This chapter discusses several contemporary theories of leadership including charismatic leadership, transformational leadership, and authentic leadership. It explores how leaders can influence followers through framing, vision, and communication. The chapter also examines the importance of ethics and trust in leadership, and discusses emerging leadership roles such as mentoring, self-leadership, and online leadership.

1. Bob Stretch
Southwestern College
Robbins & Judge
Organizational Behavior
13th Edition
Contemporary Issues in LeadershipContemporary Issues in Leadership
13-1© 2009 Prentice-Hall Inc. All rights reserved.

2. Chapter Learning ObjectivesChapter Learning Objectives
 After studying this chapter, you should be able to:
– Show how framing influences leadership effectiveness.
– Define charismatic leadership and show how it influences
followers.
– Contrast transformational with transactional leadership and discuss
how transformational leadership works.
– Define authentic leadership and show why ethics and trust are vital
to effective leadership.
– Identify the three types of trust.
– Demonstrate the importance of mentoring, self-leadership, and
virtual leadership to our understanding of leadership.
– Identify when leadership may not be necessary.
– Explain how to find and create effective leaders.
– Assess whether charismatic and transformational leadership
generalizes across cultures.
© 2009 Prentice-Hall Inc. All rights reserved. 13-2

3. Inspirational Approaches to LeadershipInspirational Approaches to Leadership
 The focus is leader as
communicator
 Framing:
– A way of communicating that shapes
meaning
– Selective highlighting of facts and
events
– Ignored in traditional leadership
studies
 Two contemporary leadership
theories:
– Charismatic Leadership
– Transformational Leadership
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4. Charismatic LeadershipCharismatic Leadership
 House’s Charismatic Leadership Theory:
– Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors
 Four characteristics of charismatic leaders:
– Have a vision
– Are willing to take personal risks to achieve the vision
– Are sensitive to follower needs
– Exhibit behaviors that are out of the ordinary
 Traits and personality are related to charisma
 People can be trained to exhibit charismatic behaviors
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5. How Charismatic Leaders Influence FollowersHow Charismatic Leaders Influence Followers
 A four-step process:
1. Leader articulates an
attractive vision
• Vision Statement:
A formal, long-term strategy to attain goals
• Links past, present, and future
1. Leader communicates high performance expectations
and confidence in follower ability
2. Leader conveys a new set of values by setting an
example
3. Leader engages in emotion-inducing and often
unconventional behavior to demonstrate convictions
about the vision
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6. Charismatic Leadership IssuesCharismatic Leadership Issues
 Importance of vision
– Must be inspirational, value-centered, realizable, and given
with superior imagery and articulation
 Charismatic effectiveness and situation
– Charisma works best when:
• The follower’s task has an ideological component
• There is a lot of stress and uncertainty in the environment
• The leader is at the upper level of the organization
• Followers have low self-esteem and self-worth
 Dark Side of Charisma
– Ego-driven charismatics allow their self-interest and
personal goals to override the organization’s goals
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7. Beyond Charisma: Level-5 LeadersBeyond Charisma: Level-5 Leaders
 Very effective leaders who possess the four typical
leadership traits
– Individual competency
– Team skills
– Managerial competence
– Ability to stimulate others to high performance
 Plus one critical new trait…
– A blend of personal humility and professional will
– Personal ego needs are focused toward building a great
company
– Take responsibility for failures and give credit to others for
successes
© 2009 Prentice-Hall Inc. All rights reserved. 13-7

8. Transactional & Transformational LeadershipTransactional & Transformational Leadership
 Transactional Leaders
– Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task
requirements
 Transformational Leaders
– Inspire followers to transcend their own self-interests for the
good of the organization; they can have a profound and
extraordinary effect on followers
 Not opposing, but complementary, approaches to
leadership
– Great transformational leaders must also be transactional;
only one type is not enough for success
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9. Characteristics of the Two Types of LeadersCharacteristics of the Two Types of Leaders
Transactional
 Contingent Reward:
– Contracts exchange of rewards
for effort, promises rewards for
good performance, recognizes
accomplishments
 Management by Exception:
– Active: Watches and searches
for deviations from rules and
standards, takes corrective
action
– Passive: Intervenes only if
standards are not met
 Laissez-Faire:
– Abdicates responsibilities,
avoids making decisions
Transformational
 Idealized Influence:
– Provides vision and sense of
mission, instills pride, gains respect
and trust
 Inspiration:
– Communicates high expectations,
uses symbols to focus efforts,
expresses important issues simply
 Intellectual Stimulation:
– Promotes intelligence, rationality,
and problem solving
 Individualized Consideration:
– Gives personal attention, coaches,
advises
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10. Full Range of Leadership ModelFull Range of Leadership Model
 Leadership styles
listed from
passive to very
active
 Note the
ineffective styles
are mostly
transactional
 It is all about
influencing
followers
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11. Issues with Transformational LeadershipIssues with Transformational Leadership
 Basis for Action:
– Transformational leadership works by encouraging followers
to be more innovative and creative and by providing
ambitious goals
 Evaluation Based on the Research:
– This theory does show high correlations with desired
outcomes
– This style of leadership can be taught
 Transformational vs. Charismatic Leadership:
– Similar concepts, but transformational leadership may be
considered a broader concept than charisma.
– Instrument-based testing shows the measures to be roughly
equivalent
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12. Authentic Leadership: Ethics and TrustAuthentic Leadership: Ethics and Trust
 Authentic Leaders:
– Ethical people who know who they are, know what they
believe in and value, and act on those values and beliefs
openly and candidly
– Primary quality is trust
 Build trust by:
– Sharing information
– Encouraging open communication
– Sticking to their ideals
 Still a new topic; needs more research
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13. Ethics, Trust, and LeadershipEthics, Trust, and Leadership
 Ethics touch on many leadership styles
– As the moral leaders of organizations, CEOs must
demonstrate high ethical standards
– Socialized charismatic leadership: leaders who model ethical
behaviors
 Trust:
– The positive expectation that another person will not act
opportunistically
– Composed of a blend of familiarity and willingness to take a
risk
– Five key dimensions: integrity, competence, consistency,
loyalty, and openness
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14. Five Key Dimensions of TrustFive Key Dimensions of Trust
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 Integrity
– Honesty and truthfulness
 Competence
– An individual’s technical and interpersonal
knowledge and skills
 Consistency
– An individual’s reliability, predictability,
and good judgment in handling situations
 Loyalty
– The willingness to protect and save face for
another person
 Openness
– Reliance on the person to give you the full
truth

15. Three Types of TrustThree Types of Trust
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 Deterrence-based Trust
– Trust based on fear of reprisal if the
trust is violated
 Knowledge-based Trust
– Trust based on behavioral predictability
that comes from a history of interaction
 Identification-based Trust
– Trust based on a mutual understanding
of one another’s intentions and
appreciation of the other’s wants and
desires

16. Basic Principles of TrustBasic Principles of Trust
 Mistrust drives out trust
 Trust begets trust
 Trust can be regained
 Mistrusting groups self-
destruct
 Mistrust generally reduces
productivity
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17. Contemporary Leadership Roles: MentoringContemporary Leadership Roles: Mentoring
 Mentor:
– A senior employee who sponsors and supports a less-
experienced employee (a protégé)
– Good teachers present ideas clearly, listen, and empathize
– Two functions:
• Career
– Coaching, assisting, sponsoring
• Psychosocial
– Counseling, sharing, acting as a role model
– Can be formal or informal
– Mentors tend to select protégés who are similar to them in
background: may restrict minorities and women
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18. Contemporary Leadership Roles: Self-LeadershipContemporary Leadership Roles: Self-Leadership
 Self-Leadership
– A set of processes through which individuals
control their own behavior
– Effective leaders (superleaders) help followers
to lead themselves
– Important in self-managed teams
 To engage in self-leadership:
1. Make a mental chart of your peers and
colleagues
2. Focus on influence and not on control
3. Create opportunities; do not wait for them
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19. Contemporary Leadership Roles: Online LeadershipContemporary Leadership Roles: Online Leadership
 Leadership at a Distance: Building Trust
– The lack of face-to-face contact in electronic
communications removes the nonverbal cues that support
verbal interactions.
– There is no supporting context to assist the receiver with
interpretation of an electronic communication.
– The structure and tone of electronic messages can strongly
affect the response of receivers.
– An individual’s verbal and written communications may not
follow the same style.
– Writing skills will likely become an extension of
interpersonal skills.
© 2009 Prentice-Hall Inc. All rights reserved. 13-19

20. A Challenge to the Leadership ConstructA Challenge to the Leadership Construct
 Attribution Theory of Leadership
– The idea that leadership is merely an attribution that people
make about other individuals
– Qualities attributed to leaders:
• Leaders are intelligent, outgoing, have strong verbal skills, are
aggressive, understanding, and industrious.
• Effective leaders are perceived as consistent and unwavering
in their decisions.
• Effective leaders project the appearance of being leaders.
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21. Another Challenge to the Leadership ConstructAnother Challenge to the Leadership Construct
 Substitutes and Neutralizers for Leadership
© 2009 Prentice-Hall Inc. All rights reserved. 13-21
Relationship- Task-
oriented oriented
Defining Characteristics Leadership Leadership
Individual
Experience/training No effect on Substitutes for
Professionalism Substitutes for Substitutes for
Indifference to rewards Neutralizes Neutralizes
Job
Highly structured task No effect on Substitutes for
Provides its own feedback No effect on Substitutes for
Intrinsically satisfying Substitutes for No effect on
Organization
Explicit formalized goals No effect on Substitutes for
Rigid rules and procedures No effect on Substitutes for
Cohesive work groups Substitutes for Substitutes for
Source:BasedonS.KerrandJ.M.Jermier,“SubstitutesforLeadership:
TheirMeaningandMeasurement,”OrganizationalBehaviorandHuman
Performance,December1978,p.378.
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22. Finding and Creating Effective LeadersFinding and Creating Effective Leaders
 Selection
– Review specific requirements for the job
– Use tests that identify personal traits associated with
leadership, measure self-monitoring, and assess emotional
intelligence
– Conduct personal interviews to determine candidate’s fit
with the job
– Keep a list of potential candidates
 Training
– Recognize that all people are not equally trainable
– Teach skills that are necessary for employees to become
effective leaders
– Provide behavioral training to increase the development
potential of nascent charismatic employees
© 2009 Prentice-Hall Inc. All rights reserved. 13-22

23. Global ImplicationsGlobal Implications
 Certain types of leadership behaviors work better in
some cultures than in others
 Charismatic/Transformational Leadership
– Seems to work across cultures
– May be an “universal” aspect of leadership in its focus on:
• Vision and foresight
• Providing encouragement
• Trustworthiness
• Dynamic, positive, and proactive traits
 Globalization may be the cause of these common
concerns – we may be able to train a “universal”
manager, if that person is culturally sensitive!
13-23© 2009 Prentice-Hall Inc. All rights reserved.

24. Summary and Managerial ImplicationsSummary and Managerial Implications
 Companies are looking for
transformational leaders – even if
they only “look the part”
 Transformational style crosses
borders reasonably well
 Effective managers must build
trust with those they lead
 Leadership selection and training
are important to long-term success
13-24© 2009 Prentice-Hall Inc. All rights reserved.

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Copyright ©2009 Pearson Education, Inc.
Publishing as Prentice Hall