6. Transformational
• It is about hearts and minds, about empowering people not controlling
them
• Transformational leaders are more visionary and inspirational in approach. They
tend to communicate a clear and acceptable vision and goals, with which
employees can identify and tend to engender intense emotion in their followers.
Rather than exchanging rewards for performance, transformational leaders
attempt to build ownership on the part of group members, by involving the group
in the decision process.
• Inspire followers to transcend their self-interest for the organization
• Charismatic and visionary
Research indicates that transformational leadership is more
strongly correlated with lower turnover rates, higher productivity,
and higher employee satisfaction.
7. Charismatic Leadership
The quality of a leader whose purposes, power
and extraordinary determination differentiate him
from others.
The influence of C.L comes from his personal
power (personal qualities), not his positional
power.
C.L transform how followers view themselves and
strives to tie each follower’s identity to the
organization's collective identity.
8. • Q: what more is needed for C.L to have a strong
influence on people???
• 1. Increase individual’s awareness regarding the
significance of task outcomes.
• 2. Encourages subordinates to go beyond their
own self interest to the interests of others in their
team and organization
• 3. Motivates subordinates to take care of needs
that operate at a higher level…
9. How 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
10.
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12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22. • When leaders want members to be an active part of
the organization and have ownership to it
• When leaders are building a sense of purpose
• When the organization has a long term plan
• When people need to be motivated
• Transformational leadership can be one of the best
resources for organizational change
When to use
Transformational
23.
24.
25. Transactional
• Motivate by the exchange process.
– EX: business owners exchange status and wages for the work effort of
the employee.
– Leaders who guide or motivate their followers in the direction of
established goals by clarifying role and task requirements
• Focuses on the accomplishment of tasks & good worker relationships in
exchange for desirable rewards.
• To influence behavior, the leader uses correction or punishment as a
response to unacceptable performance or deviation from the accepted
standards.
• To influence behavior, the leader actively monitors the work performed and
uses corrective methods to ensure the work is completed to meet accepted
standards.
26. Here are some of the characteristics
of transactional leaders:
Focused on short-term goals
Favor structured policies and
procedures
Thrive on following rules and doing
things correctly
Revel in efficiency
Very left-brained
Tend to be inflexible
Opposed to change
27. When to use Transactional
• “If I do this for you…what can you do for me?”
• Leader wants to be in control
• When there are approaching deadlines that must be met
• Since the transactional leader views the leader-follower
relationship as a process of exchange, they would choose to
use it in situations where relationships are of little
importance and are short-lived.
• The Transactional leadership style closely parallels some of
the ideas, pertaining to relationships, as the autocratic,
bureaucratic, and coercive styles.
28. “We made workers into robots;
we made them into machines…
A Result of the transactional
Leadership We Knew...
This quote illustrates the ideas of transactional leadership and the
effects it has on individuals and organizations…
29. Some Assumptions Related to Transactional
Leadership
• Employees are motivated by reward and punishment.
• The subordinates have to obey the orders of the superior.
• The subordinates are not self-motivated.
• The main goal of the follower is to obey the instructions of
the leader. The style can also be mentioned as a ‘telling style’.
30. Transactional Leadership Factors.
Here, the exchange between leader and follower takes place to achieve routine
performance goal. These exchanges involve four dimensions:
Contingent Rewards
Active Management
by Exception
Passive Management
by Exception
Leissez-Faire
31. • Contingent Rewards
– A process whereby leaders and followers exchange efforts by
followers for specific reward from leader
• Active Management by Exception
– Leaders closely monitor their subordinates to see if they are
violating the rules or making mistakes. When they do so, leader
takes corrective action by discussion.
• Passive Management by Exception
– Leaders do not closely monitor subordinates but wait until
problems occur. Then leader gives low evaluations without
discussion their performance and how to improve it.
• Leissez-Faire
– These leaders have a “what will be will be” hands-off, let-things-
ride approach with no efforts.
