Uncategorized February 6, 2012

Fred Goodwin's CEO style is passé

A chief executive officer (CEO) should aim to inspire their staff, rather than lead by in an alpha-male style, it has been claimed.

Writing for HRmagazine.co.uk, The Influence Business managing director Jack Downton explained that the modern CEO must be someone employees want to follow, rather than a boss they have to follow, referencing the downfall of notoriously "assertive" former RBS head Fred 'The Shred' Goodwin.

Mr Downton claimed that CEOs can inspire people by focusing on their personal integrity, caring nature, vision and effective communication skills. In essence, a bond of trust should be formed.

"Employees that feel coerced or fearful in their roles or actions tend to be resentful, which can result in unpredictable outcomes, whereas employees that are inspired by respect tend to take more responsibility," he remarked.

Mr Goodwin, who was this week stripped of his knighthood, has become the 35th person to have an honour removed since 1995, reported The Guardian. He joins a list that includes Zimbabwean President Robert Mugabe, accused Ponzi-scheme creator Allan Stanford and Romanian dictator Nicolae Ceausescu.

While Mr Goodwin has been turned into something of a pariah in the media; before the financial crisis hit he was considered a captain of industry and a highly respected businessman. He was given his knighthood in 2004 for his services to banking.

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