1. CHANGE ORIENTED LEADERSHIP
CHAPTER EIGHT
CHANGE ORIENTED LEADERSHIP

2. Learning Objectives
Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic leadership.
Explain the positive and negative impact of charismatic leadership on organizations.
Distinguish between transactional and transformational leadership.

3. Learning Objectives
4. Understand the key role of contingent reward and the impact of management by exception.
5. Present the elements of transformational leadership and their impact on followers and organizations.
6. Describe the role of visionary and exemplary leadership in bringing about change in organizations.

4. Charismatic Leadership
“May the force be with you”

5. Necessary Elements Of Charismatic Leadership
Characteristics
Follower
Characteristics
Situational
Requirements
Charismatic
relationship and
leadership

6. Characteristics Of Charismatic Leaders
High self-confidence
Strong convictions about ideas
High energy and enthusiasm
Expressive
Excellent communication
Active image-building

7. Characteristics Of Charismatic Followers
High degree of respect and esteem for the leader
Loyalty and devotion to the leader
Affection for the leader
High performance expectations
Unquestioning obedience

8. Charismatic External Situational Requirements
Sense of actual or imminent crisis
Perceived need for change
Opportunity to articulate ideological goal
Availability of dramatic symbols
Opportunity to articulate followers’ role

9. Charismatic Internal Situational Requirements
Organizational life cycle (early and late)
Complex task
No external reward available
Flexible and organic structure
Non-bureaucratic cultures

10. 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.

11. Traditional Authority System
The traditions and unwritten laws of the society dictate who has authority and how this authority can be used.

12. Legal-Rational Authority System
Authority derives from society’s belief in the laws that govern it.

13. Charismatic Authority System
Authority stems from the society’s belief in the exemplary characteristics of the leader.

14. Common Characteristics of Charismatic Leadership
Vision
Rhetorical skills
Image and trust building
Personalized leadership

15. Situational Characteristics
Crises
Task Interdependence
Innovation
More Receptive to Change
Organizational Downsizing

16. Perspectives on Charisma
The Sociological Approach
1. Extraordinary, almost magical talents
2. Crisis situation
3. Radical vision
4. Followers
5. Validation of leader through repeated success

17. Perspectives on Charisma
The Psychoanalytic Approach
Intense attraction
Regression
Transference
Projection
What does this say for the followers and for positive leaders?

18. Perspectives on Charisma
The Political Approach
Types of charismatic leaders:
Charismatic giants
Charismatic luminaries
Charismatic failures
Charismatic aspirants

19. Perspectives on Charisma
Charismatic leaders increase their power:
Cultural myths
Public address
Concentric circles

20. Perspectives on Charisma
The Behavioral Approach
Leader behaviors
Leader-follower relations
The situation

21. Perspectives on Charisma
The Attribution Approach
1. Possess a vision that is unique, but attainable
2. Act in an unconventional, counter-normative way
3. Personal commitment & risk
4. Confidence & expertise
5. Personal Power

22. Perspectives on Charisma
The Communication Approach
Relationship builders
Visionaries
Influence agents

23. Perspectives on Charisma
The Dark Side
Differences in:
Power
Vision
Relationship to followers
Communication
Ethics & Morals

24. The Dark Side at Work Failures of vision Misarticulation of goals
Poor management
Who are the charismatic leaders we can agree on?

25. Who are the charismatic leaders we recognize?
And why?

38. 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

39. Universally Negative Cross- Cultural Attributes of Leadership
Being a loner
Being non-cooperative
Ruthless
Non-explicit
Irritable
Dictatorial

40. Culturally Contingent Attributes of Leadership
Risk-taking
Enthusiasm
How vision is communicated
What constitutes good communication
How much leader is seen as equal

41. Unethical And Ethical Charisma
Unethical Charisma:
Uses power for personal gain
Promotes own vision
Closed to criticism
Top-down communication
Insensitive to followers

42. Unethical And Ethical Charisma
Use power to serve others
Match vision to follower needs
Open to feedback
Develops followers
Encourages thinking

43. Transactional Leadership
Contingent reward
Management by exception

44. Transformational Leadership Factors
Charisma and
Inspiration
Overcome
resistance to
change
Intellectual
Stimulation
New ideas and
empowerment
Individual
Consideration
Motivate and
encourage
Transformational
Leadership

45. 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

46. Theory of Transformational and Transactional Leadership
Cont.
believed that leadership could take one of two forms: transactional leadership or transformational leadership
maintained that power and leadership were two distinct entities

47. Transformational Leadership
Transformational leaders use idealized influence, individualized consideration, inspirational motivation, and intellectual stimulation, while transactional leaders use contingent reward, and active and passive management by exception.

48. Follower Characteristics
Identification with the Leader and the Vision
Heightened Emotional Levels
Willing Subordination to the Leader
Feelings of Empowerment

49. 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.

50. Guidelines for Transformational Leadership
Articulate a clear and appealing vision.
Explain how the vision can be attained.
Act confident and optimistic.
Express confidence in followers.
Use dramatic, symbolic actions to emphasize key values.
Lead by example.
Empower people to achieve the vision.

51. Common Elements of Change-Oriented Leadership Theories
Vision is key
Empowerment
Flexibility and change
Teamwork and cooperation

52. Elements Of A Motivating Vision
Simple and clearly understandable
Challenging and idealistic, while realistic and achievable
Appeals to values, emotions, and ideals
Forward-looking, while based on present

53. Elements of Credibility
Clarifying values
Identifying what followers want
Building agreement and consensus
Communicating values with enthusiasm
Standing up for your beliefs
Role-modeling desired behaviors

54. Practices Of Exemplary Leadership
Challenging the process
Creating a shared
vision
Role modeling
Exemplary
Leadership
Enabling followers to
implement vision
Encouraging the heart

55. To Motivate Followers, Leaders Must…
Set clear standards and goals
Expect the best
Pay attention
Personalize rewards and recognition
Tell a story
Celebrate together
Role model

56. LOOKING TOWARD THE FUTURE: WHAT WILL WE BE WHEN WE GROW UP?
CHAPTER TEN
LOOKING TOWARD THE FUTURE: WHAT WILL WE BE WHEN WE GROW UP?

57. Learning Objectives
Summarize the information and knowledge that you acquired from this book and outline areas in need of further clarification.
Explain the changes in the leadership context.
Distinguish between previous and current definitions of leadership.
Understand the challenges that face leaders in the future.

58. What Do We Know?
On the average, leaders are more energetic, motivated, intelligent, and self-confident
Traits are important, but no single trait defines leadership
Power is key to leadership; its use and function in organizations is changing
A contingency view is key to understanding and predicting leadership effectiveness
Teams are changing leaders’ roles

59. What Do We Know? (cont’d)
An emotional bond between leaders and followers is one of the key factors to changing organizations
Leaders must clarify their vision
Upper echelon, strategic leadership has distinct characteristics
Culture must be an integral part of any understanding of leadership

60. What Don’t We Know? Role of traits Understanding the impact of the
organizational context
Full impact of culture at
various levels

61. Changes in Organizations
Structural changes
Changing demographics
Globalization
New work ethic
Learning and knowledge
Technology
Need for flexibility
Fast-paced change

62. Consequences for Leadership
New roles for leaders; emphasis on followers
Understanding differences and culture
Understanding global issues
Accommodating different working styles
Continuous training and leading knowledge workers
Learning to manage change
Remaining flexible

63. Looking to the Future Leaders with a service mentality
Leaders with a global perspective
Leaders with an integrated view of organizations
Leaders must remain flexible and open to change
Leaders who are committed to continuous learning
Leaders who achieve a personal balance

64. The Collapse of Sensemaking in Organizations:
The Mann Gulch Disaster

65. The Mann Gulch Disaster
Why do organizations unravel?
How can organizations be made more resilient?
Let’s start with what happened:
What are the major features of this incident?

66. Maclean’s Question about the Disaster
What the structure of a small outfit should be when its business is to meet sudden danger and present disaster.
What the smoke jumping crew an organization?
Interlocking routines
Simple structure (much like an entrepreneurial firm)
Generic subjectivity

67. Unsuspected Vulnerability
Sudden losses of meaning
Cosmology episode
Vu jade – outstripping your past experience
Sensemaking – reality is an ongoing accomplishment that emerges from efforts to create order and make retrospective sense of what occurs
The 10:00 fire example

68. When did Dodge lose leadership?
Crew got confused
‘Throw away your tools!’
Panic
Yet these members had confronted danger before. . . But not as a member of a disintegrating group
Lost their framework (cosmos) and found chaos
Threat-rigidity

69. How does this relate to business?
“The recipe for disorganization in Mann Gulch is not all that rare in everyday life. The recipe reads, thrust people into unfamiliar roles, leave some key roles unfilled, make the task more ambiguous, discredit the role system, and make all of these changes in an context in which small events can combine into something monstrous.”

70. So, what can we learn about resilience?
Four sources
Improvisation
Virtual Role Systems
The Attitude of Wisdom
Respectful Interaction

71. Improvisation
We don’t expect creativity under intense pressure (threat-rigidity)
Creativity – figuring out how to use what you already know in order to go beyond what you currently think
Bricoleur – being able to create order out of whatever materials were at hand

72. Virtual Role Systems Each member mentally takes all roles
Holographic – each member can reconstitute the group and take whatever role is needed

73. The Attitude of Wisdom
“The more we learn about a particular domain, the greater the number of uncertainties, doubts, questions, and complexities.” (The Silence of the Skies)
Extreme confidence and Extreme caution preclude
Curiosity, openness, complex sensing

74. Respectful Interaction
We need trust, honesty & self-respect
We also need social support
What are devices of mitigation? (Tenerife & Air Florida 90)
When formal structure collapses, is anything left?

75. Structures for Resilience
Communication
Ways to rebuild frameworks and meaning
What was the structure of the smoke jumpers?
There are few safe environments
What structure allows people to meet sudden danger, who builds and maintains it?

76. Leaders Do! Excellent team leaders spend more time team building
Excellent team leaders listen
Excellent team leaders use a range of styles
What did Dodge do wrong?

77. Change

78. Change

79. Changing Organizations Involves Extensive Diagnosis, Action, and Evaluation
Diagnose
Forces for
and Against
Change
Select
Change
Agent
Build
Plan for
Change
Implement
Change
Strategies
Evaluate
Changes
Institutionalize
Changes

80. Drivers of Change
Technology
Information
People

81. Intensity of the Forces
Forces for Change
GREATER THAN
Forces against Change
Forces for
Change
Forces Against
Change
Forces for Change
LESS THAN
Forces against Change
Forces for
Change
Forces Against
Change
Forces for Change
EQUAL TO
Forces against Change
Forces for
Change
Forces Against
Change

82. Internal and External Crises can Cause Change
Major industrial accidents
Product injuries
Computer breakdown
Defective, undisclosed information
Failure to adapt/change
Sabotage by insiders
Organizational breakdown
Communication breakdown
On-site product tampering
Illegal activities
Occupational health diseases
Widespread environmental destruction
Natural disasters
Hostile takeover
Societal crises (civil or political)
Large-scale systems failure
Sabotage by outsiders
Terrorism
Executive kidnapping
Off-site product tampering
Counterfeiting

83. Managers Must Decide the Most Important Factors in Choosing a Change Agent
Internal Change Agents
External Change Agents
Possess better knowledge of the organization
Are more quickly available
Require lower out-of-pocket costs
Are a known quantity
Have more control and authority
Have more objective views of the organization
Have more experience in dealing with more diverse problems
Can call on more individuals with diverse expertise
Have more technical knowledge, competence, and skills available
Advantages

84. (Cont.) Disadvantages Internal Change Agents External Change Agents
Have less knowledge of the organization
Require higher out-of-pocket costs
Are an unknown quantity
Have longer start-up time
Reflect unfavorably on the image of management
May be too close to the problem
May hold biased views
May create additional resistance if views as part of the problem
Must be reassigned; not available for other work
Disadvantages

85. Unethical Behavior can Adversely Affect Change Efforts
Emphasis on short-term revenues over long-term considerations.
Routinely ignoring or violating internal or professional codes of ethics.
Looking for simple solutions to ethical problems, being satisfied with quick fixes.
Unwillingness to take an ethical stand if there is a financial cost.
Creation of an internal environment that discourages ethical behavior or
encourages unethical behavior.
Dispatch of ethical problems to the legal department.
View of ethics solely as a public relations tool.

86. Unethical Behavior can Adversely Affect Change Efforts (Cont.)
Treatment of employees that differs from treatment of customers.
Unfair or arbitrary performance appraisal standards.
Lack of procedures or policies for handling ethical problems.
Lack of mechanisms for internal whistle-blowing.
Lack of clear lines of communication.
Sensitivity only to shareholder needs and demands.
Encouragement of employees to ignore their personal ethical values.

87. Evaluation of Change Occurs at Four Levels
AFFECTIVE
LEARNING
CHANGE
BEHAVIORAL
PERFORMANCE

88. Individual Characteristics
Attitude to
Risk
Creativity

91. Who are you?
Hem – who does not want to change. Haw – who learns to laugh at his fear. Sniff – who smells change in the air. Scurry – who goes into action.

97. The Handwriting on the Wall