The Challenges Of Charismatic Leadership And Organizational Performance

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Charismatic leadership theories have made considerable progress in addressing effective leadership(Hoogh et al., 2005) Gardner and Avolio (1998) say “charismatic leadership is positively related to organizational outcomes”. Collective agreement with the leader’s values and vision, creates shared values and a heightened level of cohesion with the team. Research has shown there is a positive relationship between charismatic leadership and organisational performance(Conger & Kanungo, 1994).
Charismatic leadership is said to be most prevalent in environments where there is great opportunities for change and consistent challenges, a dynamic environment (Hoogh et al., 2005). Organic structure was also positively associated with charismatic leadership
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(2004b) found that the follower relationship work attitude to be stronger in dynamic and unpredictable environments. This environment seems to be beneficial for the leader to generate a greater appeal to their vision. (Waldman et al., 2001; Trice & Beyer, 1986). Charismatic leaders can focus follower 's attention to not only tackling the change but doing so with optimism therefore devoting themselves to the attainment of the vision. This effort and commitment from the followers enable the organization to respond rapidly to changes (Howell & Avolio, 1993; Shamir & Howell, 1999). Charismatic leaders have the ability to energize followers, allowing them to achieve and exceed their goals and objectives. They are motivated and therefore more likely to engage in high levels of innovative behaviours (Paulsen et al., …show more content…
Bass 1985); however, the results of this paper illustrate that certain forms of transactional leadership like using contingent rewards has been linked to positive organizational outcomes between leaders and followers and may have positive effects on job satisfaction and performance (Kim & Lee, 2011). Leaders who clearly define expectations and agreed-upon goals and performance levels are more likely to achieve success. Non transactional leaders should take this into account and understand there is a positive side of utilising contingent rewards to foster followers’ job satisfaction and creativity. Transactional leadership clarifies everyone 's roles and responsibilities. And, because transactional leadership judges team members on performance, people who are ambitious or who are motivated by external rewards – including compensation – often thrive(Liu et al.,

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