Astro Airlines

Arthur Burton, founded of Astro Airlines, started this organization with a vision to provide low-cost, no-frills service to individuals who could not afford to travel by air. This novel and appealing vision was totally different from the norm. He also wanted to structure the organization in a way to provide a better way for people to work together by unleashing their creativity and improvising productivity. By using a Charismatic and Transformational Leadership style Arthur Burton as able to make his vision of Astro Airlines a success. Many employees considered Arthur to be an inspirational leader who made them believe that they could do anything. These feeling were a direct result of Arthurs emotionally speaking skills and his ability to clearly articulate his vision. As any successful Charismatic leader, Arthur’s confidence, enthusiasm, and optimism were contagious and spread rapidly throughout the organization.

In order to transform this organization in the right direction, a Transformational Leadership approach was exhibited by Arthur. Teams were organized with shared responsibilities to determine how to do their work. Employees were offered a sense of felt “self-worth” by being able to elect co-workers as spokesperson to meet with top management concerning important decision that could affect the team. All permanent employees were required to share in the ownership of the company. To assist with the organizations vision, salaries for manages and employees were lower than normal however employees received substantial fringe benefits, profit sharing, and stock dividends. This form of effective leadership seemed to inspire and transform employees by appealing to their ideals and emotions. This case is a testament of how Transformational and Charismatic Leadership styles are both essential elements in a true leaders repertoire.