I. Transformation Term of Leadership

The theory and practice show that transactional leadership is a necessary, evolutionary path to transformational and charismatic leadership of the time in a relatively stable business environment, time for operating in a turbulent environment with many unknowns. Transformation phase and charismatic leadership are characterized by different interactions of social actors, initiative, efficiency and effectiveness, readiness for change and variety of strategic choices in accordance with the requirements of the environment and the perception of new vision and business goals. It is an evolutionary path that coexists with the changes in the environment and the inevitability of the appearance of transformational and charismatic leadership as a complex process based on the individual vision, courage and willingness to learn, openness to followers and values that include better and more efficiently, based on a radical change in the organization and environment. Keywords—Transformational and charismatic leadership, turbulent environment, a willingness to learn, the vision and mission, the followers. I. TRANSFORMATION TERM OF LEADERSHIP S a term, transformational leadership was first mentioned in 1973, in the sociological study J.V. Dowtona about leadership: "Commitment and charisma in the revolutionary process." Since 1980, the transformational leadership is in the focus of many studies. By 2001, K.B. Lowe & WL Gardner found that is 1/3 of studies focused on transformational and charismatic leadership. Burns has made a fundamental distinction between transactional and transformational leadership. James Macgregor Burns in 1978, with his book,, Leadership "has set the cornerstone for the study of leadership as a new field which is written in the years to more than two hundred studies and several programs on the functioning of organizations and governments. He described transactional leaders as someone who directs the exchange with followers in which followers are rewarded for meeting pre-defined standards and performance. This process promotes improvements to the goals, establishing work standards, provide clear guidelines and to provide appropriate resources. According to Burns, transactional leaders are primarily focused on maintaining the status quo. In this sense, transactional leadership is a traditional approach to leadership. Burns’ transformational leadership is seen as someone who actively changing needs of its followers by raising them on the same level as their own, or organizational needs and goals. Transformational leader offers to his followers a mission or vision that stimulates their imagination. The vision itself, redirect follower actions and motivates them to greater efforts. Unlike transactional leaders who operate within the framework of existing values, beliefs and goals of their followers, transformational leaders seek to change the above categories and create new ones to encourage greater commitment of followers. Intense commitment to the concept of transformational leadership is the result of at least two tendencies. First, many large companies such as IBM, GM, Ford and others, have entered into a comprehensive program of transformation and change that had to be achieved in a relatively short period of time. After the Second World War, until the seventies, the business climate in the world, especially in the U.S., provided that such degree of stability that most organizations did not felt the need for change, and consequently for the leadership, as the force that leads to change. However, after 25-30 years of relatively slow and steady growth in the seventies and eighties, especially the last century, the business world has become far more dynamic, competitive and volatile. Many, by then successful companies, were faced with the crisis and the need to radically change their former way of doing business. Second, the recent theoretical base of leadership, which is based on an analysis of personal characteristics of leaders and its behavior in different situations not taking into account some, a lot of quirky qualities of leaders. These new qualities demanded a new theory or a new concept of leadership. It is the concept of transformational leadership. CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP: APPROACHES FOR EFFECTING CHANGE Srdjan NIKEZIĆ 1 , Suzana DOLJANICA 2 , Dragan BATAVELJIĆ 3 1 Faculty of Science, Kragujevac, Serbia, email: [email protected] 2 High School of Modern Business, Belgrade, Serbia, email: [email protected] 3 Faculty of Law, Kragujevac, Serbia, email: [email protected] A ANNALS OF THE ORADEA UNIVERSITY Fascicle of Management and Technological Engineering ISSUE #2, SEPTEMBER 2013, http://www.imtuoradea.ro/auo.fmte/