Analysis of Charismatic and Contingency Leadership in Business

This essay examines charismatic and contingency leadership theories within the context of a Global Luxury Car Dealership. It begins by defining charismatic leadership as the ability to inspire and emotionally engage followers, emphasizing the leader's role in motivating employees and setting compan...Read More

Management
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Charismatic leadership theory
It can be stated that the Charismatic leadership considered as an ability to charm and persuade.
When the leader of the business is capable of inspiring and triggering the emotional responses in
the followers then the leaders can be said as the charismatic leader. The true charismatic
leadership is taken into consideration as genuine changes in the other individuals. As a leader of
Global luxury used car dealership company the charismatic leadership approach is considered.
The leaders of Global luxury used car Dealership Company motivate and persuade the followers
to attain the goals and to consider the actions that is one of the essential part of the group effort.
The goals of the company are determined by the leaders so that it could be easy for the
individuals to attain it. It is important to work towards goals, as a leader of Global luxury used
car Dealership Company the focus is on exhibiting the willingness to consider the risks or to
sacrifice the comfort to attain goal (Hofmann, 2017).
As a leader of the company, there are five traits that are used in the workplace so that it could be
easy to boost the motivation level of the employees in the workplace. There are different
characteristic that should be present in the leaders as it can help in giving accurate directions to
the employees. Confidence is one of the aspects that are taken into consideration in context to the
charismatic leader as it emphasizing on maintaining faith in skills, experience and abilities. The
next key essential aspect on which the focus is given relates with the way of communication. The
leaders should have the ability to listen to others in proactively manner. Creativity should also be
there in the charismatic leaders as it helps to maintain the high degree of control over the
activities of the company. The last characteristic relates with the focus that should be maintained
towards the goals by the leaders as it will help the subordinates to boost the productivity and they
will also give their best towards the organizational operations (Sy, Horton and Riggio, 2018).
Contingency theory
As a leader, it can be said that contingency theory has also played a great role at the time of
managing the operational activities of the company. The contingency theory focuses on the
importance of the leader’s personality and also the situation in which the leader manages the
overall activities. It has also embraced the overall discipline in context to organizational behavior
as the area of study assist to have proper understanding of the employees. There are different
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situational factors in context to contingency theory that impact the direct relation among the
independent and dependent variable to boost the motivation level of the employees. The
contingency theory can also be stated as the behavioral theory in which it is said that there is no
best way of leader and it is important that effective leadership should be there so that it could be
easy to boost the motivation level of the other employees. The theory of contingency can be
similar to the situational theory as it emphasizes more on the leader’s behavior that should be
adopted in context to the different behavior of the followers. It is the duty of the leaders to
manage the activities according to the situation as it will help in maintaining control over the
followers in the workplace (Whalen et al., 2016).
In Global luxury used car dealership Company, the focus is given on the contingency theory in
which the effectiveness is maintained and also the leaders have the knowledge that what kind of
the leadership they have to consider and in which situation. The leader of the company
emphasizes on maintaining proper control over the actions by taking right decisions according to
the different situations. It can be stated that the leader is more effective when the skills and
attributed possessed in him or her matched with the working environment of the company.
Without this theory it would not be possible for the company to attain success in the highly
competitive market as it can be said that this theory assisted in managing the routine activities in
an effective manner (O'Brien and Sasson, 2017).
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References
Hofmann, D.C., 2017. Charismatic Leadership. Encyclopedia of Business and Professional
Ethics, pp.1-4.
O'Brien, J. and Sasson, A., 2017. A contingency theory of entrepreneurial debt
governance. Journal of Business Research, 81, pp.118-129.
Sy, T., Horton, C. and Riggio, R., 2018. Charismatic leadership: Eliciting and channeling
follower emotions. The Leadership Quarterly, 29(1), pp.58-69.
Whalen, P., Uslay, C., Pascal, V.J., Omura, G., McAuley, A., Kasouf, C.J., Jones, R., Hultman,
C.M., Hills, G.E., Hansen, D.J. and Gilmore, A., 2016. Anatomy of competitive advantage:
towards a contingency theory of entrepreneurial marketing. Journal of Strategic
Marketing, 24(1), pp.5-19.
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