Case Study Analysis: L. J. Summers Company
The problem in this case is L. J. Summers Company’s recently implemented cost reduction plan is causing degradation in the organization’s laissez-faire culture and has put the company at risk while challenging their competitive advantage. Furthermore, the inexperienced production manager (owner’s son, Blaine) is using his unearned power as an authoritarian leader to drive change. However, due to poor leader-follower relations, his management style is negatively influencing the synergies ultimately causing a decrease in group productivity and member satisfaction. In addition to causing turbulence between management and the employees, the cost reduction plan resulted in …show more content…
The authoritarian leadership approach will be the next focus for management. Jon Reese and Blaine Summers will work together to transition into a unified supportive leadership team. Using the path-goal theory, the two will stimulate the individual employee’s valences and increase motivation by working with each employee to establish goals. The goals will be specific, quantifiable, achievable, realistic, and time bound. In conjunction with the goal rollout plan, management will take the opportunity to address the hostile environment issue. The message communicated to all employees is that any form of fighting – verbal and/or physical – is not acceptable behavior and will result in corrective action up to and including termination.
Lastly, a corporate meeting will take place. During this meeting, Mr. Summers (owner) will strengthen the desired organizational culture by sharing the vision for the future of the company. During this meeting, he will use symbolic