Welsh Consultants publishes- Charismatic leadership is defined by a leader who uses his or her communication skills, persuasiveness, and charm to influence others. Charismatic leaders, given their ability to connect with people on a deep level, are especially valuable within organizations that are facing a crisis or are struggling to move forward. Every charismatic leader looks a little bit different. However, there are many key characteristics that most charismatic leaders share: Strong communicator, Empathetic and relatable, Confident, Motivational , Engaging and charming, Optimistic. You may notice that charismatic leadership shares many traits with transformational leadership. While similar, there’s one important difference: charismatic leaders rely on their own personality and skillset to move their followers to action, while transformational leaders rely on a shared vision to create change. So while most transformational leaders tend to be charismatic, not all charismatic leaders are necessarily transformational. This paper explores this in detail. Author, Founder- Manish P

1. CHARISMATIC LEADERSHIP
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January 4, 2021
IMPORTANCE OF CHARISMATIC LEADERSHIP
How important is charisma in a leader? While at least a moderate level is important, too much may hinder a leader’s
effectiveness, according to research published by the American Psychological Association. Findings suggest that
organizations may want to consider selecting applicants with mid-range levels of charisma into leadership roles,
instead of extremely charismatic leaders.
A recent study took a trait perspective on charisma by measuring charismatic personality using 56 questions, known
as the charismatic cluster, from the Hogan Development Survey, an instrument used to assess the personality of
leaders. The charismatic cluster focuses on four personality tendencies- bold, mischievous, colourful and imaginative.
To confirm the cluster as a valid measurement, the researchers compared the scores from 204 leaders who took the
personality test with subordinates’ ratings of their charismatic leadership and found a significant correlation. In a
second sample, they also found an association between the charismatic cluster and self- and observer-rated charisma-
related personality tendencies described in the literature.
In two other studies, the researchers compared the charisma scores of nearly 600 business leaders with their
effectiveness as reported by peers, subordinates and superiors. In both studies, they found that as charisma
increased, so did perceived effectiveness, but only up to a point. At a certain level, as charisma scores continued to
increase, perceived effectiveness started to decline. Leaders with both low and high charismatic personalities were
perceived as being less effective than leaders with moderate levels of charisma, and this was true according to all
three rater groups. Further analysis of the data suggests that the point at which the relationship between charisma
and effectiveness turns negative can be moderated by an individual’s level of adjustment, or ability to cope with
stressful events. The researchers also discovered that low-charisma leaders were seen as less effective because they
were not sufficiently strategic, while high-charisma leaders were seen as less effective because they were weak on
operational behaviour.

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January 4, 2021
IMPORTANCE OF CHARISMATIC LEADERSHIP
An operational leader is someone who guides the team to get things done in the near term by managing the tactical
details of execution, focusing resources and managing with process discipline. Strategic leadership, on the other
hand, involves effectively communicating a vision for an organization and persuading others to share that vision.
Because they appeared to exhibit both of these behaviours in adequate amounts, moderately charismatic leaders were
rated most effective. The findings were partially surprising because the researchers had expected that interpersonal
characteristics associated with charisma might also play a role, but they found no such association. While
conventional wisdom suggests that highly charismatic leaders might fail for interpersonal reasons like arrogance and
self-centeredness, findings suggest that business-related behaviours, more than interpersonal behaviour, drive leader
effectiveness ratings.
This research may have important practical implications for the selection, training and development of future leaders.
For one thing, organizations may want to consider selecting applicants with mid-range levels of charisma for
leadership roles, instead of extremely charismatic ones. Current and potential leaders could also receive more
specialized training based on their level of charisma. Highly charismatic leaders would probably gain the most from
a coaching program focused on addressing operational demands such as attending to day-to-day operations and
managing an orderly workflow. Low-charisma leaders, on the other hand, would benefit from training in more
strategic behaviour such as spending more time and energy on long-term planning, taking a broader perspective on
the business as a whole, questioning the status quo and creating a safe environment for trying new things.

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January 4, 2021
DEFINITIONS OF CHARISMA & CHARISMATIC
LEADERSHIP
The study of charisma and the difference views of authors have given charisma different definitions.
1. A certain quality of an individual personality by virtue of which he or she is set apart from ordinary people
and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or
qualities (sexist language changed), ( Max Weber).
2. A devotion to the specific and exceptional sanctity, heroism, or exemplary character of an individual person
and of the normative patterns revealed or ordained by that person (Max Weber).
3. Endowment with the gift of divine grace (Bernard M. Bass).
4. The process of influencing major changes in the attitudes and assumptions of organization members, and
building commitment for the organization’s objectives (Gary A. Yukl).
5. Leadership that has a magnetic effect on people (James M. Kouzes and Barry Z. Posner).
6. In combination with individualized consideration, intellectual stimulation, and inspirational leadership, a
component of transformational leadership (Bernard M. Bass, cited in Kenneth E. Clark and Miriam B. Clark).
Charismatic authority is a concept of leadership developed by the German sociologist Max Weber. It involves a type
of organization or a type of leadership in which authority derives from the charisma of the leader. This stands in
contrast to two other types of authority: legal authority and traditional authority. Each of the three types forms part
of Max Weber's tripartite classification of authority. "Charisma" is an ancient Greek term that initially gained
prominence through Saint Paul's letters to the emerging Christian communities in the first century. In this context, it
generally referred to a divinely-originating "gift" that demonstrated the authority of God within the early leaders of
the Church. Max Weber took this theological notion and generalized it, viewing it as something that followers
attribute, thereby opening it up for use by sociologists who applied it to political, military, celebrity, and non-
Christian religious contexts. Other terms used are "charismatic domination" and "charismatic leadership".

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ADVANTAGES OF CHARISMATIC LEADERSHIP
• Increased Employee Loyalty – Because charismatic leaders are adept at motivating and inspiring employees, it is
likely that leaders can encourage an increase employee loyalty and commitment. Their goal is to make employees feel
that their work and talents matter. Therefore, it is likely that employee engagement will increase and turnover could
decrease.
• Leader Creation – Charismatic leaders and managers have an infectious personality that can spur up-and-coming
employees to become leaders eventually. The qualities of these leaders can take on a trickle-down effect and become
a part of an employee’s eventual management style.
• Higher Productivity – These leaders are exceptionally skilled at gaining the trust and respect of those who they
manage. As a result, employees are more likely to adhere to the high expectations of charismatic leaders. The effects
of this have a high probability of spurring increased productivity and better-quality work.
• A Move Toward Innovation – Charismatic leaders are driven toward change and innovation that makes sense.
Therefore, these individuals will always look for opportunities to better the organization and improve processes. This
means the company can always stay up-to-date on the latest trends and organizational practices.
• Establish a Learning Culture – Major qualities of charismatic leadership are humility, effective communication, and
improvement. Because these leaders have focused more on growth then punishment, mistakes are treated as learning
opportunities. Employees are encouraged to find another solution to problems when the original plan did not work. This
could create a setting where employees feel more comfortable taking a risk and finding better solutions.
•