CASE ANALYSIS: TOXIC LEADERSHIP

UNIVERSITY OF MARYLAND UNIVERSITY COLLEGE CASE ANALYSIS: TOXIC LEADERSHIP CALL TO PAPERS SUBMISSION FOR : THIRD INTERNATIONAL CONFERENCE ON ENGAGED MANAGEMENT SCHOLARSHIP TANYA PELCHER-HERRING DOCTORATE OF MANAGEMENT GRADUATE STUDENT

CASE ANALYSIS: TOXIC LEADERSHIP ABSTRACT This case analysis explores an extreme case of a dysfunctional leadership style the toxic leader. The examination investigates the toxic behaviors of dysfunctional leaders, their qualities, followers, and the range of toxicity factors that render the organization and its members prone to ethical misbehavior. The case details are extrapolated from the files of the federal civil services Merit System Protection Board (MSPB) and those of the Office of Special Counsel (OSC), where there is an over abundance of similar cases of public servant dysfunctional leadership. These cases bring forth research questions of: 1) Whether toxic leadership traits can be screened before hire and after hire within the federal government. 2) After hire, how can these toxic leaders be shed and nontoxic leaders recruited? As human beings, there is an innate psychological need for belonging and security, but the need for authority and order are how well informed leaders thrive. In times of crisis, followers long for leadership. Subsequently, a fear exists where there is chaos and no power. Good leaders communicate a vision that inspires followers. Time-and-time again, toxic leaders provide a simplistic vision to complex problems; yet, many followers do not understand the intricate underlying issues, ethical or unethical, of a visionary, but follow them faithfully. Jean Lipman-Blumen describes the process as an interaction, not an action. Blaming toxic leaders for their faults and failures is easy; however, toxic leadership could not exist without follower compliance. These questions are examined and discussed under the theories, models, and concepts of dysfunctional leadership styles, toxic leadership, followership, trust, and organizational behavior in this analysis.

CASE ANALYSIS: TOXIC LEADERSHIP THE PROBLEM PROBLEM IDENTIFICATION A small government agency in Washington, D.C. suffered from severe mismanagement due to unethical, fraudulent, and illegal behaviors. Toxic leadership is described by Lipman and Blumen (2005) as destructive and dysfunctional behaviors with characteristics that impose grave and lasting damage. This case presents an index of problems involving the adverse current operating culture and a host of negative leadership and follower sub-problems resulting in administrative, civil, and criminal penalties. More importantly, the Office of the Inspector General, the Senate Subcommittee on Financial and Contracting Oversight, and the Federal Bureau of Investigation are currently involved in the investigation1. Under the weight of the legal issues and impending ramifications, the organizational climate has further negatively diminished2. This analysis will explore the problem from a cause and effect posture to determine if toxic (destructive and dysfunctional) leadership is the causative factor. PROBLEM DEFINITION Voluminous pending administrative, civil, and legal charges are being leveraged against the agency. Its members toxic destructive and dysfunctional leadership are cited as the likely cause. The detailed fraud, waste, and abuse charges illuminate ethical violations and corruption. The administrative and human rights charges convey diminished decision-making, a lack of trust, and a high degree of individual and organizational conflict. A quandary of issues represents ignored red flags (warning signs) shouting organizational safeguard and structure gaps. Gano (1999, p. 41) and Anderson and Fagerhaug (2006, p. 12) note that effect has two causes that formulate the subsequent action and conditions. These fraud, waste, abuse and illegal activities (or effects) have serious consequences and this case analysis explores what caused the problems and why. FACTS OF THE CASE The public records of the investigative agencies outline the case details. No assumptions are stated or made in this analysis beyond the events, timelines, names, titles, and statements of key actors described in the official investigation of administrative, civil, and criminal charges. 3. This case focuses on a small federal agency, a key senior leader, her direct-report followers, and the organizational culture. The agency consists of over 30 virtual teams, throughout the nation, with headquarters in Washington, D.C. The female senior leader is the sister-in-law of the agency directors assistant and very politically connected. This became evident throughout her stay, as the agencys director, who happens to be a presidential appointee, handpicked her. Her role is to lead the headquarters staff as Agency Deputy Director. Externally, the agency and the female leader display the epitome of functionality. For years, the
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Information accessible through the Freedom of Information Act (FOIA) and public records from case numbers: Office of Special Counsel (OSC): OSC DI-12-523, OSC MA-12-019 & OSC MA-12-2422 prohibited practices, fraud waste and abuse, gross mismanagement of funds and government property charges outline: Merit Systems Protection Board (MSPB) Case #DC-0752-13-0152-I-1. 2 Federal Equal Opportunity Employment Cases #FMCS-003 and #FMCS-002, Reports of Investigation Equal Employment Opportunity Complaint; Congressional Inquiry Documents of Congressman Van Hollen of Maryland 3 Charges - The agency name and key actors are omitted from this case analysis, but are disclosed in case files.

CASE ANALYSIS: TOXIC LEADERSHIP agencys leadership team has been highly admired in government and political arenas. At one point, the agency held the honor as one of the top ten small agency places to work. However, internally, within four years of the new leaders arrival, there has been a high level of team discord and organizational conflict at the headquarters level. Within approximately 18-months of the new leaders arrival, there was an antagonistic departure of three out of five of the existing headquarters department heads. The new leader quickly replaced the department heads with loyal followers, one with substantially less experience and qualifications. By the second year, internal rumors of funding mismanagement, management interference, complaints of discrimination, and conflict ran rampant. Formal complaints soon followed from new team members, including discrimination violations, management interference, misuse of technology, reporting fraud, and violation of rules for purchases and acquisitions. A pattern of circumventing and overt ignoring of the rules had emerged. Over time, extravagant and lavish purchases, use of alcohol at government events, travel arrangements, and select follower celebrations - identified as employee recognitions became a norm. Direct-report followers and other senior leaders ignored, justified, validated, and verified transactions that were clearly beyond the scope of the policies, subsequently becoming complicit. In 2011 and 2012, a coalition of new followers refused to comply with contractual acquisition authorizations and blew the whistle. THE ANALYSIS - ANALYTICAL FRAMEWORK The objective of this case analysis is to separate the case material or abstract entity to its constituent elements to determine if the cause is toxic leadership. The chosen process is the Root Cause Analysis4 (RCA) Method (Andersen & Fagerhaug, 2006, p. 12). The RCA is a constructive process for investigating a problem. The analysis methodology will provide insight of the complex systems in and around the problem. The next step is for the analysis to reveal key failure points as candidates for levers of change. To capture the complexities of destructive and dysfunctional behavior, Lipman-Blumen (2004, 2005) and Kellerman (2004) recommend a multidimensional framework. As a result, two resource models were identified to assist in building the framework for this case analysis. ROOT CASE ANALYSIS TOOL: T HE CIRCUMPLEX MODEL The first analytical tool is the Plutchicks (1980) Circumplex Model5 presented in Figure 1. The Circumplex Model is used to examine the primary and secondary problematic outcomes to the contextual components of toxic leadership, ethics, trust, decision-making, and organizational culture. More specifically, the Circumplex Models role with the RCA is to help identify the orientation direction (current state/operating culture) and degree of intensity with the case targeted parties. According to Cook (1987) and Kotter (1992), cultures that lack direction are typically the result of misalignment among internal structures, systems, technology, and skills/qualities.

Root Cause Analysis (RCA) can be traced to the broader field of Total Quality Management (TQM). Root cause analysis is an integral part of problem analysis and problem solving (Anderson & Fagerhaug, 2006, p. 12). 5 Circumplex Model Figure 1, developed by Robert Plutchik (1980), the wheel of emotion used in this case analysis as an analytical framework to illustrate different emotions, compelling and nuanced behaviors.

CASE ANALYSIS: TOXIC LEADERSHIP

FIGURE I CIRCUMPLEX MODEL

Figure 1. Diagram Source: Cook, 1987; Cook & Lafferty, 1987 & Kotter, 1992 The model brings together the leadership impact on individuals and the organization by identifying the 12 styles of thinking, behaving, and interacting into three general orientations: 1) 11 to 2 oclock, Constructive StylesMembers interact with others and approach tasks in ways that will help them to meet their higher-order satisfaction needs, 2) 3 to 6 oclock, Passive Defensive Styles-Members interact with people in ways that will not threaten their own security, 3) 7 to 10 oclock, Aggressive Defensive Styles - Members approach tasks in forceful ways to protect their status and security. The three orientations aid in interpreting the organizations current culture and movement to the ideal culture. When considering the current culture, both direction (reflected by the orientation arrows) and the intensity (reflected by the color and color levels in the inner circle rings) have specific interpretation roles. Direction explains what is (and is not) expected for culture transition; intensity informs the level or degree (Cook, 1987; Cook & Lafferty, 1987 & Kotter, 1992).

ROOT CASE ANALYSIS TOOL: T HE TRAPEZOID MODEL Next, the trapezoid model6, illustrated in Figure 2, flushes out the problematic causal factors, identifies empirical methods, theories, and practices as levers of change to transition the agencys current operating culture with the values, skills, and qualities needed to transform the leadership team to an ideal culture. The role of the trapezoid model in the RCA process is to assist in determining the analysis causation and potential remedies: 1) What happened (primary actions and behaviors)? 2) Why did it happen (what safeguards were ignored)? 3) What to do to prevent the likelihood it will occur again (plausible remedies to propel the levers of change)?

CASE ANALYSIS: TOXIC LEADERSHIP Root Cause Analysis Principles are constants and are unchangeable from problem to problem (Anderson &Fagerhaug, 2006). Similarly, the cause-and-effect principle is universal to a myriad of problems. In this case, the Trapezoid Model isolates the causative factors that feed into the current operating state of corruption, organizational relationship conflict, and failures. The shift can occur when the focus moves to address the identified causes and the subsequent effects. The Trapezoid Model further illustrates empirical resources for change, to include Lewin and Scheins Change Theory model of cognitive redefinition (Schein, 1995), whereas Levels of Action 1 and 2 - Stage 1unfreezing causative factors and current operating culture and Stage 2unfreezing current operating culture and moving to an ideal culture/or new state, and Level of Action 3 - Stage 3 refreezing to ideal culture (new state becoming permanent) (Schein, 1995; Schein, 1999; Smith, 2001). FIGURE 2. TRAPEZOID MODEL ROOT CAUSE ANALYSIS
Erosion of trust, Bradenburger & Nalebuff (1996) Trampled on Rights of Others, Hickman (2010) Scheins Model (1992), 3 cognitive levels of Organizational Culture

Causative Factors
Power-based Leadership Lack of integrity that reveals leaders as cynical, corrupt, or untrustworthy Insatiable ambition that prompts leaders to put their own sustained; power, glory, and fortunes above their followers well-being Egotism and Arrogance Leadership Borderline Personality Disorder

Operating Culture
Violating the basic human rights of their own supporters and others Deliberately feeding their followers illusions that enhance the leaders power and impair the followers capacity to act Engaging in corrupt, criminal, and/or other unethical activities

Ideal Culture
System II Thinking, Debias Judgment in Managerial Decision Making Individual and Corporate Trust Organization and member resilience Constructive Organizational Culture: achievement, selfactualizing, humanistic encouraging, and affiliative Simons
Rational Model Lewins Force Field Analysis

Bad Management, Kellerman (2004); Handy (1976); Harrison (1972) Linking organizational culture & organizational structure; Power Culture

Toxic Leadership, Destructive & Dysfunctional, Followers shoulder much of the blame Lipman-Bluman (2006)

Levers of Change

Unfreezing; Bazerman & Moore (2010); Lewin/Scheins Change Theory (1995)

Level of Action #1 (Cause)

Level of Action #2 (Effect)

Level of Action #3 (Change)

Figure 2. (Diagram Pelcher-Herring, 2013) The Trapezoid Model represents components of the case analysis to show grouped and related values; the figure depicts the causative factors, dysfunctional and destructive behaviors, creating the toxic leadership operating culture; illustrates the how and why; identifies the change leadership skills, qualities, and values needed to transform the current operating culture to an ideal operating culture. Source: Bazerman & Moore (2010); Bradenburger & Nalebuff (1996); Ford, F ord & DAmelio (2008); Handy (1976); Harrison (1972); Hickman (2010); Kellerman (2004, p. 38); Kumar (1999); Lipman-Bluman (2006); Mintzberg & Westley, 1992; Schein (1992); Simon (1997).

CASE ANALYSIS: TOXIC LEADERSHIP EXAMINATION OF THE CAUSATIVE FACTORS TOXIC LEADERSHIP CONSTRUCTS This government leaders management style clearly exemplifies the toxic constructs of leaving her followers worse off than as she found them. However, Lipman-Blumen (2004, 2005, 2006) describes toxic leadership as vexing, while other scholars dissected the characteristics. Other scholarly researchers share similar and broader views. For example, Hogan and Hogan (2001, p. 40-51) portray bad management as the dark side of leadership. The authors concepts of bad leadership are shared by Erickson, Shaw and Agabe (2007, p. 26-43) and Kellerman (2004). Ferris, Zinko, Brouer, Buckley, and Harvey (2007, p. 195-206) broaden the scope to bullying as a component of toxic leadership. Case files show credence in Ferris, et al (2007) views where followers feared senior leader actions and their abusive supervision tactics (Tepper, 2000, p. 178-190). Paunonen, Lonnqvist, Verkasalo, Leikas, and Nissinen (2006, p. 475-486) label the senior leaders destructive behavior as narcissistic (Einarsen, Aasland & Skogstad, 2007, p. 207-216; Kellerman, 2004; Lipman-Blumen, 2006) and explore borderline mental disease and defect. Collectively, these investigative approaches to behaviors and organizational leadership styles carry the label of destructive and dysfunctional leadership. THE INDIVIDUAL LEADER Referring to the Circumplex Model, bad leadership, bullying, and abusive supervision characteristics of this case have the strongest extensions to the Aggressive/Defensive cluster. In the Aggressive/Defensive cluster, the primary style of leadership is power (Lukes, 2005). Power is depicted in the Trapezoid Model as a causal factor of the agencys toxic leadership operating culture. House and Aditya (1997) explore the Power Motivation Theory and note that traits are derived from satisfaction through influencing others (p. 414). Additionally, Handy (1976) and Harrison (1972) identify leaders in this cluster are expected to be winners at any cost, outperform their peers, be seen and noticed. According to Kotter (1992), leaders expect to use their authority and position extensively. Subsequently, the Circumplex Model shows the likelihood that the Aggressive/Defensive styles movement pushes followers toward the direction of the Passive/Defensive cluster and away from the constructive cluster (Argyris, 1998, p. 98-105; Follett, 2011; Porter, Steers & Mowday, 2007). Kellerman (2004) indicates that toxic leaders are motivated by the fear of their followers. Hence, the toxic leader manipulates and stifles followers with criticism. The reactionary behavior from followers was a fear to question leader actions or judgment (Kellerman, 2004; Follett, 2011). This behavior is indicative of the dependent and avoidance characteristics of the Passive/Defensive cluster. In this case, the senior leader was infamous for bludgeoning followers at meetings or behind closed doors. Statements indicate the senior leader had swayed her loyal followers to carry out her orders. Obediently, her followers carried out her orders despite the foreknowledge that her orders violated federal rules, policies, and human decency. Hickman (2010) described this behavior as, unethical leadership fails to distinguish between right and wrong. Because common codes of decency and good conduct are in some way violated, the leadership process is defiled (p. 393). A Gellerman (1989) state that the example set by senior management is vitally important (p. 74). As a result, the case facts show followers assimilated oppositional behaviors and traits. Therefore, under this concept, the red in the intensity scale of the Circumplex Model would show a significant 7

CASE ANALYSIS: TOXIC LEADERSHIP increase. These behaviors would support Gellermans (1989) posits that conscience is a factor in ethical dealings and management should shield employees from circumstances that strain their ethical standards (p. 78). Lipman-Blumen (2004) addressed toxic leadership as not just an average mismanagement issue. Instead, the author describes these leader actions more intensely as those with a dysfunctional personal characteristic and destructive behavior. The author also explains that these leaders have the capacity to, inflict reasonable serious and enduring harm (p. 373). Barbara Kellerman (2004) joins Lipman-Blumen (2004) to explain that a toxic leaders pattern is so predictable that the behavior and outcome has been coined as a rule of thumb (p. 15-38). The problem of toxic leaders has become such a concern that new scholarly research has attached psychological disorders to the behavior. Goldman (2006) has conducted extensive research on the topic of toxic leaders and published works with the American Journal of Psychology. He has espoused, borderline personality disorder is a prototype of preexisting toxic behavior (p. 733-746). Goldman (2006) escalates the issues the problem raises by stating, the toxic behavior centers in an individual leader and permeates throughout an organization (p. 733). The author captured a statement by Kets de Vries, when he explained, some leaders go far beyond the abnormal ways of functioning they go off the deep end (Kets de Vries, 1995, p. 217). The deep end is probably the best way to explain some of the extreme behaviors exhibited by the senior leader and her followers. As an illustration, the EEO reports denote that this senior leader denied reasonable accommodations for a handicapped follower, who refused to conform, and initiated removal and police escort removal for other another nonconforming follower. The handicapped follower filed Congressional complaints, as well as federal noncompliance complaints (outlined on the Trapezoid Model: loss of trust, violation of human rights). Consequently, the agency is currently pending potential huge financial fines and damages (refer to the Trapezoid Model, operating culture, result of unethical activities). The agency and key actors have received subpoenas for documents and individual depositions. Multiple complaints from varying people should have been a red flag to the agency director. The senior leaders actions reflect an innate power-hungry persona. In addition, the events appeared to illustrate some level of utopia from the abuse and use of her power (LipmanBlumen, 2004; Kellerman, 2004). Plotted on the Circumplex Model, the leader actions would show a high intensity red rating in the Power, Aggressive/Defensive cluster. The senior leaders court and deposition records repeatedly convey her declarations of a lack of intent or even knowledge that she had been a part of anything wrong. Despite her legal background, the senior leader made multiple conflicting official statements throughout the investigation. However, Hickman (2010) provides a moving statement that surmises the senior leaders proclamations of no intent and innocence. Hickman (2010) states, if ethical behavior intends no harm and respects the rights of all affects, and unethical behavior willfully or negligently tramples on the rights and interests of others, then leaders cannot deny the rights of others (p. 351). LipmanBlumen (2005) provides clarity to the intentions of toxic leaders by stating, those leaders who deliberately injure others or enhance themselves at others expense are regarded as intentionally toxic (p. 2). On the other end of the spectrum, unintentionally toxic leaders, whose careless or reckless action, including incompetence, nonetheless cause significant negative effects (p. 2). The facts of the case would lead a reasonable man to surmise that there were significant negative effects from the bullying, harassment, abuse of power, and unlawful personnel actions.

CASE ANALYSIS: TOXIC LEADERSHIP THE FOLLOWER Kellerman (2004) posits that how followers react to bad leaders determines the bad leaders reign. The author continues her perspective by stating, an intentional investigation of the natural man shows a tendency for incompetence, rigidity, intemperance, callousness, corruption, insular, and evil (p. 15-38). Kellerman (2004) concludes, Followers are every bit as important to leadership as are leaders since you cant have bad leadership without having bad leaders and bad followers (p. 38). Lipman-Bluman (2004, 2005, 2006) advocates that toxic leadership depends upon the followers, many of whom recognize, but tolerate it. The Circumplex Model illustrates intensity and the rotational movement of toxic behaviors from Lipman-Blumens (2005, p. 5) three key values: 1) Security: internal psychological perspective, 2) Fears: external environment, and 3) Satisfaction: psychosocial. Lipman-Blumens (2004) theory is founded upon Maslows revised (1971) hierarchy of needs, which progresses through the primitive basic needs, e.g. food, shelter and basic necessities and accents that, followers seek safety, love, esteem, cognition, aesthetics, and self-actualization, and culminate in transcendence (p. 5). From this examination, a conclusion can be drawn that the agencys followers appear to fit the Security Needs, People, and Satisfaction Needs orientation of the Circumplex Model. This insular vacuum of long-term and egregious illegal actions from leadership is how the organization operated for years, scaffolding the current operating culture reflected in the Trapezoid Model Level Action 2. In many instances, the followers actions were similar to Argyris (1998) Empowerment: The emperors new clothes. Everyone knew what was going on, but pretended nothing was wrong. However, during the formal investigation, the same followers acknowledged wrong doings, but cited fear of losing their jobs as reasons for failing to report allegations of fraud, waste, and abuse. Based upon these actions, other deductions can be inferred that the leaders direct-report followers have a high need for security. If plotted on Circumplex Model, these followers would be in the Passive/Defensive Styles with a high intensity in dependent and avoidance. On the Trapezoid Model Level Action 1, these behaviors are causative factors, flowing to the current operating culture at Level Action 2; therefore, the agencys behaviors meet the toxic leadership definition. Unsurprisingly, the senior leader along with each of her direct report followers are lead actors in each formal complaint of prohibited personnel practices, management interference, and discrimination (Hickman, 2010; Kellerman, 2004, p. 29-38; Porter, Steers & Mowday, 2007; Price, 2005). The multiple complaints from stakeholders and followers should have been yet another red flag for the Agency Director. Nevertheless, the case files show the Agency Directors behavior is one of denial and ambivalent of the troubled environment (Frost, 2003). THE ORGANIZATION Practitioners and management scholars identify an interrelationship between leadership and organizational dysfunction (Frost, 2003; Fox & Spector, 2005; Kellerman, 2004; Levinson, 1972, 1976, 1981, 1991; Lowman, 2002; Lubit, 2004). Most definitely, the senior leader, her follows, and others outside their circle left the organization worse than found. The agency was established in 1947 and revered as an organization of high integrity, comradeship among its teams, and excellent in fulfilling its mission. Under the toxic leaders leadership, the organization has transformed from one revered to one under high legal scrutiny that may result in individual and organization level civil and criminal penalty (Frost, 2003). Despite the glowing 9

CASE ANALYSIS: TOXIC LEADERSHIP history and reputation to uphold, the organizations executive director ignored several red flags (Fox & Spector, 2005). Schein (2010) describes organizational culture as an abstraction, and the forces created in organizational situations from the culture are powerful. Further, Schein posits that a lack of understanding of these forces submits the organization as prey (p. 7). Organizational options allow safeguards to prevent or deter toxic leadership. An open and transparent process averts corruption (Lubit, 2004). Transparency includes processes for selection and identification to eliminate individuals with toxic leadership propensities and histories. The senior leader was handpicked, versus exercising the traditional federal hiring process, illustrating a predisposition to by-pass rules. Though many followers were aware of the skirting of this rule, no one acted upon the issue another red flag. Lipman-Blumen (2005) recommends the use of tools, e.g. screening assessment, to preclude toxicity. Also, the author recommends reviews that include all relevant groups with whom the leader interacts. The federal agency again failed another safeguard. Hence, followers, at all levels, were left without an indirect venue to address issues. The agency record shows professional development assessments, such as the 180 and 360-degree assessments (skill, competency, and behavioral gap tools), were recommended, but not elected to be utilized by the Training Director, who is a direct report of the female senior leader. Again, the agency made a conscious and deliberate act to exclude tools for employee productive and safe feedback. These repetitive actions align the agency with the causative factors of egotism, arrogance, and power-based leadership outlined in the Trapezoid Model. Again, another red flag ignored. In yet another instance, leadership purposely evaded vehicle acquisition requirements and purchased a luxury vehicle on a government credit card. Even without knowing the specifics, other members of the organization should have questioned this luxury vehicle acquisition versus the standard government sedan. Lipman-Blumen (2005) additional recommendations for safeguards and structure. Trust - Employees may allude to a sense of betrayal of trust, when the performance goals of the organization far outweigh the expectations and welfare of staff (Meyerson, Weick & Kramer, 1993; Vroom, 2007). The senior leaders placed unbalanced workloads on the employees, who resisted their unlawful orders (Kellerman, 2004). The conclusion of Mowday (2006) is that organizations rely more on tools that may erode the trust deposit between managers and reports. Instead, the case shows that the organization pushed for technology coverups (personal computers and cell phones to nonemployees and family members) and other report fudging, further degenerating trust. Deutsch (1960, 1962) defines trust as confidence in the intentions and capabilities of another person and the belief that person will keep his word. Trust is also viewed as a social glue (Fukuyama, 1995) or social lubricant (Spreitzer and Mishra, 1999) that can hold diversified, global organizational structures together. Creed and Miles (1996) opine that many organizations have failed due to a lack of trust amongst partners and staff. According to Lewicki (et al. 1998), organization members must know not only when to trust others, also when to monitor others closely. Multiple red flags went up, yet the senior leader was unchecked. Further, Lewicki avers that the functional coexistence of trust and distrust may be a central component in high-performance teams (p. 453). More importantly, both trust and distrust can co-exist within multiplex relations, and individuals experience ambivalence when positive and negative attitudes toward a single target exist (p. 448). In court documents, whistleblowers indicated they were the enemy of the agency. The whistleblowers complained of quid pro quo activities among the staff and contract personnel. It appears select followers had identified the whistleblowers as the single target. However, in court, the agency attempted to cover and deny its approved actions against the whistleblowers. 10

CASE ANALYSIS: TOXIC LEADERSHIP Decision-Making Expending government funds without authorization, management interference, and discrimination are indeed questionable decision-making practices. Again, the question of why remains. Simons (1997) theory of administrative behavior provides some insight. Specifically, Simons concepts of bounded rationality or satisficing appear to be in the forefront in this case, whereas the conceptual ideas of the agency leadership (bias, power, arrogance) and direct-report followers (insatiable ambition) was limited by the cognitive limitations of their minds. In other works, Simon states, "boundedly rational agents experience limits in formulating and solving complex problems and in processing (receiving, storing, retrieving, transmitting) information" (Williamson, 1991, p. 553). As a deterrent to System 1 (intuitive-biased, quick automatic and emotional) decision-making, Lipman-Blumen (2005) recommend regularly scheduled accountability forums to prompt pragmatic, effortful, logical and explicit thinking outcomes relative to System 2 thinking (Bazerman & Moore, 2010; LipmanBlumen, 2005). The case record shows that direct-report followers approved acquisitions and refused to deny the leader any request. The agency had little to no safeguards in place for the adopted decision process and became the prey of toxic leadership team (Schein, 2010). On the other hand, the organizations exercise of a rational decision-making model would effectively optimize outcomes and provided quantifiable information or verifiable alternatives. Lukes (2005) identifies a two-dimensional view that involves examining both decision-making and non-decision making, (p. 192). In this case, the record shows that leadership and several followers elected to utilize System 1 thinking, delay in the decision to stop the behavior, and in many instances become complicit (Bachrach & Baratz, 1963, p. 632; Bazerman & Moore, 2009). RECOMMENDATIONS Change is the ultimate recommendation (Dent & Goldberg, 1999; Senge, 2000). The agency will need to reverse the direction of the Circumplex Models Aggressive/Defensive and Passive/Defensive styles to Constructive Styles, including rebuilding trust in throughout the virtual and headquarters offices (Germain, 2011; Senge, 2006). After the series of illegal and unethical events, Lewickis (et al. 1998) purports increasing monitoring is vital. The value-laden ethics principles of Hickman (2010) incorporated into ongoing professional development would be essential. Additionally, Trapezoid Model illustrates method(s) available to transform the current toxic, dysfunctional, and destructive leadership styles and culture to one of an ideal culture (Bazerman & Moore, 2010; Gelatt, 2005; Kanter, 1973, 1975; Wirth, 2004). Trapezoid Model also outlines the resource tools structured to assist in the levers of change (Ayoko & Hartel, 2006; Follett, 2011; French & Raven, 1959, p. 150-167; Kumar, 1999; Parker, 2007). Change is difficult, but Ford, Ford and DAmelio (2008) prescribe accepting and labeling resistance to change to defuse its power (Burnes, 2004; Vroom, 2007). Conclusion Redefinition of the problem This case analysis examines a small federal agency under investigation by several federal government and law enforcement agencies for gross mismanagement of government funds and property, as well as fraud, waste, and abuse. The analysis explores whether the behaviors of the

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CASE ANALYSIS: TOXIC LEADERSHIP actors met the criteria for toxic leadership (dysfunctional and destructive leadership) and rendered the organization and its members prone to ethical misbehavior. Findings The RCA allowed factor-producing effects of components to be isolated and examined. Specifically, the focus was on the organizational culture and leadership styles depicted in the Circumplex Model, constructs of the causative factors, and the behavioral outcomes from the data input (court records and case investigations). The analytical seminal review of each component part indicated that the styles and behaviors were characteristic of toxic, dysfunctional and destructive, leadership (Kellerman, 2004; Lipman-Bluman, 2005, 2006). In approximately four years, the leader created an Aggressive/Defensive culture to propel and rotate the direction of the leadership styles orientation of the agency from a vibrant organization, a Constructive Style, to a Passive/Defensive Style. The unethical behaviors of the senior leader and directreport followers can be plotted on the Circumplex Model under the highest red intensity level of power, opposition, competitiveness, and perfectionist behavior. According to the case records, followers and other key leaders turned a blind-eye to the behavior and ignored glaring red flags to become an equal part of the problem. Additionally, it appears that the direct-report followers adopted their leaders behaviors and created a second and more intense (first line leadership) prong of toxic, destructive and dysfunctional leadership, thereby shifting their styles to the Aggressive/Defensive cluster of the Circumplex Model (Kellerman, 2004; Lipman-Bluman, 2004, 2005, 2006). Organizationally, the theoretical principles espoused by Pacanowsky and ODonnellTrujillo (1983), along with Schein (1999) outline the linkage of the members of the organization with the behaviors and activities. By default, the organization can be viewed as toxic, destructive, and dysfunctional. Identifying which causative factors had the most failures and influence on the organization is rendered for levers of change. The Circumplex Model and the Trapezoid Model, coupled with the examination of the case content, convey the analytical processes to associate the sentinel events, behaviors and outcomes to answer the following three primary questions: 1) What happened? A senior leader, her direct-report followers led an agency down a path that meets the seven type criteria of toxic leadership identified by Barbara Kellerman (2004): Incompetent, Rigid, Intemperate, Callous, Corrupt, Insular, and Evil. More importantly, these public servants wasted public dollars and betrayed the public trust. Compared with each of the seminal and theoretical constructs of toxic, destructive and dysfunctional leadership, each of the actors met the construct and the causative factors for the current operative culture. 2) Why did it happen? Lipman-Blumen (2004, 2005, 2006) suggests that it was psychological. She argues the need for security explains the psychological phenomenon that allows followers to allow the unethical and human rights conditions (Gelatt, 2005). The Trapezoid Model highlights the lack of integrity and power as causative factors. 3) What to do to prevent the likelihood it will occur again? The Trapezoid Model identifies the need for change and levers of change to transition to an ideal culture. Transitioning to an ideal culture would entail unfreezing the undesired by adding new forces for change and removal of some of the existing factors. The organization would need to refreeze the new behaviors until they become the norm. Orlikowsky & Hofman say that adopting an improvisational model implies that managers relinquish command and control or power (p. 20). Adopting the new model would require a realignment of keys leaders and practices. 12

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