Charismatic leaders can have both positive and negative effects on organizations and their members. The positive effects can be sufficiently significant to warrant the risks of appointing a charismatic leader. An effective socialized charismatic leader can revolutionize an organization and inspire its members to enhanced performance. On the other hand, a personalized charismatic leader has the capacity to destabilize and damage the organization and its members because of the leader’s focus on personal advancement and interest. The positive contribution of a charismatic leader to an organization can be enhanced — and negative effects minimized — by introducing appropriate safeguards into the selection and tenure of the leader. These safeguards would need to address the accountability structure, the support system and the selection process which surround the leader.