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