TECHNICAL UNIVERSITY OF MOMBASA

SCHOOL OF BUSINESS

DEPARTMENT OF ACCOUNTING AND FINANCE

BACHELOR OF COMMERCE

UNIT: LEADERSHIP AND GOVERNANCE

UNIT CODE: BDS 4231

ASSIGNMENT ON: EXPLAIN THE FOLLOWING LEADERSHIP STYLES

i. CHARISMATIC LEADERSHIP STYLE

ii. TRANSACTIONAL LEADERSHIP STYLE

SUBMITTED TO: RATANYA

FROM: GROUP FIVE

STUDENT NAME REG NO

KHAMISA SALIM ABDULRAHMAN BCOM/225J/2017
SHEM WAMBUGU BCOM/231J/2017
WEKESA M KEVIN BCOM/262J/2017
KEVIN KIBET NGETICH BCOM/276J/2017
ALLAN JUMA BCOM/285J/2017
EDWIN OTIENO OWITI BCOM/313J/2017
SALAT SAADIYA ALI BCOM/320J/2017
NAWAL AHMED ALJABRY BCOM/0583/2017
OTIENO FIONA JOY BCOM/244J/2017
LIVINGSTONE OTIENO BCOM/319J/2017
FAITH GATHONI BCOM/237J/2017
 CHARISMATIC LEADERSHIP STYLE

Charisma has been referred to as "A fire that ignites follower's 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 they would normally do, despite obstacles and

personal sacrifice. Charismatic leaders are characterized by vision, Self-confidence, impression,

management skills, creating confidence and high expectations for subordinates, social sensitivity

and empathy, and the use of personal example.

Charismatic leaders include Mother Teresa, Martin Luther King Jr., Barrack Obama & Steve

Jobs. Charisma can be used for both, Positive outcomes that benefit the group as well as

destructive and self-serving purposes like some of terrorists.

Charismatic leader’s characteristics

1. Communication – this helps to motivate employees through tough times and also

help them stay grounded when things are good.

2. Maturity – charismatic leaders has maturity character in that, they don’t believe

in showmanship, but they draw on their wisdom and knowledge which they have

accumulated over the years of life and business experiences.

3. Listening skills – a charismatic leader pays attention to what is being said and

listens with interest.

4. Confidence – charismatic leaders are secure and confident enough to be

comfortable in their own skin.

5. Humility – charismatic leaders place a lot of value on each employee and have the

ability to truly listen to their concerns and show them how their contributions

impact the strategic interests of the company.

Charismatic leadership pros

 Charismatic leaders inspire people to work together for a common cause.

 Firms are committed to a central mission.

 Management prioritizes learning from mistakes in an effort to succeed in

their mission.

 Charismatic-led companies tend to be cohesive because their workers have

a clear purpose.

Charismatic leadership cons

 Leaders may develop tunnel vision or arrogance undoing their previous

good deeds.

 Firms can become dependent on charismatic leaders and may suffer if he or

she retires, leave the firm or dies suddenly.

 Charismatic leaders sometimes become unresponsive to their subordinates.

 These leaders may believe they are above the law, committing financial or

ethical violations.

TRANSACTIONAL LEADERSHIP STYLE

Transactional leaders are more concerned with maintaining the normal flow

of operations. They use disciplinary power and an array of incentives to

motivate employees to perform at their best.

 They also emphasize results, stay within the existing structure of an

organization and measures success according to that firm’s system of

rewards and penalties.

Characteristics of transactional leaders

1. Extrinsic motivation – a transactional leader aims to elicit desired

performance from the team by motivating them externally.

Employees are rewarded for behaving in expected manner and

punished for any deviation.

2. Resistant to change – the leader wants everything to remain strictly

as they are and do not believe in improving working conditions to

make things better.

3. Discourage independent thinking – these leaders don’t encourage

employees to be creative. This is because the leader is not innovative

and believes that things are good as they are.

4. Passive – the leader focuses on maintaining status quo. He tends to

only react to things that happen and doesn’t take proactive steps to

prevent problems.

5. Practicality – their approach to solving problems is one of

pragmatism and they take all realistic constraints and opportunities

into account.

Transactional leadership pros

 Awards those who are motivated by self-interest to follow instructions.

 Gives an unambiguous structure for large firms, system requiring repetitive tasks

and infinitely reproducible environments.

 Achieves short term goals quickly because they focus on short -term goals.

 Rewards and penalties are defined for workers.

Transactional leadership cons

 Rewards the worker on a practical level only such as money or perks.

 Creativity is limited since the goals and objectives are already set.

 Doesn’t reward personal initiative.

REFERENCES

1. Ronald E. Riggio, PhD, What is charisma and charismatic leadership?,

Psychology Today

2. Yscouts.com