MBA401 People, Culture and Contemporary Leadership Workshop Week 10 Charismatic, Transformational and Strategic Leadership COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice. 2 • To understand the meaning of charismatic leadership. • To understand the characteristics of charismatic leaders and the impact they have on followers. • To apply the concept of charisma leadership to your own graduation speech. • To understand the concept of transformational leadership. • To understand how strategic leadership relates to an organisation’s overall strategy. • LO3 - Describe contemporary approaches to leadership. • LO4 - Analyse the characteristics and psychology of different leaders. • LO5 - Apply leadership skills across a variety of domains. Workshop Objectives • Greek word meaning “Divinely Inspired Gift”. • Special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others. • Having a charming and colourful personality. • Charisma is a positive and compelling quality that makes many others want to be led by the person who has it. 4 What is Charisma? • Charismatic leadership involves the ATTRIBUTIONS made by group members about the characteristics of leaders and the results they achieve. • When group members PERCEIVE a leader to have a certain characteristic, the leader will more likely be perceived as charismatic. • Charismatic leaders use impression management to cultivate their relationships with group members. 5 Charismatic Relationship 6 Charismatic Leader? 7 Charismatic Leader? 8 Charismatic Leader? 9 Charismatic Leader? 10 Charismatic Leader? 11 Charismatic Leader? • Impact on group members: – Trust the leader’s beliefs – Have beliefs similar to those of the leader – Accept the leader unquestionably – Have affection for the leader – Willingly obey the leader – Identify with and attempt to emulate the leader – Have emotional involvement in the mission – Have heightened goals – Feel they will be able to accomplish or contribute to the accomplishment of the mission 12 •Characteristics of charismatic leaders • Visionary • Masterful communication skills • Ability to inspire trust • Able to make group members feel capable • Energy and action orientation • Emotional expressiveness and warmth • Romanticise risk • Unconventional strategies • Self-promoting personality • Dramatic and unique Impact and Characteristics • Validity of the concept • Doubt is that charisma can truly be defined or measured. • Leadership polarity indicates leaders are often either revered or vastly unpopular. • May not even be necessary for leadership effectiveness. • Misdeeds of charismatic leaders • Charismatic leadership can be exercised for evil purposes. • Some charismatic leaders are unethical and lead their organisations and outsiders toward illegal and immoral ends. • Some charismatic and transformational leaders neglect their social responsibility. 13 Concerns about Charismatic Leadership 1. Charismatic speakers are self-confident and assured. They don’t appear nervous or ill at ease. 2. Charismatic speakers seem to be enjoying themselves; they are playful & humorous. 3. Charismatic speakers are lively & energetic. 4. Charismatic speakers are knowledgeable about their subject. 5. Charismatic speakers look good; they have a stage presence. 6. Charismatic speakers speak without stumbling, using full sentences and correct grammar, without “ers” and “uhs.” 7. Charismatic speakers have an opinion about their subject. They care about it. You can sense their emotion, enthusiasm, and conviction. 8. Charismatic speakers relate their topic to the broader scheme of things; they are expansive, inspiring, and uplifting. 9. Charismatic speakers create a strong rapport with their audience, they connect. 10. Charismatic speakers are positive in outlook, cheerful, and cooperative. 11. Charismatic speakers are organised; their points are clearly connected and logically follow one another, with an overview at the beginning and a conclusion at the end. 12. Charismatic speakers (genuine ones) are honest, well mannered, patient, fair, and responsible. 14 Activity – Charismatic Speaking Richard’s Graduation Speech https://www.youtube.com/watch?v=zxiinjqnMvk or Steve Jobs’ Stanford Address https://www.youtube.com/watch?v=UF8uR6Z6KLc or Martin Luther King’s Last Speech https://www.youtube.com/watch?v=Oehry1JC9Rk or Martin Luther King’s I have a Dream Speech https://www.youtube.com/watch?v=3vDWWy4CMhE 15 Activity – Graduation Speech You have 20 minutes to write your own graduation speech which you will need to deliver to the rest of the class in a charismatic way. The aim is to deliver this in the most charismatic and inspirational manner possible. The speech will be 2 minutes long. Let’s go … 16 Activity – Graduation Speech • Focuses on what the leader accomplishes, yet it still pays attention to the leader’s personal characteristics and his/her relationship with group members. • Helps bring about major, positive changes by moving group members beyond their self-interests and towards the good of the group, organisation, or society. • Essence is in developing and transforming people. • In contrast, TRANSACTIONAL leadership is focused on routine transactions and rewarding group members for meeting standards. 17 Transformational Leadership 18 Transformation Process Source: Dubrin, 2012 • Are charismatic, agreeable, and able to present as extroverted. • Score high on emotional intelligence. • Create a vision. • Encourage the personal development of others. • Provide supportive leadership. • Practice empowerment. • Think innovatively. • Lead by example. • Utilise moral reasoning. 19 Transformational Leaders • Involves motivating and directing followers primarily through appealing to their own selfinterest. • The power of transactional leaders comes from their formal authority and responsibility in the organisation. • The main goal of the follower is to obey the instructions of the leader. • The style can also be mentioned as a ‘telling style’. 20 Transactional Leadership • Link the goal to rewards. • Actively monitor the work of their subordinates. • Intervene only when standards are not met. • Provides an environment where the subordinates get many opportunities to make decisions. 21 Transactional Leaders • Focuses on the major purposes of the firm. • Provides the direction and inspiration for the firm – Creating an organisation. – Providing direction to the organisation. – Sustaining an organisation. • The strategic leader’s role is creating the organisation’s future through actions of formulating and contributing to achieving the firm’s vision. Strategic Leadership Elements of Strategic Leadership Source: Dubrin, 2012 1. Thinking at a cognitively high level. 2. Gathering multiple inputs from many sources. 3. Anticipating and creating a future direction. 4. Adopting a revolutionary or contrarian outlook. 5. Ultimately, creating a vision. • In companies that believe in visions and strategic goals, all activities throughout the firm are supposed to support the vision and goals. Elements of Strategic Leadership • https://www.ted.com/talks/simon_sinek_ho w_great_leaders_inspire_action#t-253443 • Questions – How does business strategy link to strategic leadership? – What makes this type of leadership different from others? Video – Inspiring Leadership • Strategic Planning encompasses those activities that lead to the statement of the organisation’s goals and objectives and their chosen strategy. • Strategic Planning takes the form of a SWOT Analysis – Internal Environment Analysis: • Strengths • Weaknesses – External Environment Analysis: • Opportunities • Threats • Examines the interaction between the organisation and its external marketplace. SWOT Analysis • Strengths – Favourable Location – Talented Workers – State-ofthe-Art Equipment • Weaknesses – Unfavourable Location – Untalented Workers – Outdated Equipment – Limited Capital • Opportunities – Culturally Diverse Customer Base – Changes in Technology - Deregulation • Threats – e-Commerce – Declining Market – New Competitors SWOT Analysis Business strategies are often classified according to their focus of impact: • Corporate-level strategies – “What business are we in?” • Business-level strategies – “How do we compete?” • Functional-level strategies – “How do we support the business-level strategy?” Strategic Leadership Strategies • Differentiation • Cost leadership • Focus/niche • High quality • Imitation • Strategic alliances • Growth through acquisition • High speed & firstmover • Product & global diversification • Sticking to core competencies • Brand leadership • Creating demand by solving problems • Gaining competitive advantage through hiring talented people Strategic Leadership Strategies • Take out your phone and review some news sites. • As soon as you find an example of a business that has initiated a ‘Strategic Leadership Strategy’, stand up and share for a class prize. Activity – Strategic Leadership • Charismatic leadership can be learned and applied. • There are concerns about charismatic leadership. • Transformational leadership is situationally based and requires specific skills. • Strategic leadership is inextricably linked to an organisation’s business strategy. Summary Any Questions? • From today’s workshop: – What have you learned about leadership? – What has surprised you? – What have you learned about yourself? – How could you apply these learnings in the workplace? – How could these learnings be reflected in Assessment 2? Activity – Journal Reflection Assessment 3 - Overview • Refer to subject outline. Any Questions?