive Effect of TL IndividualizedInfluence + InspirationalMotivation + IntellectualStimulation + IndividualizedConsideration Transformational Leadership Contingent Reward + Management by Exception ExpectedOutcomes PerformanceBeyondExpectations Transactional Leadership Source: Bass & Avolio (1990)

14. 13 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Other Transformational Perspectives Four Leader Strategies in Transforming Organizations Transforming Organizations ¶Clear vision of organization’s future state ·TL’s social architect of organization ¸Create trust by making their position known and standing by it ¹Creatively deploy themselves through positive self-regard Bennis & Nanus (1985) Leaders Manage Change via 3-Act Process ¶ ¶Recognizing the need for change · ·Creating a vision ¸ ¸Institutionalizing the change Tichy & DeVanna (1990)

15. 14 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications How Does the Transformational Leadership Approach Work? Focus of TL Approach Strengths Criticisms Application

16. 15 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications Transformational Leadership Approach TLs empower and nurture followersTLs empower and nurture followers TLs stimulate change by becoming strong role models for followersTLs stimulate change by becoming strong role models for followers TLs commonly create a visionTLs commonly create a vision TLs act as change agentsTLs act as change agents TLs are social architectsTLs are social architects Describes how leaders can initiate, develop, and carry out significant changes in organizationsDescribes how leaders can initiate, develop, and carry out significant changes in organizations Focus of Transformational Leaders Overall Scope

17. 16 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications StrengthsStrengths Broadly researched. TL has been widely researched, including a large body of qualitative research centering on prominent leaders and CEOs in major firms.Broadly researched. TL has been widely researched, including a large body of qualitative research centering on prominent leaders and CEOs in major firms. Intuitive appeal. People are attracted to TL because it makes sense to them.Intuitive appeal. People are attracted to TL because it makes sense to them. Process-focused. TL treats leadership as a process occurring between followers and leaders.Process-focused. TL treats leadership as a process occurring between followers and leaders. Expansive leadership view. TL provides a broader view of leadership that augments other leadership models.Expansive leadership view. TL provides a broader view of leadership that augments other leadership models. Emphasizes follower. TL emphasizes followers’ needs, values, and morals.Emphasizes follower. TL emphasizes followers’ needs, values, and morals. Effectiveness. Evidence supports that TL is an effective form of leadership.Effectiveness. Evidence supports that TL is an effective form of leadership.

18. 17 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications CriticismsCriticisms conceptualLacks conceptual clarity –Dimensions are not clearly delimited –Parameters of TL overlap with similar conceptualizations of leadership MeasurementMeasurement questioned –Validity of MLQ not fully established –Some transformational factors are not unique solely to the transformational model behaviorTL treats leadership more as a personality trait or predisposition than a behavior that can be taught elitist antidemocraticTL is elitist and antidemocratic heroic leadershipSuffers from heroic leadership bias qualitativeTL is based primarily on qualitative data abusedHas the potential to be abused

19. 18 Chapter 9 - Transformational Leadership Approach © 2003 Jan Krieger SAGE Publications ApplicationApplication Provides a general way of thinking about leadership that stresses ideals, inspiration, innovations, and individual concerns Can be taught to individuals at all levels of the organization Able to positively impact a firm’s performance May be used as a tool in recruitment, selection, promotion, and training development Can be used to improve team development, decision-making groups, quality initiatives, and reorganizations The MLQ helps leaders to target areas of leadership improvement