1.
II. Charismatic Leadership and Transformational Leadership
A. Introduction
1. View leaders as individuals who inspire followers through their words, ideas, and
behaviors.
B. Charismatic Leadership
1. What is charismatic leadership?
they observe certain behaviors. (Exhibit 12-3)
c. General characteristics are they have vision, a sense of mission, are willing to take
2. Are charismatic leaders born and not made, made and not born?
a. Individuals are born with traits that make them charismatic.
generating enthusiasm.
ii. Speak in an animated voice, reinforce your message with eye contact and
facial expressions, and gesture for emphasis.
a bond that inspires them.
iv. Remember, enthusiasm is contagious!
v.
3. How charismatic leaders influence followers
a. Articulating an appealing vision.
i. Vision statement
ii. High performance expectations
iii. A new set of values
organization.
c. Some personalities are especially susceptible to charismatic leadership.50 For
instance, an individual who lacks self-esteem and questions his or her self-worth
way of leading or thinking.
i. For these people, the situation may matter much less than the charismatic
qualities of the leader.
4. Does effective charismatic leadership depend on the situation?
a. A strong correlation between charismatic leadership and high performance and
satisfaction among followers.
and uncertainty.
c. This may explain why, when charismatic leaders surface, it’s more likely to be in
politics, religion, wartime; or when a business firm is in its infancy or facing a
life-threatening crisis.
organization.
5. The dark side of charismatic leadership
a. Don’t necessarily act in the best interest of their companies.
stock prices and allow leaders to cash in millions of dollars in stock options.
c. It’s not that charismatic leadership isn’t effective; overall, it is.
C. Transformational Leadership
1. Introduction
a. A stream of research has focuses on differentiating transformational and
transactional leaders.
clarifying role and task requirements.
c. Transformational leaders inspire followers to transcend their own self-interests
for the good of the organization.
produces levels of follower effort and performance that go beyond what would
occur with a transactional approach alone. (Exhibit 12-4)
leadership alone can do.
e. The best leaders are transactional and transformational.
(primarily contingent reward) is more important for leader effectiveness and
follower job satisfaction.
2. Full range of leadership model (Exhibit 12-5)
c. Contingent reward leadership can be effective.
d. The remaining four correspond to transformational leadership:
i. Individualized consideration
ii. Intellectual stimulation
iii. Inspirational motivation
iv. Idealized influence
3. How transformational leadership works?
a. Overall, most research suggests that the reason transformational leadership works
is that it inspires and motivates followers.
and relatedness needs (see self-determination theory, Chapter 7).
b. Companies with transformational leaders also show greater agreement among top
managers about the organization’s goals, which yields superior organizational
performance.
group members.
4. Evaluation of transformational leadership
a. Transformational leadership has been impressively supported at diverse job levels
and occupations (school principals, teachers, marine commanders, ministers,
presidents of MBA associations, military cadets, union shop stewards, sales reps).
b. Transformational leadership isn’t equally effective in all situations.
i. It has a greater impact on the bottom line in smaller, privately held firms than
in more complex organizations.
ii. Furthermore, a great deal of research suggests that the stress and demands
surrounding the context affects whether or not transformational leadership
improves health outcomes and work engagement (see Chapter 3).
iii. Transformational leaders can also help reduce emotional exhaustion and
improve perceptions of work-life balance in German IT professionals when
the time pressures are high.
iv. Transformational leadership may be most effective when leaders can directly
interact with the workforce and make decisions than when they report to an
external board of directors or deal with a complex bureaucratic structure.
c. The characteristics of the leader and the followers may also matter for how
effective transformational leadership is as well.
performance.
ii. Another study suggests that IQ is important for transformational leadership
perceptions—leaders who are “too intelligent” may be less transformational
because their solutions may be too “sophisticated” to understand, use complex
forms of communication that undermine their influence, and may be seen as
too “cerebral.”
D. Transformational versus Transactional Leadership
research suggests that transformational leadership is highly related to contingent
reward leadership, to the point of being redundant.
3. Contrary to the full range of leadership model, the four I’s of transformational
leadership are not always superior in effectiveness to transactional leadership;
E. Transformational versus Charismatic Leadership
1. Charismatic leadership places somewhat more emphasis on the way leaders
communicate (are they passionate and dynamic?), while transformational leadership
focuses more on what they are communicating (is it a compelling vision?).
2. Still, the theories are more alike than different. At their heart, both focus on the
III. Responsible Leadership
A. What Is Authentic Leadership?
1. Authentic leaders know who they are, and what they believe in and value, and act on
those values and beliefs openly and candidly.
2. Their followers consider then ethical people and trust them as a result.
B. Ethical Leadership
1. Ethical top leadership influences not only direct followers, but spreads all the way
down the command structure as well, because top leaders set expectations and expect
lower-level leaders to behave along ethical guidelines.
2. Leaders rated as highly ethical tend to be very positively evaluated by their
experience less strain and turnover intentions.
3. Ethical leaders can change norms: one reason why employees engage in more OCBs
and less CWBs is because their perceptions on whether each is equitable (see equity
theory, Chapter 7) become altered, so that OCBs are perceived as more equitable.
4. Ethical leaders also increase group awareness of moral issues, increase the extent to
concern for others.
5. Research also found that ethical leadership reduced interpersonal conflicts.
6. Efforts have been made to combine ethical and charismatic leadership into an idea of
socialized charismatic leadership—leaders convey values that are other-centered
versus self-centered and who role-model ethical conduct.
C. Servant Leadership
1. Scholars have recently considered ethical leadership from a new angle by examining
servant leadership.
a. Servant leaders go beyond their own self-interest and focus on opportunities to
help followers grow and develop.
b. They don’t use power to achieve ends; they emphasize persuasion.
c. Characteristic behaviors include listening, empathizing, persuading, accepting
stewardship, and actively developing followers’ potential.
2. Because servant leadership focuses on serving the needs of others, research has
focused on its outcomes for the well-being of followers.
3. What are the effects of servant leadership?
a. A study of supervisors71 general managers of restaurants in the United States and
over 1,000 of their employees found that servant leaders tend to create a culture of
service (see Chapter 16), which in turn, improves the restaurant performance and
enhances employee attitudes and performance by increasing their identification
with the restaurant..
b. Second, there is a relationship between servant leadership and follower OCB that
appears to be stronger when followers are encouraged to focus on being dutiful
and responsible.
c. Third, servant leadership increases team potency (a belief that your team has
above-average skills and abilities), which in turn leads to higher levels of team
performance.
d. Fourth, a study with a nationally representative sample found higher levels of
citizenship associated with a focus on growth and advancement, which in turn
was associated with higher levels of creative performance.
4. Servant leadership may be more prevalent and more effective in certain cultures.
a. When asked to draw images of leaders, U.S. subjects tend to draw them in front of
the group, giving orders to followers.
b. Singaporeans tend to draw leaders at the back of the group, acting more to gather
a group’s opinions together and then unify them from the rear.
IV. Positive Leadership
A. Trust and Leadership
1. Trust is a psychological state that exists when you agree to make yourself vulnerable
to another because you have positive expectations about how things are going to turn
out.
abused.
a. Transformational leaders create support for their ideas in part by arguing that their
direction will be in everyone’s best interests.
b. People are unlikely to look up to or follow someone they perceive as dishonest or
likely to take advantage of them.
team-based work style mean employment relationships are not stable long-term
contracts with explicit terms.
b. Rather, they are more fundamentally based on trusting relationships than ever
before.
your performance appraisal.
e. In contemporary organizations, where less work is closely documented and
specified, voluntary employee contribution based on trust is absolutely necessary.
f. And only a trusted leader will be able to encourage employees to reach beyond
themselves to a transformational goal.
B. The Outcomes of Trust
1. Trust encourages taking risks.
2. Trust facilitates information sharing.
a. One big reason employees fail to express concerns at work is that they don’t feel
psychologically safe revealing their views.
3. Trusting groups are more effective.
a. When a leader sets a trusting tone in a group, members are more willing to help
4. Trust enhances productivity.
a. The bottom-line interest of companies also appears positively influenced by trust.
Employees who trust their supervisors tend to receive higher performance ratings.
C. Trust Development
1. Trust isn’t just about the leader; the characteristics of the followers will also influence
the development of trust.
in assessing another’s trustworthiness.
b. Benevolence means the trusted person has your interests at heart, even if yours
aren’t necessarily in line with theirs.
c. Ability encompasses an individual’s technical and interpersonal knowledge and
skills.
D. Trust Propensity
aren’t trustworthy, will find employees are less satisfied and less committed, have
higher intentions to turnover, engage in less citizenship behavior, and have lower task
performance.
E. Trust and Culture
workgroup.
F. The Role of Time
1. Time is the final ingredient in the recipe for trust. Trust doesn’t happen immediately:
we come to trust people based on observing their behavior over a period of time.
2. Trust can also be won in the ability domain simply by demonstrating competence.
G. Regaining Trust
task performance.
2. Leaders who betray trust are especially likely to be evaluated negatively by followers
if there is already a low level of leader–member exchange.
3. Once it has been violated, trust can be regained, but only in certain situations and
depending on the type of violation.
should have done better.
b. When lack of integrity is the problem, apologies don’t do much good.
4. Regardless of the violation, saying nothing or refusing to confirm or deny guilt is
never an effective strategy for regaining trust.
5. Trust can be restored when we observe a consistent pattern of trustworthy behavior by
H. Mentoring
1. A mentor is a senior employee who sponsors and supports a less-experienced
employee (a protégé).
2. Successful mentors are good teachers.
a. They present ideas clearly, listen well, and empathize with protégés’ problems.
(Exhibit 12-7)
b. Traditional informal mentoring relationships develop when leaders identify a less
experienced, lower-level employee who appears to have potential for future
development.
3. The protégé will often be tested with a particularly challenging assignment.
formal structures and procedures.
4. If a mentor is not well connected or not a very strong performer, the best mentoring
advice in the world will not be beneficial.
a. Research indicates that while mentoring can have an impact on career success, it
is not as much of a contributing factor as ability and personality.