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Charismatic leadership has become an important theoretical approach to explaining leader effectiveness since the concept was most fully described in a 1977 article by Robert House. Prior to House's work, charismatic leadership theory was only loosely articulated, and the research that was done tended to follow ethnographic, qualitative forms. Since then, the theory has been more explicitly articulated and has permitted the use of other, more quantitative methods to be used. Based in part on Max Weber's conception of personal power, charismatic leadership theory rests on the notion that a leader's influence on his or her followers is often beyond the legal and formal authority structure of a group or organization and relies instead on the leader's personal charm, attractiveness, and persuasive communication. According to Weber, charismatic leaders are able to influence followers by articulating a compelling vision for the future, arousing commitment to organizational objectives, and inspiring commitment and a sense of self-efficacy among followers.

The unique and compelling traits that are attributed to charismatic individuals are often regarded as gifts granted from higher powers. Many of the most prominent charismatic individuals in human history are those that have been influential in the spiritual domain, such as Buddha, Jesus, Mohammed, and Moses. To others, charisma is associated with persuasion, power, and political leadership, with personal charisma regarded as the unique quality of exceptional heads of state (e.g., Winston Churchill, Mohandas Gandhi, Adolph Hitler, Franklin D. Roosevelt, Ronald Reagan, and Mao Zedong). Finally, charisma finds itself as an important aspect of business leadership, as executives who are visionary, agents of organizational change, and capable of arousing commitment among employees tend to be described as charismatic. The most popular charismatic business leaders, such as GE's Jack Welch and Apple's Steve Jobs, have separated themselves as particularly attractive to stakeholders both inside and outside of their respective organizations.

Conceptual Overview

With its origin in the Greek language, charisma is regarded as a unique gift granted to a few, special individuals. One of the first approaches to the examination of charisma in the social sciences was offered by Weber in 1947, who described charismatic individuals as those with exceptional powers or qualities, such that these individuals are set apart from ordinary people. Charismatic individuals are those who maintain extraordinary individual traits (e.g., confidence and optimism), are attractive to others, and are often characterized as inspirational and eloquent communicators. Very often, charismatic individuals are cast into positions of power due in part to their abilities to inspire and persuade the masses. In reference to the unique capabilities of charismatic individuals, Weber suggested that certain abilities were of divine origin and otherwise inaccessible to the ordinary person. Contrary to the popular models of power and influence of the time, Weber introduced the notion that willing followers could be influenced beyond legal authority structures, reward systems, or traditional, bureaucratic systems. Instead, truly exceptional leaders inspire followers to higher levels of cognitive functioning and encourage high levels of productive behavior.

Charismatic Leadership Theory

Charismatic leadership theory asserts that exceptional leaders create a connection with followers, attend to their individual needs, and inspire followers to achieve beyond personal limits. By appealing to higher-order individual values and magnanimous ideals, charismatic leaders enhance the commitment of followers to an eloquent vision and arouse followers to develop new ways of thinking about problems. While tests of the theory have proposed a number of mechanisms by which charismatic effects are realized, a common set of behaviors generally characterize charismatic leadership. Charismatic leaders articulate a compelling and often innovative vision of the future, take personal risks, emphasize ideological aspects of the organization's mission, show sensitivity to followers' needs, and communicate in an emotional and enthusiastic manner. These leaders are personally attractive to stakeholders both internal and external to the organization, and they are able to arouse emotion among followers and inspire commitment to organizational change.

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