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VII. CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP
Research has found that some leadership approaches are more effective than others for bringing
about change in organizations. Two types of leadership that can have a substantial impact are
charismatic leadership and transformational leadership. These are best understood in comparison
to transactional leadership.
A. Charismatic Leadership
1. The charismatic leader has the ability to inspire and motivate people to do more than
they would normally do, despite obstacles and personal sacrifice.
2. The impact of charismatic leaders normally come from:
a. stating a lofty vision of an imagined future that employees identify with
B. Transformational versus Transactional Leadership
1. Transformational leaders are distinguished by their special ability to bring about
2. Transformational leaders create significant change in both followers and the
organization. They have the ability to lead changes in the organization’s mission,
3. Studies show that transformational leadership has a positive impact on follower
development and follower performance. Transformational leadership skills can be
learned and are not ingrained personality characteristics.
4. Transactional leaders clarify subordinates’ role and task requirements, initiate
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Discussion Question #6: What is transformational leadership? Give examples of organizational
situations that would call for transformational, transactional, or charismatic leadership.
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VIII. FOLLOWERSHIP Exhibit 15.10
Many of the qualities that define a good leader are the same qualities as those possessed by a
good follower. One model of followership involves five follower styles, categorized according
to two dimensions.
A. The first dimension is the quality of independent, critical thinking versus dependent,
uncritical thinking. Independent critical thinkers are mindful of the effects of their own
B. The second dimension is active versus passive behavior. An active follower participates
fully in the organization, engages in behavior that is beyond the limits of the job,
C. The combinations of critical thinker/uncritical thinker and active/passive behavior result
in five types of followers.
1. The alienated follower is a passive but independent, critical thinker. Alienated
employees are often effective followers who have experienced setbacks and
obstacles, perhaps promises broken by their superiors.
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5. The effective follower is both a critical, independent thinker and active in the
organization. Effective followers behave the same toward everyone, regardless of
their position in the organization.
IX. POWER AND INFLUENCE
Power is the potential ability to influence the behavior of others. Influence is the effect of a
person’s actions on the attitudes, values, beliefs, or behavior of others. Power is the capacity to
A. Position Power
1. The traditional manager’s power comes from the organization. The manager’s
position gives him or her power to reward or punish subordinates to influence
behavior. Examples of position power include:
a. Legitimate power comes from a formal management position in an organization
and the authority granted to it. Subordinates accept this source of power as
legitimate, which is why they comply.
B. Personal Power
1. Personal power often comes from internal sources, such as a person’s special
knowledge or personality. Examples of personal power include:
a. Expert power results from a leader’s special knowledge or skill regarding the
tasks performed by followers.
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Discussion Question #4: Suggest the sources of power that would be available to the leader of a
student government organization. What sources of power may not be available? To be effective,
should student leaders keep power to themselves or delegate power to other students?
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C. Other Sources of Power
1. Personal effort results in gaining power when people show initiative, work beyond
what is expected of them, take on undesirable but important projects, and show
interest in learning about the organization and industry.
D. Interpersonal Influence Tactics
1. Leaders often use a combination of influence strategies, and people who are
perceived as having greater power and influence typically are those who use a wider
variety of tactics. There are seven principles for asserting influence.
a. Use rational persuasion. Use facts, data, and logical argument to persuade others.
Answers to End-of-Chapter Discussion Questions
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1. Suggest some personal traits that you believe would be useful to a business leader today.
Are these traits more valuable in some situations than in others? How do you think traits
differ from strengths?
Students may mention good communication, human relations skills, or other traits as being
2. In a study asking what people wanted from leaders versus followers, people ranked maturity
number 8 for followers, but number 15 for leaders. What might account for people wanting a
higher maturity level from followers?
We don’t know what other characteristics were included in the study, so it may be that people
didn’t necessarily value maturity less in leaders than in followers; rather, they may simply have
3. If a male manager changes his behaviors to incorporate elements of interactive leadership
more common to female managers, can he still be an “authentic” leader? Discuss.
Authentic leadership refers to individuals who know and understand themselves, who espouse
and act consistently with higher-order ethical values, and who empower and inspire others with
4. Suggest the sources of power that would be available to the leader of a student government
organization. What sources of power may not be available? To be effective, should student
leaders keep power to themselves or delegate power to other students?
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5. What skills and abilities does a manager need to lead effectively in a virtual environment?
Do you believe a leader with a consideration style or an initiating-structure style would be
more successful as a virtual leader? Explain your answer.
The point of this question is that no one style is preferable to another. Consideration is the extent
to which the leader respects subordinates’ ideas and feelings, provides open communication,
6. What is transformational leadership? Give examples of organizational situations that would
call for transformational, transactional, or charismatic leadership.
Transformational leadership goes beyond the traditional ideas for influencing people.
Transformational leaders can motivate people beyond what is normally expected. They motivate
people to transcend their own interests for the sake of the organization. They have a special
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7. How does Level 5 leadership differ from the concept of servant leadership? Do you believe
anyone has the potential to become a Level 5 leader? Discuss.
A Level 5 leader is one that builds an organization with many strong leaders who can step
forward and continue the company’s success. These leaders want everyone in the organization
to develop to their fullest potential. Servant leadership in the new workplace is the best leaders
operate from the assumption that work exists for the development of the worker as much as the
8. Why do you think so little attention is given to followership compared to leadership in
organizations? Discuss how the role of an effective follower is similar to the role of a leader.
Students’ opinions about why little attention is given to followership will vary. One reason
9. Do you think leadership is more important or less important in today’s flatter, team-based
organizations? Are some leadership styles better suited to such organizations as opposed to
traditional hierarchical organizations? Explain.
Leadership is more important in a flatter organization structure. The rationale is that leadership
requires new styles for different cultures, workforce diversity, and different employee needs. A
10. Consider the leadership position of a senior partner in a law firm. What task, subordinate,
and organizational factors might serve as substitutes for leadership in this situation?
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Macro variables such as formalization, inflexibility, and physical separation probably would not
be typical of a law firm. Moreover, task characteristics typically are not highly structured.
Apply Your Skills: Experiential Exercise
What Is the Impact of Leadership?
The questions in this exercise relate to the “romance” of leadership, which is the romantic view
Apply Your Skills: Small Group Breakout
Which Leadership Styles Are More Effective?
Students are asked to think about a situation in which a formal or informational leader was
Apply Your Skills: Ethical Dilemma
Too Much of a Good Thing?
1. Tell Carolyn Clark that employee volunteerism is important to the company and that while
her performance evaluation will not be affected by her decision, she should consider helping
Harris because it is an opportunity to help a worthy community project.
Although this is probably good advice for Carolyn Clark, it does not deal with the issue of
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2. Tell Darius Harris that the employee volunteer program is just that: a volunteer program.
Even though the company sees volunteerism as an important piece of its campaign to repair
its tarnished image, employees must be free to choose whether to volunteer. He should not
ask for the help of his direct reports with the after-school program.
This is probably the best course of action. As far as we know, Harris has not done anything like
3. Discipline Darius Harris for coercing his subordinates to spend their own time on his
volunteer work at the community after-school program. This action will send a signal that
coercing employees is a clear violation of leadership authority.
This approach may be a little too harsh. There is no indication that Harris has engaged in this
Apply Your Skills: Case for Critical Analysis
“What’s Wrong With the Team?”
1. How would you characterize Rankin’s leadership style? What approach do you think is
correct for this situation? Why?
Rankin’s leadership style can be characterized as task-oriented. Task-oriented behavior is the
extent to which the leader directs subordinate work activities toward goal attainment. Leaders
2. What would you do now if you were Rankin? How might you awaken more enthusiasm in
your team for completing this project on time? Suggest specific steps.
Two types of leadership that can have a substantial impact to awaken more enthusiasm in the
The charismatic leader has the ability to inspire and motivate people to do more than what they
would normally do, despite obstacles and personal sacrifice. Following are some of the ways that
Rankin can engage in to be a charismatic leader:
a. Stating a lofty vision of an imagined future that employees identify with
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b. Displaying an ability to understand and emphasize with followers
Transformational leaders are distinguished by their special ability to bring about innovation and
change. They recognize followers’ needs and concerns, help them look at old problems in new
ways, and encourage them to question the status quo. Transformational leaders create significant
3. How would you suggest that Rankin modify his leadership style if he wants to succeed Dyer
in two years? Be specific.
Rankin can succeed Dyer in two years if he modifies his leadership style. Learning
On the Job Video Case Answers
Camp Bow Wow
1. Does Camp Bow Wow CEO Heidi Ganahl possess qualities associated with contemporary
leadership?
Heidi Ganahl possesses many qualities associated with contemporary leadership, including
humility, lack of ego, a focus on organizational growth, and a desire to help others achieve
2. In what way is Heidi Ganahl’s leadership charismatic and visionary? Give examples.
Heidi Ganahl is driven by her passion for dogs, and she has a clear, well-articulated vision of
what she wants Camp Bow Wow to become in the future. These qualities are inspirational to the
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3. Where does Heidi Ganahl’s leadership fall on the Leadership Grid discussed in the chapter?
Explain.
Heidi Ganahl is driven to achieve performance results (high concern for production), yet she is