Module 4 Transformational Theory of Leadership ; Engaging hearts and minds

trait and behaviours theories place heavy empahsis on use of positional resoruce and reward power.
Leadership positions have legitimate authoriuty over those they lead and expect respect and
compiance and can offer rewards as encouragement.
4.1.1
Challenges to out established view of leadership
yet there are cases of high insubordiantion such as dureing vietnam wars.
Also big changes in business, response to recession. Delayering and decentralisation. Span of
mangerial conteol espanded and close supervision decreased. This meant that employees needed to
tkaeon more responsibility and achieve more at a time when leaders had less resuouce power to
reward and motivate people.
4.1.2
Beyond Positonal power
'New' transformational theories to influence attidues belifes and behaviours of others the leaders
had to engae their emotions. No longer rely on positonal power but earn their influence.
Charles Manz and He nry Sims (1989), in their book Superleadership: Leading Others to
Lead Themselves, put it like this:
The most appropriate leader today is one who can lead others to lead themselves. The
more traditional image of a leader as a shining figure on a rearing white horse crying,
Follow me! may represent an incomplete view of leadership.
4.2 Moving from transactional to transformational leadership
Burns 1970 Distinction between traditional transactional leadership relying on exchanges to
generate resutsl comply with demands and leaders reward effort and complaicne. Effective
transactional leader help folwers reach personal goals ( promotion eg) and achieves organisation
goals by showing task rquiremtns and linkage between behaviour and goal.
You do this for me and i'll do that for you, either now or in te future.
4.2.1
How tranformational leaders differ
In contract transformations leaders enage the full person of the follower and apeal to their
emotionality to transcend pesonal interest to benefit from ghier order goasl values and princiles.
Eg new product finial bonuses linked to ammount of sales (pesonal and company pfoti) but
bonusmight be too small or difficult to achieve. Other produts migt suffer and suport staff ignored.
Long term succes of transaction approach is limited. Follower's needs are not considered
individualy and there is no conisderation for personal development.
In contracts transfroamtion leader gives energising and inspirational presentaion to enage teams and
make them proud of the company and prduct. Considers and suppport each individual and their
development. Focus on higher rder collective foals market share, reputation, sustaining
employement.
Kouzes an d Posner (2002) describe five practices of
exemplary leadership that closely parallel the ideas proposed in transf ormational leadership
theory.
Model the way.
Inspire a shared vision.

 Challenge the process.

Enable others to act.
Encourage the heart
4.2.2
Manageing Efficiently version leading change
Kotter (1990) suggests that tr ansactional leadership is abou t managing efficiently whereas
transformational leadership is truly about lead ership that brings about change.

increased organisational co mmitment of followers;

increased effort and financial performance;
increased job satisfaction;
greater trust in management;
increased employee innovation, harmony and good citizenship;
lower levels of work stress and burnout.

4.3 Identifying transformational leadership behaviours

Avolio 1995 Multifactor Leadership Quationnaire MLQ;
individualised consideration (IC);
intellectual stimulation (IS);
charisma (CHA);
inspirational motivation (IM).
4.3.1
Obtaining Input from those who work with the leadership
also measures transactional behaviours such as contingent reward, management by exception and
laissex faire. Altough can be taken as self asssemtnt it was intended as a 360 review with multip
raters, direct reports and mangers and clients. Also removed bias from single erpots only or halo
effect by self report ( common in white males) or underestiamtes ( females, minorities).
4.3.2
Criticisms of the transformational leadership measurment process
Valibity outside US and with female managers questioned as not intended.
Recenly in UK Alban-Metcalfe and Alimo-Metcalfe 2000 developed the Transforamtional
Leadership Questionnaire TLQ which add networking and aproachability as relevant to UK.
( different versions for public an dbusiness);
Leading and developing others
Showing genuine concern for others
Encouraging questioning, critical and strategic thinking
Encouraging change
Leading the organisation
Networking
Building a shared vision
Creating a developmental culture
Personal qualities
Acting with integrity
Decisive, risk-taking (public sector only not a differentiator in private sector)
Inspiring others
Analytical and creative thinking
Being entrepreneurial (private sector only)
4.4 Research findings of transformational leadership
Bass 1990 Both transactional and transformational approaches needed espeically in relation to

contingent reward.
Both found to be predcitive of unit performance. Easier for transformational to also act transactional
then vice versa.
The authors speculate that a transactional leadership
approach forms a solid base of follower expect ations and performance, while a transforma-tional
approach will build on that base.
Also in high turnover the transactional approach manaitans stale performace.
4.4.1
Transformational leadership and successful executives
Bennis and Nanus 1985 open ended questionnare of CEOs who were considred succesfful and
who transformed their organisation. Commonanlities;
Vision clear realtiics and attractive visions followers felt emposed as significant contributors
social architecture created a sahreed meaning that transfeormed values and culture so employess
accept new org phulosophy and directions
Trust exemplufing stnadrads of behaviours, transperent, kept promises, relaiable even in crisis
Positive self regards know strenghts and weakenss but capitalise on stenght rather then dwelel on
limiations. Similar impact on folloers.
4.4.2
Transformation Leadership and the management of change
tichy and DeVanna studied CEO who managed organisations though period of significant change.
3 stages;
Recognising the need for change easy to rest on past success but these CEO saw themselves as
agents of change and point to change encourage dissent, objective assesmetn and benchmarking
against competitios
Creating a vision for change not as an ndividual inspiration but bringing together different
viewpoints from organistion roadmap to future that employees can supporting
Institutionalisg the change breaking old mehtods and strucitre and find people to develop new
ones. New groupinds and support for find new roles.
Both Bennis and Naus and Tichy and DeVAnna illsutrate parts of many aspects of transformation
leadership. Empowers employees and causes themt to set and achieve higher aims. In order to
create the vision and implement the change, they tend to be
open to dissent and feedback, be role models for their beliefs, and be seen by followers as
articulate, competent and trustworthy. Followers appear not only to want to support the
goals set forth through the transformational leadership process but, indeed, to emulate the
leader.
4.5 Charisma and Transformational Leadership
Charisma has been described as a special gift that certain individuals pos sess, giving them the
ability to achieve extraordinary things. Important elemet of transformational leadership theory.
4.5.1.
Chracteriscs of Charismatic leadership
Weber 1947 a divinely givne gift ( trait) that impelled folowers, yet validated only through actions
of folowers.
House 1976 theory of charismatic leadership ( idneitffical to transformational leadership)
dominance, strong deisre toinflounce other, strong sense of morla value and self confidecen.
They most liekly arise in times of distress and psycological insecurity. Additioanl behviors;
Charismatic leaders set high expectations for their followers, with an accompanying
confidence that the followers can meet those expectations.
The goals tend to have moral or ideological overtones, providing a sense of a higher

purpose.
Charismatic leaders are strong ro le models for those beliefs.
Charismatic leaders appear to followers to be very competent.
Great warmth for leader and unquestioning acceptance.
Sence of worth and possiblity of success.
Many historical figures exerrted extradoriay influcen bsed on erosanlity and not position or
expertise. According to House et al. (1991), charismatic
leaders often:
are perceived as having a di vine or semi-divine quality;
have an unconditional acceptance of their authority and emotional commitment;
have hypnotic eyes and voice;
possess good oratory skills.
4.5.2
Behavioral Attributes of Charismatic leadership
Conger and Kanungo 1980s.
Stage 1; vision of idelaised chagnwe that seems impossible
Stage 2; leader communicates this vision and motivates followers to go beyond status quo and
visualise the change
Stage 3: The leader builds trust by exhibiting qualities such as expertise, success, risk-taking and
unconventional actions.
Stage 4: The leader demonstrates ways to ac hieve the vision by means of empower-ment,
behaviour modelling for followers, etc.
Similarly, Conger and Kanungo (1998) describe five behavioural attributes of charismatic
leaders:
vision and articulation;
sensitivity to the environment;
sensitivity to member needs;
personal risk-taking;
performing unconventional behaviour.
Eg Margeret Thatcher only ever female PM. - radical views, unquesttioning belief that she was
right, force of personality, risk taker, unconventioanl, communicated to fellowes with emthphors
Julian Richer retail profit, viosanrt, well respected, rewards based on customer satifcation ratings
rather than sales.
Yet not all research support charisma needs ; Jim Collins 2001 11 companies that became great ,
and had same CEO. Practiced Level 5 executive leadership - an individual who builds an
enduring greatness through a paradoxical blend of pe rsonal humility and professional will.
Compelling modesty, seem ordianry but roduce etraodridnary results.
On the other hand orgnaistions with charistmaic leaders decline after leader leaves because they
lead though perosanlity strenght rather then strong leaderhsip team.
4.5.3
Leadership distance and followers perceptions
Shamir 1995 our notions of charisma difffer dependng on how lcose we are to leader. Close
leaders images were reacher and more differneted but distal leaders immaes were still realtisitc and
not more idealised

4.6 Developing transformational leadership

Make or buy leaders ( very expesive and no gurarnateed fit). Train and devleope intenrally.
Bass 1990 ; 2 menthods
Individual coaching MLQ by reports and self. Conselling and goal settings.
Group workshops incluing brainstorming of effective/ineffective behaviours, concepts of
transformational leadership theory, videos of leadership styles in action and action plans developed.
Reseach suggesats their effectivenes. Post training MLQ scores were higher. Also subordinates
commiemtne and performnce increased ( banking managers epxeiremtns).
4.6.1
Developing trnasformationl leaderhsup with emotional intelligence
Qualities of emotional intelligence predisposes them towards trnasformation leadership style
(abilityto udnerstnad others and able to adaprt theirbehaviour). Able to motivete tehmsles and
others.
Duckett and Macfarlane 2003 EI asociated with tranformational leadership and inc perofrmnce
Slaski and Cartwright 2003 EI can be developed.
Organisations with less reulaitons create a nonthreatingn enviroment for developetns of creative,
entrapenirial and EI leadres.
4.7 Concerns about transformational leadership
4.7.1
Unethicla cahrismatic leaders.
Bass 1990 Pseduo tranformaitonal leader who influence followers but for own self interest.
Abuse power given by followers, not act in followers interst eg sales or traigc ases of mass
suicide.
4.7.2
Charisma may not be usstianable
Charisma fades especailly after cahgne is chieved and leaders try to mainaint success of status quo.
4.7.3
Does transformational leadshuip focus too much on the top?
At exclusion of others? Visioanry, change agenst, creator of visoin. Can eb seen as anto
democrative.
Resarech based on top executive might not be applicable for midde manamgnet or team specisltis.
4.7.4
Tranforamtional leadehsip's lcak of conceptual clarity
extremely baord based and overlaps with many othe rconcepts of leadership. Contracts agaisnt
transaactional leadship as an either or. Since in pracitce this is not so it is difficult to asses rleative
effectiveness.
4.8 Transformational Leadership in context
One of the strengths of transformational leadersh ip theory is the view that leadership is a
process between two individuals the leader and the follower and the needs of both
parties are to be met. Followers therefore gain a more prominent position in the leadership
process; their needs play a centr al role. This has appeal for many in todays organisations
who see the development of indi viduals and the total workforc e as being a key competitive
asset.
The theory has intuitive appeal as well. We are attracted to leaders who can paint a vision
for the future that will involv e and benefit us all. The emphasis on the moral values and
needs of followers also has appeal, as has th e emphasis on motivating individuals to move

beyond their own needs and focus on the greater good of the team, the company or the
community (Howell and Avolio, 1992).
A broad body of research that has accumulated since the 1970s has enhanced our under-standing of
transformational leadership theo ry. Often focusing on top-level leaders who
have been identified as highly effective, there have been well over 200 theses, dissertations,
research projects and so on conducted in this area (Northouse, 1997). Leadership Quarterly
(1993, Issue 3) even devoted a whole issue to charisma, one of the most central themes of
transformational leadership.
An additional piece of good news for organisations is to recall that many authorities
believe transformational leadership skills and co mpetencies can be developed by investment
in training and development.
It appears that the demands of todays business world require a new and different set of
competencies as embodied in the transformational approach. Transformational leadership
offers rich promise to organisations competing in a faster-changin g world with greater
complexity and in which employees are continually expected to take on more and different
responsibilities.