Lecture 4

Transformational leadership (TL) part of “New Leadership” paradigm:

-more attention to charismatic and affective elements of leadership

TL is a process that:

-changes and transforms individuals

-Is concerned with emotions, values, ethics, standards, and long-term goals

-Very popular concept in contemporary leadership research

Transactional: focus on exchange between leader and followers (e.g., promotions for performance)

Fulfilling the job contract. Nothing from LMX theory where everyone is in one group with good relationships and motivation. There might be an in- and out-group in transactional but the focus is on the job contract

Transformational: connection between leader and followers that

raises the level of motivation and morality in both parties

It’s not only about job contract but more about the (intrinsic) motivation. This intrinsic motivation comes not only from salary, but from responsibility, status, reputation & good contact to the leader. Values, Ethics, moral ideas are all part of transformational leadership

Transactional factors:

1. Contingent reward

-> The exchange process between leader and follower in terms of completing the tasks and job description

What are the management-by techniques (From goal setting theory)?

You are leading people by management by objectives

Versicherungsvertreter: They have numbers for every month and you check them

Here in Transactional Leadership: Management by exception (Two forms):

1. Active: Leader is closely looking on mistakes of the subordinates. Very direct micromanagement

2. Passive: Leader is only intervening once a mistake was done. Then the leader is monitoring, mentoring and schooling.

-> Consequence: Leader finds out what the patterns/sources of the mistakes are. Then he can help the subordinate to fill the gap

Management by exception (MBE) is a workplace practice that allows employees to work more independently and only involve their managers on specific issues or “exceptions” to normal operations. The practice uses both active and passive management

Transformational leadership is more long-run in contrast to transactional leadership approach.

Transformational long-run goals (Leadership strategic idea:

-Idea that you are developing -> It’s about going beyond the expectations -> People are doing more because they like the company and the leader because the leader brought you in the mood for intrinsic motivation. This is the step beyond transactional leadership (Contract and fulfilling it). People are aligning with the goals of the leader and the company

Situational leadership approach is behind this. Development levels. Mentoring

Transformational Leadership:

-> Going beyond the expectations

Transactional Leadership:

-> Fulfilling the expected outcome

Charisma:

A special personality characteristic that gives a person superhuman or exceptional powers and is reserved for a few, is of divine origin, and results in the person being treated as a leader (Max Weber, 1947)

Charismatic Leadership Theory (House, 1977):

Charismatic leaders act in unique ways that have specific charismatic effects on their followers - Charismatic leaders mostly have high moral and ethical standards - Vision and a sense of mission

Charismatic leaders emphasize intrinsic rewards and de-emphasize extrinsic rewards (Shamir, House, & Arthur, 1993)

What is Charisma/Charismatic leadership?

-Strong communication skills

-Charming/Empathetic

-Confidence

-Connecting with people

-Persuiasiveness

-Influencing

-Role Model

-Talk to everyone regardless of their level (Du)

-Main task of C-Level leader: Having a vision. With a vision you are recognizable as the face of a company

Example for Amadeus Posner:

Elon Musk has a force that brings everyone together. Also Steve Jobs and Angela Merkel

Describes how leaders can initiate, develop, and carry out significant changes in organizations

Transformational leaders:

1. empower followers and nurture them to change

2. become strong role models for their followers

3. create a vision

4. are social architects (help shape organizations meaning)

are effective at working with people (throughout the process)

TL does not provide a clear set of assumptions

Using MLQ to detect leaders strengths and weaknesses

Trainings often focus on the process of creating a vision

Contingent reward

Constructive transactions

Management-by-exception:

Active and passive

Corrective transactions

Transformational leadership has an additive effect; it moves followers to accomplish more than what is usually expected of them.

They become motivated to transcend their own self-interests for the good of the group or organization (Bass & Avolio, 1990a).

In fact, transformational leaders are most likely to have a positive

impact on followers when followers identify with or find meaning in their work (Mohammed, Fernando, & Caputi, 2013).

In a study of 220 employees at a large public transport company in Germany, Rowold and Heinitz (2007) found that transformational leadership augmented the impact of transactional leadership on employees’ performance and company profit.

In addition, they found that transformational leadership and charismatic leadership were overlapping but unique constructs, and that both were different from transactional leadership.

Transformational Leadership Factors:

1. Idealized Influence (Charisma):

2. Inspirational Motivation: Discussing your exceptions on a high level. Team spirit is the important term. Also being emotional and using symbols (Goethe pin or university T-shirt) for cohesion.

3. Intellectual stimulation: Thinking outside the box -> Developing creativity and innovation power. The subordinates should help you find the error-patterns. It’s also about challenging your own- & your subordinates believes

4. Individual consideration: Delegation fits here -> You are acting as a coach & adviso, acting direct and proactive and also asking for input (1. Help reducing the weakness 2. Giving advice for more strenghts)

Idealized Influence

Factor 1 is called charisma or idealized influence. It is the emotional component of leadership (Antonakis, 2012). Idealized influence describes leaders who act as strong role models for followers; followers identify with these leaders and want very much to emulate them.

Inspirational Motivation

Factor 2 is called inspiration or inspirational motivation. This factor is descriptive of leaders who communicate high expectations to followers, inspiring them through motivation to become committed to and a part of the shared vision in the organization.

Intellectual Stimulation

Factor 3 is intellectual stimulation. It includes leadership that stimulates followers to be creative and innovative and to challenge their own beliefs and values as well as those of the leader and the organization.

Individualized Consideration

Factor 4 of transformational leadership is called individualized consideration. This factor is representative of leaders who provide a supportive climate in which they listen carefully to the individual needs of followers. Leaders act as coaches and advisers while trying to assist followers in becoming fully actualized.

Hands-off approach. Delay decision making

Laissez-Faire

Nontransactional

Depends on the task characteristics of the subordinates

The transformational approach to leadership is a broad-based perspective that encompasses many facets and dimensions of the leadership process. In general, it describes how leaders can initiate, develop, and carry out significant changes in organizations.

To create change, transformational leaders become strong role models for their followers.

It is common for transformational leaders to create a vision. The vision emerges from the collective interests of various individuals and units in an organization.

The transformational approach also requires that leaders become social architects. This means that they make clear the emerging values and norms of the organization.

Strengths:

-TL has been widely researched from many different perspectives

-TL has intuitive appeal and provides a broader view of leadership

-TL treats leadership as a process that occurs between followers and leaders and has strong emphasis on followers‘ needs, values and morals

-TL is decision-making oriented

Weaknesses:

-It lacks conceptual clarity – overlapping between each of the Four I‘s

-TL treats leadership as a personality trait or personal predisposition rather than a behavior that people can learn

-TL has the potential to be abused, because TL is concerned with people‘s values and moving them to a new vision

Authentic leadership represents one of the newer areas of leadership research.

It focuses on whether leadership is genuine and “real.”

As the title of this approach implies, authentic leadership is about the authenticity of leaders and their leadership.

Authentic leadership is still in the formative phase of development.

Furthermore, practitioners had developed approaches to authentic leadership that were not evidence-based and so needed further clarification and testing.

In attempts to more fully explore authentic leadership, researchers set out to identify the parameters of authentic leadership and more clearly conceptualize it, efforts that continue today.

-Focus on whether leadership is genuine and „real“

1. Intrapersonal definition (It’s about the self concept and how it is recognized by others (Emotional make-up). It is about leading from your personal conviction and not a copy from another leader. Based on own ethic values)

2. Developmental definition (Belongs to capability model of leadership. To the part where the career level has an impact. Here, your life experiences can be positive and negative and influence)

3. Interpersonal definition (It’s about relations)

1. Self-awareness (What is self-awareness? Knowing your own feelings and your own character and your self-concept. Being aware of your own ego and dealing with criticism -> Process where the individual understands himself)

2. Internalized moral perspective (These are you ethical/moral views and values)

3. Balanced processing (Ability to analyze information objectively. Being open to other opinions (Circles back to LMX theory and Transformational leadership factors (Consulting with/Asking for input from other people)

   -> Analyze objectively)

4. Relational transparency (Ability to show your core values in your communication)

   
   

   
   

   
   

Focus on the characteristics of leaders

Five essential qualities of AL which leaders/individuals should develop to be an AL (You can train and develop them)

For example: Purposeful

(1) They have a strong sense of purpose,

(2) they have strong values about the right thing to do, (Being value-centred)

(3) they establish trusting relationships with others, (Communication flow, Open-door)

(4) they demonstrate self-discipline and act on their values, and

(5) they are sensitive and empathetic to the plight of others (George, 2003)

1. Positive psychological capacities (e.g. motivating people. Psychological capacities/Characteristics are: Being optimistic, creating hope, resilience, confidence)

2. Moral reasoning (Capacity to make ethical decisions about issues of right and wrong)

3. Critical life events (Parallel to: Capability model of leadership. Consequence from critical life events for your personality: They are acting as a catalyst for change in your behavior. It also depends how you act on them. They can make you more authentic)

Strengths:

-AL fulfills an expressed need for trustworthy leadership in the society

-AL provides broad guidelines for individuals who want to become AL‘s

-AL has an explicit moral dimension and it emphasizes that authentic values and behaviors can be developed in leaders over time

-You can learn it and practice it

Weaknesses:

-The authenticity paradox

-The moral component of AL is not fully explained

-New research is required to determine if the millenial generation can be effectively led by authentic leaders

-It is not clear how AL results in positive organizational outcomes and it is not clear whether AL is sufficient to achieve organizational goals

You can train and develop your emotional intelligence competence. Important for business and private life. Emotional Intelligence is twice as important as the technical skills because it influences communication and relationships.

Three skills approach there is a little bit of this.

Emotional Intelligence - EQ - is a relatively recent behavioral model, rising to prominence with Daniel Goleman's 1995 Book called 'Emotional Intelligence’.

The early Emotional Intelligence theory was originally developed during the 1970s and 80s by the work and writings of psychologists Howard Gardner (Harvard), Peter Salovey (Yale) and John 'Jack' Mayer (New Hampshire).

Emotional Intelligence is increasingly relevant to organizational development and developing people, because the EQ principles provide a new way to understand and assess people's behaviours, management styles, attitudes, interpersonal skills, and potential.

Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more.

Knowing your own feelings and your own character and your self-concept. Being aware of your own ego and dealing with criticism.

Also having an idea of how you are perceived by others (Important because it’s the only way to influence others/for having successful negotiations. Standing in the shoes of others

Process where the individual understands itself

Characteristics:

-Ability to have a self-depreciating sense of humor. Making yourself smaller is sympathetic

-Confidence: Playing your strengths

To be successful requires the effective awareness, control and

management of one's own emotions, and those of other people.

EQ embraces two aspects of intelligence:

Understanding yourself, your goals, intentions, responses,

behaviour and

Understanding others, and their feelings.

Emotional Intelligence embraces and draws from numerous other branches of behavioural, emotional and communications theories, such as NLP (Neuro-Linguistic Programming), Transactional Analysis, and empathy.

By developing our Emotional Intelligence in these areas and the five EQ domains we can become more productive and successful at what we do, and help others to be more productive and successful too.

The process and outcomes of Emotional Intelligence development also contain many elements known to reduce stress for individuals and organizations, by decreasing conflict, improving relationships and understanding, and increasing stability, continuity and harmony.

1. Knowing your emotions (Self-awareness)

2. Managing your own emotions (Self-regulation)

3. Motivating yourself (Motivation)

4. Recognizing and understanding other people’s emotions (Empathy)

5. Managing relationship (Social skills / Interpersonal expertise)

1. What is self-awareness (Knowing your emotions)?

   Knowing your own feelings and your own character and your self-concept. Being aware of your own ego and dealing with criticism.

   Also having an idea of how you are perceived by others (Important because it’s the only way to influence others/for having successful negotiations. Standing in the shoes of others

   Process where the individual understands itself

   Characteristics:

   -Ability to have a self-depreciating sense of humor. Making yourself smaller is sympathetic

   -Confidence: Playing your strengths

   Skill indicators:

   -Knowing when you’re thinking negative (Being in a bad mood but not letting others know)

   -Knowing when you’re thinking aggressively

   -Knowing when you’re thinking defensively (You need to think forward (negotiations))

   -Knowing when you’re thinking naively (Carelessly trusting everybody)

   
   

   
   

2. Self-regulation (Managing your emotions) (Think before you act - Think around the corner and about the consequences)

   -> (Signs: Capacity to find your emotional perspective and to downsize your impulses. Thoughtfulness and integrity)

   Consequence of ability to control your emotions/impulses:

   -Creating an atmosphere of fairness and trust

   Skill indicators:

   -Ability to identify shifts in your emotional thinking

   -Ability to be productive even if you’re thinking negatively

   -Ability to be productive even if you’re in a psychological X

1. Motivation (Motivating yourself)

   Characteristics:

   -Passion for the work

   -Desire to raise the bar/frontier

   -Commitment and Optimism (Going the extra-mile (Transformational Leadership & Leading by example))

   Skill indicator:

   -Ability to regroup from a set-back (Never quit, Regroup from a push-back)

1. Empathy (Recognising and understanding other people’s emotions) - Ability to read between the lines & understanding other people’s current emotional state

   -Understanding the emotional make-up

   -Being aware of other people’s feelings and helping them to articulate them

   -An atmosphere of transparency, trust and productivity (Also Authentic Leadership) (Servant Leadership)

   -Skill to deal with group dynamics (Build cohesion)

   Downside of empathy:

   -

   Three areas where leaders need empathy?

   1. Teamwork (Help members for collaboration & Understanding multi-cultural teams)

   2. Global business (Globalization with different (company-) cultures

   3. HR-/Talent management

   Empathetic leaders increase satisfaction

   Empathetic leaders decrease employee turnover

1. Social skills (Managing relationships)

   Characteristics:

   -Ability to persuade others

   -Ability to increase corporation in a team

   Skill indicators:

   -Ability to build consensus/commitment in the team

   -Ability to establish trust

   -Ability to work out/solve conflicts in a sustainable/constructive way (Skills approach - Solving problems)

   -Ability to mediate between conflict parties

Empathy and trust are a platform for effective understanding,

communication and relationships.

Empathy and trust are essential to develop solutions, win and retain business, and avoiding or diffusing conflict.

Empathy and trust are essential for handling complaints and retaining customers.

Additional components:

-Social awareness

->Organisational awareness

-Relationship expertise

It is something that anyone can learn.

Emotional intelligence isn’t a genetic trait or a natural talent. It is a skill that anyone can learn.

It can help to reduce bullying.

When we understand our emotions and can tap into the emotions of others, then we get to feel a little bit of what others are feeling around us.

It improves a person’s social effectiveness.

By understanding the emotions of everyone else around them, a person exercising their skills of emotional intelligence can find ways to relate to others at a core level.

It reduces the likelihood of engaging in personally destructive

behaviors.

People who have enhanced their emotional intelligence skills over time are less likely to engage in self-destructive behaviors.

Making decisions becomes a lot faster.

Emotional decisions are a lot easier to make than logical decisions. Logic dictates that every scenario be evaluated, estimated, and anticipated.

It can be used in any environment, situation, and circumstance.

If you have a skill in typing 140 words per minute, are you going to be able to translate that skill into carpentry?

It can be used to manipulate people.

Emotions are one of the core components of our being. We experience emotions in virtually every moment of every day.

It prevents others from using their critical thinking skills.

When someone knows how to “put their emotion on a plate,” then that emotional exposure can help others relate through that contact.

It can be used for personal gain.

Emotional intelligence can also be used to manipulate others for personal gain.

It can make a person more open and agreeable.

Social factors are very important within the scope of human existence.

It takes time to develop this skill.

Although everyone can develop emotional intelligence skills, this is a time investment that can be quite extensive and personal.

Emotional intelligence is a skill that not everyone takes

seriously.

Information is the primary currency today and society often separates emotions from words.