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UHAS 2142
Kepimpinan Dalam Organisasi

Transformational &
Charismatic Leadership

~ Dr. Halimah Mohd Yusof ~
07-561 0128


2 . 18/3/2017 Transactional Leadership Transactional Leadership • Transactional leadership is defined as the influence of a leader toward his subordinates using reward and punishment as a form of motivational medium.

• Transactional leadership is a style of leadership in which the leader promotes compliance of his/her followers through both rewards and punishments. • Transactional leadership the leader has the right to punish his or her subordinates if their performance is not according to the predetermined standard. Transactional Leadership • Transactional leadership is also called as true leadership style. also known as managerial leadership. 3 . 18/3/2017 Transactional Leadership • Transactional Leadership.

• Reward and punishments 4 . • Transactional leadership has more of a telling style. 18/3/2017 Transactional Leadership • The term "transactional" refers to the fact that this type of leader essentially motivates subordinates by exchanging rewards for performance. • Contingent reward and management-by- exception. Qualities of Transactional Leadership • Passive.

Short Term Goal 4. They tend to think inside the box when solving problems Advantages of Transactional Leadership 1. Structure is Clear 3. Rewards and Incentives 2. • Transactional leaders are willing to work within existing systems and negotiate to attain goals of the organization. 18/3/2017 Qualities of Transactional Leadership • Directive and action-oriented. Control Rewards 5 .

Disadvantages of a Transactional Leadership • This type of leadership is flawed since it motivates people only on the base level. • This also limits its follower that wishes to engage with higher level of professional environment. 18/3/2017 Disadvantages of a Transactional Leadership • Transactional leaders tend to be more reactive to changes in market conditions. • Slow to respond to and take advantage. 6 . • This is poor when higher thinking skills level is needed to utilize. • Transactional leadership also promotes a rigid hierarchy.

7 . 18/3/2017 TRANSFORMATIONAL LEADERSHIP A Definition It is the form of leadership in which a leader inspires his followers to go beyond their own self- interests for the good of the organization.

8 . • Eg: Abraham Lincoln. – Innovation is also encouraged. How does Transformational Leadership work? • Transformational leaders often advise their followers to be more bold and start taking more risks. • These leaders are more effective because they are more creative and influence their followers to be more creative as well. • Change followers’ awareness of issues by helping them look at old problems in new ways. • Leaders who adopt this leadership strategy tend to pursue more ambitious goals than other leaders. • Able to excite. arouse and inspire followers to put extra efforts to achieve group goals. 18/3/2017 What do transformational leaders do? • Pay attention to the concerns and developments of their followers.

Inspirational Motivation 3. lower employee stress and higher employee satisfaction. 9 . studies have shown that transformational leadership has proved to be more effective than many other forms of leadership with lower turnover rates. Intellectual Stimulation 4. Individualized Consideration Transformational leadership • To conclude. higher productivity. Idealized Influence 2. 18/3/2017 Qualities of Transformational Leadership 1.

Lack of Check and Balance 5. Dependence on the Leader 2. Lower Employee and Customer Turnover Costs (Retention) 4. Usage of Impression Management 10 . Inspiration (Motivation) 3. Corporate Learning Disadvantages of Transformational Leadership 1. 18/3/2017 Advantages of Transformational Leadership 1. Superior Employee Performance 5. Draining Personnel 3. Power and Manipulation 4. Vision 2.

18/3/2017 Transactional vs Transformational Transactional Transformational Leadership Leadership Leadership is responsive Leadership is proactive and its basic orientation and forms new is dealing with present expectations in followers issues Works to change the Works within the organizational culture by organizational culture implementing new ideas Transactional vs Transformational Transactional Transformational Leadership Leadership Employees achieve Employees achieve objectives through objectives through higher rewards and punishments ideals and moral values set by leader Motivates followers by Motivates followers by appealing to their own encouraging them to put self-interest group interests first 11 .

innovative ideas to solve stress correct options to problems improve performance Leadership depends on the Leaders create learning leader’s power to reinforce opportunities for their subordinates for their followers and stimulate successful completion of the followers to solve problems bargain CHARISMATIC LEADERSHIP 12 . 18/3/2017 Transactional vs Transformational Transactional Transformational Leadership Leadership Management-by-exception: Promote creative and maintain the status quo.

 They are likely to be extroverted. Characteristics of Charismatic Leadership • Vision and Articulation: Has a vision – that proposes a future better than a status quo. Ghandi. – Examples of charismatic leaders are: Nelson Mandela. novel and counter to norms. 18/3/2017 What is Charismatic Leadership? Charisma: The ability to attract people and make them admire you  The Charismatic Leadership theory states that followers make attributions of heroic and extraordinary leadership abilities when they observe certain behaviours. Kennedy. • Personal Risk: Willing to take on high personal risk. self-confident and achievement oriented. John F. 13 . incur high costs and engage in self-sacrifice • Sensitive to Followers’ Needs • Unconventional Behaviour: Regarded as exemplary.

Steve Jobs championed the iPod noting “It’s as Apple as anything Apple has ever done” How Charismatic Leaders Influence • Vision Statement: Formal articulation of an organisation’s vision or a mission. long-lasting imprint on followers. They use vision statements to leave a deep. • Communicates high performance. 18/3/2017 How Charismatic Leaders Influence • Articulating a vision: A long-term strategy for how to attain a goal. • Conveys a new set of values by his/her exemplary behaviour. It gives a sense of continuity. • For Example. sets an example for followers to imitate • Engages in emotion-inducing behaviour to demonstrate convictions about the vision. expectations and expresses his/her confidence that the followers can attain them. 14 .

what’s the difference?  Transformative and Charismatic leadership are synonymous in many respects. Bernard Bass. measures of transformational and charismatic leadership are more or less equal. 18/3/2017 So. and can change follower’s awareness of issues by helping them to look at older issues in new ways.  Those working for charismatic leaders are more motivated and put in extra effort because of the high level of respect for their charismatic leader. Charismatic vs Transformational  Transformational leaders inspire followers to transcend their own self-interests for the good of the organization and are capable of having a profound and extraordinary effect on their followers. in practice. communicate high expectations. one of the pioneers of the concept of transformative leadership.  They are also able to excite. arouse. They sometimes do not know how to separate their personal interests from the organization’s interests. considers charisma a subset of transformative leadership.  Tests indicate that leaders who score higher in transformational leadership are also likely to score high in charisma. provide vision and a sense of mission. They encourage their followers to be more innovative and creative.  The downside of charismatic leaders is that those who are larger than life charismatic leaders don’t always act in the best interest of their organizations and can use their power to enhance their own image within the company.  They pay attention to the concerns and needs of individual followers. and encourage followers to put extra effort into achieving group goals.  In fact. 15 . So. promote intelligence.