MGMT 5870 Chapter 12 Charismatic and Transformational Leadership

Transformational Leadership - Influence process

transactional - instrumental compliance. transformational - personal identification, trust, inspirational motivation, intellectual stimulation. Cascading influence - role modeling at each level of management

Transformational Leadership

used to describe how effective leaders inspire and transform followers by appealing to their ideals and emotions

Self-Concept Theory - Leader traits and behaviors

1) articulating an appealing vision 2) using strong expressive forms of communicating when articulating the vision 3) taking personal risks and making self-sacrifices for them 4) communicating high expectations 5) expressing optimism and confidence in followers 6) modeling behaviors consistent with the vision 7) managing follower impressions of the leader 8) building identification with the group or organization 9) empowering followers

Guidelines for Inspirational Leaders

- Articulate a clear and appealing vision - explain how the vision can be attained - act confident and optimistic - express confidence in followers - use dramatic, symbolic actions to emphasize key values - lead by example

Consequences of Charismatic Leadership - Dark Side of Charisma

- Being in awe of a leader reduces good suggestions from followers - desire for leader acceptance inhibits criticism by followers - adoration by followers creates the illusion of leader infallibility - excessive confidence and optimism blind the leader to real dangers - Denial of problems and failures reduces organizational learning - risky grandiose projects are more likely to fail - taking complete credit for successes alienates key followers - impulsive, nontraditional behavior creates enemies as well as believers - dependence on the leader inhibits development of competent successors failure to develop successors creates an eventual leadership crisis.

Self-Concept Theory - Influence Processes

-Personal Identification -Social Identification - sense of pride in membership -Internalization - followers embrace a leaders mission -self and collective efficacy - belief in ones competence and capability -emotional contagion

Psychodynamic Processes

A few theories have defined charisma in terms of Freudian psychodynamics. Explain seemingly irrational idolization of leaders. One theory says that followers suffering from fear, guilt, or alienation may experience euphoric empowerment and transcendence by submerging their identity in that of a seemingly superhuman leader. Attributions of charisma are likely made by people who have feelings of inadequacy, guilt, fear, or alienation, and who share the beliefs and fantasies of the leader

Close and Distant Charisma

Attributions of charisma differ between those who are in direct contact with the leader, and those who view them from afar. Close - task behavior, follower motivation, identification Far - substantive achievements, and the effects on follower political attitudes.

Consequences of Charismatic Leadership - Practical Implications

Charismatic leadership is risky. This power can be abused or misused. Radical change in stratigy and culture is not always appropriate, and if there are two charismatic leaders opposing visions can tear apart organizations. Often charismatic leaders end up leaving and taking key followers which can hurt an organization. Charisma is not always good for the organization. Financial performance not determined by charisma, only higher compensation.

Attribution Theory - Facilitating Conditions

Highly dependent on the characteristics of the situation. More likely to emerge in crisis situations, but leaders may be able to crease dissatisfaction with the current situation then provide a vision of a more promising future

Consequences of Charismatic Leadership - Effects of positive charismatice

More likely to experience psychological growth and development of their abilities, the organization is more likely to adapt to the environment. Single-minded pursuit of a goal is good in a crisis, but stressful and leads to elitism, isolation, and morally ambiguous justifications in the long run.

Consequences of Charismatic Leadership - Positive and Negative Charismatics

Most charismatic leaders have both positive and negative effects, and it is not always clear if the outcome was beneficial or detrimental Therefore define in terms of values and personality. Negative charismatics have a personalized power orientation. They seek devotion to themselves rather than to their ideals. Seek to dominate and subjugate follower by keeping them weak and dependent. Positive charismatics have a socialized power orientation. They seek to instill devotion to ideology not themselves. They emphasize internalization rather than personal identification. They self sacrifice and lead by example, delegate authority and empower followers. This is more likely to be beneficial to followers.

Self-Concept Theory - Facilitating Conditions

Motivational effects of charismatic leaders are more likely to occur when the leader's vision is congruent with existing follower values and attitudes. Thus charismatic leaders mush understand needs and values of followers.

Attribution Theory - Leader Behaviors

Novel and Appealing Vision, Emotional appeals to values, unconventional behavior, self sacrifice, confidence and optimism

Attribution Theory - Influence Processes

Primary influence process is personal identification - follower's desire to please and imitate the leader. Leader's approval becomes a measure of self worth. Internalization - followers adopt the leaders new values and beliefs

Comparison of Charismatic and Transformational Leadership

Similar but a few differences Transformational leaders inspire, develop and empower followers. This may reult in reduced attribution of charisma to the leader. Charismatic leaders foster an image of extraordinary competence and increase subordinate dependence. Transformational leaders can be found at any level and more often, charismatic leaders are more rare and only emerge in very specific situations. Reactions to leaders - charismatic strong positive or negative; no in between. Transformational - less intense reactions, viewed as competent but not exciting.

Research on Charismatic and Transformational Leadership

Survey Studies - Multifactor Leadership Questionnaire (MLQ) has been used in most studies. Subs rate how often each type of leader behavior is used.Most surveys correlated trans or charismatic leadership with measures of outcome variables, such as motivation or performance. Lab and field experiments -lots of limitations Comparative analysis of leader descriptions - look at biographies, speeches, and writings by the leader Biolographical Study - looked at US presidents charisma levels. socialized power orientations were more likely to be viewed as charismatic. Charismatic leaders used more direct action to deal with problems and were rated higher in performance Intensive case study - interviews about leaders behaviors, decisions and consequences.

Self-Concept Theory of Charismatic Leadership

Theory to explain charismatic leadership in terms of a set of testable propositions involving observable processes. Evidence of charismatic leadership is provided by the leader-follower relationships and a charismatic leader has profound and unusual effects on followers

Charismatic vs Ideological and Pragmatic LEaders

Three types of leaders can emerge in a situation like crisis, turbulence and uncertainty Charismatic - appeal to emotions and articulate a vision that builds confidence that the leader can overcome the problem or resolve the crisis. Ideological - emerge when there is a strong culture of shared values, and they can embody these values. Pragmatic - emerge when perceived by followers to have the expertise and commitment necessary to guide the process .

Leader Behaviors

Transformational: - idealized Influence - individualized consideration - inspirational motivation - intellectual stimulation Transactional: - contingent reward active management by exception - passive management by exception

Transformational Leadership

appeals to the moral values of followers in an attempt to raise their consciousness about ethical issues and to mobilize their energy and resources to reform institutions. Followers feel trust, admiration, loyalty and respect toward the leader and are thus motivated to do more than they would have otherwise.

Transformational Leadership - Facilitating Conditions

differing situations change the effectiveness of this leadership.

Attribution Theory of Charismatic Leadership

follower attribution of charismatic qualities to a leader is jointly determined by the leader's behavior, expertise and aspects of the situation

Transactional leadership

motivates followers by appealing to their self-interest and exchanging benefits.

Charisma

occurs during a social crisis when a leader emerges with a radical vision that offers a solutions to the crisis and attracts followers who believe in the vision