Abstract

Title: Charisma or Control? When relationships shape the interpretation of charismatic leadership

Level: Bachelor´s degree in Business Administration 

Author: Sanna Borg & Tilda Kristiansson

Supervisor: Monika Wallmon 

Date: May 2026

Aim: This study examines how charismatic leadership behaviors are interpreted in different leader–member relationships, with particular focus on variations in the quality of the Leader–Member Exchange (LMX) relationship. The study is based on the overarching research question: How does the quality of the LMX relationship shape employees’ interpretations of charismatic leadership behaviors? The study also addresses which charismatic behaviors emerge in respondents’ everyday descriptions, when these are interpreted as inspiration, support, pressure, or control, and how boundary conditions explain this variation.

Method: The study is based on a qualitative method comprising ten semi-structured interviews with respondents who had experience of established leader–employee relationships. The collected material was analyzed through a theory-driven thematic analysis, informed by theories of charismatic leadership and Leader–Member Exchange (LMX).

Results and conclusion: The findings show that charismatic leadership behaviors can be interpreted as inspiration and support, or as pressure and control, depending on the relationship between the leader and the employee. The study also shows that motivation and pressure do not necessarily have to be opposites, but may arise from the same relational dynamic. The conclusion is therefore that charismatic leadership does not have a fixed meaning, but is shaped by the relationship and by the employee´s interpretation. 

Contribution of the thesis: The study contributes knowledge about how charismatic leadership takes on different meanings depending on the relationship between the leader and the employee. It shows that the quality of the relationship can influence whether leadership behaviors take on positive or more problematic meanings. The findings may be valuable for leaders and organizations, as they show that charismatic leadership behaviors are not received in the same way by all employees, emphasizing the importance of follow-up, responsiveness, and clear boundary setting.

Suggestions for future research: Future research could deepen the understanding of how trust, identification, and boundary setting develop over time in leader–member relationships. It would also be interesting to examine these processes in other contexts, such as political leadership.

Key words: Leader–Member Exchange (LMX), charismatic leadership, relational quality, interpretation, leader–member relationships, motivation and pressure