The document discusses charismatic leadership and its relationship to visionary leadership. It notes that Max Weber defined charisma as a source of power and that charismatic leaders appear confident in their vision, are willing to make sacrifices, and pay costs to achieve their vision. Research shows that in times of crisis, people seek bold leaders with clear solutions. Charismatic leaders communicate high expectations, demonstrate confidence in followers, emphasize shared values, and take risks. Visionary leadership involves creating and articulating a realistic vision for the future that builds on the present.

2. 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.

3. 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.
• A leader may be able to create a sense of
dissatisfaction with current situation and
provide a vision of a more promising future.
• Demonstrating of superior expertise to deal
with problems in unconventional ways may
be a key factor in this process.

4. Charismatic leader behaviors
(House & Shamir, 1993)
 strong need for power;
 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.

5. 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.

6. Mechanisms of charismatic
leadership (Conger)
 Followers seek their leader’s approval
and it is very important to them to
please and imitate the leader. Self-concept
is a key issue here.
 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. Desirable characteristics
for a vision
 Simple and idealistic; not a complex plan with quantitative objectives;
 Should emphasize distant ideological objectives rather than immediate tangible
benefits;
 Picture of desirable future;
 Ideals of stakeholders and hope and values of employees should be implied in
the vision;
 Must include meaningful expression of organization mission and values;
slogans;
 Challenging but realistic; attainable future grounded in the present reality;
 Should not be fantasy;
 Can be communicated easily.

12. Procedures for developing a
vision
 It is essential to have good understanding of the
organization, its culture, underlying needs, hopes and
values of employees and stakeholders.
 Involve key stakeholders and encourage open
conversation to reach shared vision;
 Identify strategic objectives with wide appeal;
 Identify relevant elements in the old ideology;
 Link the vision to core competencies;
 Continually assess and refine the vision.