BMGT200 Chapter 16: Contemporary Views of Leadership

Contemporary Views of Leadership

• Leaders who establish a supportive relationship with key subordinates generate organizational commitment, leading to increased employee performance.
• Transactional leaders guide or motivate followers to work toward established goals by exchanging rewards for their productivity.

Transformational and Transactional Leadership

• Transformational leaders stimulate and inspire followers to achieve extraordinary outcomes.
• Transformational leadership develops from transactional leadership and produces higher levels of employee effort and performance.
• Studies show that transformational leaders are evaluated as more effective, higher performers, more promotable, and more interpersonally sensitive than their transactional counterparts.
• Transformational leadership is strongly correlated with lower turnover rates and higher levels of productivity, employee satisfaction, creativity, goal attainment, follower well-being, and corporate entrepreneurship.

Charismatic-Visionary Leadership

• A charismatic leader is an enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways.
• Eight traits associated with effective leadership include:
  • Drive
  • Desire to Lead
  • Honesty and integrity
  • Self-Confidence
  • Intelligence
  • Job-Relevant Knowledge
  • Extraversion
  • Proneness to Guilt

Leader-Member Exchange (LMX) Theory

• LMX theory states that leaders create in-groups and out-groups, and those in the in-group will have higher performance ratings, less turnover, and greater job satisfaction.
• In-group members have demographic, attitude, personality, and even gender similarities with the leader or have a higher level of competence than out-group members.

Brief Recap

• A leader is someone who can influence others and has managerial authority.
• Early attempts to define leader traits were unsuccessful, but later attempts found eight traits associated with leadership.
• Leader-member exchange theory (LMX) states that leaders create in-groups and out-groups.
• Transactional leaders exchange rewards for productivity, while transformational leaders stimulate and inspire followers to achieve goals.
• Charismatic leaders are enthusiastic and self-confident, while visionary leaders create and articulate a realistic vision of the future.
• Ethical leaders create a culture where employees feel they can do a better job, and team leaders manage the team's external boundary and facilitate the team process.