Chapter 6

Evaluation of transformational leadership:

Research has showed that transformational leadership can increase employee productivity by enhancing their commitment to the organization.

Authentic Leadership

Authentic leadership is a leadership style that emphasizes self-awareness, transparency, and ethical behavior. Authentic leaders are aware of their own strengths and weaknesses, and they are able to lead in a way that is true to their values and beliefs.

Authentic leadership in todays business environment

Authentic leadership is particularly important in today's business environment, where stakeholders are increasingly demanding transparency and ethical behavior from their leaders. Authentic leaders are able to build trust with their stakeholders and create a sense of shared purpose among their team members.

conclution of transactional contracts

Transactional contracts do not inspire followers to aim for excellence, rather, they focus on short-term and immediate outcomes.

Servant leadership:

Leadership philosophy that emphasizes serving the needs of others first, rather than the personal interests or goals of the leader. In other words, a servant leader prioritizes the well-being, growth, and development of their team or organization, rather than their own advancement or authority.

What do authentic leaders do?

PRACTICE WAHT THEY PREACH • Transparent with team members and stakeholders. • Communicating openly and honestly about their intentions, decisions, and actions. • They are guided by a strong sense of integrity and ethical behavior, and they hold themselves accountable for their actions.

characteristics of followers (Charismatic leadership)

Results from a relationship: • Intense emotional bond • High degree of respect, affection, and esteem for the leader • Loyalty and devotion to the leader • Identification with the leader • High confidence in leader • High-performance expectations • Unquestioning obedience

Characteristics of charismatic leaders

Self-confidence Vision Ability to articulate the vision and make it "real" to others Strong convictions about the vision High energy and enthusiasm Expressiveness and excellent communication skills Active image building, role modeling, and impression management

What is charimatic leadership

The relationship between leaders and followers. Charismatic leaders capture our imagination and inspire their followers' devotion and allegiance. Followers see them not merely as bosses but as role models and heroes

Criticism of value-based models:

· Value-based leadership approaches can bring benefits to organizations through optimism and taking care of followers. · However, excessive positivity and optimism can lead to delusional thinking and overestimation of control and abilities. · Positive leadership can have dire consequences in organizational and political leadership, such as the financial crisis of 2008. · Equating leadership with positivity may undermine critical thinking and dissent, as well as the importance of followers. · The effectiveness of value-based leadership outside of the United States, where positivity is culturally based, needs consideration. · The assumption that value-based leadership works in all situations and contexts needs careful consideration.

Ethical charismatic leaders (compared to unethical):

• Accepts criticism • Open to communication from followers

Positive leadership:

• Approach that focuses on elevating situations through having an affirmative bias that emphasizes strengths, capabilities, and possibilities, rather than weaknesses and problems. • At the core is the emphasis on individual strengths and helping people achieve their highest potential.

Positive leadership includes:

• Being optimistic • Encouraging positive deviance: by promoting outstanding results that change the way things are for the better. • Focusing on strengths: Having an affirmative bias that promotes what is going well instead of trying to correct what is wrong • Creating a positive climate: Where you give people the benefit of the doubt; foster compassion, forgiveness, and gratitude; and celebrate successes. • Maintaining positive relationships: With followers and advancing kindness, cooperation, support, and forgiveness in your team. • Having positive communications: with affirmative language, open and honest feedback geared toward building on and supporting strengths. • Dealing with negativity quickly: Addressing those who behave negatively and sad the energy of the team in a constructive manner.

Transformational leadership (three parts)

• Charisma and inspiration: Emotional bond, results in loyalty and trust in, and emulation of, the leader. • Intellectual stimulation: Leaders ability to motivate followers to solve problems by challenging intellectually and empowering them to innovate and develop creative solutions. • Individual consideration: Development of a personal relationship with each follower. Connected to the LMX theory. Followers feel special, motivated and developed, they will perform better.

Connection Culture and charisma:

• Charismatic figures are more likely to emerge from cultures with prophetic traditions. • Charisma evokes different reactions in different cultures, being charismatic is seen as both positive and negative.

Key characteristics of a servant leader:

• Empathy • Listening • Collaboration • Commitment to growth and development of team

Benefits of authentic leadership:

• Increased employee engagement and job satisfaction. • Improved performance and productivity • Enhanced organizational reputation and brand image

Three factors affecting charismatic leadership

• Leader characteristics • Follower characteristics • Situational factors

What should a servant leader do?

• Listen to their team members • Take team members opinions into account when making decisions. • Support team members in their personal and professional growth. • Prioritize member well-being and development over achieving organizational goals.

Effect of the charismatic leaders high confidence

• Motivates followers • Creates a self-fulfilling prophecy • Encourages the followers to carry out the leaders wishes wholeheartedly.

Internal organizatoinal conditions for charismatic leadership

• Organizational life cycle: More likely to emerge and be effective in the early or late stage of the organizations life cycle • Type of task and reward structure: Complex, challenging and ambiguous tasks that require initiative and creativity and where external rewards cannot be clearly tied to performance can be ideal situations for charismatic leaders • Organizational structure and culture: Flexible and organic structures and nonbureaucratic organizational cultures are likely to encourage charismatic leadership.

Elements of charismatic situations

• Perceived need for change • Sense of real or imminent crisis • Opportunity to articulate ideological goal • Availability of dramatic symbols • Opportunity to clearly articulate followers role in managing the crisis

The charismatic situation:

• Perception of crisis leads followers to look for new directions and solutions and prepares them to accept change • The individual is able to capture and represent the groups needs and aspirations, that individual becomes the leader. • The strong emotional impact of charismatic leaders makes the followers provide them with tremendous credit to lead the group into new territory.

Recommendations for leaders based on transformational leadership model:

• Project confidence and optimism about the goals and followers ability. • Provide a clear vision. • Encourage creativity through empowerment, reward experimentation, and tolerate mistakes • Set high expectations and create a supportive environment • Establish personal relationships with followers.

Key characteristics of authentic leaders:

• Self-awareness • Tranparency • ethical behavior • Strong sense of purpose • Authentic leaders are able to create a positive work environment by promoting open communication, trust, and collaboration.

Components of authentic leadership:

• Self-awareness: Being aware of and trusting one's emotions, motives, complexities, abilities, and potential inner conflicts. • Unbiased or balanced processing: Ability to consider, within reasonable limits, multiple perspectives and inputs and assess information in a balanced manner in regard to information about both the self and others. • Behaviors are true to self and motivated by personal convictions: Desire to please others; decisions and behaviors guided by personal values. • Relational authenticity or transparency: Ability to disclose and share information about self appropriately and openly to relate to others; achieving openness and truthfulness in close relationships.

Three value-based leadership:

• Servant • Authentic • Positive

The dark side of charisma

• Strong emotional bond makes it easy for the charismatic leader to abuse power. • Unethical charismatic leaders focuses on personal goals rather than organizational.

Management by exception (MBE):

• The leader interacts little with followers, provides limited or no direction, and only intervenes when things go wrong. • In one type of MBE (active MBE) leaders monitor follower activities and correct mistakes as they happen. • In another type, labeled laissez-faire or omission, leaders are passive and indifferent toward followers and their task. • In both cases, little positive reinforcement or encouragement are given; instead the leader relies almost exclusively on discipline and punishment. • Using MBE as a primary leadership style has a negative impact on followers performance and satisfaction.

Contingent reward

• The leader provides followers with promised rewards when they fulfill their agree-upon goals. • Research indicates that transactional leadership can provide structure and lead to positive outcomes.

Unethical charismatic leaders:

• They use behaviors similar to those in the dark triad. • They censor opposing views and engages in one-way communication. • Might present goals resulting from a flawed vision that is self-serving to unrealistic estimates of the environment

Transactional Leadership

• leadership based on an exchange process in which followers are rewarded for good performance and punished for poor performance. • Leader provides followers with resources and rewards in exchange for motivation, productivity and effective task accomplishment.