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self-direction, and teams exchange activities for the purpose of improving performance. At External rewards incentives outside anindividual that motivatehim or her to perform,such as money, gifts, orthreat of punishmentfor nonperformanceInternal rewards feelings that arise out ofperforming an activitythat motivate an indi-vidual to perform, such asthe enjoyment that comesfrom creating a work ofart or playing a sportCharismaleadership charm thatprovokes strong emo-tions and loyalty infollowersC h a p t e r3 :T r a n s f o r m a t i o n a lL e a d e r s h i pM a x i m i z e sS t r a t e g i cP l a n n i n g5 9
6 0E s s e n t i a l so fS t r a t e g i cP l a n n i n gi nH e a l t h c a r ethe top of the hierarchy is the transformational leadershipstyle, which empowers the group and heightens subordinates’ awareness of the organization’s vision, mission, values, and goals and the role of these factors in the organization’s strategy. Higher strategic awareness can lead to increased moraleand greater productivity.Transformational leadership originates from Maslow’s hierarchy of needs (see Highlight 3.2), incorporating esteem, autonomy, and self-actualization. Specifically, trans-formational leaders are believed to motivate followers in three ways. First, transformational leaders motivate their followers by making them more aware of the importance of the outcomes of the tasks they complete (esteem) and empowering them to promote change (autonomy). Second, transformational leaders encourage their followers to think and act beyond their self-interest to meet organizational goals. Third, transformational leaders foster an environment of team decision making in which individuals work together to improve organizational performance (Bass 1985; Burns 1978).The transformational leadership approach is considered highly effective in situa-tions—whether they be organizational, political, economic, or social—in which followers Moralepositive emotions andsense of common pur-pose among membersof a groupEXHIBIT3.3The.Transformational.Leadership.Model• Team has strategic awareness• Superordinate goals• Employee empowerment• Team decision making• Focus on quality• Aligns vision and goals• We-ness vs. I-ness, putting others above self• Increases morale• Maximizes productivity• Cooperative relationship with employees• Consult with employees on decisions• Goal consensus• Leading and coaching• Job enrichment• Shared values• Role modelingTransformingParticipatingDelegatingDirecting• Growing commitment tovision• Team autonomy• Leader mentoring• Provides resources for success• Provides feedback• Measures performance• Team-enhanced motivation• Derived from command authority• High dependence on leader guidance• Task related • Supervision• Unidirectional control • Meet short-range goals• Working knowledge of internal and external environment• Good communication skills
are frustrated, stressed, or unhappy with the current state of affairs (Howell and Costley 2000). It is also effective in crisis situations. If an individual is able to emerge from the