Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

11. Transformational

Leadership Development:

the Essence of SHRM

Dr. Debi S. Saini

Professor & Chairperson—HRM Area

Management Development Institute, Gurgaon-122007

Issues discussed in this Session:

• Linking leadership with SHRM

• Film analysis: Transformational Competencies

• Transactional & Transformational leaders

• People & Task concerns: GRID Theory

• Changing perceptions through leadership dev.

3

Cooperation/Engagement

Is the essence of Strategic HRM: Need to Change People’s Perception

4

The above realities necessitate

Developing

Transformational Leadership

for Employee Engagement

5

Learn to Lead Change in Chaotic Comptt.:

Jack Welch--From a Cost-cutting Butcher to Change Master

Jack Welch took GE

from a 13 B. to 500 B. Company

in 20 years

6

Leaders Focus on Culture & Outcome; not Rules

1. Develop business vision

2. Culture to achieve vision

3. Flatten the organization

4. Eliminate bureaucracy

5. Empower individuals

6. Raise quality & efficiency

7. Eliminate boundaries

Welch’s 7 Point Program for

Mgt by Leadership

GE Market

Capitalization

Sam Pitroda

espoused a mission

for the masses of India

He became the architect of

the telecom revolution in India

He led changes

in structure & culture

at a massive scale

to provide a tele-network

of global standard

Great Leaders Inspire;

Create Enthusiasm

Enthusiasm is Highly contagious

• “Without doubt, the head of HR should be

the 2nd most important person

in any organization. from the point of view of CEO,

the HR director should be at least equal to CFO.” --Jack Welch

9

What do you Think are

the Leadership Qualities

Shown by

the Successful Jailor

Transformational Leadership Involves:

1. Vision—Orgl.; individual

2. Team-building

3. Trusts

4. Results/task balancing

5. Charisma (see him in sky as well)

6. Risk-taking

7. Paternalism/Care (Indian context)

8. Credibility/integrity

9. Listening/Communication

10. Empathy

11. Good human-being

12. Guiding/Counseling

13. Change master

14. Servant leadership

15. Transparency

16. Diversity mgt.

17. Idiosyncratic passion

18. Admits failure

19. Social responsibility

20. Inter-personal skills

21. Inspires

22. Leads by example

23. Compassion

24. Empowers/delegates

25. Tact

26. Emotional intelligence

27. Metrics:

Who is a Transformational Leader?

Burns (1978)

A transformational leader is one

who looks for potential motives in followers,

seeking to satisfy higher needs,

and engages the full person of the follower

TL: inspires their followers

to go beyond the calls of duty

and acts as mentor

Who is a Transformational Leader?

“The goal of transformational leadership

is to “transform” people & orgs. in a literal sense

—to change them in mind and heart;

enlarge vision, insight, and understanding;

clarify purposes;

make behavior congruent with beliefs, principles, or values;

and bring about changes that are

permanent, self-perpetuating, & momentum building.”

Steven Covey, Author of 7 Habits of Highly Successful People

Since late 1970’s (James Burn), a ‘New leadership’ model talked

1. Vision, look for potential motives inspire Ideas &

create shared “dreams”

2. Integrity: Honest & credible; acts out of conviction

3. Charisma: Uses emotion for faith, loyalty, pride, TRUST

4. Empower: Helps others develop, delegates challenging work

5. Symbolism: Identifies “heroes,”: celebrates excellence

6. Proactive Communication: orally & with body language

7.Desired culture: Teach—Be Innovative—Build leaders—Use Metrics

What do Transformational Leaders do?

Transformational & Transactional Leadership: Difference

Category Transactional Transformational

Source of power Rank, position Character, competence

Follower reaction Compliance Commitment

Time frame Short-term Long-term

Rewards Pay, promotion, etc. Pride, self-esteem, etc.

Supervision/Control Important Less important

Counseling focus Evaluation Inspiration/Development

Where change occurs Follower behavior Follower attitude, values

Where leadership found Leader’s behavior Follower’s heart

1

5

Let us Look at

these two Situations:

Task & People Need:

GRID

R.R. Blake & Jane S. Mouton Leadership Grid

Low

High

Low High 9 7 8

9

6 5 4 3 2 1

1

2

3

4

5

6

7

8

Concern for Production

Concern for

People

1,9

9,1 1,1

9,9

5,5

Country Club Mgt. Team Management

Impoverished Mgt. Authority-Compliance

Middle of the Road Mgt.

Thoughtful attention to the

needs of people for satisfying

relationships leads to a com-

fortable, friendly org.

atmosphere and work tempo

Work accomplishment is from

committed people; interdependence

through a “common stake” in org.

goals leads to relation of trust/respect

Exertion of minimum effort to get

required work done is appropriate

to sustain org. membership.

Adequate org. performance is possible

through balancing the necessity to get

out work with maintaining morale of

people at a satisfactory level.

Efficiency in operations results

from arranging conditions of work

in such a way that human elements

interfere to a minimum degree.

Source: Robert R. Blake and Jane S. Mouton.

Interpersonal Orientation Task Orientation

• Solicits opinions

• Recognizes others’ positions/ideas

• Flexible, open communication

• Listens carefully

• Makes requests

• Focus: Feelings, emotions, needs

• Productivity through personal skills

• Mostly communicates orally

• Maintains open-door policy

• Disseminates info.

• Ignores others’ positions/ ideas

• Rigid communication

• Interrupts others

• Makes demands

• Focus: Data/info. on tasks

• Productivity through tech. skills

• Mostly communicates in writing

• Maintains “closed door” policy

Be an Emotionally Intelligent Leader

• They manage interpersonal relationships & build networks (teams)

[D. Goleman’s 5 components of EI leaders]:

• Self-awareness

• Self-regulation

• Motivation

• Empathy (Understand & share feelings of another)

• Social skills (inter-personal)

Daniel Goleman, Ph.D.

What is EI

• EI is the ability

to identify, assess, & control

the emotions

of oneself, of others, & of grs.

What Have we Focused on in This Session?

• HR must facilitate cooperation through Leadership

• Transformatl. leadership is most used framework

• Leaders must inspire, care, be fair, honest, measure

• Leading is different from managing

• Important to balance task/people needs in managing

• SHRM is difficult to implement without transfl leadership