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transformational leadership

transformational leadership

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Published by kashif salman

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Published by: kashif salman on Jul 08, 2009
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05/11/2013

T R A N S F O R M A T IO N A L L E A D E R S H IP
A N D O R G A N IZ A T IO N A L C U L T U R E
BERNARD M . BASS
B R U C E J . A V O L IO
S U N Y - B in g h a m to n
IN T R O D U C T IO N
T h e o rg a n iz a tio n 's c u ltu re d e v e lo p s in la rg e p a rt fro m

its le a d e r- ship w hile the culture of an organization can also affect the devel- o p m e n t o f its le a d e rs h ip . F o r e x a m p le , tra n s a c tio n a l le a d e rs w o rk w ith in th e ir o rg a n iz a tio n a l c u ltu re s fo llo w in g e x is tin g r u le s , p r o c e - d u re s , a n d n o rm s ; tra n s fo rm a tio n a l le a d e rs c h a n g e th e ir c u ltu re b y f ir s t u n d e rs ta n d in g it a n d th e n re a lig n in g th e o rg a n iz a tio n 's c u ltu re w ith a n e w v is io n a n d a re v is io n o f its s h a r e d a s s u m p tio n s , v a lu e s , and norm s (Bass, 1985).

E ffe c tiv e o rg a n iz a tio n s re q u ire b o th ta c tic a l a n d s tra te g ic th in k - in g a s w e ll a s c u ltu re b u ild in g b y its le a d e r s . S tra te g ic th in k in g h e lp s to create and build the vision of an agency's future. The vision can e m e rg e a n d m o v e fo rw a rd a s th e le a d e r c o n s tru c ts a c u ltu re th a t is d e d ic a te d to s u p p o rtin g th a t v isio n . T h e c u ltu re is th e s e ttin g w ith in w h ic h th e v isio n ta k e s h o ld . In tu rn , th e v isio n m a y a ls o d e te rm in e th e c h a ra c te ris tic s o f th e o rg a n iz a tio n 's c u ltu re .

Transform ational leaders have been characterized by four sepa- rate com ponents or characteristics denoted as the 4 Is of transform a- tio n a l le a d e rs h ip (A v o lio , W a ld m a n , a n d Y a m m a rin o (1 9 9 1 ). T h e s e fo u r fa c to rs in c lu d e id e a liz e d in flu e n c e , in s p ira tio n a l m o tiv a tio n , in te lle c tu a l s tim u la tio n , a n d in d iv id u a liz e d

c o n s id e ra tio n . T ra n sfo r- m a tio n a l le a d e rs in te g ra te c re a tiv e in s ig h t, p e rs is te n c e a n d e n e rg y , intuition and sensitivity to the needs of o th ers to "forge th e strategy- c u ltu re a llo y " fo r th e ir o rg a n iz a tio n s . In c o n tra s t, tra n s a c tio n a l leaders are characterized by contingent rew ard and m anagem ent-by- e x c e p tio n

s ty le s of le a d e rs h ip . E s s e n tia lly , tra n s a c tio n a l le a d e r s d e v e lo p e x c h a n g e s o r a g re e m e n ts w ith th e ir fo llo w e rs , p o in tin g o u t w h a t th e fo llo w e rs w ill re c e iv e if th e y d o s o m e th in g rig h t a s w e ll a s w ro n g . T h e y w o rk w ith in th e e x istin g c u ltu re , fra m in g th e ir d e c is io n s

P A Q
S P R IN G
1 9 9 3
(1 1 3 )
and action based on the operative norm s and procedures character-
iz in g th e ir re s p e c tiv e o rg a n iz a tio n s .
In a h ig h ly in n o v a tiv e a n d sa tisfy in g o rg a n iz a tio n a l c u ltu r e w e a r e
lik e ly to s e e tra n s fo rm a tio n a l le a d e r s w h o b u ild o n a s s u m p tio n s s u c h
a s : p e o p le a re tru s tw o rth y a n d p u rp o s e fu l; e v e ry o n e h a s a u n iq u e

c o n trib u tio n to m a k e ; a n d c o m p le x p ro b le m s a r e h a n d le d a t th e low est level possible. Leaders w ho build such cultures and articulate th e m

to fo llo w e rs ty p ic a lly e x h ib it a s e n s e o f v is io n a n d p u r p o s e . They align others around the vision and em power others to take g r e a te r re s p o n s ib ility fo r a c h ie v in g th e v is io n . S u c h le a d e r s fa c ilita te a n d te a c h fo llo w e rs . T h e y fo s te r a c u ltu re o f c re a tiv e c h a n g e a n d g ro w th r a th e r th a n o n e w h ic h m a in ta in s th e s ta tu s q u o . T h e y ta k e p e rs o n a l re s p o n s ib ility fo r th e d e v e lo p m e n t o f th e ir fo llo w e rs . T h e ir fo llo w e rs

o p e ra te
u n d e r
th e
a s s u m p tio n
th a t
a ll o rg a n iz a tio n a l
m e m b e rs s h o u ld b e d e v e lo p e d to th e ir fu ll p o te n tia l.

T h e r e is a c o n s ta n t in te rp la y b e tw e e n c u ltu re a n d le a d e rs h ip . Leaders create m echanism s for cultural developm ent and the rein- forcem ent of norm s and behaviors expressed w ithin the boim daries of the culture. C ultural norm s arise and change because of w hat le a d e rs fo c u s th e ir a tte n tio n o n , h o w th e y re a c t to c ris e s , th e b e h a v - io rs th e y ro le m o d e l, a n d w h o m

th e y a ttra c t to th e ir o rg a n iz a tio n s . T h e c h a ra c te ris tic s a n d q u a litie s o f a n o rg a n iz a tio n 's c u ltu re a re ta u g h t b y its le a d e rs h ip a n d e v e n tu a lly a d o p te d b y its fo llo w e rs .

A t o n e e x tre m e a le a d e r a c c e p ts n o d e v ia tio n
fro m
s ta n d a rd

operating procedures, m anaging-by exception in a highly transac- tio n a l fa sh io n w h ile a t th e o th e r e x tre m e a n o th e r le a d e r re w a rd s fo llo w e rs w h e n th e y a p p ly r u le s in c re a tiv e w a y s o r if th e y b r e a k th e m

w h e n th e o v e ra ll m is s io n o f th e o rg a n iz a tio n is b e s t s e rv e d . How leaders react to problem s, resolve crises, rew ard and punish fo llo w e rs a r e a ll re le v a n t to a n o rg a n iz a tio n 's c u ltu re a s w e ll a s h o w th e le a d e r is v ie w e d b o th in te rn a lly b y fo llo w e rs a n d e x te rn a lly b y c lie n ts /c u s to m e rs .

T o reiterate, the culture affects leadership as m uch as leadership a ffe c ts c u ltu re . F o r in s ta n c e , a s tro n g o rg a n iz a tio n a l c u ltu re , w ith v a lu e s a n d in te r n a l g u id e s fo r m o re a u to n o m y a t lo w e r le v e ls , c a n p re v e n t to p a d m in is tra tio n fro m

increasing its personal pow er at the e x p e n s e o f m id d le -le v e l a d m in is tra tio n . O n a m o r e s p e c ific le v e l, th e culture can affect how decisions are m ade w ith respect to such areas a s re c ru itm e n t, s e le c tio n , a n d p la c e m e n t w ith in th e o rg a n iz a tio n .

L e a d e rs n e e d to b e a tte n tiv e to th e c o n s e rv a tiv e n e s s re fle c te d in
beliefs, values, assum ptions, rites, and cerem onies em bedded in the
(1 1 4 )
P A Q
S P R IN G 1 9 9 3

c u ltu re th a t c a n h in d e r e ffo rts to c h a n g e th e o rg a n iz a tio n . T h e y n e e d to m o d ify k e y a s p e c ts o f c u ltu r e , w h e n it is p o s s ib le to d o s o , to fit w ith n e w d ire c tio n s d e s ire d b y th e le a d e rs h ip a n d m e m b e rs h ip o f th e o rg a n iz a tio n . F o r e x a m p le , th e y c a n in v e n t n e w rite s to re p la c e th e o ld , s o m e o f w h ic h s y m b o liz e th e v a lu e o f c h a n g ei t s e l f . A n e x a m p le is the cerem onial introduction of a new product or process to re- p la c e a n o ld e r o n e . A s o rg a n iz a tio n s m o v e a c ro s s tim e , e x te rn a l c o n s tra in ts c h a n g e fo rc in g th e c o m p a n y to q u e s tio n its d e e p ly ro o te d assum ptions and values.

A s n e w m e m b e rs a re b ro u g h t in to th e o rg a n iz a tio n , th e y to o w ill
o fte n

c h a lle n g e d e e p ly h e ld a s s u m p tio n s e v e n th o u g h o rg a n iz a tio n s o fte n h ire p e o p le w h o h a v e s im ila r v a lu e s to th o s e d o m in a n t in th e o rg a n iz a tio n a l c u ltu re . C o n s e q u e n tly , it is in c u m b e n t

u p o n
th e

le a d e r s in th e o rg a n iz a tio n to v ie w th e d e v e lo p m e n t o f a s s u m p tio n s and values as ane v o lu tio n a r y p r o c e s s - a process by w hich the organ- iz a tio n a n d its m e m b e rs h ip p e rio d ic a lly q u e s tio n its a s s u m p tio n s a n d change them if the conditions w arrant such change.

E a rly in its d e v e lo p m e n t, a n o rg a n iz a tio n a l c u ltu re is th e "g lu e " th a t h o ld s th e o rg a n iz a tio n to g e th e r a s a s o u rc e o f id e n tity a n d d is - tin c tiv e c o m p e te n c e (B a s s , 1 9 9 1 ). U n fo rtu n a te ly , in a n o rg a n iz a tio n 's d e c lin e , its c u ltu re c a n b e c o m e a c o n s tra in t o n in n o v a tio n s in c e its ro o ts a re in th e o rg a n iz a tio n 's p a st g lo rie s .

O R G A N IZ A T IO N A L F O U N D E R S A N D C U L T U R E

O rg a n iz a tio n a l c u ltu re s a re o fte n th e c re a tio n o f th e ir e n tr e p r e - n e u ria l fo u n d e rs . F o u n d e rs o fte n c re a te a n o rg a n iz a tio n a l c u ltu re fro m

a p re c o n c e iv e d " c u ltu ra l s c h e m e " in th e ir h e a d . T y p ic a lly , th e foim der's and his or her successor's leadership helps shape a culture of shared values and assum ptions guided and restricted by the founders' personal beliefs. T he success or failure of an organization d e p e n d s o n th e re le v a n c e o f th e fo u n d e r's p h ilo s o p h ic a l b e lie fs to th e c u rre n t o p p o rtu n itie s a n d c o n stre tin ts c o n fro n tin g

th e o rg a n iz a -
tio n .

S o m e fo im d e rs o rig in a te a g e n c y c u ltu re s th a t th e y m u s t le a v e to others to m anage. H ow ever, in general, the facts are otherw ise. A m ong the C EO s of the fastest grow ing com panies in the U nited S ta te s in th e 1 9 8 0 s, th re e -fo u rth s w e re fo u n d e rs o f th e ir c o m p a n ie s and 83 percent never m ade plans to retire. T hey rem ained on until th e y d ie d le a d in g th e ir o rg a n iz a tio n s .

T o a c c o m p lis h th e n e e d e d c h a n g e s in a n o rg a n iz a tio n 's c u ltu r e , it

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