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CharismatiC Leadership:
BLessing or Curse?
natasha Kaul
Research Scholar, Institute of Management, Nirma University, India.
Email: [email protected]

abstract Charismatic leadership has become a popular topic in organisational research in the last few decades. This paper discusses the
qualities of great charismatic leaders, and specifically examines the characteristics of such leaders. There are various leadership styles, which
may be dictated by the management culture as well as the needs of the organisation or venture .The purpose of this article is to consider the
concepts of charisma and leadership, and explain the charismatic leadership process and the attributes that a charismatic leader possesses.
This review paper also tries to find out various effects of charismatic leadership on the organisation. The paper also aims to look at the
implications of the “dark side” of charismatic leadership, that is, a “villain” charismatic leader concept rather than focusing only on the
“heroic” capabilities often studied in leadership research.

Keywords: Charismatic Leadership, Organisational Research, Empirical Evidence

Introduction for three reasons. First, the use of this methodology can help
us understand how leadership is differentially exercised
There are several styles of management that can be used at different organisational levels. Second, as leadership
throughout business practices across the world, some of which is dynamic in nature, a qualitative analysis will add depth
are the charismatic, participative, situational, transactional, and richness that’s lacking in knowledge that is obtained
transformational, servant, and micromanagement to name a from questionnaires. Finally, there is research that looks at
few. Charismatic leadership has become a popular topic in leadership as a socially constructed role, and in this case it
organisational research in the last decade or so. However, would be useful to use qualitative methods to understand
till date there is still very limited empirical evidence the construct from the different perspectives to get a more
that illuminates the underlying influencing processes of complete idea of the social construction.
charismatic leadership and the effectiveness of this type of The big question regarding charismatic leadership has been:
leadership. In fact, in a recent meta-analysis of experimental can charismatic leadership be taught or are the personal
and quasi-experimental leadership research Reichard and experiences people grow-up with, a major factor in the
Avolio (2005) showed support for the positive effects of outcome of charismatic leadership? Most of us understand
leadership. Many management practices implemented by charisma to be something inherent: either you have it or you
such charismatic organisational leaders do improve the don’t. The typical CEO was an “organisation man” who
bottom line results and also employee satisfaction (Pfeffer, worked his way up the ranks and was no better known to
1998). However, there is also research which suggests that the general public than his secretary. These CEOs in the era
leadership has less of an impact on organisational performance of investor capitalism are portrayed by disgruntled investors
as compared to other factors such as competitive market as insulated, self-interested elite, ill prepared to face the
forces, varying economic conditions, or highly motivated challenges of global competition and rapid technological
employees. It is just that it is convenient to use leadership as change. Now every company wants to hire the best person,
a simple and convenient explanation for outstanding or poor especially when they are choosing a CEO. But a number of
organisational performance (Meindl, 1995, 1990; Meindl, organisations fall victim to two common errors: mistaking
Ehrlich, and Dukerich, 1985). Perhaps the concern is not that charisma for skill and hiring a “second in command” as a
leadership has little impact, but that the manner in which potential future successor. Many leadership appointments
we study leadership is not consistently uncovering when and go awry by being overly swayed by candidates with
how leadership does make a difference. “charismatic magnetism”. It is not to say that you should or
According to Conger and Toegel (2002) qualitative methods are capable of ignoring charisma in making hiring decisions,
are important tools specifically for the study of leadership it is important to understand what it is and is not.
 12 International Journal on Leadership Volume 1 Issue 2 October 2013

C��ri���tic ���d�r��i�- an extent that they believed in every word, action and deed of
their leader. A look at the list of leaders points out that these
T��or�tic�� Found�tion were controversial leaders who defied authority and some
of them were called “creative maladjusted non-conformist”
Of all the leadership theories in organisational research, while they lived. An assessment of their virtues and mistakes
charismatic/ transformational leadership has captured has constantly shifted over historical time. They never seem
scholars’ interest most over the past decade. Leadership is, to fade from historical view. A point that demands attention
of course, one of those topics in which interest never wanes. is that though they were all different in their politics the
Leaders are by definition at the pinnacle of any society’s effect on their followers was a commonality. Charismatic
largest organisation and their actions have the potential leaders “cause followers to become highly committed to the
to change the course of history. The term charisma has leader’s mission, to make significant personal sacrifices, and
traditionally been used to describe the godlike, magical to perform above and beyond the call of duty.” This influence
qualities that certain leaders possess. Some leaders seem to over people is entrenched in the leader’s values, passion and
have a powerful presence, it seems as though charisma is logic – as Aristotle called the ethos, pathos and logos. An
dripping from every pore. Bass (1985) states that, “Charisma important part of helping organisations find their next leader
is in the eye of the beholder and, therefore, is relative to is gaining clear insight into what went wrong with the last
the beholder. Nevertheless, the charismatic leader actively one. It has been called a fire that ignites followers’ energy
shapes and enlarges his or her audience through energy, and commitment?
self-confidence, assertiveness, ambition, and opportunities
seized.” The term charisma is in fact quite difficult to Charismatic leaders are able to provide very effective
accurately define, but some similar terms related to charisma leadership to organisations. For one, research has shown
are: exuberance, extreme charm, grace, joie de vivre, a positive correlation between charismatic leadership and
mystique, positive energy, personal magnetism, personal reported follower performance and satisfaction (Shamir,
appeal, and allure. Among many others, connotations of House and Arthur, 1993; Shamir, Zakey and Popper, 1998),
the term have changed, of course, over the years. For some, perhaps because organisational members feel stronger and
CEO stands for ‘Charismatic, Energetic and Outgoing’ and more in control of their own destinies. Charismatic leaders
in our more worldly age, some of its religious connotations are also able to help generate organisational meaning and
are lost and it now refers to a wide range of leadership styles enthusiasm with the meaningful vision that they express. It
that involve the capacity to inspire - usually through oratory- is known that the organisation can take on characteristics
emotional bonds between leaders and followers. Do you of a cause, or a movement of reform (Berlew, 1974) and
think that most leaders, politicians and inspirational figures this helps. Accordingly, the efficiency and effectiveness
have charisma and it is that particular quality which makes of an organisation in attaining its goals is also enhanced
them stand out? Charismatic leaders are organisational because of the influence of a charismatic leader. Also
heroes who through sheer magnetism turn things toward there is other evidence that points to a positive correlation
dramatic change. Their visionary rhetoric, infused with an between charismatic leadership and enhanced organisational
indescribable appeal, gives us belief and hope. There is of performance (O’Connor et al., 1995; Conger, Kanungo,
course a great deal of controversy about whether charisma is and Menon, 2000). The idea of charismatic leadership has
made or born and if charismatic leaders are really effective. enthralled the minds of academicians, investors, journalists,
and also the general public. A lot of work has been put into
Many of history’s most effective leaders like Napoleon and trying to analyze and bottle charisma and for this many
De Gaulle in France, Lincoln and Roosevelt in the United renowned personalities have been dissected in a bid to
States, Peter the Great and Lenin in Russia, Mahatma Gandhi identify the magic ingredients that will lead to corporate
in India, Mao Zedong in China, Mandela in South Africa success.
were known as dynamic, charismatic and inspirational
leaders. Truly charismatic leaders are considered to possess
some “magical” qualities. Alexander the Great crossed the N���ti�� Sid� o� C��ri���tic
unconquerable Alps Mountain with his soldiers, a feat which L��d�r��i�
no one had achieved. What was it that led their followers
to believe in them that they did the unthinkable? All of the Partly the discussion on charisma in leadership and
charismatic leaders had unique traits and qualities which organisations has carried the tone of danger. Charisma
made them powerful agents of social change and their has been seen as a politically dubious characteristic of
most significant leadership attributes were related to their individuals in the society and there has been a search for
involvement in, and contribution to, the intellectual upheaval the psychological mechanisms which lead to the emergence
that has always been an essential part of freedom struggles. of charismatic leaders and their attraction to the people that
These leaders had gained the trust of their followers to such follow them. For instance, Lindholm has studied extremely
 Charismatic Leadership: Blessing or Curse? 13
destructive charismatic leaders like Hitler, Manson and Jim their self-interest and personal goals to override the goals
Jones and the manipulation practiced by charismatic leaders of the organisation. Charismatic leaders are often unable to
are seen negative and undesired consequences of it at societal tolerate criticism and so they surround themselves with ‘yes’
level. Images of charismatic leaders often bring to memory people who are rewarded for pleasing the leader and create a
some gloomy examples taken from the history. climate where people are afraid to question or challenge the
king or queen when they think he or she is making a mistake.
A lot of recent research has begun to question the value
Almost by definition, an enduring great company has to
of charismatic leadership. In a recent issue of the Harvard
be built so that it does not depend on an individual leader,
Business Review, Rakesh Khurana from the Harvard
because individuals move on due to retirement, death, etc.
Business School argues that firms appoint charismatic
Also a company can’t be known by what it stands for if you
bosses because they tend to believe—despite a notable lack
cannot separate the identity of the company from its leader.
of conclusive evidence—that a chief executive can have an
Thus, this kind of leadership sacrifices the power of being
almost mystical impact on a company’s performance. The
directed by its core purpose.
cult of charismatic leadership has gone too far and when
struggling companies look for a CEO today, the only quality However, reducing leadership to mere dyadic influence can
they prize above all others is “charisma”. And to attract blur the line between authentic leadership and manipulation.
these people, they are given unprecedented autonomy and And this is the danger in charismatic leadership. There is no
resources. They have private jets at their beck and call, use dearth of horrific examples throughout history which point
of lavish penthouses, interest free loans to buy beach houses out that there is a dangerous slippery slope. Charismatic
and art, heavy security provided by their companies, and leaders have in many cases resorted to manipulation. As
benefits appropriate for royalty. Research has also shown when they are left unchecked, charismatic leaders eventually
that charismatic CEOs are able to leverage higher salaries begin to see people as things – that have to be manipulated,
even when their performance was ordinary by using their cogs in the wheel, and means to an end. Many researchers
charisma. have recognised a number of possible dark realities of
charismatic leadership: keeping followers weak and
Although they can have strong positive effects on
dependent for direction; maintaining control over decision
organisations, but it needs to be pointed out that charismatic
making; delusions of infallibility; excessive optimism, etc.
leaders can also create substantial negative outcomes. Conger
It’s easy to find these character faults in cult leaders and
(1990) has referred to this as the “dark side” of charismatic
tyrants. But a check list to measure psychotic behaviour is
leadership, which he states can eclipse the bright side to the
unavailable. However, it’s a warning sign for all with the
disadvantage of both the leader and the organisation. The
gift and responsibility of leadership.
actions of charismatic leaders can make the management
and decision making processed slightly unstable and Charisma can serve not only the personal interests of the
uncertain, and can also increase the risk intensities of the leader, but also the larger society (Allert and Chatterjee,
organisation (House and Howell, 1992). It can also make 1997; Robbins, 1992). Selfishness and narcissism of a
the organisational members more open to manipulation charismatic leader may come together and lead to undesired
and deception by the charismatic leaders (O’Connor et al., consequences, whereas unselfishness and scarifying features
1995). Charismatic leaders are also slightly unlikely to be of a charismatic leader can be seen to cause desired and
able to routinize the positive features of their leadership into admirable consequences. The nature of charisma is not very
the organisation to continue beyond their tenure. It is also rational. It works between the leaders and the followers;
rare for charismatic leaders to be replaced successfully by it is evidently not very rational by nature, not based on
leaders with similar capacity for achieving organisational authority of the leader given to him only because his or her
transformation (Bryman, 1993; Conger, 1990). overwhelming knowledge or experience but more based
on the personal features of the one. Accepting charisma,
Nevertheless, charisma remains as difficult to define as art
from the followers’ point of view, can be seen as dubious
or love. And there is no conclusive evidence that charismatic
and showing the tendency to become impressed by others,
leadership affects an organisation’s performance. Charismatic
a kind of sign of weakness and subordination. Charisma of
leaders present a vision for an organisation’s future. The
the leaders, and its acceptance on behalf of the followers
leader’s principles, motivations, and self-concept system
might leave space for “irrational” forces in the society is
impact the vision and act as guides for the behaviours the
the message of suspicious approach towards charismatic
leader uses changing the organisation. Unfortunately, leaders
leadership. This gives extra space for persuasion and
who are larger than life are not always interested in affecting
manipulation tendency in charismatic leadership processes.
change for the purpose of benefitting the organisation and
Charismatic followership (Aaltio-Marjosola, 1996) can be
its members as a whole; instead often the leader may be
seen crucial in understanding the charismatic leadership and
more concerned with his personal results. At its worst, the
the processes where it takes place.
perils of this ego-driven charisma are leaders who allow
 14 International Journal on Leadership Volume 1 Issue 2 October 2013

Any study of charismatic leadership is inextricably linked broke laws and crossed ethical lines to produce financial
with the psychological concept of narcissism. Narcissism numbers that allowed leaders to cash in millions of dollars
is a normal personality dimension that involves feelings in stock options.
of superiority over others, self-love, and a strong drive for
The term charisma is value-neutral: in that it doesn’t
power and glory. On the bright side, productive narcissists
differentiate between good/ moral and evil/ immoral
enjoy a great vision and have expansive thoughts and ideas.
charismatic leadership. Blind fanaticism and heroic self-
Such visions are more often than not bold. Also they share
sacrifice in the service of a beneficial cause are both results
this vision in a way that is inspirational and that excites their
of following a charismatic leader. There are at one end
followers and therefore they get their emotional commitment.
ethical charismatics who develop creative, critical thinking
Their ideas are often optimistic, in some way different from
in their followers, provide opportunities for development,
the norm, and challenging. Narcissists will be more focused
are open to both positive and negative feedback, know
on pursuing their goals and this pursuit is relentless. This
the contributions of others, are more forthcoming with
is especially in keeping with their exaggerated self-image.
information for followers, and have high moral standards that
Those leaders who cannot champion a bold vision and
highlight collective interests of the group or society. At the
commonly lack self-confidence are unlikely to be seen as
other end are charismatic leaders who display psychopathic
charismatic. On the dark side, however, they tend not to
behaviour. Some of these characteristics include: superficial
listen. Sometimes they give the illusion of listening while
charm, an exaggerated sense of self, lack of remorse and
in fact they are preparing for their next verbal intervention.
empathy, lack of genuine emotion, manipulative behaviour,
They do not take criticism well from any quarter and as a
etc. Based on this, it seems reasonable that perhaps some
form of self-defense will keep their distance from critics.
destructive charismatic leaders are potentially psychopathic.
This shows that neither do they open up their feelings to
others nor, pay attention to the feelings and thoughts of Let’s face it -- it’s fun to have a leader to follow. To have a
others especially if they are negative or non-confirmatory leader who can get you excited about a vision and the means
of their self-image. When times are tough followers may to achieve it. It’s a common human instinct. It is not to suggest
have to be more tolerant of the darker sides of narcissism. that leaders can’t be effective without being charismatic, but
This may in part explain how dictators in the 1930’s came to having charisma can be a huge asset. But this charismatic
power following the Great Depression. At that time followers charm can be both a blessing and a curse. The reason is that
were in a state of confusion and uncertainty and therefore charisma can be used for the good of a company or nation
much more open to this form of charismatic influence. This as well as for personal ambitions after overlooking the larger
presents the view of a situational determinant to leadership. good. As it is pointed out above, not all about charismatic
Sometimes these leaders can be addicted to glorification and leadership is fascinating. It has some darker side too. There
do not tolerate any kind of criticism. They usually desist can be issues if a charismatic leader starts believing that
from grooming others for leadership, because they prefer not he is infallible, if he begins to use his charisma to ruin the
to have anyone to question their authority. Under charismatic minds of the young. Finally charisma can reach beyond
leadership, group members may view success in relation to the walls of the workplace. And charismatic leaders can be
their leaders. Another issue with charismatic leadership is very dangerous, because of their power to captivate others.
that group success to a very large extent is dependent on the Some of the most oppressive leaders in history were highly
leader. The leader is the glue that holds a group together. So charismatic. Consider Hitler, who was the leader of the
when the leader steps down, the group dynamics fizzles and Nazi Party and responsible for policies that resulted in the
individual members lose enthusiasm. It is common for the holocaust and the deaths of approximately 6 million Jews.
death of a charismatic leader to create a void of uncertainty Robespierre was also considered charismatic, a leader of the
and often the followers institutionalize their policies for sake French Revolution. He often used the guillotine to control
of continuance. Max Weber has termed this as “routinization the country and get rid of his political enemies. And, more
of charisma.” But once routinized, the directions these recently, Osama Bin Laden inspired his followers in the
policies can take cannot be predicted. name of religion to sacrifice their lives, and the lives of so
many others. Leaders like Hitler, Stalin and Bin Laden, more
Unfortunately, charismatic leaders don’t always have the
recently have used their charisma to achieve their sinister
company’s best interest in mind. A large number of such
motives that has resulted in chaos in society.
leaders like to transform the company into their image. This
causes the boundaries separating personal and company Conservatism rather than charisma is the vital characteristic
interests to blur. In the worst circumstances their self-interest of successful business leaders, claims a new study. There
and personal goals will take precedence over the company’s is an understated leadership style called “intelligent
goals. There are examples of companies such as Enron, Tyco, conservatism”, which is commonality among companies that
WorldCom, and HealthSouth where leaders recklessly used have achieved success in the long run. From time to time,
company resources for their personal benefit and executives charismatic leaders pop up, but largely these companies
 Charismatic Leadership: Blessing or Curse? 15
have succeeded by listening to their people and relying on within groups (Robinson and O’Leary-Kelly, 1998), it may
old-fashioned industry expertise. Charismatic people have be worthwhile to examine how leaders’ immediate social
a remarkable ability to distill complex ideas into simple context and larger work environment influence the “dark,”
messages; they communicate by using stories, analogies, personalized aspects of their charismatic behaviour.
metaphors and also symbols. This makes it easy for anyone
to understand them. They also relish risk and feel a void Mini�i�in� t�� Ri�� o� C��ri���tic
if there is no risk; they are great optimists they are rebels
who fight convention; they may seem idiosyncratic. Sensing L��d�r��i�
opportunity and formulating a vision: these leaders seem to
sense their constituents’ needs as well as see the deficiencies Charismatic leadership is slightly ‘risky’ for companies
of the existing situation and untapped opportunities. The because it is often difficult to predict the result when there
combination of these qualities leads to a vision of an ideal is too much power in the hands of an individual leader.
future. In organisational terms these visions seem to fall There can be a drastic change in the culture and strategy
along one of four major types: an innovative product or of a company when a charismatic leader takes over. If
service; a contribution to society; a transformation of the the company needs a high degree of change or is facing a
organisation; or a contribution to the workforce. crisis then this transformation is appropriate, however, once
things are back to normal the centralisation of power and
The key ingredient of intelligently conservative leadership the implementation of risky strategies are unlikely to be
is in-depth knowledge of an organisation which allows acceptable. Research has shown that charismatic leaders
leaders to enter into responsive networks and to build an are usually good at rescue operations, but when it comes to
understanding of what is happening in the organisation. The achieving long-term success and management they are not
most effective corporate transformations have most often so successful.
than not been undertaken by leaders who were promoted
from within the company, rather than by charismatic This is an important factor to consider because it is unlikely
outsiders. A number of transformative leaders succeeded that a charismatic leader will adapt the leadership style or
because of the experience they had within their companies cooperate in the appointment of a successor if and when the
prior to taking over. Leadership appointments can easily go situation changes. The charismatic leaders enjoy the center
awry if the selection is overly swayed by candidates with stage and are not keen to share the spotlight. So they don’t
charismatic magnetism. After all, it has been pointed out that usually work on developing successors. Therefore, choosing
charisma is like nectar on a flower which attracting bees for a charismatic leader needs awareness of both the positive
pollenization. Like the nectar, it attracts you and draws you and negative effects that are likely to accompany such
in, but all the same, it is a personal characteristic, just like leadership. Safeguards can also be implemented within the
height, eye colour, etc. Charisma does have its benefits. It organisation to maximize the contributions they can make
can be a valuable asset in interpersonal situations which can while minimizing the potential negative consequences.
vary from general management, customer service, raising An effective accountability structure is one possible
capital from investors, to, of course, sales. But having said safeguard in the appointment of a charismatic leader.
this, charisma should not overpower the need to have other Unethical and moral leadership failures are largely due to
right qualities and experiences to fit into the organisational the lack of effective accountability structures (Chandler,
jigsaw. 2009). But it has to be pointed out that charismatic leaders
There are still some aspects that need to be addressed might react negatively to this because normally they strive
to get a complete understanding of the dark side of for personal autonomy (Conger, 1990). In order to prevent
charismatic leadership. Some scholars have argued these this from becoming a problem, it is advisable to address this
types of leadership to hinge on different sets of personality at the time of appointment and clarify all the standards of
antecedents, with factors such as Machiavellianism, accountability and reporting previously established. Some
narcissism, and authoritarianism triggering personalized effective accountability measures that can be included are
and factors such as self-efficacy and self-esteem promoting watchful oversight from the board of directors, agreement
socialized charismatic behaviours (House and Howell, 1992; on financial and other decision making parameters, and
O’Connor et al., 1995). Others have suggested follower establishment of an effective system of checks and balances
characteristics (e.g., self-concept clarity and identity (Chandler, 2009). Leaders who are held accountable are
orientation) to shape the socialized or personalized relations more likely to take into account the larger consequences of
followers form with their charismatic leaders (Howell and their behaviour and also more likely to make considerations
Shamir, 2005; Weierter, 1997). It would be worth examining for the interest of the organisation and its members.
other antecedents to distinguish the specific origins of leaders’ Yet another safeguard that can be put in place is to have a
socialized versus personalized charismatic behaviour. Also, viable support system for the leader. The nature of leadership
given that negative behaviour has been shown to spread is such that it tends to isolate the leader from the others and
 16 International Journal on Leadership Volume 1 Issue 2 October 2013

the lack of an effective support system can further contribute advancement and interest. Having said that the introduction
to the demise of otherwise successful leaders (Chandler, of certain safeguards in selection and tenure can enhance the
2009). A viable support system might include having positive contribution of a charismatic leader— and minimize
personal confidantes, mentoring, participating in formal and the negative effects. These safeguards need to address the
informal training, and also having personal and professional accountability structure, the support system and the selection
development opportunities. Some of the benefits of this process which surround the leader.
social support are that it strengthens emotional reserves,
Finally, the author does not mean to suggest that charismatic
helps to have a balanced perspective, and also offers an
leadership isn’t effective because its effectiveness is well
outlet for self-expression outside of the organisational
supported by research and examples. The point made is a
setting (Winnubst, 1993). It is also known to contribute to
charismatic leader isn’t always the answer. It is true that a
emotional health and appropriate self-image.
company with a charismatic leader at the helm is more likely
One safeguard is to have in place a selection process that is to be successful but that success also depends to a large
able to help with the differentiation of socialized charismatic extent on the situation and on the leader’s vision.
leaders and personalized charismatic leaders. Socialized
In brief, charisma can be both distracting and destructive.
charismatic leaders have a socialized power motivation
With the use of technology and science it is now possible for us
which integrates humility as well as egotism. Such leaders
to systematize many serendipitous practices (e.g., shopping,
engage in the behaviours of visualizing, energizing, enabling,
marketing, hiring, etc.). If we are to take a more mature and
and empowering organisational members (Humphreys et
advanced version of politics it will need a charisma detox —
al., 2010). Finding ways to enhance the capabilities of the
for leadership is not a game. The aim of the paper is not to
organisation and its members is important to such leaders.
argue that charisma is inherently problematic, charismatic
A socialized charismatic leader is also more likely to
leadership has its benefits. If your company is heading in the
create an organisational culture which is unrestricted, non-
right direction, a charismatic leader will get you there faster.
exploitative, and altruistic. Understanding this is crucial
Unfortunately, if you’re heading in the wrong direction,
in setting up effective procedures to identify potentially
charisma will also get you there faster.
destructive individuals in the leader selection process.
This can be done by including assessments of need for
power, negative life themes and also personality traits like R���r�nc��
narcissism. Other useful assessments would relate to selfish
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