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Charismatic & Transformational Leadership
Chapter 9
Charismatic and Transformational leadership (TL for short) originated in an interest in
learning more about how leaders get followers to make self-sacrifices and put the
needs of their organization above their own material self-interests. This chapter
describes the major theories of charismatic and TL, provides an evaluation of these
theories, and then offers guidelines for TL.
TWO EARLY THEORIES
Charisma. Charisma is a Greek word that means ""divinely inspired gift". A
sociologist, Max Weber, used the term to describe a form of influence based not on
tradition or formal authority, but rather on follower perceptions that the leader has
exceptional qualities. According to Weber, perceptions of a leader as charismatic
usually occur when there is a social crisis. A leader who is seen during such a crisis
as providing a "radical" vision, with a convincing and achievable solution to the crisis,
is seen as charismatic. A key aspect of this leadership influence is getting followers
to believe in, and passionately embrace, the vision. Newer versions of this theory
have developed. They are called "neocharismatic" theories.
Transforming Leadership. This theory originated from a political scientist,
James McGregor Burns. As originally conceived, TL engages the moral values of
followers, raises their consciousness about ethical issues, and mobilizes their energy
and resources to change institutions. Burns contrasted this TL with transacting
leadership, which motivates followers, not by appealing to a "higher" morale cause,
but rather, by appealing to their self-interests. For example, politicians promising to
lower corporate taxes if elected (seeking campaign donations and votes from the
corporate elites). Transactional leadership is of the form, "if you do this, then I will
give you this". Followers follow to obtain something that benefits them directly and
personally. (Notice, there is no self-sacrifice here for any higher, "moral cause").
Incidentally, transactional leadership may involve values, such that the follower may
be treated by the leader with honesty and fairness, for doing good quality work (like
in LMX theory).
ATTRIBUTION THEORY OF CHARISMATIC LEADERSHIP
Attribution theory refers to theory that tries to explain how and why people
come to perceive their leader as charismatic. What determines whether I see you as
a charismatic leader? The attribution theory of leadership suggests that whether we
see another as a charismatic leader is determined by the leader's behavior, skill, and
aspects of the situation, and the attributions we make regarding this behavior (e.g.
how we interpret this behavior).
Leader Traits and Behaviors. Whether we perceive another as charismatic
depends on their behaviors, but not all charismatic leaders are seen to have all the
same behaviors. The importance of any one behavior in determining perceptions of
charisma will depend to some extent on the leadership situation.
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First, leaders are most likely to be seen as charismatic if their vision is quite
different from the current way things are being done, but is not too different
(e.g. radical). Non-charismatic leaders, however, typically support the "status
quo" (the way things are currently done), or advocate only small, incremental
changes.
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Second, leaders are more likely to be seen as charismatic if they act in
unconventional (new) ways to achieve their mission. Innovative strategies are
associated with charismatic leadership.
Thirdly, leaders are more likely to be seen as charismatic if they make selfsacrifices and take personal risk to achieve their vision. A leader who risks
substantial personal loss in status, money, leadership position or
organizational membership in efforts to achieve his/her mission is more likely
to be viewed as charismatic.
Fourthly, leaders who appear confident about their vision are more likely to be
seen as charismatic, then are leaders who project a lack of confidence and
self-doubt. Followers who believe the leader knows how to achieve the
shared objective will work harder and increase the probability of success.
Fifthly, leaders are more likely to be seen as charismatic if they use
"visioning" and persuasive appeals to motivate others, than if they use
authority or rely too much on consensus-seeking participative decision
processes.
Hong Kong Chief Executive Tung Chee-Hwa has been criticized greatly in the
media for lacking "charisma". Can you explain this media perception of Tung, based
on the categories above?
When coming up with new vision, and new ways to achieving that vision, leaders
take risks. To minimize risks, leaders must make realistic assessments of
environmental constraints and opportunities before implementing their strategies.
Timing is very important, as the same strategy may succeed at one time, but fail if
implemented at another time. Leaders need to be sensitive to the needs and values
of followers as well as to the environment, in order to come up with a vision that is
innovative, relevant, timely and appealing.
Influence Processes. Why do followers of charismatic leaders become so
strongly committed to the task and the mission? We have come to learn that the
primary reason is that followers personally identify with the leader. That is to say,
followers desire to please and to imitate (model/copy) the leader. Charismatic leaders
seem so special, due to their strategic insight, strong convictions/beliefs, selfconfidence, unconventional behavior and dynamic energy, that subordinates idolize
(praise and respect) these leaders and want to become like them. Receiving
"approval" from the leader, followers sense of "self-worth" is increased. Leader
approval is usually expressed as praise and recognition of subordinate behavior and
accomplishments, which builds self-confidence and a deeper sense of obligation to
meet their leader's expectation of them. Leader approval becomes a prime
motivation for followers to make extraordinary contributions to achieving
organizational goals. Also, subordinates are motivated by fear of disappointing the
leader and being rejected by him/her.
The influence of a charismatic leader is also due to internalization of new
values and beliefs by followers. It is more important for followers to adopt the leader'
attitudes and beliefs about the work they do than merely to imitate superficial aspects
of the leader, such as in mannerisms, gestures and speech. To internalize values,
attitudes and beliefs of the leader means to accept them as your own. A charismatic
leader who can inspire others to accept his/her vision as their own, provides much
intrinsic motivation among followers to work toward achieving organizational
objectives.
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Facilitating Conditions. Leaders are most likely to be perceived as
charismatic under certain conditions: (a) when there is a crisis. Sometimes leaders
will create a crisis in order to provide for themselves more favorable conditions for
being seen as charismatic. They can do this by increasing subordinate dissatisfaction
with current conditions, and presenting convincing arguments why embracing change
is mutually beneficial. The change the leader advocates, however, must be tied to a
vision that appeals to followers. For example, leaders in Hong Kong who argue
strongly for a merger between HKUST and Chinese U. seek to win support for the
idea by emphasizing what they consider to be weaknesses and inefficiencies in
keeping the two institutions separate. They argue that it is critical for the two
institutions to come together for Hong Kong to have a university that can seriously
compete internationally.
SELF CONCEPT THEORY OF CHARISMATIC LEADERSHIP.
Charismatic leadership influences subordinates to work hard toward
achieving organizational objectives by appealing to their self-concept. Charismatic
leadership is working when the sense of self-worth of subordinates is increased by
behaving in ways that contribute to the leader's mission and objectives.
Indicators of Charisma. We know that charisma is working when followers
perceive the leader's beliefs are correct, they are willing to obey the leader, they feel
affection for the leader, are emotionally involved in the mission of the group or
organization, they have high performance goals, and they believe that they can
contribute to the success of the mission.
Key Traits and Behaviors. Firstly, lets deal with traits. Charismatic leaders
are likely to have a strong need for power, high self-confidence, and hold strong
beliefs and ideals. Now, with regard to behaviors . Charismatic leaders do the
following. They.
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Articulate an appealing vision
Use strong, expressive forms of communication when communicating
the vision
Take personal risks and make self-sacrifices to attain the mission
Communicate high expectations
Express confidence in followers
Model behaviors consistent with the vision
Manage follower impressions of the leader
Build identification with the group or organization
Influence Process. Since we know that leaders who get their followers to
personally identify with them can increase their influence over followers, it is
important to know how leaders can get their employees to personally identify with
them. They can do things that make them appear very attractive, heroic and
exceptional (articulate an appealing vision, display self-confidence, make selfsacrifices, demonstrate courage and conviction). However, unlike the attribution
theory of leadership, which emphasizes identification with the leader (personal
identification) as the key motivating force for followers, self-concept theory
emphasizes social identification, internalization, and enhancing individual and
collective "self-efficacy" (sense of competence). When there is a strong social
identification, people take pride in being part of a larger group and mission. They see
how their efforts and work roles are related to a larger cause or purpose, making their
work more meaningful and important. They put the needs of their work group above
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individual needs and make self-sacrifices to advance the interests of the group of
which they are a part. Social identification of this nature strengthens shared values,
beliefs and behavior norms among members of the group. Charismatic leaders
increase social identification by relating a follower's self-concept to shared values
and role identities associated with the group. Social identification can also be
increased by use of slogans ("we're number 1"), symbols (flags, uniforms) rituals
(singing, saluting), and ceremonies (initiation of new members), telling stories about
past successes etc..
Internalization occurs when attainment of tasks objectives becomes a way for
followers to express their values and social identities. Charismatic leaders
communicate a vision that appeals to follower values, and links these values to task
objectives. By emphasizing the symbolic and ideological aspects of the work, the
leader makes it more meaningful. Internalization is in full-force when followers come
to view their work role as closely tied to their self-concept and sense of self-worth.
Motivation to perform tasks to achieve objectives also depends on individual
and collective self-efficacy. Self-efficacy refers to the belief that you are competent
and capable of achieving difficult task objectives. People with high self-efficacy are
willing to put our more effort and persist longer to overcome obstacles to achieving
these objectives. Collective self-efficacy refers to the perception of group members
that they can accomplish exceptional things by working together. A charismatic
leader can increase the self-efficacy of followers by showing confidence in them and
celebrating follower accomplishments.
Facilitating Conditions. Charismatic leaders will be more effective when
their vision is consistent with the values and identities of their followers. Therefore,
they need to understand the values and needs of their followers. They should be able
to define task roles in ideological ("moral") terms that appeal to followers. This is
more difficult to do for some tasks than for others (your book provides for very good
examples here, pg. 245, bottom paragraph). Also, while self-concept theory does not
say that a crisis is a necessary condition for charismatic leadership to emerge, it
does say that charismatic leadership is more likely to occur when an organization is
in serious trouble, there is ambiguity about what should be done to resolve the crisis,
and there is anxiety and panic among followers. Such conditions favor the
emergence of a leader who is able to interpret the crisis and offer credible strategies
for coping with it. The current situation in Hong Kong with regard to SARS present
ideal facilitating conditions for the emergence of charismatic leadership, but which of
the political leaders has embraced this opportunity to emerge as a charismatic leader
in the eyes of the public? Can you think of a leader in the recent past who has
emerged as a charismatic leader during a time of crisis? What were the conditions?
What did this leader do? Interestingly, the charismatic effects of a leader will be
temporary unless their vision continues to be relevant after the immediate crisis.
Have perceptions of George Bush as charismatic leader changed since just after the
9-11 crisis?
OTHER CONCEPTIONS OF CHARISMA
There are other explanations of how charismatic influence works. Above we
said that charisma influences others through (a) favorable attributions people make
of leader traits and behaviors, and the personal identification we develop with the
leader based on these attributions; (b) linking the self-concept and sense of selfworth of followers to accomplishing the mission and objectives of the organization.
The first refers to attribution theory of charismatic leadership, and the second refers
to the self-concept theory of leadership. In this section, we discuss other processes
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by which charisma influences followers: (a) psychodynamic processes; (b) social
contagion.
Psychodynamic Processes. Whether leaders are perceived as charismatic
is most related to psychological characteristics and states of the followers. These
psychological states may be brought on by prevailing social and economic
circumstances. I will not devote attention to this, as the focus here is on
psychological vulnerabilities of followers, than make them search out a charismatic
leader for purposes of assuaging (improving upon) their negative psychological
states. You are referred to pg. 246-247 if you are interested in learning more on this.
Social Contagion. How is it that some leaders are perceived as charismatic
among followers who do not directly and personally interact with the leader?
Followers sometimes work at great distances from the leader. In the extreme, they
might not even observe the leader at a distance or on television. These conditions
can prevail with religion, for example. Sometimes people obtain perceptions of
charismatic leadership, not from leader traits or behaviors, but rather from observing
how others act toward, and speak about their leader. That is, followers influence the
perceptions and beliefs of each other, and this we call social contagion. Here,
followers seek social identification by adopting the views and beliefs of others, who
represent a cause they personally believe in. The others with whom they identify with
on this larger cause, usually have a symbolic leader. The leadership influence is
much more based on the followers' worship of the leader, than on anything the leader
actually says or does. Accordingly, the leaders' role is likely to be "fleeting" (of short
duration), as they are only a leader symbolically. With social contagion, the qualities
attributed to a leader may become highly exaggerated as rumors and stories spread
among people who have had no direct contact with the leader. By the way, this is
where "contagion" comes from. Contagious means to "spread".  Again, I don't
spend much time on this, because the influence on followers comes less from the
leader, and more from other followers.
Close and Distant Charisma. Do the attributions individuals make of a
leader differ based on whether they are in close or distal contact with them?
Followers with minimal contact with their leaders tend to describe their charismatic
leaders in terms of their achievements, and their impact on their political attitudes.
Followers with more extensive contact with their leaders tended to describe their
charismatic leaders in terms of their influence on follower motivation, task behavior,
and identification with the leader. This suggests that attributions of charisma for
distant leader are affected more by performance cues and shared stereotypes,
whereas attributions of charisma for close leaders are affected more by leader
behavior and personal skills. However, these findings are tentative, and more
research is required to determine what impact close versus distant contact with a
leader has on subordinate perceptions and attributions.
Routinization of Charisma. How do you make the impact of charismatic
leadership last, when the leader is suddenly no longer with the organization (e.g.
dies, moves on to work for another employer). What can the organization do to
protect itself and ensure some degree of continuity in leadership effects? There are a
number of things that can be done. (1) succession planning. Groom a leader as a
replacement and have this person ready to take over at a moment's notice; (2) build
an administrative structure (procedures) that will sustain the influence of charismatic
leadership when the leader is not present; (3) embed the leader's vision in the culture
of the organization by internalizing it among followers. That is, to create a powerful
and lasting culture (e.g. as Jack Welch at G.E. did).
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CONSEQUENCES OF CHARISMATIC LEADERSHIP
Charismatic leadership can have both positive and negative outcomes.
Positive and Negative Charismatics. Negative charismatics have a
personalized power orientation. They emphasize personal identification over
internalization. That is, they emphasize personal devotion to self more than devotion
to ideals. They seek to dominate and subjugate others by keeping them dependent.
Authority for important decisions is centralized in the leader, rewards and
punishments are used to manipulate and control followers, and information is
restricted and used to maintain an image of leader infallibility (flawlessness), or to
exaggerate perceptions of external threats to followers. Decisions of these leaders
reflect a greater concern for self-glorification and maintaining personal power than for
the welfare of followers (sound like Sudam Hussein?). Positive charismatics,
however, emphasize socialized power. They stress internalization of social values
over personal identification. They want devotion to the ideology rather than devotion
to themselves. Authority is largely delegated, information is shared openly,
participation in decisions encouraged, and rewards given for behaviors that advance
the collective mission and objectives.
The Dark Side of Charisma. There are some potential negative
consequences to charismatic leadership. Charismatics tend to make more risky
decisions, exposing the organization to greater risk of failure. While optimism is
important for charisma, over-optimism makes it difficult for the leader to recognize
flaws in the vision. The leader may develop a sense of infallibility, ignoring objective
indications that their vision may be flawed or require revision. See Table 9-2 (pg.
252) for other potential negative consequences of charismatic leadership.
Effects of Positive Charismatics. Positive charismatics tend to create many
more favorable and lasting outcomes for an organization than do negative
charismatics. This is because they have been successful in getting others to
internalize the mission, and empowered them to achieve it. However, there can be
some drawbacks (negatives). People who are energized, and highly committed to the
organizational cause, may simply overwork themselves, to the detriment of their own
health, and to their family. The constant stress of a high-achievement work
environment, with much social and self-pressure for organizational success can
cause health problems (physical and mental) and family problems.
Practical Implications for Organizations. Charismatic leadership is not
always required. It is most suitable when radical change in strategy and culture is
called for. Such need of radical change is not always present. Also, research has
shown that transformational leadership processes (institutionalized within the
organization) can bring about significant change in strategy and culture, without the
need for a specific charismatic leader as such. Also, sometimes transformational
leadership can come from groups of individuals rather than from a single charismatic
leader.
TRANSFORMATIONAL LEADERSHIP
The most popular theory of transformational leadership is the one espoused
by Bernard Bass. He distinguishes transformational leadership from transactional
leadership. The transformational leader motivates followers by (a) making them more
aware of the importance of task outcomes: (2) inducing them to transcend their own
self-interest for the sake of the organization or team; and (3) activating their higherorder needs. In contrast, transactional leadership involves an exchange process that
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may result in follower compliance with leader requests, but is not likely to create
enthusiasm and commitment to task objectives. According to Bass, effective leaders
are both transactional and transformational (they use a combination of both).
Leader Behaviors.
Transformational leadership involves the following types of behaviors:
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idealized influence. Behavior that arouses strong follower emotions and
identification with the leader
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intellectual stimulation. Behavior that increases follower awareness of
problems and gets followers to see problems from a new perspective
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individualized consideration. Providing support, encouragement and
coaching
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inspirational motivation. Communicating an appealing vision and modeling
appropriate behavior.
Transactional leadership involves the following types of behavior.
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Contingent reward. Clarifying the work required to obtain rewards and
use of incentives and contingent rewards to motivate
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Active management by exception. Looking for mistakes and enforcing
rules to avoid mistakes
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Passive management by exception. Use of contingent punishment and
other corrective action in response to poor performance.
Influence Processes. It is assumed that the effectiveness of transactional
leadership comes from instrumental compliance (people comply because they
receive valued rewards in exchange), and that the process explaining
transformational leadership is internalization (linking of task objectives to values and
goals of the leader).
Facilitating Conditions. Transformational leadership (TL) is considered to
be effective for any situation and for all cultures. However, the effects of TL may be
greater in some situations than in others (e.g. unstable environments, organic/flexible
organizational structures, entrepreneurial cultures).
Research on the Theory. Generally, research supports the theory. In
particular transformational leadership appears more related to leadership
effectiveness than does transactional leadership. Of the transformational leadership
dimensions, the ones most related to leadership effectiveness are: charisma,
intellectual stimulation, and individualized consideration. Contingent reward, a
dimension of transactional leadership, is also related to leadership effectiveness.
However, the effects seem to be stronger when leadership effectiveness is measured
as followers self-reports of effort than when measured with more objective measures.
Support for Bass's transformational leadership theory has come from survey
research, laboratory experiments, field experiments, comparative studies and case
studies. Examples of the type of support coming from each type of study is provided
in your text on pages 255-260.
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TRANSFORMATIONAL VERSUS CHARISMATIC LEADERSHIP
The essence of charismatic leadership lies in being perceived as
extraordinary by followers who are dependent on the leader for guidance and
inspiration. However, the essence of transformational leadership is to inspire,
develop and empower followers (encouraging independence from the leader).
Transformational leaders delegate authority, develop follower skills and selfconfidence, create self-managed teams, provide direct access to sensitive
information, eliminate unnecessary controls, and build a strong culture for selfinitiative. Charismatic leaders do more to nourish an image of themselves among
followers: an image of extraordinary competence. This often involves impression
management, information restriction, unconventional behavior and risk taking.
Bass argues that transformational leaders can be found in any organization at
any level, and that this type of leadership is universally important for all types of
situations. In contrast, charismatic leaders are rare, and their emergence is more
dependent on favorable (facilitating) conditions. The reactions of people to
charismatic leaders are usually more extreme and divided than is the case for
transformational leaders. Bass proposed that charisma is a necessary component of
transformational leadership, but also noted that a leader can be charismatic but not
transformational. A great question emerges here! Contrast and compare
transformational leadership to charismatic leadership, and provide examples to
illustrate their similarities and differences.
EVALUATION OF THEORIES
The theories in this chapter have emphasized the importance of follower
emotion in leadership effectiveness. Theories of leadership covered in earlier
chapters emphasized rational-calculative aspects of leader-follower interactions. The
neocharismatic and transformational leadership theories also underscore the
importance of leaders making tasks and events meaningful (tied to a "higher cause')
to followers. There are several areas of future research identified on pages 262-263 - research required to fill existing gaps in what we know about transformational and
charismatic leadership.
GUIDELINES FOR TRANSFORMATIONL LEADERSHIP
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Articulate a clear and appealing vision!
Explain how the vision can be obtained!
Act confidently and optimistically!
Express confidence in followers!
Use dramatic, symbolic actions to emphasize key values!
Lead by example!
Empower people to achieve the vision!
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