GROUP 9

LEADER-MEMBER EXCHANGE THEORY;

CHARISMATIC LEADERSHIP;
TRANSACTIONAL AND
TRANSFORMATIONAL LEADERSHIP;
 GROUP 9
Phạm Thùy Linh
Lê Phú Thiện
Lâm Mỹ Duyên
Trần Thảo Uyên
Đoàn Chí Trung
Nguyễn Thùy Anh
Trần Nguyễn Thanh Trúc
Đoàn Nhật Minh
Ngô Phương Anh
AGENDA

Leader-Member Charismatic Transformational

Exchange Theory Leadership & Transactional
leadership style
 01
Leader-Member
Exchange
Theory
Leader-Member Exchange Theory

A theory that supports leaders’

creation of ingroups and outgroups;
subordinates with ingroup status will
have higher performance ratings,
less turnover, and greater job
satisfaction.
Consequences
Higher turnover rate

Lack of job
Low employee
commitment
job satisfaction

Conflict amongst staff

Members in the “in-group” will be

given more opportunities & higher pay.
The out-group might feel taken advantage of &
miss out on opportunities to contribute their skills.
 Implications for managers

1. Reach out to your Out-Group

Note their names down -> Analyze the reasons -> Compare the facts with your perceptions.

2. Provide Training and Development Opportunities

3. Reestablish the relationship

Meet each team member one-on-one -> Identify their psychological contract
-> Discover their motivations -> Understand them in personal level
 Conclusion
LMX theory has been generally supportive, with
substantive evidence that leaders do differentiate
among followers.

Ingroup -> higher performance ratings, engage in

more helping or citizenship behaviors at work, &
report greater satisfaction with their superior.
 02
Charismatic
Leadership
What is charismatic leadership?
A leadership theory that states that
followers make attributions of heroic or
extraordinary leadership abilities when
they observe certain behaviors.
Are charismatic leaders
born or made?

Individuals are born with traits that make

them charismatic.
Research indicates that charismatic
leadership is not only the province of world
leaders—all of us can develop, within our
own limitations, a more charismatic
leadership style.
 KEY PERSONALITIES
Vision & Articulation
Be able to clarify the importance
of the vision in terms that are
understandable to others.
Sensitivity
Perceptive of others’ abilities and
responsive to their needs and
feelings.
Personal Risk
Willing to take on high personal risk,
incur high costs, and engage in self
sacrifice to achieve the vision.
Unconventional
Behavior
Engages in behaviors that are perceived
as novel and counter to norms.
 Influence on Followers
1st
Articulating an
appealing vision 2nd
Accompanying vision
statement
3rd
Conveys a new set of values
and sets an example for 4th
followers to imitate. Engages in emotion-inducing
and often unconventional
behavior
Effective charismatic leadership
depend on the situation?

People working for charismatic leaders

are motivated to exert extra effort:
● Respect their leader, express
greater satisfaction
● More profitable
● Higher course evaluations.
Eg: Apple Computer (1997)
 Effective charismatic leadership
depend on the situation?
More receptive to charismatic
leadership under crises

Reduce stress for their

employees
Most effective under a high
Make work seem more
degree of stress and uncertainty.
meaningful and interesting.
 The Dark Side of Charismatic
Leadership

Charisma is can be used Override the goals of

for good— and for ill. the organization.
It’s not that charismatic leadership isn’t Eg: Leaders at Enron, Tyco, WorldCom,
effective; overall, it is. But a charismatic and HealthSouth - Hitler
leader isn’t always the answer.
 03
Transformational &
Transactional
leadership style
DEFINITION

Transactional leaders: “establish goals” by “clarifying

role” and “task requirements”

Transformational leaders: “inspire followers”, “have

an extraordinary effect on followers”
CHARACTERISTICS
Transactional Leaders
Contingent
Reward
● Straightforward approach to
rewarding the followers
● Include bonuses, promotions,
recognition, appreciation
Passive
Management
● Give freedom
● Prompt leadership
interversion when needed
Active
Management
● Control and Monitor activities,
tasks, performance, outcomes.
● Steps in and intervenes when has
the signs of problems or failure
Laissez-faire
● Frequent absences
● Lack of involvement
during critical junctions
 CHARACTERISTICS
Transformational Leaders

Idealized Influence Inspirational

Motivation
● builds trust with the followers ● Inspire confidence, motivation
● develop a shared vision and ● Articulate a clear vision,
improve relationships demonstrate a commitment.

Intellectual Individualized
Stimulation Consideration
● Values creativity and autonomy ● Recognize what motivates each
● Involve the followers in the individual
decision-making process ● Provides opportunities for
customized training sessions
CASE !
How Transactional/
Transformational Leadership deal
with decrease in sale revenue?
 WHAT HAPPENS?
Type Transactional Transformational

Leaders’ thought “Let set the goals to gain sale revenue” “Let’s get over it together!”

How leaders act? - Send out a HR reallocation and set KPI - Start with telling their expectations.
for each position. - Set up meeting to discuss the problem
- Make sure their goals on track. to solve.

How leaders Employees are motivated by Employees are motivated by

motivate? commission, rewards,... for gaining sale. communication, encouragement,
charisma to initiate.

How followers Responsible for their own reward Responsible for team’s ideas
feel? Rewarded & worthy Included in team
Obvious with the expectation, strive to Stressed for conducting ideas out the
reach KPI expectation
 Effective

Idealised influence

Inspirational
motivation

Intellectual
stimulation Transformational

Individualised
consideration
Passive Active
Contingent reward

Management by
exception

Transactional
Laissez-faire

Ineffective
THANK YOU !