Transformational Leadership

Transformational Leadership

Leadership with values, meaning and a higher purpose

Douglas W. Bush, M.A. http://www.douglaswbush.com
2007 © All Rights Reserved

Objectives

1 Definition

2 History

3 Transformational vs. transactional leadership

4 Characteristics of a transformational leader

5 Support of transformational leadership

6 Applications for managers


Think about leadership experiences you have had –
either as a leader or as a follower

- What leadership qualities did you
prefer the most? Least?

- How did your leadership style or
the style of your boss affect the
outcomes of your work?


A Transformational Leader

Style of charismatic leadership in
which the leader identifies the
needed change, creates a vision to
guide and transform the organization;
inspires and challenges followers;
engages followers in driving the
change; develops them into leaders;
achieves levels of performance beyond
expectations.


Definition

Transformational leadership occurs when one or
more persons engage with others in such a way
that leaders and followers raise one another to
higher levels of motivation and morality.
- James MacGregor Burns


History of Transformational Leadership

• James Burns introduced the concept of transforming
and transactional leadership (1978)

• A process in which leaders and followers help each
other advance to a higher level of motivation and morale.

• Differentiated between management and leadership
claiming the differences are in characteristics and
behaviors, and established two concepts:
- transforming leadership
- transactional leadership

• Transformational leadership creates significant change
in the lives of people and organizations.


History of Transformational
Leadership
• It redesigns perceptions and values, and changes
expectations and aspirations of followers.

• Dependent on the leader’s personality, traits and
ability to change through example, articulation of an
energizing vision and challenging goals.

• Provides a moral example of working towards the
benefit of the individual, team and organization.

• Transforming and transactional leadership are
mutually exclusive styles.


Qualities of a Transformational
Leader

• Inspires
• Challenges
• Engages
• Develops
• Aligns


Impact of Transformational
Leadership

• Trust
• Admiration
• Loyalty
• Respect


Transformational Leaders

Who are they?


Impact of Transformational Leadership

What will people say about you?


Transformational vs. Transactional
Leadership

What’s The Difference?


Transformational vs. Transactional
Leadership

They lead to different results


Theory X vs. Theory Y
Manager
• A Theory X manager assumes • A Theory Y managers believes
employees are inherently that employees are motivated by
lazy, dislike work and will avoid the satisfaction of doing a good
work if they can. job.

Theory X and Theory Y Management is from
The Human Side of Enterprise by Douglas McGregor


Attitudes of The Theory X Manager
• A Theory X manager assumes employees are inherently lazy, dislike work
and will avoid work if they can:

– Workers need to be closely supervised with comprehensive systems of
control.
– Employees will show little ambition without an enticing incentive
program and will avoid responsibility whenever they can.
– Threat and coercion are needed to gain the employee's compliance.
– The workplace is characterized by mistrust, highly restrictive
supervision, and discipline.
– Managers will blame the person first in most situations, without
questioning whether it may be the system, policy, or lack of training that
deserves the blame.


Qualities of The Theory X Manager


Qualities of The Theory Y Manager


17 2007 © All Rights Reserved

Attitudes of The Theory Y Manager

• In Theory Y, managers believe that employees are motivated by the
satisfaction of doing a good job:

– They enjoy their mental and physical work duties.
– They possess the ability for creative problem solving, but their talents
are underused in most organizations.
– Given the right conditions, employees will seek out and accept
responsibility and exercise self-control and self-direction in
accomplishing objectives to which they are committed.
– Given the right conditions, most people want to do well at work.


Theory X vs. Theory Y

• What is the predominant leadership style here?
– At the manager team level?
– At the supervisor level?

• Can you give some clear examples of either X or Y behavior?
– In this work group?
– In other parts of the organization?

• Is consistent Theory Y leadership possible here?


The Multifactor Leadership
Questionnaire

Online Assessment
Individual or 360


The Full Range Leadership Model


The Full Range Leadership Model
• Transformational
– Idealized Influence
• Idealized Attributes IA
• Idealized Behaviors IB
– Inspirational Motivation IM
– Intellectual Stimulation IS
– Individualized Consideration IC

• Transactional
– Contingent Rewards CR
– Management by Exception (Active) MBEA

• Avoidant
– Management by Exception (Passive) MBEP
– Laissez-Faire LF

22


Image from: Transformational Leadership Coaching and Consulting, LLC



• Guides the development of a positive, productive change:
– Inspires people by being a role model
– Motivates people to achieve high standards
– Challenges people to develop creative solutions
– Develops people on an individual basis
– Aligns company interests with employees needs

• Makes change happen at the level of behavior and basic
assumptions


Idealized Influence – “Inspire”
• These leaders are admired, respected and trusted. Followers want to
emulate them. They consider followers’ needs over their own. Their
conduct is consistent with underlying ethics, principles and values
• Idealized Attributes (IA)
– Instill pride in others for being associated with me
– Go beyond self-interest for the good of the group
– Act in ways that build others’ respect for me
– Display a sense of power and confidence
• Idealized Behaviors (IB)
– Talk about my most important values and beliefs
– Specify the importance of having a strong sense of purpose
– Consider the moral and ethical consequences of decisions
– Emphasize the importance of having a collective sense of mission
Role Model

Inspirational Motivation – “Motivate”

• These leaders provide meaning and challenge to their followers’ work.
Individual and team spirit is increased. Enthusiasm and optimism are
displayed. The leader encourages followers to envision attractive future
states
– Talk optimistically about the future
– Talk enthusiastically about what needs to be accomplished
– Articulate a compelling vision of the future
– Express confidence that goals will be achieved

Vision


Intellectual Stimulation – “Challenge”

• These leaders stimulate their followers’ efforts to be innovative and creative
by questioning assumptions, reframing problems and approaching old
situations in new ways. There is no ridicule or public criticism of mistakes.
New ideas and creative solutions to problems are solicited from followers,
who are included in the process of addressing and finding solutions
– Re-examine critical assumptions to question whether they are
appropriate
– Seek differing perspectives when solving problems
– Get others to look at problems from many different angles
– Suggest new ways of looking at how to complete assignments

Challenge

Individual Consideration – “Development”

• These leaders pay attention to each individual’s need for achievement and
growth by acting as a coach or mentor. New learning opportunities are
created along with a supportive climate in which to grow. Individual
differences in terms of needs and desires are recognized
– Spend time teaching and coaching
– Treat others as individuals rather than just as a member of the group
– Consider each individual as having different needs, abilities and
aspirations from others
– Help others to develop their strengths

Coach


Transactional Leadership
• These leaders display behaviors associated with constructive and corrective
transactions. They define expectations and promote performance to achieve these
levels

• Contingent Reward: Establishes goals and agrees on what followers will do to achieve the
stated objectives. Exchanges rewards for effort and recognizes accomplishments
– Provide others with assistance in exchange for their efforts
– Discuss in specific terms who is responsible for achieving performance targets
– Make clear what one can expect to receive when performance goals are met

• Management by Exception (active): Monitors deviations from rules and mistakes and takes
corrective action
– Focus attention on irregularities, mistakes, exceptions and deviations from standards
– Concentrate full attention on dealing with mistakes, complaints and failures
– Keep track of all mistakes


Passive/Avoidant Behavior
• These leaders do not respond to situations and problems systematically.
They avoid specifying agreements, clarifying expectations and providing
goals and standards to be achieved.

• Management by Exception (passive): Takes action only if mistakes are
made, standards are not met
– Fail to intervene until problems become serious
– Wait for things to go wrong before taking action
– Show a firm belief in, “If it ain’t broke, don’t fix it”

• Laissez-Faire: lack of leadership
– Avoid getting involved when important issues arise
– Am absent when needed
– Delay responding to urgent questions


The Transactional Leadership
• Dependent on the promise of rewards or the avoidance of penalties as
motivation. Can work when:

– The rewards are big enough
– The leader actually has significant control over the rewards

• Concentrates on accomplishing the tasks at hand

• Satisfies the self-interest of high performers

• Focuses on the penalizing poor performers

• It’s about compliance


Does Transformational Leadership
Matter?
• Transformational leaders
clearly have more
satisfied followers
• Transformational leaders
lead more effective work
groups

• Followers of
transformational leaders
experience less stress
and burnout

The Transformational Leader and Change

• Start with an espoused value (i.e., transparency)

• Identify the real-time moments when basic assumptions drive
norms (i.e., lack of openness, dishonest behavior, etc.)

• Through discussion, bring the basic underlying assumptions to
light that support the behavior or norms

• Question, challenge, or dispute the underlying assumptions and
beliefs that support the behavior or norms

• Reinforce the new value, which leads to new behavior (norm)

• Chooses the coaching role instead of criticism and discipline

• Recognize and reward the new positive behavior (norm)


Champion
• Does transformational leadership seem worthwhile?
• Would you consider becoming a transformational leader?
• What difference would it make?
- to others? - to the organization? - to yourself?

• What will you do to champion transformational leadership?
- List three things you’ll:
 Stop doing
 Start doing
 Continue doing
• What would be a big success in the next six months?
– What will you expect to improve or be better?
– What will you see or hear that you would like?


Summary
• Mission, Vision, or Cause
• Espoused Values
• Behavioral Expectations
• Strategy
• Gain followers
• Support a shared vision
• Know and understand the challenge ahead
• Committed to achieving the dream
• Individual interests are aligned with the goals
• “Life’s work” that provides purpose, direction and
personal meaning

Transformational Leadership

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