Leaders exert a significant influence over the satisfaction and engagement of the employees that they lead (Harter, Schmidt & Hayes, 2002). A good manager can inspire and transform a workplace; while a bad manager can derail their own efforts and those of the organisation. Signs of derailment include failure to delegate, attitude of arrogance and insensitivity, bullying and inability to adapt to change (Kaiser & Hogan, 2007). These can lead to reduced individual and organisational performance and have a negative impact on individual health and well-being. See our blog on workplace bullying to understand one significant outcome that poor leadership can have on workers.
Studies vary in their estimates, but Hogan & Kaiser (2005) has advised that managerial incompetence may be as high as 30-75 % in America. Human Capital Online cites research that shows that at least one in nine managers in Australia are underperforming and engaging in harmful behaviours.