Unit MSL 6040, Current Issues in Leadership 1 Course Learning Outcomes for Unit II Upon completion of this unit, students should be able to: 2. Assess the differences between charismatic leadership...

Unit


MSL 6040, Cu
ent Issues in Leadership 1
Course Learning Outcomes for Unit II

Upon completion of this unit, students should be able to:

2. Assess the differences between charismatic leadership and transformational leadership.
2.1 Evaluate the traits of charismatic and transformational leaders.
2.2 Predict possible drawbacks of charismatic and transformational leadership.

8. Develop a comprehensive personal leadership training plan that utilizes different leadership
techniques.
8.1 Identify individual attributes that contribute to one’s leadership skills.
Course/Unit
Learning Outcomes
Learning Activity
2.1
Unit Lesson
All Required Reading
Unit II PowerPoint Presentation: Personal Leadership Training Plan: Attributes
2.2 Unit II PowerPoint Presentation: Personal Leadership Training Plan: Attributes
8.1 Unit II PowerPoint Presentation: Personal Leadership Training Plan: Attributes


Reading Assignment

In order to access the following resources, click the links below:

Sandberg, Y., & Moreman, C. M XXXXXXXXXXCommon threads among different forms of charismatic leadership
(revised). Journal of Religion and Business Ethics, 3(2), 1–17. Retrieved from
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Tatum, N. T., & Fogle, K. (2016, Fe
uary). Transformational leadership. Training Journal, 30–32. Retrieved
from
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Van Wart, M XXXXXXXXXXEvaluating transformational leaders: The challenging case of Eric Shinseki and the U.S.
Department of Veterans Affairs. Public Administration Review, 75(5), 760–769. Retrieved from
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Unit Lesson

What does charismatic leadership look like? Charismatic leaders are passionate about their roles and are
able to inspire others to be the same. These leaders have a clear vision and can communicate it well to
others. Overall, charismatic leadership involves the ability to connect with people through a crisis or through
vision. Charismatic leaders make others want to rise to their level and perform at their best.

Does this type of leader make you think of someone you know or have worked with previously? Maybe it was
even a sports coach. Consider the movie Remember the Titans when Denzel Washington delivers a very
moving speech to his team in order to motivate them. If you are familiar with this movie, consider the ways the
UNIT II STUDY GUIDE
Charismatic and
Transformational Leaders
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MSL 6040, Cu
ent Issues in Leadership 2
UNIT x STUDY GUIDE
Title

coach demonstrates charismatic leadership. How does Washington’s character use the Battle of Gettysburg
for inspiration? If you are unfamiliar with this speech, you may watch the video below, which is optional.

Mikedaquila. (2011, April 3). Remember the Titans – Coach Boone charismatic leadership [Video file].
Retrieved from https:
www.youtube.com/watch?v=HIeLiPjgAbQ

What was so moving and so motivating about the speech? How was the power of team leveraged? Although
this example is from a sports team in a movie, the very same concept can be applied to business.

Think for a minute about corporate America. What do you know about it? Well, it is divided into many industry
segments: technology, finance, retail, consumer durables, consumer non-durables, biotechnology,
pharmaceuticals, health care, transportation (air, rail, truck, sea) utilities, oil exploration, and more. If you
would like more information, review the link below from Fidelity regarding the performance of sectors and
industries.

Fidelity. (n.d.). Sectors & industries overview. Retrieved from
https:
eresearch.fidelity.com/eresearch/markets_sectors/sectors/sectors_in_market.jhtml

Why are we asking you to look at a list of industry sectors and companies? Where is there value in this?

This is not a stock market course. You are co
ect, but this is a course about leadership. The point here is to
frame the big picture for you. How does this information relate to charisma and transformational leadership?
Frame the big picture of the size of corporate America. Leaders in this arena make decisions every day in
every sector. Leaders of these companies face huge challenges both internally and externally, and not
everything goes as smoothly as planned. Showing you how big business leaders handle everyday challenges
will illustrate the charisma and transformational leadership they possess. This translates to the company
emaining competitive both internally (human capital, culture, recruiting, total quality management) and
externally (global competition, economic changes, laws and regulations). By the end of this lesson, you will
have an appreciation for the charismatic and transformational leader.

As a student, you should consider the following questions right now:

 How many charismatic leaders are out there in corporate America?
 What industry, sector, and company do they lead, and do I use their product as a consumer?
 Who are they?
 What are their challenges?
 How are they solving them?

Reflecting on corporate America, what characteristics of charismatic leadership do you believe you have, and
in what areas do you need to improve?

At this reflection point, you will begin to have an appreciation for this lesson. You will learn the information
elow in this unit:

1. You will be taught what the components of charisma are and how a leader uses them effectively.
2. You will conduct your own leadership analysis of your choice of a charismatic or transformational
leader so that you can learn about the challenges and processes these individuals use(d) to
influence, change, and make circumstances better.
3. You will be exposed to a company that had to go through a turnaround and how that CEO had to
come in and change/transform it.
a. Where did he start?
. What were the challenges?
c. How did he execute them?
d. Finally, what were the end results?

Transformational Leadership and Continental Airlines

Gordon Bethune was the Continental Airlines CEO in 1994 who took over the failing company from Frank
Lorenzo, who ran the company and employees into the ground (Puris, 1999).

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MSL 6040, Cu
ent Issues in Leadership 3
UNIT x STUDY GUIDE
Title

Problems: A Salomon Brothers airline analyst noted that the company had fundamental problems. In fact,
Continental lost money 12 of the last 16 years and declared bankruptcy twice (Puris, XXXXXXXXXXApproximately
50% of all flights had a negative cash flow (Puris, XXXXXXXXXXMarkets were retained that were not making money
or filling capacity.

The company’s struggles included more than just financial problems. Company employees were abused and
degraded to the point where employees ripped the Continental logo patch off of their uniforms (Puris, 1999).
Also, due to the poor treatment of the employees, the company lacked employee involvement and
commitment and had an image that customers did not support (Puris, XXXXXXXXXXPeople internally fought each
other and hated management

Solutions: Bethune used his background in the Navy and a positive strategy to
ing success back to
Continental Airlines.


Click here to view the interactive slide on solutions.


When we discuss strategy, we must also discuss the six characteristics of Van Wart’s XXXXXXXXXXframework for
the analysis of transformational leaders. Click the link below to view the characteristics that are listed on p.
761 in the article below.

Van Wart, M XXXXXXXXXXEvaluating transformational leaders: The challenging case of Eric Shinseki and the U.S.
Department of Veterans Affairs. Public Administration Review, 75(5), 760–769. Retrieved from
https:
li
aryresources.columbiasouthern.edu/login?auth=CAS&url=http:
search.ebscohost.com/logi
n.aspx?direct=true&db=bth&AN= XXXXXXXXXX&site=ehost-live&scope=site

After reviewing the aforementioned characteristics, examine Bethune’s strategy for transforming the culture at
Continental Airlines, which is described below (adapted from Puris, 1999):

Strategy Description
Fly to Win  A new scheduling plan for flying in high-traffic
areas was created, and flights that were half-
filled were eliminated.
Fund the Future  Bethune met with creditors (banks),
estructured the debt, and convinced lenders
that new leadership had a well-developed
strategy that would be executed.
 This strategy required Bethune to lay off 1,500
workers to remain competitive (Puris, 1999).
Make Reliability a Reality  The culture had to be reconditioned.
 Bethune fired executives and staff who were
not willing to adapt to new policies.
Monetary Rewards  Monetary rewards were given to employees
whenever the company finished in the top five
of on-time performance. This was a driving
force in cultural change.
 Previous leadership cut out these bonuses,
which saved $10,000 a year (Puris, 1999).
New Image  A new image was created; there were new
uniforms, a new golden glove logo, new plane
interiors, and new menus.
 Morale improved dramatically by treating
people with respect.

So, what is the connection between Van Wart’s XXXXXXXXXXlist on p. 761 and Bethune’s actions? Bethune had
huge challenges internally and externally. He had strategy issues, logistics issues, personnel issues, and
external image and debt problems. He compartmentalized each challenge into his strategy. Bethune certainly
had a huge challenge from low-performing employees, and he motivated them by communicating with them
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MSL 6040, Cu
ent Issues in Leadership 4
UNIT x STUDY GUIDE
Title

and by listening, rewarding, and focusing them on the new plan—a plan that would win. Change was built on
employee momentum, creative ideas, and success.

End Results: Despite the rough road, Continental Airlines found success and had $1 billion in the bank with a
$250 million revolving line of credit (Puris, XXXXXXXXXXContinental Airlines now has three dominant markets in
Houston, Newark, and Cleveland (Puris, XXXXXXXXXXEmployees are also much happier. As Bethune