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N201 Leadership In Business

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Case 1

In 2001 and 2002, HP and Compaq were merged for #1 global revenue positions in servers, access devices (PCs and handhelds) and imaging and printing, as well as leading revenue positions in IT services, storage and management software. Early statements showed that the merger would occur in at least 15,000 lost employment and unique culture at HP that would concentrate on sales and services, preferably than engineering innovation. Carly Fiorina, CEO of HP cut suspected R&D expenditure is terrible for a percentage of the sale in HP. Packard, the eldest son of one of the founders of HP, sent a statement to shareholders on November 11, 2001. Packard’s comment strongly suggested that the new leadership of HP disrespected employees. That makes employees of HP to distrust, dissatisfaction and productivity. (Kimberly D. Elsbach, Ileana Stiglian, Amy Stroud, 2016)

In this case, CEO of HP Cindy Florina use authority to accomplish the task of the merger with Compaq because she had to complete the task beside of employee dissatisfaction. Changing are not acceptable to intimacy work life. Ms Florina decides without care of employee dissatisfaction. That lead to tension media fight between the company’s public figures. Also, lead HP’s employees to disturb of on the Clary Florina. As a manager in this situation he or she likely to choose the decision like Clary Florina to complete the task of organisation. As a leader in this situation, he will likely to ask advice and discussion to a stakeholder of HP.

Case 2

After the merger of Compaq, employees are dissatisfied and distrust of the organisation leadership. To regain the trust and motivate people is essential to increase productivity. In March of 2005, Mark Hurd was appointed as new CEO of HP. Instantly, he made apparent his intention of bringing back and abide by to the original HP way. He is very comfy to HP employees. It makes public opinion to see him positively. However, he was pretended to restore the old HP culture. He had made series of decisions in sharp difference with the old values of the HP way which earned the label of “the Hurd way” emphasising his autocratic leadership style. On April 2006, he fired 15300 jobs, nearly 10% in total of organisation and he hired external executives from Siemens, Palm One, and Dell instead of internal HP leaders who had grown their careers over many years at HP. That lead current employees to dissatisfaction again to new leadership. (Kimberly D. Elsbach, Ileana Stiglian, Amy Stroud, 2016)

In this situation, the manager will do things and work done in order. As a manager, he or she will maintain the organisation images and many aspects that against the image of the organisation. In Mark Hurd case, he pretended to restore the old HP culture rather than motivate people in cultural transformation. Unless careful about the dissatisfaction to employees to rather than replacing the vacant executive positions from outside of HP. Addition, he uses an autocratic leadership style to complete the task of organisation. As a manager, to regain the trust form employee he or she will likely to use instructions, following specific procedures. This led to system leadership style.

As a leader in this situation, he or she will probably motivate people or encourage people in this transformation of culture. The leader will be creating a sustainable moment in a changing the environment.

Leadership theories in a situation

In case of a merger with Compaq, CEO of HP use authority to accomplish the task to the merger with Compaq because she uses task-orientated style beside of employee dissatisfaction. Changing are not acceptable to intimacy work life. That indicates Ms Florina using classical management theory to accomplishing her company task. If the manager in this situation, the manager will choose this decision to achieve the company task. As a leader in this situation, he will probably prefer the leader will like to accept the behavioural theory or situational theory.

In autocratic leadership, which contributes to order, consistency, and the resolution of conflict. One type of autocratic behaviour is initiating structure, are also likely to be seen as facilitating work and persuading. Autocratic leaders are stress obedience, loyalty, and strict adherence to roles. They make and enforce the rules. They understand that decisions are carried out (Smither, 1991). Influential autocratic leaders throughout history have often been praised for their ability to develop reliable and devoted followers and to act as the principal authority figures in establishing and maintaining order. The dark side of autocratic behaviour is abusiveness, creating fear and distrust, using arbitrary and unconditional punishment, ignoring subordinates’ information and inputs to decisions, and relying exclusively on one’s judgment. Authoritarian managers in work organisations as taking full responsibility for decisions and performance. They believe their assignment is to make decisions and see that the choices are carried out. (Calin, 2012)

Situational leadership and contingency are pretty bit similar to one another. Father of contingency theory Fred Edward Fiedler described as for him the effectiveness of task-oriented and relations-oriented leaders was contingent on the demands imposed by the situation. Leaders were assessed as task-oriented or relations oriented according to the way they judged their least preferred co-worker. If the situation was favourable to the leader. The group esteemed the leader; the task was structured, clear, simple, and easy to solve; and the leader had legitimacy and power in his or her position. The task-oriented leader was most likely to be effective in situations that were most favourable or most unfavourable to him or her. The relations-oriented leader was most likely to be useful in circumstances between the two extremes of favourable and unfavourable. Task-oriented people should be selected to lead in cases that are very favourable or unfavourable to the leaders; relations-oriented people should be chosen to lead in situations that are neither very high nor very low in favourability. Otherwise, leaders needed to learn how to change a situation to match their orientation. Some models of situational or contingent leadership have been constructed to provide advice to leaders on when they should be task-oriented and hence directive and when they should be relations oriented and therefore participative. (Bernard M Bass, Ruth Bass, 2008)

The impact of task and relationships orientation the findings have been mixed positive or negative. Explanations have been sought in situational contingencies. These situational contingencies need to be examined for their moderating effects on the impact of relations-and task-oriented leadership on the satisfaction and productivity of followers. For instance, Miner (1982a, 1982b) suggested that high-task, high-relations leadership orientation is most likely to be effective when organisations are a mix of systems of hierarchies and groups. The task orientation fits the hierarchies; the relations orientation fits the groups.

In case 2, after continually changes in the organisation. Employees of HP is dissatisfied and distrust of the leadership of HP. Mark Hud (CEO) use an autocratic and system leadership style in crisis. If a leader in this crisis, he would probably use transformational leadership. 

Open-systems point of view implies sensitivity to the larger environment and organisation in which leaders and their subordinates are embedded. To convert inputs into outputs, flows of energy and information must occur in the system. In open systems, the effects of the outputs on the environment are feedback and new inputs. A manager like to use system theory for result-oriented because the unique culture of HP is focused on sale and service. Employees are not like to change the culture of the organisation. System leadership concentrate on the result rather than the employee satisfaction.

Transforming leadership elevates the follower’s level of maturity, ideals, and concerns for the well-being of others, the organisation, and society. Transforming leaders point to mutual interests with followers. They engage followers firmly without using power, using moral leadership. They transform individuals, groups, organisations, and societies. In case 2, the leader will probably use transformational leadership to motivate and encourage people in changes of organisation culture. (Bernard M Bass, Ruth Bass, 2008)

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