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SEARCH tel. +44 (0)203 031 2900 CHALLENGE US MY FAVOURITES ACCOUNT LOG OUT HOME ABOUT IDEAS LIBRARY IDEAS BY INSTITUTIONS Home Ideas Library Leaders' Charisma, Team Performance and Organizational Change 10.13007/303 Ideas for Leaders #303 Leaders' Charisma, Team Performance and Organizational Change Key Concept If a leader has charisma, he/she is said to be more likely to achieve better team performance. But what exactly is it that makes a leader seem charismatic, and why does this have an effect on performance outcomes? In this Idea, these questions are explored, and the behaviours that enhance the perception of charisma are outlined. Idea Summary ‘Charismatic leadership’ has received much attention from researchers over the past few decades, lending support to theories that it is capable of fostering higher levels of employee and team performance in organizations. The term was first used in the 1940s by German sociologist Max Weber, who envisioned ‘charismatic leaders’ as leaders able to inspire passionate support from followers through exceptional, almost mystical, powers. When asked to name a charismatic leader, people often cite the likes of Nelson Mandela, Steve Jobs and Anita Roddick. But what exactly is it that makes followers perceive a leader as being charismatic? Can specific leadership behaviours explain why followers view some leaders as charismatic over others, particularly in times of change? In a study led by Christoph Nohe (with co-authors including Judge Business School’s Jochen Menges), this question was put to the test using a survey data from a large German railway company. Thirty-three leaders and 142 team members (i.e. followers) from the company completed a web-based survey, whilst it was undergoing a major crisis and a company-wide restructuring process. During this time, the company had made various cuts, including in the number of managing departments, and had confronted employees with new technologies. They found that a leader's change-promoting behaviours were positively associated with followers' perceptions that the leader has charisma. In addition, they also found that if a follower perceives a leader as charismatic, he/she is more likely to be committed to change, which is in turn associated with overall team performance. The latter in particular sheds light on the dynamic relationship between individual team members and the team as a whole, demonstrating that individual-level variables can have a strong impact on overall group-level outcomes. It is this individual-level commitment that forms the link between perceived leader charisma and better performing teams. Authors Nohe, Christoph Michaelis, Björn Menges, Jochen I. Zhang, Zhen Sontag, Karlheinz Institutions University of Heidelberg Goethe University Frankfurt University of Cambridge Judge Business School Arizona State University Source The Leadership Quarterly Idea conceived April 2013 Idea posted January 2014 DOI number Subject Change Management Interpersonal Skills Leadership Performance Management Organizational Behaviour
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Page 1: Leaders' Charisma, Team Performance and Organizational Change · Charisma and Organizational Change: A Multilevel Study of Perceived Charisma, Commitment to Change, and Team Performance.

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10.13007/303

Ideas for Leaders #303

Leaders' Charisma, Team Performance

and Organizational Change

Key Concept

If a leader has charisma, he/she is said to be more likely to achieve better

team performance. But what exactly is it that makes a leader seem

charismatic, and why does this have an effect on performance outcomes? In

this Idea, these questions are explored, and the behaviours that enhance the

perception of charisma are outlined.

Idea Summary

‘Charismatic leadership’ has received much attention from researchers over

the past few decades, lending support to theories that it is capable of

fostering higher levels of employee and team performance in organizations.

The term was first used in the 1940s by German sociologist Max Weber, who

envisioned ‘charismatic leaders’ as leaders able to inspire passionate support

from followers through exceptional, almost mystical, powers. When asked to

name a charismatic leader, people often cite the likes of Nelson Mandela,

Steve Jobs and Anita Roddick.

But what exactly is it that makes followers perceive a leader as being

charismatic? Can specific leadership behaviours explain why followers view

some leaders as charismatic over others, particularly in times of change?

In a study led by Christoph Nohe (with co-authors including Judge Business

School’s Jochen Menges), this question was put to the test using a survey

data from a large German railway company. Thirty-three leaders and 142

team members (i.e. followers) from the company completed a web-based

survey, whilst it was undergoing a major crisis and a company-wide

restructuring process. During this time, the company had made various cuts,

including in the number of managing departments, and had confronted

employees with new technologies.

They found that a leader's change-promoting behaviours were positively

associated with followers' perceptions that the leader has charisma. In

addition, they also found that if a follower perceives a leader as charismatic,

he/she is more likely to be committed to change, which is in turn associated

with overall team performance.

The latter in particular sheds light on the dynamic relationship between

individual team members and the team as a whole, demonstrating that

individual-level variables can have a strong impact on overall group-level

outcomes. It is this individual-level commitment that forms the link between

perceived leader charisma and better performing teams.

Authors

Nohe, Christoph

Michaelis, Björn

Menges, Jochen I.

Zhang, Zhen

Sontag, Karlheinz

Institutions

University of Heidelberg

Goethe University Frankfurt

University of Cambridge Judge Business

School

Arizona State University

Source

The Leadership Quarterly

Idea conceived

April 2013

Idea posted

January 2014

DOI number

Subject

Change Management

Interpersonal Skills

Leadership

Performance Management

Organizational Behaviour

Page 2: Leaders' Charisma, Team Performance and Organizational Change · Charisma and Organizational Change: A Multilevel Study of Perceived Charisma, Commitment to Change, and Team Performance.

Business Application

As leaders play a crucial role in managing organizational change, Nohe et al’s

research is useful for highlighting the specific types of behaviours that can

ultimately result in better performance. In times of change, such an outcome is

even more crucial and desirable.

According to their findings, leaders who are not seen to display behaviours

that support change will fail to be seen as charismatic by their followers;

therefore, they will also potentially achieve lower team performance. This is

because followers that individually perceive their leaders as charismatic are

more likely to become committed to change.

As such, leaders should ensure they are well-trained in change-promoting

behaviours, and organizations should provide opportunity for leaders to

display those behaviours, especially in ways that followers may observe.

Essentially, these behaviours must include efforts to promote and support

change effectively, and can range from empowerment through involvement,

making it clear that the change is really necessary, depicting the future, and

generally being sensitive to followers' needs.

Though in this particular study the firm analyzed was undergoing change, the

findings are applicable even in stable periods; organizations wishing to benefit

from charismatic leadership during future change should seek to recruit and

retain leaders who are able to engage in charismatic leadership and change-

promoting behaviours.

Further Reading

Charisma and Organizational Change: A Multilevel Study of Perceived

Charisma, Commitment to Change, and Team Performance. Christoph

Nohe, Björn Michaelis, Jochen I. Menges, Zhen Zhang & Karlheinz

Sontag. The Leadership Quarterly (April 2013).

Further Relevant Resources

Christoph Nohe’s profile at the University of Heidelberg

Björn Michaelis’s profile at Goethe University Frankfurt

Jochen I. Menges’s profile at Cambridge Judge Business School

Zhen Zhang’s profile at Arizona State University

Karlheinz Sontag’s profile at the University of Heidelberg

Cambridge Judge Business School Executive Education profile at IEDP

© Copyright IEDP Ideas for Leaders 2014

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Page 3: Leaders' Charisma, Team Performance and Organizational Change · Charisma and Organizational Change: A Multilevel Study of Perceived Charisma, Commitment to Change, and Team Performance.

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