Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-1 Chapter 11 Charisma and Transformational Leadership

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-2 Chapter Goals  The goal of this chapter is to define charismatic leadership, review the research findings on charismatic leadership, and review two of the more-popular transformational leadership theories.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-3 Max Weber  The most important early research on charismatic leadership was completed by Max Weber, who maintained that societies could be identified in terms of one of three types of authority systems: traditional, legal-rational, and charismatic.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-4 Traditional Authority System  The traditions and unwritten laws of the society dictate who has authority and how this authority can be used.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-5 Legal-Rational Authority System  Authority derives from society’s belief in the laws that govern it.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-6 Charismatic Authority System  Authority stems from the society’s belief in the exemplary characteristics of the leader.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-7 Theory of Transformational and Transactional Leadership  James McGregor Burns’s Theory of Transformational and Transactional Leadership  focused on the differences between power versus leadership and charismatic versus non- charismatic leadership

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-8 Theory of Transformational and Transactional Leadership  believed that leadership could take one of two forma: transactional leadership or transformational leadership  maintained that power and leadership were two distinct entities Cont.

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide 11-9 Common Characteristics of Charismatic and Transformational Leadership  Vision  Rhetorical skills  Image and trust building  Personalized leadership

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide Follower Characteristics  Identification with the Leader and the Vision  Heightened Emotional Levels  Willing Subordination to the Leader  Feelings of Empowerment

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide Situational Characteristics  Crises  Task Interdependence  Innovation  More Receptive to Change  Organizational Downsizing

Irwin/McGraw-Hill The McGraw-Hill Companies, Inc. © 1999 Slide Bass’s Theory of Transformational and Transactional Leadership  Transformational leaders possess charismatic-leader characteristics (vision, rhetorical skills, etc.).  Transactional leaders do not possess these leader characteristics, nor are they able to develop strong emotional bonds with followers or inspire followers to do more than they thought they could. Instead, transactional leaders motivate followers by setting goals and promising rewards for desired performance.