Chapter 9

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University of Guelph
Human Resources and Organizational Behaviour
HROB 2010
Casey Cosgrove

Chapter 9: Transformational Leadership Description • Transformational leadership is part of the “New Leadership” paradigm, which gives more attention to the charismatic and affective elements of leadership • Bass and Riggo (2006) suggested that transformational leadership popularity might be due to its emphasis on intrinsic motivation and follower development, which fits the needs of today's work groups, who want to be inspired and empowered to succeed in times of uncertainty • Transformational leadership is a process that changes and transforms people ◦ It is concerned with emotions, values, ethics, standards and long-term goals ◦ It includes assessing followers motives, satisfying their needs, and treating them as full human beings • Transformational leadership involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of themselves ◦ It is a process that often incorporates charismatic and visionary leadership • Transformational leadership can be used to describe a wide range of leadership, from very specific attempts to influence followers on a one-to-one level, to very broad attempts to influence whole organizations and even entire cultures Transformational Leadership Defined • Transformational leadership was first coined by Downton (1973) • Burns distinguished between two types of leadership: ◦ Transactional ◦ Trasnformational • Transactional leadership refers to the bulk of leadership models, which focus on the exchanges that occur between leaders and their followers ◦ Politicians who win votes by promising “no new taxes” are demonstrating transactional leadership ◦ Managers who offer promotions to employees who surpass their goals are exhibiting transactional leadership ◦ Teachers are being transactional when they give students a grade for work completed ◦ The exchange dimension of transactional leadership is very common and can be observed at many levels throughout all types of organization • Transformational leadership is the process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower ◦ This type of leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential ◦ Burns points to Mohandas Gandhi as a classic example of transformational leadership ◦ Gandhi raised the hopes and demands of millions of his people and in the process, was changed himself • Because the conceptualization of transformational leadership set forth by Burns (1978) includes raising the level of morality in others, it is difficult to use this term when describing leaders such as Adolf Hitler and Saddam Hussein, who are transforming but In a negative way. • Bass (1998) coined the term pseudotransformational leadership ◦ This term refers to leaders who are self-consumed, exploitive, and power oriented, with warped moral values ◦ Pseudotransformational leadership is considered personalized leadership. Which focuses on the leaders own interests rather than on the interests of others • Authentic transformational leadership is socialized leadership, which is concerned with the collective good • Socialized transformational leaders transcend their own interests for the sake of others • Zhu, Avolio, Riggoio and Sosik (2011) proposed a theoretical model examining how authentic transformational leadership influences the ethics of individual followers and groups ◦ The author hypothesize that authentic transformational leadership positively affect followers moral identities and moral emotions , in turn, leads to moral decision making and moral action by the followers ◦ The authors theorize that authentic transformational leadership is positively associated with group ethical climate, decision making, and moral action ◦ Research is needed to test the validity of the assumptions laid out in this model Transformational Leadership and Charisma • The word charisma was first used to describe a special gift that certain individuals possess that gives them the capacity to do extraordinary things • Weber (1947) provided the most well-known definition of charisma as a special personality characteristic that gives a person superhuman or exceptional powers and is reserved for a few, is of divine origin and results in the person being treated as a leader ◦ He put emphasis on charisma as a personality characteristic, he also recognized the important role played by followers in validating charisma in these leaders • In his theory of charismatic leadership, House suggested that charismatic leaders act in unique ways that have specific charismatic effects on their followers ◦ The personality characteristics of a charismatic leader include being dominant, having a strong desire to influence others, being self-confident and having a strong sense of one's own moral values • Charismatic leaders also demonstrate specific types of behaviors ◦ First, they are strong role models for the beliefs and values they want their followers to adopt ◦ For example, Gandhi advocated non-violence and was an exemplary role tent to followers ◦ LOOK AT TABLE 9.1 ◦ Charismatic leaders communicate high expectations for followers, and they exhibit confidence in followers abilities to meet these expectations ◦ The impact of this behavior is to increase followers sense of competence and self-efficacy, which in turn improves their performance ◦ Charismatic leaders arouse task- relevant motives in followers that may include affiliation, power or esteem • According to House's charismatic theory, several effects are the direct result of charismatic leadership ◦ They include follower trust in the leader's ideology, similarity between the followers beliefs and the leaders beliefs, unquestioning acceptance of the leader, expression of affection toward the leader, follower obedience, identification with the leader, emotional involvement in the leaders goals, heightened goals for followers and increased follower confidence in goal achievement ◦ House contends that these charismatic effects are more likely to occur in contexts in which followers feel distress because in stressful situations followers look to leader to deliver them from their difficulties • House's charismatic theory major revision was made by Shamir, House andArthur (1993) ◦ They postulated that charismatic leadership transforms followers self-concepts and tries to link the identity of followers to the collective identity of the organization ◦ Charismatic leaders forge this link by emphasizing the intrinsic rewards of work and deemphasizing the extrinsic rewards ◦ Leaders express high expectations for followers and help them gain a sense of confidence and self-efficacy ◦ Charismatic leadership works because it ties followers and their self-concepts to the organizational identity AModel of Transformational Leadership • Bass (1985) provided a more expanded and refined version of transformational leadership ◦ He extended Burn's work by giving more attention to followers rather than leaders need, by suggesting that transformational leadership could apply to situations in which the outcomes are not positive and by describing transactional and transformational leadership as a single continuum rather than mutually independent continua • Bass extended House's work by giving more attention to the emotional elements and origins of charisma and by suggesting that charisma is a necessary but not sufficient condition for transformational leadership • Bass argued that transformational leadership motivates followers to do more than expected by (a) raising followers levels of consciousness about the importance and value of specified and idealized goals, (b) getting followers to transcend their own self-interest for the sake of the team or organization, and (c) moving followers to address higher level needs • LOOK AT FIGURE 9.1 AND TABLE 9.2 • Transformational leadership produces greater effects than transactional leadership • Transactional leadership results in expected outcomes, transformational leadership results in performance that goes well beyond what is expected • Transformational leadership moves followers to accomplish more than what is usually expected of them ◦ They become motivated to transcend their own self-interests for the good of the group or organization ◦ Lowe, Kroeck, and Sivasubramaniam (1996) found that people who exhibited transformational leadership were perceived to be more effective leaders with better work outcomes than those who exhibited only transactional leadership • Rowold and Heinitz (2007) found that transformational leadership argumented the impact of transactional leadership on employees performance and company profit ◦ They found that transformational leadership and charismatic leadership were overlapping but unique constructs and that both were different from transactional leadership • Nemanich and Keller (2007) found that transformational leadership behaviors such as idealized influence, inspirational motivation, individualized consideration, and intellectually stimulation were positively related to acquisition acceptance, job satisfaction and performance • Tims, Bakker, and Xanthopoulou (2011) findings revealed that employees became more engaged in their work when their supervisors were able to boost subordinates optimism through a transformational leadership style ◦ These findings underscore the important role played by personal characteristics in the transformational leadership-performance process Transformational Leadership Factors • Transformational leadership is concerned with improving the performance of followers and developing followers to their fullest potential • People who exhibit transformational leadership often have a strong set of internal values and ideals, and they are effective at motivating followers to act in ways that support the greater good rather than their own self-interest Idealized Influence • Factor 1 is called charisma or idealized influence • It is the emotional component of leaderships • Idealized influence describes leaders who act as strong role models for followers; followers identify with these leaders and want very much to emulate them • These leaders usually have very high standards of moral and ethical conduct and can be counted on to do the right thing • They are deeply respected by followers, who usually place a great deal of trust in them • They provide followers with a vision and a sense of mission • Idealized influence factor is measured on two components: ◦ Attributional Component – Refers to the attributions of leaders made by followers based on perceptions they have of their leaders ◦ Behavioral Component – Refers to followers observations of leader behavior • The charisma factor describes people who are special and who make others want to follow the vision they put forward • LOOK AT FIGURE 9.2 Inspirational Motivation • Factor 2 is called inspiration or inspirational motivation • This factor is descriptive of leaders who communicate high committed expectation to followers, inspiring them through motivation to become committed to and a part of the shared vision in the organization • Leaders use symbols and emotional appeals to focus group member efforts to achieve more than they would in their own self-interest • Team spirit is enhanced by this type of leadership Intellectual Stimulation • Factor 3 is intellectual stimulation • It includes leadership that stimulates followers to be creative and innovative and to challenge their own beliefs and values as well as those of the leader and the organization • This type of leadership supports followers as they try new approaches and develop innovative ways of dealing with organizational issues • It encourages followers to think things out on their own and engage in careful problem solving • Example: Plant manager Individualized Consideration • Factor 4 is called individualized consideration • This factor is representative of leaders who provide a supportive climate in which they listen to carefully to the individual needs of followers • Leaders act as coaches and advisers while trying to assist followers in becoming fully actualized • May use delegation to help followers grow through personal challenges • Example:Amanager who spend time treating each employee in a caring and unique way Transactional Leadership Factors • Transactional leaders exchange things of value with subordinates to advance their own and their subordinates agendas • Transactional leaders are influential because it is in the best interest of subordinates for them to do what the leader wants Contingent Reward • Factor 5 called the contingent reward, is the first of two transactional leadership factors • It is an exchange process between leaders and followers in which efforts by followers is exchanged for specified rewards • With this kind of leadership, the leader tries to obtain agreement from followers on what must be done and what the payoffs will be for the people doing it Management-by- Exception • Factor 6 is called management-by-exception • It is leadership that involves corrective criticism, negative feedback and negative reinforcement • Management-by-exception takes two forms: ◦ Active ◦ Passive • Aleader using the active form of management-by-exception watches followers closely for mistakes or rules violations and then takes corrective action ◦ Example: Sales supervisor who daily monitors how employees approach customers. She quickly corrects salespeople who are slow to approach customers in the prescribed manner • Aleader using the passive form intervenes only after standards have not been met or problems have arisen ◦ Example: Supervisor who gives an employee a poor performance evaluation without ever talking with the employee about her or his prior work performance Non-Leadership Factor Laissez-Faire • Factor 7 describes leadership that falls at the far right side of the transactional-transformational leadership continuum • This factor represents the absence of leadership • This leader adbicates responsibility, delays decisions, gives no feedback, and makes little effort to help followers satisfy their needs • Example: The president of a small manufacturing firm who calls no meetings with plant supervisors, has no long-range plan for the firm, and makes little contact with employees Other Transformational Perspective Bennis and Nanus • They identified four c
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