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Transformational Leadership

Chapter 8

Northouse, 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?

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

Transformational Leadership

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.

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

Types of Leadership Defined (Burns, 1978)

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

Focuses on the

leader’s

own interests rather than the interests of his or her followers

PSEUDO-TRANSFORMATIONAL

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

Types of Leadership Defined (Burns, 1978)

TRANSACTIONAL

Focuses on the

exchanges

that occur

between leaders

and their followers

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.

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

Transactional Leadership Story

My story of transactional leadership:

Key points:

Power imbalance

Exchange of good/services

Attempt at mutual benefit

“You scratch my back, I’ll scratch yours”

Breakout Room

Break-Out Room Agenda:

Introduce yourself

Each person tell a story of a transactional leadership situation

What were the currencies being exchanged in each transaction?

Work? Promotions? Time? Financial Benefit? Etc.

Types of Leadership Defined (Burns, 1978)

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

PSEUDOTRANSFORMATIONAL

Focuses on the

leader’s

own interests rather than the interests of his or her followers

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

Pseudotransformational (Christie, Barling, & Turner, 2011)

Four experimental studies => model of pseudotransformational leadership

Self-serving

Unwilling to encourage independent thought in followers

Exhibits little general caring for others

Uses inspiration and appeal to manipulate followers for his or her own ends

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

Types of Leadership Defined Burns (1978)

TRANSFORMATIONAL

Process of

engaging with others

to create a connection

that increases

motivation

and morality in both the

leader and the follower

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.

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

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.

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

Theory of Charismatic Leadership

(House, 1976)

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

Table 8.1: Personality Characteristics, Behaviors, and Effects on Followers of Charismatic Leadership

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

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

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

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

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

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

Figure 8.1: Leadership Continuum From Transformational to Laissez-Faire Leadership

Transformational Leadership Factors

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

Transformational Leadership	Transactional Leadership	Laissez-Faire Leadership
Factor 1 Idealized influence Charisma	Factor 5 Contingent reward Constructive transactions	Factor 7 Laissez-faire Non-transactional
Factor 2 Inspirational motivation
Factor 3 Intellectual stimulation	Factor 6 Management by exception Active and passive Corrective transactions
Factor 4 Individual consideration

Table 8.2 Leadership Factors.

Table 8.2: Leadership Factors

Full Range of Leadership Model

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

Figure 8.2: Full Range of Leadership Model with Legend

Full Range of Leadership Model

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

Pseudo-transformational Leadership

4 I’s

Idealized influence (II-A and II-B)

Inspirational motivation

Intellectual stimulation

Individual consideration

Transactional Leadership

Effective

Ineffective

Figure 8.2: Full Range of Leadership Model with Legend

Transformational Leadership

Management-by-exception Passive

Laissez-faire Leadership

Contingent Reward

Management-by-exception Active

Transformational Leadership Factors: The 4 Is

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

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

Transformational Leadership Factors: The 4 Is

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)

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

Transformational Leadership Story

My story of Transformational Leadership

Key Points to think about during the story:

Idealized Influence

Inspirational Motivation

Intellectual Stimulation

Individual Consideration

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)

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

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

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

Individualized Consideration

Figure 8.3: The Additive Effect of Transformational Leadership

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

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

Overall Scope

Describes how leaders can initiate, develop, and carry out significant changes in organizations

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