Freakonomics Radio

Why Are There So Many Bad Bosses?

40 snips
Mar 3, 2022
Join data scientist Katie Johnson, who shares her transition struggles from a happy contributor to a frustrated manager, alongside finance professor Kelly Hsu, who challenges traditional promotion practices with her insights on the Peter Principle. Economics professor Steve Tadellis explores how poor management styles devastate employee morale and company performance. They dissect why great workers often become bad bosses, the complexities of effective leadership, and suggest that firms must reconsider promotion criteria to improve organizational health.
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ANECDOTE

Katie Johnson's Management Experience

  • Katie Johnson, a data scientist, transitioned into management for autonomy and impact.
  • She found the role boring and unfulfilling, leading to unhappiness despite positive reviews.
INSIGHT

The Peter Principle

  • Many bad bosses exist because good workers get promoted into roles they are not suited for.
  • Companies often prioritize past performance over actual management skills.
INSIGHT

Managers Matter

  • Managers significantly influence employee outcomes, as evidenced by a study.
  • Moving from an average to a high-quality boss increased worker productivity up to 50%.
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