1. BUSM 4177 / 4194 Leading for Change
Topic 7: Charismatic Leadership

2. Charismatic and transformational leadership Understand:
Learning Objectives
Charismatic and transformational leadership
Understand:
how the theories of charismatic and transformational leadership differ from earlier leadership theories.
similarities and differences among the major theories of charismatic and transformational leadership.
how attributions of charisma are jointly determined by the leader, the followers, and the situation.
what traits, behaviours, and influence processes are involved in charismatic and transformational leadership.
the benefits and costs of charismatic leadership for followers and the organisation.
how to apply the theories to become more effective as a leader.

3. Charisma and charismatic leadership
A special quality of leaders whose purpose, powers and extraordinary determination differentiate them from others (Conger & Kanungo 1988)

4. Charisma and charismatic leadership

5. Charismatic leaders cant succeed without dedicated “followers”
Charismatic leadership points of difference with earlier leadership theories
Charismatic leadership theory calls on emotional and symbolic aspects of leadership
Charismatic leaders cant succeed without dedicated “followers”
You cannot be charismatic on your own, have to command an audience
Differentiate between creativity and innovation
Steve jobs and Steve Cameron

6. Early contributions to charismatic leadership
1947: Weber used the term “charisma” to explain a form of influence based not on traditional or legal–rational authority systems but rather on follower perceptions that a leader is endowed with the gift of divine inspiration or supernatural qualities
Weber, M. (1947) The Theory of social and economic organization
(A.M. Henderson & T.Parsons Trans.) New York: Oxford University Press
1987: Conger and Kanungo argue that Weber’s conceptualisation is “limited by lack of specificity”. They developed a behavioural framework within which charisma could be observed and measured.
If the behaviours related to charisma can be isolated, then perhaps those behaviours can be developed to improve leadership or tested in applicants for leadership roles
Conger & Kanungo’s 1987 article is available on the course website
Charisma is a basket of qualities eg charm passion innovation etc X

7. Attributions of Charisma – 1: Concepts
159

8. Attributions of Charisma – 2: Follower contingencies
Follower attributions of charisma depends on aspects of the situation
Follower disposition
Follower anxiety
Follow disenchantment
I’m building a wall
I’m building a
cathedral
Two bricklayers one the one project were asked “what are you building?”
Disposition = by nature
163

9. The locus of charismatic leadership
Charismatic leaders … value and pursue an interrelated set of images: they are perceived as trustworthy, credible, morally worthy, innovative, esteemed, and powerful (Gardner & Avolio 1998)
Followers must have a strong desire to identify with the leader
Nine charismatic effects (House 1977); Jane A Halpert clustered these outcomes into:
referent power,
expert power &
job involvement.
People are sometimes caught in their own agenda.
Referent power, expert power > charisma < job involvement
Referent power = people refer to a charismatic leader.
Expert power = expert in your area, you know your stuff.
Job involvement = you see them contributing to your cause?
Types of charismatic leaders
Socialized charismatics restrain the use of power in the interest of others. Followers have clear values and independent and honest workers. Eg mother Teresa
Personalized charismatics use power to serve their own interests, followers have an obedient, submissive style
Office-holder charismatics attain their charisma chiefly from the position they hold
Personal charismatics gain esteem from others faith in them as people, independent of office or position held.
Divine charismatics were once define by strictly by the theology concept of possessing divine grace but- X

10. One view of the logic flow of charismatic leadership
A: Charismatic leadership enhances staff motivation
B: Motivated staff achieve superior outputs
C: Superior outputs improve organisational effectiveness
Where is the evidence? X
RMIT University©
School of Management

11. charismatic leadership
Charismatic leadership qualities
Vision
Superb communications skills
Self confidence and moral conviction
High risk orientation
Relational power base
Ability to empower others
Self-promoting personality
Minimal internal conflict
High energy and action orientation
Ability to inspire trust
Relational power base – in order to be charismatic they have to have relations with followers
charismatic leadership X
Howell and Aviolo (1992)

12. Am I a charismatic leader?
There are four attributes that distinguish charismatic from non-charismatic leaders:
Dissatisfaction with the status quo
Compelling nature of the vision
Use of unconventional strategies for achieving desired change
A realistic assessment of resource needs and other constraints for achieving desired change X

13. I need some charisma, do you have any in stock?
charisma is inborn and can not be “picked up”
If you don’t have charisma you aren't “off the leadership track
……….. just in a slower, more challenging lane”
some charisma qualities can be enhanced
strategies for acquiring / enhancing charismatic qualities include:
Developing visionary skills through practice and self-discipline
Practicing being candid
Developing a warm, positive, and humanistic attitude toward people rather than a negative, cool, and impersonal attitude
Developing an enthusiastic, optimistic, and energetic personality X

14. Effects of Charismatic Leadership on staff motivation
Followers trust in “rightness” of the leader’s vision
Similarity of follower’s beliefs and values to those of the leader
Heightened sense of self-confidence to contribute to accomplishment of the mission
Acceptance of higher or challenging goals
Identification with and emulation of leader
Unconditional acceptance of leader
Strong affection for the leader
Emotional involvement of the follower in the mission
Unquestioning loyalty and obedience to the leader
House & Baetx (1979) Leadership: some empirical generalizations and new research directions in B.M. Staw (ed.) Research in Organizational Behavior vol 1 (Greenwich, CT: JAI Press, 1979), X

15. Organizational Effects of Positive Charismatics
Follower growth and development
Environmental adaptation
Achievement-oriented culture
High-performing system
Clearly understood mission
Mission embodies social values
Empowerment
Open communication
Shared information
Structures and systems support mission
169

16. Charisma as a Double-Edged Sword
Are all charismatic leaders necessarily good leaders?
Personalised charismatics
Socialised charismatics
Adolf Hitler
Charles Manson
David Koresh
Rev Jim Jones
Gandhi
Martin Luther King
John Kennedy
Winston Churchill
Dominant, Machiavellian, narcissistic personality
Pursue leader-driven goals, promote feelings of obedience, dependency, and submission in followers
Use rewards and punishment to manipulate and control followers
Use information to preserve the image of leader infallibility or to exaggerate external threats to the organization
Egalitarian, self-transcendant, empowering personality
Pursue organisation-driven goals, promote feeling of empowerment, personal growth, equal participation of followers
Share information with followers and promote a positive organisational outlook
167

17. Cause and effect conundrum
Agle, B Nagarajan, N Sonnenfeld, J, Srinivasan, D
Does CEO Charisma Matter? Academy of Management Journal
Feb 2006 Vol 49 Issue 1 p
“Drawing on 770 surveys from top management team members in these companies, objective stock market and accounting data, and an objective measure of environmental uncertainty, we found that
organizational performance was associated with subsequent perceptions of CEO charisma
but that
perceptions of CEO charisma were not associated with subsequent organizational performance
even after we [controlled for] environmental uncertainty” X
RMIT University©
School of Management

18. What is Transactional leadership?
Followers acknowledge the positional power of the leader
Agreed values and motivations between leader and followers
What is Transactional leadership?
Punish undesirable follower behaviour
Reward follower behaviours and performance X
RMIT University©
School of Management

19. Transactional leadership
Burns (1978) / Bass (1996)
Leaders and followers in an exchange relationship
Very common; tends to be transitory
Ethical element X

20. What is Transformational leadership?
Followers trust, admire and respect the leader
Moving and changing things in a big way by communicating to followers a special vision of the future, tapping into the followers’ higher ideals and motives
What is Transformational leadership?
There is collective “buy-in” to the organisational vision put forth by the leader and followers willingly expend exceptional effort
Changing the status quo by articulating to followers the problems with the current system and providing a compelling vision of how things could be
170
RMIT University©
School of Management

21. Transformational leadership
Burns 1978
Power wielders v. leaders
Serve to change the status quo by:
Appealing to followers’ values
Reframing issues
Operating at a higher level of moral development than followers
171

22. Transformational vs. Transactional Leadership Burns, J. M
Transformational vs. Transactional Leadership Burns, J. M. (1978) Leadership New York. Harper and Row
Transformational leadership
Appeals to moral values
Serves to change the status quo by articulating to followers the problems in the current system and a compelling vision of what a new organization could be
Transactional leadership
Bureaucratic authority
Task completion
Seeks to maintain stability within an organisation through regular economic and social exchanges that achieve specific goals for both the leaders and their followers
171

23. Qualities for bringing about transformation
Bass 1990 says transformational leaders are:
Charismatic
Practice inspirational leadership
Provide intellectual stimulation
Demonstrate concern for individuals
172

24. Role of leader in transformation
Dubrin, Dalglish & Miller 2006 say that the transformational leader’s role is to:
raise people’s awareness
help people look beyond self-interest
help people search for self-fulfilment
help people understand need for change
invest managers with a sense of urgency
be committed to greatness
adopt a long range, broad perspective X

25. Issues in transformational leadership
Special relationship must be built
Does not develop overnight
Prevalent in countries possessing collectivist * societies (Jung et al 1995)
Rosener men described themselves in transactional terms; women described themselves in transformational terms
* Is Singapore a collectivist society? X

26. Transformational Leader Behaviours and Attributes Bass & Avilio’s “Four I” dimensions
Behaviour dimensions
Idealised influence
[role model, followers subscribe to ideals]
Inspirational motivation
[inspire followers with strong vision and motivation]
Individual consideration
[encourage followers with strong communication / attention]
Intellectual stimulation
[challenge followers to be creative / innovative]
Adapted from Bass, B., & Avilio, B. (1994)
Improving organizational effectiveness through transformational leadership Thousand Oaks, CA. Sage Publications X

27. So, does Transformational Leadership differ from Charismatic Leadership?
Some researchers say there isn't really any difference.
Others say that charisma is ONE of the attributes that characterise transformational leaders (the others being honesty, optimism, communication skills, confidence and consideration)
But we do know that charisma is RELATIONAL in nature (ie it only works if the followers recognise the leader’s charisma)
Leader traits and behaviours
Follower values, needs, perceptions and beliefs
177
RMIT University©
School of Management

28. Is it possible to be transformational but not charismatic?
Can influence followers by meeting their emotional needs and providing intellectually stimulating rationale on the need for change.
Bill Gates?
Transformational and charismatic:
Nelson Mandela?
Transactional leadership:
-agreed values and motivations with followers
-reward follower behaviors and performance X
RMIT University©
School of Management

29. Acknowledgements VERSION: 1
Presentation developed by Ian Woodruff, School of Management,
RMIT University
RMIT is proud to partner with Pearson Australia in the development of the customised resources for this course.
This presentation draws on material from chapter seven of the course textbook Sustainable Leadership people, technology and design – an RMIT Custom Publication, Pearson® Australia and is subject to copyright.
Images included in this presentation are licenced under creative commons. Learn more about the creative commons scheme here.
Graphics used in this presentation were created using Presenter Media Software licenced to Ian Woodruff, RMIT University.
Presenter Media retains copyright for these graphics.
VERSION: 1