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Organizational Behavior
Charismatic and 
transformational 
leadership
Charismatic leadership 
 Max Weber (1947) used the term “charisma” as a 
source of power. 
 Charisma in Greek means “divinely inspired gift”, 
exceptional qualities, such as the ability to perform 
miracles or predict future events. 
 Leaders who appear confident about their vision, 
make self-sacrifices, pay high costs to achieve their 
vision are more likely to be viewed as charismatic 
leaders.
Charismatic leadership and 
crisis 
 Research has consistently shown that under 
conditions of crisis, threat, and stress, 
followers seek and respond positively to 
individuals who are bold, confident, and 
appear to have clear solutions to existing 
problems.
Charismatic leader behaviors 
Some specific charismatic leader behaviors (House & 
Shamir, 1993): 
 articulation of a vision, 
 communication of high performance 
expectations of followers, 
 demonstration of a high degree of confidence 
in followers, 
 emphasizing value and collective identification, 
 taking extraordinary risks, 
 making substantial personal sacrifices in the 
interest of the charismatic mission.
Visionary leadership 
 The ability to create and articulate a realistic, 
credible, attractive vision of the future for an 
organization or organizational unit that grows 
out of and improves upon the present.
Mechanisms of charismatic 
leadership 
 Followers seek their leader’s approval and it is very 
important to them to please and imitate the leader. 
 The influence of a charismatic leader is due to the 
internalization of new values and beliefs by 
followers. 
 Charismatic leaders create a sense of urgency that 
requires greater effort by followers to meet high 
expectations.
Negative sides of charismatic 
leadership 
 Being in awe of the leader reduces good 
suggestions by followers. 
 Adoration by followers creates delusions of 
infallibility. 
 Excessive confidence and optimism blind the leader 
to real dangers. 
 Dependence on the leader inhibits development of 
competent successors. 
 Charismatic leaders may seek to dominate followers 
by keeping them dependent on the leader.
Components of transformational 
leadership (Burns, Bass, Avolio) 
 Idealized influence: behaviors that arouse strong followers’ 
emotions and identification with the leader. 
 Individualized consideration: providing support, encouragement, 
and coaching to followers. 
 Inspirational motivation: communicating an appealing vision and 
modeling appropriate behaviors. 
 Intellectual stimulation: behaviors that increase followers’ 
awareness of problems and viewing problems from new 
perspectives.
Transformational and charismatic 
leadership 
 The purely charismatic leadership may want 
followers to adopt the leader’s world view and 
go no further. 
 However, transformational leadership 
attempts to encourage followers to question 
not only established views but those 
established by the leader.
Developing a vision as 
an initiator of change 
 A clear and compelling vision is very useful to guide 
change. 
 Vision help people to justify their sacrifices and 
hardships the change will require. 
 Vision provide hope for better future. 
 Vision coordinate organizational actions.

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Leadership 2

  • 3. Charismatic leadership  Max Weber (1947) used the term “charisma” as a source of power.  Charisma in Greek means “divinely inspired gift”, exceptional qualities, such as the ability to perform miracles or predict future events.  Leaders who appear confident about their vision, make self-sacrifices, pay high costs to achieve their vision are more likely to be viewed as charismatic leaders.
  • 4. Charismatic leadership and crisis  Research has consistently shown that under conditions of crisis, threat, and stress, followers seek and respond positively to individuals who are bold, confident, and appear to have clear solutions to existing problems.
  • 5. Charismatic leader behaviors Some specific charismatic leader behaviors (House & Shamir, 1993):  articulation of a vision,  communication of high performance expectations of followers,  demonstration of a high degree of confidence in followers,  emphasizing value and collective identification,  taking extraordinary risks,  making substantial personal sacrifices in the interest of the charismatic mission.
  • 6. Visionary leadership  The ability to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that grows out of and improves upon the present.
  • 7. Mechanisms of charismatic leadership  Followers seek their leader’s approval and it is very important to them to please and imitate the leader.  The influence of a charismatic leader is due to the internalization of new values and beliefs by followers.  Charismatic leaders create a sense of urgency that requires greater effort by followers to meet high expectations.
  • 8. Negative sides of charismatic leadership  Being in awe of the leader reduces good suggestions by followers.  Adoration by followers creates delusions of infallibility.  Excessive confidence and optimism blind the leader to real dangers.  Dependence on the leader inhibits development of competent successors.  Charismatic leaders may seek to dominate followers by keeping them dependent on the leader.
  • 9. Components of transformational leadership (Burns, Bass, Avolio)  Idealized influence: behaviors that arouse strong followers’ emotions and identification with the leader.  Individualized consideration: providing support, encouragement, and coaching to followers.  Inspirational motivation: communicating an appealing vision and modeling appropriate behaviors.  Intellectual stimulation: behaviors that increase followers’ awareness of problems and viewing problems from new perspectives.
  • 10. Transformational and charismatic leadership  The purely charismatic leadership may want followers to adopt the leader’s world view and go no further.  However, transformational leadership attempts to encourage followers to question not only established views but those established by the leader.
  • 11. Developing a vision as an initiator of change  A clear and compelling vision is very useful to guide change.  Vision help people to justify their sacrifices and hardships the change will require.  Vision provide hope for better future.  Vision coordinate organizational actions.