1. Introduction and Central Research Narcissistic CEOs and Question : 1.1 Introduction The portrayal of people’s characteristics in The Case of Elon Musk top executive positions is associated with and Tesla Motors Inc. the influence to the organizational effectiveness (Chatterjee &

Dhanes Danarjati Soepono Hambrick, 2007). is one of the 1206291033 boldest characteristics that has been investigated by researchers and psychoanalysts. In real life application, ABSTRACT they classify Steve Jobs, Jeff Bezos, and Bill Gates as productive narcissistic Narcissism is one of the characteristics leaders because of their courageous that influences the organizational personality in pushing society through the leadership effectiveness. According to enormous changes that society couldn’t do researchers and psychoanalyst, it is a it normally. However, when the leaders trade-off characteristic where it delivers have inadequate self-knowledge that leads positive impact but has negative them to be unrealistic dreamers, they consequences in some context. This study become unproductive narcissistic leaders aims to investigate the narcissism of CEOs (Maccoby, 2004). and organizations. In specific, whether Elon Musk is a narcissistic leader and A large number of business CEOs have a whether Tesla Motors itself a narcissistic grandiose set of beliefs that exaggerate are focused in this study. To their self-esteem over others to the degree determine the characteristics of narcissistic that they neglect other’s opinion. CEO, this study uses the DSM-IV from Moreover, a harmful relationship that is American Psychiatric Association (2002). deriving out of long term relation can be Whereas, Godkin and Allcorn (2009) found as the negative impact from criteria is used to analyze the narcissistic narcissism. Narcissism and leadership are trait of the organization. In this study it is linked from the evidence that narcissist not necessary to execute the research plan, tends to hold a position where they can so the preliminary answer is based on the achieve self-enhancement needs and literature and hypotheses. As a preliminary dominance (Campbell & Campbell, 2009). answer, the CEO Elon Musk of Tesla It is probably best to think as a trade-off Motors is a narcissist. However, this study characteristic where it delivers positive finds Tesla Motors is not a narcissist impact but has negative consequences in organization. Nonetheless, this conclusion some context. Therefore, it became a could not be finalized as it does not have significant concern to hire or work with a the complete data concerning Tesla Motors narcissist (Campbell, Hoffman, Campbell, narcissism. & Marchisio, 2011).

Keywords: Narcissism, CEO, According to Mckinsey & Company Organization, Elon Musk, Tesla Motors (2016), it seems that the world has Research theme: Narcissistic CEOs and changed rapidly, from technological Narcissistic Organizations. innovation to the emergence of business Supervisor: G.B.W. Willenborg models, then lastly to consumer behavior and loyalties. As a result, demand for high- tech cars has increased in automotive industry (Gao, Kaas, Mohr, & Wee, 2016).

1 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 Based on Maxxor.com (2016), it is stated Elon Musk is indicated as a classic that one of the companies that have productive narcissistic leader (CNBC, contributed in shaping future’s electric 2015). However, there is no empirical cars is Tesla Motors Inc. Tesla Motors is evidence related the Musk’s narcissistic an automotive manufacturer and energy leadership and the performance of the storage company headquartered in Tesla Motors. Later on, this thesis analyses California, United States. Elon Musk the indication of the influence and joined the company as a chairman in 2004 relationship between the leadership of and became the CEO in 2008. Tesla Elon Musk and the performance of Tesla Motors focuses on developing electric Motors. cars, powertrain components, and battery charging equipment. Elon Musk declared The purpose of this research is to provide on the company’s website that the Tesla’s further analysis about the correlation of mission is to transform the world’s CEO narcissism and organization, also the consumption energy in transportation to a influence of narcissistic characteristics sustainable energy (Tesla Motors, from CEO on the organization through the November 2013). case of the CEO Elon Musk and Tesla Motors Inc. Elon Musk’s occupation is not only being a CEO in Tesla Motors Inc., but also in 1.2 Central Research Question SpaceX (aerospace company), and a There are several indications stated that chairman of energy services company the CEO of Tesla Motors can be classified called SolarCity. There are some evidence as a narcissist CEO (CNBC.com, 2015). that Elon Musk is a narcissistic CEO. For However, there is no empirical evidence instance, in CNBC News, Elon Musk is that supports the statement. In order to stated as a classic productive narcissist. analyze whether the CEO or the The statement is due to his grandiose organization is a narcissist, this study vision to colonize Mars to build a focuses on the central research question safeguard of mankind’s existence if something catastrophic happens (CNBC, Is Tesla’s CEO Elon Musk a narcissistic 2015). Moreover, several biographies leader, and Tesla Motors itself a about himself were published such as narcissistic organization? “Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future” containing the daily Moreover, some research questions will be life of Elon Musk, how he handles various examined throughout the study. These businesses, visions the human race research questions are to answer the colonized Mars, and dreams to change the central research question through two sets world through extraordinary ways. His of research questions. First, the theory work on Tesla Motors was appreciated by questions will be constructed using the Inc. Magazine as a winner of Entrepreneur scientific literature in order to of the Year in 2007. He was also listed as accommodate the theoretical foundation. one of the 100 people who affected the Second, the case questions will be world in 2010 on Time Magazine. constructed using all kinds of literature such as scientific journals, newspapers, Tesla Motors’ major growth is associated rumors, and articles about the case of with the influences from management style Tesla Motors and its CEO Elon Musk. The of its CEO. One of the substantial factors theory questions are: that could affect the company is the 1. What is narcissism? leadership directions given by Elon Musk. As it is stated earlier in the CNBC News,

2 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 2. What are the characteristics or 2. Literature Review symptoms, and types of Theoretical Concepts narcissism? This section explains the theoretical 3. What is a narcissistic leader? definition, characteristics, types of 4. What is a narcissistic organization? narcissism, and the description of 5. How does a narcissistic leader narcissistic leader and narcissistic influence the organization? organization. Then, the process of 6. What are the short-term and long- narcissistic leader to influence the term effects of this influence? organization, the short or long term effects 7. How can a narcissistic leader and of narcissists influence, and the description narcissistic organization be to measure narcissism will follow. identified, diagnosed and measured? 2.1 Definition of Narcissism It was all originated from the Greek Deriving from the existing information mythology, where a young man named based on scientific theory, this research captivated with his own can analyze information about the reflections mirrored from a pool of water. organization through particular questions, The term narcissism itself was widely concerning Tesla Motors and its CEO Elon made known by in his Musk. The case questions are: essay called (1914), which 1. Is Elon Musk a narcissistic leader? was used to describe a pursuit excessive 2. Is Tesla Motors a narcissistic enjoyment of oneself that leads to needing organization? admiration. Based on Diagnostic and Statistical Manual of Mental Disorders 1.3 Methodology (DSM IV-R) made by American This thesis includes several sections. The Psychiatric Association, narcissism is first section consists of an introduction of described as a pervasive pattern of the study including the central research , need for admiration, and lack question. Next, the second section is about of to others that begins in the the literature review that includes two early adulthood and presents in a variety of parts which are theoretical concepts and contexts. Moreover, there are three case information. In order to test the fundamental components of narcissistic central research question about the which are the self, interpersonal organization and its narcissistic leader, relationships and self-regulatory strategies specific hypotheses were formulated in the (Campbell et al., 2011: 269). Firstly, a third section. Whereas, in the section 4 the self-character is indicated by having a research plan for the empirical research sense of such as “specialness” will be presented with the detailed and uniqueness in compare to others which description of the topics. In this study, it lead to the desire of power and high self- was not necessary to execute the research esteem. Secondly, narcissist tends to have plan, therefore there are no data to analyze an insignificant relationship deriving from to discuss in section 5. Lastly, the section lack of empathy and emotional intimacy. 6 consists of conclusion and Thirdly, self-inflated views will impact the recommendations deriving from the strategies in which he/she developed. For literature and the hypotheses, followed by instance, a narcissist will pursue a higher the reflection part to identifying strengths, opportunity for admiration. Moreover, it is weaknesses, and limitations of this study. possible that narcissist tends to steal credit Furthermore, suggestions for future study from others. In result, narcissist gains will be provided at the end of this section. higher self-esteem and life satisfaction

3 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 from it (Sedikides, Rudich, Gregg, entitlement, interpersonally exploitative Kumashiro, & Rusbult, 2004). and arrogant. Second, there is vulnerable narcissism that is characterized by more At the same time, narcissism can be seen hostile, perceived the world is cruel, has in two approaches. The first one derives low self-esteem even though high in from clinical approach (psychiatric psychological entitlement, easy to be literature) that leads to personality depressed and anxious (Miller & disorder. The second approach derives Campbell, 2008). While grandiose from subclinical approach (social- narcissism is associated with antisocial personality literature) that conceptualizes personality and psychopathy, vulnerable narcissism to be more like normal narcissism is associated with unclassifiable variables similar to self-esteem (Paulhus & personality disorder. In the context of Williams, 2002). leadership and decision making, it is more appropriate to focus on grandiose narcissism (Campbell, et al., 2011: 270). 2.2 Characteristics of Narcissism There is a two-sided impact of narcissistic. Furthermore, the self-report NPI (Raskin On one side, it stimulates playfulness and & Terry, 1988) is used by majority of imagination, while on the other side, it research to measure the level of grandiose initiates personality disorder (Maccoby, narcissism. 2004). In accordance with DSM IV-R by American Psychiatric Association (2002), 2.4 Definition of Narcissistic Leader Narcissistic Personality Disorder can be A narcissistic leader is not just a narcissist diagnosed if the person exhibits five of the with its character, but also by having the nine characteristics. Those characteristics position to control the organization, a are: narcissist can gain a lot more power that 1. Has grandiosity sense of superior leads the person to be more impactful. In treatment from others determining the characteristics of 2. Preoccupied with fantasies of narcissistic leadership, we can see it from unlimited success the action of the leader. For instance, a 3. Believes he/she has unique status leader who acts largely based on their own 4. Sense of high entitlement self-possessed needs and perspectives that 5. Craving for constant admiration precede the needs and perspectives of the 6. An absence of empathy co-workers and company is a narcissistic 7. Exploitative of others leader (Rosenthal & Pittinsky, 2006). 8. Intensely jealous Narcissist’ needs of self-enhancement and 9. Shows arrogant behaviors superiority will be fulfilled in a leadership position as it is a natural venue to gain the 2.3 Types of Narcissism need of power, prestige, and a role where Grandiose narcissism and vulnerable it is possible to manipulate others narcissism are two forms of narcissism (Campbell & Campbell, 2009). Narcissists that mainly discussed in the academic CEO such as Jack Welsch, Bill Gates, research and practice. First, grandiose Andy Grove, Steve Jobs, Jeff Bezos have narcissism is expressed by someone who been complimented due to their passion, has overconfident, extraverted, high self- vision and innovation, while convicted to esteem, dominant, attention seeking, have lack of empathy and oversensitive to interpersonally skilled and charming, criticism at the same time (Campbell et al., while on the other side tends to reluctant 2011: 272, Maccoby, 2004). against criticism, more aggressive, lack of empathy, high in psychological

4 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 Narcissistic leader can be classified into 4. There is a history of firings and two contrasting sides which are productive demotions and of non-supporters and non-productive narcissist. A and resistors being banished to successful narcissistic leader supported by internal organizational. the risk taking behavior, charming, and has 5. Management by intimidation is a clear follower. On the other hand, non- common. productive leader generally supported by 6. Fear suppresses accurate reality the feeling of grandiosity and paranoia testing and creativity. (Maccoby, 2004). To see a broader impact 7. Filtered information flows alter of narcissistic leadership, it is better to organizational reality and magical understand another aspect of clinical thinking is present. psychology definition, such as narcissistic 8. Others are frequently blamed and organization. scapegoated. 9. The sense of mood within the 2.5 Definition of Narcissistic organization is unpredictable. Organization 10. Many in the organization are Narcissism is a term to describe self- alienated from the organization and absorbed person that shows strong sense of its leadership group preferring to importance and uniqueness. In addition, hide out in their foxholes (offices just like people, organizations reflect a and cubicles). strong sense of importance and uniqueness 11. In and out group dynamics are through the development of common polarized. commitments, practices, and shared values about its identity on the qualities of 2.6 The Process of Narcissistic Leader to narcissism (Duchon & Burns, 2008). Influence the Organization Furthermore, an extreme narcissistic As it is stated earlier, narcissistic CEO can organization can be defined as an affect company’s future orientation due to organization that pursues self-justify in its executive position (Chandler, 1962; their activities no matter what, with Finkelstein and Hambrick, 1996). insufficient implication to market Researchers have been undertaking responsibility, civil responsibility, or investigation about the impact of moral concerns (Ganesh, 2003). narcissistic personalities through locus of control (Miller, Kets de Vries, and According to Godkin and Allcorn (2009), Toulouse, 1982), need for achievement the DSM IV provides the characteristics of (Miller and Droge, 1986), and tolerance narcissistic organization. To diagnosed as for risk to organization (Gupta and an arrogant organization disorder, seven Govindarajan, 1984). In result, there are out of eleven characteristics must be some significant connections between present which are: executive’s personality and organizational 1. Exceptional pride is held for the outcomes. Moreover, narcissism can play organization, its accomplishments two strategic roles in a company and great hope is held for future (Chatterjee & Hambrick, 2007). First, successes. narcissist’s optimism and high 2. Feelings of exceptional entitlement will shift the reality of the payoffs. In this support exploitiveness of others, case, the CEO tends to only see what the customers and public interest. CEO wants to see, and hear what the CEO 3. When excessive pride is threatened wants to hear (Postman, Bruner, and and the pursuit of goals frustrated, McGinnies, 1948; Weick 1979). Second, it and rage arise. may affect the choices of executives due to the direct effect of preference ordering.

5 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 For instance, Thompson (1967) illustrates term leadership positions. For this that the executives use the organization as situation, narcissistic leader is best to a “tool” to fulfill its own personal needs. move from one leadership position to Therefore, narcissistic CEOs tend to make another leadership position so the powerful extreme performance and fluctuate the strength will compensate (Campbell, company’s performance in order to fulfill 2011). their novel and dramatic needs (Chatterjee & Hambrick, 2007: 358). 2.8 The Diagnosis and Measurement of 2.7 The Short-term and Long-term Narcissistic CEO and Organization Effects of Narcissism In this study, the diagnosis of individual While the effectiveness of narcissist leader narcissism is measured by Narcissistic remains ambiguous, it shows that Personality Inventory (NPI), deriving from narcissist is inclined with both bright and DSM III (Raskin & Terry, 1988). At first, dark side behavior. For instance, strong the NPI consists of 40 items. However, it social skills, charisma, and willingness to was considered as long and inefficient. take big risks are supporting behavior on Thus, the 40-items version was developed the bright side. However, the likeliness to into 16-items version (Ames, Rose, & endeavor others, bring down quality Anderson, 2006). There are other several relationships, and taking dishonest self-report measurements, such as shortcuts are supporting behavior on the California Psychological Inventory, dark side. Moreover, narcissist only Hypersensitive Narcissism Scale (Wink & foresees the good outcome for themselves Gough, 1990) and Pathological Narcissism but endows the bad outcome for others that Inventory (Pincus, 2009). Accordingly, have close relation with them. this study investigates the organization narcissism based on Godkin and Allcorn’s From the contextual reinforcement model criteria (2009). Furthermore, Organization (Campbell, & Campbell, 2009), the Narcissism Scale is used to measure the influence of narcissism can be seen in narcissism organization (Hamedoglu & short and long term. First, in short term Potas, 2012). The ONS measures 5 sub- (emerging zone), a narcissist tends to dimensions such as Authority, influence the organization strategic Anticipation of Recognition, Grandiosity, outcomes such as number and size of Self-Admiration and , and acquisitions and big wins and losses that Exhibitionism. cause extreme company performance (Chatterjee & Hambrick, 2007). This is See Appendix B for the complete list. due to the fact that narcissist has a bold, distinctive, and dramatic characteristic Hence, after understanding the theoretical (Hogan & Hogan, 2001). Whereas, in long concept of narcissism based on academic term (enduring zone), a narcissist tends to literatures, this study will systematically affect the organization morale, apply the theory to the case of CEO Elon development, and employee’s retention Musk and Tesla Motors in the next (Lubit, 2002). For instance, narcissist section. manager is more likely to disregard the functional requirement, the needs of Case Information others, pursuit self-interest, and cannot In this section of literature review, it tolerate the subordinate’s success who consists of relevant information regarding threatens to outshine. the theoretical application to the case of CEO Elon Musk and the organization Thus, narcissism is favorable in new Tesla Motors to narcissistic behavior. leadership positions but destructive in long First, the diagnosis of the narcissistic

6 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 leader will be based on DSM IV-R by a risk-taker that illustrates he could American Psychiatric Association (2002). transform three industries (energy, Second, the diagnosis of narcissistic automotive, aerospace) at a time. organization derives from Godkin and Allcorn (2009) criteria based on DSM IV. 4. Has sense of high entitlement There is no evidence shows that Elon 2.9 The Diagnosis of Elon Musk as a Musk has a sense of high entitlement. Narcissistic Leader Therefore, this study concludes that Elon The analysis is conducted according to Musk does not have this characteristic. DSM IV-R (APA, 2002) in order to answer whether Elon Musk is narcissistic 5. Craving constant admiration leader. In the Business Insider news (BusinessInsider.com, 2014), it is stated 1. Has grandiose sense of superior that Elon Musk was angry because he was treatment from others not getting enough press attention. Derived Elon Musk might have grandiose sense of from his email to Martin Eberhard (CEO superior treatment from others. Based on of Tesla until 2006) and Mike Harrigan his speech in International Astronautical (VP of marketing) on July 20, 2006, stated Congress 2016, he explained himself to be “I was incredibly insulted and embarrassed the first man who has capabilities to send by the New York Times article, where I people to live on Mars in 2022 am not merely unmentioned, but where (Bloomberg.com, 2016). Martin is actually referred to as the chairman. If anything like this happens 2. Has fantasies of unlimited success again, please consider the PCGC (public Elon Musk is indicated to fantasize relations firm) relationship with Tesla to unlimited success like he always illustrates end immediately upon publication of such on SpaceX’s mission that he wants to a piece. Please ensure that the NYT change the human species into a multi- publishes a correction as soon as possible.” planetary species and on Tesla’s mission Also, according to the CNN Perspectives that he could change the world through video in 1999 about Elon Musk, he stated replacing the world’s consumption on that he would like to be the cover of The fossil fuel to sustainable energy such as Rolling Stones Magazine electric battery and solar panel. As he said (Youtube.com/EveryElonMuskVideo, “I’ve actually made a prediction that 2014). within 30 years a majority of new cars made in the United States will be electric. 6. A lack of empathy And I don’t mean hybrid, I mean fully There is no evidence that Elon Musk is electric (pbs.org, 2008).” lack of empathy. Therefore, this study assumes that Elon Musk does not have this 3. Believes he is special and has unique characteristic. status In several interviews (TrendGuardian, 7. Is interpersonally exploitative 2012; EconomyTrivia, 2015; Bloomberg, Mike Harrigan as a Vice President of 2016) Elon Musk believes that he is marketing for Tesla in 2006 told the ambitious, dares to dream big, and a risk- Business Insider news that as soon as Elon taker, as he has revolutionized space Musk convinced that the employees can’t travel, electric cars, online payments, and do the job there is no way you can on the mission to colonize Mars by 2022. convince him to be back on the job again Even in Bloomberg Business Channel, (BusinessInsider.com, 2014). Elon Musk has its own exclusive feature as

7 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 8. Intensely jealous website named Indeed.com, Tesla Motors Based on Business Insider, Elon Musk was got 3.6 out of 5 stars of employee’s so affected by the lack of recognition. Elon satisfaction. Some employees stated that threatened to fire a Tesla’s senior member Tesla Motors changes the world. if he, as the coordinator of Tesla’s press, did not get him more press. Deriving from 2. Feelings of exceptional entitlement the situation in 2006 where Elon was support exploitiveness of others, unmentioned and Martin Eberhard stated customers, and the public interest. as a chairman by The New York Times According to Tesla employee’s opinion Magazine (BusinessInsider.com, 2014). (Quora, 2016), working at Tesla Motors is time-consuming, restless, really The actual e-mail is provided in Appendix challenging, even Tesla’s employees could E. not have another life other than working inside the cubicle. Additionally, a former 9. Shows arrogant behaviors technician said that the company pays its Elon Musk is not afraid to fire people who employees at a very low wage in compare do not support his dream. If someone to its revenue, while the working hour is perceives the dream is impossible, Elon very long. (Indeed.com, 2015) Musk will kick them out of the company. Based on MIT Technology Review, there 3. Filtered information flows alter is a statement saying that “Elon Musk is organizational reality and magical known for humiliating engineers and firing thinking is present. employees on a whim” Deriving from Tesla Motors’ current (TechnologyReview.com, 2015), and from employee (Indeed.com, 2016), Tesla is a other source it is stated that Elon Musk company that does not have a well said that one of his employees is “brain communication between upper and lower dead” due to the situation where Tesla had level, and does not take feedback from short expected sales, earnings, and cash employees. flow figures (TheSustainableInvestor.com, 2015). This study does not find any evidence about Tesla Motors characteristics that: 2.10 The Diagnosis of Tesla Motors as a 1. When excessive pride is Narcissistic Organization threatened and the pursuit of goals In this section, it will elaborate the frustrated, envy and rage arise. analysis whether Tesla Motors is 2. There is a history of firings and narcissistic organization according to demotions and of non-supporters Godkin and Allcorn (2009). and resistors being banished to internal organizational. 1. Exceptional pride is held for the 3. Management by intimidation is organization, its accomplishments common. and great hope is held for future 4. Fear suppresses accurate reality successes. testing and creativity. Chandramouli V, an engineer at Tesla, 5. Others are frequently blamed and said that working at Tesla is fantastic, scapegoated. according to the discussion forum at 6. The sense of mood within the Quora.com. He believes that each worker organization is unpredictable. is so passionate, highly skilled, and highly 7. Many in the organization are talented. He also said that every day is a alienated from the organization new challenge to learn something new. and its leadership group preferring Moreover, derived from a job reviewer

8 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 to hide out in their foxholes is narcissistic CEO and whether Tesla (offices and cubicles). Motors is a narcissistic organization. In 8. In and out group dynamics are order to classify both subjects, the polarized. hypotheses are divided into two part. The first part is concerning about Elon Musk, 2.11 Preliminary Answer to the RQs and the next part is about Tesla Motors. Deriving from the preliminary While the characteristics of narcissism of investigation of the CEO and the Elon Musk will be based on American organization to the DSM IV, this study Psychiatric Association (2002), the finds that Elon Musk possesses seven out organization characteristics will be based of nine criteria. Those criteria are: on Godkin and Allcorn (2009). There are 1. Has grandiose of sense of superior two types of hypotheses, the null treatment from others. hypothesis (H0) means that the hypothesis 2. Has fantasies of unlimited success is not supported or rejected, while H1 3. Believes he is special and has means that the hypothesis is supported. unique status 4. Craving constant admiration 3.1 Hypothesis Testing for Elon Musk 5. Is Interpersonally exploitative Hypothesis 1: 6. Intensely jealous H1: Elon Musk has a grandiose sense of 7. Shows arrogant behaviors self-importance.

Therefore, these indications show that Hypothesis 2: Elon Musk is a narcissistic leader. H1: Elon Musk is obsessed with fantasies Whereas, in determining Tesla Motors is a of success, intelligence, and power. narcissistic organization or not, this study uses Godkin and Allcorn’s (2009) eleven Hypothesis 3: criteria. The organization appears to have H1: Elon Musk believes in special status. three out of eleven characteristics, which are: Hypothesis 4: 1. Exceptional pride for the H1: Elon Musk needs a constant organization, its accomplishments admiration from others. and great hope is held for future success. Hypothesis 5: 2. Feelings of exceptional entitlement H1: Elon Musk has a sense of entitlement. support exploitativeness of others. 3. Filtered information flows alter Hypothesis 6: organizational reality and magical H1: Elon Musk is interpersonally thinking is present exploitative. Thus, this shows that Tesla Motors is not a narcissistic organization. Hypothesis 7: H1: Elon Musk has a lack of empathy. Nevertheless, due to the limitations of information from the Internet, further Hypothesis 8: research is needed to provide a complete H1: Elon Musk is often envious of others. conclusion. 3. Hypotheses Hypothesis 9: H1: Elon Musk shows arrogant attitudes. This section lists the hypotheses about Elon Musk and Tesla Motors. The 3.2 Hypothesis Testing for Tesla Motors hypotheses consist of whether Elon Musk Hypothesis 1

9 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 H1: Tesla Motors has exceptional pride for H1: In and out group dynamics are the organization, its accomplishments and polarized in Tesla Motors. great hope are held for future successes.

Hypothesis 2 H1: Tesla Motors has exceptional feeling of entitlement and supports exploitiveness of others, customers, and the public interest.

Hypothesis 3 H1: When the excessive pride of Tesla Motors is threatened and the pursuit of goals frustrated, envy and rage arise.

Hypothesis 4 H1: There is a history of firings and demotions and of non-supporters and resistors being banished to internal organizational in Tesla Motors.

Hypothesis 5 H1: Management by intimidation is common in Tesla Motors.

Hypothesis 6 H1: Fear suppresses accurate reality testing and creativity in Tesla Motors.

Hypothesis 7 H1: There is filtered information flows alter organizational reality and magical thinking in Tesla Motors.

Hypothesis 8 H1: Others are frequently blamed and scapegoated by Tesla Motors.

Hypothesis 9 H1: The sense of mood within Tesla Motors is unpredictable.

Hypothesis 10 H1: Many employees in Tesla Motors are alienated from the organization and its leadership group preferring to hide out in their foxholes (offices and cubicles)

Hypothesis 11

10 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 4. Research Plan approach because this is the most reliable This section provides the detailed method to represent the overall population. description regarding how the research is In addition, this method provides a more going to be conducted in order to test the accurate outcome that this study aims for. hypotheses. It includes the explanation This study needs an approximate sample about the research method, data collection, size around 1400 members with 90% and data analysis. In this thesis, it is not expected response in order to avoid the necessary to execute the research plan. sample bias. The sample size should be Also, it is assumed that the research plan enough to represent Tesla’s departments, will be executed with the full cooperation as it is made possible by the accessibility from both CEO and the organization. of the sample. Moreover, the data collection will be conducted by a market research company. 4.2 Measurement and Measures In this section, the operationalization 4.1 Population and Sample regarding the measurement and the method This study aims to focus on Elon Musk of the survey will be explained, as well as and Tesla Motors. This research will be survey method selection and construction. using the primary data as the source of the Whilst, there are two factors to be data. The population will be around 14,000 understood such as fundamental ideas as it is the approximate total number of involved in measuring and the different employees in Tesla Motors (Tesla Motors types of measures Annual Report, 2015). The reason that this (SocialResearchMethod.net, 2016). study using this population because of the people inside the organization is the most 4.2.1. Operationalization accurate source of information about the Deriving from DSM III criteria, NPI CEO and the organization. Due to its (Narcissistic Personality Inventory) is used limitation to gather the data in such big to measure the narcissism characteristics. number, it is best to use the sampling There are general construct of narcissism method (Socialresearchmethod.net, 2016). consisting of seven components such as The sample group should fulfill the (Raskin, & Terry, 1988): Authority, criteria, which are: Exhibitionism, Superiority, Vanity, Exploitativeness, Entitlement, and Self- 1. Members should become a part of Sufficiency. At first, these 7 factors were Tesla Motors management. extracted from 47 items. However, seven 2. Members should have been of the items were dropped due to its working in Tesla Motors for at inconsistent to the NPI. So, the researchers least 1 year. concluded that only 40 best items that are 3. Members should have met and relevant to measure NPI (Raskin, & Terry, interacted with the CEO in person. 1988).

To define the sample, the proportionate Narcissism can be classified as a stratified random sampling will be used. personality dimension where the CEO can The sample will be divided into an equal score from low to high narcissism score group that represents all the departments (Rijsenbilt, 2011). From the 40-NPI and division inside Tesla Motors. The questions, if the answer resulting total departments that exist are Worldwide score above 20, it is indicated to be a Services & Deliveries, Autopilot Hardware narcissist. While the total score between Engineering, Manufacturing, North 12 and 15 is the average score America Sales, Powertrain Operations, and (psychcentral.com). Vehicle Engineering. This study uses this

11 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 Next, to measure the organization The data about respondents that are narcissism, the Organization Narcissism available are: Scale (ONS) is used. The ONS criteria 1. Respondent’s current position in have five sub-dimensions that are matched the company. (RocketReach.com, with the seven dimension of Raskin and 2016) Terry’s (1988) NPI criteria such as 2. Respondent’s email address (ex. leadership and authority, anticipation of first_initial last; recognition, grandiosity, self-admiration [email protected]) and vanity, and exhibition (Hamedoglu & 3. The information about Potas, 2012). To construct the ONS, respondent’s experience in Tesla researchers applied 38 items that are Motors (LinkedIn, 2016) relevant to measure organization narcissism. However, considering the limited information about the complete list of To see the complete criteria list of NPI and Tesla Motor’s employees, this research ONS, it can be seen in Appendix B. might not be able to sample every member of the population. Moreover, due to the 4.2.2 Selecting the Survey Method highly intense working hours inside Tesla In this section, the survey method will be Motors, it might affect the respondent’s explained. There are several important availability and the questionnaire’s considerations to take into account, such as response rate. the accessibility to population or sampling frame, the survey question, the content of In question issues, the respondents will be respondent’s answer, the level of sample asked several background questions in bias, and the viability of the conducted order to get the data description through survey (SocialResearchMethods.net, screening questions. As this research has 2016). two main points to investigate, the questions will be divided into two sub- The population issue has several factors to questions, one for the CEO narcissism and consider. Firstly, this research supposed to the other one for the organization have a complete list of employees. narcissism. In adapting the tight schedule However, due to its highly classified of the respondents, the question will not information, the questionnaire can be consist of lengthy questions, controlled dropped off at the Tesla’s headquarter. question sequence, and long response Secondly, the questionnaire requires the scale. capability of the respondent to read. Since Tesla Motor’s job requirement needs at In content issues, respondents do not need least a high-school graduates, so every to consult the records as it is a logical and employee can read. Thirdly, there would spontaneous topic. However, the be no language issue or document respondents are expected to understand translation needed, as Tesla Motors about the main issue of the research in employees are mainly English native order to maximize their knowledge speakers. Fourthly, as the survey is not describing the level of narcissism from the engage in any illegal or unpopular CEO and organization. activities, the population are expected to In bias issues, there might be social cooperate. Lastly, there is no geographic desirability, distortion, and false restrictions as Tesla Motors employees respondents. Yet, this issues still can be concentrated in California. managed.

12 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 Lastly, in the feasibility issues, as the be indicated to a greater degree of survey will be conducted by a research narcissism. company. So, there might be cost constraint in conducting the survey. 4.2.5 Advantage and Disadvantage of However, as the CEO and the organization Survey Method will cooperate in the research and pay for The selected survey method is drop-off it, the cost constraints will be irrelevant. questionnaire, indicating that the Other issues such as facilities, time, and researcher will distribute the questionnaire personnel are not incurred. Therefore, this to the respondent’s company (Tesla research is feasible. Motors). In this method, it is possible to ask question to the researcher about the To see all the research activities in study and ask what needs to be done in chronological order, it can be seen in order to increase the response rate. Appendix C. However, this survey method is quite costly and not flexible. 4.2.3 Selected Survey Method The drop-off questionnaire method is used To see the complete advantage and in this study as the selected survey disadvantage list of drop-off questionnaire, method, by distributing the traditional it can be seen in Appendix D. paper-and-pencil questionnaire to the company. Next, the questionnaire to 4.3 Research Design measure CEO narcissism will be In this study, the research design is used to constructed based on the NPI criteria. be the research guide as it helps the Nevertheless, to measure the organization researcher to investigate the research. It narcissism, the questionnaire will be consists of internal validity, types of conducted based on ONS criteria. research design, and the research design.

4.2.4 Constructing the Survey 4.3.1 Internal Validity The survey question will be structured The type of the data validity in this using the Likert response 1 to 5 bipolar research is internal validity in order to scale because the research needs the two draw the causal relationship between data ends of the scale to describe the opposite in the study. As it derived from the positions of the opinion hypotheses, the causal relationship for this (SocialResearchMethods.net, 2016). In study is to test whether the CEO Elon response format, this research uses the Musk with the narcissistic characteristic circle answer format due to the condition influences the organization narcissism. where this research refers to provide only single-option variable. The focus of the 4.3.2 Types of Research Design questions will be asked about how the This study uses non-experimental design respondents see the narcissism of Elon because it does not include any random Musk and the Tesla Motors company. The assignment and multiple groups, as this final score of the respondent represents the research only needs single observation. sum of their rating for all of the items Figure of the post-test only non- provided (summated scale). The average experimental design is displayed in the score for CEO would be 120. Any score Appendix G (Figure 1). In this study, the higher than 120 will be indicated to a single group will be the representative of greater degree of narcissism. While, for only one research design organization the average score is 102. (Socialresearchmethod.net, 2016). Therefore, any score higher than 102 will

13 Narcissistic CEOs ..., Dhanes Danarjati Soepono, FEB UI, 2017 4.4 Analysis 6. Conclusions and Recommendations In the analysis section, this study uses statistic method in order to help drawing 6.1 Conclusions the analysis. After combining individual The conclusion can be made based on total score, researchers can draw qualitative research deriving from the conclusions based on the final data and literatures and hypotheses. This thesis consequently describe the narcissism level. cannot conduct any analysis based on findings from quantitative research because the research plan was not 4.4.1 Descriptive Statistic executed. As the aim of this study is to Descriptive statistic is used in order to investigate relationship and influence of provide all the quantitative description narcissistic characteristic from Elon Musk about the gathered data. It illustrates the and Tesla Motors, the central research detailed description about the data question of whether Elon Musk and Tesla characteristics that this research Motors are narcissists can be concluded investigates, including the sample and using the literatures. According to DSM- measurement summaries. There are three IV by American Psychiatric Association, characteristics of univariate analysis that Elon Musk is a narcissist because seven conducted in this study, which are: out of nine characteristics are fulfilled. 1. Distribution However, Tesla Motors is not a narcissist 2. Central tendency organisation because only three of Godkin 3. Data dispersion and Allcorn’s (2009) eleven criteria are First, the data distribution is measured fulfilled. using frequency. Second, the central tendency is measured by mean, median, and mode. Whereas, the data dispersion as 6.2 Recommendations the third criteria is measured using the This study recommends for the future standard deviation research that it is important to execute the (Socialresearchmetods.net, 2016). actual research by distributing the survey to the Tesla Motors management to conclude the empirical results. In addition, 4.4.2 Inferential Statistic this study also suggests that a deeper In order to investigate the questions, this analysis is needed to complement the research applies inferential statistics to preliminary answer to the CRQ. examine the questions in accordance to the Furthermore, it provides the information formulated hypotheses. In this case, that might be useful to Tesla Motors to researchers can draw the conclusion about develop its management style. Thus, Tesla the sample data to the population. Motors can maximize its strategy adapting Moreover, to test the formulated to some of the narcissistic characteristics hypotheses, this research utilizes the T-test from the CEO Elon Musk. method. Lastly, the scoring method deriving from NPI and ONS criteria is used to test whether the CEO and the 6.3 Reflection organization is a narcissist. To be specific, This study provides the preliminary if the summated value of the questionnaire investigation based on literature and is above 120 – for the CEO – and 102 – for hypotheses. Therefore, it is the foundation the organization -, it will indicate a greater to conduct further research. Nonetheless, tendency of narcissistic behavior there are several limitations in conducting 5. Analysis and Discussion this study. Firstly, this study is conducted mainly from the internet which some of For this thesis, it was not necessary to the information could not be accessed. execute the research plan. Thus, there are Thus, the information accessibility is no data to analyze or results to discuss.

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