CHAPTER EIGHT CHANGE ORIENTED LEADERSHIP
Learning Objectives • Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic leadership. • Explain the positive and negative impact of charismatic leadership on organizations. • Distinguish between transactional and transformational leadership.
Learning Objectives 4. Understand the key role of contingent reward and the impact of management by exception. 5. Present the elements of transformational leadership and their impact on followers and organizations. 6. Describe the role of visionary and exemplary leadership in bringing about change in organizations.
Charismatic Leadership “May the force be with you”
Leader Characteristics Follower Characteristics Situational Requirements Charismatic relationship and leadership Necessary Elements Of Charismatic Leadership
Characteristics Of Charismatic Leaders • High self-confidence • Strong convictions about ideas • High energy and enthusiasm • Expressive • Excellent communication • Active image-building
Characteristics Of Charismatic Followers • High degree of respect and esteem for the leader • Loyalty and devotion to the leader • Affection for the leader • High performance expectations • Unquestioning obedience
Charismatic External Situational Requirements • Sense of actual or imminent crisis • Perceived need for change • Opportunity to articulate ideological goal • Availability of dramatic symbols • Opportunity to articulate followers’ role
Charismatic Internal Situational Requirements • Organizational life cycle (early and late) • Complex task • No external reward available • Flexible and organic structure • Non-bureaucratic cultures
Max Weber • The most important early research on charismatic leadership was completed by Max Weber, who maintained that societies could be identified in terms of one of three types of authority systems: traditional, legal-rational, and charismatic.
Traditional Authority System • The traditions and unwritten laws of the society dictate who has authority and how this authority can be used.
Legal-Rational Authority System • Authority derives from society’s belief in the laws that govern it.
Charismatic Authority System • Authority stems from the society’s belief in the exemplary characteristics of the leader.
Common Characteristics of Charismatic Leadership • Vision • Rhetorical skills • Image and trust building • Personalized leadership
Situational Characteristics • Crises • Task Interdependence • Innovation • More Receptive to Change • Organizational Downsizing
Perspectives on Charisma • The Sociological Approach • 1. Extraordinary, almost magical talents • 2. Crisis situation • 3. Radical vision • 4. Followers • 5. Validation of leader through repeated success
Perspectives on Charisma • The Psychoanalytic Approach • Intense attraction • Regression • Transference • Projection What does this say for the followers and for positive leaders?
Perspectives on Charisma • The Political Approach • Types of charismatic leaders: • Charismatic giants • Charismatic luminaries • Charismatic failures • Charismatic aspirants
Perspectives on Charisma • Charismatic leaders increase their power: • Cultural myths • Public address • Concentric circles
Perspectives on Charisma • The Behavioral Approach • Leader behaviors • Leader-follower relations • The situation
Perspectives on Charisma • The Attribution Approach • 1. Possess a vision that is unique, but attainable • 2. Act in an unconventional, counter-normative way • 3. Personal commitment & risk • 4. Confidence & expertise • 5. Personal Power
Perspectives on Charisma • The Communication Approach • Relationship builders • Visionaries • Influence agents
Perspectives on Charisma • The Dark Side • Differences in: • Power • Vision • Relationship to followers • Communication • Ethics & Morals
The Dark Side at Work • Failures of vision • Misarticulation of goals • Poor management • Who are the charismatic leaders we can agree on?
Encouraging and positive Motivational Dynamic Having integrity Being trustworthy Team builder Decisive Intelligent Communicator Win-win problem solver Universally Positive Cross Cultural Attributes of Leadership
Universally Negative Cross- Cultural Attributes of Leadership • Being a loner • Being non-cooperative • Ruthless • Non-explicit • Irritable • Dictatorial
Culturally Contingent Attributes of Leadership • Risk-taking • Enthusiasm • How vision is communicated • What constitutes good communication • How much leader is seen as equal
Unethical And Ethical Charisma Unethical Charisma: • Uses power for personal gain • Promotes own vision • Closed to criticism • Top-down communication • Insensitive to followers
Unethical And Ethical Charisma Ethical Charisma: • Use power to serve others • Match vision to follower needs • Open to feedback • Develops followers • Encourages thinking
Transactional Leadership • Contingent reward • Management by exception
Charisma and Inspiration Overcome resistance to change Intellectual Stimulation New ideas and empowerment Individual Consideration Motivate and encourage Transformational Leadership Transformational Leadership Factors
Theory of Transformational and Transactional Leadership • James McGregor Burns’s Theory of Transformational and Transactional Leadership • focused on the differences between power versus leadership and charismatic versus non-charismatic leadership
Theory of Transformational and Transactional Leadership • believed that leadership could take one of two forms: transactional leadership or transformational leadership • maintained that power and leadership were two distinct entities Cont.
Transformational Leadership Transformational leaders use idealized influence, individualized consideration, inspirational motivation, and intellectual stimulation, while transactional leaders use contingent reward, and active and passive management by exception.
Follower Characteristics • Identification with the Leader and the Vision • Heightened Emotional Levels • Willing Subordination to the Leader • Feelings of Empowerment
Bass’s Theory of Transformational and Transactional Leadership • Transformational leaders possess charismatic-leader characteristics (vision, rhetorical skills, etc.). • Transactional leaders do not possess these leader characteristics, nor are they able to develop strong emotional bonds with followers or inspire followers to do more than they thought they could. Instead, transactional leaders motivate followers by setting goals and promising rewards for desired performance.
Guidelines for Transformational Leadership • Articulate a clear and appealing vision. • Explain how the vision can be attained. • Act confident and optimistic. • Express confidence in followers. • Use dramatic, symbolic actions to emphasize key values. • Lead by example. • Empower people to achieve the vision.