ABSTRACT
Charismatic leaders have extraordinary effects on their followers. Under their leadership that brings inspiration and a strong sense of values, followers often perform at higher levels. Transformational leaders are triggers of extraordinary organizational change. Under their leadership, organizations or political and social entities may undergo significant structural change. Charismatic and transformational leadership frequently have agents in common, but actually the two notions are distinct. Transformational researchers are more interested in executives, political leaders, and social leaders in relatively open systems. Such leaders function as the nexus between the external economic and political environment and the internal organizational environment, and they have to adjust the latter to conform to the former. Transactional researchers were originally highly influenced by economic perspectives, such as social exchange and expectancy theory. It examines transformational leadership theory, which frequently involves a charismatic leader, but is more organizationally based and less personality-based, although still considered change-oriented leadership.
