1. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-1 Chapter 9 Charismatic and Transformational Leadership

2. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-2 Learning Objectives Understand how the theories of charismatic and transformational leadership differ from earlier leadership theories Understand similarities and differences among the major theories of charismatic and transformational leadership Understand why attributions of charisma are jointly determined by the leader, the followers, and the situation Understand what traits, behaviors, and influence processes are involved in charismatic and transformational leadership

3. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-3 Learning Objectives (Cont.) Understand why charismatic leadership can result in undesirable consequences for followers and the organization Understand what research methods have been used to evaluate theories of transformational and charismatic leadership Understand the major findings in empirical research on the effects of charismatic and transformational leadership Understand how to apply the theories to become more effective as a leader

4. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-4 Early Theories Charisma Max Weber – Divinely inspired gift Occurs during a social crisis Leader emerges with a radical vision that offers a solution Transforming Leadership Burns’ book on political leadership Transforming leadership appeals to the moral values of followers to raise their consciousness and mobilize their energies Transactional leadership motivates followers by appealing to their self-interest and exchanging benefits

5. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-5 Attribution Theory of Charismatic Leadership Leader Traits and Behaviors Advocate a vision highly discrepant from the status quo Acts in unconventional ways Make self-sacrifices Appear confident about their proposals Inspire them with emotional appeals See opportunities that others fail to recognize Influence Processes Personal identification Internalization Facilitating Conditions Follower disenchantment Crisis situation

6. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-6 Self-Concept Theory of Charismatic Leadership Indicators of Charisma Leader Traits and Behaviors Articulating an appealing vision Using strong, expressive forms of communication when articulating the vision Taking personal risks and making self sacrifices to attain the vision Communicating high expectations Expressing confidence in followers Modeling behaviors consistent with the vision Managing follower impressions of the leader Building identification with the group or organization Empowering followers

7. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-7 Self-Concept Theory of Charismatic Leadership (Cont.) Influence Processes Personal identification Social identification Internalization Individual self-efficacy and collective efficacy Facilitating Conditions Leader’s vision is congruent with existing follower values and identities Task roles defined in ideological terms that appeal to followers Crisis situation

8. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-8 Other Conceptions of Charisma Psychodynamic Processes Social Contagion and Charisma Close and Distant Charisma Routinization of Charisma

9. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-9 Table: Comparison of Four Charismatic Theories

10. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-10 Consequences of Charismatic Leadership Positive and Negative Charismatics Determined by examining the consequences for followers Negative charismatics have a personalized power orientation Positive charismatics have a socialized power orientation

11. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-11 Consequences of Charismatic Leadership The Dark Side of Charisma Being in awe of the leader reduces good suggestions by followers Desire for leader acceptance inhibits criticism by followers Adoration by followers creates delusions of leader infallibility Excessive confidence and optimism blind the leader to real dangers Denial of problems and failures reduces organizational learning

12. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-12 Consequences of Charismatic Leadership The Dark Side of Charisma (Cont.) Risky, grandiose projects are more likely to fail Taking complete credit for successes alienates some key followers Impulsive, nontraditional behavior creates enemies as well as believers Dependence on the leader inhibits development of competent successors Failure to develop successors creates an eventual leadership crisis

13. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-13 Transformational Leadership Leader Behaviors Transformational Behaviors Idealized influence Individualized consideration Inspirational motivation Intellectual stimulation Transactional Behaviors Contingent reward Active management by exception Passive management by exception

14. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-14 Transformational Leadership (Cont.) Influence Processes Transactional Leadership Instrumental compliance Transformational Leadership Internalization Personal identification

15. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-15 Transformational Leadership (Cont.) Facilitating Conditions Some aspects of transformational leadership are relevant in most, if not all, situations Dynamic, unstable environment that increases the need for change Leaders are encouraged to be flexible and innovative Follower traits and values

16. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-16 Primary Types of Research on the Theories Survey Research Laboratory Experiments Field Experiments Descriptive and Comparative Studies Intensive Case Studies

17. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-17 Transformational vs. Charismatic Leadership Differences and Similarities between the Theories Evaluation of the Theories Available evidence supports charismatic and transformational leadership theories Several of their propositions can be found in earlier theories – “Old wine in a new bottle” Conceptual weaknesses Ambiguous constructs Insufficient description of explanatory processes Narrow focus on dyadic processes Omission of some relevant behaviors Insufficient specification of situational variables Bias toward heroic conceptions of leadership Overemphasis on universal leader attributes that are not relevant for all situations

18. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-18 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

19. Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 9-19 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. Copyright © 2010 Pearson Education, Inc.