Leadership Styles: Transformational Leadership

USE __________ LEADERSHIP STYLE FOR LEADERSHIP EFFECTIVENESS PRINCIPLE USE __________ LEADERSHIP STYLE FOR LEADERSHIP EFFECTIVENESS To be decided

The Path of Leadership Transition & Development Laissez-faire Leadership Transactional Leadership Transformational Leadership Hands-off Ultimate ©2010 Alex Stajkovic

The Path of Leadership Transition/Development Laissez-faire Transactional management Transformational Leadership Ultimate Hands-off ©2010 Alex Stajkovic

The Three Fundamental Styles Laissez-Faire Usually results in no (productive) outcomes Transactional Results in expected outcomes Transformational Leadership Results in above and beyond outcomes ©2010 Alex Stajkovic

Add-on effect of transformational leadership Current state of expected subordinate effort Heightened motivation to attain designated outcome (extra effort) Transactional approach Normal expected subordinate performance Subordinate performance beyond normal expectations ©2010 Alex Stajkovic

TRANSFORMATIONAL LEADERSHIP IDEALIZED INFLUENCE INDIVIDUALIZED CONSIDERATION INSPIRATIONAL MOTIVATION INTELLECTUAL STIMULATION + + + TRANSACTIONAL LEADERSHIP MANAGEMENT BY EXCEPTION PERFORMANCE BEYOND EXPECTATIONS EXPECTED OUTCOMES + CONTINGENT REWARD ©2010 Alex Stajkovic

Transactional Style, Factor 1 CONTINGENT REWARDING by applying the principles of Positive Reinforcement Refers to an exchange process between leaders and followers in which efforts by followers is exchanged for specified rewards ©2010 Alex Stajkovic

Video Example, Contingent Rewarding Pros: _____________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________ Cons: _____________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________ ©2010 Alex Stajkovic

Transactional Style, Factor 2 MANAGEMENT BY EXCEPTION by applying the principles of Negative Reinforcement and Punishment A-priori (proactive) Post-hoc (retroactive) ©2010 Alex Stajkovic

Video Example, Management by Exception Pros: _____________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________ Cons: _____________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________ ©2010 Alex Stajkovic

What Do Transformational Leaders Do to Win the Hearts and Minds of the Followers? ©2010 Alex Stajkovic

Transformational Leadership Factors - I CHARISMA or IDEALIZED INFLUENCE The charisma factor describes leaders who are “special” and who make others want to follow the vision they put forward. ©2010 Alex Stajkovic

Charisma & Charismatic Leaders Charisma = “Gift” “CHARISMA DESCRIBES LEADERS WHO BY FORCE OF THEIR PERSONAL ABILITIES ARE CAPABLE OF HAVING PROFOUND AND EXTRAORDINARY EFFECTS ON FOLLOWERS” Charismatic leaders are those who “reveal a transcendent Mission or course of action which may be in itself Appealing to the potential followers, but which Is acted upon because the followers believe Their leader is extraordinarily gifted” (Max Weber, 1947, p. 358)

Learning about Charismatic Leadership What are the Personal Characteristics of Charismatic Leaders? What are the Behaviors of Charismatic Leaders? What are the Effects of Charismatic Leadership on Followers?

Charisma – Value Neutral? Is Charisma Value Neutral? Ethical vs. Unethical Charismatic Leaders What do Ethical Charismatic Leaders Do? What do Unethical Charismatic Leaders Do?

Transformational Leadership Factors - II VISION Or INSPIRATIONAL MOTIVATION Leaders communicate high expectations to followers, inspiring them to become committed to a shared vision. ©2010 Alex Stajkovic

Carpe Diem! “Seize the day” “Win one for the Gipper” Visions “I have a dream …” “Ask not what your country can do for you. Ask what you can do for your country” Carpe Diem! “Seize the day” “Win one for the Gipper”

Transformational Leadership Factors - III INTELLECTUAL STIMULATION Leader stimulates followers to be intellectually creative, and to challenge their own beliefs and assumptions as well as those of the leader and organization. ©2010 Alex Stajkovic

Transformational Leadership Factors - IV INDIVIDUALIZED CONSIDERATION Leaders provide a supportive climate and listen to the individual needs of followers. Leaders act as coaches in trying to assist individuals in becoming self-actualized. ©2010 Alex Stajkovic

Fear-Based Compliance Calculative Compliance Comparison Matrix Management by exception Contingent rewarding Transformational Leadership Transactional Transactional Focus Vision Reprimands Rewards Source of Power Authority Reward Exchange Inspiration Source of Direction Manager Leader Manager Fear-Based Compliance Calculative Compliance Emotional Commitment Subordinate Response ©2010 Alex Stajkovic

Video Example of Transformational Leadership Pros: _____________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________ Cons: _____________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________ ©2010 Alex Stajkovic

Applied Findings: The Aircraft Career Leadership Exercise A Real-Life Example There will be a handout ©2010 Alex Stajkovic

Applied Findings: The CEO Summit A Real-Life Example #2 ©2010 Alex Stajkovic