In Charismatic Leadership Theory, proposed by Robert House, followers make attributes of heroic or extraordinary leadership abilities when they observe certain behaviors General characteristics of charismatic leaders are: they have vision, they are willing to take personal risk, they are sensitive to followers’ needs, they exhibit extraordinary behaviors
Transformational leaders inspire followers to transcend their own self-interests for the good of the organization. They change followers’ awareness of issues by helping them to look at old problems in new ways; and they are able to excite, arouse, and inspire followers to put out extra effort to achieve group goals. Transformational leadership is built on top of transactional leadership—it produces levels of follower effort and performance that go beyond what would occur with a transactional approach alone.
These descriptions imply that charismatic leadership is based on a person’s behavior, when observed by others, is defined as charismatic leadership. Transformational leadership, on the other hand, is a concept that can be taught to people to make them more effective leaders using concepts that have been found to contribute to leadership relationships.