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CHAPTER EIGHT CHANGE ORIENTED LEADERSHIP Learning Objectives 1. 2. 3. Describe the various leader, follower, cultural, and situational characteristics that contribute to charismatic leadership. Explain the positive and negative impact of charismatic leadership on organizations. Distinguish between transactional and transformational leadership. Learning Objectives 4. Understand the key role of contingent reward and the impact of management by exception. 5. Present the elements of transformational leadership and their impact on followers and organizations. 6. Describe the role of visionary and exemplary leadership in bringing about change in organizations. Charismatic Leadership “May the force be with you” Necessary Elements Of Charismatic Leadership Leader Follower Characteristics Characteristics Charismatic relationship and leadership Situational Requirements Characteristics Of Charismatic Leaders High self-confidence Strong convictions about ideas High energy and enthusiasm Expressive Excellent communication Active image-building Characteristics Of Charismatic Followers High degree of respect and esteem for the leader Loyalty and devotion to the leader Affection for the leader High performance expectations Unquestioning obedience Charismatic External Situational Requirements Sense of actual or imminent crisis Perceived need for change Opportunity to articulate ideological goal Availability of dramatic symbols Opportunity to articulate followers’ role Charismatic Internal Situational Requirements Organizational life cycle (early and late) Complex task No external reward available Flexible and organic structure Non-bureaucratic cultures Max Weber The most important early research on charismatic leadership was completed by Max Weber, who maintained that societies could be identified in terms of one of three types of authority systems: traditional, legal-rational, and charismatic. Traditional Authority System The traditions and unwritten laws of the society dictate who has authority and how this authority can be used. Legal-Rational Authority System Authority derives from society’s belief in the laws that govern it. Charismatic Authority System Authority stems from the society’s belief in the exemplary characteristics of the leader. Common Characteristics of Charismatic Leadership Vision Rhetorical skills Image and trust building Personalized leadership Situational Characteristics Crises Task Interdependence Innovation More Receptive to Change Organizational Downsizing Perspectives on Charisma The Sociological Approach 1. Extraordinary, almost magical talents 2. Crisis situation 3. Radical vision 4. Followers 5. Validation of leader through repeated success Perspectives on Charisma The Psychoanalytic Approach Intense attraction Regression Transference Projection What does this say for the followers and for positive leaders? Perspectives on Charisma The Political Approach Types of charismatic leaders: Charismatic Charismatic Charismatic Charismatic giants luminaries failures aspirants Perspectives on Charisma Charismatic leaders increase their power: Cultural myths Public address Concentric circles Perspectives on Charisma The Behavioral Approach Leader behaviors Leader-follower relations The situation Perspectives on Charisma The Attribution Approach 1. Possess a vision that is unique, but attainable 2. Act in an unconventional, counternormative way 3. Personal commitment & risk 4. Confidence & expertise 5. Personal Power Perspectives on Charisma The Communication Approach Relationship builders Visionaries Influence agents Perspectives on Charisma The Dark Side Differences in: Power Vision Relationship to followers Communication Ethics & Morals The Dark Side at Work Failures of vision Misarticulation of goals Poor management Who are the charismatic leaders we can agree on? Who are the charismatic leaders we recognize? And why? Universally Positive Cross Cultural Attributes of Leadership Encouraging and positive Motivational Dynamic Having integrity Being trustworthy Team builder Decisive Intelligent Communicator Win-win problem solver Universally Negative Cross- Cultural Attributes of Leadership Being a loner Being non-cooperative Ruthless Non-explicit Irritable Dictatorial Culturally Contingent Attributes of Leadership Risk-taking Enthusiasm How vision is communicated What constitutes good communication How much leader is seen as equal Unethical And Ethical Charisma Unethical Charisma: Uses power for personal gain Promotes own vision Closed to criticism Top-down communication Insensitive to followers Unethical And Ethical Charisma Ethical Charisma: Use power to serve others Match vision to follower needs Open to feedback Develops followers Encourages thinking Transactional Leadership Contingent reward Management by exception Transformational Leadership Factors Charisma and Inspiration Intellectual Stimulation Individual Consideration Overcome resistance to change New ideas and empowerment Motivate and encourage Transformational Leadership Theory of Transformational and Transactional Leadership James McGregor Burns’s Theory of Transformational and Transactional Leadership focused on the differences between power versus leadership and charismatic versus noncharismatic leadership Theory of Transformational and Transactional Leadership Cont. believed that leadership could take one of two forms: transactional leadership or transformational leadership maintained that power and leadership were two distinct entities Transformational Leadership Transformational leaders use idealized influence, individualized consideration, inspirational motivation, and intellectual stimulation, while transactional leaders use contingent reward, and active and passive management by exception. Follower Characteristics Identification with the Leader and the Vision Heightened Emotional Levels Willing Subordination to the Leader Feelings of Empowerment Bass’s Theory of Transformational and Transactional Leadership Transformational leaders possess charismatic-leader characteristics (vision, rhetorical skills, etc.). Transactional leaders do not possess these leader characteristics, nor are they able to develop strong emotional bonds with followers or inspire followers to do more than they thought they could. Instead, transactional leaders motivate followers by setting goals and promising rewards for desired performance. Guidelines for Transformational Leadership _ _ _ _ _ _ _ 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. Empower people to achieve the vision. Common Elements of Change-Oriented Leadership Theories Vision is key Empowerment Flexibility and change Teamwork and cooperation Elements Of A Motivating Vision Simple and clearly understandable Challenging and idealistic, while realistic and achievable Appeals to values, emotions, and ideals Forward-looking, while based on present Elements of Credibility Clarifying values Identifying what followers want Building agreement and consensus Communicating values with enthusiasm Standing up for your beliefs Role-modeling desired behaviors Practices Of Exemplary Leadership Challenging the process Creating a shared vision Role modeling Exemplary Leadership Enabling followers to implement vision Encouraging the heart To Motivate Followers, Leaders Must… Set clear standards and goals Expect the best Pay attention Personalize rewards and recognition Tell a story Celebrate together Role model CHAPTER TEN LOOKING TOWARD THE FUTURE: WHAT WILL WE BE WHEN WE GROW UP? Learning Objectives 1. 2. 3. 4. Summarize the information and knowledge that you acquired from this book and outline areas in need of further clarification. Explain the changes in the leadership context. Distinguish between previous and current definitions of leadership. Understand the challenges that face leaders in the future. What Do We Know? On the average, leaders are more energetic, motivated, intelligent, and selfconfident Traits are important, but no single trait defines leadership Power is key to leadership; its use and function in organizations is changing A contingency view is key to understanding and predicting leadership effectiveness Teams are changing leaders’ roles What Do We Know? (cont’d) An emotional bond between leaders and followers is one of the key factors to changing organizations Leaders must clarify their vision Upper echelon, strategic leadership has distinct characteristics Culture must be an integral part of any understanding of leadership What Don’t We Know? Role of traits Understanding the impact of the organizational context Full impact of culture at various levels Changes in Organizations Structural changes Changing demographics Globalization New work ethic Learning and knowledge Technology Need for flexibility Fast-paced change Consequences for Leadership New roles for leaders; emphasis on followers Understanding differences and culture Understanding global issues Accommodating different working styles Continuous training and leading knowledge workers Learning to manage change Remaining flexible Looking to the Future Leaders with a service mentality Leaders with a global perspective Leaders with an integrated view of organizations Leaders must remain flexible and open to change Leaders who are committed to continuous learning Leaders who achieve a personal balance The Collapse of Sensemaking in Organizations: The Mann Gulch Disaster The Mann Gulch Disaster Why do organizations unravel? How can organizations be made more resilient? Let’s start with what happened: What are the major features of this incident? Maclean’s Question about the Disaster What the structure of a small outfit should be when its business is to meet sudden danger and present disaster. What the smoke jumping crew an organization? Interlocking routines Simple structure (much like an entrepreneurial firm) Generic subjectivity Unsuspected Vulnerability Sudden losses of meaning Cosmology episode Vu jade – outstripping your past experience Sensemaking – reality is an ongoing accomplishment that emerges from efforts to create order and make retrospective sense of what occurs The 10:00 fire example When did Dodge lose leadership? Crew got confused ‘Throw away your tools!’ Panic Yet these members had confronted danger before. . . But not as a member of a disintegrating group Lost their framework (cosmos) and found chaos Threat-rigidity How does this relate to business? “The recipe for disorganization in Mann Gulch is not all that rare in everyday life. The recipe reads, thrust people into unfamiliar roles, leave some key roles unfilled, make the task more ambiguous, discredit the role system, and make all of these changes in an context in which small events can combine into something monstrous.” So, what can we learn about resilience? Four sources Improvisation Virtual Role Systems The Attitude of Wisdom Respectful Interaction Improvisation We don’t expect creativity under intense pressure (threat-rigidity) Creativity – figuring out how to use what you already know in order to go beyond what you currently think Bricoleur – being able to create order out of whatever materials were at hand Virtual Role Systems Each member mentally takes all roles Holographic – each member can reconstitute the group and take whatever role is needed The Attitude of Wisdom “The more we learn about a particular domain, the greater the number of uncertainties, doubts, questions, and complexities.” (The Silence of the Skies) Extreme confidence and Extreme caution preclude Curiosity, openness, complex sensing Respectful Interaction We need trust, honesty & self-respect We also need social support What are devices of mitigation? (Tenerife & Air Florida 90) When formal structure collapses, is anything left? Structures for Resilience Communication Ways to rebuild frameworks and meaning What was the structure of the smoke jumpers? There are few safe environments What structure allows people to meet sudden danger, who builds and maintains it? Leaders Do! Excellent team leaders spend more time team building Excellent team leaders listen Excellent team leaders use a range of styles What did Dodge do wrong? Changing Organizations Involves Extensive Diagnosis, Action, and Evaluation Diagnose Forces for and Against Change Select Change Agent Build Plan for Change Implement Change Strategies Evaluate Changes Institutionalize Changes Drivers of Change Technology Information People Intensity of the Forces Forces for Change GREATER THAN Forces against Change Forces for Change Forces Against Change Forces for Change LESS THAN Forces against Change Forces for Change Forces Against Change Forces for Change EQUAL TO Forces against Change Forces for Change Forces Against Change Internal and External Crises can Cause Change Internal •Major industrial accidents •Product injuries •Computer breakdown •Defective, undisclosed information •Failure to adapt/change •Sabotage by insiders •Organizational breakdown •Communication breakdown •On-site product tampering •Illegal activities •Occupational health diseases External •Widespread environmental destruction •Natural disasters •Hostile takeover •Societal crises (civil or political) •Large-scale systems failure •Sabotage by outsiders •Terrorism •Executive kidnapping •Off-site product tampering •Counterfeiting Managers Must Decide the Most Important Factors in Choosing a Change Agent Internal Change Agents •Possess better knowledge of the organization •Are more quickly available •Require lower out-ofpocket costs •Are a known quantity •Have more control and authority External Change Agents •Have more objective views of the organization •Have more experience in dealing with more diverse problems •Can call on more individuals with diverse expertise •Have more technical knowledge, competence, and skills available (Cont.) Internal Change Agents •May be too close to the problem •May hold biased views •May create additional resistance if views as part of the problem •Must be reassigned; not available for other work External Change Agents •Have less knowledge of the organization •Require higher out-ofpocket costs •Are an unknown quantity •Have longer start-up time •Reflect unfavorably on the image of management Unethical Behavior can Adversely Affect Change Efforts Emphasis on short-term revenues over long-term considerations. Routinely ignoring or violating internal or professional codes of ethics. Looking for simple solutions to ethical problems, being satisfied with quick fixes. Unwillingness to take an ethical stand if there is a financial cost. Creation of an internal environment that discourages ethical behavior or encourages unethical behavior. Dispatch of ethical problems to the legal department. View of ethics solely as a public relations tool. Unethical Behavior can Adversely Affect Change Efforts (Cont.) •Treatment of employees that differs from treatment of customers. •Unfair or arbitrary performance appraisal standards. •Lack of procedures or policies for handling ethical problems. •Lack of mechanisms for internal whistle-blowing. •Lack of clear lines of communication. •Sensitivity only to shareholder needs and demands. •Encouragement of employees to ignore their personal ethical values. Evaluation of Change Occurs at Four Levels AFFECTIVE LEARNING CHANGE BEHAVIORAL PERFORMANCE Individual Characteristics Attitude to Risk Creativity Hem – who does not want to change. Haw – who learns to laugh at his fear. Sniff – who smells change in the air. Scurry – who goes into action. The Handwriting on the Wall
