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
Maslow’s 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
 Adam’s 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 leader’s 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 leader’s 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 leader’s 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 follower’s
needs
– Relies on convenient
external moral standards
Significant Abuses Contributing to
Leadership Failure
Failure of vision
Misarticulation of goals
Poor management practices