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Part 4: Focus on the Situation
Chapter 14: Leadership and Change
Leader
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Chapter 14 Outline
Leadership and Change
Introduction
The Rational Approach to Organizational Change
Dissatisfaction
Model
Leader Characteristics
Vision
Rhetorical skills
Image and trust building
Personalized leadership
Follower Characteristics
Identification with the leader and the vision
Situational characteristics
Crises
Social Networks
Other situational characteristics
Concluding Thoughts about the Characteristics of Charismatic and Transformational Leadership
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Key Learning Points
Introduction
Organizations today face myriad potential challenges. To be successful they must cope effectively
The Rational Approach to Organizational Change
This is a systematic approach to change that maintains that the amount of change (C) is a function of
The Emotional Approach to Organizational Change: Charismatic and Transformational
Leadership
Although the rational approach provides a straightforward model for organizational change, it seems
that many large-scale political, societal, or organizational changes were not this formulaic. Rather,
Leader, Follower, and Situational Characteristics
All charismatic leaders have exceptional rhetorical skills, are able to build trusting, one-on-one
Concluding Thoughts about the Characteristics of Charismatic and Transformational
Leadership
Charismatic leadership is most fully understood when we also consider how leader and situational
factors affect this attribution process. Second, it seems unlikely that all the characteristics of
Bass’s Theory of Transformational and Transactional Leadership
Much of what we know about the leader, follower, and situational characteristics associated with
charismatic or transformational leaders comes from research on Bass’s theory of transformational
and transactional leadership. The theory postulates two fundamentally different (although not
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Brief Definitions of the Key Terms for Chapter 13
C = D × M × P > R: A framework for understanding the rational approach to large-scale change.
Dissatisfaction: The level of satisfaction or dissatisfaction with the current situation (D).
Expectation-performance gap: The difference between initial expectations and reality
SARA Model: A framework that predicts four different stages or reactions to change.
Adaptive leadership: Behaviors associated with being able to successfully flex and adjust to changing
situations.
Learning agility: The capability and willingness to learn from experience and apply these lessons to new
Reframing: Describing issues in such a way where followers can take action to resolve them.
Vision: A compelling picture of the future.
Rhetorical skills: Speaking and writing skills that heighten followers’ emotional levels.
Image: Transformational leaders project an aura of unshakable confidence and conviction.
Build trust: Transformational leaders are able to build trusting relationships with followers.
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Time: Most important, but often overlooked situational variable affecting charismatic leadership.
Theory of Transformational and Transactional Leadership: A theory of leadership that defines the
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Overview of the Learning Resources for Chapter 14
Exercise 14-1: Exploring the Rational Approach to Organizational Change. In this exercise,
student teams apply the C = D × M × P > R model to a major school or community change
initiative and then spend 10 minutes presenting the results of their findings in class.
Exercise 14-2: Tucker. In this exercise, students watch the movie Tucker as a homework
Exercise 14-4: Finger Ring. This 10-minute exercise is designed to demonstrate the power of
mental imaging.
Exercise 14-5: Force Field Analysis. Students are given a 15-minute lecture on force field
Exercise 14-6: Tower Building. In this 25-minute experiential exercise, small groups are asked to
Exercise 14-7: The Hollow Square. This 40-minute experiential exercise demonstrates the
importance of having a clear vision and well-communicated change plans.
Case Studies: The minicase, “Keeping Up with Bill Gates,” at the end of Chapter 14 provides
good material to discuss the leader-follower-situational factors associated with charismatic or
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Sample Lesson Plans for Chapter 14
Lesson 1: 60 minutes
Pre-work: None
Lesson Plan:
• Start the class with Exercise 14-6: Tower Building. Do the debriefing around the
Lesson 2: 60 minutes
Pre-work: Exercise 14-2: Tucker. Ask students to watch the movie as a homework assignment.
Lesson Plan:
• Spend the first 30 minutes showing clips from the movie Tucker to demonstrate the
Lesson 3: 60 minutes
Pre-work: None
Lesson Plan:
• Spend the first 40 minutes doing The Hollow Square Exercise.
Chapter 14 – Leadership and Change
Minicase, “Keeping Up with Bill Gates,” Sample Answers
Question 1: Would you classify Bill Gates as a charismatic or transformational leader?
Why?
Charismatic leaders: Passionate, driven individuals who are able to paint a compelling vision of
the future.
Key questions: Role of his leadership abilities? Role of the followers? Role of the situation?
Leader: Gates definitely had a vision of what the personal computer could be. His
motives/values of drive, hard work, ambition, and competitive nature all aided in creating and
sharing the vision as well as building trust and rapport with his employees. Although his style
The Litmus Test for Transformational Leadership: Do the changes advocated by the leader
advance or hinder the development of the organization or society?
One might argue that the changes pushed by Gates and Microsoft have advanced both the
organization and society—think about the societal changes that have occurred as a result of
In this case, Bill Gates can be considered both charismatic and transformational.
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Question 2: Consider the followers/employees of Gates. What are some of the unique
characteristics of Gates’s followers that might identify him as charismatic or
transformational?
Note to instructors: It is suggested by many researchers that charisma is in the eye of the
beholder (or in this case the employees of Gates). Listed below are the key follower elements in
Identification with the leader: Strong affection for the leader and similarity of values and
beliefs.
Employees were selected right out of college based on some key values (drive, ambition,
Heightened emotional levels: Ability to stir followers’ feelings which often leads to higher
levels of effort and performance.
Creating an environment of competition and tight deadlines (a crisis) were tools Gates used
Willing subordination: Willing deference to the leader’s authority.
No doubt this was happening at Microsoft; programmers competed with themselves because
Feelings of empowerment: Making followers feel powerful and able to do their jobs without
any threat to the leader’s status.
Gates set high expectations for his employees and definitely conveyed the message that he
expected them to meet the goals—he leveraged the Pygmalion Effect. However, it is unclear
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Chapter 14 Exercises & Instructions
Exercise 14-1
Exercise Title: Exploring the Rational Approach to Organizational Change
Purpose: To apply the C = D × M × P > R model to an organizational change initiative.
Summary: Students form small teams, and then each team is asked to apply the C = D × M × P > R
model to an organizational change initiative. These initiatives might involve major changes at the school,
• What was the change plan?
• What sources of resistance did the leaders need to overcome?
• What were the results? Did the change initiative “work”?
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Exploring the Rational Approach to Change
Presentation Preparation Sheet
Team members:
Change initiative explored:
Key questions to be addressed in the 10-minute presentation:
• What was the change initiative and why is it important?
• What was the change plan?
Exercise 14-2
Exercise Title: Tucker
Purpose: To use the film Tucker to illustrate various aspects of charismatic or transformational
leadership.
Summary: This is a true story about how Preston Tucker developed an automobile which was one of the
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“establishment” companies. Here are a few examples from the film which illustrate different aspects of
charismatic leadership:
Leader characteristics: Charismatic leaders are typically very effective communicators whose
leadership is also extremely personalized; charismatic leaders touch the hearts and minds of their
followers. In the film, one of Tucker’s chief assistants says, “We’re not just selling cars—we’re selling
you.”
Empowering followers: Charismatic leaders convey high expectations to their followers and make
them feel capable of great things. Soon after Tucker decides to develop a new kind of car, a young
man just out of the Army accosts Tucker, hoping to join the team. Tucker is hurrying to a meeting and
the two talk only for a few moments as Tucker walks by. Tucker seems relatively uninterested until
he sees the young man’s motivation. As Tucker gets into his own car, the young man calls out, “What
about my job?” Tucker answers, “You got it.” The man asks, “In the design department?” Tucker