Charismatic Leadership 101: Advantages, Disadvantages, and Differences

When you need to convince people, overcome resistance, or inspire action, there’s one leadership style that stands out among the rest: charismatic leadership style.

Charismatic leaders are charming, influential, dynamic, confident, and persuasive. They make their employees, leaders, coworkers, and customers feel like the goal at hand is achievable, even if they face an upwards battle.

While it may not be your dominant leadership style, every leader can learn something from and, at times, utilize the charismatic leadership style. That’s why the following article provides a definition of charismatic leadership, the advantages and disadvantages of the style, and a brief comparison between it and other common leadership styles.

What Is Charismatic Leadership Style?

Charismatic leadership is a leadership style defined by personal charm and the ability to inspire and motivate others. Charismatic leaders use persuasive communication, personal insights, and engaging personalities to lead teams and achieve goals.

By definition, the charismatic leadership style uses verbal and nonverbal communication to charm, influence, and persuade others to help them fulfill their mandate or see things as they do. This type of leader makes those around them believe that they can achieve any goal or milestone, even in the face of adversity. They do this by displaying a positive attitude, showing empathy, telling stories, using humor, reading people, and working a room.

What Is Charismatic Authority?

Charismatic authority refers to leadership power derived from individual's personal charisma, rather than from formal positions or roles.

Who Is a Charismatic Leader?

A charismatic leader is an individual possessing natural charisma—complex qualities including charm, confidence, and persuasive communication—that allow them to easily attract and influence followers.

A charismatic leader is a charming and inspiring person who naturally draws in employees or team members with their personality. They use a charismatic style, showing confidence, great communication, and emotional connection with others. Leaders with charismatic traits hold power, known as charismatic authority, that comes from their personal charm rather than any official position.

Among different types of leaders, charismatic leaders are special because they motivate and unite people with their vision and enthusiasm, making them very effective at driving change and reaching goals.

Main Characteristics of Charismatic Leaders Include:

• Has a magnetic charm that makes people excited and loyal.
• Communicates clearly and effectively, sharing their team vision and goals.
• Shows confidence, building trust with the employees.
• Understands and connects with people emotionally.
• Thinks outside the box and challenges the norm.
• Uses their personality to influence and motivate others.
• Creates a strong sense of purpose and direction.
• Tells inspiring stories to engage people.
• Leads by example, setting high standards.
• Displays passion and energy that others catch on to.
• Has a clear vision for the future and can share it with others.
• Builds strong, loyal relationships with followers.
• Adapts to changes and different situations easily.
• Inspires a sense of togetherness and unity.
• Often steps up during crises or major changes, offering direction and hope.

Martin Luther King Jr, Mahatma Gandhi, Oprah Winfrey, and Nelson Mandela are great examples of charismatic leaders.

Advantages and Disadvantages of Charismatic Leadership

What Are the Advantages of Charismatic Leadership?

It can be hugely beneficial as a leader to have the charisma that allows you to influence and persuade those around you. In fact, according to research, here are the advantages of the charismatic leadership style: 

• Lower employee stress and burnout as a result of being led by leaders with charismatic traits (University of London and University of Hertfordshire)
• Improved sense of belonging due to the connections leaders with charismatic personality form with others (Cambridge University Press)
• Better teamwork and collaboration as a result of the charismatic leaders' strong communication skills and their sensitivity to their employees and the environment they are working in (Leadership and Organization Development Journal)
• Makes individuals identify more strongly with their team, which leads to improved job involvement, job satisfaction, and performance (International Journal of Psychology)

What Are the Disadvantages of Charismatic Leadership?

If you’re going to adopt the charismatic leadership style, then it’s essential to be aware of the potential disadvantages. First, it has been found that employees led by charismatic leaders will sometimes behave unethically in order to meet their leader’s high-performance standards. Secondly, Harvard notes that because “charisma is rooted in emotional manipulation, it can lead followers to abandon rational thought and accept ideas uncritically.”

What Are the Potential Downsides of Charismatic Leadership?

Potential downsides include creating over-dependence, risk of unethical manipulation, ignoring practical issues in favor of grand visions, and setting unrealistic expectations.

How Is Charismatic Leadership Different From the Other Leadership Styles?

Given how many leadership styles there are, it is common for there to be some confusion around how one differs from another. To help dispel some of that confusion, here’s an overview of the differences between charismatic leadership and the transformational, servant, visionary, and authentic leadership styles. 

Charismatic Leadership vs. Transformational Leadership

The difference between charismatic vs. transformational leadership might not be clear at first glance, given that both rely on strong communication skills, empathy, and the ability to establish strong connections with those they work with. However, the critical difference is that transformational leaders use that to forward the vision of the department/organization, while a charismatic leader may use that to forward their own agenda.

Charismatic Leadership vs. Servant Leadership

As the name servant leadership suggests, this leadership style is all about serving others. The Corporate Finance Institute states that “[these] leaders aspire to serve their team and the organization first ahead of personal objectives. It is a selfless leadership style where a leader possesses a natural feeling to serve for the greater good.” This is what differentiates it from charismatic leadership style. Unlike a servant leader, a charismatic leader may sometimes use their charm, persuasion, and connections to forward their personal agenda.

Charismatic Leadership vs. Visionary Leadership

While the charismatic leadership style relies on one's charisma to influence and persuade others to help them achieve their mandate, the visionary leadership style does so by casting a vision. It’s the vision itself that is compelling and inspiring, not the leader.

Charismatic Leadership vs. Authentic Leadership

Those who use the authentic leadership style are, by definition, “deeply aware of how they think, behave, and are perceived by others. They are aware of their own and others' values, moral perspectives, knowledge, and strengths. They are confident, hopeful, optimistic, resilient, and of high moral character.” The difference between this style of leadership and the charismatic leadership style is that authentic leaders speak and act in a way that aligns with their values, regardless of whether or not it is charismatic, influential, or persuasive.

Next Steps: Take the Quiz to Learn If Your Leadership Style is Charismatic

Evidently, it can be advantageous to utilize the charismatic leadership style in the workplace. But like any leadership style, there are audiences and situations where it won’t have the intended effect. To find out whether or not your leadership style is charismatic, take this leadership style quiz.