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View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by UGD Academic Repository (JPMNT) Journal of Process Management – New Technologies, International Vol. 3, No.2, 2015. CHARISMATIC LEADERSHIP AND POWER: USING THE POWER OF CHARISMA FOR BETTER LEADERSHIP IN THE ENTERPRISES Prof. KRUME NIKOLOSKI PhD Faculty of Economics - Stip, Republic of Macedonia e-mail: krume.nikoloski@ugd.edu.mk Abstract: The role of the leader is to work with the ethical behavior of the charismatic people through his cooperates in order to achieve the leader. Perhaps the most suitable positions goals of the organization. For that aim, he has to for analyzing the power of charismatic understand the human behavior and to be capable of leader are critical theory and post communication, in order to motivate the lead other modernistic view of power. Charisma has peoples. The function of management consists of the capability to influence the behavior of individuals different sources and any attempt to pin it and groups on their work. Today's global business down to a specific set of human qualities conditions expressed through strong and relentless would be futile. And charisma is not only market competition, technological, information and about words, ideals and getting elected. It communication advances and changing consumer can get things done and it is good for behavior, are making difficult the market fight of small and medium enterprises (SMEs). In such business, particularly in the long term. In a difficult conditions for business operation, tangible current study, we are looking at more than resources (financial, technological, physical and 100 firms over seven years to see how a organizational) are increasingly losing their primacy change in the chief executive affects compared to the invisible (human resources, company performance. We are finding that innovation, reputation) ones. Among invisible, human resources are becoming more important for chief executives who have the capacity to the survival, growth and development of these be charismatic and who have the capacity enterprises. In order to be a major source of for self-control when it comes to using their competitive advantage, human resources need to be power have the highest return on assets and proactively managed. These points out the need for are also more socially and environmentally a leader with charisma, knowledge, skills and abilities in order to lead the employees in achieving responsible. Many studies have shown that the mission, vision and goals of the enterprise. In the ethical orientation of the leader is this point of view, charismatic leader is one that has strongly related to follower job satisfaction influence, inspires, motivates and instills confidence and organizational commitment. among followers. The charismatic leader, thanks to Charismatic leaders who are high on ethical the characteristics that he possesses and which differ him from other leaders, is the key factor for the orientation have better workplace business success of SME. environments with reduced interpersonal and workplace deviance. This all makes Keywords: leader, charisma, power, influence, sense because leaders are role models; how ethics, competitive advantage, small and medium they act cascades through the organization. enterprises Charisma can be harnessed not only for economic ends; it can also be used to do 1. Introduction well and make organizations places where individuals can flourish. The more Charismatic leader use power over turbulent the economic situation, the more followers, but also his/her followers have individuals want to be led by a leader who power over the leader. So, this relation is can reassure them, give them hope and interactive by its nature. The ethics of point the bow in the right direction. charismatic leader is strongly a question of In this case, leader with charisma how to use power, i.e. how and in what emerges as an imperative for the manner. The aims and vehicles of leading competitiveness not only for large, but also are the main objects, when one evaluates for small and medium enterprises. The 18 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 3, No.2, 2015. challenges brought by globalization require 3. Endowment with the gift of divine better, faster and more efficient response of grace (Bernard M. Bass). all enterprises in order to preserve and 4. The process of influencing major enhance their competitive position. In this changes in the attitudes and regard, the employees, especially the assumptions of organization leader, have become a key source of members, and building commitment competitive advantage for enterprises. The for the organization’s objectives leader with charisma is the person who has (Gary A. Yukl). the ability to create a strong belief in his 5. Leadership that has a magnetic own vision among employees According to effect on people (James M. Kouzes our research, transformational leadership and Barry Z. Posner). and transactional leadership based on 6. In combination with individualized awards and praise have a positive impact on consideration, intellectual the effectiveness of the enterprise, while stimulation, and inspirational transactional leadership based on leadership, a component of preventive corrective measures or transformational leadership interventions after the occurrence of (Bernard M. Bass, cited in Kenneth deviations have a negative impact, E. Clark and Miriam B. Clark). especially in small and medium enterprises. This suggests the need for a gradual acceptance and implementation of 3. Charismatic leadership and transformational and charismatic ethical dimensions leadership to a greater extent by these enterprises. In such processes between the leaders and the led ethics and emotions are important. Applied business ethics, in its 2. Definitions of charisma and traditional form, seeks to "say and define" what kind of action Good Business Life is. charismatic leadership A tricky issue is that different ethical theories state different criteria, and thus The study of charisma and the difference give different and occasionally contradictory solutions to ethical problems. Applied business ethics can be used in the views of authors have given charisma role of a guardian in evaluating which kind different definitions. of charismatic leadership is "good" or 1. A certain quality of an individual "bad", or "right" or "wrong", when studying its effect on the followers and on society as personality by virtue of which he or a whole. But values are both born socially she is set apart from ordinary people and they die socially. There is no objective and treated as endowed with measure for value, and not only one right supernatural, superhuman, or at way of defining and explaining charisma. least specifically exceptional Traditional ethical theories are also rational powers or qualities (sexist language in the sense that they imply cutting off changed), ( Max Weber). emotions and the so-called irrational 2. A devotion to the specific and elements of the mind, or in general they do exceptional sanctity, heroism, or not focus on them. But certainly exemplary character of an charismatic leadership involving individual person and of the persuasion and rhetoric between the leaders normative patterns revealed or is emotionally charged. By contextualizing ordained by that person (Max it is possible to break the guardianship and Weber). 19 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 3, No.2, 2015. explore ethical issues in the field by others’ behavior to achieve goals in which showing the multiplicity and complexity in respect their freedom and point of view real-life occurrences of charismatic entirely. It enables the group (managers/ leadership employees) to work together in the process Business ethics is a controversial of development and exchange towards the issue, although it is seen as a vital part of vision of success and sustainability. everyday business life. The importance of John Kotter, professor of leadership ethics has usually been justified by at Harvard business school, has produced a suggesting that most people want to live in key work identifying the relationship a society in which justice and charity between modern leadership and the need prevail. Concern for business ethics is also for power. Entitled power and influence, a matter of practical life when the economic the book asserts that contemporary system is considered. The economic pressures are responsible for establishing systems can endure only if they operate in influencing skills as an imperative for those such a way that the majority of the people involved in leadership. As a result of the believe that at least some degree of justice increasing complexity of the social milieu prevails there. If the system lacks surrounding organizations, internal legitimacy, it is likely to fail. Conger and relationships have become more diverse, Kanungo (1998, 213) refer to Thomas and also more interdependent. Aquinas, according to whom the moral This increase in diversity and goodness of behaviors should be judged on interdependence has converted many the basis of the objective act itself, the individual contributor and management subjective motive of the actor, and the jobs into jobs that demand strong leadership context in which this act is performed. - that is, jobs that require jobholders to get Applying this to charismatic leadership, things done through others but do not there are three ethical dimensions: the provide control over all those others leader's motives, the leader´s influence (Kotter, 1985). These new jobs thus have strategies, and the leader's character something of a ‘power gap’ that must be formation. As further analyzed by Kanungo compensated for by the development of and Mendonca (1996), charismatic advanced skills of influence and leadership in its positive form is altruistic, persuasion. These skills will help leaders to influences in empowering ways, guide a varied set of employees, both emphasizes vision by changing followers' superiors and subordinates, towards desired core attitudes, beliefs and values, and goals. In order to achieve one’s goals, manifests needs that are self- leaders should focus on values because developmental. In negative forms there are values essentially make a leader by egoistic interests, control strategies, needs representing what one is leading (Kotter, for personal power, and emphasis on 1985). compliance behavior and identification Power and leadership are closely with the leader, that makes the charismatic related: while an individual can wield leadership unethical (Takala, 2007). power without being a leader, an individual cannot be a leader without power. Small- business managers can improve their leadership skills by understanding the sources of power and influence. According to Northhouse (2010), 4. Power versus influence the concept of power is related to leadership because it is part of the influence process. Nevertheless, lleadership, in Leadership is a power relationship that exists between leaders or followers. general, means the process of ‘influence’ in 20 www.japmnt.com (JPMNT) Journal of Process Management – New Technologies, International Vol. 3, No.2, 2015. Further, powner is often defined as the authority. This is the kind of power that potential ability of one person to influence enables a supervisor to influence others to carry out ordersor to do something subordinates with the use of rewards and they otherwise would not have done. Other punishments, allows a manager to issue definitions stress that power is the ability to orders and expect them to be obeyed. Hard achieve goals or outcomes that power power includes legitimate, reward, and holder’s desire. The achievement of desired coercive power, which are defined largely outcomes is the basis of the definition used by the organization’s policies and here. Power is the potential ability of one procedures. However, it is important to person in an organization to influence other remember that position power and people to bring about desired outcomes. It leadership is not the same thing. Effective is the potential to influence others within leaders don’t rely solely on the hard power the organization with the goal of attaining of their formal position to influence others. desired outcomes for power holders. Soft power includes expert power and Potential power is realized through the referent power, which are based on personal processes of politics and influence. characteristics and interpersonal Hard power is power that stems relationships more than on a position of largely from a person’s position of authority. Table 1 Soft and Hard Power TYPE OF BEHAVIOR SOURCES EXAMPLES POWER Soft Attract and coopt Inherent qualities Charisma Communications Persuasion, example Hard Threaten and induce Threats, intimidation. Promotions, Hire, fire, demote Payment, rewards compensation Source: Joseph S. Nye, Jr., (2006), Soft Power, Hard Power and Leadership In this case, influence refers to the some leaders are stronger in one than the effect a person’s actions have on the other. Balancing hard and soft leadership attitudes, values, beliefs, or actions of power requires self-awareness in the leader, others. Whereas power is the capacity to situational awareness and attention to the cause a change in a person, influence may needs of others and of the organization. Nye be thought of as the degree of actual identified two main hard power resources - change. For example, as a child you may coercion and inducement. The tools of have had the experience of playing a game those hard power resources include hiring, you didn’t really want to play because one firing, bullying, buying and bargaining. person in the group influenced others to do Research has shown that a calculated loss what he or she wanted. Or you may have of temper can be useful at times as it shakes changed your college major because of the people out of complacency and provides an influence of someone important in your life, adrenaline rush. Two other skills are closely or shifted your beliefs about some social related to hard power - organizational issue based on the influence of political or capacity and political skill. religious leaders. Hard and Soft Leadership Power Organizational capacity refers to the was noted by Joseph S. Nye of Harvard ability to manage the structures and University. As with all human behavior, reward systems of the organization to 21 www.japmnt.com
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