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Motivates followers by
appealing to their self-interest
Transactional and exchanging benefits.
Transactional leadership may
leadership. involve values, but they are
values relevant to the exchange
process, such as honesty,
fairness, responsibility, and
reciprocity.
2
Charismatic leader
behaviors
Articulation of a vision,
Communication of high performance expectations of
followers
Demonstration of a high degree of confidence in followers
Emphasizing value and collective identification
Taking extraordinary risks
Making substantial personal sacrifices in the interest of the
charismatic mission.
3
Visionary leadership
4
Consequences of Charismatic Leadership
Positive Negative
Have a socialized power orientation. Personalized power orientation
They seek to instill devotion to ideology more Intentionally seek to instill devotion to themselves more than
than devotion to themselves to ideals.
They emphasize internalization rather than Authority for making important decisions is centralized in the
personal identification leader, rewards and punishments are used to manipulate and
Self-sacrifice and leading by example are used control followers, and information is restricted and used to
to communicate commitment to shared maintain an image of leader infallibility or to exaggerate
values and the mission of the unit, not to external threats to the organization.
glorify the leader. They seek to dominate and subjugate followers by keeping
Authority is delegated to a considerable them weak and dependent on the leader.
extent, information is shared openly, May use ideological appeals, but merely as a means to gain
participation in decisions is encouraged, and power, after which the ideology is ignored or arbitrarily
rewards are used to reinforce behavior changed to serve the leaders personal objectives.
consistent with the mission and Decisions of these leaders reflect a greater concern for self-
objectives of the organization. glorification and
maintaining power than for the welfare of followers.
5
Negative Charismatics
Personalized power orientation
Instill devotion to themselves
Use ideological appeals to gain power
Seek to dominate and subjugate
Centralize authority
Use punishment and rewards to manipulate
Restrict information
Self-glorifying decisions
12-6
Negative sides of charismatic
leadership
7
Organizational Effects of Negative
Charismatics
Risky decisions can result in serious failures
Make more determined enemies
Excessive optimism blinds the leader to strategic
flaws
Close identification with vision undermines
objective evaluation
12-8
Organizational Effects of Negative
Charismatics (Cont.)
Judgment may not be questioned
Reject evidence of an unrealistic vision
Followers can be inhibited from suggesting
improvements
Alienate or polarize people
12-9
Positive Charismatics
Socialized power orientation
Instill devotion to ideology
Emphasize internalization
Self-sacrifice
Lead by example
Delegate authority
Shared information
Participative decision-making
Rewards used to reinforce
12-10
Organizational Effects of Positive
Charismatics
Follower growth and development
Environmental adaptation
Achievement-oriented culture
High-performing system
Clearly understood mission
12-11
Organizational Effects of Positive
Charismatics (Cont.)
Mission embodies social values
Empowerment
Open communication
Shared information
Structures and systems support
mission
12-12