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The Psychology of Organizations: A Social Identity Approach - page 16 / 22

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Social Identity Approach to Leadership

Things that set (or are perceived to set) leaders apart from the group can undermine the effectiveness of their leadership.

At the start of C20 J.P. Morgan noted that the only feature shared by his poorly performing clients was a tendency to overpay those at the top of the company (Drucker, 1986; see also Hollander, 1995).  

Very high salaries at the top, concluded Morgan — who was hardly contemptuous of big money or an ‘anti-capitalist’ — disrupt the team. They make even high-ranking people in the company see their own top management as adversaries rather than as colleagues. ... And that quenches any willingness to say ‘we’ and to exert oneself except in one’s own immediate self-interest. (Drucker, 1986)

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