In the field of sociology, charismatic authority is a concept of organizational leadership wherein the authority of the leader derives from the personal charisma of the leader. In the tripartite classification of authority, the sociologist Max Weber contrasts charismatic authority (character, heroism, leadership, religious) against two other types of authority: (i) rational-legal authority (modern law, the sovereign state, bureaucracy) and (ii) traditional authority (patriarchy, patrimonialism, feudalism).

The Ancient Greek word charisma became known through the Pauline epistles to Christian communities in the first century of the Common Era, wherein the word charisma denoted and described a gift of divine origin that demonstrated the divine authority possessed by the early leaders of the Church. Weber developed the theological term and the concept of charisma into a secular term for the sociological study of organizations. Terms derived from charisma include charismatic domination and charismatic leadership.

Weber applies the term charisma to

[A] certain quality of an individual personality, by virtue of which he is set apart from ordinary men and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities. These are such as are not accessible to the ordinary person, but are regarded as of divine origin or as exemplary, and on the basis of them the individual concerned is treated as a leader. . . . How the quality in question would be ultimately judged from an ethical, aesthetic, or other such point of view is naturally indifferent for the purpose of definition.

In the modern era, some psychologists have defined charisma in terms of practical outcomes (i.e. charismatic leaders are effective). However, such a definition results in circular in reasoning. The conclusions derived from such definitions (and measures) cannot be refuted given that the proponents claim something akin to if effective, therefore charismatic. Charisma, however, can be studied scientifically if seen as a costly signal, using values, symbols, and emotions. It was shown to correlate strongly with general intelligence and observers infer that those signaling charisma are more competent. Its economic value in consequential settings has also been scientifically examined. Thus Weber's insights were valuable in naming the construct of charisma, although his definitions and insights did not allow for its scientific study. Modern social science however, has found supports for the notion that charismatic leaders can, under certain conditions, be very persuasive.

Weber interchanges authority and dominance

[H]as been considered in sociological terms as indicating the legitimate or socially approved use of power. It is the legitimate power which one person or a group holds and exercises over another. The element of legitimacy is vital to the notion of authority and is the main means by which authority is distinguished from the more general concept of power. Power can be exerted by the use of force or violence. Authority, by contrast, depends on the acceptance by subordinates of the right of those above them to give them orders or directives. Charismatic authority is often the most lasting of regimes because the leader is seen as infallible and any action against him will be seen as a crime against the state. Charismatic leaders eventually develop a cult of personality often not by their own doing.

[P]ower legitimized on the basis of a leader's exceptional personal qualities or the demonstration of extraordinary insight and accomplishment, which inspire loyalty and obedience from followers.