The Dark Side of Discretion
Robert B. Kaiser Kaplan DeVries Inc. Robert Hogan Hogan Assessment Systems
THE DARK SIDE OF DISCRETION Leader Personality and Organizational Decline
Robert B. Kaiser Kaplan DeVries Inc. Robert Hogan Hogan Assessment Systems
Author Notes Rob Kaiser is a partner with Kaplan DeVries Inc. Robert Hogan is President of Hogan Assessment Systems. Correspondence concerning this article may be directed to either author at Rob Kaiser, 1903 G Ashwood Ct., Greensboro, NC 27455, rkaiser@kaplandevries.com or Robert Hogan, 2622 E. 21st St., Tulsa, OK 74114, rhogan@hoganassessments.com.
Revised and resubmitted for J. Antonakis, R. Hooijberg, J. Hunt, K. Boal, & W. Macey (Eds.) Strategic Leadership of Organizations May 2006
Copyright© Hogan Assessment Systems, Inc. 2006. All rights reserved.
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Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men. Lord Acton Discussions of leadership typically glorify senior managers, a practice that seems increasingly suspect (Kellerman, 2005). This chapter examines the concept of discretion, defined as the degree of choice or "latitude of action" available to managers (Hambrick & Finkelstein, 1987). We propose that, although discretion is necessary for leaders to make positive contributions to their organizations, it also provides the potential for leaders to disrupt and destroy them. This dilemma has possible implications for the fate of organizations and even societies. Thus, given the tendency for academics to romanticize senior leaders, we focus on the dark side of discretion and how it links leader personality to organizational failure. Consider Harry Stonecipher, an executive at General Electric in the 1980s, an organization that tolerated, if not actually reinforced, his intimidating management style. Although he earned a reputation for integrity by taking strong positions on ethical issues, media accounts of his career at GE,
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