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While top management remains relatively immune from such cuts, staff workers, line workers, and middle managers are being caught in the squeeze. For those middle managers in the survivor role, the reward is just more work and increased anxiety.
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How leadership styles can ameliorate employee stress is the subject of an October 2009 Leadership Quarterly article titled, “The Effects of Leadership Style on Stress Outcomes“ by Joseph Lyons and Tamera Schneider. This article looks at the effect that transformational and transactional leadership styles have on a variety of subordinate outcomes during conditions of stress.
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ames MacGregor Burns called Leadership. Burns thought that transformational leadership occurs when leaders raise followers to higher levels of motivation, morality, and attainment.
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Enhanced task performance;
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Higher social support perceptions;
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Greater task-specific self-efficacy beliefs;
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Lower negative affect; and
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Lower threat appraisals.
Relative to the two transactional leadership styles, the transformational leadership style was associated with:
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this study shows that a transformational leadership style involving inspirational motivation, idealized influence, individualized support, and intellectual stimulation were able to favorably impact a number of stressor outcomes in an experimental situation using primarily young college-aged adults.
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Talking about company values and direction (75 percent);
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Talking about the company’s financial performance (71 percent);
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Spending time informally with employees (62 percent);
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Supporting programs that help employees improve their skills (54 percent);
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Mentoring one or more employees (50 percent);
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Recognizing high performance (50 percent).
While transformational leadership is a complex phenomenon, perhaps it is helpful to look at the practical, applied aspects on one of the four dimensions, inspirational motivation. The McKinsey “Leaders in the Crisis” survey mentioned earlier offers insight into how many CEOs are motivating and informing subordinates during these stressful times. According to the survey, 50 percent or more of the CEOs reported taking these actions:
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Apart from helping subordinates deal with stress, top leaders need to take care of their own emotional health, too. Part of this involves taking the right attitude towards events and developing an inner toughness. Seen from a higher perspective, stress is a kind of evolutionary goad. It’s the external world saying to us, “Here is a hurdle. Can you summon up the inner strength to jump over it? Can you grow? If not, can you deal with adversity, even if things appear overwhelming for now?” It is important to frame a “win” on the inner even though events look bleak on the outer.
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