Impact of CEO’s Charisma on Organisation’s working culture

This blog emphasizes on a CEO’s role in an organisation to steer innovation by making full use of his charisma, personality and firmness as a leader. It also enlightens whether CEOs are solely responsible for it or no.

 

The basic role of a Chief Executive Officer is to lead the development by taking the strategic decisions in order to create shareholder value (Sterling 2008). It is very important in an organisation for employees to follow CEO’s leadership decisions, hence the CEO must have a huge positive impact on its subordinates to earn their trust and increase their work results. Hence the CEO must have a charisma and charm with a clear vision so that the employees get inspired and gear themselves up to work even harder.

 

The industry I have chosen to analyse different leaderships is the Beverage Industry. One of the most successful and inspirational leader is Indra K. Nooyi, CEO of PepsiCo. She has developed a unique an adaptive approach to leadership to cope up with the changing environment. She leads the organisation by the motto “Leading with open eyes, ears and mind” (Nooyi 2003). The Open eyes factor is about anticipating and getting ready for the changing trends in the horizon. A great leader must have Open ears in order to listen to those who matter to company’s strategies and organisational culture. Also, leading with an Open mind focuses on acting upon things what you hear around, and that too in new ways. This can be termed as democratic leadership as it involves engagement of other employees and a chance is given them to share innovative ideas that are thoroughly heard by the CEO. (Nooyi, 2003)

 

Nooyi’s image of a powerful and caring woman and her adapting approach of leadership has created a charisma over her subordinates and inspired them to get the best results in terms of innovation and diversification. This has been proved by constant increase in revenue since the year Nooyi joined as the CEO.

 

Dietrich Mateschitz, the name behind one of the famous companies, “Red Bull” is another example of a great leader in the beverage industry. He introduces Red Bull as a new brand and took care of all the marketing techniques himself and taking it to the top level. He has a proven record of building teams with members of different cultures by training executives across 10 countries. This diversification gives him deep understanding of people and motivates people to empowerment of achieving goals. (Carrero 2012)

 

The success of Red Bull today is largely attributed to transformational leadership. He has set an example of perfect implementation of an innovation and created a charismatic personality that has inspired lots of young entrepreneurs. We can also call Dietrich as a Directive Leader as he controls most of the activities in Red Bull. Directive leadership is basically giving specific direction to only those subordinates who will follow rules and regulations. (Mullins 2010: 388)

From the above examples, we can conclude that both the leaders possess inspiring charisma, and are adaptable to change. Both have followed a different style of leadership, but both have been successful and met their objectives. I agree that the capability of a firm strongly relies on the personality of their Chief Executive Officer.

 

REFERENCES:

Carrero, A. (2012) Alberto Carrero’s summary – MD at Red Bull USA [available at] http://fi.linkedin.com/in/carrero [Accessed 24th March 13] 

Mullins, L. J. (2010), Management & Organisation Behaviour, 9th Edition, Prentice Hall. 

Nooyi, I. (2003) Female Leadership: Through the eyes if Indra Nooyi, The Alessandro Benetton Blog [available at] http://www.alessandrobenetton.com/female-leadership-through-the-eyes-of-indra-k-nooyi/ [Accessed 23rd March 13]

Sterling Resources (2008) Roles and Responsibilities of a CEO [available at] http://www.sterling-resources.com/docs/RolesAndRespCEO.pdf [Accessed 23rd March 13]

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s