Management Chapter 03 Homework Students Who Scan Group Charisma Symptoms Might

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CHAPTER 3

Charismatic and Transformational Leadership

The purpose of this chapter is to help the reader understand the nature of charismatic and trans–

formational leadership. Although the two forms of leadership overlap, they are treated separately here

because the study of charismatic leadership focuses so heavily on personal traits. Studying charismatic

and transformational leadership represents an important current thrust in understanding the leader’s

role.

CHAPTER OUTLINE AND LECTURE NOTES

The study of charismatic and transformational leadership, an extension of the trait theory, has become

an important way of understanding leadership. Charisma facilitates leaders carrying out their roles.

I. THE MEANINGS OF CHARISMA

Charisma is a special quality of leaders whose purposes, powers, and extraordinary determination

differentiate them from others. The various definitions of charisma have a unifying theme.

Charisma is also a positive and compelling quality in a person that creates a desire in many others

to be led by him or her.

The attributes of charisma are important because they lead to behavioral outcomes such as

commitment to the leader, self-sacrifice, and high performance. A study with law enforcement

workers and business students showed that network members influence our attributions of

charisma.

A. Charisma: A Relationship Between the Leader and Group Members

charismatic were happier than those under the command of a non-charismatic officer. It was

also found that happier leaders spread their positive mood to group members.

Another way of understanding the effects of charisma is to understand that top-level leaders

sometimes lose their power and position because they are perceived as not being charismatic

enough to get constituents to accomplish important goals. Using charisma and a positive

mood to help workers become happy is a valuable, and might also increase productivity.

II. THREE TYPES OF CHARISMATIC LEADERS

22 Chapter 3: Charismatic and Transformational Leadership

III. CHARACTERISTICS OF CHARISMATIC LEADERS

Charismatic leaders have unique characteristics, and many of these characteristics also apply to a

transformational leader—one who brings about positive, major changes in an organization. In

addition to the characteristics described in Chapter 2, charismatic leaders have other attributes: (1)

they are visionary; (2) they have masterful communication skills; (3) they have the ability to

inspire trust; (4) they are able to make group members feel capable; (5) they have energy and an

IV. THE VISION COMPONENT OF CHARISMATIC LEADERSHIP

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

Recent neuroscience research suggests that visionaries have higher levels of brain activity in the

areas of the brain associated with visual processing and the organization of information.

Creating a vision is one of the major tasks of top management. Effective leaders have clear

visions, and vision is an important part of strategy implementation and bringing about change.

Charismatic leaders inspire others with their vision, because a vision uplifts and attracts others.

V. THE COMMUNICATION STYLE OF CHARISMATIC LEADERS

Charismatic and transformational leaders communicate their visions, goals, and directives in a

colorful, imaginative, and expressive manner. They also communicate openly and encourage

feedback.

A. Leadership by Inspiration

An important factor in inspiring others is the ability to craft and articulate a highly emotional

message. Two such rhetorical techniques follow:

1. Using Metaphors and Analogies. A well-chosen analogy or metaphor appeals to the

intellect, imagination, and values.

2. Gearing Language to Different Audiences. Metaphors and analogies are inspiring, but

to be effective, leaders must also choose the level of language to suit the audience. An

executive’s ability to speak on a colloquial level helps create appeal.

B. Leadership by Storytelling

Leadership by storytelling is the technique of inspiring and instructing group members by

telling fascinating stories. The technique is a major contributor to building a strong company

Chapter 3: Charismatic and Transformational Leadership23

C. Extensive Use of Social Networking

To help facilitate their interpersonal communication, charismatic leaders make extensive

use of social networks—both through face-to-face interactions and social media websites.

1. Face-to-Face Networks. A charismatic leader is likely to invest time in such

activities as having lunch with group members and visiting them at their office or

cubicles. In recognition of the importance of internal networks for building

VI. THE DEVELOPMENT OF CHARISMA

By developing some of the traits, characteristics, and behaviors of charismatic people, a person

can increase his or her charisma. Suggestions for developing charisma include the following: (1)

Create visions for others and connect the visions to their dreams; (2) be enthusiastic, optimistic,

VII. TRANSFORMATIONAL LEADERSHIP

The focus of transformational leadership is on what the leader accomplishes rather than on the

leader’s personal characteristics and relationships with group members. The transformational

leader helps bring about major, positive changes. In contrast, the transactional leader focuses on

more routine transactions, with an emphasis on rewarding group members for meeting standards.

A. How Transformations Take Place

To accomplish his or her lofty purposes, the transformational leader attempts to overhaul the

organizational culture or subculture. Seven ways in which the leader brings about such

transformations are: (1) raising people’s awareness; (2) helping people look beyond self–

interest; (3) helping people search for self-fulfillment; (4) helping people understand the

B. Attributes of Transformational Leaders

Nine qualities are particularly helpful in bringing about transformations: (1) charisma

including agreeableness and extroversion; (2) high emotional intelligence; (3) vision

24 Chapter 3: Charismatic and Transformational Leadership

C. The Impact of Transformational and Charismatic Leadership on Performance and Behavior

The general picture of the impact of the transformational leadership is that at its best it can

arouse followers to a higher level of thinking. Transformational leaders appeal to the ideals

and values of their constituents. Several empirical studies have been conducted on the

effects of charismatic and transformational leadership in work settings.

1. Overall Validity of Transformational Leadership. A meta-analysis revealed that among

transformational leadership, transactional leader, and laissez-faire leadership, the

2. Team Level Performance. A study investigated the relationship between charismatic

leadership behavior and team performance in work settings in the United States and

3. Organizational Level Performance. Data from a Brazilian energy company indicated

that leadership effectiveness as measured by organizational outcomes was a direct

function of the leader’s transformational behavior. The study also found that

VIII. CONCERNS ABOUT CHARISMATIC LEADERSHIP

The topic of charisma and transformational leadership has been challenged from two major

standpoints: the validity of the concept and the misdeeds of charismatic leaders.

A. Challenges to the Validity of Charismatic Leadership

Most leadership researchers doubt that charisma can be accurately defined and measured.

Also, charismatic leaders are not liked by everyone. According to the concept of leadership

polarity, leaders are often either revered or vastly unpopular. People rarely feel neutral

B. The Dark Side of Charismatic Leadership

Some people are concerned that charisma can be exercised for evil purposes. Some

charismatic leaders are unethical and lead their organizations toward illegal and immoral

ends. People are willing to follow the charismatic leader down a quasi-legal path because of

Chapter 3: Charismatic and Transformational Leadership25

IX. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT

To create charismatic appeal, make everyone you meet feel that he or she is quite important, use a

firm handshake and good eye contact, and give sincere compliments. Thank people frequently,

smile frequently, maintain a childlike fascination with your world, and be more animated than

others. And finally, think big such as in spinning beautiful, sweeping visions.

COMMENTS ON EXPERIENTIAL EXERCISES

Leadership Self–Assessment Quiz 3–1: The Charisma Checklist

The statements in the Charisma Checklist support much of the information in the text about charisma,

Leadership Skill–Building Exercise 3–1: Formulating a Vision

Our experience is that students take readily to vision formulation. As one student said after completing

this exercise, “I do visions.” The visions that students construct in thirty minutes sound remarkably like

Leadership Skill–Building Exercise 3–2: Charismatic Leadership by

Storytelling

This exercise requires both analytical and imaginative thinking. An example that fits here is the

Domino Pizza emphasis on customer service. Supposedly, pizza dough was flown by airplane to a

Domino store to cover a shortage and maintain good service. The description of “moments of truth” in

The Leadership Challenge by Kouzes and Posner provides several relevant anecdotes.

Leadership Self–Assessment Quiz 3–2: The Dual–Level

Transformational Leadership (TFL) Scale

This research instrument is helpful in reviewing a sampling of specific attitudes and behaviors

exhibited by transformational leaders. A fruitful line of class discussion is why several of the items

are associated with transformational leadership. For example what are the links to transformational

leadership among these statements? (Individual level) 6. Helps me develop my strengths. 15.

26 Chapter 3: Charismatic and Transformational Leadership

Leadership Skill–Building Exercise 3–3: My Leadership Portfolio

Keeping track of a few charismatic behaviors can be helpful in developing charisma. Hints as to

what type of behavior is likely to be perceived as charismatic can be obtain from the chapter

Leadership Skill–Building Exercise 3-4: Inspirational Messages on

a Social Networking Site

Students might be able to find quite a few inspiring messages on social networking sites,

but it will take some digging. Leadership consultants and personal coaches often post what

COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES

1. Identify a business, government, education, or sports leader whom you perceive to be charismatic.

Explain the basis for your judgment.

The particular leader singled out as charismatic is not as important as how the choice is justified,

such as pointing to the leader’s colorful communication style. Howard Schultz of Starbucks and

2. Identify a business, government, education, or sports leader whom you perceive to have very little

charisma. What other factors appear to compensate for his or her limited charisma?

Judgments about a leader having limited charisma are often made on the basis of that person’s

bland personality, such as smiling infrequently or speaking softly. Some leaders who lack a

3. How might being charismatic contribute to the effectiveness of the manager of entry-level

workers, such as those employed as cashiers of fast-good preparers?

Charisma can contribute enormously to the success of a manager of entry-level workers in several

ways. The charismatic first-level manager would often raise the satisfaction and productivity of

4. Describe how a person might write e-mail messages or social media posts to give an impression of

being charismatic.

To appear more charismatic, the person might follow the suggestions for persuasive

communication presented in Chapter 12. Any constructive way of appearing dramatic and unique,

such as colorful phrases, will help an e-mail message of social media post appear to have been

5. Explain why the presence of a charismatic leader tends to enhance the job satisfaction of group

members.

A contributor to job satisfaction is the interpersonal relationship with the supervisor. When the

relationship is positive, job satisfaction is likely to increase. A charismatic leader typically has

6. To what extent do you think dressing expensively and fashionably really contributes to the

charisma of a leader within an organization?

Opinions will vary here, but stylish dress usually does contribute to a leader being perceived as

charismatic. A current example is Sheryl Sandberg, a major executive at Facebook. Even though

7. If a transformational leader is supposed to be so smart and visionary, why would he or she

emphasize empowerment in his or her leadership approach?

Because a transformational leader is smart and visionary he or she is likely to recognize the

contribution of empowerment. The transformational leader needs the contributions of many

8. How might a major retailer such as Sears or J. C. Penney benefit from having a transformational

leader as CEO?

In mid-2014 several of the traditional retailers, such as Sears and J.C. Penney were struggling for

relevance and survival. It would take a transformational leader to help these retailers capture some

9. Do you think a true transformational leader should ever lay off thousands of workers to help make

a company profitable?

If we consider turnaround managers to be transformational leaders, then a true transformational

leader can lay off thousands of workers to help make a company profitable. A turnaround

10. What opportunities might a first-level supervisor or team leader have to be a transformational

leader?

A first-level supervisor or team leader will sometimes have the opportunity to improve greatly the

PLAUSIBLE RESPONSES TO CASE QUESTIONS

Leadership Case Problem A: Tim Puts His Charisma Online

This case illustrates how a leader might deliberately use a social media website to express

charisma.

1. How effective do you think Tim’s posts are in terms of expressing his charisma?

2. How effective do you think Tim’s posts are for purposes of inspiring the sales representatives

to sell more auto parts and supplies?

3. What else do you recommend that Tim do to express his charisma via the social networking

websites?

Tim might post the occasional photo to add enhance his perception of being warm and

humanistic. For example, if he took a few good–natured photos at a company outing, these

Chapter 3: Charismatic and Transformational Leadership29

Associated Role Play

Here is an opportunity to practice dealing with a difference of opinion about a non-controversial

topic. Observers can look to see if the group members will show appreciation for the inspirational

Leadership Case Problem B: Turnaround Ashley

This case illustrates what it can mean to be a transformational leader in a setting more modest than

being a CEO of a large business corporation. Also illustrated are some of the demands a turnaround

manager might have to make on members of the top-management ream.

1. How successful do you think Ashley will be as a transformational leader at Ultra Cover?

Her present approach to turning around Ultra Cover may not be motivational enough to bring

2. What might Ashley be doing right as a transformational leader?

On the positive side, Ashley is establishing stretch goals, and emphasizing the importance of

3. What suggestions might you offer Ashley to be more successful as a transformational leader?

So far too much of Ashley’s approach to turnaround leadership has been to impose stretch

goals on key people. She should dig deeper into turnaround leadership concepts such as