1. Charismatic and Transformational Leadership
Topic 16
Charismatic and Transformational Leadership

2. Charismatic and Transformational Leadership
Charismatic leaders are passionate, driven individuals who are able to paint a compelling vision of the future.
The combination of a compelling vision, heightened emotional levels, and strong personal attachments often compels followers to put forth greater effort to meet organizational or societal challenges.

3. Charismatic Leadership
Before 1980, charisma was mostly the province of researchers studying political leadership and the leadership of social movements or religious cults. Charisma was rarely considered within the literature on organizational leadership. In contrast, researchers today are very interested in studying charismatic leadership by entrepreneurs who build new organizations and executives who revitalize established ones. Charismatic and transformational leadership are terms used interchangeably by some writers, but some writers argue a shade of difference.

4. Thoughts to Discuss
Can charismatic leadership exist in both small and large organizations?
Can it exist at different levels in an organization?
Is it associated primarily with leaders promoted internally or with new leaders brought in to an organization?

5. Early Conceptions of Charismatic Leadership
Charisma is a Greek word that means “divinely inspired gift.” The sociologist Max Weber (1947) used the term to describe a form of influence based not on tradition or formal authority but rather on follower perceptions that the leader is endowed with exceptional qualities. According to Weber, charisma occurs when there is a social crisis, a leader with exceptional personal qualities emerges with a radical vision that provides a solution to the crisis and attracts followers who believe in the vision and perceive the leader to be extraordinary.

6. Max Weber
The most important early research on charismatic leadership was completed by Max Weber, who maintained that societies could be identified in terms of one of three types of authority systems: traditional, legal- rational, and charismatic.

7. Traditional Authority System
The traditions and unwritten laws of the society dictate who has authority and how this authority can be used.

8. Legal-Rational Authority System
Authority derives from society’s belief in the laws that govern it.

9. Charismatic Authority
Authority stems from the society’s belief in the exemplary characteristics of the leader.

10. Source of Charisma
Over the years since the concept was proposed by Weber, a major controversy has been whether charisma is primarily the result of leader attributes, situational conditions, or an interactive process between the leader and followers.

11. Source of Charisma
Charisma is a result of all three --- thus, the importance of the leader-follower- situation framework.

12. How Charismatic Leaders Influence Followers
According to House (1977), a charismatic leader has profound and unusual effects on followers. The followers of a charismatic leader perceive that the leader’s beliefs are correct, accept the leader most often without question, follow the leader willingly, feel affection toward the leader, are emotionally involved in the mission of the group or organization, believe that they can contribute to the success of the mission, and have high performance goals.

13. How Charismatic Leaders Influence Followers
Charismatic leaders are likely to have a strong need for power, high self-confidence, and a strong conviction in their own beliefs and ideals.
Charismatic leaders are likely to engage in behaviors designed to impress the followers that the leader is competent (e.g., display confidence, talk about prior achievements).

14. How Charismatic Leaders Influence Followers
Charismatic leaders are likely to articulate ideological goals relating the mission of the group to deeply rooted values, ideals, and aspirations shared among the followers.
Charismatic leaders are likely to set an example in their own behavior for follower to imitate. This role modeling involves more than just imitation of leader behavior.

15. How Charismatic Leaders Influence Followers
Charismatic leaders are likely to communicate high expectations about follower’s performance while simultaneously expressing confidence in followers.

16. Characteristics of Charismatic Leaders
High degree of self-confidence
Strong conviction in the correctness of their ideas
High level of energy and enthusiasm
High degree of expressiveness
Excellent communication and articulation skills
Active role modeling and image building

17. Characteristics of Followers of Charismatic Leaders
High degree of respect and esteem for leader
Loyalty and devotion to leader
Affection for the leader
High performance expectations
Willing compliance to the leader

18. Situational Requirements of Charismatic Leadership
Sense of distress or crisis
Perceived need for change
Opportunity to articulate ideological goal
Availability of dramatic symbols
Opportunity to clearly articulate followers’ role

19. Are Charismatic Leaders Always Good?
Charismatic leaders can have either tremendously positive or negative effects on followers, organizations, and societies and the differences may be explained by their value systems.

20. Dark Side of Charismatic Leadership (similar to dark side personality traits)
Charisma can be exercised for evil purposes. Some charismatic leaders are unethical, abuse power, and lead their organizations toward illegal and immoral ends.
For example,…………………………………..

21. Burns (1978) Theory of Transformational & Transactional Leadership
Burns’ 1978 Theory of Transformational and Transactional Leadership distinguished first between power and leadership. Power wielders influence others to attain their own personal goals; leaders mobilize resources to arouse and satisfy followers’ needs and goals.

22. Burns (1978) Theory of Transformational & Transactional Leadership
Leadership itself can take one of two forms:
Transactional Leadership is an exchange relationship that is mutually beneficial to leader and followers and built around the modal values such as honesty and fairness.
Transformational Leadership changes the status quo by appealing to a higher purpose and to end values such as liberty and equality.

23. Transactional Leadership
Transactional leadership occurs when leaders and followers are in an exchange relationship in order to get needs met.
Transactional leadership: Leaders who guide or motivate their followers direction of established goals by clarifying role and task requirements.

24. Transformational Leadership
Transformational Leadership serves to change the status quo by appealing to followers’ values and their sense of higher purpose.
Transformational Leadership:
Leaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements.
Leaders who also are capable of having a profound and extraordinary effect on their followers.

25. Bass’ Theory of Transformational and Transactional Leadership
Transformational leaders possess charismatic- leader characteristics (vision, rhetorical skills, etc.).
Transactional leaders do not possess these leader characteristics, nor are they able to develop strong emotional bonds with followers or inspire followers to do more than they thought they could. Instead, transactional leaders motivate followers by setting goals and promising rewards for desired performance.

26. Important Distinction
Bass et. al, suggest:
All transformational leaders are charismatic, but not all charismatic leaders are transformational.
But see next slide---Pierce and Newstrom et. al.,suggest:

27. Charismatic and Transformational Leadership
Charismatic leaders generate extremely intense loyalty, passion, and devotion
Transformational leaders use their personal values, vision, passion, and a commitment to a mission to energize and move others
Charismatic leaders by definition are transformational, but not all transformational leaders are charismatic

28. Groups that lack vision
A Leaders’ Vision Of the Future Can Align Efforts and Help Groups Accomplish More
Groups that lack vision
Groups with vision

29. Guidelines for Transformational Leaders
Articulate a clear and appealing vision.
Explain how the vision can be attained.
Act confident and optimistic.
Express confidence in followers.
Provide opportunities for early successes.
Celebrate successes.
Use dramatic, symbolic actions to emphasize key values.
Lead by example.
Empower people to achieve the vision.

30. Concluding Thoughts about the Characteristics of Charismatic and Transformational Leadership
It is an interaction between leader, follower, and the situation; all conditions do not have to be met; position or celebrity status is not sufficient but may appear to be like charismatic leadership; it takes time for such relationships to develop.

31. Training and Selecting Charismatic Leaders
While some aspects may be improved through training, it has yet to be demonstrated that charismatic leadership can be trained. Unfortunately, selection of charismatic leaders is little better since we can’t identify the personality traits which differentiate them and also because charisma exists largely in the eyes of the followers.

32. True Measure of Charismatic Leadership
The true measure of Charismatic Leadership is the followers’ reaction to the leader.
i.e.--- The most critical component of charismatic leadership is the response of the followers.

33. Challenges to the Validity of Charismatic Leaders
Most leadership researchers doubt that charisma can be accurately defined and measured. Also, charismatic leaders are not liked by everyone. According to the concept of leadership polarity, leaders are often either revered or vastly unpopular. People rarely feel neutral about them. Also, charisma may not be required for leadership effectiveness. Bennis and Nanus hypothesize that people who are outstanding leaders are perceived as charismatic by their constituents as a result of their success.