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Chapter 11

Excite arouse inspire followers to exert extra effort

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excite, arouse, inspire followers to exert extra effort to achieve group goals Charismatic leadership = …critically examines status quo w/ a view to developing & articulating future strategic goals or vision for the org, and then leading org. members to achieve these goals thru empowering strategies - all charismatic leaders are transformational, BUT NOT all transformational leaders are charismatic - transformational leadership produces levels of employee effort & performance that go beyond what would occur w/ transactional approach Transactional Leader Transformational Leader - 7 -
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P ART 4: S HARING THE O RGANIZATIONAL V ISION Contingent rewards: contract exchange of rewards for effort, promise rewards for good performance, recognize accomplishments Charisma : provide vision & sense of mission, instill Management by exception (active): watch & search for deviations from rules & standards, take corrective action Inspiration: communicate high expectations, use symbols to focus efforts, express important purposes in simple ways Management by exception (passive): intervene only if standards not met Intellectual stimulation: promote intelligence, rationality, careful problem solving Laissez-faire: abdicate responsibilities, avoid making decisions Individualized consideration: give personal attention, treat each employee individually, coach, advise Sharing a Vision - articulate vision: key component of transformational & charismatic leadership - vision: inspirational possibilities that are value-centred and realizable, w/ superior imagery & articulation coffer new order that can produce org. distinction fail if it doesn’t offer view of future that’s better for org - ppl in org must believe that the vision is challenging yet doable RESEARCH: Impact of charismatic / transformational leadership: Company Performance - visionary companies performed better - transformational leaders had higher business unit performance results - charismatic leaders led more profitable companies Individual Performance - ppl working for charismatic leaders are motivated to exert extra work effort & more satisfied - transformational leaders are more strongly correlated than transactional leadership w/ lower turnover rates, higher productivity, higher employee satisfc’n, stronger bonds of loyalty - charismatic leadership had greater impact on team performance than individual performance Transformational Leadership Styles Across Cultures - charismatic leadership is similar in many countries (Canada, Hungary, India, Singapore…) - leaders all used visioning, coaching, stimulating (encourage new ideas) - US leaders more likely to correct employees’ behaviour than Far Eastern or Latin - Americans used team building more often than Asian s - Far Eastern less likely to include recognition as part of encouragement strategy than S. European Downside of Charismatic Leadership - charismatic leader may become a liability to an org, thus: may be unable to listen to others - 8 -
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P ART 4: S HARING THE O RGANIZATIONAL V ISION may become uncomfortable when challenged by aggressive employees
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