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Article

The Personality Underpinnings of Strategic Leadership: The CEO, TMT, and Board of Directors  

Bret Bradley, Sam Matthews, and Thomas Kelemen

“Strategic leadership” is the umbrella term used to describe the study of an organization’s top leaders—what they do, their interactions, and how they influence important organizational outcomes. The three major areas of focus within this field are the chief executive officer (CEO), the top management team (TMT), and the board of directors. Although each area has vibrant bodies of literature on important topics of inquiry, the integration of research findings, frameworks, and insights across the three areas remains underdeveloped. For example, the study of leader personality is a rich line of inquiry within the broader management literature, and all three areas are developing, albeit at different rates and with little integration across the three areas. The work on CEO personality is the most developed, and the work on board personality is the least developed. CEOs personality traits that have been studied include the Big Five personality traits (conscientiousness, extraversion, agreeableness, openness to experience, and emotional stability), locus of control, core self-evaluations, narcissism, overconfidence, hubris, humility and regulatory focus (a person’s general approach to goals as either promotion focused or prevention focused). TMT personality traits that have been studied include the Big Five, trait positive affect, propensity to innovate, and competitive aggressiveness. Finally, board of directors’ personality traits that have been studied include only personality diversity.

Article

Strategic Empowerment in Human Resource Management  

M. Taner Albayrak and Alper Ertürk

Empowerment is considered one of the best managerial approaches to foster employees’ effectiveness, creativity, commitment, performance, and other positive work-related attitudes and behaviors while providing an essential tool for leadership development and succession planning. Empowerment involves delegation of authority, sharing of information and resources, and allowing employees to participate in decision-making processes. Empowerment practices result in positive outcomes through psychological empowerment, which comprises meaning, impact, self-determination, and competence. However, empowerment should be exercised with care, and before doing so, leaders should understand their employees’ competences, willingness, and characteristics, as well as the organizational culture and industrial dynamics. With the increasing use of information and communication technologies, inevitable influence of globalization, and continuously changing dynamics of interconnectedness among industries, the business environment has become more volatile, uncertain, complex, and ambiguous (VUCA). In order to survive in this environment, companies try to increase diversity in their workforce to make the best use of a broad variety of skills, experiences, and opinions, thus boosting creativity and innovativeness, which makes leadership more difficult than ever. With empowerment, the concept of delegation of power is important. Therefore, comparing the concept of personal empowerment with managerial empowerment helps in understanding that these concepts are different, although interconnected. Delegation of authority ensures that the manager transfers decision-making authority to subordinates under certain conditions. In delegation, authority is retained by the manager, who has the ultimate responsibility. On the other hand, in empowerment, authority is fully transferred to the person who is already doing the job, with all the rights and responsibilities to take the initiative as necessary. Empowerment is also closely related but different from the concept of motivation. In motivation, decision-making authority and control stays with the manager. Empowerment, on the other hand, gives employees the opportunity to participate in management, solve problems, and participate in decision-making processes. In this context, the concepts of delegation of authority, motivation, participation in management, and job enrichment are the domain dimensions of personal empowerment, and thus they are interrelated, yet different. It is important to create a common vision and to have common values in order to establish the empowerment process. Subordinates and supervisors need to trust each other, and empowerment needs to be seen as a philosophy, not a technique. It is necessary to create business conditions that enable the development of knowledge and skills in personnel empowerment. These conditions affect the perceptions and attitudes of the staff, such as, support, loyalty, identification, and trust. Empowering employees promotes organizational commitment, increases engagement, and reduces turnover intentions of key personnel. Because empowerment involves encouraging participation of subordinates in the decision-making process, it also helps to enhance the effectiveness of the decisions and reduce decision-making time. In the VUCA world, limited decision making could be a critical obstacle to establish and maintain sustainability in highly competitive business environments.

Article

Leader–Member Exchange: A Commentary on Long-Term Staying Power and Future Research Directions  

Terri A. Scandura and Kim Gower

In 1975, the phrase “vertical dyad linkage” (VDL) was introduced to begin examining the quality of the roles between the leaders and direct reports, and it was soon discovered that the linkages ranged between high quality and low quality. That linkage progressed into “leader–member exchange” (LMX) in 1982. In essence, research reached a point where it found a continuum of the quality of the relationship between the two members. High-quality relationships put the employees into the leader’s “ingroup,” while low-quality relationships left employees on the outside looking in. It followed that those in the ingroup would have some say in the decision-making, would have easier access to the leader, and would garner more respect and “liking.” Researchers have used the LMX-7 to examine how the quality of superior/subordinate relationships affects individual, interpersonal, and organization factors like job satisfaction, communication motives, and organizational identification (as did the original LMX scale). Although the LMX-7 remains one of the most prominent psychometric measures of LMX, researchers still debate whether the construct should be considered unidimensional or multidimensional. While the intricacies of LMX-7 versus LMX have been argued, and with teams becoming more of an organizational resource, team–member exchange (TMX) was found to be a supported extension of LMX. While at this point TMX is lacking in the volume and pace of research, due to the difficulties of measurement among a group of people who might have a variety of leaders during the process, the existing research has produced some results that are extremely relevant, now and in the future. Examples of what has been found when the team exchange relationship is high include reduced stress, increased psychological empowerment, increased creativity, increased team performance, increased individual performance, increased organizational citizenship behaviors, increased organizational commitment, and increased job satisfaction, just to name a few. In sum, the investigation into LMX provides a history of the field of LMX and its many iterations and the role it plays in leadership studies. This research includes LMX antecedents, consequences, moderators, mediators, and outcomes, as any field in which over 4,500 papers have been published needs an effective way to highlight the progress and pathways.