Media Leadership Style Analysis of Michael Eisner Essay Example
Company from Paramount Pictures in 1984 to help Disney out of its financial slump in the 80âs. Eisner helped revamp Disneyâs theme parks as well as rejuvenating their movie studio.
In the process, Eisner helped âmake Disney into a television powerhouse, climaxing those efforts with the takeover of Capital Cities-ABCâŠyet when Michael Eisner assumed leadership of the company, Disney was in trouble. It was Eisner and his staff who turned the ailing theme park company into a media powerhouseâ (Gomery, 1995). Eisner moved over to Disney from Paramount taking along with him Jeffery Katzenberg to make motion pictures under two new brand names: Touchstone Pictures and Hollywood Pictures.Eisner and Katzenberg worked well together until 1994 when they got into a dispute over a promised promotion as well as litigation involving a breach of contract lawsuit where Disney owed Katzenberg around $250 mill
...ion.
âThe two sides reached a partial settlement in November 1997 in which Disney conceded that Mr. Katzenberg was owed something, and Disney paid Mr. Katzenberg $117 millionâ (Fabrikant, 1999). Michael Eisner has been widely criticized in press releases of his obsessive micromanagement and autocratic leadership style.In one article, Michael Eisner is said to have âbeen one of the most autocratic, and the best-paid, chief executives in America, a man who has had little patience for anyone questioning his leadership of Walt Disneyâ (Economist, 2004). It has been noted that âMichael Eisnerâs Disney has been a case study in poor corporate governance.
Over the years, the board was disproportionately stocked with insiders, professionals who had dealings with the company, people whose childrenâs or relatives worked at the company, and others who were ill-equipped to exercise oversight over
Eisnerâ (Gross, 2004).
In Roy Disneyâs resignation letter in November 2003, he listed Michael Eisnerâs flaws of leadership. One being Eisnerâs âconsistent micro-management of everyone around you with the resulting loss of morale throughout the companyâ as well as âthe perception by all our stakeholders â consumers, investors, employees, distributors, and suppliers â that the company is rapacious, soul-less, and always looking for the âquick buckâ rather than long-term value which is leading to a loss of public trustâ (Disney, 2003).Roy Disney also criticized Eisnerâs cutbacks on Disneyâs creative talent. Disney also felt that Eisner âfailed to establish and build constructive relationships with creative partners, especially Pixar, Miramax, and the cable companies distributing our productsâ (Disney, 2003) as well as Eisnerâs âconsistent refusal to establish a clear succession planâ (Disney, 2003). Eisnerâs micro-management style is reflected by a 2003 Time Magazine article stating that Disney chief Michael Eisner never âmisses the small points.
Whether itâs the fixtures in his company hotels, the dialogue in a movie script or little snubs that add up to a feud, not much escapes himâ (Fonda, 2003). A The New York Times article states that âaccording to one former senior Disney executive, program decisions, script decisions â even decisions on which writers might be signed deals â have often had to go through as many as six executives, headed by Mr. Eisner and Mr. Iger. âFor six people to like the show is never going to happen,â the former Disney executives said. Michael and Bob make sure their operating executives have no real powerââ (Carter, 2004).
Walt Disney Resource. net stated five reasons why Eisner should be ousted:
- Eisner has âclosed all Feature
Animation departments, meaning that Disney will no longer produce any hand-drawn animated films under his watch. They will only produce CG animated filmsâ (The Walt Disney Resource).
Eisner referred to his upper management key people in negative, derogatory, and abusive terms such as: âJeffrey Katzenberg as a âmidgetâ, Michael Ovitz as a âpsychopathâ, Roy Disney was kicked off the board, and Harvey Weinstein was forced out of Miramaxâ (Epstein, 2005).These abusive and
condescending remarks directed towards key subordinates is an example of how a pseudoâtransformational leader âtends to focus on the worst in people â on demonic plots, conspiracies, unreal dangers, excuses, and insecuritiesâ (Bass & Steidlmeier, 1999, p.5).
This type of negative empowerment creates a dysfunctional environment where they âmay mislead, deceive, and prevaricateâŠbe subtle and speak with a forked tongue. For instance, offering followers empowerment, yet continuing to treat them as dependent children.They talk about empowerment but actually continue to seek controlâŠthey publicly give the impression that they are concerned about the good that can be achieved for the group, organization, or society for which they feel responsible; but in private they are primarily concerned about the good they can achieve for themselvesâŠThey are spiritual leaders who are false prophetsâ (Bass & Steidlmeier, 1999, p. 5-6).
Pseudoâtransformational leadership is a term that ârefers to leaders who are self consumed, exploitive, and power oriented, with warped moral valuesâ (Northouse, 2007, p. 77). It is âconsidered personalized leadership, which focuses on the leaderâs own interests rather than the interests of othersâ (Northouse, 2007, p. 177). Michael Eisnerâs style of leadership can also be attributed as a transactional leadership where âfollowers are motivated by the leadersâ promises, praise, and rewards, or they are corrected by negative feedback, reproof, threats, or disciplinary actions.
The leaders react to whether the followers carry out what the leaders and followers have âtransactedâ to doâ (Bass & Steidlmeier, 1999, p. 3).Transactional leaders âdo not individualize the needs of subordinates or focus on their own personal developmentâ (Northouse, 2007, p. 185). Rather, they âexchange things of value with subordinates to advance their own and their subordinatesâ agendas.
Transactional
leaders are influential because it is in the best interest of subordinates to do what the leader wantsâ (Northouse, 2007, p. 185). In spite of Eisnerâs overt arrogance, insensitivity, and ineffective leadership style, he did turn a âfaltering animation-and-amusement-park company into one of the worldâs most successful prayers of home entertainmentâ (Epstein, 2005).Even in the midst of much negative press, Eisner attaining his goals also reflects the Path-Goal Theory where âleaders motivate subordinates to accomplish designated goalsâ (Northouse, 2007, p. 127).
The independent variable of âdirective path-goal clarifying leader behavior directed toward providing psychological structure for subordinates: letting subordinates know what they are expected to doâ (House, 1996).The more specific path-goal approach that would fit this situation would be directive leadership where a âleader who gives subordinates instructions about their task, including what is expected of them, how it is to be done, and the timeline for when it should be a completedâ (Northouse, 2007, p. 129-130).
Conclusion
Eisner was successful in attaining financially positive goals for the Walt Disney Company, but he did it at the expense of losing quality employees, business relationships, as well as tarnishing the companyâs image and reputation.By using a dictatorial, authoritarian, micromanagement style, Michael Eisner was somewhat successful in increasing Disneyâs bottom line but it also damaged key relationships and business associations. As a pseudoâtransformational leader, Michael Eisner âwelcomed and expected blind obedienceâ (Bass & Steidlmeier, 1999, p.6). He maintained a personal distance between himself and his followers. He also âencouraged fantasy and magic in his vision of an attractive futureâ (Bass & Steidlmeier, 1999, p. ), but he also fostered âfavoritism and competition among followers in the guise of being helpfulâ
(Bass & Steidlmeier, 1999, p.7).
Pseudo-transformational leaders tend to use power âprimarily for self-aggrandizement and are actually contemptuous privately of those who are supposed to be serving as leadersâŠprimarily concerned about their power and gaining more of itâ (Bass & Steidlmeier, 1999, p. 7). These leaders can be âdeceptive, domineering, and egotistical demagogues while their public image may be that of saviorsâ (Bass & Steidlmeier, 1999, p.7).
They are âpredisposed towards self-serving biasesâ (Bass & Steidlmeier, 1999, p. 7). Transactional leadership was applied by expecting subordinates to carry out his dictatorial orders with no questions asked. If subordinates dared to question Eisnerâs authority, they were immediately terminated. He ruled by fear, manipulation, and coercion.
Michael Eisner attained his objectives by using the Path-Goal approach, but he failed by achieving them in a negative fashion. Eisner basically walked over people to acquire his end results. In the long run, that type of legacy is never of good repute.When a companyâs image is associated with unethical leadership, its bottom line eventually suffers as well.
So itâs a good thing that Roy Disney was tenacious in ousting a demon like Michael Eisner from his beloved uncleâs company. Walt Disney is probably smiling from his grave at this point.
References
- Bass, Bernard M. , & Steidlmeier, Paul (1999). Ethics, Character, and Authentic Transformational Leadership Behavior.
- Leadership Quarterly, 10(2). Carter, Bill (2004, March 8). ABC Under Disney: Kingdom, Yes.
- Magic, No. ; Micromanagement Leads to Missed Opportunities. The New York Times.Retrieved from http://query. nytimes. com/gst/fullpage. html? res=9407E6D61F3FF93BA35750C0A9629C8 Disney, Roy. (2003, November 23).
- Roy Edward Disney's Resignation Letter. Retrieved March 12, 2008, from MiceAge. com Web site: http://craphound. com/roytoeisner.
- txt Economist (2004). A Full-Time Leader. Economist,
370(8365). Epstein, Edward Jay (2005). How Did Michael Eisner Make Disney Profitable? The Hollywood Economist, , . Retrieved from Washingtonpost Newsweek Interactive Co. LLC Web site: http://www. slate. com/id/2116794/
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