Written by Catherine LaCasce
Studies have shown that an individual’s personality traits contribute to effective leadership, although the importance of the specific trait of agreeableness is debatable. Many ways have been developed to analyze the concept of leadership, including the Trait Approach Theory. Trait approach identifies key personality characteristics and analyzes how those traits relate to effective leadership. Agreeableness has been listed by researchers as one of these important traits, and in the case of the Market Basket strike of 2014, it was the agreeable personality of Arthur T. Demoulas that caused the overwhelming demand for his return as CEO of the organization.
Numerous studies have been conducted attempting to isolate specific traits, which has led to the creation of the Five-Factor Personality Model (Northouse, 2015, p.26). Five broad terms describe different aspects of personality that researchers argue is relevant to practicing effective leadership. “These factors, commonly called the Big Five, are neuroticism, extraversion (surgency), openness (intellect), agreeableness, and conscientiousness (dependability),” (Northouse, 2015, p. 27). This model suggests that each of these qualities is important, however varying amounts of each are desired. Judge, Bono, Ilies, and Gerhardt (2002) listed agreeableness as the least important of those traits; extraversion was listed as the strongest factor, followed by conscientiousness, openness, and low neuroticism.
Judge, Bono, Ilies, and Gerhardt (2002) may have dubbed agreeableness as the least important personality trait of the Big Five, however the nurturing tendencies and caring personality of Arthur T. Demoulas directly inspired the uprising of employees and customers alike to boycott for his return as CEO of Market Basket in 2014 after the board of directors orchestrated a take over, and pushed him out of the organization.
Market Basket is a family owned grocery store chain with over 70 locations placed primarily along the east coast region of the United States. Arthur T. Demoulas belonged to one of the two branches of the family that managed the company. “He joined the company board in 1974, just a year out of high school, and rose to president in 2008, winning the affection and loyalty of workers who credit him with fighting tight-fisted relatives to preserve strong wages, bonuses, and a retirement plan, while keeping prices low for customer,” (Borchers).
In June of 2014, Demoulas was dismissed by the board of directors who were interested in increasing profits of the company by way of raising product prices and downsizing employee benefits. This sparked the beginning of a historic strike originated by Market Basket employees and customers who boycotted for the reinstatement of Demoulas, and heralded his style of leadership. “Talk to almost anyone on the picket line, and you’ll hear a story about Arthur T.’s famous personal touch – how he checks on ill workers, asks about kids and spouses, and offers comfort at funerals,” (Borchers). This is just one of the countless examples of testaments to his agreeable personality. Demoulas became the model example of a boss that thought of his employees as family members, and of a leader who believed the success of the business was of the same level of importance as the wellbeing of the workers. For almost two months, employees went on strike and customers loyal to the cause shopped elsewhere – these combined actions crippled Market Basket and sent a strong message to management that either “Artie T.” would return, or the company would cease to exist. Demoulas began attempts to buy back the company and regain control. The board of directors finally reached an agreement with Arthur T. Demoulas, selling Market Basket to him in a $1.5 billion deal in August of 2014.
The power of agreeableness as a personality trait of a leader is underestimated. Market Basket workers went on strike calling, not for better pay or better hours, but for a specific leader and the characteristics of his personality. Under Demoulas’s management prior to the strikes, Market Basket saw substantial profits while paying relatively high wages, and charging low product prices (Gittleson). The outrage over his dismissal was unprecedented and it seemed everyone was doing their part to ensure the success of the strikes. Even in my small town of Claremont, New Hampshire, Market Basket shelves were bare, and employees lined the streets daily with picket signs protesting. Workers who joined the strike were fired (no matter how may years of service they had given), and customers paid high prices for groceries as competitors took advantage of the situation and grossly marked up their products. It took months of commitment to the protest, and a willingness to sacrifice greatly, but in the end Arthur came back. From the beginning he demonstrated concern for others, and the importance of establishing personal connections with employees and customers. Arthur T. Demoulas’s agreeable personality qualities directly influenced his management style, and contributed to his great success and effective leadership.
References
Borchers, C. (2014, August 22). Arthur T. Demoulas’s personal touch can cut both ways. Retrieved September 6, 2015, from https://www.bostonglobe.com/2014/07/30/timeline-events-market-basket-standoff/FRC8PC7zZVncyUXMYc2cDM/story.html
Gittleson, K. (2014, August 1). Market Basket: Workers risk it all for their boss – BBC
News. Retrieved September 6, 2015, from http://www.bbc.com/news/business-28580359
Judge, T.A., Bono, J.E., Ilies, R., & Gerhardt, M. W. (2002). Personality and leadership: A qualitative review. Journal of Applied Psychology, 87, 765-780.
Northouse, P. (2016). Introduction In Leadership: Theory and Practice (Seventh Ed.). Los Angeles, California: Sage Publications.