37. Transformational Leadership
Transformational leadership is broader in scope than other leadership theories
Revolution and large scale change in organizations, strategies, and cultures.
Typically involves employee empowerment.
More than dealing with strategic direction and managing relationships.
Transformational vs charismatic leadership
Charisma is an essential, but insufficient component.
Key elements of transformational (Bass):
- Intellectual stimulation (to generate new ideas and empowerment)
- Charisma and inspiration (to overcome resistance to change)
- Individual consideration (to motivate and encourage)
Transformational vs. transactional leadership
Different from transactional leadership, which is based on “exchange”
- Contingent rewards: exchange rewards and resources for motivation/productivity
- Management by exception: only intervene when there is a problem
Transactional leadership (continued)
Keys to transactional leadership
- Clear, well communicated goals, behaviors, and outcomes
- Monitor and measure performance
- Provide frequent feedback
Transformational leadership vs. reinventing, reengineering, and TQM
These are all processes intended to implement transformational leadership objectives.
Kotter’s eight stage process of creating major change
Establish a sense of urgency
Create the guiding coalition
Develop a vision and strategy
Communicate the change vision
Empower broad-based action
Consolidate gains and produce more change
Anchor new approaches in the culture