Charismatic and Transformational Leadership Chapter 9 Charismatic and Transformational Leadership Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Summary of Lecture 19 Charisma and Charismatic Leadership Max Weber on charismatic leadership. Locus of charismatic leadership. Personal Meanings Purpose of Life Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Learning Objectives How one can acquire charismatic qualities. Socialized VS personalized charismatic leaders. Charismatic VS transformational leadership. Phases of the transformation process. Transformational VS Transactional leadership Stewardship and servant leadership Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

How One Acquires Charismatic Qualities Training help to build charismatic qualities? Practice and self discipline improve building vision Emotional stability and empathic behavior Develop communication skills Learn techniques to influence and inspire people Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Strategies to Develop Charismatic Qualities Develop Visionary Skills Practice being candid Develop Warm positive and humanistic attitude Develop an enthusiastic, optimistic And energetic personality Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Charisma: A double Edged Sword Charisma can make or ruin (positive and negative outcomes) Be careful in hero worship Personal motives or organization interest Valuation theory proposes that two basic motives drive an individual 1) self glorification motive based on self enhancement 2) self transcendence motives based on collective interest give meaning through supportive relationships with others Socialized and Personalized charismatic leader Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Socialized and Personalized Charismatic Leader SCL: Promotes empowerment, self development, equal participation and pursue organization goals SCL encourage and instill devotion to vision and ideology PCL: Promotes dependency, obedience, and submission in followers PCL promotes devotion to themselves, make decision based on self serving, group achievements are used for self glorification Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

EXAMPLES OF PERSONALIZED CHARISMATIC LEADERS Adolph Hitler Josef Stalin Benito Mussolini Charles Manson David Koresh Rev. James Jones Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

EXAMPLES OF SOCIALIZED CHARISMATIC LEADERS Quaid-e-Azam Winston Churchill John Fitzgerald Kennedy Martin Luther King, Jr. Others? Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Is Charisma Solution of Every Problem In time of crises and radical change strategic leadership approach is more appropriate than lone star individualistic approach Organizational change is possible through transformational leadership Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Name few Charismatic leaders? Why do you think so? Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

WHY OR WHY NOT? IS CHARISMA MORE OR LESS IMPORTANT IN POLITICAL LEADERS TODAY? WHY OR WHY NOT? Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Charismatic leaders are more vulnerable to threats because of strong emotional level Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

TRANSFORMATIONAL LEADERSHIP 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 Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Transformational and Charismatic Leadership Some authors believe that there is no distinction Some see charisma as one of the attribute that define transformational leadership Agreement on assertion that charismatic leader are actually transformational leader but not all transformational leaders are charismatic Transformational leader may influence and instill passion for change through personalized consideration and rationalizing need for change, insight in new possible solutions and bring commitment Transformational leaders can be from different levels of organization Therefore, organization can have more than one transformational leader Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

TRANSFORMATIONAL LEADERSHIP Focuses on what leaders accomplish( transforming abilities), not their personal characteristics or followers’ reactions 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 Moving and Changing things Alter existing structure, and influence people to get their support for new vision and new possibilities Collective “buy in” to organizational vision given by leader that follower willingly put extra effort to achieve organizational goals Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

TRANSFORMATIONAL LEADERSHIP Transformational leader have charisma, intellectual abilities, inspiration and individual consideration Craft and implement bold strategies to exploit opportunities Transformational leader bring change Shift of focus from individual to collective interest Build trust and commitment towards mission and change Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Transformational Leaders Create & Articulate a Vision Set an example for followers consistent with leader values and beliefs Foster a “Buy-in” of Team Goals Have High Performance Expectations Personalize the Leader-Member Exchange Empower followers to think outside the box Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Transformational Leaders See themselves as change agents Are visionaries with high levels of trust for their organization Are risk takers, but not reckless Articulate core values that guide their own behavior Have exceptional cognitive skills Believe in careful planning before taking action Believe in people & show sensitivity for their needs Are flexible and open to learning from experience Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Transformation Process Make a compelling case for change Inspire a shared vision Lead the transition Implant the change Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Transactional Leadership Seeks to maintain stability within an organization through regular economic and social exchanges that achieve specific goals for both the leaders and followers Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Transformational and Transactional Leadership More influential, inspirational and charismatic Task and reward oriented influence Active and bring new things way working Passive and structured Challenge status quo Maintain status quo Use personal attributes to influence followers Use reward and punishment to inspire followers Strong emotional bond Weak emotional belonging Development and Empowerment Monitor and control Focus on revolutionary change in structure and culture Maintain stability in culture, structure and strategies Long term relationship Relationship ends or redefined once transaction completed Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Then Who is Effective Leader Who possess both transformational and transactional leadership skills and use these according to situation Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

STEWARDSHIP An employee-focused form of leadership that empowers followers to make decisions and have control over their jobs Contemporary view: Leader as steward and servant of the people Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Values of Stewardship Stewardship Teamwork Orientation Equality Assumptions Teamwork Orientation Stewardship Reward Assumption Decentralization Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

KEYS TO STEWARDSHIP Helping employees to grow personally and professionally Strong teamwork orientation Decentralized decision making and power down to where the work gets done Equality assumption that it is a partnership of equals rather than a leader-follower command structure Rewards must be redesigned to compensate employees for actual contributions and greater responsibility Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Servant Leadership “Servant leadership emphasizes fairness and justice as means for achieving organization citizenship behavior” A strong moral standpoint Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Guidelines to Servant Leadership Use of persuasion rather than positional authority Service to others over self interest Effective listening Servant Leadership Commitment to the growth of employees Build community within and outside organization Earning and keeping others’ trust: no hidden agendas, give up power, rewards, recognition, & control Helping others discover their inner spirit: empathetic of others Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Discussion Questions Discussion Question 1: List few limitations of charismatic leadership theory? Question 2: List key characteristics and attributes of transformational leaders? Discussion Question 3: Explain the concept of servant leadership? Discussion Question 4: What do you think charismatic leadership or transformational leadership is more effective? Discussion Question 5: What is difference between transformational and transactional leader​? Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

Summary Max Weber on charismatic leadership. Argument for and against the locus of charismatic leadership. How one can acquire charismatic qualities. Socialized VS personalized charismatic leaders. Charismatic VS transformational leadership. 4 Phases of the transformation process. Transformational VS Transactional leadership Stewardship and servant leadership Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning