Freakonomics Radio Why Are There So Many Bad Bosses?
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Apr 11, 2024 
Katie Johnson, a data scientist turned manager turned freelancer, shares her journey navigating the challenges of leadership. Kelly Shue, a finance professor, discusses the Peter Principle — the tendency for capable employees to be promoted into ineffective managerial roles. Steve Tadelis, an economics professor, emphasizes the significant impact that managers have on employee success and productivity. Together, they explore why firms perpetuate this cycle of promoting incompetence and how rethinking promotions could reshape organizational dynamics.
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Katie Johnson's Management Experience
- Katie Johnson, a data scientist, transitioned to management for autonomy and impact.
- Despite positive reviews, she found management boring and emotionally draining, preferring her IC role.
The Nuance of Bad Bosses
- Bad bosses aren't always monstrous; incompetence and unhappiness are common issues.
- Research on bad bosses is limited, with conflicting survey data and a focus on quantifiable metrics like productivity.
The Impact of Bosses
- Research suggests bosses significantly impact employee outcomes, particularly productivity.
- A study found that moving from an average to a high-quality boss increased productivity by up to 50%.
