CHAPTER EIGHT CHANGE ORIENTED LEADERSHIP 1. Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic

CHAPTER EIGHTCHAPTER EIGHT

CHANGE ORIENTED CHANGE ORIENTED LEADERSHIPLEADERSHIP

1.1. Describe the various leader, follower, Describe the various leader, follower, cultural, and situational characteristics cultural, and situational characteristics that contribute to charismatic that contribute to charismatic leadership.leadership.

2.2. Explain the positive and negative Explain the positive and negative impact of charismatic leadership on impact of charismatic leadership on organizations.organizations.

3.3. Distinguish between transactional and Distinguish between transactional and transformational leadership.transformational leadership.

Learning ObjectivesLearning Objectives

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

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

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


Charismatic LeadershipCharismatic Leadership

““May the force be with you”May the force be with you”

Necessary Elements Of Necessary Elements Of Charismatic LeadershipCharismatic Leadership

LeaderLeader CharacteristicsCharacteristics

SituationalSituationalRequirementsRequirements

Charismatic Charismatic relationship and relationship and

leadershipleadership

FollowerFollower CharacteristicsCharacteristics

Characteristics Of Characteristics Of Charismatic LeadersCharismatic Leaders

High self-confidenceHigh self-confidence Strong convictions about ideasStrong convictions about ideas

High energy and enthusiasmHigh energy and enthusiasm ExpressiveExpressive

Excellent communicationExcellent communication Active image-buildingActive image-building

Characteristics Of Characteristics Of Charismatic FollowersCharismatic Followers High degree of respect and High degree of respect and

esteem for the leaderesteem for the leader Loyalty and devotion to the Loyalty and devotion to the

leaderleader Affection for the leaderAffection for the leader High performance expectationsHigh performance expectations Unquestioning obedienceUnquestioning obedience

Charismatic External Charismatic External Situational Situational RequirementsRequirements Sense of actual or imminent crisisSense of actual or imminent crisis Perceived need for changePerceived need for change Opportunity to articulate Opportunity to articulate

ideological goalideological goal Availability of dramatic symbolsAvailability of dramatic symbols Opportunity to articulate Opportunity to articulate

followers’ rolefollowers’ role

Organizational life cycle (early and Organizational life cycle (early and late)late)

Complex task Complex task No external reward availableNo external reward available Flexible and organic structureFlexible and organic structure Non-bureaucratic culturesNon-bureaucratic cultures

Charismatic Internal Charismatic Internal Situational Situational RequirementsRequirements

Max WeberMax Weber

The most important early research The most important early research on charismatic leadership was on charismatic leadership was completed by Max Weber, who completed by Max Weber, who maintained that societies could be maintained that societies could be identified in terms of one of three identified in terms of one of three types of authority systems: types of authority systems: traditional, legal-rational, and traditional, legal-rational, and charismatic. charismatic.

Traditional Authority SystemTraditional Authority System

The traditions and unwritten laws The traditions and unwritten laws of the society dictate who has of the society dictate who has authority and how this authority authority and how this authority can be used. can be used.

Legal-Rational Authority Legal-Rational Authority SystemSystem

Authority derives from society’s Authority derives from society’s belief in the laws that govern it. belief in the laws that govern it.

Charismatic Authority SystemCharismatic Authority System

Authority stems from the Authority stems from the society’s belief in the exemplary society’s belief in the exemplary characteristics of the leader.characteristics of the leader.

Common Characteristics of Common Characteristics of Charismatic LeadershipCharismatic Leadership

VisionVision Rhetorical skills Rhetorical skills Image and trust buildingImage and trust building Personalized leadershipPersonalized leadership

Situational CharacteristicsSituational Characteristics

CrisesCrises Task InterdependenceTask Interdependence InnovationInnovation More Receptive to ChangeMore Receptive to Change Organizational DownsizingOrganizational Downsizing

Perspectives on CharismaPerspectives on Charisma

The Sociological ApproachThe Sociological Approach 1. Extraordinary, almost magical talents1. Extraordinary, almost magical talents 2. Crisis situation2. Crisis situation 3. Radical vision3. Radical vision 4. Followers4. Followers 5. Validation of leader through repeated 5. Validation of leader through repeated

successsuccess


The Psychoanalytic ApproachThe Psychoanalytic Approach Intense attractionIntense attraction RegressionRegression

TransferenceTransference ProjectionProjection

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


The Political ApproachThe Political Approach Types of charismatic leaders:Types of charismatic leaders:

Charismatic giantsCharismatic giants Charismatic luminariesCharismatic luminaries Charismatic failuresCharismatic failures Charismatic aspirantsCharismatic aspirants


Charismatic leaders increase their Charismatic leaders increase their power:power: Cultural mythsCultural myths Public addressPublic address Concentric circlesConcentric circles


The Behavioral ApproachThe Behavioral Approach Leader behaviorsLeader behaviors Leader-follower relationsLeader-follower relations The situationThe situation


The Attribution ApproachThe Attribution Approach 1. Possess a vision that is unique, but 1. Possess a vision that is unique, but

attainableattainable 2. Act in an unconventional, counter-2. Act in an unconventional, counter-

normative waynormative way 3. Personal commitment & risk3. Personal commitment & risk 4. Confidence & expertise4. Confidence & expertise 5. Personal Power5. Personal Power


The Communication ApproachThe Communication Approach Relationship buildersRelationship builders VisionariesVisionaries Influence agentsInfluence agents


The Dark SideThe Dark Side Differences in:Differences in:

PowerPower VisionVision Relationship to followersRelationship to followers CommunicationCommunication Ethics & MoralsEthics & Morals

The Dark Side at WorkThe Dark Side at Work

Failures of visionFailures of vision Misarticulation of goalsMisarticulation of goals Poor managementPoor management

Who are the charismatic leaders we Who are the charismatic leaders we can agree on?can agree on?

Who are the charismatic Who are the charismatic leaders we recognize?leaders we recognize?

And why?And why?

Universally Positive Cross Universally Positive Cross Cultural Attributes of Cultural Attributes of

LeadershipLeadership

Encouraging Encouraging and positiveand positive

MotivationalMotivational Dynamic Dynamic Having integrity Having integrity Being Being

trustworthytrustworthy

Team builderTeam builder DecisiveDecisive IntelligentIntelligent CommunicatorCommunicator Win-win Win-win

problem solverproblem solver

Universally Negative Universally Negative Cross- Cultural Attributes Cross- Cultural Attributes

of Leadershipof Leadership

Being a lonerBeing a loner Being non-cooperativeBeing non-cooperative RuthlessRuthless Non-explicitNon-explicit IrritableIrritable DictatorialDictatorial

Risk-takingRisk-taking

EnthusiasmEnthusiasm

How vision is communicatedHow vision is communicated

What constitutes good What constitutes good

communicationcommunication

How much leader is seen as equal How much leader is seen as equal

Culturally Contingent Culturally Contingent Attributes of LeadershipAttributes of Leadership

Unethical And Ethical Unethical And Ethical CharismaCharisma

Unethical Charisma:Unethical Charisma: Uses power for Uses power for

personal gainpersonal gain Promotes own visionPromotes own vision Closed to criticismClosed to criticism Top-down Top-down

communicationcommunication Insensitive to followersInsensitive to followers

Ethical Charisma:Ethical Charisma: Use power to serve Use power to serve

othersothers Match vision to Match vision to

follower needsfollower needs Open to feedback Open to feedback Develops followersDevelops followers Encourages Encourages

thinkingthinking

Unethical And Ethical Unethical And Ethical CharismaCharisma

Transactional Transactional LeadershipLeadership

Contingent rewardContingent reward

Management by exception Management by exception

Transformational Leadership Transformational Leadership FactorsFactors

TransformationalTransformationalLeadershipLeadership

IntellectualIntellectualStimulationStimulation

New ideas and New ideas and empowermentempowerment

IndividualIndividualConsiderationConsideration

Motivate andMotivate andencourageencourage

Charisma andCharisma andInspirationInspiration

OvercomeOvercomeresistance toresistance to

changechange

Theory of Transformational Theory of Transformational and Transactional Leadershipand Transactional Leadership

James McGregor Burns’s Theory of James McGregor Burns’s Theory of Transformational and Transactional Transformational and Transactional LeadershipLeadership focused on the differences between focused on the differences between

power versus leadership and power versus leadership and charismatic versus non-charismatic charismatic versus non-charismatic leadershipleadership

Theory of Transformational and Theory of Transformational and Transactional LeadershipTransactional Leadership

believed that leadership could take believed that leadership could take one of two forms: transactional one of two forms: transactional leadership or transformational leadership or transformational leadershipleadership

maintained that power and leadership maintained that power and leadership were two distinct entitieswere two distinct entities

Cont.

Transformational Transformational LeadershipLeadership

Transformational leaders Transformational leaders use use idealized influence, idealized influence,

individualized consideration, individualized consideration, inspirational motivation, and inspirational motivation, and intellectual stimulation, while intellectual stimulation, while

transactional leaders transactional leaders use use contingent reward, and active contingent reward, and active and passive management by and passive management by

exception.exception.

Follower CharacteristicsFollower Characteristics

Identification with the Leader and the Identification with the Leader and the VisionVision

Heightened Emotional LevelsHeightened Emotional Levels Willing Subordination to the LeaderWilling Subordination to the Leader Feelings of EmpowermentFeelings of Empowerment

Bass’s Theory of Transformational and Bass’s Theory of Transformational and

Transactional LeadershipTransactional Leadership Transformational leaders possess charismatic-Transformational leaders possess charismatic-

leader characteristics (vision, rhetorical skills, leader characteristics (vision, rhetorical skills, etc.).etc.).

Transactional leaders do not possess these Transactional leaders do not possess these leader characteristics, nor are they able to leader characteristics, nor are they able to develop strong emotional bonds with followers develop strong emotional bonds with followers or inspire followers to do more than they or inspire followers to do more than they thought they could. Instead, transactional thought they could. Instead, transactional leaders motivate followers by setting goals and leaders motivate followers by setting goals and promising rewards for desired performance. promising rewards for desired performance.

Guidelines for Guidelines for Transformational Transformational

LeadershipLeadership Articulate a clear and appealing vision.Articulate a clear and appealing vision. Explain how the vision can be attained.Explain how the vision can be attained. Act confident and optimistic.Act confident and optimistic. Express confidence in followers.Express confidence in followers. Use dramatic, symbolic actions to Use dramatic, symbolic actions to

emphasize key values.emphasize key values. Lead by example.Lead by example. Empower people to achieve the vision.Empower people to achieve the vision.

Common Elements of Common Elements of Change-Oriented Change-Oriented

Leadership TheoriesLeadership Theories

Vision is keyVision is key EmpowermentEmpowerment

Flexibility and changeFlexibility and change Teamwork and cooperationTeamwork and cooperation

Elements Of A Motivating Elements Of A Motivating VisionVision

Simple and clearly understandableSimple and clearly understandable

Challenging and idealistic, while Challenging and idealistic, while

realistic and achievablerealistic and achievable

Appeals to values, emotions, and idealsAppeals to values, emotions, and ideals

Forward-looking, while based on Forward-looking, while based on

presentpresent

Elements of CredibilityElements of Credibility

Clarifying valuesClarifying values Identifying what followers wantIdentifying what followers want Building agreement and Building agreement and

consensusconsensus Communicating values with Communicating values with

enthusiasmenthusiasm Standing up for your beliefsStanding up for your beliefs Role-modeling desired behaviorsRole-modeling desired behaviors

Practices Of Exemplary Practices Of Exemplary LeadershipLeadership

ExemplaryExemplaryLeadershipLeadership

Challenging the processChallenging the process

Creating a sharedCreating a shared visionvision

Role modelingRole modeling

Enabling followers toEnabling followers to implement visionimplement vision

Encouraging the heartEncouraging the heart

To Motivate Followers, To Motivate Followers, Leaders Must…Leaders Must…

Set clear standards and goalsSet clear standards and goals Expect the bestExpect the best

Pay attentionPay attention Personalize rewards and Personalize rewards and

recognitionrecognition Tell a storyTell a story

Celebrate togetherCelebrate together Role modelRole model

CHAPTER TENCHAPTER TEN

LOOKING TOWARD THE LOOKING TOWARD THE FUTURE: WHAT WILL WE FUTURE: WHAT WILL WE BE WHEN WE GROW UP?BE WHEN WE GROW UP?


1.1. Summarize the information and Summarize the information and knowledge that you acquired knowledge that you acquired from this book and outline areas from this book and outline areas in need of further clarification.in need of further clarification.

2.2. Explain the changes in the Explain the changes in the leadership context.leadership context.

3.3. Distinguish between previous Distinguish between previous and current definitions of and current definitions of leadership.leadership.

4.4. Understand the challenges that Understand the challenges that face leaders in the future.face leaders in the future.

What Do We Know?What Do We Know?

On the average, leaders are more On the average, leaders are more energetic, motivated, intelligent, and energetic, motivated, intelligent, and self-confidentself-confident

Traits are important, but no single trait Traits are important, but no single trait defines leadershipdefines leadership

Power is key to leadership; its use and Power is key to leadership; its use and function in organizations is changingfunction in organizations is changing

A contingency view is key to A contingency view is key to understanding and predicting leadership understanding and predicting leadership effectivenesseffectiveness

Teams are changing leaders’ rolesTeams are changing leaders’ roles

What Do We Know? What Do We Know? (cont’d)(cont’d)

An emotional bond between An emotional bond between leaders and followers is one of the leaders and followers is one of the key factors to changing key factors to changing organizationsorganizations

Leaders must clarify their visionLeaders must clarify their vision Upper echelon, strategic Upper echelon, strategic

leadership has distinct leadership has distinct characteristicscharacteristics

Culture must be an integral part of Culture must be an integral part of any understanding of leadershipany understanding of leadership

What Don’t We Know?What Don’t We Know?

Role of traits Role of traits

Understanding the impact Understanding the impact

of the of the

organizational contextorganizational context

Full impact of culture at Full impact of culture at

various levelsvarious levels

Changes in Changes in OrganizationsOrganizations

Structural Structural changeschanges

Changing Changing demographicsdemographics

GlobalizationGlobalization New work ethicNew work ethic

Learning and Learning and knowledgeknowledge

TechnologyTechnology Need for flexibilityNeed for flexibility Fast-paced Fast-paced

changechange

Consequences for Consequences for LeadershipLeadership

New roles for leaders; emphasis on New roles for leaders; emphasis on followersfollowers

Understanding differences and Understanding differences and cultureculture

Understanding global issuesUnderstanding global issues Accommodating different working Accommodating different working

stylesstyles Continuous training and leading Continuous training and leading

knowledge workersknowledge workers Learning to manage changeLearning to manage change Remaining flexibleRemaining flexible

Looking to the Looking to the FutureFuture

Leaders with a service mentalityLeaders with a service mentality Leaders with a global perspectiveLeaders with a global perspective Leaders with an integrated view Leaders with an integrated view

of organizationsof organizations Leaders must remain flexible and Leaders must remain flexible and

open to changeopen to change Leaders who are committed to Leaders who are committed to

continuous learningcontinuous learning Leaders who achieve a personal Leaders who achieve a personal

balancebalance

The Collapse of The Collapse of Sensemaking in Sensemaking in Organizations:Organizations:

The Mann Gulch DisasterThe Mann Gulch Disaster

The Mann Gulch DisasterThe Mann Gulch Disaster

Why do organizations unravel?Why do organizations unravel? How can organizations be made How can organizations be made

more resilient?more resilient? Let’s start with what happened:Let’s start with what happened:

What are the major features of this What are the major features of this incident?incident?

Maclean’s Question about the Maclean’s Question about the DisasterDisaster

What the structure of a small outfit should What the structure of a small outfit should be when its business is to meet sudden be when its business is to meet sudden danger and present disaster.danger and present disaster.

What the smoke jumping crew an What the smoke jumping crew an organization?organization? Interlocking routinesInterlocking routines Simple structure (much like an entrepreneurial Simple structure (much like an entrepreneurial

firm)firm) Generic subjectivity Generic subjectivity

Unsuspected VulnerabilityUnsuspected Vulnerability

Sudden losses of meaningSudden losses of meaning Cosmology episodeCosmology episode Vu jade – outstripping your past Vu jade – outstripping your past

experienceexperience Sensemaking – reality is an ongoing Sensemaking – reality is an ongoing

accomplishment that emerges from accomplishment that emerges from efforts to create order and make efforts to create order and make retrospective sense of what occursretrospective sense of what occurs

The 10:00 fire example The 10:00 fire example

When did Dodge lose When did Dodge lose leadership?leadership?

Crew got confusedCrew got confused ‘‘Throw away your tools!’Throw away your tools!’ PanicPanic

Yet these members had confronted danger Yet these members had confronted danger before. . . But not as a member of a before. . . But not as a member of a disintegrating groupdisintegrating group

Lost their framework (cosmos) and found chaosLost their framework (cosmos) and found chaos Threat-rigidityThreat-rigidity

How does this relate to How does this relate to business?business?

““The recipe for disorganization in Mann The recipe for disorganization in Mann Gulch is not all that rare in everyday Gulch is not all that rare in everyday life. The recipe reads, thrust people life. The recipe reads, thrust people into unfamiliar roles, leave some key into unfamiliar roles, leave some key roles unfilled, make the task more roles unfilled, make the task more ambiguous, discredit the role system, ambiguous, discredit the role system, and make all of these changes in an and make all of these changes in an context in which small events can context in which small events can combine into something monstrous.” combine into something monstrous.”

So, what can we learn about So, what can we learn about resilience?resilience?

Four sourcesFour sources ImprovisationImprovisation Virtual Role SystemsVirtual Role Systems The Attitude of WisdomThe Attitude of Wisdom Respectful InteractionRespectful Interaction

ImprovisationImprovisation

We don’t expect creativity under We don’t expect creativity under intense pressure (threat-rigidity)intense pressure (threat-rigidity)

Creativity – figuring out how to use Creativity – figuring out how to use what you already know in order to go what you already know in order to go beyond what you currently thinkbeyond what you currently think

Bricoleur – being able to create order Bricoleur – being able to create order out of whatever materials were at out of whatever materials were at handhand

Virtual Role SystemsVirtual Role Systems

Each member mentally takes all Each member mentally takes all rolesroles

Holographic – each member can Holographic – each member can reconstitute the group and take reconstitute the group and take whatever role is neededwhatever role is needed

The Attitude of WisdomThe Attitude of Wisdom

““The more we learn about a The more we learn about a particular domain, the greater the particular domain, the greater the number of uncertainties, doubts, number of uncertainties, doubts, questions, and complexities.” (The questions, and complexities.” (The Silence of the Skies)Silence of the Skies)

Extreme confidence and Extreme Extreme confidence and Extreme caution precludecaution preclude Curiosity, openness, complex sensingCuriosity, openness, complex sensing

Respectful InteractionRespectful Interaction

We need trust, honesty & self-We need trust, honesty & self-respectrespect

We also need social supportWe also need social support What are devices of mitigation? What are devices of mitigation?

(Tenerife & Air Florida 90)(Tenerife & Air Florida 90) When formal structure collapses, is When formal structure collapses, is

anything left?anything left?

Structures for ResilienceStructures for Resilience

CommunicationCommunication Ways to rebuild frameworks and Ways to rebuild frameworks and

meaningmeaning What was the structure of the smoke What was the structure of the smoke

jumpers?jumpers? There are few safe environmentsThere are few safe environments

What structure allows people to meet What structure allows people to meet sudden danger, who builds and sudden danger, who builds and maintains it?maintains it?

Leaders Do!Leaders Do!

Excellent team leaders spend more Excellent team leaders spend more time team buildingtime team building

Excellent team leaders listenExcellent team leaders listen Excellent team leaders use a range Excellent team leaders use a range

of stylesof styles

What did Dodge do wrong?What did Dodge do wrong?

Changing Organizations Changing Organizations Involves Extensive Diagnosis, Involves Extensive Diagnosis,

Action, and EvaluationAction, and Evaluation

BuildPlan forChange

SelectChange Agent

ImplementChangeStrategies

EvaluateChanges

InstitutionalizeChanges

DiagnoseForces forand AgainstChange

Drivers of ChangeDrivers of Change

TechnologyTechnology

InformationInformation

PeoplePeople

Intensity of the ForcesIntensity of the Forces

Forces for Change

Forces AgainstChange

Forces for ChangeGREATER THANForces against Change


Forces for Change

Forces for ChangeLESS THANForces against Change

Forces for Change


Forces for ChangeEQUAL TOForces against Change

Internal and External Crises can Cause Internal and External Crises can Cause ChangeChange

Internal External•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 Managers Must Decide the Most Important Factors in Choosing a Change AgentFactors 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

(Cont.)

Internal Change Agents External Change Agents

•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

•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

Unethical Behavior can Adversely Affect Change Unethical Behavior can Adversely Affect Change EffortsEfforts

Emphasis on short-term revenues over long-term considerations.Emphasis on short-term revenues over long-term considerations.

Routinely ignoring or violating internal or professional codes of ethics.Routinely ignoring or violating internal or professional codes of ethics.

Looking for simple solutions to ethical problems, being satisfied with quick Looking for simple solutions to ethical problems, being satisfied with quick

fixes.fixes.

Unwillingness to take an ethical stand if there is a financial cost.Unwillingness to take an ethical stand if there is a financial cost.

Creation of an internal environment that discourages ethical behavior or Creation of an internal environment that discourages ethical behavior or encourages unethical behavior.encourages unethical behavior.

Dispatch of ethical problems to the legal department.Dispatch of ethical problems to the legal department.

View of ethics solely as a public relations tool.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 Evaluation of Change Occurs at Four LevelsOccurs at Four Levels

CHANGE

AFFECTIVE

LEARNING

BEHAVIORAL

PERFORMANCE

Individual CharacteristicsIndividual Characteristics

Attitude toAttitude to

RiskRiskCCrreeaattiivviittyy

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.

The Handwriting on the Wall

Documents

CHAPTER EIGHT CHANGE ORIENTED LEADERSHIP 1. Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic