The empirical literature on charismatic or transformational leadership
demonstrates that such leadership has profound effects on followers.
However, while several versions of charismatic leadership theory predi
ct such effects, none of them explains the process by which these effe
cts are achieved. In this paper we seek to advance leadership theory b
y addressing this fundamental problem. We offer a self-concept based m
otivational theory to explain the process by which charismatic leader
behaviors cause profound transformational effects on followers. The th
eory presents the argument that charismatic leadership has its effects
by strongly engaging followers' self-concepts in the interest of the
mission articulated by the leader. We derive from this theory testable
propositions about (a) the behavior of charismatic leaders and their
effects on followers, (b) the role of followers' values and orientatio
ns in the charismatic relationship, and (c) some of the organizational
conditions that favor the emergence and effectiveness of charismatic
leaders.