Leading Change

Management as previously defined includes the functions of leading, planning,

organizing and controlling. But recent work on leadership has begun to distinguish leadership
as something more: a quality that inspires and motivates people beyond their normal levels of
performance.

Research has found that some leadership approaches are more effective than others for
bringing about change in organization.

Transactional Leader
• A leader who clarifies subordinates’ role and task requirements, initiates structure, provides
rewards and displays consideration for subordinates.
• The transactional leader’s ability to satisfy subordinates may improve productivity.
• Transactional leaders excel at management functions.
• They are hardworking, tolerant and fair minded.
• They take pride in keeping things running smoothly and efficiently.
• They often stress the impersonal aspects of performance such as plans, schedules and
budgets.
• They have a sense of commitment to the organization and conform to organizational norms
and values.
Transactional leadership is important to all organizations, but leading change requires a
different approach.

Charismatic Leadership
Charisma has been referred to as “fire that ignites followers’ energy and commitment, producing
results above and beyond the call of duty.”

An enthusiastic, self-confident leader whose personality and actions influence people to behave
in certain ways.

Characteristics of charismatic leaders:

• Have a vision
• Are able to articulate the vision
• Are willing to take risks to achieve the vision
• Are sensitive to the environment and to follower needs
• Exhibit behaviors that are out of the ordinary

Effects of Charismatic Leadership

• Increased motivation, greater satisfaction
• More profitable companies
• Charismatic leadership may have a downside:
• After recent ethics scandals, some agreement that CEOs with less vision, and more ethical
and corporate responsibility, might be more desirable
Effects of Charismatic Leadership.
a. An increasing amount of research shows impressive correlations between charismatic
leadership and high performance and satisfaction among followers.
b. Most experts think that individuals can be trained to exhibit charismatic behaviors.
c. Charismatic leadership may not always be needed to achieve high levels of employee
performance. It may be most appropriate when an employee’s job has a lot of ideological
content.

Becoming Charismatic
a. People can be trained to be charismatic. After being trained, groups working under them did
better than groups working under leaders not trained to be charismatic.
b. Individuals taught to articulate a sweeping goal, communicate high performance
expectations, exhibit confidence that subordinates will achieve goals, and empathize with
subordinates.
c. Individuals taught to project a powerful, confident, and dynamic presence.
d. Individuals taught to use a captivating and engaging voice tone.
e. Charismatic nonverbal behaviors: lean toward follower when communicating, maintain eye
contact, have relaxed posture and animated facial expressions.

Being Charismatic Not Always Appropriate.

a. More likely to occur when follower’s task has ideological purpose or when there is high stress
and/or uncertainty in environment.

Visionary Leadership
Vision is an attractive, ideal future that is credible yet not readily attainable.

A leader who creates and articulates a realistic, credible, and attractive vision of the future that
improves upon the present situation

Visionary leaders have the ability to:

• Explain the vision to others
• Express the vision not just verbally but through behavior
• Extend or apply the vision to different leadership contexts

Visionary leadership is described as going beyond charisma with the ability to create
and articulate a realistic, credible, attractive vision of the future for an organization or
organizational unit that grows out of and improves on the present.

a. If the vision is properly selected and implemented, it can be so energizing that it incites
individuals to use their skills, talents, and resources to make it happen.

b. A vision differs from other forms of organizational direction in that it uses compelling imagery,
taps into people’s emotions and energy, and creates the enthusiasm that people need to bring
energy and commitment to the workplace.
c. The key properties of a vision are that it has inspirational possibilities that are value centered,
are realizable, have superior imagery, and are well articulated.

These leaders have an emotional impact on subordinates because they strongly believe
in the vision and can communicate it to others in a way that makes the vision real, personal and
meaningful to others. Charismatic leaders include Mother Theresa, Adolf Hitler, Martin Luther
King, Jr., Osama bin Laden and Ferdinand Marcos.

Transformational Leadership
Leaders who inspire followers to go beyond their own self-interests for the good of the
organization. Leaders who have a profound and extraordinary effect on their followers

• Women tend to use transformational leadership

• Men tend to use transactional leadership

Started with von Pierer, CEO of Siemens, and allows dramatic improvements in management
effectiveness.

Transformational managers:
• Make subordinates aware of how important their jobs are by providing feedback to the
worker.
• Make subordinates aware of their own need for personal growth and development.
• Empowerment of workers, added training help.
• Motivate workers to work for the good of the organization, not just themselves.

 Transformational leaders are charismatic and have a vision of how good things can be.
 They are excited and clearly communicate this to subordinates.
 They openly share information with workers.
 Everyone is aware of problems and the need for change.
 Empowers workers to help with solutions.
 Transformational leaders engage in development of workers.
 Manager works hard to help them build skills.
 Involves managers using the reward and coercive power to encourage high
performance.
 Managers who push subordinates to change but do not seem to change themselves are
transactional.
 The transactional manager does not have the “vision” of the Transformational leader.

USING POWER AND INFLUENCE:

Used to affect other’s behavior and get them to act in given ways.

Power is the potential ability to influence others’ behaviour. While influence is the effect
persons’ actions have on the attitudes, values, beliefs, or behaviour of others.
Position Power
– Legitimate power
• The power a leader has as a result of his or her position. A managers authority resulting
by their management position in the firm.
Ex. Can be power to hire/fire workers, assign work.

– Coercive power
• The power a leader has to punish or control
Ex. Ranges from verbal reprimand to pay cuts to firing.
Can have serious negative side effects.

– Reward power
• The power to give positive benefits or rewards. It is based on the manager’s ability to
give or withhold rewards. Effective managers use reward power to signal employees
they are doing a good job
Ex. Pay raises, bonuses, verbal praise.

Personal Power
– Expert power
• The influence a leader can exert as a result of his or her expertise, skills, or knowledge.
It is based on special skills of leader. First & middle managers have most expert power.
Often found in technical ability

– Referent power
• The power of a leader that arises because of a person’s desirable resources or admired
personal traits. It results from personal characteristics of the leader which earn worker’s
respect, loyalty and admiration. Usually held by likable managers who are concerned
about their workers

POST-HEROIC LEADERSHIP FOR TURBULENT TIMES

Humility means being unpretentious and modest rather than arrogant and prideful.
Humble leaders don’t have to be the centre of things. They quietly build a strong, enduring
company by developing and supporting others rather than touting their own abilities and
accomplishments. Five approaches that are in tune with post-heroic leadership for turbulent
times are servant leadership, Level 5 leadership, interactive leadership, e-leadership and moral
leadership.

Servant Leadership
A leader who works to fulfil subordinates’ needs and goals as well as to achieve the
organization’s larger mission. Servant leaders give things away – power, ideas, information,
recognition, credit for accomplishments, even money.
Servant leaders often work in the nonprofit world because it offers a natural way to apply
their leadership drive and skills to serve others.
Level 5 Leadership
A study conducted by Jim Collins and his research associates, its key characteristic is
that it is an almost complete lack of ego. Despite their personal humility, Level 5 leaders have a
fierce determination to do whatever it takes to produce great and lasting results for their
organization. This is most evident in the area of succession planning.

Fig. “The Level 5 Leadership Hierarchy”

Level 5: The Level 5 Leader

Builds
Builds an
an enduring
enduring great
great organization
organization through
through aa combination
combination of
of personal
personal humility
humility and
and professional
professional resolve.
resolve.

Level 4: Effective Executive

Builds wide spread
Builds wide spread commitment
commitment to
to aa clear
clear and
and compelling
compelling vision;
vision; stimulates
stimulates people
people to
to high
high performance
performance

Level 3: Competent Manager

Sets plans and organizes people for the efficient and effective pursuit of objectives.

Level 2: Contributing Team Member

Contributes
Contributes to
to the
the achievement
achievement of
of team
team goals;
goals; works
works effectively
effectively with
with others
others in
in aa group.
group.

Level 1: Highly Capable Individual

Productive contributor, offers
Productive contributor, talent, knowledge,
offers talent, knowledge, skills
skills and
and good work habits
good work habits as
as an
an individual
individual employee
employee

INTERACTIVE LEADERSHIP
A leadership style characterized by values such as inclusion, collaboration, relationship
building and caring. It has been found to be common among female leaders. It means that the
leader favours consensual and collaborative process, and influence derives from relationships
rather than position power and formal authority.

E-LEADERSHIP
In a virtual environment, leaders face a constant tension in trying to balance structure
and accountability with flexibility. Effective e-leaders set clear goals and timelines and are very
explicit about how people will communicate and coordinate their work.

MORAL LEADERSHIP
Distinguishing right from wrong and choosing to do right in the practice of leadership. It
requires courage and ability to step forward through fear and act on one’s values and
conscience. Moral leaders summon the fortitude to do the right thing, even if it is unpopular.