This document discusses two theories of leadership: charismatic leadership and transactional leadership. Charismatic leadership involves using communication skills, persuasiveness and charm to influence others. It can be highly motivating but also self-serving. Transactional leadership focuses on short-term goals and using rewards and penalties to motivate followers according to clearly defined rules and procedures. While effective for large organizations, it limits creativity. Both styles have benefits for certain environments but also potential drawbacks if not implemented properly.

1. CHARISMATIC
THEORY
OF LEADERSHIP

2. What is Charismatic Leadership?
Charismatic leadership is defined by a
leader who uses his or her
communication skills, persuasiveness,
and charm to influence others.

3. Strong communicator
Empathetic and relatable
Confident
Motivational
Engaging and charming
Optimistic
Characteristics of Charismatic Leader

4. What are the pros and cons of
charismatic leadership?
Highly inspirational and
motivating
Encourages a sense of
camaraderie, collaboration, and
union
Makes followers feel heard and
understood
Creates movement toward
positive change
Pros

5. What are the pros and cons of
charismatic leadership?
Can become more focused on
themselves than their people
Has the potential to become self
serving
Frequently viewed as shallow or
disingenuous
Cons

6. How to apply charismatic
leadership
Practice vulnerability
Develop your Listenig Skills
Be Transparent

7. Example of Charismatic Leader
Martin Luther King Jr
Adolf Hitler
Barack Obama
Indra Nooyi

8. TRANSACTIONAL THEORY
OF LEADERSHIP

9. What is Transactional Leadership?
Transactional leadership focuses on results,
conforms to the existing structure of an
organization and measures success
according to that organization’s system of
rewards and penalties. Transactional leaders
have formal authority and positions of
responsibility in an organization.

10. Transactional
leadership style
Focused on short-term goals
Favor structured policies and
procedures
Thrive on following rules and doing
things correctly
Revel in efficiency
Very left-brained
Tend to be inflexible
Opposed to change

11. Rewards those who are motivated by self-
interest to follow instructions
Provides an unambiguous structure for large
organizations, systems requiring repetitive
tasks and infinitely reproducible
environments
Achieves short-term goals quickly
Rewards and penalties are clearly defined for
workers
What are the pros and cons of
transactional leadership?
Pros

12. Rewards the worker on a practical level
only, such as money or perks
Creativity is limited since the goals and
objectives are already set
Does not reward personal initiative
What are the pros and cons of
transactional leadership?
Cons

13. Benefits of transactional leadership
There is definitely a place for
transactional leadership in the
world today.
•One of its best uses is in
multinational corporations
where not all of the workers
speak the same language. Once
the structure and the
requirements are learned, it is
easy for workers to complete
tasks successfully.

14. Benefits of transactional leadership
•The military, policing
organizations, and first
responders use this style
of leadership so that all
areas of the organization
are consistent.

15. Example of Transactional Leader
Martin Luther Kinr
Vince Lombardi
Barack Obama
Indra Nooyi

16. References:
https://torch.io/blog/what-is-charismatic-
leadership/#:~:text=Charismatic%20leadership%20is%20d
efined%20by,are%20struggling%20to%20move%20forwar
d.
https://online.stu.edu/degrees/education/what-is-
transactional-leadership/