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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 Charismatic Leadership
• Charismatic and transformational theories
return our focus to organizational
leadership.
• Charismatic and transformational leaders
influence followers who then rally toward a
shared goal.
• Social, cultural, economic, and political
systems are all impacted by these leaders.

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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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 Exhibit
Exhibit 9.1
9.1
The Effects of Charismatic Leaders on Followers

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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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 Discussion Questions

• Explain the importance of effective

communication skills for charismatic and
transformational leaders.
• Charismatic leaders are said to possess special
traits that influence their behaviors.
> Three such traits described in the chapter are
envisioning, empathy, and empowerment.
> Explain how each of these traits influences how
followers perceive the charismatic leader.
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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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 Discussion Questions

• A strong emotional attachment and loyalty to a

charismatic leader can have both beneficial and
detrimental effects on followers.
> Explain both types of effects on followers.
• In Chapter 5, different types of power:
> legitimate, reward, coercive, referent, expert,
connection, and information power,
and influencing tactics were discussed.
> What type of power is the charismatic leader most
likely to be associated with and why?
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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.

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 The Transformation Process

Stage 1 Stage 2 Stage 3 Stage 4

Make a case for Present a Lead the Institutionalize
change. shared vision. transformation. the change.
• Challenge • Encourage • Instill a sense • “greatness
the status others. of urgency. attitude”.
quo. • Involve others. • Empower • Change
• Identify • Express new followers. appraisal and
attractive vision in • Establish rewards.
new trends. ideological priorities. • Implement
Source: Based on Carolyn Hines and terms. • Minimize risk. team-building.
William Hines Jr., “Seminar on the
Essence of Transformational • Inspire • Avoid a • Task force
Leadership (Leadership Training
Institute),” Nation’s Cities Weekly followers. “quick fix”. monitors
25(9) (March 4, 2002): 8.
progress.
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 Exhibit 9.3
Qualities of Effective Charismatic and
Transformational Leaders

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 Exhibit 9.4
Transformational and Charismatic
Leader Behaviors

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 Charismatic and Transformational Leadership:
What’s the Difference?
• Not all transformational leaders
Personal meaning is are charismatic.
the degree to which • Each achieves their labels in
people’s lives make different ways.
emotional sense and to • They often have differing mind-
which the demands sets.
confronted by them are • Their career paths usually
perceived as being differ.
worthy of their energy • Each perceives their personal
and commitment. meaning differently.
• They face different degrees of
risk from opponents.
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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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 Exhibit 9.5
Attributes of Effective Stewardship

Stewardship is more about facilitating than

actively leading.

Stewardship leaders don’t lead; they coach

followers to do the leading.

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 Exhibit 9.6
Attributes of the Effective Servant Leader

Servant leadership is centered on a strong

service orientation and moral-spiritual grounding.

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 Discussion Questions

• Servant leadership emphasizes being able

to serve and lead.
> In your opinion, is this contradictory or doable?
• Do you believe everyone has the same
capability to become a servant leader; or
are some people by their nature more
inclined to be servant leaders?

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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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