Chapter 9

Part Three: Organizational

Leadership

Charismatic and
Transformational
Leadership
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 Learning Outcomes
1) Briefly explain Max Weber’s conceptualization of charisma.
2) Explain what is meant by the phrase “locus of charismatic leadership”.
3) Discuss the effects of charismatic leadership on followers.
4) Discuss how one can acquire charismatic qualities.
5) Distinguish between socialized and personalized charismatic leader
types.
6) Explain the four stages of the transformation process.
7) List the qualities of effective charismatic and transformational leaders.
8) Describe the four behavior dimensions associated with
transformational and charismatic leaders.
9) Distinguish between charismatic and transformational leadership.
10) Explain the basis of stewardship and servant leadership.

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 Weber’s Conceptualization
of Charisma
• The sociologist Max Weber believed charismatic leaders
had a vision that spurred followers to action.
• Vision is the ability to imagine different and better
conditions and the ways to achieve them.
• Charisma is a social construct between the leader and
follower, in which the leader offers a transformative
vision or ideal which exceeds the status quo and then
convinces followers to accept this course of action not
because of its rational likelihood of success, but because
of their implicit belief in the extraordinary qualities of
the leader.
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 Locus of Charismatic Leadership

What is the basis of charisma?

A combination
The situation
The leader’s of the
or social
extraordinary situation and
climate facing
qualities. the leader’s
the leader.
qualities.

External locus of Internal locus of An interaction

charismatic leadership. charismatic leadership. of the two.
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 Effects of Charismatic Leaders
on Followers
> Develop a strong sense of trust and bonding with the leader.
o Mostly due to the leader’s transcendent vision.

> Show unconditional acceptance of the leader.

> Develop self-confidence and self-efficacy.
> Show increased organizational citizenship and empowerment.
> Assume greater risk.
> Show loyalty and obedience to the leader.
> Set/aim for higher goals or ideals.
> Align their beliefs, self-concept, cognitions and values with
those of the leader.
See Exhibit 9.1.

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 How One Acquires
Charismatic Qualities
Suggested strategies:
> Through training and practice, you can improve
your communication and interpersonal skills.
> While still in college, develop your visionary
skills by practicing the act of creating a vision.
> You can practice being candid.
> Through a leadership development workshop
or seminar, you can develop an enthusiastic,
optimistic, and energetic personality profile.

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 Charisma: A Double Edged Sword
• Positive or negative charisma lies in the
values and motives of the leader.
> The socialized charismatic leader (SCL) is one
who possesses an egalitarian, self-transcendent,
and empowering personality and uses charisma
for the benefit of others.
> The personalized charismatic leader (PCL) is one
who possesses a dominant, self-centered, self-
aggrandizing and narcissistic personality and
uses charisma for self-glorification.
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 Transformational Leadership
• Transformational leadership seeks 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 seeks to maintain
stability within an organization through
regular economic and social exchanges that
achieve specific goals for both the leaders and
their followers.
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 Effects of Transformational Leadership
• Positive effects on:
> organizational performance, culture, and learning.
> Follower organizational commitment.
> Employee turnover rates, performance and
citizenship behavior.
• Effective transformational leaders shift focus
from self-interest to collective interests.
• Transformational leadership is associated
with improved creativity and decision quality.
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 Transformational and Transactional
Leadership

Transformational Transactional
Leadership Leadership
• Is about changing • Is about exchanging
the status quo. valued benefits.
• Is vision-oriented. • Is task & reward-oriented.
• Values change. • Values stability.
• Is more enduring. • Tends to be transitory.

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 The Transformation Process
• Transformational leaders usually enter an
organization experiencing a decline or in need of a
major change in direction.
• A four-part transformation process starts with the
leader’s ability to:
1) Challenge the status quo and make a convincing case for
change,
2) Present an inspiring vision of the future,
3) Provide effective leadership during the transformation,
and
4) Institutionalize the change.
See Exhibit 9.2.
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 Qualities of Effective Charismatic and
Transformational Leadership
• Vision,
• Superb communication skills,
• Self-confidence and moral conviction,
• Ability to inspire trust,
• High-risk orientation,
• High energy and action orientation,
• Relational power base,
• Achievement orientation,
• Ability to empower followers, and
• Self-promoting personality.
See Exhibit 9.3 and following explanatory text.
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 Transformational and Charismatic Leader
Behaviors
• Both leaders use the following behavior
dimensions, known as the “four I’s”.
> Idealized influence.
o Infuse followers with a sense of idealism.
> Inspirational motivation.
o Passionately communicate a future vision.
> Individual consideration.
o They serve as mentors to followers.
> Intellectual stimulation.
o Inspire followers to solve problems creatively.
See Exhibit 9.4.
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 Charismatic and Transformational
Leadership: What’s the Difference?
• Not all transformational
Personal meaning is
the degree to which leaders are charismatic.
people’s lives make • Each achieves their
emotional sense and to labels in different ways.
which the demands
confronted by them are • They often have
perceived as being differing mind-sets.
worthy of their energy
and commitment.

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 Stewardship and Servant Leadership
• Some use the term values-based leadership
to describe these two leadership types.
> Stewardship is an employee-focused form of
leadership that empowers followers to make
decisions and have control over their jobs.
> Servant leadership is leadership that transcends
self-interest to serve the needs of others, by
helping them grow professionally and personally.

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 Attributes of the Effective
Steward Leader
• Strong team orientation.
• Decentralized decision making and power.
• Equality – honesty, respect, and mutual
trust prevail when there is equality.
• Reward – must have rewards aligned with
performance.
See Exhibit 9.5.
> Steward leaders coach followers to lead.

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 Attributes of the Effective
Servant Leader
• Helping others discover their inner spirit.
• Earning and keeping others’ trust.
• Service over self-interest.
• Effective listening.
See Exhibit 9.6.
> Servant leadership is centered on a strong
service orientation and moral-spiritual
grounding.

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 Key Terms
• charisma • stewardship
• personalized • transformational
charismatic leader leadership
(PCL) • transactional
• personal meaning leadership
• servant leadership • vision
• socialized charismatic
leader (SCL)

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