His visits in certain divisions of his company determine increased tension among his employees and their superiors.
In addition to this, Murdoch's authoritative style determines his employees to follow the rules he establishes. His leadership style does not allow his subordinates to consider him a CEO, but a dictator they must fear. His style does not seem to be constant. This is because he is known for actions based on his mood. His behavior around employees is also in accordance with different requirements determined by the company's activity. This does not help create a stable work environment for employees.
The recruitment and selection process developed by Murdoch is based on aspects that are considered improper by human resources specialists. He sometimes employed editors that he thought liked him. The leader in this case did not develop strategies intended to identify employees able to address the demands of these positions.
Some leaders allow their subordinates to establish the rules among them and to build the environment in which they prefer to work. This refers to decentralization. Rupert Murdoch does not seem to agree with such an approach. He prefers to interfere with work relationships in the divisions of his company.
Experts that have studied the situation at News Corp have observed that Murdoch prefers to apply centralized management processes. He does not delegate power to his subordinates. News Corp is organized based on traditional management structures and clearly established lines of authority, but Murdoch makes all the important decisions. The company's strategy and objectives are established by Murdoch, although he is sometimes interested in the advice of specialists.
Given Murdoch's behavior, his subordinates cannot progress and improve their skills. This is because they are not allowed or encouraged to express their opinion, to get involved in the decision making process, and to participate in establishing the company's strategy. They are only expected to do their job, and in accordance with their performance they are rewarded.
Therefore, employees cannot develop loyalty towards the company. They feel that the company is interested in their performance, and not in the development of their potential. They consider that the company is not sufficiently investing in them. As a consequence, their interest, efforts, and investments in the company's activity are likely to be reduced.
Murdoch's behavior towards his employees is also based on divide and rule policies. This is intended to make employees vulnerable. This serves the interests of an authoritative leader that is considered a dictator by his employees. The reasons behind this situation rely on the fact that Murdoch considers that vulnerable employees are easier to control. His assumption is correct, but it does not mean it is also efficient.
By creating a work environment characterized by fear, tension, lack of friendliness, support, and encouragement for employees, Murdoch intended to improve the control on his company, which was supposed to help him increase the productivity and efficiency of his staff. Instead, this type of environment creates improper work conditions that lead to reduced efficiency.
The effects of this leadership style on Murdoch's employees were significant. As stated in the case study, this workplace environment determined numerous nervous breakdowns from the company's employees. In other words, this type of behavior can threat the mental health of the company's staff. It is likely that most specialists in the field would not approve with this type of behavior. Experts recommend that the workplace environment is characterized by stability, encouragement and support for employees, and others. Such factors of influence did not seem to interest Rupert Murdoch.
Although Murdoch seemed authoritative by nature, this does not explain his dictatorial style towards his employees. As mentioned above, authoritative leadership is useful in situations that require control from top management. However, there is a big difference between authoritative and dictatorial leadership. Increased control levels within the company are not the same thing with terror and fear among employees.
Rupert Murdoch's style and behavior around employees was described as calculated terror. This means that Murdoch focused on inspiring fear among his employees and terrorized them in order to follow his orders. By this behavior Murdoch intended to reduce the individuality and personal ideas that his subordinates might want to express. This way, it was easier for Murdoch to impose his ideas and to reduce the resistance from subordinates.
The fact that this leadership style and behavior is considered calculated refers to the fact that Murdoch was aware of his behavior and its effects. His actions regarding the fear that he imposed among his subordinates are intentional. In other words, his dictatorial behavior cannot be attributed...
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