Abstract
The most central issue in improving productivity may just well be the most neglected: management capacity. Current management philosphies, under the label of “transactional leadership” style, can acutely reduce the overall effectiveness of boss-subordinate relationships. A more effective philosophy emphasizes “transformational leadership” in which the psychological commitment of boss and subordinate is advanced, rather than plasticized. Whatever management approach is employed, the consequences will be found in the degree of productivity of organizational work teams.
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