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CHAPTER EIGHT. CHANGE ORIENTED LEADERSHIP. Learning Objectives. Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic leadership. Explain the positive and negative impact of charismatic leadership on organizations.

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chapter eight



learning objectives
Learning Objectives
  • Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic leadership.
  • Explain the positive and negative impact of charismatic leadership on organizations.
  • Distinguish between transactional and transformational leadership.
learning objectives3
Learning Objectives

4. Understand the key role of contingent reward and the impact of management by exception.

5. Present the elements of transformational leadership and their impact on followers and organizations.

6. Describe the role of visionary and exemplary leadership in bringing about change in organizations.

charismatic leadership

Charismatic Leadership

“May the force be with you”

necessary elements of charismatic leadership








relationship and


Necessary Elements Of Charismatic Leadership
characteristics of charismatic leaders
Characteristics Of Charismatic Leaders
  • High self-confidence
  • Strong convictions about ideas
  • High energy and enthusiasm
  • Expressive
  • Excellent communication
  • Active image-building
characteristics of charismatic followers
Characteristics Of Charismatic Followers
  • High degree of respect and esteem for the leader
  • Loyalty and devotion to the leader
  • Affection for the leader
  • High performance expectations
  • Unquestioning obedience
charismatic external situational requirements
Charismatic External Situational Requirements
  • Sense of actual or imminent crisis
  • Perceived need for change
  • Opportunity to articulate ideological goal
  • Availability of dramatic symbols
  • Opportunity to articulate followers’ role
charismatic internal situational requirements
Charismatic Internal Situational Requirements
  • Organizational life cycle (early and late)
  • Complex task
  • No external reward available
  • Flexible and organic structure
  • Non-bureaucratic cultures
max weber
Max Weber
  • The most important early research on charismatic leadership was completed by Max Weber, who maintained that societies could be identified in terms of one of three types of authority systems: traditional, legal-rational, and charismatic.
traditional authority system
Traditional Authority System
  • The traditions and unwritten laws of the society dictate who has authority and how this authority can be used.
legal rational authority system
Legal-Rational Authority System
  • Authority derives from society’s belief in the laws that govern it.
charismatic authority system
Charismatic Authority System
  • Authority stems from the society’s belief in the exemplary characteristics of the leader.
common characteristics of charismatic leadership
Common Characteristics of Charismatic Leadership
  • Vision
  • Rhetorical skills
  • Image and trust building
  • Personalized leadership
situational characteristics
Situational Characteristics
  • Crises
  • Task Interdependence
  • Innovation
  • More Receptive to Change
  • Organizational Downsizing
perspectives on charisma
Perspectives on Charisma
  • The Sociological Approach
    • 1. Extraordinary, almost magical talents
    • 2. Crisis situation
    • 3. Radical vision
    • 5. Validation of leader through repeated success
perspectives on charisma17
Perspectives on Charisma
  • The Psychoanalytic Approach
    • Intense attraction
    • Regression
      • Transference
      • Projection

What does this say for the followers and for positive leaders?

perspectives on charisma18
Perspectives on Charisma
  • The Political Approach
  • Types of charismatic leaders:
    • Charismatic giants
    • Charismatic luminaries
    • Charismatic failures
    • Charismatic aspirants
perspectives on charisma19
Perspectives on Charisma
  • Charismatic leaders increase their power:
    • Cultural myths
    • Public address
    • Concentric circles
perspectives on charisma20
Perspectives on Charisma
  • The Behavioral Approach
    • Leader behaviors
    • Leader-follower relations
    • The situation
perspectives on charisma21
Perspectives on Charisma
  • The Attribution Approach
    • 1. Possess a vision that is unique, but attainable
    • 2. Act in an unconventional, counter-normative way
    • 3. Personal commitment & risk
    • 4. Confidence & expertise
    • 5. Personal Power
perspectives on charisma22
Perspectives on Charisma
  • The Communication Approach
    • Relationship builders
    • Visionaries
    • Influence agents
perspectives on charisma23
Perspectives on Charisma
  • The Dark Side
  • Differences in:
    • Power
    • Vision
    • Relationship to followers
    • Communication
    • Ethics & Morals
the dark side at work
The Dark Side at Work
  • Failures of vision
  • Misarticulation of goals
  • Poor management
  • Who are the charismatic leaders we can agree on?
universally positive cross cultural attributes of leadership
Encouraging and positive



Having integrity

Being trustworthy

Team builder




Win-win problem solver

Universally Positive Cross Cultural Attributes of Leadership
universally negative cross cultural attributes of leadership
Universally Negative Cross- Cultural Attributes of Leadership
  • Being a loner
  • Being non-cooperative
  • Ruthless
  • Non-explicit
  • Irritable
  • Dictatorial
culturally contingent attributes of leadership
Culturally Contingent Attributes of Leadership
  • Risk-taking
  • Enthusiasm
  • How vision is communicated
  • What constitutes good communication
  • How much leader is seen as equal
unethical and ethical charisma
Unethical And Ethical Charisma

Unethical Charisma:

  • Uses power for personal gain
  • Promotes own vision
  • Closed to criticism
  • Top-down communication
  • Insensitive to followers
unethical and ethical charisma42
Unethical And Ethical Charisma

Ethical Charisma:

  • Use power to serve others
  • Match vision to follower needs
  • Open to feedback
  • Develops followers
  • Encourages thinking
transactional leadership
Transactional Leadership
  • Contingent reward
  • Management by exception
transformational leadership factors

Charisma and



resistance to




New ideas and




Motivate and




Transformational Leadership Factors
theory of transformational and transactional leadership
Theory of Transformational and Transactional Leadership
  • James McGregor Burns’s Theory of Transformational and Transactional Leadership
    • focused on the differences between power versus leadership and charismatic versus non-charismatic leadership
theory of transformational and transactional leadership46
Theory of Transformational and Transactional Leadership
  • believed that leadership could take one of two forms: transactional leadership or transformational leadership
  • maintained that power and leadership were two distinct entities


transformational leadership

Transformational Leadership

Transformational leaders use idealized influence, individualized consideration, inspirational motivation, and intellectual stimulation, while transactional leaders use contingent reward, and active and passive management by exception.

follower characteristics
Follower Characteristics
  • Identification with the Leader and the Vision
  • Heightened Emotional Levels
  • Willing Subordination to the Leader
  • Feelings of Empowerment
bass s theory of transformational and transactional leadership
Bass’s Theory of Transformational and Transactional Leadership
  • Transformational leaders possess charismatic-leader characteristics (vision, rhetorical skills, etc.).
  • Transactional leaders do not possess these leader characteristics, nor are they able to develop strong emotional bonds with followers or inspire followers to do more than they thought they could. Instead, transactional leaders motivate followers by setting goals and promising rewards for desired performance.
guidelines for transformational leadership
Guidelines for Transformational Leadership
  • Articulate a clear and appealing vision.
  • Explain how the vision can be attained.
  • Act confident and optimistic.
  • Express confidence in followers.
  • Use dramatic, symbolic actions to emphasize key values.
  • Lead by example.
  • Empower people to achieve the vision.
common elements of change oriented leadership theories
Common Elements of Change-Oriented Leadership Theories
  • Vision is key
  • Empowerment
  • Flexibility and change
  • Teamwork and cooperation
elements of a motivating vision
Elements Of A Motivating Vision
  • Simple and clearly understandable
  • Challenging and idealistic, while realistic and achievable
  • Appeals to values, emotions, and ideals
  • Forward-looking, while based on present
elements of credibility
Elements of Credibility
  • Clarifying values
  • Identifying what followers want
  • Building agreement and consensus
  • Communicating values with enthusiasm
  • Standing up for your beliefs
  • Role-modeling desired behaviors
practices of exemplary leadership

Challenging the process

Creating a shared


Role modeling

Enabling followers to

implement vision

Encouraging the heart

Practices Of Exemplary Leadership



to motivate followers leaders must
To Motivate Followers, Leaders Must…
  • Set clear standards and goals
  • Expect the best
  • Pay attention
  • Personalize rewards and recognition
  • Tell a story
  • Celebrate together
  • Role model
chapter ten



learning objectives57
Learning Objectives
  • Summarize the information and knowledge that you acquired from this book and outline areas in need of further clarification.
  • Explain the changes in the leadership context.
  • Distinguish between previous and current definitions of leadership.
  • Understand the challenges that face leaders in the future.
what do we know
What Do We Know?
  • On the average, leaders are more energetic, motivated, intelligent, and self-confident
  • Traits are important, but no single trait defines leadership
  • Power is key to leadership; its use and function in organizations is changing
  • A contingency view is key to understanding and predicting leadership effectiveness
  • Teams are changing leaders’ roles
what do we know cont d
What Do We Know? (cont’d)
  • An emotional bond between leaders and followers is one of the key factors to changing organizations
  • Leaders must clarify their vision
  • Upper echelon, strategic leadership has distinct characteristics
  • Culture must be an integral part of any understanding of leadership
what don t we know
What Don’t We Know?
  • Role of traits
  • Understanding the impact of the

organizational context

  • Full impact of culture at

various levels

changes in organizations
Structural changes

Changing demographics


New work ethic

Learning and knowledge


Need for flexibility

Fast-paced change

Changes in Organizations
consequences for leadership
Consequences for Leadership
  • New roles for leaders; emphasis on followers
  • Understanding differences and culture
  • Understanding global issues
  • Accommodating different working styles
  • Continuous training and leading knowledge workers
  • Learning to manage change
  • Remaining flexible
looking to the future
Looking to the Future
  • Leaders with a service mentality
  • Leaders with a global perspective
  • Leaders with an integrated view of organizations
  • Leaders must remain flexible and open to change
  • Leaders who are committed to continuous learning
  • Leaders who achieve a personal balance
the mann gulch disaster
The Mann Gulch Disaster
  • Why do organizations unravel?
  • How can organizations be made more resilient?
  • Let’s start with what happened:
    • What are the major features of this incident?
maclean s question about the disaster
Maclean’s Question about the Disaster
  • What the structure of a small outfit should be when its business is to meet sudden danger and present disaster.
  • What the smoke jumping crew an organization?
    • Interlocking routines
    • Simple structure (much like an entrepreneurial firm)
    • Generic subjectivity
unsuspected vulnerability
Unsuspected Vulnerability
  • Sudden losses of meaning
    • Cosmology episode
    • Vu jade – outstripping your past experience
    • Sensemaking – reality is an ongoing accomplishment that emerges from efforts to create order and make retrospective sense of what occurs
      • The 10:00 fire example
when did dodge lose leadership
When did Dodge lose leadership?
  • Crew got confused
  • ‘Throw away your tools!’
  • Panic
    • Yet these members had confronted danger before. . . But not as a member of a disintegrating group
    • Lost their framework (cosmos) and found chaos
    • Threat-rigidity
how does this relate to business
How does this relate to business?
  • “The recipe for disorganization in Mann Gulch is not all that rare in everyday life. The recipe reads, thrust people into unfamiliar roles, leave some key roles unfilled, make the task more ambiguous, discredit the role system, and make all of these changes in an context in which small events can combine into something monstrous.”
so what can we learn about resilience
So, what can we learn about resilience?
  • Four sources
    • Improvisation
    • Virtual Role Systems
    • The Attitude of Wisdom
    • Respectful Interaction
  • We don’t expect creativity under intense pressure (threat-rigidity)
  • Creativity – figuring out how to use what you already know in order to go beyond what you currently think
  • Bricoleur – being able to create order out of whatever materials were at hand
virtual role systems
Virtual Role Systems
  • Each member mentally takes all roles
  • Holographic – each member can reconstitute the group and take whatever role is needed
the attitude of wisdom
The Attitude of Wisdom
  • “The more we learn about a particular domain, the greater the number of uncertainties, doubts, questions, and complexities.” (The Silence of the Skies)
  • Extreme confidence and Extreme caution preclude
    • Curiosity, openness, complex sensing
respectful interaction
Respectful Interaction
  • We need trust, honesty & self-respect
  • We also need social support
    • What are devices of mitigation? (Tenerife & Air Florida 90)
  • When formal structure collapses, is anything left?
structures for resilience
Structures for Resilience
  • Communication
  • Ways to rebuild frameworks and meaning
  • What was the structure of the smoke jumpers?
    • There are few safe environments
  • What structure allows people to meet sudden danger, who builds and maintains it?
leaders do
Leaders Do!
  • Excellent team leaders spend more time team building
  • Excellent team leaders listen
  • Excellent team leaders use a range of styles
  • What did Dodge do wrong?
changing organizations involves extensive diagnosis action and evaluation
Changing Organizations Involves Extensive Diagnosis, Action, and Evaluation


Forces for

and Against






Plan for









drivers of change
Drivers of Change
  • Technology
  • Information
  • People
intensity of the forces
Intensity of the Forces

Forces for Change


Forces against Change

Forces for


Forces Against


Forces for Change


Forces against Change

Forces for


Forces Against


Forces for Change


Forces against Change

Forces for


Forces Against


internal and external crises can cause change
Internal and External Crises can Cause Change



  • Major industrial accidents
  • Product injuries
  • Computer breakdown
  • Defective, undisclosed information
  • Failure to adapt/change
  • Sabotage by insiders
  • Organizational breakdown
  • Communication breakdown
  • On-site product tampering
  • Illegal activities
  • Occupational health diseases
  • Widespread environmental destruction
  • Natural disasters
  • Hostile takeover
  • Societal crises (civil or political)
  • Large-scale systems failure
  • Sabotage by outsiders
  • Terrorism
  • Executive kidnapping
  • Off-site product tampering
  • Counterfeiting
managers must decide the most important factors in choosing a change agent
Managers Must Decide the Most Important Factors in Choosing a Change Agent

Internal Change Agents

External Change Agents

  • Possess better knowledge of the organization
  • Are more quickly available
  • Require lower out-of-pocket costs
  • Are a known quantity
  • Have more control and authority
  • Have more objective views of the organization
  • Have more experience in dealing with more diverse problems
  • Can call on more individuals with diverse expertise
  • Have more technical knowledge, competence, and skills available




Internal Change Agents

External Change Agents

  • Have less knowledge of the organization
  • Require higher out-of-pocket costs
  • Are an unknown quantity
  • Have longer start-up time
  • Reflect unfavorably on the image of management
  • May be too close to the problem
  • May hold biased views
  • May create additional resistance if views as part of the problem
  • Must be reassigned; not available for other work


unethical behavior can adversely affect change efforts
Unethical Behavior can Adversely Affect Change Efforts
  • Emphasis on short-term revenues over long-term considerations.
  • Routinely ignoring or violating internal or professional codes of ethics.
  • Looking for simple solutions to ethical problems, being satisfied with quick fixes.
  • Unwillingness to take an ethical stand if there is a financial cost.
  • Creation of an internal environment that discourages ethical behavior or

encourages unethical behavior.

  • Dispatch of ethical problems to the legal department.
  • View of ethics solely as a public relations tool.

Unethical Behavior can Adversely Affect Change Efforts (Cont.)

  • Treatment of employees that differs from treatment of customers.
  • Unfair or arbitrary performance appraisal standards.
  • Lack of procedures or policies for handling ethical problems.
  • Lack of mechanisms for internal whistle-blowing.
  • Lack of clear lines of communication.
  • Sensitivity only to shareholder needs and demands.
  • Encouragement of employees to ignore their personal ethical values.
evaluation of change occurs at four levels
Evaluation of Change Occurs at Four Levels







Who are you?

Hem – who does not want to change.Haw – who learns to laugh at his fear.Sniff – who smells change in the air.Scurry – who goes into action.