Economists' Perspectives on Leadership
By: and
Sign Up Now!
Already a Member? Log In
You must be logged into Bookshare to access this title.
Learn about membership options,
or view our freely available titles.
- Synopsis
- The authors of this chapter acknowledge that leadership has received limited attention in economics. They note that classical economics treats the firm as a "black box" production function, ignoring the role of leadership. Building on the principal-agent framework, they introduce an economic model of leadership that defines an organizational leader's challenge as credibly communicating a mission that enables coordinated actions by followers in the face of potential changes. First, the leader receives information about the environment and defines a mission statement-the vision component of leadership-and communicates it to followers. Next, followers, using their own information about the environment, choose a course of action. After this, the leader gets new information about the environment, which is incorporated into a strategy for implementation. High payoffs result from a well-coordinated execution of strategy that is also well suited to the organizational context. This chapter was originally published as Chapter 9 of "Handbook of Leadership Theory and Practice: A Harvard Business School Centennial Colloquium."
- Copyright:
- 2010
Book Details
- Book Quality:
- Publisher Quality
- Publisher:
- Harvard Business Publishing
- Date of Addition:
- 08/02/16
- Copyrighted By:
- HBS Press
- Adult content:
- No
- Language:
- English
- Has Image Descriptions:
- No
- Categories:
- Nonfiction, Business and Finance
- Submitted By:
- Bookshare Staff
- Usage Restrictions:
- This is a copyrighted book.