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Effective leaders don’t use a single style; they use many different styles and make adjustments based on
the situation. An important but often overlooked contingency variables is national culture

New Approaches of Leadership: following are the new approaches of leadership;
1. Transactional
2. Charismatic
3. Transformational
First of all we need to understand the difference between Transactional and Transformational
leadership. After this, we will be discussing the Charismatic leadership.

1. Transactional Leadership:
These types of leaders focus on rewards in exchange for motivation, productivity and effective task
2. Transformational:
These types of leaders focus on influencing attitudes and assumptions of staff. Building commitment to
the mission and always try to achieve the objective of the organisation.

Transactional leaders differ from transformational leaders
Most of the leadership theories presented in this chapter address the issue of transactional leaders.
These leaders guide or motivate their followers in the direction of established goals by
clarifying role and task requirements.
Transformational leaders inspire followers to transcend their own self-interests for the good of the
organization and are capable of having a profound and extraordinary effect on his or her followers.
Transformational leaders pay attention to the concerns and developmental needs of individual
followers; they change followers’ awareness of issues by helping those followers to look at old
problems in new ways; and they are able to excite, arouse, and inspire followers to put out extra
effort to achieve group goals.
Transactional and transformational leadership are not opposing approaches.
Transformational leadership is built on transactional leadership.
Transformational leadership produces higher levels of employee effort and performance.
It is more than charisma.
The transformational leader will attempt to instill in followers the ability to question not only
established views but eventually those established by the leader.
The evidence supporting the superiority of transformational leadership over the transactional
variety is overwhelmingly impressive.
In summary, the overall evidence indicates that transformational leadership is more strongly
correlated with lower turnover rates, higher productivity, and higher employee satisfaction.

Categories Transactional Transformational
Leader’s source of power
Rank, position Character, competence

Follower reaction Compliance Commitment

Time frame Short term Long term

Rewards Pay, promotion, etc. Pride, self-esteem, etc.

Supervision Important Less important

Counseling focus Evaluation Development
Charismatic Leadership:
Charismatic leaders have a combination of charm and personal magnetism that contribute to a
remarkable ability to get other people to endorse to their vision and promote it passionately.

Charisma Defined: Charisma has been defined various ways. Charisma is a Greek word meaning
“divinely inspired gift”. In leadership, charisma is a special quality of leaders whose purposes, powers,
and extraordinary determination differentiate them from others.

Charisma: A Relationship: Key to charismatic leadership is the interaction between leader and group
members. Charismatic qualities must be attributed to the leader by group members and Charismatic
leaders use impression management to cultivate their relationships with group members.
Charismatic leadership theory is an extension of attribution theory.
It says that followers make attributions of heroic or extraordinary leadership abilities when they
observe certain behaviors.
Several authors have attempted to identify personal characteristics of the charismatic leader.
Robert House has identified three: extremely high confidence, dominance, and strong
Warren Bennis found that they had four common competencies: they had a compelling vision
or sense of purpose; they could communicate that vision in clear terms that their followers
could readily identify with; they demonstrated consistency and focus in the pursuit of their
vision; and they knew their own strengths and capitalized on them.
Jay Conger and Rabindra Kanungo at McGill University—charismatic leaders have an
idealized goal that they want to achieve and a strong personal commitment to that goal; they are
perceived as unconventional; they are assertive and self-confident; and they are perceived as
agents of radical change rather than as managers of the status quo.
There is an increasing body of research that shows impressive correlations between charismatic
leadership and high performance and satisfaction among followers.
Charismatic leadership may be most appropriate when the follower’s task has an ideological
Second, charismatic leaders may be ideal for pulling an organization through a crisis but
become a liability to an organization once the crisis and the need for dramatic change subside.

Trait of a Charismatic Leader:
_ Self-confidence
_ A vision
_ Strong conviction in that vision
_ Out of the ordinary behavior
_ The image of a change agent
Followers feelings towards
Charismatic Leaders
• High Trust
• Obedience
• Emotional involvement
• Satisfaction
• Self-esteem
• Motivation
• Belief in likeliness of success
Two Types of Charismatic Leaders:
Visionary Leadership:
Visionary leadership goes beyond charisma. Visionary leadership is 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.
A vision differs from other forms of direction setting in several ways:
“A vision has clear and compelling imagery that offers an innovative way to improve, which
recognizes and draws on traditions, and connects to actions that people can take to realize
Vision taps people’s emotions and energy.
The key properties of a vision seem to be inspirational possibilities that are value centered,
realizable, with superior imagery and articulation.
Visions should be able to create possibilities that are inspirational, unique, and offer a new
order that can produce organizational distinction.
Desirable visions fit the times and circumstances and reflect the uniqueness of the organization.
People in the organization must also believe that the vision is attainable.

Crisis-Based Charismatic Leaders:
The crisis-produced charismatic leader communicates clearly what actions need to be taken and what
their consequences will be in the crisis.

Transformational v. Charismatic Leaders: Some experts say yes, transformation and charismatic are
same but emerging view is that:
_ Charisma is distinct from transformational leadership
_ A personal trait that might help transform, or might just help the leader
_ Charismatic leadership might have opposite effect -- creates dependence, not empowerment

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