Researchers are challenged to quantify how charismatic leaders enhance profits within an organization through productivity. The issue isn’t whether charismatic leaders help build morale, inspiration, and innovation to a company, but how these leaders increase employee productivity that leads to profitability. Productivity and motivation are two mutually-related concepts, the latter fueling the former, while the former is the end result of the latter. Basically, productivity is a performance measure to show how an organization can effectively convert its resources into its intended products (or services).
This is related to how motivated a person is to perform a task (or activity). Worker enhancement programs are built on ways on how to motivate workers to optimize productivity. Some organizations offer their workers sports and recreational activities, fitness and leisure activities and some family-oriented programs. This comprehensive approach in enhancing worker performance may capitalize on quality measures like value, TQM (total quality management), quality circles, innovations and performance standards (profitability, efficiency, customer satisfaction, on-time delivery) and carries a wide range of personal and team rewards and incentives. Companies like Apple, which falls under the charismatic leadership model, create infrastructures (playful work areas, open space, and great eateries) that lend itself to employees gaining a high level of comfort, which leads to greater productivity.
MRT (mutual reward theory) is an incentive program where the organization assists an employee to reach his or her goals. This is accomplished while sill meeting the company’s production goals.
The greatest rewards are achieved when the benefits are at an optimum for all persons. Usually, productivity is directly proportional to the degree of success of MRT. Charismatic leaders want employees totally committed to the mission of the organization. Consequently, giving employees what they desire most is a way for achieving organizational objectives.
Productivity growth is the measure of the amount of goods and services produced within a specific time period. First, a standard is determined. Next, that standard (or benchmark) becomes the measure against which all future productions are to be measured against. In a country, the annual growth rate is being watched. Productivity growth rate is directly proportional to a person’s wealth. If the levels of productivity rise, so does a person’s buying power. The total economy in turn benefits from the increase.
Most valuable resource
Most productivity researchers have agreed that the world’s most valuable resources are people. It has been suggested that education and training are responsible for raising the levels of productivity of people. Researchers further suggested that attaining expertise via education and training can be maximized by developing people who want to learn, work at their potential, and continuously improve. For charismatic leaders, this cuts both ways. Employee development is designed for organizational productivity. Charismatic leaders feel a sense of betrayal when a trusted, loyal employee takes the investments afforded to him and leaves for a competitor. For these leaders, the organization is a family dedicated to a mission.
When an employee is motivated to take pride in his work, that employee adds value to the organization. He will contribute to the overall productivity for himself, his organization, and the economy at large. The charismatic leader knows this emotionally and intellectually and will go the extra mile to ensure that “knowledge workers” are provided all of the essential resources necessary to increase productivity and profitability. Under this model, any employee departures are seen as an ungrateful mutiny. The charismatic leadership model is steeped in the idea that missions create communities. For the employee, he is not merely doing a job, he is recreating the world.
Under the charismatic leadership model, does a structured motivational environment coupled with inspiration increase profitability? Although these intangibles are difficult to measure, conventional wisdom suggests that they do. Only when employees are reminded that such environments are luxuries, not to be taken for granted, will employees further embrace the “specialness” of doing good and well simultaneously.