Organizational Behavior Final
Read this case: “Nab's Rogue Trader” (page 312).
The sources of contingency of power model applies to the situation described in case study 10.2 in McShane & Von Glinow (2010) book through legitimate and coercive sources of power and visibility and discretion contingencies of power. Whether power is used in an ethical (good) or unethical (bad) way power is still power. Power is defined by McShane & Von Glinow as “capacity of a person, team, or organization to influence others” (2010, pg. 290).
This ability to influence people is shown by Luke Duffy in the case study through mainly coercive power but also legitimate power. Duffy’s power was derived from legitimate power because of the position he held …show more content…
The board of directors at Profitel was excited by the prospects of Lars Peeters and the experience he had. Peeters had extensive global experience coming from a European company. His leadership style is stated as being “a high-octane energy level, self-confidence, decisiveness, and a congenial yet strong persuasive interpersonal style.” (McShane & Von Glinow, 2010, p. 370). He came to the board with a strategy to boost profits, which is where the first hint comes into play. One of the board members noted that this was the same strategy he used in his previous two jobs as CEO, showing that he lacks the ability to change his leadership style to the situation. Fiedler’s contingency model is based off the effectiveness of whether or not the leadership style is appropriately matched to the situation and this case Peeters’ is not. According to Fiedlers’ model leaders cannot change their style and they will always fall back onto their natural style of leadership. Though they might be able to alter their style temporarily but it will not last (McShane & Von Glinow, 2010). What Profitel should have done was find a leader more appropriate for their organizational structure.
2B. Leadership Problems
If organizations, such as Profitel, wish to avoid leadership problems identified in this case study they should put the appropriate leader in that best fits the situation and the organizational structure. Though