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CHAPTER 9

Charismatic and Transformational Leadership

Chapter Outline

I. Charismatic Leadership

A. Weber’s Conceptualization of Charisma

B. Locus of Charismatic Leadership

C. The Effects of Charismatic Leaders on Followers

D. How One Acquires Charismatic Qualities

E. Charisma: A Double-Edged Sword

II. Transformational Leadership

A. The Effects of Transformational Leadership

B. Transformational and Transactional Leadership

C. The Transformation Process

III. Charismatic – Transformational Leadership

A. Qualities of Effective Charismatic and Transformational Leadership

B. Transformational and Charismatic Leader Behaviors

C. Charismatic and Transformational Leadership: What’s the Difference?

IV. Stewardship and Servant Leadership

A. Stewardship and Attributes of the Effective Steward Leader

B. Servant Leadership and Attributes of the Effective Servant Leader

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New To This Edition

 This chapter has been broadly updated with a significant amount of references new to this edition.

 The opening case still features Oprah Winfrey, but it has been completely re-written from a different

vantage point and updated with new references.

 The introduction to the chapter has been shortened.

 All Concept Application exercises have been updated and in many cases, new questions added.

 The sub-section on the Effects of Transformational Leadership has been re-written and the content

shortened.

 The sub-section on the Transformational versus Transactional Leadership has been re-written and the

content shortened.

 The section on Stewardship and Servant Leadership has been re-structured from three sub-headings to just

two sub-headings. The new sub-headings are: Stewardship and Attributes of the Effective Steward Leader

and Servant Leadership and Attributes of the Effective Servant Leader.

 The end of chapter case still features Ursular Burns and Xerox Corporation but with new information and

updates.

Lecture Outline

PowerPoint: You may use the PowerPoint supplement to enhance your lectures. Even if your classroom is not

equipped to use PowerPoint, you can review the material on your personal computer to get teaching ideas and to

copy the slides. Copies of the slides can be made into overheads. (Chapter title on Slide 9-1 and LOs on Slide 9-2)

I. CHARISMATIC LEADERSHIP (Slide 9-3)

Charismatic and transformational theories return our focus to organizational leadership.

These theories shine the light on exemplary leaders whose influence impacts entire social, cultural, economic, and

political systems.

Charismatic and transformational leaders are able to influence followers to rally toward a shared goal.

A. Weber’s Conceptualization of Charisma (Slide 9-4)

LO 9-1. Briefly explain Max Weber’s conceptualization of charisma.

Weber used the term charisma to explain a form of influence based on follower perceptions that the

leader is endowed with the gift of divine inspiration, not a traditional or legal mandate of authority. This

gift of divine inspiration is the force behind a charismatic leader’s ability to focus society’s attention on

both the crisis it faces and the leader’s vision for a new and better future. According to Weber,

charismatic individuals emerge as leaders during times of great social crisis and inspire people to do more

than they would under normal circumstances.

Of the early theories of charisma, the sociologist Max Weber made the most important contribution. Weber

used the term “charisma” to explain a form of influence based on follower’s perceptions that a leader is

endowed with the gift of divine inspiration or supernatural qualities.

Weber believed charismatic leaders had a vision or course of action that appealed to followers and spurred them

to action.

Vision is the ability to imagine different and better conditions and the ways to achieve them.

Charisma manifests itself in the interplay between the leader (traits and behaviors) and the followers (values,

needs, perceptions, and beliefs)

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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WORK APPLICATION 9-1

Think of a leader from your work experience or education whom you believe has

charisma. Explain why.

B. Locus of Charismatic Leadership (Slide 9-5)

LO 9-2. Explain what is meant by the phrase “locus of charismatic leadership.”

The question scholars have entertained since Weber’s conception of charisma is whether charisma is a

function of the prevailing social climate, the leader’s extraordinary qualities, or the confluence of the two.

Supporters of the view that charismatic leadership could not take place unless the society were in a

tumultuous, unstable situation argue that without a crisis and followers’ need for change, a leader’s

charismatic qualities would be hard to notice or appreciate. Therefore, for proponents of this viewpoint,

the locus of charismatic leadership is external from the leader.

Others argue that charismatic leadership is primarily the result of leader attributes (internal), not the

situation. They maintain that leader characteristics such as vision, exceptional communication skills,

trustworthiness, self-confidence, and focus on empowering others are what qualify someone as a

charismatic leader regardless of the external situation.

Finally, there is an emerging view that charismatic leadership is a convergence of follower perceptions

and reactions influenced by leader characteristics and the prevailing social situation.

The locus of charismatic leadership focuses on one question: what is the basis of charisma? This question

centers on the debate over whether charisma is primarily the result of:

a. The situation or social climate facing the leader (external locus of charismatic leadership)

b. The leader’s extraordinary qualities, or (internal locus of charismatic leadership)

c. A combination of the situation and the leader’s qualities (an interaction of the two)

C. The Effects of Charismatic Leaders on Followers

LO 9-3. Discuss the effects of charismatic leadership on followers.

Charismatic leaders tend to have a strong emotional bond with their followers. The effects of such a bond

are that followers are inspired to give unconditional loyalty, devotion, obedience, and commitment to the

leader and to the cause the leader represents.

A sense of fulfillment and satisfaction is derived from the pursuit of worthwhile activities and goals and

having positive beliefs and values about life as presented by the charismatic leader. Implicitly, the

charismatic leader is seen as an object of identification by which a follower emulates his or her behavior;

thus, followers model their behavior, values, and cognitions after the leader.

For example, followers are more likely to set or accept higher goals and have greater confidence in their

ability to contribute to the achievement of such goals. By observing the leader display self-confidence,

followers develop self-confidence as well.

Use Exhibit 9.1: The Effects of Charismatic Leaders on Followers (Slide 9-6)

Followers of charismatic leaders often develop a strong sense of trust and bonding difficult to find in other

leader-follower relationships.

Such a strong emotional bond is possible by virtue of his or her transcendent vision – one that differs from the

status quo.

There is the effect of unconditional acceptance of the charismatic leader not often seen with other leader types.

Followers develop a strong sense of self-confidence and self-efficacy as they work to realize the leader’s vision.

This cycle of influence ultimately increases followers’ organizational citizenship behavior and empowerment.

Followers of charismatic leaders tend to assume greater risk than they would with other types of leaders.

There is an unquestioning loyalty and obedience to the leader.

Another effect of charismatic leadership on followers is to motivate them to set or aim for higher goals and

ideals and greater confidence in their ability to achieve such goals.

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When the character of the leader is based on core values such as integrity, hard work, responsibility, respect,

and accountability, it effects the followers who already desire to align their beliefs, self-concept, cognitions,

and values with those of their leader.

WORK APPLICATION 9-2

Refer back to Work Application 9-1 on the leader you thought has charisma.

Briefly discuss examples of the effect his or her charisma had on your work

ethic or job performance or job satisfaction.

CONCEPT APPLICATION 9-1

The Effects of Charismatic Leaders on Followers

Answers to the Concept Application questions are at the end of lecture outline.

D. How One Acquires Charismatic Qualities (Slide 9-7 and Slide 9-8 holds Discussion Questions)

LO 9-4. Discuss how one can acquire charismatic qualities.

There are suggested strategies for acquiring or enhancing charismatic qualities. Through training and

Suggested strategies for acquiring or enhancing one’s charismatic qualities include:

 Through training and practice, you can improve your communication and interpersonal skills.

WORK APPLICATION 9-3

Identify a leader you have worked with or currently work with whom you think

has charismatic potential. Describe one trait or characteristic of this individual

that, if developed, can transform him or her into an effective charismatic leader.

E. Charisma: A Double-Edged Sword (Slide 9-9 and Slide 9-10 holds Discussion Questions)

LO 9-5. Distinguish between socialized and personalized charismatic leader types.

The charismatic leader seeks to achieve the unconditional commitment and devotion of followers to his

or her vision. However, negative charismatic leaders emphasize devotion to themselves more than to

ideals, and positive charismatic leaders seek the opposite.

Negative charismatics are said to have a personalized power orientation and positive charismatics have a

socialized power orientation. In the former, ideological appeals are only a ploy to gain power and

manipulate and control followers. In the latter, ideological appeals are organization-driven and seek to

empower followers to achieve the vision and mission of the organization. Personalized (negative)

charismatic leaders seek self-glorification, and socialized (positive) charismatic leaders seek

organizational transformation through empowerment of followers.

Charisma can cut both ways and not always used in the service of a greater good.

One method for differentiating between positive and negative charisma is in terms of the values and motives of

the leader.

The self-glorification motive is about the self-maintenance and self-enhancement of the leader.

The self-transcendence motive is about the collective interest or good of the broader society.

The socialized charismatic leader (SCL) is one who possesses an egalitarian, self-transcendent, and

empowering personality and uses charisma for the benefit of others.

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The personalized charismatic leader (PCL) is one who possesses a dominant, self-centered, self-

aggrandizing and narcissistic personality and uses charisma for self-glorification.

SCLs pursue organization-driven goals and promote empowerment, personal growth and equal participation for

followers

PCLs pursue leader-driven goals and promote obedience, dependency, and submission with a tendency to be

authoritarian and exploitative.

WORK APPLICATION 9-4

Describe a leader in your work experience who manifested positive or negative

charismatic qualities. How did this affect your relationship with the leader?

YOU MAKE THE ETHICAL CALL 9-1

Obesity and Charismatic Ads

Answers will vary based on opinion.

CONCEPT APPLICATION 9-2

Socialized Versus Personalized Charismatic Leaders

Answers to the Concept Application questions are at the end of lecture outline.

II. TRANSFORMATIONAL LEADERSHIP (Slide 9-11)

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.

A. The Effects of Transformational Leadership (Slide 9-12)

Transformational leadership describes a process of bold vision creation and articulation that changes and

transforms organizations and individuals.

At the organizational level, transformational leadership has positive effects on organizational performance,

culture, and learning.

At the individual level, transformational leadership has been found to positively affect follower organizational

commitment.

Organizational commitment has direct implications on employee turnover rates, performance, and citizenship

behavior.

Effective transformational leaders have the effect of influencing followers to shift from a focus on self-interest

to a focus on collective interests.

They use their charisma and power to inspire and motivate followers to trust and work hard to achieve the

organization’s objectives.

They generate excitement and energy by presenting a compelling and inspiring vision of the future.

Followers report higher levels of job satisfaction and empowerment and lower levels of turnover and stress.

Transformational leadership is associated with increased employee cognitive abilities, which in turn improve

creativity and decision quality.

B. Transformational and Transactional Leadership (Slide 9-13)

Self-Assessment 9-1

Are You More of a Transformational Leader?

If you want students to complete the Self-Assessment exercises throughout the

book, you may want to tell students and spend a little time talking about them.

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In today’s globally competitive environment, employee creativity and innovative behavior is imperative for

organizations’ survival.

Transformational leadership is about changing the status quo.

The transactional leadership process involves an exchange of valued benefits, based on defined expectations

and motivations of both leaders and followers. Akin to the leader-member exchange (LMX) process.

Transformational leaders are described as vision-oriented, whereas transactional leaders are described as task

and reward-oriented.

Transformational leaders value change, especially change that improves on the status quo. Transactional

leaders value stability.

Transactional leaders manage daily ongoing transactions that further the leader’s vision.

Transactional leadership tends to be transitory in that once a transaction is completed the relationship between

the parties may end or be redefined.

Transformational leadership is more enduring because the emphasis is on the long-term future of the

organization.

Both are valid approaches for achieving organizational objectives, with transformational leadership showing

the highest overall results and transactional or contingent reward leadership a close second.

WORK APPLICATION 9-5

Identify a leader you have worked for or are working with now. In your opinion, is

this leader more of a transformational or transactional leader? Explain why and

include examples.

CONCEPT APPLICATION 9-3

Transformational or Transactional Leadership

Answers to the Concept Application questions are at the end of lecture outline.

C. The Transformation Process (Slide 9-14)

LO 9-6. Explain the four stages of the transformation process.

A transformational leader who is brought into an organization facing a serious crisis or approaching total

collapse has to institute a turnaround strategy. Turnaround strategies are often radical transformations

that put the organization on a different path for future growth and prosperity. The magnitude of the task

and the high risk of failure require that it be approached in a systematic fashion. Thus, the transformation

process is a four-stage approach that starts with the recognition of the need for change. This provides the

opportunity for the leader to formulate and introduce a new vision for the organization that promises a

better and brighter future than the present. Once there is acceptance of the leader’s vision, the third stage

involves implementing the new vision and effectively managing the transition. Here, instilling in

managers a sense of urgency for change, raising followers’ self-confidence and optimism, and

recognizing and dealing with resistance will greatly increase the chances of a successful transformation.

The last stage is institutionalizing the change so that it is not a short-lived transformation. Effective

strategies for institutionalizing change are outlined in the text.

Transformational leaders are usually brought into an organization experiencing a decline or in need of a major

change in direction.

A successful transformation process involves broad participation among organizational stakeholders with the

ultimate goal of embracing a shared vision, negotiating and communication priorities, minimizing risk, and

creating action plans and commitments for change.

Presented is a four-part process that starts with the transformational 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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See Exhibit 9.2: The Transformation Process (Slide 9-15)

YOU MAKE THE ETHICAL CALL 9.2

Breach of Privacy

Answers will vary based on opinion.

III. CHARISMATIC-TRANSFORMATIONAL LEADERSHIP

A. Qualities of Effective Charismatic and Transformational Leadership

LO 9-7. List the qualities of effective charismatic and transformational leaders.

The qualities that effective charismatic and transformational leader share are vision, superb

communication skills, self-confidence and moral conviction, ability to inspire trust, high risk orientation,

high energy and action orientation, relational power base, minimum internal conflict, ability to empower

others, self-promoting personality, selflessness and having an activist mind-set.

See Exhibit 9.3: Qualities of Effective Charismatic and Transformational Leaders (Slide 9-16)

Vision – both leadership types articulate a transcendent vision that becomes the rallying cry of a movement or a

cause

Superb Communication Skills – this is one quality that sets charismatic leader apart as they are not only

effective communicators, they are also excellent orators when delivering their message

Self-Confidence and Moral Conviction – both show an unshakable self-confidence and optimism but

charismatic leaders often deliver messages of change

Ability to Inspire Trust – charismatic and transformational leaders build support and trust by being honest with

followers

High-Risk Orientation – both leaders are willing to take greater risks than the average leader

High Energy and Action Orientation – they both believe time is not on their side and are always on the move

Relational Power Base – charismatic leadership is intensely relational while transformational leader’s power

source is typically positional

Achievement Orientation – charismatic and transformational leaders have a strong belief in the “rightness” of

their cause

Ability to Empower Followers – both leaders use intrinsic rewards such as pride to empower their followers to

accomplish great things

Self-Promoting Personality – both types of leaders frequently promote their vision

WORK APPLICATION 9-6

As part of your general education requirements, you have taken courses in the

natural sciences, history, and literature. Identify a leader from any of these

disciplines who you believe was either a transformational or charismatic leader.

How many of the qualities of charismatic and transformational leaders found in

Exhibit 9.3, can you assign to your chosen leader?

CONCEPT APPLICATION 9-4

Qualities of Effective Charismatic and Transformational Leaders

Answers to the Concept Application questions are at the end of lecture outline.

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B. Transformational and Charismatic Leader Behaviors

LO 9-8. Describe the four behavior dimensions associated with transformational and charismatic

leader.

The four behavior dimensions, also known as the “four I’s” are idealized influence, inspirational

motivation, individual consideration, and intellectual stimulation.

Idealized Influence—behavior that conveys an ideal future that is much better than the present. The

leader’s behavior is aimed at inspiring followers to share in his or her vision.

Inspirational Motivation—passionate communications of better days ahead that motivates followers

to buy into the leader’s vision.

Individual Consideration—behavior that employs an individualized developmental model that

responds to follower needs and concerns.

Intellectual Stimulation—behavior that challenges followers to think “outside of the box” and re-

examine old ways and methods. It implores followers to be creative and innovate.

Use Exhibit 9.4: Transformational and Charismatic Leader Behaviors (Slide 9-17)

Both charismatic and transformational leaders are known to use the four following behavior dimensions,

referred to as the “four I’s”

 Idealized influence

o both leaders engage in behavior that infuses followers with a strong sense of idealism

 Inspirational motivation

o both leaders have the ability to passionately communicate a future idealistic vision that is a much

better alternative to the status quo

 Individual consideration

o both leaders serve as mentors to their followers

 Intellectual stimulation

o by stimulating novel thinking, charismatic and transformational leaders inspire followers to

question their own assumptions and learn to solve problems creatively

WORK APPLICATION 9-7

Think of a leader in our society today who is generally perceived to be a

charismatic or transformational leader. In your opinion, which of the behavioral

dimensions of charisma and transformational leadership described in the text can

be attributed to him or her?

C. Charismatic and Transformational Leadership: What’s the Difference? (Slide 9-18)

LO 9-9. Distinguish between charismatic and transformational leadership.

The two leadership types are similar in that charisma and vision are central concepts in both of them.

Also, both leadership types share the ability to influence followers to believe in their vision. They are

different in many ways:

 Charismatic leaders are by nature transformational (regardless of the kind of transformation

 Charismatic leaders tend to have a more activist mind-set than transformational leaders. They

use political and social causes as opportunities to influence change and provide a better life for

 Charismatic leaders tend to have a sense of their purpose or personal meaning much earlier in

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 The level of resistance and conflict towards charismatic leaders are more extreme than those

Though charismatic and transformational leadership theories are about change, not all transformational leaders

are charismatic.

A second area of difference is how one achieves the label of charisma or transformer.

A third are of difference is on the mind-set of charismatic and transformational leaders.

A fourth are of difference is on the career path that each leadership type is likely to follow

A fifth area of difference is how each perceives their personal meaning or purpose in life.

The sixth are of difference between the charismatic and transformational leader is the degree of risk each faces

from opponents of their vision.

WORK APPLICATION 9-8

Identify a leader you have worked with or are working with now. In your

opinion, is this leader more of a transformational or transactional leader? Explain

why and include examples.

Self-Assessment 9-2

Are You More Charismatic, Transformational, or Both?

If you want students to complete the Self-Assessment exercises throughout the

book, you may want to tell students and spend a little time talking about them.

IV. STEWARDSHIP AND SERVANT LEADERSHIP (Slide 9-19)

LO 9-10. Explain the basis of stewardship and servant leadership.

Both leadership types are based on placing others ahead of oneself. Servant leadership and stewardship

have their roots in ethics, virtues, and morality. Stewardship and servant leadership describe leaders

who lead from positions of moral influence, not power, and who are very follower-centric. Both

leadership styles call for empathy, kindness, honesty, humility, equality, moral integrity, empowerment,

and respect for others, especially the less powerful or influential.

Stewardship and servant leadership represent a shift in the leadership paradigm from a focus on leading to a focus on

serving.