Narcissism in the professional environment has become the subject of intensive scientific research in recent years. Leaders with narcissistic tendencies can have a profound impact on organizational culture, team effectiveness, and employee well-being. Research from renowned academic institutions around the world shows that narcissistic leadership leads to serious organizational consequences, including a dramatic decline in collaboration and integrity, which persist even after such a leader departs.
Narcissistic Leader – Key Characteristics
Research conducted by Jennifer Chatman from the University of California-Berkeley and her collaborators showed that narcissistic leaders are characterized by an exaggerated sense of self-worth, excessive self-confidence, and a tendency to be dishonest, taking credit for others’ achievements and blaming others. They behave dominantly towards subordinates, believe they are superior, disregard experts, create conflicts, and believe that rules do not apply to them.
As noted by Manfred F.R. Kets de Vries in the Harvard Business Review, narcissistic managers have a strong sense of entitlement and often react defensively to criticism. Worse still, they refuse to acknowledge that they have a problem, which makes any attempts to correct their behavior difficult.
An example described in research is George, a senior manager at a large internet service provider, who tended to monopolize conversations, quickly showing impatience when others spoke and attempting to shift the topic to his own interests. He regularly devalued the work of others while exaggerating his own successes.
Impact on Organizational Culture
One particularly concerning aspect of narcissism in management is its long-lasting and deep impact on organizational culture. Research from Berkeley Haas shows that narcissistic leaders literally “infect” the cultures of their organizations.
“Narcissists don’t create narcissists. It’s not about copying the leader’s behavior. It’s about how the leader creates a culture that encourages people to act less ethically and less collaboratively than in other circumstances,” explains Professor Chatman.
Narcissistic leaders deliberately create divisions among subordinates to protect their position of power. As shown in the study by O’Reilly, Chatman, and Doerr “When ‘Me’ Trumps ‘We’: Narcissistic Leaders and the Cultures They Create,” such leaders limit communication and prevent bonding among employees.
Professor Charles O’Reilly from the Stanford Graduate School of Business observes: “Being appointed to a position confirms their sense of entitlement. At the same time, even without narcissism, power unlocks – it encourages people to give in to their worst instincts – so now these two factors work together.”
Consequences for Teams and Employees
Research from MIT Sloan Management Review confirms that psychologically dangerous environments, often created by narcissistic leaders, reduce team performance by 50% and employee engagement by 37%. Worse still, such cultures repel the most valuable employees – high performers who refuse to work in an atmosphere of fear.
The dynamics of fear transform the structure of relationships at the workplace. Instead of building trust and collaboration, defensive communication, political maneuvering, and erosion of authentic connections take root. Teams that once collaborated effortlessly become entangled in webs of distrust, with each member defending their own interests out of fear of accusation or exclusion.
A study published in the Journal of Personality and Social Psychology revealed a paradoxical pattern: individuals with narcissistic traits, who crave attention and admiration the most, are simultaneously the most prone to experiencing and feeling social exclusion.
Narcissism – Are There Any Positive Aspects?
Despite numerous negative consequences, some studies suggest that a moderate level of narcissism may have certain benefits in the context of leadership. According to Bénédicte Haubold, a psychologist and management consultant quoted in L’Express, “a certain dose of narcissism is essential to achieve a leadership position.”
French researchers point out that a narcissistic individual has one major advantage: they know themselves well, which gives them clarity about their competencies and goals. A narcissistic leader has self-confidence and can mobilize their entire team, making decisions when necessary.
However, research clearly indicates that excessive narcissism leads to negative consequences. As noted in a 2017 publication, “There are few positive outcomes of leader narcissism… and many negative consequences.”
How to Deal with a Narcissistic Leader?
For individuals working under a narcissistic leader, research suggests several strategies to cope with this difficult dynamic:
- Do not engage in dialogue – a narcissistic leader knows only relationships based on power and management through domination. They will always turn the situation or roles to put you in a position of accusation.
- Avoid sharing personal information – “Don’t talk about your family or health. It would be risky, as they will invade your privacy and use it against you.”
- Document interactions – in extreme cases, researchers recommend the “gray zone” and documenting everything for your own mental health.
- Consider changing your work environment – “When a person understands what they are dealing with, it’s best to move on as quickly as possible.”
Practical Examples
The story of Victor, the marketing director at an international tech company, illustrates the destructive impact of narcissistic leadership. Victor was widely regarded as a charismatic visionary, but his team experienced severe consequences due to his narcissistic management style. He regularly took credit for his subordinates’ ideas during board presentations, while publicly criticizing them for the smallest mistakes.
Victor’s team quickly learned not to share their best ideas during team meetings, keeping them for private conversations with clients or other departments where they could receive the deserved recognition. Communication within the team drastically deteriorated, and employee turnover rose to 40% annually. Despite impressive short-term business results, the department ultimately experienced a decline in innovation and lost key talents to competitors.
Another example is Marie, the operations director at a pharmaceutical company, who created a culture of fear by dividing and ruling. She deliberately isolated members of her executive team, organizing one-on-one meetings instead of group ones, and passing contradictory information to different individuals. When two of her team members began collaborating on an important project without her direct supervision, she immediately intervened, claiming the project needed to be restructured and responsibility redistributed. During her two-year tenure, the company lost five key managers and was sued by a former employee for creating a hostile work environment.
Conclusions
Scientific research clearly indicates that narcissism in management poses a serious threat to organizational health. While certain narcissistic traits, such as self-confidence and decisiveness, can be beneficial in moderate doses, excessive narcissism leads to toxic organizational cultures, reduced team performance, and significant psychological costs for employees.
Organizations should implement strategies to identify and limit toxic leadership behaviors, including 360-degree assessment systems, emotional intelligence training, and creating cultures where feedback is valued, and diverse opinions are encouraged.
As Jennifer Chatman from Berkeley Haas concludes: “Companies organize because they can do something together that no individual could do alone. When narcissistic leaders undermine collaboration, they are inherently reducing organizational effectiveness.”
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