1 Chapter Three Charismatic and Transformational Leadership © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2 Learning Objectives  Describe many of the traits and behaviors of charismatic leaders.  Explain the visionary component of charismatic leadership.  Explain the communication style of charismatic leaders.  Have an action plan for developing your charisma.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Learning Objectives (cont’d)  Explain the nature of transformational leadership.  Identify several of the impacts of charismatic and transformational leadership on performance and behavior.  Describe the concerns about charismatic leadership from the scientific and moral standpoint.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

5

6 Charisma Defined  Charisma is a Greek word meaning “divinely inspired gift”  In leadership, charisma is a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others  In general use, charisma is having a charming and colorful personality

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

Inspiration and Non-Rational Communication  Charismatic leaders work deliberately at cultivating the relationship with group members through impression management.  These leaders recognize that the perceptions of constituents determine whether they function as charismatics.  Charismatic leaders are skillful actors in presenting a charismatic face to the world. © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

9 Charisma: A Relationship Between the Leader and Group Members  Key to charismatic leadership is the interaction between leader and group members  Charismatic qualities must be attributed to the leader by group members  Charismatic leaders use impression management to cultivate their relationships with group members

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 The Effects of Charisma  Group members trust the leader’s beliefs have beliefs similar to those of the leader accept the leader unquestioningly have affection for the leader willingly obey the leader

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 The Effects of Charisma (cont’d)  Group members identify with and attempt to emulate the leader have emotional involvement in the mission have heightened goals feel that they will be able to accomplish, or to contribute to the accomplishment of the mission

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Figure 3-1 Halpert’s Dimensions of Charisma ability to influence others because of one’s specialized knowledge, skills, or abilities Due to the leader’s desirable traits and characteristics feeling of being heavily committed to the job

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part top-level leaders sometimes lose their power and position because they are perceived as not being charismatic enough to get constituents to accomplish important goals.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Types of Charismatic Leaders 1. Socialized charismatics restrain the use of power in the interest of others. Followers have clear values and are independent and honest workers. 2. Personalized charismatics use power to serve their own interests. Followers have an obedient, submissive, and dependent work style.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Types of Charismatic Leaders (cont’d) 3. Office-holder charismatics attain their charisma chiefly from the position they hold. 4. Personal charismatics gain esteem from others’ faith in them as people, independent of office or position held. 5. Divine charismatics were once defined by strictly by the theological concept of possessing divine grace, but now, qualities of mysticism, narcissism, and magnetism also characterize this type.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 Characteristics of Charismatic Leaders  Visionary  Masterful communication skills  Ability to inspire trust  Able to make group members feel capable  Energy and action orientation  Emotional expressiveness and warmth  Romanticize risk  Unconventional strategies  Self-promoting personality  Dramatic and unique *Some of these characteristics also describe Transformation Leaders.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 The Vision Component  Vision is the ability to imagine different and better future conditions and ways to achieve them  Charismatic leaders inspire others with their visions, which are often lofty, long- term goals.  Visionaries have unique brain activity, suggests recent neuroscience research.  A vision differs from a mission. A mission defines an organization’s purpose, whereas a vision draws a picture of what the future will be.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 The Vision Component, cont’  A strong and clear vision statement should have the following elements: A reason for being beyond making money Timeless, unchanging core values Ambitious but achievable goals

Hull College of Business Vision Statement  The vision of the Hull College of Business is to be a globally competitive business school which delivers innovation and value to our students, to our stakeholders, and to society as a whole. Mission Statement  The Hull College of Business provides a high quality, student-focused education that prepares our students to excel in their fields of study and become leaders on a global stage. Our programs are highly desirable and develop graduates that are highly recruited. Our faculty members advance scholarly understanding and improve the professional practice of our disciplines through collaborative research and service.  © 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 Dean Miller ? Ability to change Vision based on rules handed to him by his top of pyramid…..

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 The Communication Component  Charismatic leaders’ communication style is typically colorful, imaginative, open, and expressive  Management by Inspiration Using metaphors and analogies to appeal to the intellect, imagination, and values of group members Gearing language to different audiences  Speech identifies leader as one of them  Management by Anecdote Inspiring and instructing team members by storytelling

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22 Techniques for Developing Charisma  Create visions for others  Be enthusiastic, optimistic, and energetic  Be sensibly persistent, (almost) never- say-no  Remember peoples’ names  Develop synchrony with others, “connect”  Develop a personal brand and be polished  Be candid, yet not insensitive, and direct  If appropriate for your work, display an in-your-face attitude

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23 Transformational Leadership  The transformational leader helps bring about major, positive changes  Transformational leaders move group members beyond their self- interests for the good of the group, organization, or society

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 Figure 3-2 How Transformations Take Place In contrast, the transactional leader focuses on more routine transactions, with an emphasis on rewarding group members for meeting standards. To accomplish his or her lofty purposes, the transformational leader attempts to overhaul the organizational culture or subculture

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26 Attributes of a Transformational Leader  Charismatic  Emotionally intelligent  Extroverted  Creates and communicates a vision  Encourages the personal development of others  Provides supportive leadership  Practices empowerment  Thinks innovatively  Leads by example  Often employs moral reasoning

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 Concerns About Charismatic Leadership  According to the concept of leadership polarity, leaders are often either revered or vastly unpopular, e.g. Martha Stewart  Charisma may not be necessary for leadership effectiveness  Charisma and its effects on leadership is a matter of perception; one may not necessarily affect the other  Charismatic leadership may lead to unethical, illegal or immoral actions  Some charismatic and transformational leaders neglect their social responsibility

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28 Summary  Charisma is a special quality of some leaders that differentiates them from others  Charismatic leaders often contribute to group members’ attributions of their charismatic qualities through impression management  The effects of charismatic leadership can be organized into three dimensions: referent power, expert power, and job involvement

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29 Summary (cont’d)  There are five types of charismatic leaders: socialized, personalized, office- holder, personal, and divine  Charismatic and transformational leaders are able to articulate a vision in such a way as to inspire others  Charisma can be developed  There may be a dark side to charismatic leadership

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32