Charismatic Leadership: Theory, Challenges, and Examples in Business

This report provides an in-depth analysis of charismatic leadership in business, focusing on its theoretical underpinnings, challenges, and practical applications. It identifies the main aspects of charismatic leadership theory, drawing from Weber's concepts of psychological, social, and relational dimensions. The report addresses how charismatic leadership can help overcome contemporary leadership challenges, such as matching vision with execution and managing unsustainable growth. It also examines the leadership style of Mark Zuckerberg at Facebook as an example of charismatic leadership, highlighting his ability to inspire and influence followers through emotional intelligence and a willingness to take risks. The report concludes that charismatic leadership is a powerful and influential style in business, emphasizing the importance of social relations and the leader's ability to attract and motivate followers.

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Contents
Introduction...........................................................................................................................................2
Identification of main aspects of charismatic leadership theory............................................................2
Charismatic leadership theory helps us to overcome the challenges faced by contemporary leaders-...3
Demonstration of an example of a charismatic leadership.....................................................................4
Conclusion.............................................................................................................................................6
References.............................................................................................................................................8

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Introduction
Leadership has been emerging as a crucial part in the success and failure of the
organisation. Leadership is an art of influencing people to perform a task efficiently and
effectively. High performance on the part of employees is the main role of effective
Leadership. Particularly, the report brings out the importance of charismatic leadership. The
report also directs the way to overcome the challenges faced by contemporary leaders.
The concept of charismatic leadership is most effective style of leadership, which
helps to achieve the outcome through seductive approach that can stimulate employees. The
report also critically analyses the role of this leadership style in organisational transformation
and examines the leadership style of leadership style of Facebook, Mark Zuckerberg. Mark
has major impact on company`s success including employee satisfaction.
Identification of main aspects of charismatic leadership theory
Charismatic leadership focuses the ability of person to persuade and spread charm.
Charismatic leaders gather, attract, and influence the employees by their abilities to influence
and charm without using any power. Charismatic leaders are driven by commitments and
causes which helps to achieve the specific goals (Trompenaars, & Woolliams, 2018). These
charismatic leaders are very effective communicators, especially the individuals who are both
verbally and persuasively efficient. These leaders are able to communicate an emotional and
deep level to its followers. Charismatic leaders are found and identified especially when the
world or the organisation faces the time of crisis and trouble. During crisis, leaders work hard
to become expertise in their fields (STU online, 2018).
A true and efficient charismatic leader can generate genuine emotions in others. When
a business or political leader become available to inspire and trigger the emotional responses
in the followers to accomplish goals and take actions after becoming a part of the group

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effort. A charismatic leader has not only the ability to excite the audience and followers
through speeches but also influences and persuade followers to achieve goals (Potts, 2009).
Charismatic leader exhibits sincerity in commitment for a cause. These leaders also
shows the willingness to take necessary risks or sacrifices to comfort its employees to achieve
the goals. These traits inspire the followers to shown the same dedication and follow the
footsteps of the leader. Mainly, charismatic leadership focuses and relies on three
components in weber`s theory. The components are psychological dimension, social aspect,
and relational dimension (Wren, 2013).
The psychological dimension refers to the inner traits of a leader. Weber reveals these
traits as either divine trait or specific physical or mental quality. The second element focuses
on social aspect. A charismatic leader not only stem out inner state of being but also root
social source. These social sources could be cultural which society, family, education, or
work affects. As a final dimension, relational dimension establishes a affectual relations
between a leader and a follower. A leader has to become evident and prove his important in
order to continue and enjoy legitimacy. Charismatic leadership is relational. Moreover, due to
relational dimension, the subordinates have the power to withdraw their support leading the
leader with no power to rule (Sohmen, 2015).
Charismatic leadership theory helps us to overcome the challenges faced by
contemporary leaders-
Contemporary emerging role of a charismatic leader helps to lead a team and manage
the conflict. The leader improves the performance of followers and act as a trouble-shooter.
The charismatic leader respond to every situation in a group and followers take part in such a
situation to assist the leader. The leader acts as a mentor who can be a senior employee who
has the ability to support the less experienced and amateur followers (Tsaur et al., 2014).
Some of the contemporary issues can be thinking out of the box, leading by example,

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changing of group dynamics, handling the risk of changing environment, recruiting and
retaining efficient workers, dealing with the changes of external environment, mentoring and
ethical behaviour. Managerial effectiveness relies on ability of the leader to gain the trust of
followers. Some of the major challenges faced by contemporary charismatic leaders are-
 The charismatic leader faces the problem in matching the vision and execution. It is
possible that the leader has successfully set clear, concise, and understandable vision
for their company. However, to move from set plan until execution, it may seem
inspiring and motivating to followers to execute the plan. Moreover, to move from
vision to reality needs hard-nosed execution. A good business charismatic leader
creates vision, clarify the vision, and passionately accomplish the vision (Gebert,
Heinitz, & Buengeler, 2016).
 Organisation faces the problem related to unsustainable growth. Charismatic leaders
can lead business into hyper growth. The challenges are related to their unique vision,
ability to inspire people, and ideas may lead to incredible gains for short term
(Randall, 2013).
 Sometimes, a charismatic leader has strong influence with and impresses the
organisational members initially with new and well-crafted ideas. Many employees
get impressed and excited to work with the talented leader. However, the things do
not remain same. After few months, employees realises the changes. The charismatic
leader makes huge visions by they are no more i8nterested to fulfil them (Zehir et al.,
2014).
Demonstration of an example of a charismatic leadership
The leader and founder of charity was more than just a leader. Talking about the great
charismatic leader undoubtedly highlights the name of Mother Teresa. She was an integral
charismatic leader. She was one of the most fascinating women in the 20th century. Although

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many business leaders have been emerging as charismatic leaders. However, to exemplify the
most accurate and appropriate leader was Mark Zuckerberg. Although there is a hybrid
approach where it is stated that both charismatic leadership and transformational leadership
serve the same purpose (Petriglieri, 2012).
After going through the deeds of the charismatic leader, it is seen that leaders who
engage in bribery, illegal and unethical deeds operates in charismatic leadership style.
Characteristics such as intellectual stimulation, moral ethics, and individual consideration
defines transformational leadership (Clark, 2017).
As an ideal of transformational leader also, Zuckerberg learnt from his mistakes, took
risks and emerged as an visionary leader. Mark, a charismatic leader is an American
technology entrepreneur. A charismatic leader willingly takes risks to reduce the problems on
its employees. Mark strongly believes that the biggest risk of any business is not taking any
risk. In the rapid changing business environment, the only strategy to overcome those risks is
taking other risks. Charisma nature and vulnerability move together. What becomes more
fascinating the magic appeal of leaders who cultivate desires which becomes motivation and
hope to the lives of the young generation? Charismatic Leader like Mark Zuckerberg, who
holds such successful stories. A charismatic leader can cultivate the objective of infusing by
describing the true meaning team spirit. The people who generally work to invest their time
and labour to get money. Moreover, a sense of fulfilment among working people establishes
charisma. Facebook is able to create reflection of fulfilling the personal desires of its
employees. As a charismatic leader, Mark may not be a natural charismatic leader but he
associated and cultivated charismatic traits into Facebook (Reddy, & Kamesh, 2016).
Mark utilised his emotional intelligence traits and attributes to figure out that people
are no more interested to learn and see people whom they neither know nor look at the

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pictures and videos of random people (Hoyt, 2008). Instead of this, people were more
interested in seeing and learning about the known people rather than the people whom they
even do not know. Moreover, Mark was able to understand and monitor the people`s feelings.
This trait of understanding people and using this information to direct the thinking of people.
Although, at the initial stage, Mark had no idea that Facebook would become so
popular and most used website globally. Mark`s dream of expanding and making Facebook
worldwide gained more incentive to maintain the future plan and avoided the idea of taking
enormous personal risk that suggested to sell Facebook. His extraordinary plan of growing
Facebook made by Mark encouraged the employees and followers to imposing referent
authority (ASTAX - Cross Accountancy Services, 2018).
The charismatic traits of Mark such as launching an extraordinary plan, self-
confidence, willing to take risk to minimise the employee’s burden, using emotional
intelligence to influence followers helped the followers to remain motivated during the whole
plan until the whole plan is executed. In addition to these traits, Mark also have the power to
persuade and spread charm both socially and mentally (Clark, 2017).
The charismatic is not only recognised when he is delegated with authority but is
identified with his verbal communication ability and new ideas. Mark`s behaviour was even
rich in personal behavioural traits such as honesty, self-confidence, trust among the
employees which allows employees to integrate and learn from the personal characteristics of
Mark. Moreover, Mark was not merely passionate about his profession but he also value
other`s effort and remain dedicated to increase the efficiency of team performance.
Zuckerberg continues to grow Facebook to an extraordinary plan. Mark flourished and
emerged a successful charismatic leader. As a leader, he also appreciates his employees to
offer improvement ideas and suggestion for Facebook (Bolman, & Deal, 2017).

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Conclusion
From the above discussion of charismatic leadership and demonstration of ideal
example of charismatic leadership, it is observed that charismatic leadership is an influential
type of leadership in business. It is quite evident from the discussion of weber`s idea of
charismatic leadership that the underlying traits of an charismatic leader influences and
attracts the followers. It can understood that charismatic leadership can not work without any
social relation.

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References
ASTAX - Cross Accountancy Services, (2018). Mark Zuckerberg Leadership Profile.
Retrieved from: https://www.castax.com.au/mark-zuckerberg
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and
leadership. John Wiley & Sons.
Clark, E. (2017). MARK ZUCKERBERG AND FACEBOOK LEADERSHIP. Retrieved
from: http://elijahclark.com/mark-zuckerberg-facebook-leadership/
Gebert, D., Heinitz, K., & Buengeler, C. (2016). Leaders' charismatic leadership and
followers' commitment—The moderating dynamics of value erosion at the societal
level. The Leadership Quarterly, 27(1), 98-108.
Hoyt C.L., (2008). Leader-Follower Relations. In Marturano, A., and Gosling J., Leadership:
The key concepts. Routledge. London.
Petriglieri, G. (2012). Mark Zuckerberg’s Magic Touch. Retrieved from:
https://hbr.org/2012/05/mark-zuckerbergs-magic-touch
Potts J., (2009). A history of charisma, London: Palgrave Macmillan.
Randall, M. (2013). The Secret to Cultivating Leadership Charisma. Retrieved from:
https://www.fastcompany.com/3005523/secret-cultivating-leadership-charisma
Reddy, A. V., & Kamesh, A. V. S. (2016). Integrating servant leadership and ethical
leadership. In Ethical leadership. Palgrave Macmillan, London.

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Sohmen, V. S. (2015). Reflections on creative leadership. International Journal of Global
Business, 8(1).
STU online, (2018). What is Charismatic Leadership? Leading Through Personal
Conviction. Retrieved from: https://online.stu.edu/articles/education/what-is-
charismatic-leadership.aspx
Trompenaars, F. & Woolliams, P. (2018). Dilemmas of Charismatic Leadership. Retrieved
from:
https://www.bertelsmann-stiftung.de/fileadmin/files/Projekte/84_Salzburger_Trilog/
Analyse_Salzburger_Trilog_Dilemmas_of_Charismatic_Leadership_20150806.pdf
Tsaur, S. H., Wu, D. H., Yen, C. H., & Wu, M. H. (2014). Promoting relationship marketing
of tour leaders’ blog: The role of charisma. International Journal of Tourism
Research, 16(5), 417-428.
Wren J.T., (2013). The leader's companion: Insights on leadership through the ages, New
York: Simon and Schuster.
Zehir, C., Müceldili, B., Altindağ, E., Şehitoğlu, Y., & Zehir, S. (2014). Charismatic
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climate. Social Behavior and Personality: an international journal, 42(8), 1365-1375.

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