The impact of charismatic executive leadership

“Vision, passion, and care:” The impact of charismatic executive leadership communication on employee trust and support for organizational change. by: Linjuan Rita Mena, Cen April Yuea, Yonghong Liub

1. Introduction: Leadership and Organizational Change

Leadership Communication: In today's dynamic business environment, effective leadership communication is critical for managing organizational change. Leaders, particularly CEOs, play a significant role not just as figureheads, but as “chief engagement officers” (Smythe, 2019). Employees expect open, transparent, and authentic communication during periods of change.
Importance of Leadership in Change: Leadership, especially from top executives, is crucial in shaping vision, strategy, and motivating employees during organizational transformations (Gill, 2002). Despite its importance, there has been limited research on how executive leadership communication impacts employee reactions during change processes (Aiken & Keller, 2007).

Reference: Mena, Yue, & Liu (2020), Public Relations Review.

2. Theoretical Framework: Leadership Communication and Trust

Leadership Communication: Leadership communication is the process through which leaders connect with and influence stakeholders. It involves articulating corporate values, visions, and purposes to both internal and external stakeholders (Men & Bowen, 2017). It is a vital part of the internal communication system and impacts how employees perceive change.
Trust in Leadership: Trust is a key element in leadership, especially during organizational change. Trust involves employees’ confidence in the organization’s integrity, dependability, competence, and benevolence (Mayer et al., 1995). Without trust, employees are less likely to engage positively with change processes.
Charismatic Leadership: Charismatic leadership is defined by envisioning (communicating a compelling future vision), energizing (showing passion and excitement), and enabling (offering care and support to followers). This type of leadership has a strong emotional component and is essential for managing change (Nadler & Tushman, 1990).

Reference: Mena et al. (2020); Mayer et al. (1995).

3. Employee Openness to Change and Behavioral Support

Openness to Change: Defined as employees’ willingness to support organizational change, openness to change includes positive affect toward change and a readiness to engage with new initiatives (Wanberg & Banas, 2000). Employees who are open to change are more likely to have higher job satisfaction and lower intentions to quit.
Behavioral Support for Change: This is categorized into three levels (Herscovitch & Meyer, 2002):
1. Compliance: The minimum level of support where employees follow change directives but without enthusiasm.
2. Cooperation: Employees accept the change and make moderate sacrifices to ensure its success.
3. Championing: The highest level of support where employees go beyond expectations to actively promote the change.

Key Concept: Employees’ attitudes (openness) and behaviors (support) during change are critical to the success of any organizational transformation (Miller et al., 1994).

Reference: Wanberg & Banas (2000); Herscovitch & Meyer (2002).

4. Charismatic Executive Leadership Communication

Charismatic executive leadership communication consists of three components that are essential during organizational change (Nadler & Tushman, 1990):

4.1. Envisioning

Vision Communication: A compelling vision provides employees with a clear understanding of the future state of the organization and reduces uncertainty during change. Leaders articulate a picture of what the organization will look like post-change, making the goal seem both desirable and achievable.
Creating Shared Understanding: By communicating vision clearly, leaders help employees align their personal goals with the organizational direction, fostering cooperation and enthusiasm toward the change (Conger & Kanungo, 1987).

Example: Vision communication was found to be instrumental in motivating employees to engage with the change process (Venus et al., 2018).

4.2. Energizing

Passion and Excitement: Charismatic leaders express personal excitement and energy for the change, which is emotionally contagious and helps to inspire similar emotions in followers (Antonakis et al., 2016). This creates an emotional momentum that can drive openness to change and behavioral support.
Mood Contagion: Leaders' emotional displays, such as passion and confidence, can transfer to employees, creating a more positive atmosphere around the change effort (Bono & Ilies, 2006).

4.3. Enabling

Support and Empathy: Leaders communicate care by offering support and empathy to employees during challenging transitions. This includes demonstrating an understanding of employees' concerns, providing reassurance, and building their confidence in handling the change (Bandura, 1977).
Emotional Support: Employees who feel supported are more likely to trust leadership and cooperate with the change. Empathetic communication fosters a sense of shared responsibility and partnership between leaders and employees (Wanberg & Banas, 2000).

Reference: Nadler & Tushman (1990); Bono & Ilies (2006); Bandura (1977).

5. The Mediating Role of Organizational Trust

Trust as a Mediator: The study found that organizational trust mediates the relationship between charismatic executive communication and employee reactions to change. Trust builds confidence in leadership, which increases openness to change and behavioral support (Agote et al., 2016).
Building Trust: Charismatic leadership behaviors—visionary, energizing, and supportive—create a foundation of trust. When employees trust their leaders, they are more likely to positively engage with the change process (Mena et al., 2020).

Key Findings: Trust enhances employees’ acceptance of change and encourages them to go beyond compliance and embrace deeper cooperation or even championing of change.

Reference: Agote et al. (2016); Mena et al. (2020).

6. Key Hypotheses and Findings

H1: Openness to change is positively associated with behavioral support for change.
H2: Charismatic executive communication positively influences employee openness to change.
H3: Charismatic executive communication positively influences employee behavioral support for change.
H4 & H5: Employee trust during change positively influences openness to change and indirectly influences behavioral support.
H6: Charismatic leadership communication fosters organizational trust, which mediates the relationship between leadership and employee change reactions.

Study Results: The study confirmed the above hypotheses, emphasizing the critical role of leadership communication in driving trust, openness, and behavioral support during change.

Reference: Mena et al. (2020).

7. Practical Implications

Leadership Training: Organizations should train leaders in communication strategies that focus on vision, passion, and care to build trust and drive employee engagement during change.
Collaboration with PR and HR: Public relations and human resources should collaborate closely with leadership to ensure communication is authentic, transparent, and empathetic.

Harvard References

Mena, L.R., Yue, C.A., & Liu, Y. (2020). Vision, Passion, and Care: The Impact of Charismatic Executive Leadership Communication on Employee Trust and Support for Organizational Change. Public Relations Review, 46(2020), 101927.
Wanberg, C.R. & Banas, J.T. (2000). Predictors and Outcomes of Openness to Changes in a Reorganizing Workplace. Journal of Applied Psychology, 85(1), pp.132-142.
Herscovitch, L. & Meyer, J.P. (2002). Commitment to Organizational Change: Extension of a Three-Component Model. Journal of Applied Psychology, 87(3), pp.474-487.
Antonakis, J., Bastardoz, N., Jacquart, P. & Shamir, B. (2016). Charisma: An Ill-Defined and Ill-Measured Gift. Annual Review of Organizational Psychology and Organizational Behavior, 3(1), pp.293-319.