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