The relative importance of participative versus decisive behavior in predicting stakeholders' perceptions of leader effectiveness

Today's leaders are often faced with resolving paradoxes stemming from interrelated, yet contradictory demands. One example is the tension between participation and decision speed because, despite its advantages, stakeholder involvement often slows the decision-making process. Theory and research suggest that a "both-and" approach in which leaders simultaneously harmonize competing demands is associated with effectiveness. Consistent with this reasoning, we hypothesized that leaders rated higher in both participative and decisive behavior are perceived as most effective. Additionally, however, we hypothesized that stakeholders place different importance on these behaviors, with direct reports emphasizing participation and supervisors emphasizing decisiveness. Using a large 360-degree feedback dataset, several analyses conducted both within and between stakeholder groups supported these predictions. These results add needed nuance to the leadership literature, suggesting that a "both-and" approach may paradoxically result in some behaviors that are less predictive of effectiveness for certain stakeholders.