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Importance of effective leadership

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The level of incompetent managers in mid to large size organizations within the U.S. are approximately 47%-50% (Van Vugt, Hogan & Kaiser, 2008). Results from the studies of (Hogan & Kaiser, 2005) indicated that the managerial incompetence rate is as high as 50% in any given organization. Bad management is prevalent across the board and not indicative to a single industry (Van Vugt, Hogan & Kaiser, 2008). Statistics gathered from an empirical quantitative study (Erickson & Agabe, 2007) concluded that as the result of bad leadership employees were negatively impacted--9% turnover rate, 33% loss of motivation, and 10% decrease in performance were the top three out of a list of 14 categories. Similarly the study indicated that 33% of employees stress levels increased as a result of bad leadership.

Bad leadership can be costly to organizations; as well as contribute to the high volume of absenteeism, attrition, low morale and poor customer service. All of which play a vital role in organizational cohesiveness, culture, longevity and financial well being. Additional statistics observed from the Erickson & Agabe, 2007 quantitative study regarding effects of bad leadership to organizations--human resources loss (21%), bad organizational culture (17%) and decrease in performance (16%). Human resources loss consists of the organizations ability to recruit, high turnover rates, time loss in job hunting and high absenteeism (Erickson & Agabe, 2007). Organizations that do not take appropriate actions to address bad leadership within their organizations will have a difficult time remaining competitive in today's ever changing environment and could potential lead to failure overtime. Bad leaders have devastating consequences to organizations overall decrease in motivation, productivity and morale; in addition, if not addressed at an early stage can negatively impact organizations financial health (Erickson & Agabe, 2007).

References

Erickson, A., Shaw, J. B., Agabe, Z. (2007). An empirical investigation of the antecedents,

behaviors, and outcomes of bad leadership. Wiley InterScience. 1(3) doi:10.1002/jls.20023

Hogan, R., & Kaiser, R. B. (2005). What we know about leadership. Review of General

Psychology, 9(2), 169-180. doi:http://dx.doi.org/10.1037/1089-2680.9.2.169

University of Phoenix. (2015). Leadership and emotions. Retrieved from University of Phoenix

website

Van Vugt, M., Hogan, R., & Kaiser, R. B. (2008). Leadership, followership, and evolution:

Some lessons from the past. American Psychologist, 63(3), 182-196.

doi:http://dx.doi.org/10.1037/0003-066X.63.3.182

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Leaders exemplify and personify the organization, which means that an unethical, incompetent, and unqualified leader will dictate that the organization itself is also not capable of addressing necessary issues. Therefore, the leader must ensure that they are ...

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