Effective leadership in teams: a simple model

Abstract

This article explores the determinants of effective leadership in a team of production. We obtain that for leadership to be effective, the leader must be at least as productive as the follower. In the case of a charismatic leader, we obtain that efficiency can be restored with a homogeneous team.

Keywords:

• team of production
• leadership
• efficiency

JEL Classification:

• C72
• D23
• J31

Acknowledgement

Antoni Cunyat acknowledges financial support from the Spanish Ministry of Education and Science, Project ECO2011-29230.

Notes

1 ¹ The same qualitative results can be obtained if we, alternatively, consider Huck and Rey-Biel (2006) utility function where b ₁ has no upper bound: , b ₁ ≥ 0. For the purposes of the article, it is more convenient to normalize b ₁ [0, 1].