FACULTY OF BUSINESS

COURSE MGMT 321 - ORGANISATIONAL BEHAVIOUR AND LEADERSHIP

COURSE LECTURER - RUTH ELINEEMA

By

PHILORIAN M. MPENDAYE
ID. No. 2011101022

13th Day of November, 2014

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 Questions

You are the founding entrepreneurs of Gongali Model Company, a fast growing appropriate
technologies developers and creative lending systems company. Customer demand for new
appropriate technologies has boomed in just a year and you have added 50 new employees to
develop new technologies. These new employees are young and highly skilled and have been
putting a lot of time in seeing their ideas succeed. The growth of your company is so rapid that
you still operate informally, and as top managers you have been still absorbed in your previous
jobs that you have put less attention in leading your growing company.

There have been increasing complaints from employees that as managers you do not recognise or
reward their good performance and they do not feel equitably treated and they are not listened
enough. A bad atmosphere seems to be developing in the company and several talented
employees have left. You realise that you have done a poor job of leading your employees and
want to develop a common leadership approach to encourage employees to perform well and
stay with your company.

Questions

1. Analyze this leadership situation and uncover the contingency factors that will be
important in choosing a leadership style. (Hint: Examine the four leadership styles
against this situation).

2. Which is the most effective leadership approach to adopt? Why?

3. In what other ways could you influence and persuade your employees to perform well
and stay with your company (examine motivational and retention techniques
understanding that these techniques differ among people of different personalities).

Instructions: Not more than 5 pages, 12 font size, Times New Roman, 1.5 line spacing.

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 Table of Contents

Pages

Questions and Instructions................................................................................................................i

Table of Contents.............................................................................................................................ii

Question 1........................................................................................................................................1

Question 2........................................................................................................................................3

Question 3........................................................................................................................................4

BIBLIOGRAPHY............................................................................................................................6

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Question 1: Analyse this leadership situation and uncover the contingency factors that will be
important in choosing a leadership style. (Hint: Examine the four leadership styles
against this situation).

According to Stodgill, R. M (1948) leadership is defined as the process or act of influencing the
activities of an organised group in its efforts towards a goal and goal achievement. From the
scenario of leadership style at Gongali Model Company, on one hand the managers practiced
laissez-faire leadership style. The fact is that the managers had a tendency of avoiding collective
decisions, not responding to problems, hesitating to take action and delaying responses. The
managers did not focus on management aspect of their work and the work of their employees.

It is observed that the managers did not optimise business results in an environment as they were
non-responsive to the efforts and performance of employees. The managers were seen as
uninvolved in company activities, which led to a lack of cohesiveness within workforce system.
Since the managers were unconcerned with what is happening, the employees picked up on this
and expressed less care and concern for the company. Employees could acquire more expertise;
leaders might have then switched back to a more delegative approach that could give employees
more freedom to work independently.

On the other hand, the Gongali Model Company was managed by autocratic leadership style.
The managers chose to make the majority of decisions on their own. There was lack of
involvement of employees in decision making process that gave rise to employees not assuming
ownership of their work. This contributed to low morale, lack of commitment and manifested in
turnover and work stoppage. The managers devalued employees by ignoring their expertise and
input. They did not encourage or accept ideas and feedback from employees.

Tannenbaum, R and Schmidt, W. H (1973:231) recognise that “effectiveness of any one of

leadership styles depends on the situation and personality of the manager.” The manager should
consider three contingency factors when deciding about the appropriateness of the leadership
styles. The leader should first of all look at the forces operating within his or her own
personality. His or her behaviour is influenced by his or her belief about the extent to which
subordinates should be involved in making decision which affects them; relative importance of
organisational efficiency, personal growth of subordinates and company profits. Then, he or she

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has to consider how much confidence he or she can repose in his subordinates, which depends on
his assessment of their knowledge and competence with respect to the problem.

Secondly, the leader has to evaluate the competence, motives and commitment of his or her
subordinates before choosing his or her leadership behaviour. The leader may permit his or her
subordinates greater freedom in decision making if he or she finds that they have relatively high
need for independence; readiness to assume responsibility for decision making; understanding of
and commitment to organisational goals; necessary knowledge and competence to make the
decisions; and expectation of share in decision making (Agarwal, 2007:231). Thirdly, the
characteristics of the organisation such as its values and traditions, size of the working units,
their geographical locations, and the degree of inter-and intra-organisational interactions required
to attain company goals; ability of the group members to work together as a unit; kind of
knowledge and competence required to handle the problem, and whether the group possesses it;
pressure of time; and long-term strategy is considered.

Four leadership styles against the leadership practices of the managers at Gongali Model
Company are bureaucratic leadership style, democratic leadership style, charismatic leadership
style and situational leadership style. Bureaucratic leadership style, it is defined as the system of
leadership in which authority is defused among a number of departments, offices and individuals
and there is strict adherence to a set of operational rules (Gray, 2008:58). It works well in
environment where following the rules of an organisation rigidly that is doing things by the
books, which means following polices, guidelines and working practices that an organisation
may have. Employees are awarded for being able to follow the rules and producing consistently.

Secondly, democratic leadership style can be ideal leadership practice. It is the leadership in
which a leader encourages the subordinates and employees to become a part of the decision
making process. The leader’s actions are based upon trust, integrity, honesty, equality, openness
and mutual respect. The leaders show consideration and concern for others. The leaders strive to
empower employees to the maximum capacity and desire. They encourage and involve
employees in decision making process. Leaders guide employees on what to perform and how to
perform, while employees communicate to leaders their experiences and suggestions if any. It
promotes optimistic work environment and encourages creativity. It fosters open communication

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among all employees at all levels. Reasons and circumstances pertaining to decisions that affect
the employees, departments or organisations are shared in a timely fashion. It strives to empower
all employees to their maximum capacity and desire.

Thirdly, charismatic leadership style is another leadership style. Charismatic leadership style is a
self confident, enthusiastic leader able to win followers’ respect and support for his or her vision
of how good things could be (Gray and Lockyer, 2004). It is based on the leader’s ability to
inspire and influence the actions of others. It encourages certain behaviour in others via force of
personality, persuasion and eloquent communication. It is excellent for encouraging creativity
and forward-thinking decision making. Leaders have ability to motivate followers or employees
to anything. They are committed, loyal and willing to deliver what is expected.

Lastly, situational leadership style is another approach against the situation. Situational
leadership style is an attempt to demonstrate the appropriate relationship between the leader’s
behaviour and a particular aspect of the situation - the readiness of the follower (Hersey and
Blanchard 1995:2007). A leader’s success depends on his or her ability to understand and read
the readiness of his or her employees in any given situation. It requires a great a great deal of day
to day interaction between leader and follower to ensure that the follower is ready when the time
comes to act. It allows the leader to target the actions of the employees to the situation at hand.

Question 2: Which is the most effective leadership approach to adopt? Why?

With regard to the managerial practice and its consequences at Gongali Model Company, I am of
the opinion that the most effective leadership approach to adopt is the situational leadership
style. Northouse, P. G (2010:33) argues that “some management experts have identified
situational leadership style as a more effective approach. In this leadership, successful leadership
occurs when the leader’s style matches the situation.” The leaders stress the need for flexibility
to adapt the appropriate leadership approach to the situation. The situational leadership style is
regarded as the most effective leadership approach due to its practicality. Situational leadership
style is easy to understand, intuitively sensible, and easy applied in a variety of settings.

Also, situational leadership style has prescriptive value. Whereas many theories of leadership are
descriptive in nature, the situational leadership approach is prescriptive (Northouse, 2010:94).

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Situational leadership style tells the managers what they should and should not do in various
contexts. For example, if the subordinates are very low in competence, it prescribes a directing
style for the managers. On other hand, if the employees appear to be competent but lack
confidence, it suggests that the managers lead with supporting style.

However, situational leadership style emphasises leaders’ flexibility (Graeff, 1983 and Yukl,
1989). It stresses that leaders need to find out about their subordinates’ needs and then adapt
their leadership approach accordingly. Lastly, situational leadership style reminds the managers
to treat subordinates and employees differently based on the task at hand and to seek
opportunities to help subordinates and employees learn new skills and become more confident in
their work (Fernandez and Vecchio, 1997 and Yulk, 1998).

Question 3: In what other ways could you influence and persuade your employees to perform
well and stay with your company (examine motivational and retention techniques
understanding that these techniques differ among people of different
personalities).

Motivation is a set of psychological processes that cause the arousal, direction, and persistence of
individual’s behaviour toward attaining a goal (Greenberg, 2003 and Robbins, 2008). Various
theories describe about motivation of employees. In motivational and retention techniques for
employees several motivation theories are involved. Abraham Maslow’s (1943) hierarchy of
needs theorises the existence of five sets of hierarchical innate drives or needs. Herzberg’s
Motivation Theory (1959) focuses on factors for job satisfaction and job dissatisfaction, Mc
Clelland - Achievement Motivation Theory (1961) focuses on power, affiliation and achievement
that motivate human behaviour and Mc Gregor’s Participation Theories - Theory X and Theory
Y (1966) describe two contrasting models of workforce motivation. The following are
motivational and retention techniques for employees to stay in the company:

Provision of rewards to employees motivate and retain employees at workplace. Rewarding

employees with incentives such as promotions, increases in salaries, increased discretion,
superior work assignments and provision of additional responsibility motivates and retains
employees (Wart, 2008:218). The first task of a manager is to find out what motivates his or her
employees and make a match between employee’s desires and the offered reward.

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Recognition of employees’ efforts and work performance is another motivational and retention
technique. Recognition pertains to both informal and formal intangible incentives that show
appreciation and provide praise. Recognition always has a positive connotation and it
acknowledges good behaviour or actions. Managers should offer a good word, a short written
comment on a submitted paper, a celebration toast, a pat on the back or a warm handshake.

Goal setting helps motivate and retain employees. Research firmly suggests that goal-setting is
an extremely effective tool for managers to motivate and improve the performance of employees
(Durant et al., 2006:509). The managers should help their employees become self-motivated by
helping them establish goals and objectives.

Feedback is the way managers continuously shape employee performance. When done correctly,
it motivates employees and improves their actions. Thus, managers should structure feedback in
a way that helps the employee to accept the comments. For poor performance, a better strategy
for managers is to have the attention on devising methods for future improvements.

Belongingness feelings increase organisational commitment, which in turn cause employees to

undertake actions for the sake of the group and organisation (Vandenabeele, 2007:553).
Managers should strive to create a distinctive corporate identity. As a first step, to achieve this
goal, managers should create a mission statement that can serve as their team motto.

Training and career advancement plays vital role in motivating and retaining employees at
workplace. Along with training and career services, managers should hold timely, structured, and
thorough interviews with employees to understand their needs and aspirations. Next, managers
should provide career advice and fit a career plan to the employee (Wart, 2008:217). Building
interpersonal relationships at workplace plays an important role in motivation and retention of
employees. Showing courtesy to an interest in all employees regardless of hierarchy means their
basic humanity is appreciated and valued (Wart, 2008:216).

Therefore, public and private sectors face these days an unprecedented challenge, which can be
overcome only by the work of highly motivated and productive employees who get “more for
less”. Yet, it is believed that managers do not have means to stimulate their employees at a full
swing due to rigid laws, regulations and guidelines.

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BIBLIOGRAPHY

Agarwal, R. D (2007). Organisation and Management. New Delhi, India: Tata McGraw-Hill
Publishing Company

Bernard M. Bass, Ruth Bass. (2008). The Bass Handbook of Leadership: Theory, Research,
and Managerial Applications (Ninth Edition). New York, United States of America:
Simon and Schuster Press

Bertozzi, D. I (2009). Leadership in Organisations: There is a Difference between Leaders and

Managers. Maryland, United States of America: University Press of America

Cassidy, C and Kreitner, B (2010). Supervision: Setting People up for Success. Ohio, United
States of America: South-Western Cengage Learning

Chatterjee, B (2009). Human Resource Management: A Contemporary Text (Fourth Edition).

New Delhi, India: Sterling Publishers Private Limited

Gray, D., Lockyer, B and Vause, J (2004). Public Service (Uniformed): Book 1. Oxford, United
Kingdom: Heinemann Educational Publishers

Hersey, P and Blanchard, K. H (1995). Management of Organisational Behaviour: Utilising

Human Resources (Seventh Edition). Englewood Cliffs, United States of America:
Prentice Hall

Hinkin, T. R and Schriesheim, C. A (2008). An Examination of Non-leadership: From

Laissez-faire Leadership to Leader Reward Omission and Punishment Omission.
Journal of Applied Psychology, Volume 93(6)

Northouse, P. G (2010). Leadership: Theory and Practice (Fifth Edition). New Delhi, India:
SAGE Publications India Private Limited

Tannenbaum, R and Schmidt, W. H (1973). Retrospective Commentary in How to Choose a

Leadership Pattern. Harvard Business Review, Volume 51(3)

Vecchio, R. P (1987). Situational Leadership Theory: An Examination of a Prescriptive

Theory. Journal of Applied Psychology, Volume 72(9)

Yukl, G. A (1989). Leadership in Organisations (Second Edition). Upper Saddle River, United
States of America: Prentice Hall

Yukl, G. A (1998). Leadership in Organisations (Fourth Edition). Upper Saddle River, United
States of America: Prentice Hall