Dysfunctional Aspects of Leadership
Poor organizational performance can be traced back to dysfunctional leadership. According to the International Institute of Management, leadership sets corporate culture, formulates business strategy and builds its capacity with financial and human resources. The leadership team is the most important asset of the company and can be its worst liability, according to a report from the International Institute of Management.
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Leadership and Performance
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Although leadership has been extensively studied, poor business performance can still take a company by surprise. However, management must be held responsible since they have been in control of the planning, organizing and motivating of staff. One of the main reasons that businesses fail is negative internal politics.
Negative Internal Politics
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Negative internal politics includes dictatorial leadership, or the refusal to allow subordinate disagreement out of either arrogance or insecurity. Empire-building, as evidenced by recruiting and promoting only those who are loyal to the leader, is a sign of dysfunction. Inefficient use of resources by allocation based on favorites and power centers as opposed to actual business needs will eventually lead to business failure.
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Personal Agendas
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Leaders who put their personal agendas over the welfare of the company are dysfunctional. Encouraging the development of silos, or rival factions within organizations, wastes resources by duplicating efforts and expenses. Under a culture of competing silos, meetings are liable to produce heated exchanges, blame-shifting and accusations instead of productive communication.
Wasteful Leadership
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In addition to wasting human and financial resources by encouraging turf wars and the formation of silos, dysfunctional leadership is evidenced by a great deal of talk without subsequent action. Negative organizational politics appears to value image over substance. Organizations that seem to lurch from one crisis to the next with no time left for strategic planning for the future are being led by dysfunctional leaders.
Dysfunctional CEOs
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According to Business Psychology Consulting, some dysfunctional leaders like to tyrannize their subordinates, as an abusive form of control. A classic case is the CEO who said, "You're not in the business of being liked ... If you want a friend, get a dog." Of the eight companies he led, six went out of business. Manic CEOs are those that have such a high energy level, no one can keep up with them. While working hard is not a flaw, manic CEOs move too fast to notice important details that eventually trip them up.
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