Leadership Styles:

Been to one of those opaque meeting called "catchup"? Yeap, inherently it stands for anything but Phycological Safety; yet it offers significant confidentiality, "cover the traces," and potentially legitimizing the business's undisclosed agenda against employee. Read more on Phycological Safety below.

The way organizations treat their employees can make or break their success. A critical factor that distinguishes thriving workplaces from struggling ones is psychological safety. This concept is not just a buzzword; it is a foundation for fostering a culture that encourages creativity, risk-taking, and genuine engagement. Yet, many businesses unconsciously slip into patterns of paternalism or exploitation, stifling their potential.

Paternalistic leadership operates in a style similar to a family patriarch or matriarch, where a dominant figurehead oversees the actions of their employees in a manner akin to a large, familial unit. ne distinctive feature of paternalistic management is autocratic decision-making. Another more subtle example of this can be seen in the way Steve Jobs led Apple Inc. His leadership was marked by his assertive and unyielding demeanor, expecting absolute loyalty and trust from his employees, promising in return to keep their best interests at heart.

Similarly, gender-neutral phrasing like "parental leadership" is becoming more prevalent to replace paternalistic or maternalistic leadership. For instance, Sheryl Sandberg of Facebook actively advocates this leadership style, emphasizing the importance of employers caring for their employees like a parent would for a child, with the understanding that the authority figure knows what's best for the organization.

However, paternalistic leadership can have detrimental impacts on employee retention and satisfaction. It may foster dependence and limit opportunities for employees to develop critical thinking and decision-making skills. At Apple, for example, Steve Jobs' strong-headed approach led to a reportedly high-stress working environment, leading to high employee turnover. Such leadership styles can also hinder innovation and creativity as they centralize decision-making, leaving little room for employees' input. Furthermore, paternalistic leadership may be perceived as overbearing and intrusive, resulting in decreased job satisfaction and potential

Exploitative leadership is a detrimental management style where the leader takes advantage of their power and position, often to the detriment of their employees. This harmful approach can manifest through overworking employees without adequate compensation, lack of regard for well-being, and suppression of employee's rights and voices, among others.

One infamous example is the Foxconn Technology Group, a key supplier to Apple, which hit international headlines in 2010 when 14 of its employees allegedly committed suicide due to poor working conditions. Long working hours and insufficient pay led to an overflow of complaints.

Another example is fast-fashion behemoth, Fashion Nova. In 2020, the LA Times reported that the company was under investigation for owing $3.8 million in back wages to its workers, most of whom were paid less than the minimum wage, while toiling away in deplorable conditions.

These instances underscore the importance of maintaining ethical leadership and work culture. Businesses that prioritize psychological safety, rather than exploiting their workforce, can elicit greater creativity, risk-taking, and genuine engagement from their teams. This not only improves employee satisfaction and retention but also drives the company's success and reputation in the long run.

So much for being a Fashion Nova fan and loyal customer. Note to myself of course.

The Rise of Psychological Safety in Modern Workplaces

Psychological safety is the belief that one can speak up, take risks, and share ideas without fear of negative consequences. In companies that prioritize psychological safety, employees feel valued and respected, leading to greater job satisfaction and productivity. However, when this is lacking, as statistics show, the results can be detrimental to both individual well-being and organizational performance.

In environments with low psychological safety, employees are more likely to leave their jobs within a year. This high turnover rate reflects a deep-seated dissatisfaction with the workplace environment. When people feel unsafe to express themselves, disengagement levels soar, affecting motivation and performance. A staggering 70% of employees report feeling disengaged at work under such circumstances, illustrating the widespread impact of low psychological safety.

Furthermore, teams are 60% less likely to take risks or propose new ideas in unsafe environments. Innovation stalls, and organizations miss out on potential breakthroughs. The fear of making mistakes or facing ridicule silences creative voices, resulting in stagnation.

Cultivating High Levels of Psychological Safety

Conversely, organizations that prioritize psychological safety experience a vastly different reality. Employees in these environments establish strong interpersonal connections, fostering a sense of belonging and community. They continuously strive to enhance their skills, driven by a desire to contribute meaningfully.

Teams with high psychological safety seek autonomy and accountability, empowering individuals to take ownership of their work. This autonomy fuels creativity and innovation, leading to significant breakthroughs. The respect and trust within such teams translate into increased value creation and a competitive edge in the market.

Transforming Organizational Culture for Success

Respecting and empowering teams' inherent humanity by fostering these four dimensions can transform organizations into inclusive and innovative environments. This approach enables employees to express their true selves and significantly increase value creation. By prioritizing psychological safety, organizations unlock the full potential of their teams, positioning themselves for long-term success.

The Role of Leadership in Fostering Psychological Safety

Leadership plays a crucial role in creating a psychologically safe environment. Transparent communication, active listening, and empathy are foundational elements. Leaders must encourage open dialogue, valuing diverse perspectives and ideas. When leaders demonstrate vulnerability and admit their own mistakes, it sets a precedent for others to do the same without fear of retribution.

Effective leaders empower employees to take risks and make decisions independently, promoting a sense of ownership and accountability. By involving employees in decision-making processes and valuing their input, leaders cultivate a culture of trust and respect. This collaborative approach fosters psychological safety and propels the organization towards innovation and growth.

An increasing number of companies, like Google, are fostering psychological safety within their teams. Their internal research revealed that the most innovative and productive teams are those in which members feel secure enough to take risks and express themselves openly.

Another stellar example is Pixar. Pixar's "Braintrust" meetings are designed to facilitate candid feedback and ensure everyone, irrespective of their rank, can voice their opinion. By doing this, Pixar cultivates a culture of trust and respect, fostering psychological safety.

Salesforce is also renowned for cultivating psychological safety. They notably emphasize trust as their number one value, driving engagement and dedication from their teams. Salesforce encourages open communication, acknowledging and appreciating the effort and risk associated with bringing forth new ideas, thus building a psychologically safe environment.

Bridgewater Associates, the world's largest hedge fund, operates on a foundational principle called "Radical Transparency." This approach, while challenging, encourages employees to voice their opinions, invoke constructive criticism, and realistically evaluate their work, fostering high levels of psychological safety.

These companies exemplify the power of psychological safety in fostering creativity, driving innovation, and maintaining a competitive edge in the market.

Practical Strategies to Enhance Psychological Safety

Organizations can implement practical strategies to enhance psychological safety within their teams. Firstly, regular feedback sessions provide opportunities for employees to voice concerns and suggestions. Constructive feedback helps individuals grow and feel valued, improving overall team dynamics.

Secondly, creating cross-functional teams encourages collaboration and the exchange of diverse ideas. When employees work together across departments, they gain new perspectives and insights, enriching their problem-solving capabilities.

Thirdly, providing training and development opportunities signals a commitment to employee growth. Investing in employees' skill development enhances their confidence and motivation, leading to higher engagement and performance.

I would be keen to know what else organizations can do to lift their game in the Psychological Safety space? Leave your thoughts below in the comments section.

Your thoughts on the matter?

Truly Yours,

Narghiza Ergashova

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Narghiza Ergashova is a highly skilled finance executive based in Australia with extensive experience across industries like property, mining, chemicals, and infrastructure. She is recognized for her expertise in managing complex portfolios, building strong stakeholder relationships, and driving exceptional business performance.

As a thought leader, Narghiza regularly shares valuable insights on leadership, innovation, and personal growth. Through her Medium articles, she covers key topics such as employee engagement, effective leadership strategies, and overcoming business challenges. Her work resonates with professionals looking for actionable advice and inspiration to succeed in both their careers and personal lives.

To learn more about Narghiza Ergashova, you can explore her work on the Blogger, STCK.com or visit her Medium.com profile. Discover her expert insights and strategies for leadership, business growth, and navigating challenges in today’s fast-paced industries.

In May 2025 Narghiza Ergashova released her debut autobiography called Curly Clix Convictions . The book delves into Narghiza's journey as a professional, entrepreneur, and wife and a mother. You can visit her biography by clicking the link below.