Search results

Using five categories summarized by Bass (1990), this chapter attempts to address three key questions about charismatic leadership:

• (1)

  What are the key behavioral dimensions of charismatic leadership?

• (2)

  How does charismatic leadership differ from other forms of leadership?

• (3)

  Who may become followers of charismatic leaders and when do they become followers?

What are the key behavioral dimensions of charismatic leadership?

How does charismatic leadership differ from other forms of leadership?

Who may become followers of charismatic leaders and when do they become followers?

By focusing on Weber’s original view of charisma, we suggest that his three dimensions of charismatic leader behaviors underlie most contemporary approaches. By considering these three dimensions in more detail, we demonstrate how this view allows for different views of leadership and is distinguishable from management. Finally, by extending Weber’s view and by identifying two types of charismatic leaders who differ in their power motives, we suggest how the characteristics of followers and the context influence followers’ acceptance of charismatic leaders as legitimate. Some implications for leadership effectiveness are discussed.

Crisis management (CM) has gained prominence in the last decades, as the complex global business environment has forced executives to pay attention to practices that may safeguard organizations against potential crises. However, despite the fact that various scholars point to the need for autonomy and delegation of authority when responding to crises, it appears that the overarching rationale in the crisis literature is geared toward a centralized approach. This suggests that preventive actions and response to crises lie mainly with the leader of the organization and with designated crises teams. It is also apparent that this literature places too much weight on contingency plans and classification schemes. Although behavioral factors have been discussed by some authors as a fundamental element in dealing with crises, it is not clear how to develop these traits. It is our contention then that these conventional perspectives, although valuable to CM, are insufficient to deal with the uncertainty that characterizes global business today where firms must be prepared for the unexpected. We discuss the limitations of this traditional approach and argue for a combination of central control with decentralized execution when responding to unexpected crises situations. This enables management to better comprehend the complexity embedded in any crisis and allows adaptive practices to emerge throughout the organization. An analysis of two cases paired with empirical field studies support our proposition.

While there is growing recognition of the role of leaders as managers of meanings, leadership theories have so far focused primarily on the articulation of a positive vision, the framing of organizational issues as opportunities, and emphasizing potential gains and benefits for the organization and its members. However, these positive frames may not be equally valid under all circumstances and with respect to all issues. This chapter concentrates on exploring leadership as management of meanings in times of crisis and recovery, when leaders attempt to stop deterioration, turn the organization around, and lead it to recovery. We label this leadership approach prevention-oriented leadership. On the basis of an analysis of a series of weekly e-mail letters sent by the CEO of a large company to all organizational members over a period of 22 months we suggest that prevention-oriented leaders may use three related ways to manage meanings, namely (1) generating a clear picture of the negative challenge, (2) strengthening the organizational members’ self-efficacy and confidence in the organization's resources available for coping with the crisis, and (3) creating a sense of progress.

This case study analyzes Countrywide Financial’s responses to its recent financial crisis and illustrates the use of communication theory and image restoration strategies by utilizing several crisis response frameworks. The study uses a critical analysis methodology to examine the communication strategies employed by Countrywide, a large mortgage lending company in order to attempt to restore its image. The authors look at excerpts from media stories, carefully examine the language used by company representatives in response to the banking crisis, and categorize the corporate communications into various strategies as defined in the crisis communication literature. Countrywide faced several crisis situations during the period of this study, including the subprime mortgage crisis, public criticism of its CEO’s executive compensation package, allegations of insider trading, and financial difficulties. Corporate responses are critical in determining what amount of damage is done to the firm’s image during a crisis. Countrywide responded to these situations most often using the strategies of image bolstering, reducing the credibility of its accuser, and minimizing the crisis (Benoit, 1995). Through these communications, the company attempted to appear well established and untarnished. It also criticized the media, the courts, and the regulators in an attempt to reduce their credibility. Countrywide made no deliberate attempt to admit fault or to take measures to prevent the problem from reoccurring.

The phenomenon of crisis – of all kinds and at all levels – provides abundant material for study in disciplines centered on the human being. The twentieth century’s complex landscape provides valuable elements for developing a “morphology of crisis,” where crises of all types can be identified, including personal, family, social, economic, ethical, scientific, philosophical, and historical ones. The broad range of crises that exists today requires further study to better understand the concept, and Reinhart Koselleck offered perhaps the most significant interpretative keys for such a task. In his work, Critique and Crisis (1954), Koselleck developed a particularly lucid theory of crisis. His vast historical erudition, steeped in a philosophical quest, offers contemporary readers an approach to the issue of crisis, elucidating its most relevant requirements and challenges.

This chapter studies the historical use of the word crisis, aiming to better understand both the term and whether or not it preserves the concept’s invariable foundation and transversal elements, namely the experience of time as a turning point between the past and future, the need for judgment to guide the development of a particular situation, and a decision that gives shape to a new state of affairs.

This analysis is not just limited to understanding Koselleck’s account of the crisis concept; it also tests and addresses its internal structure. The description of the diversity of crisis phenomena at the beginning supports assessment of the illuminating power of Koselleck’s concept of crisis.

The diffusion and adoption (D&A) of innovation propels today's technological landscape. Crisis situations, real or perceived, motivate communities of people to take action to adopt and diffuse innovation. The D&A of innovation is an inherently human activity; yet, artificially intelligent techniques can assist humans in six different ways, especially when operating in fifth generation ecosystems that are emergent, complex, and adaptive in nature.

Humans can use artificial intelligence (AI) to match solutions to problems, design for diffusion, identify key roles in social networks, reveal unintended consequences, recommend pathways for scaling that include the effects of policy, and identify trends for fast-follower strategies. The stability of the data that artificially intelligent systems rely upon will challenge performance; nevertheless, the research in this area has positioned several promising techniques where classically narrow AI systems can assist humans. As a result, human and machine interaction can accelerate the D&A of technological innovation to respond to crisis situations.