Leadership & Team Management MGMT 623 VU Lesson 11 TRANSACTIONAL, CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP Effective leaders don't use a
single style; they use many different styles and make adjustments based on the situation. An important but often overlooked contingency variables is national
culture New Approaches of Leadership:following are the new approaches of leadership; 1. Transactional 2. Charismatic 3. Transformational First of all we
need to understand the difference between Transactional and Transformational leadership. After this, we will be discussing the Charismatic leadership. 1.
Transactional Leadership: These types of leaders focus on rewards in exchange for motivation, productivity and effective task accomplishment. 2. Transformational: These types of leaders focus on influencing attitudes and assumptions of staff. Building commitment to the mission and always try to achieve the objective of the organisation. Transactional leaders differ from transformational leaders � Most of the leadership theories presented in this chapter address the issue of transactional leaders. �
These leaders guide or motivate their followers in the direction of established goals by clarifying role and task requirements. � Transformational leaders inspire followers to transcend their own self-interests for the good of the organization and are capable of having a profound and extraordinary effect on his or her followers. � Transformational
leaders pay attention to the concerns and developmental needs of individual followers; they change followers' awareness of issues by helping those followers to look at
old problems in new ways; and they are able to excite, arouse, and inspire followers to put out extra effort to achieve group goals. � Transactional and transformational leadership are not opposing approaches.
� Transformational leadership is built on transactional leadership. � Transformational leadership
produces higher levels of employee effort and performance. � It is more than charisma. �
The transformational leader will attempt to instill in followers the ability to question not only established views but eventually those established by the
leader. � The evidence supporting the superiority of transformational leadership over the transactional variety is
overwhelmingly impressive. � In summary, the overall evidence indicates that transformational leadership is more strongly correlated
with lower turnover rates, higher productivity, and higher employee satisfaction. Differences: Categories Transactional Transformational Rank, position Character, competence Leader's source of power Compliance Commitment Follower reaction Short term Long
term Time frame Pay, promotion, etc. Pride, self-esteem, etc.
Rewards Important Less important Supervision Evaluation Development Counseling
focus 33 Leadership & Team Management MGMT
623 VU Charismatic Leadership: Charismatic leaders have a combination of charm and personal
magnetism that contribute to a remarkable ability to get other people to endorse to their vision and promote it passionately. Charisma
Defined: Charisma has been defined various ways. Charisma is a Greek word meaning "divinely inspired
gift". In leadership, charisma is a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others. Charisma: A Relationship:Key to charismatic leadership is the interaction between leader and group members. Charismatic qualities must be attributed to the leader by group members and Charismatic leaders use impression management to cultivate their relationships
with group members. � Charismatic leadership theory is an extension of attribution theory. �
It says that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. � Several authors have attempted to identify personal characteristics of the charismatic leader. � Robert House has identified three: extremely high confidence, dominance, and strong convictions. � Warren Bennis found that they had four common competencies: they had a compelling vision or sense of purpose; they could communicate that
vision in clear terms that their followers could readily identify with; they demonstrated consistency and focus in the pursuit of their vision; and they knew their own strengths and capitalized on them. � Jay Conger and Rabindra Kanungo at McGill University--charismatic
leaders have an idealized goal that they want to achieve and a strong personal commitment to that goal; they are perceived as
unconventional; they are assertive and self-confident; and they are perceived as agents of radical change rather than as managers of the status quo. � There is an increasing body of research that shows impressive correlations between charismatic leadership and high
performance and satisfaction among followers. � Charismatic leadership may be most appropriate when the follower's task has an ideological component. � Second, charismatic leaders may be ideal for pulling an organization through a crisis but become a liability to an organization once the crisis and the need for dramatic change subside. Trait of a Charismatic Leader: Self-confidence A vision Strong conviction in that vision Out of the ordinary behavior The image of a change agent Followers feelings towards Charismatic Leaders � High Trust � Obedience � Emotional involvement � Satisfaction
� Self-esteem � Motivation � Belief in likeliness of success 34 Leadership & Team Management MGMT 623 VU Two Types of Charismatic Leaders: Visionary Leadership: � Visionary leadership goes beyond charisma. Visionary leadership is the ability
to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that
grows out of and improves upon the present. � A vision differs from other forms of direction setting in several ways:
� "A vision has clear and compelling imagery that offers an innovative way to improve, which recognizes and draws on traditions, and connects to actions that people can take to realize change." � Vision taps people's emotions and energy. � The key
properties of a vision seem to be inspirational possibilities that are value centered, realizable, with superior imagery and articulation. � Visions should be able to create possibilities that are inspirational, unique, and offer a new order that can produce organizational distinction. � Desirable visions fit the times and circumstances and
reflect the uniqueness of the organization. � People in the organization must also believe that the vision is attainable. Crisis-Based Charismatic Leaders: The crisis-produced charismatic leader communicates clearly what actions need to be taken and what their consequences will be in the crisis. Transformational v. Charismatic Leaders: Some
experts say yes, transformation and charismatic are same but emerging view is that: Charisma is distinct from
transformational leadership A personal trait that might help transform, or might just help the leader Charismatic leadership might have opposite
effect -- creates dependence, not empowerment 35
Table of Contents:
- INTRODUCTION, ORGANIZATION THE STAGE FOR LEADERSHIP:Challenges, Value creation
-
FOCUSING ON PEOPLE: THE KEY TO SUCCESS:People in the Process, Developing and Sustaining A World-class Workforce
- LEADERSHIP:Characteristics of Successful Leader, Why Study Leadership?
-
LEADERSHIP (CONTD.):Characteristics of Leaders Who Fail, Why Leaders Fail?
- MANAGERS VS LEADERS:Characteristics, Effective Leadership, Respect for Diversity
- FOLLOWER-SHIP:Importance of
Followers, Follower-ship Style
- LEADERSHIP PROCESS:Strategies for Cultivating Exemplary Followers, Important Traits of Leaders
- LEADERSHIP PROCESS (CONTD.):Qualities
of Leaders, Self-Confidence, Integrity
- LEADERSHIP THEORIES/ APPROACHES:Personal Characteristics of Leaders, Managerial Grid
- CONTINGENCY THEORIES
OF LEADERSHIP:The Fiedler Model, Situational Leadership Theory, Path-Goal Theory
- TRANSACTIONAL, CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP:Visionary Leadership
- THE LEADER AS AN
INDIVIDUAL:Personality, Situation, Heredity, Environment
- ATTITUDE-PERSONALITY:Job Satisfaction, Work Situation, Self - Monitoring
- BIG FIVE MODEL, MYERS BRIGGS TYPE
INDICATOR (MBTI):Sub-Categories Defined, Information Gathering
- SITUATIONAL FACTORS:Social and psychological climate, Culture of the organization
- BECOMING A
LEADER! WHAT DOES IT MEAN & HOW DO YOU GET IT?:Mission Statement, Leading oneself
- BECOMING A LEADER:Elements of Leadership, CONCEPT OF POWER,
- UNDERSTANDING POWER:Sources
of Power, Responses to the Use of Power, Managing Political Behavior
- LEADERSHIP POWER & INFLUENCE:Positional Power, Being an Effective Leader
- LEADERSHIP AND EMPOWERMENT:Power
sharing and Empowerment, Share Information
- MOTIVATION:Guidelines for Delegating, Human Resource Approach
- MOTIVATION AT WORK, MOTIVATION AND LEADERSHIP:What Factors Diminish
Motivation in the Workplace
- LEADERSHIP COMMUNICATION:Communication & the Four Management Functions
- REVIEW-1:Organizational Performance, That is the Role of Management?,
Leaders Vs Managers
- GROUP & TEAM CONCEPT:Groups versus Teams, Deciding When to Use a Team
- TEAM DYNAMICS:Stages of Group Development, Problem-Solving Teams, Benefits of Teams
- BUILDING THE TEAM:Leadership success requires, Strategies for Team Building
- A TEAM-BASED ORGANIZATION:Basic Steps, Span of Control, Categories of Decisions
-
DECISION MAKING:Categories of Decisions, The Decision-Making Process
- TEAM DECISION MAKING:Team Problem Solving Techniques, Concept of QC
-
EFFECTIVE TEAM COMMUNICATION:Team/Group Communications
- CONFLICT IN TEAM:Sources of Conflict, Scarcity of Resources, Dysfunctional Outcomes
-
TRAINING/LEARNING OF TEAM:Training Methods, Phases of Learning Cycles
- LEARNING ORGANIZATION:A Litmus Test, Work Relations
-
REWARDING & RECOGNIZING TEAMWORK:Compensating Teams, Individual or Team Rewards?
- MANAGING/LEADING VIRTUAL TEAMS:Communications in Virtual Organizations, Virtual Leadership
- EFFECTIVE TEAM MEETINGS:Better Meetings, Meeting Roles, Meeting Room Facilities
- LEADING TEAM:Team Leadership Structures, Leadership Demands and Duties,
Leadership Direction
- REVIEW-II:Types of Teams, Characteristics of High Performance Teams, Sources of Conflict
- STRATEGIC LEADERSHIP:Strategic
Management, Determining Strategic Direction, Developing Human Capital:
- LEADING CHANGE:Dynamics of Change, Change Models, Unfreeze
- CREATIVE LEADERSHIP:Awaken Your Senses, How Might These
Definitions Be Integrated
- ETHICS IN LEADERSHIP:Character Traits Reflect Ethics, Manifests Honesty
- LOOKING AT THE FUTURE: WHAT COMES NEXT:Benefits of Teams, Ethical Leadership,
- TEAMWORK: LEARNING FROM NATURE:Social Behavior, Termites, Learning from Nature
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