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Charismatic leadership perspectives emphasise the kind of leader–follower social relationship summarised above and are the first of the wholly new leadership approaches considered. House’s version of this approach defines charismatic leaders as those who by force of their personal abilities are capable of having a profound effect on followers. The work of Conger and Kanungo suggests that if leaders use behaviours such as vision and articulation, environmental sensitivity and unconventional behaviour, rather than maintaining the status quo, followers will attribute charismatic leadership to them. Yukl draws a distinction between charismatic and transformational leadership (see below) by suggesting that transformational leadership requires leaders to empower others and make them partners in a change process, whereas charismatic leadership requires followers to place their trust in the leader’s special expertise to achieve radical change.

Notwithstanding Yukl’s distinction, transformational leadership is typically seen as a broader approach than charismatic leadership. Bass and associates’ transformational perspective is a particularly well-known theory that includes charisma as one of its dimensions. It separates vision-oriented transformational leadership from day-to-day transactional leadership and argues that the two work in combination. Transactional leadership is typically seen as based on contingent rewards, management by exception (active and passive), and laissez-faire behaviour. Transformational leadership is dependent on the four ‘I’s’ of individualised consideration, intellectual stimulation, inspirational motivation and idealised influence. Transformational and charismatic leadership, and the new leadership in general, are important because of their facilitation of change in our increasingly fast-moving world.

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The new leadership differs from traditional leadership primarily in that it emphasises vision and change and focuses on attribution, charisma, transformation and related concepts.

Attribution leadership theory overlaps these two approaches, though it can be placed more on the new leadership side of such a model.

Great human/trait and leadership behaviour, the first of the traditional leadership approaches, argues that leader traits or behaviours have a major impact on leadership outcomes. Traits are considered more innate and harder to change than are behaviours. They are often the basis of selection for people in leadership positions. Leader behaviours have been the basis of several studies including the Michigan studies, the Ohio State studies and Blake and Mouton’s Leadership Grid®. Reward and punishment theory is based on reinforcement concepts discussed in chapter 5. It identifies leader behaviour dimensions that are contingent or non-contingent upon performance. Desired leader behaviours are often used as the basis for leadership training.

Traits and behaviours are also often used in situational contingency approaches, summarised below, or even new leadership approaches. The leader situational contingency thrust argues that leadership, in combination with various situational variables, has a major impact on outcomes. Sometimes, as in the case of the substitutes for leadership perspective, the role of the situational variables replaces that of leadership to the point that leadership has little or no impact in itself. Fiedler’s contingency theory, House’s path-goal theory, and Hersey and Blanchard’s situational leadership theory, in addition to the substitutes for leadership approach, are perspectives that consider the impact not just of leadership but of various situational contingencies.

These theories tend to assume that leadership and its substantive effects can be easily identified and measured, but this is not always the case. Attribution theory overlaps traditional and new leadership by emphasising the importance of the symbolic aspects of leadership. These aspects are an especially important part of the new leadership, charismatic, transformational and related orientations, according to which followers tend to attribute heroic or extraordinary leadership abilities to a leader when they observe certain behaviours from that leader. These attributions can then help transform followers to achieve goals that go beyond their own self-interest and, in turn, help transform the organisation.

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Leadership and management differ in that management is designed to promote stability or to make the organisation run smoothly, while the role of leadership is to promote adaptive change. One can think of a leadership function corresponding to each of the management functions (planning, organising, leading and controlling) but carried out very differently. One of the essential features of this difference is that leaders can influence others to perform beyond the actions dictated by formal authority.

Leadership can be seen as formal (where people are appointed or elected to positions of formal authority within organisations) and informal (where people become influential by virtue of special skills and attributes that meet the needs and resources of others).

Leadership literature reveals a range of approaches to understanding leadership, with two categories demarcated. These are traditional and new leadership. Traditional leadership approaches include:

· Trait and behaviour approaches that give leadership a central role in performance and human resource maintenance outputs

· Situational contingency approaches that combine leadership with situational contingencies to predict outputs

· The leadership substitutes perspective, which argues that situational contingencies sometimes replace leadership in causing outputs.

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From now onwards, I shall be concentrating on module 7 onwards. Module 7 deals with leaderships. This is a very important chapter and questions on leadership is a favorite among examiners. Please read up the relevant sections in your study guide as all the questions will be based on the study guide. The answers are also found in the study guide.