How One Bad Apple Can Ruin an Entire Company & How to Eliminate Toxic People from Your Business

It's often said that people don't leave companies; they leave their toxic bosses or bad management. Toxic leadership or tolerance of harmful behaviors in the business is, as I call it, organizational contamination, which spreads fast and leaves long-lasting 'venom'. This statement holds true more often than not, emphasizing that poor leadership can significantly impact employee turnover more than compensation issues. A single toxic person can create a ripple effect of dissatisfaction and disengagement, leading to higher turnover rates and lower employee satisfaction, which directly impacts team cohesion and effectiveness (Hogan & Kaiser, 2005).

The majority of toxic staff can be either 'lions' or 'serpents'. Like an alpha lion, toxic staff are often intense, loud, and aggressive, intimidating those around them and pushing their way into positions of authority, which they then treat as their kingdom. Others may be serpents—skilled manipulators who conspire, set traps, and undermine the team. They thrive on creating a culture of mistrust and confusion. These serpents achieve their ends through divide-and-rule tactics; they publicly praise teamwork and cooperation but secretly undermine these values.

So why do we still have toxic staff? Often regardless of their level of emotional intelligence, are high achievers who are often placed into leadership roles purely based on their technical skills. They are typically workaholics who push their teams relentlessly and show little respect for anyone outside their background or department. The organization tolerates their behavior because they deliver results, with leadership often dismissing complaints with, "You know what Jenny is like! It's just her way," a euphemism for, "Suck it up. I know Jenny is toxic, but she makes us $."

This type of toxic staff is the "Expert," who recognizes that knowledge is power and creates a dependency on themselves, enabling them to wield negative influence with little consequence. The organization is terrified of losing them and their key skills, so it indulges their toxic behavior or even rewards it to ensure they remain. Often, businesses delay letting go of such individuals partly out of fear of losing valuable business information or because the dependency is so high that other risks may be involved.

Most Common Types of Toxic

These types of toxic bosses/staff can be categorized, and you may recognize similar personalities in your business. This should be your starting point when building a strategy to deal with each type, as they are all quite different. Although they may share similar qualities, they require slightly different approaches.

Here are the four most distinct types of toxic personalities. They may not always hold high positions, but they are often influential within teams because of their cleverness, charisma, and categorical way of thinking. They have a "my way is the only way" mentality, which may seem charming in some ways, but when you look at the big picture, they spread a lot of negativity to those around them.

1. Pathological Narcissists: These individuals are selfish and entitled, with grandiose fantasies about their importance. They relentlessly pursue power and recognition, often at others' expense, using manipulative and exploitative behaviors driven by a need for admiration and validation.
2. Manic-Depressives: Also known as individuals with bipolar disorder, they exhibit extreme mood swings ranging from manic highs to depressive lows. Their unpredictable behavior and emotional instability can create chaos, leaving a trail of emotional devastation in the workplace. Manic phases are characterized by excessive energy and impulsive decisions, while depressive phases involve withdrawal and unproductivity.
3. Passive-Aggressives: These individuals avoid direct confrontation but express negative feelings through indirect and obstructive actions. They might procrastinate, intentionally make mistakes, or be subtly uncooperative. Their behavior is marked by a disconnect between their outwardly agreeable demeanor and their underlying resentment or resistance.
4. Emotionally Disconnected: These people are literal-minded and lack the ability to recognize or describe emotions, either their own or others. They often come across as cold, unempathetic, and indifferent, hindering effective communication and relationships in the workplace, leading to misunderstandings and a lack of support for their colleagues.

These descriptions, based on Frost's work, are critical for identifying and managing toxic personalities in the workplace to maintain a healthy and productive environment (Frost, 2005).

How This Affects Team Performance, Efficiency, and the Big Picture

Teams under toxic leadership, characterized by narcissism and authoritarianism, experience higher turnover rates and lower satisfaction, decreasing team performance by approximately 18% due to the negative work environment (Hogan & Kaiser, 2005).

Moreover, ineffective leaders who fail to align team efforts with organizational goals cause significant drops in team efficiency. Poor strategic decisions made by ineffective leaders can reduce team performance by up to 15% due to misaligned efforts and missed opportunities (Yukl, 2012).

Leaders with low emotional intelligence struggle to connect with their teams, resulting in lower engagement and performance. Teams led by leaders with poor emotional intelligence performed 20% worse than those led by emotionally intelligent leaders (Goleman, 2000).

Ultimately, toxic leadership undermines the overall productivity and morale of the workforce, impeding the organization's ability to achieve long-term success and maintain a positive workplace culture.

How to Know if Someone Will Be a Bad Leader Before Even Putting Them into That Seat

Recognizing potential bad leaders before they assume leadership roles is an exercise that every business should invest in. To this day there are systemic issues in recognizing and addressing bad leadership behaviors.

According to current research, individuals who exhibit personality disorders, flawed values, and a tendency to avoid reality are at risk of becoming ineffective leaders. Traits such as pathological narcissism, despotic behavior, and a lack of integrity are significant red flags. Evaluating leadership potential through personality assessments can help identify these negative traits early (Allio, 2007). Additionally, destructive leadership behaviors such as rigidity, callousness, and authoritarianism lead to negative outcomes like decreased job satisfaction, increased turnover, and poor team performance. One effective exercise could be to appoint someone as an acting head of the department temporarily for six months to observe their leadership impact on the team. This can help to make better decisions. (Schyns & Schilling, 2013).

Behavioral indicators such as poor decision-making and lack of accountability signal leadership failures. Leadership failures usually result from a pattern of bad decisions and behaviors rather than a single mistake (Lexa, 2017). Bad leaders often exhibit insincerity, exploitation, and avoidance of responsibility, which negatively impact employee morale and organizational performance (Erickson, Shaw, & Agabe, 2007).

Destructive leadership behaviors such as rigidity, callousness, and authoritarianism are linked to negative organizational outcomes, including decreased job satisfaction, increased turnover, and poor team performance. This correlation was confirmed by a meta-analysis of over 57 studies, highlighting the pervasive negative impacts of bad leadership on employee well-being and organizational performance (Schyns & Schilling, 2013).

It's all about proactively identifying individuals who may excel in their technical or intellectual skills but lack the emotional intelligence required for leadership. These individuals often do not possess the necessary skills to be effective leaders. By identifying these potential bad leaders before they assume critical roles, organizations can maintain a positive work environment and ensure effective leadership.

Why Do Organizations Promote or Even Hire People to Leadership Positions Who Lack the Required Leadership Skills?

A study involving 335 respondents identified that a significant number of bad leaders were either promoted or rewarded by their organizations, despite their destructive behaviors (Erickson, Shaw, & Agabe, 2007).

Systemic Issues in Recognition and Evaluation:

1. Performance Metrics: Organizations often rely heavily on quantitative performance metrics such as sales targets or project completions, which may overlook the qualitative aspects of leadership, such as employee well-being and team dynamics. This can result in the promotion of leaders who achieve short-term goals at the expense of long-term organizational health.
2. Lack of Comprehensive Evaluation: Many organizations lack comprehensive evaluation systems that incorporate feedback from subordinates, peers, and other stakeholders. Without 360-degree feedback mechanisms, bad leaders can continue to advance based on the limited perspectives of upper management alone.
3. Biases and Favoritism: Personal biases and favoritism can play a significant role in the promotion process. Leaders who have established close relationships with decision-makers or those who can present themselves well in front of senior management may be promoted despite their poor leadership qualities.

Cultural and Organizational Factors:

1. Culture of Rewarding Results: Organizations with a strong focus on results and outputs may inadvertently reward leaders who deliver these results, regardless of the means used to achieve them. This "ends justify the means" mentality can perpetuate the rise of bad leaders.
2. Resistance to Change: In some organizations, there is resistance to change the status quo. Long-standing leaders may be promoted based on tenure or loyalty rather than effectiveness, perpetuating ineffective leadership practices.
3. Inadequate Leadership Development Programs: Organizations may lack robust leadership development programs that emphasize the importance of emotional intelligence, ethical behavior, and effective people management. As a result, technical skills are often prioritized over leadership skills in promotion decisions.

Managers often fail to address these challenges directly, highlighting the need for better strategies.

Addressing Toxic Personalities in Your Business

13 Steps to Zero Tolerance of 'Bad Apples in Your Basket'

As a good team leader, you likely already have an idea of which category some of the toxic personalities in your business fall into. The first step is to identify that there is a problem related to certain individuals. The second step is to determine which category their behavior fits into. This allows you to strategize on how to handle the situation effectively, either by letting them go or finding a suitable role for them based on whether they are worth the investment. By following these steps, you can effectively manage toxic personalities and maintain a healthy and productive work environment.

Here's a more detailed breakdown:

1. Implement a Zero-Assholiness Tolerance Policy: Establish a zero-tolerance policy for toxic behavior and ensure it is communicated clearly throughout the organization. This policy should outline unacceptable behaviors and the consequences for engaging in them, including potential termination.
2. Public Values and Accountability: Establish and uphold public values around behavior, ensuring mutual accountability within top teams. Have these publicly displayed across the office so that everyone can point to it.
3. Foster an Inclusive and Positive Culture: Cultivate a work culture that promotes inclusivity, respect, and positive behaviors. Encourage open communication and provide channels for employees to report toxic behavior without fear of retaliation.
4. Identify the Problem: Recognize that a particular individual is causing issues within the team or organization. Let this be known.
5. Challenge Toxic Behaviors: Leaders must have the courage to confront and challenge toxic behaviors directly.
6. 360-Degree Feedback: Use anonymous feedback from colleagues and direct reports to identify and address toxic behaviors. Involve at least 4 people with whom this person has working relations.
7. Categorize the Behavior: Determine which of the four toxic personality types they fit into (Pathological Narcissists, Manic-Depressives, Passive-Aggressives, or Emotionally Disconnected) based on their behavior patterns.
8. Document Toxic Behaviors: Ensure that all instances of toxic behavior are thoroughly documented. This includes specific actions, dates, and the impact on the team and organization. Clear documentation provides the necessary evidence to support disciplinary actions and protects the organization legally.
9. Legal and HR Involvement: Involve HR and legal teams early in the process to ensure that all actions comply with labor laws and organizational policies. This also helps protect the organization from potential lawsuits and ensures fair treatment of all employees.
10. Strategize Solutions: Develop a plan to address the situation, which could involve either terminating their employment or finding a more appropriate role for them if they are deemed worth the effort.
11. Conduct Performance Reviews: Use performance reviews to provide formal feedback on behavior and performance. Address any issues related to toxic behavior directly and offer an improvement plan. Set clear, measurable goals and a timeline for improvement.
12. Provide Support and Counseling: Offer support and counseling to toxic individuals as a first step. This can include professional coaching, training in emotional intelligence, and stress management. Sometimes, toxic behaviors can be dealt with proper guidance and support.
13. Utilize Progressive Discipline: Apply a progressive discipline process that includes verbal warnings, written warnings, suspension, and ultimately termination if behavior does not improve. This approach ensures that employees are given opportunities to change their behavior while making it clear that continued toxicity will not be tolerated.

In conclusion, addressing toxic behaviors within an organization is a MUST AND NOT AN OPTION for maintaining a healthy, productive, and positive work environment. Recognizing the types of toxic personalities and understanding their impact on team performance and morale is the first step. By implementing a zero-tolerance policy and I mean ZERO TOLERANCE, businesses can effectively manage and prevent the rise of toxic personalities. Investing in leadership development programs that emphasize emotional intelligence and ethical behavior will further ensure that those in leadership positions are well-equipped to lead with integrity and compassion. Ultimately, a proactive approach to identifying and managing toxic behaviors will help organizations achieve long-term success and maintain a thriving workplace culture.

As always, I maintain an open-door policy. Write to me, and let's connect for deeper conversations about the challenges you face in your business.

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References

1. Hogan, R., & Kaiser, R. B. (2005). What we know about leadership. Review of General Psychology, 9(2), 169-180.
2. Frost, P. J. (2005). Toxic Emotions at Work: How Compassionate Managers Handle Pain and Conflict. Harvard Business Review Press.
3. Yukl, G. (2012). Leadership in Organizations (8th ed.). Pearson.
4. Goleman, D. (2000). Leadership That Gets Results. Harvard Business Review.
5. Allio, R. J. (2007). Bad leaders: How they get that way and what to do about them. Strategy & Leadership, 35(3), 12-17.
6. Schyns, B., & Schilling, J. (2013). How bad are the effects of bad leaders? A meta-analysis of destructive leadership and its outcomes. The Leadership Quarterly, 24(1), 138-158.
7. Erickson, J. M., Shaw, B. N., & Agabe, Z. (2007). Destructive leadership behaviors: A behavioral and qualitative analysis. Leadership Quarterly, 18(5), 573-580.
8. Lexa, F. J. (2017). Stealth Leadership: Using Military Strategies to Better Your Organization and Yourself. Springer.