Foundations of Leadership Studies
 Charismatic Leadership
 Transactional leadership
 Transformational Leadership
 Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain
behaviors
 People working for charismatic leaders are motivated
to exert extra work effort and, because they like and
respect their leaders, express greater satisfaction
 Charisma leadership appears to be most appropriate
when the followers’ task has a ideological component
or when the environment involves a high degree of
stress and uncertainty
1. Vision and articulation. Has a vision—expressed as an idealized goal—
that proposes a future better than the status quo; and is able to clarify
the importance of the vision in terms that are understandable to others.
2. Personal risk. Willing to take on high personal risk, incur high costs and
engage in self-sacrifice to achieve the vision.
3. Environmental sensitivity. Able to make realistic assessments of the
environmental constraints and resources needed to bring about change.
4. Sensitivity to follower needs. Perceptive of others’ abilities and
responsive to their needs and feelings.
5. Unconventional behavior. Engages in behaviors that are perceived as
novel and counter to norms.
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Level 5 Leaders
 Possess a fifth dimension—a paradoxical
blend of personal humility and
professional will—in addition to the four
basic leadership qualities of individual
capability, team skills, managerial
competence, and the ability to stimulate
others to high performance.
 Channel their ego needs away from
themselves and into the goal of building a
great company.

Positive and Negative Charismatics
 Determined by examining the consequences for
followers
 Negative charismatics have a personalized
power orientation
 Positive charismatics have a socialized power
orientation

Being in awe of the leader reduces good suggestions by
followers

Desire for leader acceptance inhibits criticism by followers

Adoration by followers creates delusions about the leader

Excessive confidence and optimism blind the leader to real
dangers

Denial of problems and failures reduces organizational
learning

Risky, grandiose projects are more likely to fail

Taking complete credit for successes alienates
some key followers

Impulsive, nontraditional behavior creates enemies

Dependence on the leader inhibits development of
competent successors

Failure to develop successors creates an eventual
leadership crisis
Transactional and Transformational
Leadership

Transformational Leadership
 Transformational leadership appeals to the moral
values of followers to raise their consciousness
and mobilize their energies
 Transactional leadership motivates followers by
appealing to their self-interest and exchanging
benefits
Transactional Leaders
• Contingent Reward
Leaders who guide or motivate
their followers in the direction
of established goals by
clarifying role and task
requirements.
• Management by
Exception (active)
Transformational Leaders
Leaders who provide the four
“I’s” (individualized consideration,
inspirational motivation, idealized
influence, and intellectual
stimulation)
• Management by
Exception (passive)
• Laissez-Faire
• Idealized Influence
• Inspirational Motivation
• Intellectual Stimulation
• Individual Consideration
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.
Management by Exception (passive): Intervenes only if
standards are not met.
Laissez-Faire: abdicates responsibilities, avoids making decisions.

KEEPS THE SYSTEM OPERATING SMOOTHLY

USES REWARD AND COERCIVE POWER BASES

RECOGNIZES WHAT WORKERS WANT & TRIES TO
DELIVER IT

REWARDS ACCORDING TO WORKER EFFORT

RESPONSIVE TO WORKER SELF-INTERESTS
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 purposes in
simple ways.
Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving.
Individualized Consideration: Gives personal attention,
treats each employee individually, coaches, advises.

INSPIRATIONAL, IDEA-ORIENTED, VISIONARY

DRAMATIC, AROUSES INTENSE FEELINGS

COMMUNICATES HIGH EXPECTATIONS & A NEED FOR CHANGE

UNPREDICTABLE
 RELIES ON REFERENT OR CHARISMATIC POWER
 RAISES LEVEL OF AWARENESS AND COMMITMENT
 GETS FOLLOWERS TO TRANSCEND THEIR SELF-INTERESTS
 REQUIRES TRUST AND BELIEF IN THE VISION PRESENTED
IS TRANSFORMATIONAL LEADERSHIP BUILT “ON TOP OF” TRANSACTIONAL
LEADERSHIP, OR IS IT JUST A SPECIAL CASE OF CHARISMATIC LEADERSHIP?

Facilitating Conditions
 Some aspects of transformational leadership
are relevant in most, if not all, situations
 Dynamic, unstable environment that
increases the need for change
 Leaders are encouraged to be flexible and
innovative
 Follower traits and values
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Articulate a clear and appealing vision
Explain how the vision can be attained
Act confident and optimistic
Express confidence in followers
Use dramatic, symbolic actions to
emphasize key values
Lead by example