Having recently watching the film the Wolf of Wall Street, released in late 2013, I could not help but revere at the main character’s ability to rally the troupes, and inspire exceptional performance. Known for his ruthless business practices and questionable personal infliction, Jordan Belfort (played by Leonardo DiCarprio) motivates and enthuses his stock broking minions to achieve excellence (which, according to Belfort, can be measured in riches). As their boss, he is feared and venerated, clearly having chosen the directive and achievement-oriented styles based on his staff members’ external locus of control, being greed, and their high expectations of success. The path-goal leadership theory is discussed as a means of enhancing subordinate performance, for the greater good of their leader, Jordan Belfort.
According to the path-goal theory of leadership, first proposed in the early 1970’s, effective leadership enhances the performance and job satisfaction of subordinates through motivation and the belief that their hard work will result in a desirable payoff. In the Wolf of Wall Street, Belfort dangles the carrot of material goods and mammon, to entice his workers to perform to an optimal standard, while denigrating them and then bringing them back up again with his inspiring speeches and propaganda. By displaying his riches, which include yachts, holiday houses, prostitutes and drugs, he demonstrates to his subordinates the rewards that their hard work will eventually bring. He is the piper, and they are effectively the rats.
The thorough instructions he provides to his workers, which include detailed scripts to use when broking over the phone, and his no-nonsense approach to training and development, demonstrate his directive leadership abilities. This leadership style is employed effectively due to the workers’ external drive to succeed. Also employing an achievement-oriented leadership style, which focuses on bolstering the confidence of brokers and expecting superhuman standards (often achieved through the use of illicit drugs).
Working in the “pit” is both demanding and complex, as brokers push stocks to ensure themselves, and their boss, benefit financially. The high pressure boiling pot that is their work environment requires a special leader, who can evaluate his followers’ needs, and their task characteristics, and employ the most effective leadership style. Belford encourages his staff and sets challenges that enable his staff to assert themselves, and excel. Although his ethics are constantly in question, throughout the movie, Belford’s leadership skills are unrivaled.
References:
Northouse, P.G. (2013). Leadership: Theory and Practice, 6, 137-158. Thousand Oaks, CA: SAGE Publications, Inc.
Very interesting post. Like you, I have seen The Wolf of Wall Street and have found myself pondering the leadership style that Jordan Belfort exhibited in the film. This post primarily discussed that as it pertains to a Style Approach and the Path-Goal Theory. I believe that these are appropriate looks at the leadership style displayed in the film.
The Style Approach makes a good deal of sense, as Belfort clearly exhibited an array of both task and relationship behaviors. Belfort was able to build a team that not only loved him but also loved each other, and rejected those that did not fit in with the feel of the team. Additionally, I would agree that he was very directive, to the point of writing scripts that brokers were to follow to the ‘T,’ and he rewarded achievement with large commissions and company fetes. The Path-Goal Theory also makes sense in this case, for similar reasons. Jordan removed obstacles routinely to ensure that his team would reach successful conclusions. And, of course, he more than provided the “pot of gold” at the end of the rainbow.
I would also suggest that looking at Jordan himself, as a leader, through the Trait Approach may bring other details to light. You suggest that Jordan was feared, which may be true. I would counter with the fact that Jordan was charismatic in a way that had no rival. It was a trait that did him well in all areas of his life. It is why Donnie wanted to work with him so badly that he cold quit a job just to follow Jordan. It’s why Naomi wanted to be with Jordan, despite knowing he was married and about his many flaws. This is one of just many traits that Jordan exhibited that may offer other looks at how he was able to grow a company to the heights he did.