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Theoretical Perspectives: Transformational & Transactional Leadership OUTLINE: I. A theory of transformational leadership II. The four "I" model III. Film analysis Where are we now? Trait approach Behavioral/situational approach Contingency approaches Leader and follower relationship approach …..now onto transformational leadership… Leadership Transformational Leadership Emphasis on understanding exceptional leaders Understand why visionary leaders are able to change their organizations Transformational Leaders Abraham Lincoln & Martin Luther King, Jr. Lee Iacocca Each of whom led the US in the debate and fight for an end to racism and slavery. Led Chrysler out of debt and back to a viable company. FDR Stirred the nation out of the Great Depression; "We have nothing to fear but fear itself." Bass' Theory of Transformational Leadership Leaders transform followers from focus on self-interest to focus on collective interest Creation of high commitment to the leader's mission by followers Understand the behaviors and psychological processes of leaders that produce performance beyond expectations by followers Transactional Leadership Two behavioral components 1. Contingent reward 2. Management-by-exception Transformational Leadership Four behavioral components (Bass): 1. Idealized influence/ Charisma 2. Inspiration 3. Intellectual stimulation 4. Individualized consideration Leadership Factors Transformational Leadership Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration Transactional Leadership Contingent reward Managementby-exception Laissez-faire Leadership Laissez-faire Transformational Leadership and Performance Many favorable effects found! Performance Qualitative vs quantitative performance Satisfaction Cohesiveness