Question

In the Management in Action case, a real - estate executive mentioned that when it came to technical knowledge, Neumann which is indicative of

Multiple Choice
O has extraordinary abilities; transformational leadership
O is unethical; charismatic leadership
O doesn't know what he doesn't know; the Dunning-Kruger effect
O has extraordinary abilities; empowering leadership

Answer 1

The mention of Neumann's lack of awareness of his technical knowledge limitations is representative of the Dunning-Kruger effect, a psychological bias where less competent people overrate their abilities.

Step-by-step explanation:

In the Management in Action case, the statement that Neumann "doesn't know what he doesn't know" is indicative of the Dunning-Kruger effect. The Dunning-Kruger effect is a psychological phenomenon in which individuals with lower ability at a task overestimate their own ability, whereas more competent individuals may underestimate their competence as they assume that tasks which are easy for them are also easy for others. This effect is particularly relevant in management and leadership contexts where self-awareness is crucial for effective leadership. It contrasts with other forms of leadership such as transformational leadership, where leaders inspire and motivate change, or charismatic leadership, which involves a compelling charm that can inspire devotion in others.