ABSTRACT
Charismatic leadership theory extends the scope of Path-Goal Theory by illustrating that it is not only the facilitation of the follower's goal by the leader that is important. Consequently, much theoretical work in the field of charismatic leadership centres upon the differentiation of the personalized from the socialized charismatic leader, the ramifications of which carry important significance for both organizational success and societal well-being. An expert insight profiling the Managing Director of a leading investment bank tells the people what happens "When leadership fails", while a case study of legendary investor and pro-Democracy philanthropist George Soros allows the reader to apply theory to practice. Charismatic leadership was reported to be most successful in times of uncertainty, as the vision and direction of the charismatic leader appears to create a source of psychological comfort for followers. Charismatic leadership scholars have consistently asserted that vision creation, articulation and communication are the most important factors in predicting leadership effectiveness.
