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Transactional and Transformational Leadership

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Lisi Tao

on 18 February 2013

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Transcript of Transactional and Transformational Leadership

The Transformational Influence Process Transactional and Transformational Leadership
in Public Relations Ethics Presented by The Transformational Influence Process 1. Evaluation of the status quo.

2. The formulation and articulation of the vision:
a) Discrepant from the status quo;
b) Idealized;
c) Shared by the followers. The Articulation of the Vision The Attainability of the Vision
The Leader’s Convictions
The Leader’s Own Expertise - sharing authority and resources

- belief in self-determination/self-efficacy Benben Li Hui Sun Lisi Tao Transactional Leadership Taiming Guo "The important thing in any organization is leadership, not management. A leader must have the decisive courage to be a dictator for the common good." Founder and Chairman of Foxconn
Taiwan's Richest Man in Technology Rewards and Punishments Military Management 5-day training before on site for grass-root staff Senior managers stand at attention Staff- Animal Management Personnel promotion, recruitment based on age and seniority "I'm not punishing you, because I'm standing, too." A Taiwanese multinational electronics contract manufacturing company 1.2 million employees in China The Largest electronics manufacturing services company in the world Be absolutely obedient Rewards Bonus, dividend and stock share Villas for middle managers Foxconn Labor insurance, health examination, dormitory, parking lots, canteens Punishments Weekly self-criticism on business To clean toilets, sweep lawns "confession letters" Female workers to do heavy manual work Transformational Leadership = ? Staff Animals "Whatever we accomplish is due to the combined effort. The organization must be with you or you don’t get it done… In my organization there is respect for every individual, and we all have a keen respect for the public.”

—Walt Elias Disney Transformational Ethical Leadership Tony Hseih Five-Stage Model of
the Empowerment Process
(Conger & Kanungo, 1988) Reward Systems (Kanungo, 1987) 3 Processes of
Attitude Change Compliance


Internalization Transactional or Transformational? Empowerment strategies Emphasizing compliance behavior rather than changing followers’ attitudes Social exchange of valued resources Creating learning opportunities for their followers and stimulate followers to solve problems Aware of the link between the effort and reward Relying on standard forms of inducement, reward, punishment and sanction to control followers Motivating followers to work for goals that go beyond self-interest Power base: coercive, legal, reward Ethical Implications Transactional - Control Strategies Defensive identification: “servile” imitation;
Internalization: programmed robots;
Unethical Transformational - Empowerment Strategy Identification: “filial” imitation
Internalization: a free choice by followers
Ethical Discussion:
Is It an Obligation? Do you think leaders have the moral obligations to empower their followers and promote their growth and development, even when it’s likely that they might leave the organization to join its competitors? President and CEO of Zappos.com "Happiness in the work environment is the key to creating better service for customers." Delivering Happiness Sold start up business linkExchange to Microsoft People involved not good for the culture Started Zappos.com Creating a fun work environment Customer loyalty team Stakeholders and customers $ 36,000 yearly salary What Kind of Person? Inspirational: extraordinary visions and ideas A man of great character: highly ethical and charismatic Effectively communicated with subordinates and rallyed great team spirit Saw potential A supportive environment and acted as a coach and often a mentor Integrity and character Legacy of Transformational Leadership A reputation of having the most motivated and service-oriented workforce A transformational leader may not always have to be a person The form of a company and the type of environment Walt Disney Company Innovation and creativity Dedication to guest service and superior entertainment A supportive, non-threatening environment Inspirational motivation and individual consideration The Transactional Influence Process Ethical Values of Transactional and Transformational Leaders Rabindra N. Kanungo

McGill University Literature Review
Keeley (1995): “Unless leaders are able to transform everyone and create absolute unanimity of interests, transformational leadership produces simply a majority will that represents the interests of the strongest faction” (p.77). Literature Review
Bass & Steidlmeier (1999): Transactional leadership is grounded in a worldview of self-interest.

Kanungo & Mendonca (1996): The influence style of transactional leadership is devoid of any moral legitimacy. Dimensions of Ethical Leadership Thomas Aquinas:
Three factors: 1. Motive
2. Manifest behavior
3. Social context

1. Own motives
2. Acts—Behavioural strategies and tactics of influence
3. Worldviews—Characters of leaders Dimensions of Ethical Leadership Two Ethical Perspectives to Evaluate Leadership
An overarching motive for ethical leadership: Altruistic intent

Two ways for leaders to manifest their altruistic concern:
1. Combination of their altruistic concern with their own self-interest concern.
Motive: Utilitarian/ Mutual altruism Leaders’ Motive for Transactional and Transformational Influence Strategies Moral Justifications for Transactional and Transformational Influence Strategies Moral Justifications for Transactional and Transformational Influence Strategies Values and Assumptions Associated with Transactional and Transformational Leadership Two ethical norms (values) associated with altruistic motives:
1. Reciprocity
2. Social responsibility Values and Assumptions Associated with Transactional and Transformational Leadership Two types of self-concepts (Triandis, 1994): Values and Assumptions Associated with Transactional and Transformational Leadership Conclusion Moral justification for transactional leadership: Teleological ethic/ethic of purpose.

Moral justification for transformational leadership: Deontological ethic/ethic of duty.

“Two types of leadership behaviours have to be judged for their moral standing by using two fundamentally different ethical perspectives" (Kanungo, 2001, p. 263). Two psychological dynamics:

1. Internalization of the leader's vision;
2. The followers' self-efficacy beliefs. 3. The Actual Activities and Behaviors to Achieve the Vision
- the crux of the process According to the authors, “the followers begin to trust their leader when they perceive, beyond any doubt, that their leader is unflinchingly dedicated to the vision and is willing to work toward it even at the risk of considerable personal cost and sacrifice.” (Kanungo & Mendonca, 1996, p. 60) The Empowerment Strategies A Relational Construct - “To Delegate” A Motivational Construct - “To Enable”  Expert and Referent Power Strategies
(French & Raven, 1959)

 Expert Power:
- based on followers’ perception that the leader has some special knowledge or expertise.

 Referent Power:
- based on followers’ identification with the leader. Q&A: A father steals food in order to feed his starving family.
• How would a deontological thinker justify this action?
• How would a teleological thinker justify this action? As a leader, to what extent will you sacrifice yourself to your group? Can you sacrifice your leisure time, exercise time or family time to benefit your followers and other stakeholders, just like the previous General Secretary of the United Nations --Dag Hammarskjöld? Discussion Question Values and Assumptions Associated with Transactional and Transformational Leadership Mutual Benefits:
Social Contracts
Ends justify means
Teleological ethics Altruism:
Means justify ends
Deontological ethics Discussion: If a leader took the “reciprocity” as his/her ethical norm and always pursued a “win-win” status, do you think this may raise any problem? On the other hand, if a leader took the “social responsibility” norm and fully engaged in social obligations, do you think this may raise any problem? 2. Idiocentric
leaders 1. Allocentric
leaders In your personal opinion, as a follower, do you prefer the transactional leadership or transformational leadership? Why? Discussion Question “Walt always wanted you to find something wonderful in yourself, to believe in it and consider it God’s gift to you.” Asked for feedbacks, found hidden talents and bring them out High moral standards Strategy Relating to Outcomes and Opportunities Strategy Relating to Outcomes and Opportunities Emphasizing innovative performance & high performance levels

Conducted in a fair and equitable manner
- Uncertainty and inequity of outcomes lead to undesirable consequences What do you think of his leadership?
Any of his management method you consider is effective or inappropriate? Would you like to work for Disney?
If yes, what specific factors that attract
you the most? Question Question References What kind of empowerment strategies or tactics have your leader used to make you feel empowered? Do you think the transactional leadership ethics is absolutely unethical?
Can you find any moral justification/legitimacy for transactional leadership? Discussion 2. Leaders’ helping concern for others without any regard for self-interest.
Motive: Genuine/ Moral Altruism Transformational Transactional Rabindra N. Kanungo
McGill University Manuel Mendonca
McGill University Reward Strategy

Coercive Strategy

Legal Strategy

The Significant Aspect

Serious Ethical & Moral Implications

Inefficient Deployment SHARE YOUR EXPERIENCE Have you worked with any leaders that employers the transactional style? Mutual Altruism Moral Altruism Transactional Leader Transformational Leader Bertram, C. D. (2011, June 28). Transformational Leadership [Web blog post]. Retrieved from http://033c272.netsolhost.com/WordPress/american-federalism/american-leadership/
Conger, J. A., & Kanungo, R. N. (1988). The empowerment process: Integrating theory and practice. Academy of Management Review, 13(3), 471-482.
Dean, J. (2007, August 11). The Forbidden City of Terry Gou. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB118677584137994489.html
French, J. R. P., Jr., & Raven, B. H. (1959). The basis of social power. In D. Cartwright(Ed.), Studies in social power (pp. 150-167). Ann Arbor: University of Michigan, Institute for Social Research.
Garside, J. (2012, May 30). Apple's efforts fail to end gruelling conditions at Foxconn factories. The Guardian. Retrieved from http://www.guardian.co.uk/technology/2012/may/30/foxconn-abuses-despite-apple-reforms
Kanungo, R. N. (1987). Reward management: A new look. In S. L. Dolan & R. S. Schuler (Eds.), Canadian readings in personnel and human resource managements (pp. 261-275). St. Paul: West.
Kanungo, R. N., & Mendonca, M. (1996). Ethical dimensions of leadership (3rd ed.). Thousand Oaks, CA: Sage Publications. Chapter 4: Ethical dimensions of leadership influence processes.
Kelman, H. C. (1958). Compliance, identification, and internalization: Three processes of attitude change. The Journal of Conflict Resolution, 2(1), pp. 51-60.
Rabindra, N. K. (2001). Ethical values of transactional and transformational leaders. Canadian Journal of Administrative Sciences, 18(4), 257-265. Retrieved from http://search.proquest.com/docview/204887568?accountid=10920 - Core of the Transformational Influence Leadership Process VS Ethical Dimensions of
Leadership Influence Processes Discussion: How do you identify yourself? Do you often follow the teleological ethics (Ends/outcomes oriented) or deontological ethics (Obligations/duty oriented)? Question
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