Tough times make tough bosses: A meso analysis of ceo leader behavior

This research investigates relationships between financial performance of the firm and subsequent chief executive officer (CEO) leader behaviors. The study was inspired by previous microlevel research that found that leaders respond to poorly performing subordinates with greater use of directive behaviors and punishment. Extrapolating from these microlevel findings, we posited that CEOs of firms with poor financial performance will demonstrate greater “strongman” or “tough” leader behaviors than CEOs of higher performing firms. Leader behavior descriptions were collected from the subordinates of CEOs at 56 high technology firms in a large metropolitan area. Generally, the results supported the notion that CEOs of poorer performing firms were “tougher” in their leader behavior toward direct-report members of their top management team than CEOs of higher performing companies. This research is an example of “meso” level research, where an organizational-level dimension—financial performance—is correlated with an individual-level dimension—leader behavior.