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Richard Branson and Virgin Group the Narcissistic Leader and Organization

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Richard Branson and Virgin Group the Narcissistic Leader and Organization Richard Branson and Virgin Group The Narcissistic Leader and Organization Nabila Rozano, G.B.W. Willenborg Departemen Manajemen, Kelas Khusus International, Fakultas Ekonomi [email protected] ABSTRAK Tujuan dibuatnya tesis atau skripsi ini adalah untuk mengidentifikasi karakter narsistik pada seorang pemimpin yaitu Richard Branson dan apakah karakter ini mempengaruhi Grup Virgin sehingga menjadi organisasi yang narsistik. Bab tinjau pustaka akan membahas karakter narsistik secara mendalam tidak hanya pada seorang pemimpin tapi juga terhadap organisasi. Diikuti dengan konsep teori lalu fakta dan penemuan dari berbagai sumber. Selanjutnya penelitian akan dilakukan dengan metode kualitatif dan kuantitatif sehingga mendapatkan informasi yang memadai. Dan tesis ini ditutup dengan dasar tinjauan pustaka. Secara singkat dapat disimpulkan bahwa Richard Branson adalah seorang pemimpin yang memiliki karakter narsistik tapi Grup Virgin tidak memiliki karakter tersebut. ABSTRACT The purpose of this thesis is to identify narcissistic leader’s characteristics on Richard Branson and whether he turns the Virgin Group to be a narcissistic organization as well. The literature about narcissism isdiscussed in depth about the leader and organizational context. Then followed by applying the theoretical concepts to the facts and finding from many sources. Furthermore, research will be done with qualitative and quantitative method in order to find sufficient information. And lastly, the conclusions will be based on the literature review. In brief, it is confirmed that Richard Branson is a narcissistic leader and Virgin Group is not a narcissistic organization. 1. INTRODUCTION AND CENTRAL RESEARCH QUESTION Initial Motive It is known that the successof an organization may also depend on the leader apart from other. Leaders are those who provide directions, make decisions, and inspire others to achieve the company’s goals. In order to make decisions, their experiences, preferences, and personality become a strong influence factor. Maccoby (2000) for instance, mentioned that many business leaders have a narcissistic personality. According to Maccoby (2000) by having the narcissistic Richard branson dan grup virgin..., Nabila Rozano, FE UI, 2014 personality, leaders will be more ambitious and capable to do their business.Furthermore, narcissistic CEOs favor bold actions that attract attention that results in either big wins or losses (Chatterjee &Hambrick,2007). Problem Description and Analysis According to Macobby (2000), a person with narcissistic characteristics may turn out to be a great leader. It is interesting to learn about Richard Branson who started his first business since young age and became one of most successful CEOs.In short, Richard Branson is known as a founder and chairman of Virgin Group, which consist of more than 400 companies around the world. Aside from Virgin Group’s success, he also becomes popularly knownbecause ofhis appearance in several events and interviews. During these times he showed his charisma and were able to attract people’s attention toward what he did, which is one of the characteristics of a narcissist. The aim of this thesis is to attestthese presumptions: Richard Branson is a narcissistic leader and the Virgin Group is a narcissistic organization. Furthermore, this thesis also will emphasize the impacts of Richard Branson’s narcissistic personality towards the Virgin Group itself. Consequently, acentral research question can be developed. “ Is Richard Branson a narcissistic leader and isVirgin Group a narcissistic organization? “ Research Questions This central research question results in two sets of research questions. First, theory question that need to be answered using scientific literature and case questions about a particular organization that will be answered using all kinds of literature, scientific, journals, newspapers, etc. A. Theory Questions 1. What is narcissism? 2. What are types of narcissism, characteristics, symptoms, etc? 3. What is a narcissistic leader? 4. What is a narcissistic organization? Richard branson dan grup virgin..., Nabila Rozano, FE UI, 2014 5. How does a narcissistic leader influence the organization? 6. What are the short-term and long-term effects on this influence: on other parties, on strategy, performance, etc? 7. How can a narcissistic leader and narcissistic organization be identified, be diagnosed and measured? 8. How can the effects be measured? B. Case Questions 9. Is Richard Branson a narcissistic leader? 10. Is Virgin Group a narcissistic organization? 11. What is the impactBranson’s personality on the Virgin organization? The next section of this thesiswill be divided into two parts: the first part consists of literature review and hypotheses, and the second part consists of research plan, analysis and discussion and conclusion. 2. LITERATURE REVIEW Narcissism Narcissism, derived from the Greek myth of Narcissus is a young man that falls in love with his own reflection. The term “narcissism” was invented for the first time by Havelock Ellis (1898) to describe a condition of perverse self-love. Narcissism is a relatively stable individual difference consisting of grandiosity, self-love and inflated self-views (Campbell, Campbell, Hoffman, Marchisio, 2011). Additionally, narcissism contains three components; those are the self, interpersonal relationships, and self-regulatory strategies. Nevertheless, narcissism found to be positively related with self-esteem, self-enhancement and the affective intensity (mood- swing) especially following criticism, and the use of singular personal pronouns in speech (Chatterjee &Hambrick, 2007). Types of narcissism, characteristics and symptoms Richard branson dan grup virgin..., Nabila Rozano, FE UI, 2014 A closer look at narcissism confirms for us the linkage between childhood and adult behavior (KetsDe Vries, 2004). Narcissism may arise as the influence of parental failings to provide affection, accepting, and secure context for development (Godkin&Allcorn, 2009).In addition, based on Psychiatric approach, narcissism is associated with personality disorder (NPD) that is characterized by grandiosity, a lack of empathy, and a desire for admiration. In many literatures,authors make various distinctions between different types of narcissism (Campbell et al., 2011; Godkin&Allcorn, 2009; KetsDe Vries, 2004; Lubit, 2002; Maccoby, 2000; Stein, 2013). Campbell et al. (2011) for instance, mentioned there are two types of narcissism in which are clinical and subclinical narcissism. First, clinical narcissism describes narcissism as narcissistic personality disorder (NPD) that refers to an enduring and inflexible character structure associated with grandiosity, a lack of empathy and a desire for admiration. Second, subclinical narcissism, which is the focus of this thesis,describes narcissism as a trait that is normally distributed in the population and for which there is no qualitative cut-off(taxon) for elevated narcissism. The two subsections of subclinical narcissism are healthy and destructive narcissism. The comparisons of the distinguishing characteristics of healthy and destructive narcissism, which are self-confidence; desire for power, wealth, and admiration; relationships; attitude toward authority; ability to follow a consistent path; foundation (Lubit, 2002), are described in details in the appendices. Narcissistic Leader According to Maccoby (2000), narcissistic leader are people who have great visions and a chance to change the rules of the games. There are two types of narcissistic leader, healthy narcissistic leaderand destructive narcissistic leader (Lubit, 2002). First, healthy narcissistic leaders arecharacterized by empathy to master the interpersonal world, self-conscious emotions including shame and envy and a sense of control and power, high-level of confidence that most people equate with competence, have an infectious enthusiasms, charming, able to make fast decisions with seeming ease (Boyett, 2006; Godkin&Allcorn, 2009; Lubit, 2002). Richard branson dan grup virgin..., Nabila Rozano, FE UI, 2014 As the contrary to healthy narcissistic leader, destructive narcissistic leaders are more likely to be linked with the pathological narcissism but with fewer characteristics compare to pathological narcissism (Brown, 1997). Pathological narcissism is described as inability to maintain self-cohesion and increased self-esteem dysregulation, which characterized by arrogant, shy, and psychopathic (Cain, Pincus& Ansell, 2008; Godkin&Allcorn, 2009). Several characteristics of destructive narcissistic leader are grandiosity (inflated sense of self-importance, arrogance, preoccupation with power and wealth, excessive seeking of admiration); a sense that they are entitled to have whatever they want, including willingness to exploit other to get it; and lack of concern for and devaluation of others (Godkin&Allcorn, 2009; Lubit, 2002). Therefore, leader with healthy or destructive narcissistic personality enjoy being powerful, wealthy, and admiration but leaders with healthy narcissism are not obsessed with it (Lubit, 2002). Moreover, the narcissistic leaders will take all the credit for the positive results but bad results will be blamed on the employees since the narcissistic leader will find a reason why he or she is not responsible (Duchon&Drake, 2009) and even though narcissistic leaders consider themselves to be better than everyone else, they are not necessarily accompanied by better results (Rosenthal&Pittinsky,
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