TRANSACTIONAL CHARISMATIC AND
TRANSACTIONAL, CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP
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
New Approaches of Leadership: following are the new approaches of
First of all we need to understand the difference between Transactional and
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
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
• 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
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 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
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
leaders use impression management to cultivate their relationships with group
• 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
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
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
Trait of a Charismatic Leader:
_ A vision
_ Strong conviction in that
_ Out of the ordinary behavior
_ The image of a change agent
Followers feelings towards
• High Trust
• Emotional involvement
• Belief in likeliness of success
Two Types of Charismatic Leaders:
• 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
• Vision taps people’s emotions and
• 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
_ A personal trait that might
help transform, or might just help the leader
_ Charismatic leadership might
have opposite effect -- creates dependence, not empowerment