Focuses on the exchange of commodities for good behavior
Leader-Member Exchange
Low Quality LMX Relationships
Transactional Leadership
High Quality LMX Relationships
Transformational Leadership
Transformational Leadership
Involves expanding follower's
values and goals and helps followers
transcend their own self interest for
the sake of their team. The essence
of TL resides in inspiring, developing
and empowering followers, and
frequently incorporates charismatic
and visionary leadership. An
exceptional form of influence.
Components of TL
Inspirational Motivation
CHARISMA
Idealized Influence
Individual Consideration
Intellectual Stimulation
The Pygmalion Effect
Expectations alone can bring about change in
behavior. Attitude toward someone has the
power to transform that person. Positive
expectations can bring about positive changes
and negative expectations can bring about
negative changes.
Structuring Transformational Message
Articulate a clear and appealing vision
Explain how the vision will be attained
Project confidence and conviction through words and actions
Appeal to greater principles, hopes and values
Link followers' identities and
self concept to the collective
identity and success
Express confidence in followers and
ignite conviction that together as a group
you can bring about a great change
What situations call for charismatic/transformational leadership?
Unstable environments
Stressful situations
Tough economic situations
Charismatic leaders do better
than narcissistic leaders