Theoretical Perspectives: Transformational & Transactional Leadership

1. Theoretical Perspectives:Transformational & Transactional Leadership OUTLINE: I. A theory of transformational leadership II. The four "I" model III. Film analysis

2. Where are we now? • Trait approach • Behavioral/situational approach • Contingency approaches • Leader and follower relationship approach …..now onto transformational leadership…

3. Leadership

4. Transformational Leadership • Emphasis on understanding exceptional leaders • Understand why visionary leaders are able to change their organizations

5. Transformational Leaders • Abraham Lincoln & Martin Luther King, Jr. • Each of whom led the US in the debate and fight for an end to racism and slavery. • Lee Iacocca • 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."

6. 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

7. Transactional Leadership • Two behavioral components • 1. Contingent reward • 2. Management-by-exception

8. Transformational Leadership • Four behavioral components (Bass): • 1. Idealized influence/ Charisma • 2. Inspiration • 3. Intellectual stimulation • 4. Individualized consideration

9. Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration Contingent reward Management-by-exception Transformational Transactional Laissez-faire Leadership Leadership Leadership Leadership Factors • Laissez-faire

10. Transformational Leadership and Performance • Many favorable effects found! • Performance • Qualitative vs quantitative performance • Satisfaction • Cohesiveness