EFFECTS OF PREVENTION-DRIVEN AND CHARISMATIC LEADERSHIP STYLES ON MEDIUM-SIZED ORGANISATIONS

Abstract

Medium-sized organisations operate in environments that require both stability and
adaptability. This position paper examines the effects of prevention-driven and charismatic
leadership styles on such organisations. Prevention-driven leadership prioritises risk
management, operational stability, and compliance, thereby enhancing organisational
resilience; however, it may also inhibit innovation and reduce employee motivation. This
leadership style emphasises risk avoidance and procedural adherence, contributing to
operational consistency while potentially constraining creativity. In contrast, charismatic
leadership promotes inspiration, vision articulation, and employee engagement, thereby
fostering innovation and organisational change. However, it may also introduce risks related to
leader dependency and biased decision-making. Through a comprehensive review of existing
literature and case analyses, this study highlights the importance of balancing these leadership
approaches based on situational demands. The paper recommends the adoption of situational
leadership practices, the encouragement of balanced risk-taking, and the implementation of
effective succession planning strategies to enhance organisational effectiveness. The findings
suggest that medium-sized organisations benefit from leadership flexibility that aligns
leadership style with contextual needs, thereby improving resilience, innovation, and employee
engagement. By integrating both prevention-driven and charismatic leadership traits,
organisations can achieve sustainable growth while navigating complex and dynamic
environments.