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THE INTERNATIONAL UNIVERSITY OF MANAGEMENT Walvis Bay-NAMIBIA Name: Andreas Hangula Student Number: 120009609 Course: Business Administration Assignment 2 Entrepreneurship Due Date: 29/05/2015 Charismatic leaders, According Max Weber defined charismatic authority as "resting on devotion to the exceptional sanctity, heroism or exemplary character of an individual. Charismatic authority is succeeded by a bureaucracy controlled by a rationally established authority or by a combination of traditional and bureaucratic authority. A religion which evolves its own priesthood and establishes a set of laws and rules is likely to lose its charismatic character and move towards another type of authority. For example, Muhammad, who had charismatic authority as "The Prophet" among his followers, was succeeded by the traditional authority and structure of Islam, a clear example of reutilisation. In politics, charismatic rule is often found in various authoritarian states, autocracies, dictatorships and theocracies. To help to maintain their charismatic authority, such regimes will often establish a vast personality cult. When the leader of such a state dies or leaves office, and a new charismatic leader does not appear, such a regime is likely to fall shortly thereafter, unless it has become fully routinized. Types of charismatic leaderships, Socialised charismatic a leader whom re-strength the use of power in order to benefits others and pursue goes that fulfill the need of group members and provide intellectual stimulate among the team members however this social capital leadership is based on community ship in an organization context and the leader forcus on engaging others to promote individual initiatives. Personalised charismatic leaders, A leader exercise few restraint on their use of power in order to serve their best interest and the leader will formulate, impose self-serving goals on followers. They will only offer support when it facilitates their own goals. Revelation, “In this case the legitimacy of the new leader is dependent on the legitimacy of the technique of selection." The technique of selection is the modus operandi of the selection process. In ancient times, oracles were believed to have special access to "divine judgment" and thus their technique in selection was perceived to be legitimate. Their choice was imbued with the charismatic authority that came with the oracle's endorsement. or Islamic Revolution by Khomeyni in Iran. Designation by original leader, In this form, the original holder of charismatic authority is perceived to have passed their authority to another. An excellent example is Joseph Stalin's claim that Vladimir Lenin had designated him to be his successor as leader of the USSR. Insofar as people believed in this claim, Slain gained Lenin's charismatic authority. Designated by qualified staff "A successor (may be designated) by the charismatically qualified administrative staff... his process should not be interpreted as 'election' or 'nomination'... It is not determined by merely a majority vote...Unanimity (is) often required." A case example of this form of succession is the papal conclave of cardinals to choose a new pope. The cardinals taking part in the papal conclave are viewed to be charismatically qualified by their Roman Catholic congregations and thus their choice is imbued with charismatic authority Hereditary charisma Charisma can be perceived as "a quality transmitted by heredity." This method of succession is present in Kim il Sung's charisma being passed on to his son, Kim Jong Il. This type of succession is a difficult undertaking and often results in a movement toward traditionalization and legalization in authority. Office charisma "The concept of charisma may be transmitted by ritual means from one bearer to another...It involves a dissociation of charisma from a particular individual, making it an objective, transferable entity." Priestly consecration is believed to be a modus through which priestly charisma to teach and perform other priestly duties is transferred to a person. In this way, priests inherit priestly charisma and are subsequently perceived by their congregations as having the charismatic authority that comes with the priesthood. However charismatic leaders gathes followers through dint of personality and charm, rather then any form of external power or authority as the searchlight of attention which is interesting to watch a Charismatic Leader 'working the room' as they move from person to person. They pay much attention to the person they are talking to at any one moment, making that person feel like they are, for that time, the most important person in the world. Charismatic Leaders pay a great deal of attention in scanning and reading their environment, and are good at picking up the moods and concerns of both individuals and larger audiences. They then will hone their actions and words to suit the situation. Pulling all of the strings Charismatic Leaders use a wide range of methods to manage their image and, if they are not naturally charismatic, may practice assiduously at developing their skills. They may engender trust through visible self-sacrifice and taking personal risks in the name of their beliefs. They will show great confidence in their followers. They are very persuasive and make very effective use of body language as well as verbal language. Deliberate charisma is played out in a theatrical sense, where the leader is 'playing to the house' to create a desired effect. They also make effective use of storytelling, including the use of symbolism and metaphor. The Charismatic Leader will typically attach themselves firmly to the identity of the group, such that to join the group is to become one with the leader. In doing so, they create an unchallengeable position for themselves. Alternative views The description above is purely based on charisma and takes into account varying moral positions. Other descriptions tend to assume a more benevolent approach. Conger & Kanungo (1998) describe five behavioral attributes of Charismatic Leaders that indicate a more transformational viewpoint: Vision and articulation; Sensitivity to the environment; Sensitivity to member needs; Personal risk taking; Performing unconventional behaviour. Musser (1987) notes that charismatic leaders seek to instil both commitment to ideological goals and also devotion to themselves. The extent to which either of these two goals is dominant depends on the underlying motivations and needs of the leader. The Charismatic Leader and the Transformational Leader can have many similarities, in that the Transformational Leader may well be charismatic. Their main difference is in their basic focus. Whereas the Transformational Leader has a basic focus of transforming the organization and, quite possibly, their followers, the Charismatic Leader may not want to change anything. Despite their charm and apparent concern, the Charismatic Leader may well be somewhat more concerned with themselves than anyone else. A typical experience with them is that whilst you are talking with them, it is like being bathed in a warm and pleasant glow, in which they are very convincing. Yet afterwards, ask the sunbeam of their attention is moved elsewhere, you may begin to question what they said (or even whether they said anything of significance at all). The values of the Charismatic Leader are highly significant. If they are well-intentioned towards others, they can elevate and transform an entire company. If they are selfish and Machiavellian, they can create cults and effectively rape the minds (and potentially the bodies) of the followers. Their self-belief is so high, they can easily believe that they are infallible, and hence lead their followers into an abyss, even when they have received adequate warning from others. The self-belief can also lead them into psychotic narcissism, where their self-absorption or need for admiration and worship can lead to their followers questioning their leadership. They may also be intolerant of challengers and their irreplaceability (intentional or otherwise) can mean that there are no successors when they leave. Transformational leader behaviors on organizational citizenship behaviors, and the potential mediating role played by subordinates' trust and satisfaction in that process. Measures of six transformational leader behaviors (Articulating a Vision, Providing an Appropriate Model, Fostering the Acceptance of Group Goals, High Performance Expectations, Individualized Support, and Intellectual Stimulation), one transactional leader behavior (Contingent Reward Behavior), employees' trust in their leader, and satisfaction were obtained from 988 exempt employees of a large petrochemical company. Matching evaluations of five citizenship behaviors of these employees (Altruism, Conscientiousness, Courtesy, Civic Virtue, and Sportsmanship) were obtained from their supervisors. In order to determine whether transformational behaviors augment the impact of transactional behaviors, their effects on followers' trust, satisfaction, and citizenship behaviors were examined in the context of the effect of transactional leader behaviors on these same variables. The results indicate that the effects of the transformational leader behaviors on citizenship behaviors are indirect, rather than direct, in that they are mediated by followers' trust in their leaders. Moreover, these results were found not to be wholly attributable to the effects of common method biases. Reference Max Weber Kim Jong Il Conger & Kanungo (1998) Islamic Revolution by Khomeyni in Iran.