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HRM Review Magazine:
Leadership Failure : Lack of Understanding in the Leader-Follower Relationship Results in Labor Disputes, Job Dissatisfaction and Low Productivity
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The economic impact of the banking crisis is being felt all around the globe elevating employee stress and likely hurting productivity. According to the Committee on Elimination of Waste in Industry of the Federated American Engineering Societies, "The major causes of strikes are occasioned by demands for increase in wages, recognition of the union, decrease in working hours and by jurisdictional disputes." However, the committee adds that, "Incidental to these causes and often aggravating them are the working conditions, while in almost every case the prime factor is the lack of understanding and failure of the employers and the workers to get together." This article contrasts organizations with traditionally negative leadership (in regards to employee relationships), with organizations utilizing a leadership style that is participative and employee-friendly, allowing employees to be productive and valued during this economic crisis.

 
 
 

On May 19, 1920, detectives of the Baldwin-Felts Detective Agency and miners of Matewan, WV engaged, arguably, in the most famous labor battle in the US, leaving seven detectives and two miners dead. In 2004, the world's largest retailer, Wal-Mart, received a class-action lawsuit alleging Wal-Mart "avoided paying employees their full, earned wages". This "failure…to get together" occurs in the vacuum of effective and positive leadership left by both the employing and labor organization as neither adequately address the needs of the leader-follower relationship. The purpose of this article is to examine the leadership methodologies of six notable US companies (both positive and negative in perceived leadership qualities) drawing a correlation to labor disputes, job dissatisfaction and low productivity.

Although labor disputes were more prominent in manufacturing and mining-related industries in the first half of the 20th century, employee dissatisfaction and labor disputes continued in the US even as the economy became more service-oriented. Labor disputes grew throughout the 20th century and continue to do so in the 21st century without regard to job classification, employee educational level or era of time. What is consistent, however, is that the treatment of employees by management (leaders to followers) has an effect on productivity which ultimately effects profitability. As discussed in the following six companies, anecdotal evidence suggests a correlation between leadership style and connectivity with the outcomes of job satisfaction, employee turnover and productivity.

 
 
 

HRM Review Magazine, Leadership Failure, Banking Crisis, Federated American Engineering Societies, Labor Organization, Leadership Methodologies, Consumer Price Index, Coal Mine Operations, Coal Industry, Steel Industry, Automobile Industry.