The Impact of Charismatic Leadership on Organisational Transformation

CoachHub · 10 January 2023 · 6 min read

There are different leadership styles that are utilised in different organisations. One of the most common ones is charismatic leadership. Over the course of time, charismatic leaders have been significant in evoking feelings of passion in people that inspire them to push for change.

In an organisation, charismatic leadership can also be used to motivate workers to achieve the goals of the company. However, when not done right, it could be ineffective. It is important to use the right tools and leadership styles to ensure that an organisation’s goals are reached in the long run.

What is charismatic leadership?

Charismatic leadership is a leadership style that uses charm, persuasiveness, trust, and interpersonal connection to motivate the people in the workplace.

Charismatic leaders aim to motivate the people they work with to achieve a common goal. They inspire their teams by forming a connection with their emotions to create deep levels of trust and passion that motivates them to strive towards their goal. Charismatic leadership is different from other popular leadership styles because it places importance on the relationships between leaders and team members, especially the nature of the interactions between them.

In history, charismatic leaders are leaders who have the personal ability to evoke strong feelings of passion in their followers. They are able to inspire loyalty and devotion, increasing the desire of their followers to carry out the leaders’ will without hesitation. Charismatic leaders have often been effective in bringing about change to existing social orders.

Many early studies on charismatic leadership refer to charismatic leaders as those who can create emotional responses in followers that makes them enthusiastic to obey and display loyalty and devotion towards the leader. These types of leaders utilise self-confidence to motivate followers to work and achieve a higher goal.


The benefits of charismatic leadership

Charismatic leadership has a lot of benefits for a company that utilises it properly. This is because charismatic leaders have a way of evoking feelings of loyalty and passion in the people they work with.

Increased motivation and engagement of employees

Charismatic leadership can help to improve motivation among workers. One of the goals of charismatic leadership is to encourage workers to perform better at their jobs. By conveying feelings of passion and actively paying attention to employees, the likelihood of better performance increases in the organisation. Employees become more motivated to do their jobs and be more dedicated to their responsibilities. Because they are able to build good interpersonal relationships with employees, charismatic leaders can easily motivate and inspire the people they work with.

Improved communication and collaboration within the organisation

One of the reasons charismatic leaders are so effective I’d that they are good listeners. They gave a way of making people feel heard. When workers feel like their opinions matter within an organisation, it helps to improve communication among employees at all levels. This makes it easier for people to work together in spite of their differences. Charismatic leaders make it possible for staff and management to communicate better and pass important information that may be crucial to the growth and development of the organisation.

Enhanced ability to inspire and influence others

The power of a charismatic leader lies in his ability to motivate and inspire the people he works with. In times of low motivation, charismatic leaders are essential to improve the overall morale of the workers in an organisation. They can motivate workers to perform better at their jobs and develop the zeal for self improvement. Charismatic leadership is important because they can push workers to work hard and do better.

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The potential drawbacks of charismatic leadership

Just as charismatic leadership has its advantages on an organisation, it could also have drawbacks if not properly managed.

The risk of overreliance on the leader

People may become excessively reliant on the leader. As time goes on, they may start to lose the ability to make concrete decisions for themselves, especially having gotten used to always looking to the leader for guidance. In the event of the leader’s absence, it becomes counterproductive. When not properly utilised, charismatic leadership could negatively affect worker’s abilities to make decisions.

The possibility of damaging the organisation if the leader becomes controversial or falls from favour

On the occasion that the leader starts to form opinions contrary to the goals of an organisation, it becomes difficult for cooperation to occur among workers. Conflicts of interest arise because workers have become dependent on the leadership of said person. If the leader falls from favour or is demoted, workers may find it difficult to adjust and work towards the organisation’s goals.

The potential for the leader to become arrogant or abusive

In an organisation, there are always power dynamics and there is always the possibility that power will be abused. With charismatic leadership, this risk increases. A charismatic leader with malicious intent could use the influence they hold to manipulate or abuse workers.

Digital coaching for charismatic leadership

There are always healthy ways of implementing charismatic leadership style within an organisation. However, you may need a little help.

Digital coaching provides the help and guidance leaders and employees need to navigate their relationship. Digital coaching can help leaders understand and enhance their charisma to lead workers better. It is especially useful for those who are new to leadership positions. Digital coaching can assist them in developing a positive charismatic leadership style that becomes beneficial for workers and the organisation.

Digital coaching is essential in any setting because it helps people access efficient coaching and guidance. It is especially useful for leaders who may not be able to access physical coaching due to their schedule or geographical location.

It is essential for leaders, both new and experienced, to go through coaching that enables them to become better at their responsibilities. While it may prove difficult for experienced leaders to learn new leadership methods, digital coaching makes it worthwhile in the long run because it helps to point out problem areas while helping the clients get better at things they are already good at.

How to cultivate charismatic leadership

Charismatic leadership can be learned and acquired. It is not necessarily something you are always born with. Proper coaching and guidance can help you become a better leader.

Identifying and developing one’s natural charisma

One way to become a charismatic leader is by identifying and playing to your strengths. By improving the natural qualities you possess that draw people to you, it becomes easier to lead and influence people in the organisation.  Playing to your strengths ensures that your leadership doesn’t seem forced.

Practising empathy and listening to others

One way of inspiring people is by listening to your team during conversations. Through open communication and empathy, you can understand your workers better. This makes it easier for team members to trust your leadership because they know that you have their best interest at heart.

Setting a clear vision and inspiring others to follow it

Charisma is important to leadership. Having a clear vision and goal makes it easy to inspire others. A clear vision improves your confidence and enthusiasm, which in turn motivates the people around you to work towards your goal.

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Examples of charismatic leaders

Charismatic leaders are important in different settings. Over time, there have been many charismatic leaders that have contributed greatly to society.

1. Steve Jobs

Steve Jobs had many qualities that made him a charismatic leader. His ability to combine the charisma and enthusiasm of a salesman, the passion of an evangelist and the determination of a poor child made it possible for him to excel at his position.

2. Dr. Martin Luther King Jr

Dr. King is easily one of the most charismatic leaders in history. Through his powerful oratory style, commitment and confident personality, he was able to create change in the world.


It is important to strike an important balance so as to lead responsibly and ethically. When done right, charismatic leadership can be a very efficient leadership style in a company. It motivates and inspires other workers in an organisation to pay attention to their duties and responsibilities.

Digital coaching can help you harness your charismatic leadership skills and yield benefits that help you and the company during an organisational transformation or through hard times.

Samuel Olawole
Samuel Olawole is a freelance copywriter and content writer who specializes in creating exciting content across a wide range of topics and industries. When he’s not writing, you can find him traveling or listening to good music.

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