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Transformational and Charismatic Leadership

Chapter 4

When dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion, creatures bustling with prejudices and motivated by pride and vanity. Dale Carnegie

Transactional Leadership
Transactional
Traditional leadership Lower level of leadership Assists with organizational stability

Transformational Leadership
Transformational Leadership
Change agent Inspire change and innovation Potent and Complex

Maslows Hierarchy of Needs


Self Actualization Self Esteem

Belonging and Love Needs


Safety Needs Physiological Needs

Dimensions of Transactional Leadership


Transactional Leadership Factors
Contingent reward:
Provide rewards for effort Recognize good performance

Management by exception:
Maintain status quo Intervene when subordinates do not meet acceptable performance levels Initiate corrective action to improve performance

Dimensions of Transformational Leadership


Charisma:
Provide a vision and a sense of mission Inspire and build trust and respect

Individualized consideration:
Exhibit considerate and supportive behavior directed toward each individual subordinate; coach and advise

Inspiration:
Communicate high expectations Use symbols to focus efforts and enhance understanding of goals

Intellectual Stimulation:
Promote innovative ways of viewing situations Stimulate intelligent problem solving and decision making

Primary Characteristics of Transformational Leaders


Creative Interactive Visionary Empowering Passionate

Creative
Seek out new ideas, products and ways of performing tasks Cannot be content with things remaining the same

Creativity
Capacity to create and manipulate symbols (chemical formulas, sentences, drawings) Referred to as divergent or lateral thinking Refined through vertical thinking

Wallas Steps to Problem Solving


Preparation Incubation Illumination Verification

Characteristics of the Creative


Hard working and persevering Independent thinkers Comfortable with complexity and ambiguity

Adams Creative Blocks


Perceptual Blocks Emotional Blocks Cultural and Environmental Blocks Intellectual and Expressive Blocks

Interactive
Great Communicators
JFK Ronald Reagan

Involvement with followers


Management by Wandering Around Regular Meetings

Visionary
Communicating the Vision Nanus Characteristics of Effective Visions
Attracts commitment and energizes people Creates meaning for followers Establishes a standard of excellence Bridges the present and the future

Vision Statements
Transformational leaders behavior Vision statement vs mission statement Specific yet provide guidance Guides actions of members

Empowering
Need capable followers Delegating decision making Increasing individual autonomy

5 Key Dimensions of Trust


Competence Openness and Honesty Concern for Employees Reliability Identification

Passionate
Committed to work Chang says most important competitive advantage

Charismatic Leadership
Perspectives on Charismatic Leadership
Sociological Approach Psychoanalytical Approach Political Approach Behavioral Approach Attribution Approach Communication Approach

Sociological Approach
Max Weber Charisma in Greek means gift Five key components
A leader with extraordinary vision, almost magical, talents An unstable or crisis situation A radical vision for providing a solution to the crisis A group of followers attracted to the extraordinary leader because they believe they are linked through the leader to powers that exceed usual limits. A validation, through repeated success, of the extraordinary leaders talents and power.

Psychoanalytic Approach
Zaleznik
Managers different from leaders Leaders bring about change, take risks and arouse emotions

Freud
Intense follower identification is explained by:
Regression Transference Projection

Political Approach
Not always in agreement on who is charismatic Schweitzer says there are different types:
Giants Luminaries Failures Aspirants

Political Approach
Willner looks at charisma on the basis of the leader-follower relationship:
Attribute divine or semi-divine qualities to their leaders Believe that their leaders have supernatural abilities Offer absolute devotion and obedience Are loyal

Behavioral Approach
Use a set of behaviors to define it Compare those that are charismatic with those who are not House and Bass Propositions:
Leader Behaviors Leader-Follower relations Elements of the charismatic situation

Attribution Approach
Conger and Kanungo look at charisma from the perceptions of the followers:
Possess a vision that is unique, yet attainable Act in an unconventional manner Demonstrate personal commitment and risk taking Demonstrate confidence and expertise Demonstrate personal power

Communication Approach
Authors say communication is the most important element Charismatic Leaders excel in all three functions of communication
Relationship builders As Visionaries As Influence Agents

Dark Side of Charisma


Ethical Charismatic Leader
Uses power to serve others Aligns vision with followers needs and aspirations Considers and learns from criticism. Encourages followers to question leaders view Coaches, develops and supports followers Relies on internal moral standards

Unethical Charismatic Leader


Uses power only for personal gain Promotes personal vision Censures critical or opposing views Demands own decisions accepted without question Insensitive to followers needs Relies on convenient external moral standards

Significant Abuses Contributing to Leadership Failure


Failure of vision Misarticulation of goals Poor management practices

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