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This paper proposes that shame is a powerful, underlying force in organisational dynamics; that it affects individual motivation and performance as well as organisational cohesiveness, and impacts strongly on interpersonal relationships and the way that organisations are perceived both internally and in the public arena. Shame is highlighted as a cause of bullying and scapegoating in organisations. The paper concludes by exploring the implications of shame theory for leadership, suggesting that an awareness of shame transactions at all levels of organisational life may help leaders to manage these interpersonal spaces more effectively.

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