Over a long period of time, the responsibilities a leader bears may become too stressful – and that can trigger pre-existing psychological issues. When executives exhibit dysfunctional behavioural patterns, the problem may, as a result of their influence, become contagious. The dysfunction then spreads across departments, which means you do need to address the issue.
In the case of dysfunctional executives, clinical intervention is not always needed. Often coaches or even colleagues can help with their understanding and empathy, according to an article prepared by the INSEAD business school.
The narcissistic leader
Narcissism does have its advantages: in small doses it provides self-confidence and assertiveness. The downside, however, is selfishness and a sense of entitlement, leading to a belief that the rules don’t apply to the person in question.
The roots of narcissism stem from a childhood insecurity which often persists into adulthood. Such people are eager for recognition, which is why they lash out at perceived slights and become angry if people are unwilling to comply with their unreasonable demands.
A key factor here is that deep beneath the surface lies a fragile ego. Criticism, even delicate, is perceived as a threat, so you need to tread carefully. On the other hand, repeated feedback from peers could work well.
The bipolar leader
The major issue here is wild mood swings. In the manic state, the given individual's enthusiasm is irresistible; after a while, though, depression and social withdrawal set in.
Since bipolar leaders live in a constant fear of disaster, they tend to micro-manage their employees, even if this extra responsibility only creates more stress for them. They subsequently alienate themselves from family and friends and may also have problems with drugs and alcohol.
Such managers need to delegate decisions and tasks to others. They might also benefit from mood-balancing medication.
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