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Leadership in Organizational Settings

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Chapter 12 - Leadership in Organizational Settings

1. Why do company boards tend to hire charismatic CEOs?

I think the charismatic leader is a person who has a universal vision of the world business. And this concept is an extension of the theory of attribution. Studies on charismatic leadership have turned in their most part, to identify those behaviors that differentiate charismatic leaders of their non-charismatic. Among their findings, they propose that charismatic leaders are idealizing goals that they want to achieve. Also, they have a strong personal commitment to their goal as well as are perceived as unconventional, assertive and confident.

Recent attention has been focused on trying to determine how charismatic leaders have been causing influences in their followers. The leader communicates high performance expectations and expresses the confidence that fans will achieve. This increases self-esteem and assertiveness to the follower. The leader transmits, through words and actions, a new set of values and, by their conduct, set an example of followers to imitate.

The charismatic leadership may not always be necessary to achieve high levels of employee performance. It would be more appropriate when the task of the tracker had an ideological component. This could explain why, when charismatic leaders emerge, is more likely to occur in politics, religion, wartime or when a company is introducing a radically new product or facing a crisis that threatens its existence. Such conditions have to involve ideological interests.

Since then the overwhelming self-confidence, the charismatic leader often becomes a disadvantage. He or she is unable to listen to others, not comfortable when challenged by subordinates aggressive and begins to develop an unjustifiable belief of "certainty" on the issues.

2. What can corporate boards do to minimize the

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