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9 - 1 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Charismatic and Transformational Leadership Chapter 9 Part Three: Organizational Leadership 9 - 2 © 2016 Cengage Learning. All Rights Reserved.

May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Learning Outcomes 1) Briefly explain Max Weber’s conceptualization of charisma. 2) Explain what is meant by the phrase “locus of charismatic leadershipâ€. 3) Discuss the effects of charismatic leadership on followers. 4) Discuss how one can acquire charismatic qualities.

5) Distinguish between socialized and personalized charismatic leader types. 6) Explain the four stages of the transformation process. 7) List the qualities of effective charismatic and transformational leaders. 8) Describe the four behavior dimensions associated with transformational and charismatic leaders. 9) Distinguish between charismatic and transformational leadership.

10) Explain the basis of stewardship and servant leadership. 9 - 3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Charismatic Leadership • Charismatic and transformational theories return our focus to organizational leadership. • Charismatic and transformational leaders influence followers who then rally toward a shared goal. • Social, cultural, economic, and political systems are all impacted by these leaders.

9 - 4 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Weber’s Conceptualization of Charisma • The sociologist Max Weber believed charismatic leaders had a vision that spurred followers to action. • Vision is the ability to imagine different and better conditions and the ways to achieve them. • Charisma is a social construct between the leader and follower, in which the leader offers a transformative vision or ideal which exceeds the status quo and then convinces followers to accept this course of action not because of its rational likelihood of success, but because of their implicit belief in the extraordinary qualities of the leader.

9 - 5 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. What is the basis of charisma? The situation or social climate facing the leader.

The leader’s extraordinary qualities. A combination of the situation and the leader’s qualities. Locus of Charismatic Leadership External locus of charismatic leadership. Internal locus of charismatic leadership. An interaction of the two. © 2016 Cengage Learning.

All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 - 6 The Effects of Charismatic Leaders on Followers Exhibit 9.1Exhibit 9. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

How One Acquires Charismatic Qualities Suggested strategies: > Through training and practice, you can improve your communication and interpersonal skills. > While still in college, develop your visionary skills by practicing the act of creating a vision. > You can practice being candid. > Through a leadership development workshop or seminar, you can develop an enthusiastic, optimistic, and energetic personality profile. 9 - 8 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Discussion Questions • Explain the importance of effective communication skills for charismatic and transformational leaders. • Charismatic leaders are said to possess special traits that influence their behaviors. > Three such traits described in the chapter are envisioning, empathy, and empowerment. > Explain how each of these traits influences how followers perceive the charismatic leader.

9 - 9 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Charisma: A Double-Edged Sword • Positive or negative charisma lies in the values and motives of the leader. > The socialized charismatic leader (SCL) is one who possesses an egalitarian, self-transcendent, and empowering personality and uses charisma for the benefit of others. > The personalized charismatic leader (PCL) is one who possesses a dominant, self-centered, self- aggrandizing and narcissistic personality and uses charisma for self-glorification.

9 - 10 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Discussion Questions • A strong emotional attachment and loyalty to a charismatic leader can have both beneficial and detrimental effects on followers. > Explain both types of effects on followers. • In Chapter 5, different types of power: > legitimate, reward, coercive, referent, expert, connection, and information power, and influencing tactics were discussed. > What type of power is the charismatic leader most likely to be associated with and why?

9 - 11 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Transformational Leadership • Transformational leadership seeks to change the status quo by articulating to followers the problems in the current system and a compelling vision of what a new organization could be. • Transactional leadership seeks to maintain stability within an organization through regular economic and social exchanges that achieve specific goals for both the leaders and their followers. 9 - 12 © 2016 Cengage Learning.

All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Effects of Transformational Leadership • Positive effects on: > organizational performance, culture, and learning. > Follower organizational commitment. > Employee turnover rates, performance and citizenship behavior. • Effective transformational leaders shift focus from self-interest to collective interests. • Transformational leadership is associated with improved creativity and decision quality. 9 - 13 © 2016 Cengage Learning. All Rights Reserved.

May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Transformational and Transactional Leadership Transformational Leadership • Is about changing the status quo. • Is vision-oriented. • Values change. • Is more enduring. Transactional Leadership • Is about exchanging valued benefits. • Is task & reward-oriented. • Values stability. • Tends to be transitory. 9 - 14 © 2016 Cengage Learning. All Rights Reserved.

May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Transformation Process • Transformational leaders usually enter an organization experiencing a decline or in need of a major change in direction. • A four-part transformation process starts with the leader’s ability to: 1) Challenge the status quo and make a convincing case for change, 2) Present an inspiring vision of the future, 3) Provide effective leadership during the transformation, and 4) Institutionalize the change. 9 - 15 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Stage 1 Stage 2 Stage 3 Stage 4 Make a case for change. Present a shared vision. Lead the transformation. Institutionalize the change. • Challenge the status quo. • Identify attractive new trends. • Encourage others. • Involve others. • Express new vision in ideological terms. • Inspire followers. • Instill a sense of urgency. • Empower followers. • Establish priorities. • Minimize risk. • Avoid a “quick fixâ€. • “greatness attitudeâ€. • Change appraisal and rewards. • Implement team-building. • Task force monitors progress. The Transformation Process Source: Based on Carolyn Hines and William Hines Jr., “Seminar on the Essence of Transformational Leadership (Leadership Training Institute),†Nation’s Cities Weekly 25(9) (March 4, 2002): 8. © 2016 Cengage Learning.

All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 - 16 Qualities of Effective Charismatic and Transformational Leaders Exhibit 9.3Exhibit 9.3 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

9 - 17 Transformational and Charismatic Leader Behaviors Exhibit 9.4Exhibit 9. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Charismatic and Transformational Leadership: What’s the Difference? Personal meaning is the degree to which people’s lives make emotional sense and to which the demands confronted by them are perceived as being worthy of their energy and commitment. • Not all transformational leaders are charismatic. • Each achieves their labels in different ways. • They often have differing mind- sets. • Their career paths usually differ. • Each perceives their personal meaning differently. • They face different degrees of risk from opponents.

9 - 19 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Stewardship and Servant Leadership • Some use the term values-based leadership to describe these two leadership types: > Stewardship is an employee-focused form of leadership that empowers followers to make decisions and have control over their jobs. > Servant leadership is leadership that transcends self-interest to serve the needs of others, by helping them grow professionally and personally. © 2016 Cengage Learning. All Rights Reserved.

May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 - 20 Attributes of Effective Stewardship Exhibit 9.5 Stewardship is more about facilitating than actively leading. Stewardship leaders don’t lead; they coach followers to do the leading. Exhibit 9.5 © 2016 Cengage Learning. All Rights Reserved.

May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 - 21 Attributes of the Effective Servant Leader Exhibit 9.6 Servant leadership is centered on a strong service orientation and moral-spiritual grounding. Exhibit 9. © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Discussion Questions • Servant leadership emphasizes being able to serve and lead. > In your opinion, is this contradictory or doable? • Do you believe everyone has the same capability to become a servant leader; or are some people by their nature more inclined to be servant leaders? 9 - 23 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Key Terms • charisma • personalized charismatic leader (PCL) • personal meaning • servant leadership • socialized charismatic leader (SCL) • stewardship • transformational leadership • transactional leadership • vision

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Assignment Solution: Charismatic and Transformational Leadership

Introduction

Leadership theory has evolved over time, exploring various dimensions that define effective leadership styles and philosophies. Among these, charismatic and transformational leadership stand out due to their capacity to inspire and motivate followers toward achieving shared goals. This essay delves into Max Weber’s conceptualization of charisma, the locus of charismatic leadership, the effects of such leadership on followers, and how one can cultivate charismatic qualities. Furthermore, distinctions between socialized and personalized charismatic leaders, the transformation process, effective leader qualities, as well as stewardship and servant leadership will be discussed.

Max Weber’s Conceptualization of Charisma

Max Weber, a prominent sociologist, argued that charisma is an extraordinary characteristic that some leaders possess, setting them apart from conventional leaders. According to Weber, charismatic leaders have a compelling vision that inspires followers to transcend the status quo (Weber, 1947). Charismatic leadership is deemed a social construct established through an emotional bond between the leader and followers created by an extraordinary personality or vision. Such leaders motivate followers not merely due to logical reasons but through a deep-seated belief in the leader’s exceptional qualities (Weber, 1947).

Locus of Charismatic Leadership

The term "locus of charismatic leadership" refers to the foundation or source of charisma. Scholars have identified three key loci: external, internal, and an interaction of both. The external locus focuses on the context or social climate that makes charisma relevant, while the internal locus emphasizes the leader’s inherent traits (Bryman, 1992). An effective charismatic leader harnesses both loci, leveraging personal qualities while also responding to situational factors.

Effects of Charismatic Leadership on Followers

Charismatic leadership can have profound effects on followers, including increased commitment, motivation, and satisfaction. Followers are more likely to engage enthusiastically in organizational initiatives when they perceive their leader as charismatic (Shamir, House, & Arthur, 1993). However, the emotional attachment to a charismatic leader may lead to both positive (such as heightened loyalty) and negative (such as dependency or blind following) outcomes (Conger & Kanungo, 1998).

Acquiring Charismatic Qualities

While some individuals may naturally exhibit charisma, others can develop those traits through training and practice. Strategies for acquiring charismatic qualities include enhancing communication and interpersonal skills, developing visionary thinking, engaging in candid dialogues, and participating in workshops focused on leadership development (Davis & Houghton, 2007). These practices cultivate an enthusiastic, optimistic, and relatable demeanor—a hallmark of charismatic leaders.

Distinguishing Socialized and Personalized Charismatic Leaders

Charismatic leaders can be categorized into two types: socialized charismatic leaders (SCL) and personalized charismatic leaders (PCL). The SCL is egalitarian and self-transcendent, using their charisma for the betterment of the team or organization (Gibson et al., 2009). In contrast, the PCL is often self-centered and driven by personal agendas, focusing on self-glorification and leading followers primarily to fulfill their interests (Howell & Avolio, 1992). This distinction is crucial as it underscores the ethical implications of a leader’s charisma.

The Four Stages of the Transformation Process

Transformational leadership involves a four-part process essential for organizational change. These stages are:
1. Challenging the Status Quo: The leader must first identify a need for change and outline the existing challenges (Kotter, 1996).
2. Presenting an Inspiring Vision: The leader articulates a clear and compelling vision of what the future can look like (Bass, 1998).
3. Effective Leadership During Transformation: Leaders must actively guide the organization through the change process, empowering followers to participate (Avolio & Bass, 1991).
4. Institutionalizing the Change: Finally, it’s vital to integrate changes into the organizational culture to ensure sustainability (Kotter, 1996).

Qualities of Effective Charismatic and Transformational Leaders

Effective charismatic and transformational leaders share several qualities, including:
- Strong communication skills to articulate visions (Uhl-Bien & Pillai, 2007)
- High emotional intelligence to connect with followers (Jordan & Troth, 2004)
- The ability to inspire and motivate others (Bass, 1985)
- A genuine commitment to team development and empowerment (Spears, 2002).

Dimensions of Charismatic and Transformational Behavior

Transformational and charismatic leaders exhibit specific behavioral dimensions that enhance their influence:
1. Visionary Leadership: Ability to develop and communicate a clear vision.
2. Inspirational Motivation: Encouraging aspiration and zeal among followers.
3. Individualized Consideration: Focusing on the needs of each follower (Bass & Riggio, 2006).
4. Intellectual Stimulation: Challenging followers to think critically and creatively (Goleman, 1995).

Distinction Between Charismatic and Transformational Leadership

While both charismatic and transformational leadership aim to inspire and mobilize followers, they differ significantly. Charismatic leadership relies heavily on the leader's personal attributes and emotional appeal (Shamir et al., 1993). In contrast, transformational leadership emphasizes systemic change, focusing on shared goals and collective growth rather than just the leader’s charisma (Burns, 1978).

Basis of Stewardship and Servant Leadership

Stewardship and servant leadership represent leadership philosophies that prioritize the well-being of followers. Stewardship is employee-centric, empowering individuals to take ownership of their roles, while servant leadership goes a step further by focusing on serving the needs of followers and fostering their personal and professional growth (Greenleaf, 1977). Both philosophies aim for broader organizational goals by prioritizing ethical considerations and community welfare.

Conclusion

In summary, charismatic and transformational leadership are pivotal factors influencing organizational success and follower engagement. By understanding the foundations of charisma, the effects of leadership styles, and the qualities that define effective leaders, organizations can cultivate environments that foster positive change and growth. Emphasizing stewardship and servant leadership complements these styles by establishing moral imperatives that prioritize the welfare of individuals within organizations.

References

1. Avolio, B.J., & Bass, B.M. (1991). The full-range of leadership development: Basic and advanced workshop.
2. Bass, B.M. (1985). Leadership and performance beyond expectations. Free Press.
3. Bass, B.M., & Riggio, R.E. (2006). Transformational leadership (2nd ed.). Lawrence Erlbaum Associates.
4. Bryman, A. (1992). Charisma and leadership in organizations. Sage Publications.
5. Burns, J.M. (1978). Leadership. Harper & Row.
6. Conger, J.A., & Kanungo, R.N. (1998). Charismatic leadership in organizations. Sage Publications.
7. Davis, K., & Houghton, J.D. (2007). The impact of leader behavior and feedback on follower self-efficacy in a leadership development program. Journal of Leadership & Organizational Studies, 14(2), 149-169.
8. Goleman, D. (1995). Emotional intelligence. Bantam Books.
9. Greenleaf, R.K. (1977). Servant leadership: A journey into the nature of legitimate power and greatness. Paulist Press.
10. Howell, J.M., & Avolio, B.J. (1992). The exceptional leader: When followers exhibit charisma and transformational leadership. The Leadership Quarterly, 3(3), 253-273.