15-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

15-2 The Dark Side of Leadership Chapter 1515

15-3 "If you put on a blindfold and threw a dart at a map of the world, then there is a 70 percent chance that whatever country the dart lands on is run by some form of dictatorship.” RT Hogan, Hogan Assessment Systems

15-4 Introduction Bad leadership: individuals who are effective at building teams and getting results through others, but who obtain results that are morally or ethically challenged. Managerial incompetence: a person’s inability to build teams or get results through others. Managerial derailment: describes the common reasons why people in positions of authority have difficulties building teams or getting results through others.

15-5 Managerial Incompetence Research shows that 50-75% of managers are incompetent. Yet, organizations and countries survive. Some facts that illustrate this: Most countries are run by some form of dictatorship. Many leaders of democratic countries are perceived as being unable to build teams or get results.. 1,132 CEO’s departured in the first nine months of 2008, up from 700 per year from 2002 to Employee satisfaction surveys show over 75% of respondents indicate that their immediate boss is the most stressful part of their job. Over 70% of M&A fail to yield projected improvements in profitability and synergies A study reported that only 30% of businesses had “healthy and respectful” work climates.

15-6 Managerial Incompetence Grid Figure 15.1: The Two Dimensions of Managerial Incompetence

15-7 Types of managers Competent managers: good at building teams and getting results through others. Results-only managers: good at achieving results, but tend to treat followers so poorly that results tend to be short-lived. Cheerleaders: people in positions of authority who are people centered and make a point of getting along with everyone. In-name-only managers: may not be complete failures at building teams and getting results, but they could be a lot better at both.

15-8 Managerial Derailment Research in the area of managerial derailment identified five derailment patterns: Failure to meet business objectives An inability to build and lead a team An inability to build relationships with coworkers Inability to adapt to new bosses, businesses, cultures, or structures Inadequate preparation for promotion.

15-9 Alternative Conceptualizations of Leadership Behavior Alternative conceptualizations are concerned with: –Identifying key leadership behavior. –Determining if these behaviors have positive relationships with leadership success. –Developing those behaviors related to leadership success. Leadership Grid: Profiles leader behavior on two dimensions: –Concern for people –Concern for production The most effective leaders are said to have high concern for both people and for production.

15-10 Root causes of managerial incompetence and derailment Figure 15.2: The Root Causes of Managerial Derailment and the Leader–Follower– Situation Mode

15-11 Root causes of managerial incompetence and derailment Table15.2: Bad Leadership, Managerial Incompetence, Managerial Derailment, and Root Causes

15-12 Situational and Follower Factors in Managerial Derailment Factors that can interfere with a person’s ability to be seen as a competent manager include: New competitive threats, globalization, technology, changing customer, preferences, unreliable suppliers, new government regulations, unfavorable media coverage, natural disasters, and wars. Mergers, acquisitions, divestitures, bankruptcies, new strategies, reorganizations, and incidents of workplace violence or environmental disasters. New bosses, peers, direct reports; disengaged or disgruntled employees; disruptive worker cliques; and strikes or dysfunctional turnover. New jobs, responsibilities, or projects.

15-13 Two points about overwhelming situational and follower factors The manager can control his or her reactions to overwhelming factors. Episodic versus chronic incompetence. –Episodic managerial incompetence is when people in positions of authority face extremely tough situational or follower events that temporarily interfere with their ability to build teams and get results. –Chronic managerial incompetence is when taxing situational or follower events permanently disrupt a person’s ability to build teams or get results. All competent managers experience occasional episodic managerial incompetence; the trick is to limit the frequency and duration of these occurrences.

15-14 Other issues involved in managerial incompetence Organizational Fit - the degree of agreement between personal and organizational values and beliefs Situational Awareness - refers to a pilot’s ability to be cognizant of and accurately assess risks before, during, and after a flight Self-awareness – refers to being aware of their own strengths and shortcomings. Leaders often find ways to either manage or staff around their personal knowledge and skill gaps. Subject matter expertise - the relevant knowledge or experience a person can leverage to solve a problem. Team-building Know-how - the degree to which a leader knows the steps and processes needed to build high performing teams.

15-15 Dark-Side Personality Traits Table15.3: Dark-Side Personality Traits Source: Hogan Assessment Systems, The Hogan Development Survey (Tulsa, OK: 2002).