is a special quality of leaders whose purposes, powers and extraordinary determination differentiate them from others.
to have a charming and colorful personality
if people perceive a leader to have a certain characteristic, such as being visionary, more likely he/she be perceived as charismatic.
Charisma is based on perceptions, an important element of charismatic leadership involves the attributions made by group members.
Attributions of charisma are important because they lead to other behavioral outcomes, such as commitment to leaders, self-sacrifice and high performance.
A notable aspect of charismatic and transformational leaders is that their influence extends beyond immediate work group and beyond reporting relationships.
A highly charismatic leader influences external stakeholders in that he/she becomes the symbol of the organization.
Charismatic leadership is possible under certain conditions. The constituents must share the leader’s beliefs and must have unquestioning acceptance of an affection for the leader
The group members must willingly obey their leader. They must be emotionally involved both in the mission of the charismatic leader and in their own goals.
The constituents must have a strong desire to identify with the leader.
Effects are recognized such as whether by being charismatic a leader can enhance productivity, lower accidents and embrace job satisfaction.
Understanding the effects of charisma is to understand that top-level leaders sometimes lose their power and position because they are not perceived as charismatic enough.
Using charisma and a positive mood to help workers become happy is valuable. Productivity might increase as stress might be reduced.
Types of Charismatic Leaders
Socialized, personalized, officeholder, personal and divine.
Socialized Charismatic – a leader who restrains the use of power in order to benefit others. Attempts to bring group members’ values in line with his/her values.
Formulates and pursues goals that fulfill the need of group members and provides intellectual stimulation to them. Followers are autonomous, empowered and responsible.
Personalized Charismatic – serve primarily their own interest and so exercise few restraints on their use of power. Impose self-serving goals on constituents and
offer consideration and support to group members only when it facilitates their own goals. Followers are typically obedient, submissive and dependent. Might follow the leader down unethical paths.
Officeholder Charismatic – gain very high esteem through the faith others have in them. Exerts influence whether occupying a low or high-status position because he/she
has the right traits, characteristics and behaviors.
Divine Charismatic – historically important type. Endowed with a gift of divine grace. A mystical,
narcissistic, and personally magnetic savior who would rise to lead people to crisis.
Celebrity Charismatic – can be found in organization life as well as in the political and entertainment realms.
May overlap with the other types such as being socialized and personal.
Characteristics of Charismatic Leaders also apply to Transformational leaders
the outstanding characteristic of charismatic leaders is that they are charismatic, therefore they attract, motivate and lead others.
is one who brings about positive, major changes in an organization.
offer an exciting image of where the organization is headed and how to get there. Is more than a forecast, it describes and ideal version of the future of an entire organization or an organizational unit.
Masterful Communication Skills
uses colorful language and exciting metaphors and analogies.
Ability to Inspire Trust
constituents believe so strongly in the integrity of charismatic leaders that they will risk their careers to pursue the chief’s vision.
Able to make group members feel capable
enabling group members to achieve success on relatively easy projects then they praise the group members and give them more demanding assignments.
Energy and Action Orientation
are energetic and serve as role models for getting things done on time.
Emotional Expressiveness and Warmth
a key characteristic is the ability to express feelings openly.
enjoy risk so much that they feel empty in its absence. Yearn to accomplish activities others have never done before. Others admire such courage.
Unconventional Strategies to achieve success
inspires others in formulating unusual strategies to achieve important goals.
frequently toot their own horn and allow others to know how important they are.
Challenge, Prod and Poke
they test your courage and your self-confidences by asking questions like: “Do your employees really need you?”
Dramatic and Unique – in significant, positive ways is a major contributor to charisma.
This quality stems from a combination of factors such as being energetic, promoting yourself, romanticizing risk and being emotionally expressive.
Vision component of Charismatic Leader
Vision – the ability to imagine different and better future conditions and ways to achieve them. A vision is lofty, long-term goal.
Creating a vision is one of the major tasks of top management, yet quite often vision statements fails to inspire constituents.
Three Elements: 1) a reason for being beyond making money; 2) Timeless, unchanging core values and 3) ambitious but achievable goals.
Vision statements typically relate to the entire organizations, yet as a leader or manager responsible for an organizational unit can have a vision about what he/she is attempting to accomplish.
Visions have become so popular that some companies have them reproduced on wallet size plastic card, key rings and coffee mugs.
Communication Style of Charismatic Leaders – Management by Inspiration
the era of managing by dictate is being replaced by an era of managing with inspiration. An important way to inspire others is to articulate a highly emotional message.
Using metaphors and analogies – a well-chosen analogy or metaphor appeals to the intellect, the imagination and to values.
Gearing language to different audiences/adjust to the audience – must also choose the level of language that will suit their audience.
Communication Style of Charismatic Leaders – Management by Storytelling
is a technique of inspiring and instructing team members by telling fascinating stories. Is a major contributor to building a strong company culture. Also helps bring out the need for organizational change.
Extensive Use of Social Networking
to help facilitate their interpersonal communication make extensive use of social networks – both face-to-face interaction and through social media websites.
Face-t0-Face Networks – leaders are aware of the importance of face-to-face interactions for establishing effective relationships with constituents.
Is likely to invest time in such activities: having lunch with group members, visiting group members at their officers, chatting with subordinates in the parking lot or cafeteria, dropping by break rooms and attending company social functions.
Social Networking Sites – charismatic leader goes beyond the ordinary use of public social networking sites and company-special social media sites.
More charismatic use of social networking would be to post messages designed to inspire, motivate and make group members feel good about themselves and the organization.
Techniques for Developing charisma
Create Visions for others – will be a major factor in your being perceived as charismatic. A vision uplifts and attracts others.
Be enthusiastic, Optimistic and energetic
major behavior pattern is a combination of enthusiasm, optimism, and high energy.
Be Sensibly Persistent – almost-never-accept-no attitude.
Remembers People’s Names – can usually remember the names of people.
Develop Synchrony with Others
able to make connections with others
Develop a Personal Brand, Including Making an Impressive Appearance
understanding your basket of strengths. Personal brand helps attract people to accept your leadership. By creating a polished appearance, a person can make slight gains by looking good. The effect of appearance depends on the context.
not insensitive, typically explicit in giving his/her assessment of situation, whether the assessment is positive or negative.
Display an In-Your-Face Attitude
may bring you some devoted supporters, although it will also bring you many detractors
Transformational Leader – focuses on what the leader accomplishes, yet still pay attention to the leader’s personal characteristics and his/her relationships with group members.
helps bring about major, positive changes by moving group members beyond their self-interests and toward the good of the group, organization or society.
The essence of transformational leadership is developing and transforming people. They focus on more routine transactions, rewarding group member for meeting standard-contingent reinforcement.
How Transformations Take Place:
1. Raising People’s Awareness – aware of the importance and values of certain reward and how to achieve them.
2. Helping people look beyond self-interest – look to the big picture for the sake of the team and organization.
3. Helping people search for self-fulfillment – to go beyond a focus on minor satisfaction to a quest for self-fulfillment.
4. Helping people understand the need for change – understand the need for change both emotionally and intellectually.
5. Investing managers with a sense of urgency – assembles a critical mass of managers and imbues in them the urgency of change.
6. Committing to greatness – greatness encompasses striving for business effectiveness such as profits and high stock value, as well as impeccable ethics.
7. Adopting a long-range perspective and at the same time observing organizational issues from a broad rather than a narrow perspective.
8. Building trust – particularly because distrust and suspicion are rampant during a company revival.
9. Concentrating resources on areas that need the most change.
Attributes of Transformational Leaders
1. Charismatic, 2. Emotional Intelligence, 3. Vision, 4. Encourage personal development of their staff, 5. Supportive Leadership, 6. Empowerment, 7. Innovative Thinking, 8. Lead by Example, 9. Moral Reasoning
Concerns about Charismatic Leadership
Challenges to the Validity of Charismatic Leadership – leadership polarity -are often either revered or vastly unpopular.
The Dark Side of the Charismatic Leadership
1. can be exercised for evil purposes; 2. are unethical and lead their organizations and outsiders toward illegal and immoral ends; 3. people are willing to follow down a quasi-legal path because his/her personal magnetism;
4. they never admit mistakes
Contingency approach to Leadership – the essence is that the leaders are more effective when they make their behavior contingent on situational forces.
A useful perspective on implementing contingency leadership is that the manager must be flexible enough to avoid clinging to old ideas that no longer fit.
1. Organizational effectiveness is affected by situational factors not under leader control – be able to influence the situation, yet some situational factors are beyond their complete control.
2. Situations shape how leaders behave – situations are three times as strong as the leader’s personal characteristics in shaping his/her behavior.
3. Situations influence the consequences of leader behavior – might have different outcomes in different situations.
Fiedler’s Contingency Theory of Leadership Effectiveness: holds that the best style of leadership is determined by the situation in which the leader is working.
Measuring Leadership Style : The least preferred coworker (LPC) scale -measures the degree to which a leader describes favorably or unfavorably his/her least preferred coworker, an employee that could work the least well
Measuring the leadership situations – classifies situations as high, moderate and low control. The more control the leader exercises, the more favorable the situation is for the leader.
The control classifications are determined in three dimensions: 1) leader-member relations-how well the group and leader get along;
2) task structure-how clearly the procedures, goals and evaluation of the jog are defined; 2) position power – leaders authority to hire, fire, discipline and grant salary increases.
Overall Finding – leadership effectiveness depends on matching leaders to situations in which they can exercise more control. The theory states that task-motivated leaders perform best in situations of both high control and low control.
Relationship-motivated leaders perform the best in situations of moderate control.
Making situations more Favorable for the Leader – a practical implication of contingency theory is that leaders should modify situations to match their leadership style, thereby enhancing their chances of being effective.
1) Improve leader-member relations; 2) Increase task structure; 3) Exercise more position power
The Path-Goal theory of Leadership Effectiveness – developed by Robert House, specified what a leader must do to achieve high productivity and morale in a given situation.
The major proposition of the path-goal theory is that the manager should choose a leadership style that takes into account the characteristics of the group members and the demands of the task.
Matching the Leadership Style to the Situation – the Path goal theory emphasizes that the leader should choose among four leadership styles to achieve optimum results.
Environmental contingency factors are those that are not within the control of group member but influence satisfaction and task accomplishment.
Three classifications of contingency factors in the environment are:
1) the group member’s tasks, 2) the authority system within the organization, 3) the group work.
To use the path-goal theory, the leader must first assess the relevant variables in the environment, then selects one of the four styles that fits those contingency factors best:
1)Directive Style – emphasizes formal activities such as planning, organizing and controlling. When the task is unclear, the directive style improves morale.
2)Supportive Style – displays concern for group members’ well-being and creates and emotionally supportive climate.
3)Participative Style – consults with group members to gather their suggestions and then considers these suggestions seriously before making a decision. Is best suite for improving morale of well-motivated employees who perform non-repetitive task.
4)Achievement-Oriented Style – sets challenging goals, pushes for work improvement, and sets high expectations for team members.
Despite the potential contribution of path-goal theory, it contains so many nuances and complexities that it has attracted little interest for managers.
SITUATIONAL LEADERSHIP II MODEL (SLII) – develop by Kenneth Blanchard, explains how to match leadership style to the capabilities of group members on a given task.
SLII is designed to increase the frequency and quality of conversations about performance and professional development between managers and group members, so that the competence is develop, commitment takes place and turnover among talented workers is reduced.
SLII explains that effective leadership depends on two independent behaviors: supporting and directing.
A challenge in applying SLII is that the leader has to stay tuned into which task a group member is performing at any given time and then implement the correct style.
The Normative Decision Model – views leadership as a decision-making process in which the leader examines certain factors within the situation to determine which decision-making will be the most effective.
1) Decide – the leader makes the decision alone and either announces or sells it to the group.
2) Consult/Individually – present the problem to the group member individually, gathers suggestions and then makes the decision.
3) Consult/Group – present the problem to group members in a meeting, gathers their suggestions and then makes the decision.
4) Facilitate – presents the problems and then acts as facilitator, defining the problem to be solved and the boundaries in which the decision must be made. The leader wants concurrence and avoids having his/her ideas receive more weight base on position power.
5) Delegate – permits the group to make the decision within prescribe limits. He/she works behind the scenes providing resources and encouragement.
The decision-making style chosen depends on these factors: 1) Decision significance; 2) importance of commitment; 3) leader expertise; 4) likelihood of commitment; 5) group support; 6) group expertise and 7)team competence
LEADER-MEMBER EXCHANGE (LMX) AND CONTINGENCY THEORY
leaders who adapt their style to different individuals within the group or have different quality relationships with individual group members, are essentially practicing contingency leadership.
1. Leaders tend to give members of their in-group more favorable performance rating than they give to out-group members. 2. Leaders do not always develop entirely different relationship with each group member.
3. Leader of a large group is more likely to use a slightly different style with various group members. 4. A manager is more likely to act as a servant leader toward subordinates with whom he/she has high-quality exchanges.
5. Leaders are more likely to empower group member with whom they have a high-quality exchange/good relationship because they are more likely to trust those members.
Leadership During a Crisis: leading during a crisis can be regarded as contingency leadership because the situation demand that the leader emphasize certain behaviors, attitudes and traits.
Crisis leadership is the process of leading group members through sudden and largely unanticipated, intensely negative and emotionally draining circumstances:
Be Decisive – the leader should take decisive action to remedy the situation. The graver the crisis, the less time the leader has to consult a wide array of people.
Lead with Compassion – displaying compassion with the concerns, anxieties and frustrations of group members is key.
Reestablish The Usual Work Routine – encourage people to return to their regular work.
Avoid a Circle-the-Wagons Mentality – strongly defend yourself against your critics and deny wrongdoing.
Display Optimism – can help energize group members to overcome the bad times. Draws action plans that give people hope for a better future.
Prevent the Crisis through Disaster Planning – a key part for planning for a physical disaster is to anticipate where you would go, how would you get in touch with employees and where you might set up a temporary workplace.
Provide Stable Performance – remaining steady under crisis conditions contributes to effectiveness because it helps team members cope with the situation.
Be a Transformational Leader – can often lead the organization out of its misery. Is likely to benefit the troubled organization both in dealing with the immediate crisis and in performing better in the long run.
Evidence-based leadership or management – an approach whereby managers translate principles based on best evidence into organizational practices. An example is to regularly express orally or in writing thanks for a job well done.
Strategy – an integrated, overall concept of how the firm will achieve its objectives.
The Nature of Strategic Leadership/Analytical – deals with the major purposes of an organization or an organizational unit and has a different focus than leadership in general.
Strategic leadership emphasizes balancing the short-term and long-term needs of the organization to ensure the enduring success of the organization.
Strategic leadership is the process of providing direction and inspiration necessary to create or sustain an organization.
Is a complex of personal characteristics, thinking patterns and effective management centering on the ability to think strategically
High-Level Cognitive Activity of the Leader – ability to think conceptually, absorb and make sense of multiple trends and condense all this information into a straightforward plan of action.
Systemic thinking – the person thinks in terms of a system and the process gets quite complex. Long-term thinking is a key part of strategy. Creative problem solving because the strategic leader has to develop alternative course of action for shaping the organization.
Anticipating and Creating a Future – the leader must accurately forecast or anticipate the future.
Revolutionary and Contrarian Thinking – incremental changes can move an organization forward in a major way. Must think revolutionary and create rules for others to follow.
Creating a Vision – a carefully and articulated vision helps us know who we are and who we are not.
CONDUCTING A SWOT ANALYSIS – Strategic planning encompasses those activities that lead to the statement of goals and objective and the choice of strategy.
SWOT Analysis – a method of considering internal strengths and weaknesses as well as external opportunities and threats in a particular situation.
SWOT Analysis represents an effort to examine the interaction between the particular characteristics of your organization or organizational unit and the external environment, or marketplace in which you compete.
Internal Strengths – assessing factors within the organization that will have a positive impact on implementing a plan. Use your own judgment and intuition and also ask knowledgeable people.
Internal Weaknesses – strategy developer takes a candid look at factors within the firm that could have a negative impact on the propose plan. Consider the risks of pursuing a particular course of action.
External Opportunities – to assess socioeconomic, political, environmental and demographics factors among others to estimate what benefits they may bring to the organization. Creating a culturally diverse customer base. Use your imagination and visualize the possibilities.
Useful opportunities: 1) Changes in technology and markets on a broad or narrow scale; 2) changes in government policy related to your field; 3) changes in social patterns, population profiles, lifestyles and so forth.
External Threats – to assess what possible negative impact socioeconomic, political, environmental and demographic factors may have on the organization.
What obstacles do you face? What is your competition doing? Are the required specifications for your job, products or services changing? Is changing technology changing your ability to compete successfully?
Carrying out a SWOT analysis often illuminating in terms of both pointing out what needs to be done and putting problems into perspective.
A sampling of business strategies formulated by Leaders: are often classified according to their focus of impact: corporate level, business level or functional level.
1. Differentiation – seeks to offer a product or service that the customer perceives as being different from available alternative.
2. Cost leadership – produce a product or service at a low cost in order to lower the selling price and gain market share.
3. Focus or niche – concentrates on a specific regional marker or buyer group. The company will either use differentiation or a cost leadership approach.
4. High Quality – to offer goods or service of higher quality than the competition. Leaders continue to emphasize quality even if there is less explicit emphasis today on formal quality programs than in the past.
5. Imitation – if you cannot be imaginative, why not imitate the best? The company waits for the right time to introduce a lower-price competitor. Benchmarking is a form of learning by watching.
6. Strategic alliances – form alliances or share resources with other companies to exploit the market opportunity. It is also known as virtual corporation. Have become more common as leaders in the high-tech industry attempts to capitalize on the strengths of other companies.
7. Growth through acquisition – standard strategy for growth is for one company to purchase others. Growth in size is important, but companies may purchase other companies to acquire new technology or complete a product line.
8. High Speed and first-mover strategy – focus on speed in all of their business activities, including product developments, sales response and customer service. Use time as a competitive resource.
9. Product and global diversification – offer a variety of products and services and to sell across the borders to enhance market opportunities.
10. Sticking to core competencies – believe they will prosper if they confine their effort in activities they perform best. Becoming very good at one thing is a world of companies that spread themselves into many areas where they lack depth.
11. Brand leadership – succeeding through developing the reputation of a brand name can be considered a business strategy.
12. Focus on environmental sustainability – focus on being green, that is, engaging in many activities that help sustain the external environment.
13. Competitive advantage through hiring talented people – build the organization with talented, well-motivated people at every level. Find and keep great people.
All these impressive strategies have limited impact unless they are implemented properly, meaning that effective management must support strategic leadership.
KNOWLEDGE MANAGEMENT (KM) AND THE LEARNING ORGANIZATION
Knowledge Management is a concerted effort to improve how knowledge is created, delivered and applied. When knowledge is managed effectively, information is shared as needed.
Learning organization – one that is skilled at creating, acquiring and transferring knowledge and at modifying behavior to reflect new knowledge and insight.
Knowledge Management deals with a cultural focus on knowledge sharing. Managing knowledge is an important leadership role because so few organizations make systematic use of the collective wisdom of employees.
Knowledge Management 3 Component;
Knowledge Creation – use to spur innovation.
Knowledge Dissemination – through information technology is the most frequent activity of KN
Knowledge Application – process of getting workers better at what they do.
General Format of KM Programs – sometimes take the form of a computer-based system for collecting and organizing potentially useful information. Many systems rely on person-to-person exchange of information
Leadership initiatives for enhancing the learning organization. Building Blocks: 1) supportive learning environment – employees should not fear being belittled or marginalized when they disagree with their manager or coworkers or ask naïve questions.
2. Concrete learning processes and practices – a company to hold debriefing sessions discussing what went right or wrong
3. leadership that reinforces learning – leaders actively questions and listen to employees, dialogue and debate as well as learning.
3. Strategic intent to learn – organizational learning becomes a vehicle of gaining competitive advantage.
4. Creating a share vision – enhances learning as organization members develop a common purpose and commitment
5. Employees are empowered to make decisions and seek continuous improvement – develop a community of learning in which every worker believes that they can contribute to a smarter, more effective organization.
6. Systems thinking – helps organization members regard the organization as a system in which everybody’s work affects the activities of everybody else.
System thinking – keeping the big picture foremost in everybody’s mind and being keenly aware of the external environment.
7. Personal mastery of the job – contribute to team learning, an essential part of learning organization.
8. Action learning – participants are asked to work in teams to attach a significant organizational problems, such as decreasing the cycle time on a project.
9. Learning from failure – a company that diversified into an area unsuccessfully might analyze why it failed and then not repeat the same mistake.
10. Encourage continuous experimentation – encourage workers to learn from competitors, customers, suppliers, and other units within the organization.
11. Political skills to make connections with and influence others – discover effective methods
12. Encourage organizational members to think creatively – to imagine possibilities that do not already exist.
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