Page 228 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes 3. Charismatic and Visionary Leadership: Charismatic leadership goes beyond transactional
and transformational leadership. Charisma is a “fire that ignites followers’ energy and
commitment, producing results above and beyond the call of duty”. The charismatic
leader has the ability to inspire and motivate people to do more than what they would
normally do, despite obstacles and personal sacrifice. Followers transcend their own self-
interests for the sake of the leader.
Charismatic leaders are often skilled in the art of visionary leadership. A vision is an
attractive, ideal future that is credible yet not readily attainable. Visionary leaders see
beyond current realities and help followers believe in a brighter future. They speak to the
hearts of their followers, letting them be part of something bigger than themselves. Thus,
visionary leaders have a strong vision for the future and can motivate others to help
realise it. They have an emotional impact on subordinates because they strongly believe
in the vision and can communicate it to others in a way that makes the vision real,
personal and meaningful to others.
When charismatic and visionary leaders respond to organisational problems, they can
have a powerful, positive influence on organisational performance.

Task Identify some leaders from the corporate world and comment on their style of
leadership.

12.3 Corporate Culture and Strategic Management

A company’s culture is manifested in the values and business principles that management
preaches and practices.

Example: Culture is manifested in:
1. Corporate stories
2. Attitudes and behaviours of employees
3. Core values

4. Organisation’s politics
5. Approaches to people management and problem solving
6. Relationships with stakeholders; and
7. Atmosphere that permeates its work environment

An organisation’s culture is similar to an individual’s personality. Just as an individual’s
personality influences the behaviour of an individual, the shared assumptions (beliefs and
values) among a firm’s members influence the opinions and actions within that firm.
Quite often, the elements of company culture originate with a founder or other early influential
leader who articulates the values, beliefs and principles to which the company should adhere.
These elements then get incorporated into company policies, a creed or value statement, strategies

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