Since the early 1980s, more than fifty empirical studies have been conducted to test the validity of the more recent theories of leadership. Empirical evidence is discussed in more detail below. First, however, the valued based leadership theory will be described.

VALUE BASED LEADERSHIP THEORY

The theory is intended to integrate the newer theories and the empirical evidence alluded to above. Value based leadership is defined as a relationship between an individual (leader) and one or more followers based on shared strongly internalized ideological values espoused by the leader and strong follwower identification with these values. Ideological values are values concerning what is morally right and wrong. Such values are expressed in terms of personal moral responsibility, altruism, making significant social contributions to others, concern for honesty, fairness, and meeting obligations to others such as followers, customers, or organizational stakeholders. Value based leadership is asserted to result in: a) exceptionally strong identification of followers with the leader, the collective vision espoused by the leader, and the collective; b) internalized commitment to the vision of the leader and to the collective; c) arousal of follower motives that are relevant to the accomplishment of the collective vision; and d) follower willingness to make substantial self sacrifices and extend effort above and beyond the call of duty.

The title Value Based Leadership Theory has been chosen to reflect the essence of the genre of leadership described by the theory. The 1976 theory of charismatic leadership is a precursor to the value based leadership theory. The title “charismatic leadership” has been chosen because of its cavalier popular connotation. The term charisma is often taken in the colloquial sense, rather than the somewhat technical sense conceived by Max Weber. The word charisma commonly invokes impressions of a person who is charming, attractive, and sometimes macho, flamboyant, and sexually appealing. In contrast, Value Based Leadership is intended to convey the notion of a leader who arouses follower latent values or causes followers to internalize new values. Such value communication can be enacted in a quiet, non-emotionally expressive manner or in a more emotionally expressive manner. Examples of leaders who have communicated values to followers in an emotionally expressive manner are Winston Churchill, Lee Iacocca, Martin Luther King, and John F. Kennedy. Examples of leaders who have communicated values to followers in a less emotionally expressive manner are Mother Teresa, Mahatma Ghandi, and Nelson Mandela.

A second reason for abandoning the term charisma is that in current usage it implies that the collectivities led by charismatic leaders are highly leader-centered and that the leader is the source of all, or almost all, organizational strategy and inspiration of followers. One popular conception of charismatic leadership is that it is necessarily highly directive and disempowering of followers (Lindholm, 1990). In this paper, I hope to demonstrate the huge potential for value based leadership to be empowering and effective.

The Process and Effects of Value Based Leadership

In this section, an overview of what Value Based leadership is and how it works is presented. There is both theory and empirical evidence to suggest that value based leadership has a substantial effect on organizational performance. Waldman and his associates reported two studies of value based leader behavior as an antecedent to organizational profitability (Waldman, Ramirez & House, 1996; Waldman, Atwater & House, 1996). In these studies value based leadership accounted for between fifteen and twenty five percent of firm profitability over the three years following the time at which value based leadership was assessed. The design of these studies controlled for executive tenure, firm size, environmental turbulence, and prior firm profitability.

The theoretical process by which value-based leadership functions is described in the following paragraphs. Evidence for this process is presented in more detail in later sections in which the specific theories contributing to value based leadership theory is discussed.

Value based leaders infuse collectives, organizations, and work with ideological values by articulating an ideological vision, a vision of a better future to which followers are claimed to have a moral right. By claiming that followers have this right, the values articulated in the vision are rendered ideological - expressions of what is morally right and good. Ideological values are usually, if not always, end values which are intrinsically satisfying in their own right. In contrast to pragmatic values such as material gain, pay, and status, end values cannot be exchanged for other values. Examples of end values are independence, dignity, equality, the right to education and self-determination, beauty, and a world of peace and order. Ideological values theoretically resonate with the deeply held values and emotions of followers.

Acccording to value based leadership theory the visions articulated by this genre of leaders are consistent with the collective identity of the followers, and are emotionally and motivationally arousing. Emotional and motivational arousal induces follower identification with the collective vision and with