1.

How can the way in which leadership research is presented be considered an asymmetric
information situation?

As discussed in class, leadership theories tend to focus on only the positives of the different
theories, however, this does not take into account the ways in which they can be used improperly.
By withholding this information, there is an asymmetric approach to the presentation of the
research itself. For LMX theory, it is portrayed as a positive way to create a connection between
leaders and followers depending on their unique social exchanges and benefits, however what if
the leader uses lmx leadership as a way to just continuously take from the follower while
promising to give back equal benefits that never happen? In this way, even if it is not their intent
to not return the exchange, a leader who is not thoughtful and respectful of follower effort can
create a negative and destructive work environment.
2. How is emotional stability considered necessary for leadership when it has the potential to create
a toxic work environment?

Similar to most things, moderation is key. Emotional stability is crucial to ensure that the leader
isn’t prone to extreme mood swings that could create an unsafe work environment in which
followers are walking on eggshells, but on the other side of the spectrum, too much stability can
lead to situations where the leader appears detached and apathetic to the followers. So to a degree,
it is crucial to have a leader with a good handle on their emotions, but it is also important to
ensure they are able to empathize with their followers in order to foster good employee-leader
connections. There is a fine line between calm and detached, and that is what leaders need to
ensure they stay on the right side of in the workplace.