MGT3002

Trust, Charismatic Leadership, and Power

Trust is based on the awareness that there may be some penalty or loss if that trust is violated—this is

called deterrent-based trust. For example, laws try to ensure trust primarily through deterrence.

Within social groups deterrence is used to sustain the norms that have developed in the group. You

may be caught in a dilemma when you should report on a colleague, yet are apprehensive of the social repercussions from other members of the group. If you do report on the colleague, you may be

violating the trust of other group members. But if you do not report the violation, your boss has no

reason to trust you.

Most people can become good leaders but few people who become leaders can also be thought of as

"charismatic." Many would agree that Franklin D. Roosevelt, John F. Kennedy, and Lee Iacocca were

charismatic leaders. There is no dearth of charismatic leaders in the �eld of business either. Donald Trump, Martha Stewart, Dave Thomas—the founder of Wendy's, David O. Selznick—the �amboyant

producer of Gone with the Wind and other big Hollywood productions, Steve Jobs—founder of Apple

Computers, are all excellent examples of people who were charismatic leaders. However, it is dif�cult

to describe the qualities that made these leaders charismatic.

Lastly, the concept of power is central to any discussion on leadership. Power is the ability to in�uence

the behavior of others. Leaders often use power to in�uence the behavior of their subordinates in

order to accomplish goals. Like politics, the concept of power is sometimes associated with a degree of negativity. However, power is necessary to accomplish organizational goals. Power comes from a

variety of sources and in organizations it can be formal or personal. Formal power comes from the

organization and is delegated to individuals.

Not long ago, most discussions of leadership were about leaders – their personality traits, how to

identify and groom those with ‘leadership potential,’ and what were the skills that leaders employed.

Leadership theorists nowadays stress authenticity, EQ and relationships. This makes intuitive sense. But it isn’t just a fad; there is a solid reason behind the shift. It is driven by changes in the world. Above

all, it re�ects the growing importance of trust.

Additional Materials

Trust, Charismatic Leadership, Emotional Intelligence, and Power

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