Leadership Styles:Leadership Styles:Transformational LeadershipTransformational Leadership

PRINCIPLEPRINCIPLE

USE __________ LEADERSHIP STYLE USE __________ LEADERSHIP STYLE FOR LEADERSHIP EFFECTIVENESS FOR LEADERSHIP EFFECTIVENESS

To be decidedTo be decided

©2010 Alex Stajkovic

The Path of Leadership The Path of Leadership Transition & Development Transition & Development

Laissez-faireLaissez-faire

LeadershipLeadership

TransactionalTransactional

LeadershipLeadership

TransformationalTransformational

LeadershipLeadership

Hands-offHands-off UltimateUltimate

©2010 Alex Stajkovic

The Path of Leadership Transition/DevelopmentThe Path of Leadership Transition/Development

Laissez-faireLaissez-faire Transactional Transactional managementmanagement

TransformationalTransformational

LeadershipLeadership

Hands-offHands-off UltimateUltimate

©2010 Alex Stajkovic

The Three Fundamental StylesThe Three Fundamental Styles

Laissez-FaireLaissez-FaireUsually results in Usually results in nono (productive) outcomes (productive) outcomes

TransactionalTransactionalResults in Results in expectedexpected outcomes outcomes

Transformational LeadershipTransformational LeadershipResults in Results in above and beyondabove and beyond outcomes outcomes

©2010 Alex Stajkovic

Add-on effect of transformational leadershipAdd-on effect of transformational leadership

Transactional Transactional approachapproach

Current state of expected subordinate effort

Heightened motivation to attain designated outcome (extra effort)

Normal expected subordinate performance

Subordinate performance beyond normal expectations

Transformational Transformational LeadershipLeadership

©2010 Alex Stajkovic

TRANSFORMATIONALTRANSFORMATIONAL LEADERSHIPLEADERSHIP

IDEALIZED INFLUENCE +

INDIVIDUALIZED CONSIDERATION +

INSPIRATIONAL MOTIVATION +

INTELLECTUAL STIMULATION

TRANSACTIONAL LEADERSHIP

MANAGEMENT BY EXCEPTION

CONTINGENT REWARD

+

EXPECTED OUTCOMES

PERFORMANCE PERFORMANCE BEYOND BEYOND

EXPECTATIONSEXPECTATIONS

©2010 Alex Stajkovic

Transactional Style, Factor 1Transactional Style, Factor 1

CONTINGENT REWARDINGCONTINGENT REWARDINGby applying the principles ofby applying the principles of

Positive Reinforcement Positive Reinforcement

Refers to an exchange process between leaders Refers to an exchange process between leaders and followers in which efforts by followers is and followers in which efforts by followers is

exchanged for specified rewardsexchanged for specified rewards

©2010 Alex Stajkovic

Video Example, Contingent RewardingVideo Example, Contingent Rewarding

Pros: _____________________ _____________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________ __________________________________________

Cons: _____________________ _____________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________ __________________________________________

©2010 Alex Stajkovic

Transactional Style, Factor 2Transactional Style, Factor 2

MANAGEMENT BY EXCEPTIONMANAGEMENT BY EXCEPTIONby applying the principles ofby applying the principles of

Negative Reinforcement Negative Reinforcement and and PunishmenPunishmentt

A-priori (proactive)A-priori (proactive)

Post-hoc (retroactive)Post-hoc (retroactive)

©2010 Alex Stajkovic

Video Example, Management by ExceptionVideo Example, Management by Exception

Pros: _____________________ _____________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________ __________________________________________

Cons: _____________________ _____________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________ __________________________________________

©2010 Alex Stajkovic

What Do What Do Transformational LeadersTransformational Leaders Do Do to Win the Hearts and Minds to Win the Hearts and Minds

of the Followers?of the Followers?

©2010 Alex Stajkovic

Transformational Leadership Factors - ITransformational Leadership Factors - I

CHARISMA CHARISMA

or IDEALIZED INFLUENCEor IDEALIZED INFLUENCE

The charisma factor describes leaders who The charisma factor describes leaders who are are ““specialspecial”” and who make others want and who make others want

to follow the vision they put forward.to follow the vision they put forward.

Charisma & Charismatic LeadersCharisma & Charismatic Leaders

Charisma = Charisma = ““GiftGift””

““CHARISMA DESCRIBES LEADERS WHO BY FORCE OF THEIR CHARISMA DESCRIBES LEADERS WHO BY FORCE OF THEIR

PERSONAL ABILITIES ARE CAPABLE OF HAVING PROFOUND PERSONAL ABILITIES ARE CAPABLE OF HAVING PROFOUND

AND EXTRAORDINARY EFFECTS ON FOLLOWERSAND EXTRAORDINARY EFFECTS ON FOLLOWERS””

Charismatic leaders are those whoCharismatic leaders are those who ““reveal a transcendent reveal a transcendent

Mission or course of action which may be in itself Mission or course of action which may be in itself

Appealing to the potential followers, but which Appealing to the potential followers, but which

Is acted upon because the followers believe Is acted upon because the followers believe

Their leader is extraordinarily giftedTheir leader is extraordinarily gifted”” (Max Weber, 1947, p. 358)

Learning about Learning about Charismatic LeadershipCharismatic Leadership

• What are the Personal Characteristics of What are the Personal Characteristics of Charismatic Leaders?Charismatic Leaders?

• What are the Behaviors of Charismatic What are the Behaviors of Charismatic Leaders?Leaders?

• What are the Effects of Charismatic What are the Effects of Charismatic Leadership on Followers?Leadership on Followers?

Charisma – Value Neutral?Charisma – Value Neutral?

Is Charisma Value Neutral?Is Charisma Value Neutral?

Ethical vs. Unethical Charismatic LeadersEthical vs. Unethical Charismatic Leaders

What do Ethical Charismatic Leaders Do?What do Ethical Charismatic Leaders Do?

What do Unethical Charismatic Leaders Do?What do Unethical Charismatic Leaders Do?

©2010 Alex Stajkovic

Transformational Leadership Factors - IITransformational Leadership Factors - II

VISIONVISION

Or INSPIRATIONAL MOTIVATIONOr INSPIRATIONAL MOTIVATION

Leaders communicate high expectations to Leaders communicate high expectations to followers, inspiring them to become followers, inspiring them to become

committed to a shared vision.committed to a shared vision.

VisionsVisions

““I have a dream …I have a dream …””

““Ask not what your country can do for you. Ask not what your country can do for you. Ask what you can do for your countryAsk what you can do for your country””

Carpe Diem! Carpe Diem! ““Seize the daySeize the day””

““Win one for the GipperWin one for the Gipper””

©2010 Alex Stajkovic

Transformational Leadership Factors - IIITransformational Leadership Factors - III

INTELLECTUAL STIMULATIONINTELLECTUAL STIMULATION

Leader stimulates followers to be Leader stimulates followers to be intellectually creative, and to intellectually creative, and to

challenge their own beliefs and assumptions challenge their own beliefs and assumptions as well as those of the leader and organization.as well as those of the leader and organization.

©2010 Alex Stajkovic

Transformational Leadership Factors - IVTransformational Leadership Factors - IV

INDIVIDUALIZED CONSIDERATIONINDIVIDUALIZED CONSIDERATION

Leaders provide a supportive climate and Leaders provide a supportive climate and listen to the individual needs of followers. listen to the individual needs of followers. Leaders act as coaches in trying to assist Leaders act as coaches in trying to assist individuals in becoming self-actualized.individuals in becoming self-actualized.

©2010 Alex Stajkovic

Comparison MatrixComparison Matrix

Focus

Source of Power

Source ofDirection

SubordinateResponse

Management by exception

Transactional

Transformational Leadership

Transactional

Contingent rewarding

ReprimandsReprimands

AuthorityAuthority

ManagerManager

Fear-Based Fear-Based ComplianceCompliance

RewardsRewards

Reward Reward ExchangeExchange

ManagerManager

Calculative Calculative ComplianceCompliance

VisionVision

InspirationInspiration

LeaderLeader

Emotional Emotional CommitmentCommitment

©2010 Alex Stajkovic

Video Example of Transformational LeadershipVideo Example of Transformational Leadership

Pros: _____________________ _____________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________ __________________________________________

Cons: _____________________ _____________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

__________________________________________ __________________________________________

©2010 Alex Stajkovic

Applied Findings: The Aircraft Applied Findings: The Aircraft Career Leadership ExerciseCareer Leadership Exercise

There will be a handout

A Real-Life Example

©2010 Alex Stajkovic

Applied Findings: The CEO SummitApplied Findings: The CEO Summit

A Real-Life Example #2