The Exploring Of Charismatic And Transformational Leadership

Introduction

“Effective team leadership is one of the most influential factors in developing high-performance teams. Over the past decade, both organizations and researchers have begun to move away from viewing leadership in terms of traditional hierarchical formal roles. Organizations today are deconstructing these outdated models of leadership, and are being reinvented to operate as flatter networks of teams cooperating to keep pace with unpredictable, fluid challenges”(Charles P.R. Scott , Hairong Jiang, Jessica L.Wildman, Richard Griffith, 2017). Human resource management (HRM or HR) is a strategic approach to effectively manage people in a company or organization to help their business gain a competitive advantage. It aims to maximize employee performance to serve the employer's strategic objectives (Johnason, P. 2009). Obviously, both act on the organization and pursue higher performance. Yukl (1999) argues that transformational and charismatic leadership theories are related to the essence of effective leadership. And effective team leadership significantly influence performance of human resource management. This essay explores charismatic leadership and transformational leadership to what extent this has been positive or negative for human resource management areas such as employee-benefits design, employ, training and development, performance and rewards, and focus on the relationship between performance and two leadership theories.

Charismatic leadership for performance of human resource management

What is charismatic leadership

Charisma is a spiritual force or personal quality that gives the individual influence or authority over the majority. Charismatic leadership is the public and members of the organization tend to obey those charismatic people who can satisfy their wishes or expectations, and follow their vision or direction actively. There is some ambiguity about the meaning of charismatic leadership, which depends on how people define it. The original theory of charismatic leadership describes how followers attribute charisma to leaders. Over the years, some scholars have modified and expanded this theory to define charismatic leaders in organizations (Yukl, 2017). Conger and Kangono (1988) presented theories that illuminate charismatic leadership from the theoretical point of view. A leader with a charisma can blame him for anything he can do because he can push things hard. The charismatic leadership theory emphasizes the heroism and excellence of the leader among the leadership attribution theory. House (1977) developed a theory of how charismatic leaders behave in a way, how they differ from ordinary people, and in what situations charismatic leaders emerge. These theories describe the influence of leaders on followers and the charismatic leadership of the emerging leader-follower relationship type.

Effect of performance

The core behavior of charismatic leadership differs from the old version of the same theory to the new version. “The key behaviors in the House (1977) and Shamir et al. (1993) theories include articulating an appealing vision, emphasizing ideological aspects of the work, communicating high performance expectations, expressing confidence that subordinates can attain them, showing self confidence, modeling exemplary behavior, and emphasizing collective identity.” (Yukl, 2017). It discussed the charismatic leader motivate employees to achieve high performance. They can make decisions quickly and with determination and confidence. Their styles are most closely related to executives and CEOs. Furthermore, Charismatic leaders can also improve the effectiveness of encouraging human resources practice (McClean, 2019). Ways to improve motivation include providing feedback and performance evaluation to employees to actively strengthen desired behavior, providing incentives based on organizational performance, and creating social opportunities for employees to create greater connections to the organization. For example, Xiaomi's CEO Lei Jun is a charismatic leader. Besides, he often interacts with netizens on the SNS to make him highly popularity. He adopts a fully authorized flat organization management, and cancels the KPI(Key Performance Indicator) and uses KSF(Key Success Factors) to motivate employees. It was Shamir (1993) who mentioned that charismatic CEOs of small companies reinforce the importance of achieving organizational goals and doing the best for the organization through personal interaction with employees. This shows that how charismatic leader affect the company and employees high-performance.

However, even a charismatic leader does not consider for employees , without interact and respect, also over-expression of its authority may lead the company can not achieve the expected performance return. It is especially important for leaders and employees to understand each other and develop respect relationships. For instance, John Sculley was once the CEO of PepsiCo who are famous and highest salary manager in Silicon Valley. In 1983, he was hired as CEO of Apple to create high performance in the short term. However, he continued to push his sales strategy despite the opposition of the founders and employees, resulting in a decline in performance and leaving. If he was able to follow the company's basic sales framework and actively communicate with employees, it would not be the result. Therefore, strong charismatic leadership sometimes has a negative impact on the company's performance.

Transformational leadership for performance of human resource management

What is transformational leadership

Transformational leadership is that transforms individuals, groups, and organizations into desirable directions by changing members' values, emotions, and behavioral norms. “The version of transformational leadership theory that has generated the most research was formulated by Bass and his colleagues (Bass, 1985, 1996)” (Yukl, 1999). Transformational leadership is a leadership style in which leaders encourage and motivate employees to innovate and create changes that help develop and shape the company's future success. This is done by setting an example at work, through a strong sense of corporate culture, employee ownership and workplace independence.

Effect of performance

Transformational leadership means that leaders recognize the importance of their responsibilities and tasks through fascination, charisma, intellectual stimulation and personalized care, so as to stimulate their higher level of needs, so that they can maximize their exploration. Their own potential to achieve the highest level of performance. Human resource management plays a key role in the communication between leaders and organization members because without human resource management staffing, training and communication, leaders' vision cannot be effectively communicated. In order to realize the vision, leaders must rely on human resource management to help employees be motivated. Leaders need to provide direction and empower employees to participate into set a vision. In addition, transformational leaders' personalized consideration of their employees' needs may prompt them to create human capital enhanced HRM practices to motivate followers (Zhu, et al., 2005). For instance, in 1997, when Jobs regained control of Apple, the Internet boom had arisen. Jobs is keenly aware of the business opportunities embedded in the Internet boom. At the same time, it began to drastically reform Apple's management system. In this context, Apple has run a human resource management system on the intranet to replace the cumbersome written registration system and achieved remarkable results. With the global expansion of the business, Apple began to use the Internet for human resource management, thus enabling the network of human resources management worldwide. There is no doubt that Steve Jobs is an outstanding transformational leader. He promotes the performance of not only the team and the company but also affects a generation with his own powerful transformation.

However, transformational leadership can have implications for followers or the organization. Stephens, D’Intino, and Victor (1995) contend that transformational leadership theory, like other theories that emphasize the role of leadership in increasing task motivation and performance, is biased toward favoring some stakeholders (high-level management, owners, customers) at the expense of others (most are the member of organization) Yukl (1999). Indeed, the ideas and plans put forward by some transformational leaders are too radical to make everyone follow and proceed, which requires them to win the support of some stakeholders. For example, if the CEOs wants to implement major reforms, they must pass the consent of the shareholders and fully communicate with other senior managers. Sometimes the CEO has to reach some kind of consensus with these stakeholders in this process, and it may harm the interests of most employees. Yukl (1999) also mentioned that the role of leadership in motivation and performance is similar to other theories, so transformational leadership theory may be beneficial to individual stakeholders. In short, ignoring interaction and communication with employees will reduce collective identity and lead to brain drain and human resource crisis. Without effective performance evaluation and rewards, it will threaten the human resource management system, and transformational leaders will also be difficult. Make a transformation.

Conclusion

It is evident that charismatic and transformational leadership theory is closely related to both high performance and human resource management. Through evaluation, it can be found that effective team leader can significantly affect the high performance of human resource management, but sometimes it will bring some negative effects. Moreover, the two leadership theories have certain similarities in the relevance of human resource management. First is the pursuit of high performance, and second is that both of them need leaders with high charisma. High-level human resources and charismatic leadership are positively correlated with higher corporate performance, which requires not only charismatic leadership, but also attention to the importance of human resources practice. Transformational leaders enhance human resource management practices to motivate followers, which will promote the sound development of the organization, while excessive pursuit of transformation will ignore the feelings of employees.

01 August 2022
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