Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 Chapter 6 New Models for Leadership: Neo-charisma, Inspiration, and the Relationship with Followers

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-2 Learning Objectives  Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic leadership  Explain the positive and negative impacts of charismatic leadership on organizations  Distinguish between transactional and transformational leadership  Understand the key role of contingent rewards and the impact of management by exception  Present the elements of transformational leadership and their impact on followers and organizations  Describe the elements of value-based and spiritual leadership  Identify the components of authentic leadership and the impact of this leadership on followers and organizations  Explain the concept of positive leadership and its impact

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-3 Advantages of Neo-Charismatic Approaches  Allow for consideration of role of inspiration and vision  Focus on role of leader in creating and implementing change  Considers leaders at top levels of organizations  Provide potential integration with upper echelon leadership

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-4 Requirements of Charismatic Leadership Charismatic Leadership Charismatic Leadership Leader Characteristics Follower Characteristics The Situation

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-5 Characteristics of Charismatic Leaders  High self-confidence  Strong convictions about ideas  High energy and enthusiasm  Expressive  Excellent communication  Active image-building

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-6 Characteristics of Followers of Charismatic Leaders  High degree of respect and esteem for the leader  Loyalty and devotion to the leader  Affection for the leader  High performance expectations  Unquestioning obedience

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-7 The Charismatic Situation: External Factors  Sense of actual or imminent crisis  Perceived need for change  Opportunity to articulate ideological goal  Availability of dramatic symbols  Opportunity to articulate followers’ role

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-8 The Charismatic Situation: Organizational Factors  Organizational life cycle (early and late)  Complex task  No external reward available  Flexible and organic structure  Non-bureaucratic cultures

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-9 Universally Positive Cross- Cultural Attributes of Leadership  Encouraging and positive  Motivational  Dynamic  Having integrity  Being trustworthy  Team builder  Decisive  Intelligent  Communicator  Win-win problem solver

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-10 Universally Negative Cross- Cultural Attributes of Leadership  Being a loner  Being non-cooperative  Ruthless  Non-explicit  Irritable  Dictatorial

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-11 Culturally Contingent Leadership Attributes  Risk-taking  Enthusiasm  How vision is communicated  What constitutes good communication  How much leader is seen as equal

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-12 Ethical and Unethical Charisma Ethical Charisma  Used power to serve others  Matches vision to follower needs  Open to feedback  Develops followers  Encourages thinking Unethical Charisma  Uses power for personal gain  Promotes own vision  Closed to criticism  Top-down communication  Insensitive to followers

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-13 Transactional and Transformational Leadership Transactional  Focus on day-to- day activities  Exchange between leader and followers Transformational  Focused on change  Emotional bond between leader and followers

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-14 Transactional Leadership  Contingent Reward  Leader provides rewards in exchange for performance  Can be very productive  Management by Exception (MBE)  Leader gets involved only to correct and provide negative feedback  Generally not effective

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-15 Transformational Leadership Factors Charisma and Inspiration Overcome resistance to change Intellectual Stimulation New ideas and empowerment Individual Consideration Motivate and encourage Transformational Leadership

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-16 Implications of Transformational Leadership  Leaders must project confidence in followers’ ability  A clear vision is essential  Encourage creativity; empower followers, reward experimentation, and tolerate mistakes  Set high performance expectations  Establish personal connection with followers

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-17 Elements of Value-Based and Spiritual Leadership  Focus on how leaders and followers tap into their own personal values to create change  Integrity and honesty are two important values  Ethical leaders are fair and consider personal and organizational implications of their decisions and actions  Closely linked to transformational and authentic leadership

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-18 Authentic Leaders  Understand their own purpose  Practice solid values  Lead with their heart  Connect with followers  Demonstrate self-discipline

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-19 Continuum of Authentic Leadership Core values Identity Preferences Emotions Person without articulated values Behavior guided by External factors Person with limited or some articulated values Behavior guided by a combination of internal values and external pressures Authentic Leader: Person with strong articulated values that guide decisions and behaviors

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-20 Components of Authentic Leadership  Self-awareness of internal states  Unbiased or balanced consideration of issues  Behaviors that are reflections of personal values  Relational authenticity and ability to disclose and share information about self

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-21 Positive Leadership  Optimism  Encouraging positive deviance  Focusing on strength  Creating a positive climate  Maintaining positive relationships with followers  Kindness and support  Having positive communications with affirmative language  Dealing with negativity quickly

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-22 Implications of Value-Based, Authentic, and Positive Leadership  Focus on values (integrity)  Address followers emotional needs  Focus on areas of strengths, rather than correcting their weaknesses  Authentic leadership may be the root of charismatic and transformational leadership concepts  Positive leadership emphasizes thought processes – how leaders think matters

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-23 Leadership Challenge  Recognize the potential for “negative” charismatic leadership  Silence indicates acceptance; however complaining may not work  Self-preservation is primary  Build reputation for competence  Guard your integrity  Ask for transfer

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-24 Leading Change: Branson  Break rules and do things others won’t  Focus on making a difference and creating things he is proud of  Leaders must bring out the best in followers  Encourage employee and listen to them  Find the right match between the person and the job to motivate followers  Moved to global issues

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-25 Leadership in Action: Jung  First female CEO of Avon  Determination and confidence  Passion for the business  Strong delegation  Builds consensus

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 6-26 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.