A4: Transformation, Transactional, and Charismatic Leadership

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Transformational Leadership 1

Chapter 8

2Northouse, Leadership 8e. © SAGE Publications, 2019.

Overview  Transformational Leadership (TL) Perspective

 A Model of Transformational Leadership

 Transformational Leadership Factors

 Full Range of Leadership Model

 The Additive Effects of TL

 Other Transformational Leadership Perspectives

 How Does the Transformational Approach Work?

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Transformational Leadership 2 Description

 Process--TL is a process that changes and transforms individuals, both leaders and followers.

 Influence--TL involves an exceptional form of influence that moves followers to accomplish more than what is usually expected.

 Core elements--TL is concerned with emotions, values, ethics, standards, and long-term goals.

 Encompassing approach--TL describes a wide range of leadership influence where followers and leaders are bound together in the transformation process.

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Types of Leadership Defined 1 (Burns, 1978) (1 of 3)

TRANSACTIONAL Focuses on the exchanges that occur between leaders and their

followers

TRANSFORMATIONAL Process of engaging with others

to create a connection that increases motivation and morality in both the leader and the follower

PSEUDO-TRANSFORMATIONAL Focuses on the leader’s own interests rather than the interests of his or her followers

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Types of Leadership Defined 2 (Burns, 1978) (2 of 3)

No new taxes = votes Turn in assignments = grade Surpass goals = promotion

The exchange dimension is so common that you can observe it at all walks of life.

Focuses on the exchanges that occur

between leaders and their followers

TRANSACTIONAL

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Types of Leadership Defined 3 (Burns, 1978) (3 of 3)

 Leaders who are  transforming but in a

negative way  self-consumed,

exploitive; power- oriented, with warped moral values

 Includes leaders like  Adolph Hitler  Saddam Hussein

 Focuses on the leader’s own interests rather than the interests of his or her followers

PSEUDOTRANSFORMATIONAL

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Pseudotransformational (Christie, Barling, & Turner, 2011)

Four experimental studies => model of pseudotransformational leadership 1) Self-serving 2) Unwilling to encourage independent thought in

followers 3) Exhibits little general caring for others 4) Uses inspiration and appeal to manipulate followers

for his or her own ends

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Types of Leadership Defined Burns (1978)

 Leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential.

• Mohandas Gandhi raised the hopes and demands of millions of his people and in the process was changed himself.

• Ryan White raised people’s awareness about AIDS.

Process of engaging with others

to create a connection that increases

motivation and morality in both the leader and the follower

TRANSFORMATIONAL

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Transformational Leadership and Charisma

Definition  Charisma--A special personality characteristic that gives

a person superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader (Weber, 1947).

 Charismatic Leadership Theory (House, 1976)  Charismatic leaders act in unique ways that have specific

charismatic effects on their followers.

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Theory of Charismatic Leadership

(House, 1976)

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Theory of Charismatic Leadership (Shamir, House, & Arthur, 1993)

Later Studies

 Charismatic Leadership:  Transforms follower’s self-concepts; tries to link

identity of followers to collective identity of the organization • Forge this link by emphasizing intrinsic

rewards and de-emphasizing extrinsic rewards • Throughout process, leaders

 express high expectations for followers  help followers gain sense of self-confidence

and self-efficacy

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Model of Transformational Leadership (Bass, 1985)

Expanded and refined version of work done by Burns and House. It included  More attention to followers’ rather than leader’s needs  Suggested TL could apply to outcomes that were not

positive  Described transactional and transformational

leadership as a continuum

 Extended House’s work by  Giving more attention to emotional elements and

origins of charisma  Suggested charisma is a necessary but not sufficient

condition for TL

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Model of Transformational Leadership TL motivates followers beyond the expected by  raising consciousness about the value and importance of specific

and idealized goals  transcending self-interest for the good of the team or organization  addressing higher level needs

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Transformational Leadership Factors

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Full Range of Leadership Model

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Transformational Leadership Factors: The 4 Is (1 of 2)

 Idealized Influence  Acting as strong role models  High standards of moral and ethical conduct  Making others want to follow the leader’s vision

 Inspirational Motivation  Communicating high expectations  Inspiring followers to commitment and engagement in

shared vision  Using symbols and emotional appeals to focus group

members to achieve more than self-interest

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Transformational Leadership Factors: The 4 Is (2 of 2)

 Intellectual Stimulation  Stimulating followers to be creative and innovative  Challenging their own beliefs and valuing those of leader and

organization  Supporting followers to  Try new approaches  Develop innovative ways of dealing with organization issues

 Individualized Consideration  Listening carefully to the needs of followers  Acting as coaches to assist followers in becoming fully

actualized  Helping followers grow through personal challenges  For example, showing optimism helps employees become more

engaged in their work (Tims et al., 2011)

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The Additive Effect of Transformational Leadership

Augments impact on employee’s performance and company profit (Rowald & Heinitz, 2007)

Positively related to job satisfaction and performance (Nemanich & Keller, 2007)

Boosts employee engagement and optimism (Tims, et. al., 2011)

TL leaders more likely to promote employee’s achieving their mastery goals (Hamstra, et.al.,2014)

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Transactional Leadership Factors Contingent Reward  The exchange process between leaders and followers in

which effort by followers is exchanged for specified rewards  For example, how much TV a child can watch after practicing

piano. Management-by-Exception  Leadership that involves corrective criticism, negative feedback,

and negative reinforcement  Two forms

• Active--Watches follower closely to identify mistakes/rule violations

• Passive--Intervenes only after standards have not been met or problems have arisen

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Nonleadership Factor  Laissez-Faire  The Absence of Leadership  A hands‐off, let‐things‐ride approach  Refers to a leader who

 abdicates responsibility,  delays decisions,  gives no feedback, and  makes little effort to help followers satisfy their needs.

 May also be a strategic choice by leader to acknowledge subordinates’ abilities

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Individualized Consideration

Bennis and Nanus (1985) Four Leader Strategies in Transforming Organizations

 Clear vision of organization’s future state

 TL’s social architect of organization

 Create trust by making their position known and standing by it

 Creatively deploy themselves through positive self- regard

Kouzes and Pozner (1987, 2002) Model consists of five fundamental practices

 Model the Way

 Inspire a Shared Vision

 Challenge the Process

 Enable Others to Act

 Encourage the Heart

How Does the Transformational Leadership Approach Work?

 Focus of Transformational Leadership

 Strengths

 Criticisms

 Application

Transformational Leadership

Overall Scope  Describes how leaders can

initiate, develop, and carry out significant changes in organizations

Focus of Transformational Leaders  TLs empower and nurture

followers  TLs stimulate change by

becoming strong role models for followers

 TLs commonly create a vision

 TLs require leaders to become social architects

 TLs build trust and foster collaboration

Strengths  Broadly researched. TL has been widely researched, including a

large body of qualitative research centering on prominent leaders and CEOs in major firms.

 Intuitive appeal. People are attracted to TL because it makes sense to them.

 Process focused. TL treats leadership as a process occurring between followers and leaders.

 Expansive leadership view. TL provides a broader view of leadership that augments other leadership models. Contributes to leader’s growth.

 Emphasizes followers. TL emphasizes followers’ needs, values, and morals.

 Effectiveness. Evidence supports that TL is an effective form of leadership.

Criticisms  Lacks conceptual clarity

 Dimensions are not clearly delimited  Parameters of TL overlap with similar conceptualizations of leadership  Unclear whether dimensions are simply descriptions of TL

 Measurement questioned  Validity of MLQ not fully established  Some transformational factors are not unique solely to the

transformational model  TL treats leadership more as a personality trait or predisposition

than a behavior that can be taught  No causal link shown between transformational leaders and

changes in followers or organizations  TL is elitist and antidemocratic  Suffers from heroic leadership bias  Has the potential to be abused  May not be well-received by millennials

Application  Provides a general way of thinking about leadership that

stresses ideals, inspiration, innovations, and individual concerns

 Can be taught to individuals at all levels of the organization

 Able to positively impact a firm’s performance  May be used as a tool in recruitment, selection,

promotion, and training development  Can be used to improve team development, decision-

making groups, quality initiatives, and reorganizations  The MLQ and Sosik and Jung (2010) guide help leaders

to target areas of leadership improvement