ANALYZING LEADERSHIP PRACTICES IN AN INTERNATIONALLY RENOWNED HR COMPANY: WHY DOES PEOPLE-ORIENTED LEADERSHIP MATTER?

Abstract

This article aims to analyse exclusive leadership practices leading to a negative organizational culture at an internationally renowned HR company. It appeared that the organization made systematic and aggressive efforts to prioritize productivity and efficiency over employees’ sentimental needs. This leadership approach constantly imposed fear on employees to discourage them from voicing opinions and questioning the existing conditions. Members of the organization neither had any meaningful communication nor appropriate information exchange. The absence of mutual trust and respect in the work environment eventually led to organizational failure. As a result, the organization experienced a high employee turnover, productivity gradually declined, and the organization’s growth became stagnant. Leadership, who can see the big picture, understands that prioritizing sentimental needs results in overall performance improvement in the long run. It is possible to see the implications of such a leadership mindset in the organizational culture. JEL: J20; J24; L23 Article visualizations: