Page 375 - leadership-experience-2008

CikguOnline
CikguOnline
356 PART 4: THE LEADER AS A RELATIONSHIP BUILDER
leadership, two leadership styles that rely strongly on a leader’s personal character-
istics as a source of power. We next examine what we mean by the terms power and
infl uence, look at some sources and types of power, and outline ways leaders exercise
power and influence through political activity. Finally, we briefly consider some ethi-

cal aspects of using power and infl uence.
Transformational and Charismatic Leadership

Charismatic and transformational leadership have been of great interest to re-
searchers. One of the key characteristics of both charismatic and transformational
leadership is that they are based largely on the strength of the leader’s personal
power rather than on a position of authority granted by an organization.

Transformational versus Transactional Leadership
Transformational leadership typically has a substantial impact on followers and
can potentially renew an entire organization. One way to understand transfor-
mational leadership is to compare it to transactional leadership. The basis of
2
ransactional leadership
T
Transactional leadership transactional leadership is a transaction or exchange process between leaders and fol-
a transaction or exchange
a transaction or exchange lowers. The transactional leader recognizes followers’ needs and desires and then
process between leaders and
process between leaders and

followers clarifies how those needs and desires will be satisfied in exchange for meeting
followers
specified objectives or performing certain duties. Thus, followers receive rewards

for job performance, whereas leaders benefi t from the completion of tasks.
Transactional leaders focus on the present and excel at keeping the organiza-
tion running smoothly and efficiently. They are good at traditional management

functions such as planning and budgeting and generally focus on the impersonal
aspects of job performance. Transactional leadership can be quite effective. By
clarifying expectations, leaders help build followers’ confidence. In addition, sat-

isfying the needs of subordinates may improve productivity and morale. However,
because transactional leadership involves a commitment to “follow the rules,”
transactional leaders maintain stability within the organization rather than pro-
moting change. Transactional skills are important for all leaders. However, in to-
day’s world, in which organizational success often depends on continuous change,
effective leaders also use a different approach.
Transformational leadership Transformational leadership is characterized by the ability to bring about signif-
ransformational leadership
T
leadership characterized by the
leadership characterized by the icant change in both followers and the organization. Transformational leaders
3
ability to bring about signifi cant
ability to bring about signifi cant
change in followers and the have the ability to lead changes in an organization’s vision, strategy, and culture
change in followers and the
organization
organization as well as promote innovation in products and technologies. Rather than analyz-
ing and controlling specifi c transactions with followers using rules, directions,
and incentives, transformational leadership focuses on intangible qualities such
as vision, shared values, and ideas in order to build relationships, give larger
meaning to separate activities, and provide common ground to
Action Memo
enlist followers in the change process. Transformational leader-
ship is based on the personal values, beliefs, and qualities of the
As a leader, you can act like a
leader rather than on an exchange process between leaders and
transformational leader by rallying people
followers.
around an inspiring vision, expressing
Recent studies support the idea that transformational leadership
optimism about the future, helping
has a positive impact on follower development and follower perfor-
followers’ develop their potential, and
happen. mance. Moreover, transformational leadership skills can be learned and
empowering people to make change
4
are not ingrained personality characteristics. However, some person-
ality traits may make it easier for a leader to display transformational
leadership behaviors. For example, studies of transformational leaders