Leadership: power and empowerment – a study of two Hungarian companies
Leadership: power and empowerment – a study of two Hungarian companies

Summary/Abstract: The rapid and continued changes of the last few years, especially in the central and eastern Europe region, have produced a context in which the understanding of individual and team psychology is paramount in business settings. This trend shift is visible not only in business strategy, which aims more aggressively at effectiveness, but also in organisational structures, which tend to be flatter and more flexible. On one hand, there is an increasing emphasis on managerial initiative and accountability, and on the power of managers and how they use it. On the other, there is a shift towards the ‘empowerment’ of employees, who thereby cease to be passive, reactive and inert. In the same vein, hierarchical and crystallised structures have begun to make way for cross-functional and project-based teams. This study analyses the creation and distribution of power from leaders to managers and workers in two Hungarian companies situated at opposite ends of the spectrum: an industrial manufacturer and a creative agency.

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