CHAPTER 3
Charismatic and Transformational Leadership
The purpose of this chapter is to help the reader understand the nature of charismatic and transformational
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.
A. Charisma: A Relationship Between the Leader and Group Members, and Other Stakeholders
A key dimension of charismatic leadership is that, like all leadership, it involves a relationship
B. The Effects of Charisma
Much of the impact of charisma is based on the positive affect (emotion) the charismatic
stamp on the organization. .
II. THREE TYPES OF CHARISMATIC LEADERS
Charismatic leaders have been categorized into different types, with the three most relevant in
organizations, as follows: (1) socialized charismatic—uses power to benefit others; (2)
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
IV. THE NARCSSISM COMPONENT OF CHARISMATIC LEADERSHIP
Narcissism has a strong link to charisma. Narcissism is a relatively stable personality trait
characterized by a sense of personal superiority, a desire for power, and a sense of self-importance.
IV. THE VISION COMPONENT OF CHARISMATIC LEADERSHIP
Vision is the ability to imagine different and better conditions and the ways to achieve them.
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. The charismatic
VI. 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.
Chapter 3: Charismatic and Transformational Leadership
B. Leadership by Storytelling
Leadership by storytelling is the technique of inspiring and instructing group members by
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 relationships and
VII. 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
VIII. 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.
C. 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
D. Attributes of Transformational Leaders
Chapter 3: Charismatic and Transformational Leadership
E. 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
transformational type showed the highest overall relationship with six criteria including
group or organization performance. Transactional and transformational leadership were
shown to be related.
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.
constituents as a result of their success.
B. The Dark Side of Charismatic Leadership
Some people are concerned that charisma can be exercised for evil purposes. When
charismatic leaders are highly narcissistic, organizational performance may suffer. A moderate
amount of narcissism may be helpful for a leader. One concern about charismatic leaders is
Chapter 3: Charismatic and Transformational Leadership
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
COMMENTS ON EXPERIENTIAL EXERCISES
Leadership Self–Assessment Quiz 3–1: A Checklist of Behaviors and
Attitudes Reflecting Charisma
The statements in the Charisma Checklist support much of the information in the text about charisma, and
Leadership Self–Assessment Quiz 3–2: The Narcissism Attitudes
and Behavior Checklist
The fifteen attitudes and behaviors mentioned in this checklist provide insight into
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
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
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
Leadership Skill–Building Exercise 3–4: Inspirational Messages on a
Social Networking Site
Chapter 3: Charismatic and Transformational Leadership
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,
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
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?
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
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
Chapter 3: Charismatic and Transformational Leadership
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
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
8. How might a major retailer such as Sears or J. C. Penney benefit from having a transformational
leader as CEO?
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 manager
would be a positive transformational act.
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: Baxter, the Self–Adoring Charismatic
This case illustrates how an extreme charismatic is likely to go about his leadership responsibilities.
1. What hints do you get from this case that Baxter is charismatic?
Chapter 3: Charismatic and Transformational Leadership
Several hints of charisma are provided in the case, including the follow: positive thinking,
2. What hints do you get from this case that Baxter is narcissistic?
The charismatic traits and behavior just listed are often part of narcissism. More specific hints
3. What suggestions can you offer Baxter so he can make more effective use of his charisma?
Baxter needs to focus more of his charisma on other people, such as smiles and handshakes,
Associated Role Play
Here is an opportunity to practice dealing with a difference of opinion about a non-controversial
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?
must improve and costs must decrease.
2. What might Ashley be doing right as a transformational leader?
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
Associated Role Play
This role play helps students act out what transformational leadership means in operational terms. At the