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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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