The leader builds an environment in which every member of the organization flourishes through idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.
Idealized influence is creating positive impact of the leader on the individual in terms of confidence and trust, so that the followers seek to emulate their role model (Bono & Judge, 2004, p. 901; Simic, 1998, p. 52; Stone, Russell & Patterson, 2003, p. 3). The employee is impressed by the leadership style and follows the chosen path of the leader. Leaders are “admired, respected, and trusted” (Bass, Avolio, Jung & Berson, 2003, p. 208). The subordinated believe virtues of their leader so that any decision taken will be supported with minimal resistance even in the time of crisis. Charismatic leadership is one of the important attributes of this modern leadership style and is based on the expression of leaders as well as followers (Kelly, 2003). Lee Iacocca showed his charismatic leadership to revive Chrysler Corporation in the 1970s and 1980s (Kelly, 2003).
Inspirational motivation is a broader view of idealized influence to make direct impact on whole organization. The leader inspires other team members to behave and perform in a certain way through speeches, conversations and other public displays (Simic, 1998, p. 52) and stimulating collaborative work approach. The formal and informal forms of his influence help in building flexible, yet successful organization with shared vision. The headman inculcates the required organizational culture and environment (Kelly, 2003; Stone, Russell & Patterson, 2003, p. 3) in each individual in such a manner that the employee would feel indispensable part of the business. Optimistic and enthusiastic attitude of the leader motivates the followers. US President John F. Kennedy’s dream to accomplish mission of putting a man on the moon by 1970 is a classic example of