He acknowledges that employers or partners who use fear-based leadership are not always malicious. He states that this behavior is often seen among leaders who are simply hiding behind their own fears and insecurities. This can backfire, and turn friction into full-on devastation within the company.

He acknowledges that fear is an inherent reaction for most leaders, especially when driving a new business initiative. The key, he points out, is to handle this fear without projecting it onto others. When an employer does this it "creates the strongest and most sustainable platform for both short and long term success," says Roderick Kagy.

Otherwise, leaders internalize their own fears and turn them into dangerous tools to push for productivity. Kagy acknowledges that these fear-tactics can work in the short term, but only cause damage later on.

Kagy cites Laurie K. Cure, PhD, author of Leading Without Fear, to explain why fear creeps into leadership. Oftentimes, business leaders feel the need to create a sense of urgency. They are tempted by the immediate effectiveness this method offers. Cure warns that, although it appears to increase productivity, urgency wears down morale and creates mistrust over time.

Cure suggests that when leaders cannot hide their own insecurities, fear-tactics are a direct result. She explains that powerful self-discipline is required to prevent projecting one's fears onto others. Employers may be blind with fear and not see how they are using dangerous tactics in their day-to-day leadership.

In a Forbes.com article, John Kotter points out that adding stress to top-performers is more likely to make them leave, rather than inspire them to work harder. He insists that increasing productivity through fear is likely to burn out top-performing employees.

Kagy advises that in place of fear, leaders need to create a culture of ownership. In this culture, each individual's special talents should thrive within the framework of the organization's vision. By doing so, leaders can relate the success of the business to the personal success of employees.

It is regular practice for entrepreneurs to take risky actions. These actions, Kagy points out, are likely to cause fear. However, embracing that fear is only liable to cause damaging, long-term effects. Kagy urges leaders to embrace the positivity within a risky situation. Overcoming odds can lead to a euphoric effect, as discussed in a BBC Report, and, when handled properly, business risk can become a pleasure worth focusing on.

Kagy urges leaders to turn their attention away from fear, and toward the potential positives of a risky situation. Otherwise, warns Roderick Kagy, leaders are simply asking for business to disintegrate from the inside out.

ABOUT:

Roderick Kagy, CEO of 1 World Foundation, is an entrepreneur, Fortune 100 executive, and leader in business management. Kagy has honed his expertise as a leader and businessman, understands employee markets, and hires only the best in the field for every job his company takes on. He has dedicated his personal life and his career to improving the lives of the less fortunate. 1 World Foundation focuses on economic development in both the United States and Africa, including Kenya, Zambia and Ghana. Efforts include supplying citizens with clean water and infrastructure improvements to enhance quality of life.