Contemporary Issues in
There is nothing demoralizing than a
leader who cannot clearly articulate
why we are doing what we are doing –
James Kouzes and Barry Posner
Traditional & Inspirational Leadership
In last chapter we discussed traditional
approaches- “leader is born not made”, behavior cues
identify leader from non leaders, “Leadership and
situations” and like. All what is ignored is importance of a
leader as communicator. Now we come to pointleadership is influence a group of people.
Framing– the way (using language to manage meaning)
for leaders to influence how others see and understand
events occurring. Moreover, it ability of the leader to
inspire others to act beyond their immediate self-interest.
Two contemporary Theories of
1. Charismatic Leadership
2. Transformational Leadership
1. Charismatic Leadership Theory:
A leadership theory that states that
followers make attributions of heroic or
extraordinary leadership abilities when they
observe certain behaviors.
Key Characteristic of Charismatic
Whether charismatic leaders are born with
qualities or learn how to be charismatic leader.
Answer to both questions is YES.
1. Vision and Articulation: Has vision—expressed
as an idealized goal---that proposes future is
better than status quo; and is able to clarify the
importance of the vision in terms that are
understandable to others.
Key Characteristic of Charismatic
Personal Risk. Willing to take on high
personal risk, incur high costs, and
engage in self-sacrifice to achieve the vision.
Sensitivity to followers Needs: Perceptive of
others’ abilities and responsive to their needs
Unconventional Behavior: Engages in
behaviors that are perceived as novel and
counter to norms.
3 Steps to become Charismatic Leader
1. Maintaining an optimistic view; using passion
as catalyst for generating enthusiasm; and
communicating with the whole body, not just
2. Drawing other by creating bond that inspires
others to follow.
3. Bringing out the potential in followers by
tapping into their emotions.
How Charismatic Leader Influence
• There are four steps to influence others.
1. Articulating an appealing Vision. The vision provides a
sense of continuity for followers by linking the
present with a better future for the organization.
2. Articulating mission statement- that imprint on
followers an overarching goal and purpose.
3. Setting the example for followers to imitate- leading
from the front.
4. Engages followers in emotion-inducing and often
unconventional behavior to demonstrate courage and
convictions about the vision.
Effectiveness of Charismatic Leaders
The charismatic leaders are so popular and
loved that people exert extra effort to achieve
the organizational goals. But there are some
specific situations where they are more
1. Ideological base.
2. Stress inducing condition.
3. Time of uncertainty.
Dark Side of charismatic Leadership
1. Ignoring the organizational interests
2. Most of them try to make the company to
improve their own image.
3. Sometimes self and organizational interest
boundaries are blurred.
4. Unable to accept criticism.
5. Surrounded by yes-boss people who are
rewarded on their lip service.
Transformational VS Transactional
Transformational Leaders--- Leaders who inspire
followers to transcend their own self-interests
and who are capable of having a profound and
extraordinary effect on followers.
Transactional Leaders--- Leaders who guide or
motivate their followers in the direction of
established goals by clarifying role and task
Characteristic of Transactional Leaders
1. Contingent Rewards; Contracts exchange of
rewards for effort, promises rewards for good
performance, recognizes accomplishments.
2. Management by Exception (Active): Watches
and searches for deviations from rules and
standards, takes correct action.
3. Managements by Exception(passive): Intervenes
only if standards are not met.
4. Laissez-faire: Abdicates responsibilities, avoids
Characteristics of Transformational
1. Idealized Influence: Provides vision and sense of
mission, instills pride, gains respect and trust.
2. Inspirational Motivation: Communicates high
expectations, uses symbols to focus efforts,
expresses important purposes in simple ways.
3. Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving.
4. Individualized Consideration: Gives personal
attention, treats each employee individually,
Authentic Leadership FoundationsEthics and Trust
Authentic Leadership: Leaders who know who
they are, know what they believe in and value,
and act on those values and beliefs openly and
candidly. Their followers would consider then to
be ethical people.
Socialized Charismatic Leadership
A leadership concept that states that
leaders convey values that are other-centered
versus self-centered and who role model ethical
Definition: A positive expectation that another will
not act opportunistically.
Positive Expectation– knowledge and familiarity
about other party. Trust is history-dependent
process based on relevant but limited samples of
experience. It takes time to form, building
incrementally and accumulating.
Opportunistic– inherent risk and vulnerability in any
trusting relationship. So when I trust someone, I
expect that they will not take advantage of mewillingness to take risk.
Three types of Trust
There are three types of trust in
1. Deterrence-Based trust: Trust based on fear of
reprisal if the trust is violated.
2. Knowledge-Based Trust– Trust based on
behavioral predictability that comes from a
history of interaction.
3. Identification-Based Trust– Trust based on a
mutual understanding of each other’s intentions
and appreciation of each other’s wants and
Basic Principles of Trust
Research allows us to offer some principles for better
understanding and creation of both trust and mistrust.
1. Mistrust Drives Out Trust– People do not reciprocate trust. They
conceal information and take advantage of other opportunistically.
2. Trust Begets Trust– Effective leaders increase trust in small
increments and allow others to respond in kind.
3. Trust can be Regained—once it is violated, trust can be regained
but only in certain situation- with consistent pattern someone
show trust worthiness.
4. Mistrusting Groups Self-destruct– when group members mistrust
they tend to suspicious of each other, constantly guard against
each other, and restrict communication with others in the group.
5. Mistrust Generally Reduces Productivity– Trust increase
productivity and mistrust reduces productivity.
Contemporary Leadership Roles
Mentoring: A senior employee who sponsors and
supports a less-experienced employee, called a prote’ge’.
Two broad categories of mentoring functions:
1. Career Functions– visible assignment, develop skills,
protect from possible risks, and nominating for
potential advances and promotions.
2. Psychological Functions– Counseling anxieties, and
uncertainty to help bolster her self-confidence,
sharing personal experiences, providing friendship
and acceptance, acting as role model.
Contemporary Leadership Roles
Self-Leadership- A set of processes through
which individuals control their own behavior.
Online Leadership– when you are face-to-face
many things can be cleared but when you have
to convey everything in words.