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Leadership Fundamentals
Transactional and Transformational Leadership
Principles
The Mistakes We Make
“Leadership can be developed. However, it cannot be ‘promoted.’”
-Dan Chase (June 16th, 2015)
“There go the people. I must follow them,
for I am their leader."
-French Radical (1830’s)
• Conflating Leadership with Position
• Ignoring the Importance of Position
• Treating Leadership as In-organic
“To be a really effective leader you have to give a damn about something.”
-Dan Chase (I don’t know. Probably a few years ago. Let’s
just say 2010 to be safe)
Two Types of “Leadership”
Transactional Leadership
“The best transactions are constructive and evidence would
suggest that these are usually
reasonably effective in achieving desired
levels of performance.”
- Bruce J. Avolio, 1999
“For the past decade, research has supported the
idea that, on average, transformational leadership is far more effective than transactional leadership in
generating the higher levels of extra effort, commitment,
performance, and satisfaction of those led.”
Bruce J. Avolio, 1999
• Laissez-Faire
• Management by Exception
• Contingent Rewards
Zappos
Transformational Leadership
“Leadership is leaders inducing followers to act for certain
goals that represent the values and the motivations—the wants and needs, the aspirations and expectations—of both leaders and followers. And the genius
of leadership lies in the manner in which leaders see
and act on their own and their followers’ values and
motivations.”
-James MacGregor Burns, 1978
“One recent study of R&D firms found teams whose project leaders scored high on transformational leadership produced better-quality products as judged 1 year later and were more profitable 5 years
later. A review of 87 studies testing transformational leadership found it was related to the motivation and satisfaction of followers and the higher performance and perceived effectiveness of leaders.”
Judge and Robbins, 2014
• Idealized Influence• Inspirational Motivation• Intellectual Stimulation• Individual Consideration
Idealized Influence
• Role Model Values
• Trust
• Self-Sacrifice
“The best leader does not ask people to serve him but the common
end. The best leader has not followers, but men
and women working with him.”
-Mary Parker Follett
Inspirational Motivation
• Meaning
• Vision
• Optimism
“We choose to go to the moon. We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are
hard, because that goal will serve to organize and measure the best of our energies and skills,
because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one
which we intend to win.”
-September 12, 1962
Intellectual Stimulation
• New Ways of Viewing Problems
• Question Assumptions
• Tolerate Mistakes
“Nothing is too good, too fixed too political, or too bureaucratic that it
can’t be challenged, changed, retired, and/or
abandoned.”
Bruce J. Avolio, 1999
“The work of leaders is change. Leadership
is inextricably connected with the
process of innovation.”
- Rosabeth Moss Kanter
Individual Consideration
• Teach Efficacy
• See the Whole Person
• Recognition
“If you report that your manager is a
close friend, you are 2.5 times more likely to be satisfied with
your job.”
- The Leadership Challenge
“Further Analysis also indicated that these gains from non-financial
incentives were sustained over time and, when compared to
financial incentives, had an equally significant impact . . . ”
- Luthans and Stajkovic, 2009
What Extremes to Avoid
• Transactional is “less than”
• What you do isn’t “Big” Enough for Transformational Leadership
“Transformational leadership adds or augments transactional leadership in
its effects on follower motivation, satisfaction, and performance.
Transformational leadership does not replace transactional leadership.”
Bruce J. Avolio, 1999
Are Leaders Born or Made?
• Life BiographyWide LearningInfluence Without AuthorityExtreme Challenges
“The Unexamined Life is not Worth Living
-Socrates
• Self-EfficacyEnacted MasteryModelingVerbal Arousal
YES!
Leadership Fundamentals
Transactional and Transformational Leadership
Principles