Transactional,Charismatic

and Transformational
Leadership.

What leaders do.

Transactional Leadership
https://www.youtube.com/watch?v=O
PwoUO9D54U
• Transactional leadership is a leadership
style that utilizes rewards and
punishments to motivate and direct
followers.
• This approach to leadership, also sometimes
referred to as managerial leadership,
emphasizes the importance of structure,
organization, supervision, performance, and
outcomes
Charismatic leadership
https://www.youtube.com/watc
h?v=jB4ycZdeEuM
• Charismatic leadership is a leadership style
that uses communication skills, charm, and
persuasiveness to influence and inspire
others.
• A charismatic leader is able to connect with
people on a deep level and motivate them to
excel even in the face of challenges.
• A charismatic leader typically has strong
interpersonal communication skills and is
highly persuasive
 Transformational Leadership
https://www.youtube.com/watc
h?v=60O2OH7mHys
• Transformational leadership is a leadership style
that empowers people to accomplish positive
change through big vision, inspiration, and a call to
action.
• Leaders enable change by emotionally connecting
with their audience and inspiring them to achieve
something greater than themselves.
• This type of leadership usually helps to raise team
morale, encourage faster ideation, facilitate conflict
resolution, reduce disengagement and instill a
feeling of ownership within the team.
 Styles of leadership

Benevolent Team
Leader Leader
→

(Y) (Z)

concern for
people

Laissez-faire Autocratic
Leader Leader
(L) (X)

1 concern for production → 9

 Benevolent Leader
• A benevolent leader will generally adopt a growth
mindset and focus much more on the lessons
learned after a failure than the failure itself.
• This leaves more room for learning and continuous
improvement.
• The benevolent leader creates a psychologically
safe environment for his employees
 Laissez-faire Leader

• Laissez-faire leadership, also known as delegative

leadership, is a type of leadership style in which
leaders are hands-off and allow group members to
make the decisions.
• Researchers have found that this is generally the
leadership style that leads to the lowest
productivity among group members.
 Autocratic Leader
• Autocratic leadership can be defined as a
leadership style where an individual takes control
of decision-making and manages the subordinates
with little or no input.
• Autocratic Leaders takes decisions based on their
own beliefs, ethics, and moral values. They do not
seek advice from others and go by their
knowledge and experience.
Which style of leadership
works best?
Team Leader (Z) has proven to be the
most effective in general (9,9)
Requires a “balancing act” of getting
things done and having a genuine
concern for people
Theory “L”: Laissez-faire
leader
• Uninvolved - “leave them alone”
• Sees main role as passer of information
• Lets others make decisions
• Basically abdicates responsibility for team or
unit
Theory “X”: Autocratic
leader
• Lacks flexibility
• Controlling and demanding
• “carrot and stick” approach
• Focused solely on productivity
Carrot and stick motivation is a motivational
approach that involves offering a “carrot” (a
reward—for good behavior) and a “stick” (a
negative consequence for poor behavior). It
motivates staff by creating actionable goals and
desirable rewards for employees who can alter
their behavior and performance.
Theory “Y”: Benevolent
leader
• Very people oriented; encouraging
• Organizes around people
• Can be paternalistic
• “country club” atmosphere: non-competitive
Theory “Z”: Team leader

• Balances production and people issues

• Builds a working team of employees
• Team approach: involves subordinates
• Organization is a vehicle for carrying out
plans
Results of leadership styles

1. Theory L: “missing management”

▪ Very low productivity
2. Theory X: “my way or the highway”
▪ Job stress; low satisfaction; unions form
3. Theory Y: “country club”
▪ Low achievement; good people leave
4. Theory Z: “good manager”
▪ High productivity, cooperation, low turnover, employee commitment
 Origins of leadership
Are leaders born or made?

BOTH. Evidence that both inherent personality and environment are factors

■What kind of leader would you be?

 Types of Leadership Styles

• Democratic/ Participative Leadership

• Charismatic Leadership

• Transactional Leadership

• Transformational Leadership
1. Democratic/ Participative
Leadership Style
Team Agreement is needed
• Democratic leaders make the final decisions, but they
include team members in the decision-making process.

• They encourage creativity, and team members are often

highly engaged in projects and decisions.

• Team members tend to have high job satisfaction and are

productive because they're more involved in decisions.
This style also helps develop people's skills.

• Team members feel in control of their destiny, so they're

motivated to work hard by more than just a financial
reward.
 2.Charismatic Leadership

The quality of a leader that makes many

people want to follow.
Charismatic leadership involves the
use of power
Power
ν The ability to influence people to do things.
ν Five types of power
ν Coercive – based on punishment
ν Reward – Based on rewards
ν Legitimate –Based on a role
ν Expert – Based on needed knowledge
ν Referent – based on charisma
Halpert’s dimensions
ν Charisma combines power with task
orientation
ν Referent Power
ν Expert Power
ν Job or task involvement
Use of power by leaders
ν Socialized Charisma
ν Power for social good
ν Personalized charisma
ν Power for personal benefit
ν Office holder Charisma
ν Combines legitimate power with task needs
ν Personal charisma
ν Use referent power to lead
Charismatic Leadership
Characteristics
ν
Charismatic leaders high in
ν
Dominance
ν
Self confidence
ν
Need for influence
ν
Belief in own values
Charismatic Leadership Behaviors
ν Goal Articulation
ν A transcendent goal inspires a movement - I have a dream
ν Personal Image Building
ν Behaviors that create impression of competence/success
ν Prove his competence to the followers
ν Leader role modeling of value system
ν Gandhi models self sacrificing behavior of non violence
ν Leader motive arousal behavior
ν Message inspires needs in the followers that are needed to

complete the task. (message of love=needs for

affiliation=required for bringing together
ν Hindu/Muslems/Christians)
Leader communication of high performance expectations of,
and confidence in, followers
The Result
ν
Effective follower performance if the behavior
is appropriate to the task being accomplished
Leader-Followe
r Relationships

Transactional Leadership
3.Transactional Leadership
ν Classical management
ν Focus on the leader and the follower
ν Transaction
ν Work for pay
ν Work for psychological benefits (status,
recognition or esteem)
ν Requires appropriate role behavior
ν Requires clear goals and appropriate
instructions
ν Transactional leadership focuses on the task.
Transactional Leadership
ν Puts leaders and followers on opposite sides.
ν Flow of power and reward depending on
follower performance.
ν High task performance=power and rewards to
the follower.
ν Low task performance=Leader exercises
legitimate and coercive power.
ν Promotes “game-playing”
4. Transformational Leadership
Transformational leadership
ν Transforms the
environment and the
people in it
ν Focuses on building an
appropriate context and
on enhancing the d e Fo
Leade F ollow
relationships of people l
r er
within the system r

The environment
Transforming the culture
ν People can be trusted
ν Everyone has a contribution to make
ν Complex problems should be handled at the
lowest level
ν Norms are flexable adapting to changing
environment
ν Superiors are coaches, mentors, models
Transforming the leader’s behavior

ν Identifying and articulating a vision‑Behavior on the part of the

leader aimed at identifying new opportunities for his or her
unit/division/company, and developing, articulating, and inspiring
others with his or her vision of the future.
ν Providing an appropriate model‑Behavior on the part of the leader
that sets an example for employees to follow that is consistent with
the values the leader espouses.

ν Fostering the acceptance of group goals‑Behavior on the part of the

leader aimed at promoting cooperation among employees and getting
them to work together toward a common goal.
Transforming the leader’s behavior

ν High performance expectations‑Behavior that demonstrates the

leader's expectations for excellence, quality, and/or high
performance on the part of followers.

ν Providing individualized support‑Behavior on the part of the leader

that indicates that he/she respects followers and is concerned about
their personal feelings and needs.

ν Intellectual stimulation‑Behavior on the part of the leader that

challenges followers to re‑examine some of their assumptions
about their work and rethink how it can be performed.