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topic_7_charismatic__transformational_leadership.pptx

BUSM 4177 / 4194 Leading for Change

Topic 7: Charismatic Leadership

Learning Objectives

Charismatic and transformational leadership

Understand:

how the theories of charismatic and transformational leadership differ from earlier leadership theories.

similarities and differences among the major theories of charismatic and transformational leadership.

how attributions of charisma are jointly determined by the leader, the followers, and the situation.

what traits, behaviours, and influence processes are involved in charismatic and transformational leadership.

the benefits and costs of charismatic leadership for followers and the organisation.

how to apply the theories to become more effective as a leader.

A special quality of leaders whose purpose, powers and extraordinary determination differentiate them from others (Conger & Kanungo 1988)

Charisma and charismatic leadership

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Charisma and charismatic leadership

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Charismatic leadership points of difference with earlier leadership theories

Charismatic leadership theory calls on emotional and symbolic aspects of leadership

Charismatic leaders cant succeed without dedicated “followers”

You cannot be charismatic on your own, have to command an audience

Differentiate between creativity and innovation

Steve jobs and Steve Cameron

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1947: Weber used the term “charisma” to explain a form of influence based not on traditional or legal–rational authority systems but rather on follower perceptions that a leader is endowed with the gift of divine inspiration or supernatural qualities

Weber, M. (1947) The Theory of social and economic organization

(A.M. Henderson & T.Parsons Trans.) New York: Oxford University Press

1987: Conger and Kanungo argue that Weber’s conceptualisation is “limited by lack of specificity”. They developed a behavioural framework within which charisma could be observed and measured.

If the behaviours related to charisma can be isolated, then perhaps those behaviours can be developed to improve leadership or tested in applicants for leadership roles

Conger & Kanungo’s 1987 article is available on the course website

Early contributions to charismatic leadership

X

Charisma is a basket of qualities eg charm passion innovation etc

Attributions of Charisma – 1: Concepts

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Attributions of Charisma – 2: Follower contingencies

Follower attributions of charisma depends on aspects of the situation

Follower disposition

Follower anxiety

Follow disenchantment

I’m building a wall

I’m building a

cathedral

Two bricklayers one the one project were asked “what are you building?”

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Disposition = by nature

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Charismatic leaders … value and pursue an interrelated set of images: they are perceived as trustworthy, credible, morally worthy, innovative, esteemed, and powerful (Gardner & Avolio 1998)

Followers must have a strong desire to identify with the leader

Nine charismatic effects (House 1977); Jane A Halpert clustered these outcomes into:

referent power,

expert power &

job involvement.

The locus of charismatic leadership

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X

People are sometimes caught in their own agenda.

Referent power, expert power > charisma < job involvement

Referent power = people refer to a charismatic leader.

Expert power = expert in your area, you know your stuff.

Job involvement = you see them contributing to your cause?

Types of charismatic leaders

Socialized charismatics restrain the use of power in the interest of others. Followers have clear values and independent and honest workers. Eg mother Teresa

Personalized charismatics use power to serve their own interests, followers have an obedient, submissive style

Office-holder charismatics attain their charisma chiefly from the position they hold

Personal charismatics gain esteem from others faith in them as people, independent of office or position held.

Divine charismatics were once define by strictly by the theology concept of possessing divine grace but-

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School of Management

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One view of the logic flow of charismatic leadership

Where is the evidence?

X

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A: Charismatic leadership enhances staff motivation

B: Motivated staff achieve superior outputs

C: Superior outputs improve organisational effectiveness

charismatic leadership

Howell and Aviolo (1992)

Charismatic leadership qualities

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Relational power base – in order to be charismatic they have to have relations with followers

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Vision

High energy and action orientation

Ability to inspire trust

Superb communications skills

Self confidence and moral conviction

High risk orientation

Relational power base

Ability to empower others

Self-promoting personality

Minimal internal conflict

There are four attributes that distinguish charismatic from non-charismatic leaders:

Dissatisfaction with the status quo

Compelling nature of the vision

Use of unconventional strategies for achieving desired change

A realistic assessment of resource needs and other constraints for achieving desired change

Am I a charismatic leader?

X

I need some charisma, do you have any in stock?

some charisma qualities can be enhanced

strategies for acquiring / enhancing charismatic qualities include:

Developing visionary skills through practice and self-discipline

Practicing being candid

Developing a warm, positive, and humanistic attitude toward people rather than a negative, cool, and impersonal attitude

Developing an enthusiastic, optimistic, and energetic personality

charisma is inborn and can not be “picked up”

If you don’t have charisma you aren't “off the leadership track

……….. just in a slower, more challenging lane”

X

Followers trust in “rightness” of the leader’s vision

Similarity of follower’s beliefs and values to those of the leader

Heightened sense of self-confidence to contribute to accomplishment of the mission

Acceptance of higher or challenging goals

Identification with and emulation of leader

Unconditional acceptance of leader

Strong affection for the leader

Emotional involvement of the follower in the mission

Unquestioning loyalty and obedience to the leader

Effects of Charismatic Leadership on staff motivation

House & Baetx (1979) Leadership: some empirical generalizations and new research directions in B.M. Staw (ed.) Research in Organizational Behavior vol 1 (Greenwich, CT: JAI Press, 1979), 399-401

X

Organizational Effects of Positive Charismatics

Follower growth and development

Environmental adaptation

Achievement-oriented culture

High-performing system

Clearly understood mission

Mission embodies social values

Empowerment

Open communication

Shared information

Structures and systems support mission

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Are all charismatic leaders necessarily good leaders?

Charisma as a Double-Edged Sword

Adolf Hitler

Charles Manson

David Koresh

Rev Jim Jones

Gandhi

Martin Luther King

John Kennedy

Winston Churchill

Dominant, Machiavellian, narcissistic personality

Pursue leader-driven goals, promote feelings of obedience, dependency, and submission in followers

Use rewards and punishment to manipulate and control followers

Use information to preserve the image of leader infallibility or to exaggerate external threats to the organization

Egalitarian, self-transcendant, empowering personality

Pursue organisation-driven goals, promote feeling of empowerment, personal growth, equal participation of followers

Share information with followers and promote a positive organisational outlook

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Personalised charismatics

Socialised charismatics

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“Drawing on 770 surveys from top management team members in these companies, objective stock market and accounting data, and an objective measure of environmental uncertainty, we found that

organizational performance was associated with subsequent perceptions of CEO charisma

but that

perceptions of CEO charisma were not associated with subsequent organizational performance

even after we [controlled for] environmental uncertainty”

Agle, B Nagarajan, N Sonnenfeld, J, Srinivasan, D

Does CEO Charisma Matter? Academy of Management Journal

Feb 2006 Vol 49 Issue 1 p161-174

Cause and effect conundrum

X

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What is Transactional leadership?

Followers acknowledge the positional power of the leader

Agreed values and motivations between leader and followers

Punish undesirable follower behaviour

Reward follower behaviours and performance

X

Burns (1978) / Bass (1996)

Leaders and followers in an exchange relationship

Very common; tends to be transitory

Ethical element

Transactional leadership

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X

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What is Transformational leadership?

Followers trust, admire and respect the leader

Moving and changing things in a big way by communicating to followers a special vision of the future, tapping into the followers’ higher ideals and motives

There is collective “buy-in” to the organisational vision put forth by the leader and followers willingly expend exceptional effort

Changing the status quo by articulating to followers the problems with the current system and providing a compelling vision of how things could be

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Burns 1978

Power wielders v. leaders

Serve to change the status quo by:

Appealing to followers’ values

Reframing issues

Operating at a higher level of moral development than followers

Transformational leadership

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Transformational leadership

Appeals to moral values

Serves to change the status quo by articulating to followers the problems in the current system and a compelling vision of what a new organization could be

Transactional leadership

Bureaucratic authority

Task completion

Seeks to maintain stability within an organisation through regular economic and social exchanges that achieve specific goals for both the leaders and their followers

Transformational vs. Transactional Leadership Burns, J. M. (1978) Leadership New York. Harper and Row

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Bass 1990 says transformational leaders are:

Charismatic

Practice inspirational leadership

Provide intellectual stimulation

Demonstrate concern for individuals

Qualities for bringing about transformation

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Dubrin, Dalglish & Miller 2006 say that the transformational leader’s role is to:

raise people’s awareness

help people look beyond self-interest

help people search for self-fulfilment

help people understand need for change

invest managers with a sense of urgency

be committed to greatness

adopt a long range, broad perspective

Role of leader in transformation

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X

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Special relationship must be built

Does not develop overnight

Prevalent in countries possessing collectivist * societies (Jung et al 1995)

Rosener 1990 - men described themselves in transactional terms; women described themselves in transformational terms

* Is Singapore a collectivist society?

Issues in transformational leadership

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X

Transformational Leader Behaviours and Attributes Bass & Avilio’s “Four I” dimensions

Adapted from Bass, B., & Avilio, B. (1994)

Improving organizational effectiveness through transformational leadership Thousand Oaks, CA. Sage Publications

X

Behaviour dimensions

Idealised influence

[role model, followers subscribe to ideals]

Inspirational motivation

[inspire followers with strong vision and motivation]

Individual consideration

[encourage followers with strong communication / attention]

Intellectual stimulation

[challenge followers to be creative / innovative]

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So, does Transformational Leadership differ from Charismatic Leadership?

Some researchers say there isn't really any difference.

Others say that charisma is ONE of the attributes that characterise transformational leaders (the others being honesty, optimism, communication skills, confidence and consideration)

But we do know that charisma is RELATIONAL in nature (ie it only works if the followers recognise the leader’s charisma)

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Leader traits and behaviours

Follower values, needs, perceptions and beliefs

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Transformational but not charismatic:

Can influence followers by meeting their emotional needs and providing intellectually stimulating rationale on the need for change.

Bill Gates?

Transformational and charismatic:

Nelson Mandela?

Is it possible to be transformational but not charismatic?

X

Transactional leadership:

-agreed values and motivations with followers

-reward follower behaviors and performance

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Images included in this presentation are licenced under creative commons. Learn more about the creative commons scheme here.

RMIT is proud to partner with Pearson Australia in the development of the customised resources for this course.

This presentation draws on material from chapter seven of the course textbook Sustainable Leadership people, technology and design – an RMIT Custom Publication, Pearson ® Australia and is subject to copyright.

Presentation developed by Ian Woodruff, School of Management,

RMIT University

Graphics used in this presentation were created using Presenter M edia Software licenced to Ian Woodruff, RMIT University.

Presenter Media retains copyright for these graphics.

Acknowledgements

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