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Solution Manual for Leadership in Organizations, 9th Edition

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    Leadership in Organizations Ninth Edition Gary Yukl William L . Gardner, III Leadership in Organizations Resource Manual (Download Only), 9e By Gary Yukl and William L. Gardner, III Gary Yukl

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    Contents Cases General Guidelines for Using Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Case Analyses : Consolidated Products (Ch. 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Superior Staffing (Ch. 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Acme Manufacturing Company (Ch. 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Foreign Auto Shop, Parts 1 and 2 (Ch. 3) . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Echo Electronics (Ch. 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Alvis Corporation (Ch. 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Ultimate Office Products (Ch. 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Ready Foods (Ch. 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Sporting Goods Store (Ch. 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 The New Dean (Ch. 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 National Products (Ch. 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Prestige Marketing (Ch. 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Metro Bank (Ch. 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Astro Airlines, Parts 1 and 2 (Ch. 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Unethical Leadership at Enron (Ch. 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Restview Hospital (Ch. 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Cromwell Electronics (Ch. 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 American Financial Corp. (Ch. 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Southwest Engineering Services (Ch. 11) . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Columbia Corporation (Ch. 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Costco (Ch. 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Turnaround at Nissan (Ch. 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

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    Madison, Jones & Conklin (Ch. 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 A Day in the Life of a Global Leader (Ch. 13) . . . . . . . . . . . . . . . . . . . . . . . 47 Federated Industries (Ch. 1 4 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 River Bank (Ch. 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Outside Exercises Description of Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Exercises: Student Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Managerial Behavior Diary …………………………………………………… 54 Analysis of Leadership in Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Analysis of Famous Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Analysis of Leadership in a Movie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Classroom Exercises Description of Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Exercises: Decision Styles Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 Influence Scenario Exercise . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 69 Analysis of Visionary Speeches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Tower Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Role Play Exercises Description of Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Guidelines for Using Role Play Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Role Plays: Save - Mart Role Play . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Union Chemicals Role Play . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 KB Sportswear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

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    1  Case Notes General Guidelines for Using the Cases The cases provide concrete examples of the abstract conceptions and principles discussed in the book. Most of the cases ask students to identify examples of appropriate and inappropriate behavior by the manager described in the case. Students may be asked to recommend what the manager should have done differently or what the manager should do next. For the more complex cases, it is usually best to have students analyze the case alone as homework and come to class prepared to discuss it. The shorter, less complex cases can be read and analyzed right in class, but the analysis is usually better when it is done as homework prior to class. After a case is analyzed individually by students, there are a number of options for discussing it. One option is to discuss the case with the entire class. Of course, the larger the class, the less opportunity each member has for participation in the discussion. A second option is to form small groups to discuss the case separately and report back to the class on their findings and recommendations. This option is most suitable for a small class. A third option is to select one team of students that will analyze the case prior to the class and present their analysis during class. The remaining students are asked to read the case individually and critique the analysis made by the presenting team. A different team gets a turn to present each week. This approach is more appropriate for a larger class. The following guidelines will facilitate learning from the cases. Some of the guidelines assume the use of small groups to discuss a case following individual analysis of it. 1. When assigning cases to students, explain the purpose of the case and how it will be used. Tell students what type of analysis they are expected to prepare for class. 2. The focus of the initial analysis should be to understand the leadership dilemmas in the case and what the case says about effective leadership, not to find solutions for specific problems. In making this analysis, students should try to use the concepts and theories discussed in the chapter. After a broader understanding is achieved, it is easier to determine what problems exist (if any), how they could have been avoided, and what the manager should do next to deal with them. 3. Emphasize the complexity of leadership situations and the tradeoffs faced by managers in making choices. Encourage students to consider different interpretations of the case rather than quickly focusing on a single, narrow interpretation. Encourage students to look for multiple causes of problems, rather than a simple explanation. Students should try to understand why people acted the way they did in the case, rather than stereotyping them or looking for someone to blame for problems. Most of

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    2  the cases depict managers with both strengths and weaknesses who are trying to do their job in a way they think is appropriate. 4. Just as there are seldom simple explanations for leadership problems, there are seldom guaranteed remedies. In cases describing a manager who was generally successful, ask students to consider what the manager could do to be even more successful, or if there are some completely different approaches that may also be effective in that situation. In cases describing a manager who has gotten into trouble, ask students to consider whether the person has some strengths rather than focusing only on weaknesses. 5. Encourage students to be open to alternative viewpoints when discussing the cases. Remind them that the group discussion will be more successful if one or two people do not try to dominate it and impose their ideas on the group. This guideline about being open-minded also applies to the instructor. Different interpretations of a case provide an opportunity to demonstrate how people approach a problem with different assumptions, biases, and priorities. 6. Vary the membership of small discussion groups over the semester so that students are exposed to different points of view. 7. Encourage students to relate the case to their own experiences. For example, ask students to describe examples of similar incidents they have experienced in current or previous jobs, or in other organizations in which they were members.

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    3  Consolidated Products The purpose of this case is to provide students with an opportunity to use the behavior concepts presented in Chapter 2. One basis for comparing the two successive plant managers is in terms of task-oriented and relations-oriented leadership. However, these two broad categories are not sufficient for understanding what behavior is needed to be an effective plant manager in this company. Students also need to use more specific behavior categories to understand the limitations of each manager. Successive chapters in the book provide additional insights about this case that may not be evident after reading Chapter 2, and you may want to refer back to the case at later points in the course. 1. Describe and compare the managerial behavior of Ben and Phil. Describe each manager’s use of specific task and relations behaviors. How much does each manager use participative or inspirational leadership? Ben was very concerned about employees, and his concern was reflected in efforts to protect employee jobs and make the work environment more pleasant. He socialized with employees, was supportive, and maintained an extensive network of personal friendships with employees. However, Ben had a relatively weak concern for productivity and product quality. He was satisfied to maintain the same level of production, and he did not set high performance objectives and quality standards. Ben used supporting and some aspects of team building, but did little to develop employee skills and confidence. He did not use much planning, clarifying, and monitoring. Ben delegated the responsibility for supervising plant workers entirely to his first-line supervisors, but provided little guidance about what he expected. The case did not describe any active use of consultation by Ben. In contrast to Ben, Phil used a significant amount of task-oriented behavior (e.g., clarifying, monitoring, and operational planning). Phil set high performance standards, pressured people to achieve them, and checked closely on their performance. However, Phil had little concern for employees and did not hesitate to make decisions that cut costs at the expense of employee benefits and jobs. Phil was low on relations-oriented behaviors such as supporting, developing, and team building. He was very directive and autocratic in making decisions and used little consultation or delegation. 2. Compare the two managers in terms of their influence on employee attitudes, short-term performance, and long-term plant performance. Under Ben’s relationship-oriented leadership, employees were satisfied with the company, as evidenced by the very low turnover in his plant. However, employees were not highly motivated and did not perform up to their capacity. Ben’s plant had the second worst performance of the company’s five plants. Phil’s lack of concern for employees was reflected in growing dissatisfaction and increased turnover among the supervisors and machine operators. Phil had a very short-term perspective on plant performance, which resulted in cutting expenses for

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    4  development of human resources and maintenance of machines. He is the type of manager who makes a good initial impression based on the short-term indicators of financial performance, such as quarterly costs and production levels. However, the longer-term effectiveness of the work unit will suffer, due to the decline in human and material resources. Unfortunately, by the time the delayed, adverse effects of Phil’s actions become evident, he is likely be promoted and off to another position, leaving the mess for his successor to face. 3. If you were the manager of this plant, what would you do to achieve both high employee satisfaction and high performance? A better balance of task and relationship behavior is needed. The plant manager should be supportive toward employees but also exhibit task-oriented behaviors such as setting challenging objectives and monitoring performance to ensure progress is being made toward achieving these objectives. It is better to delegate responsibility to supervisors (as Ben did) than to make all important decisions in an autocratic manner (as Phil did), but delegation without clear objectives and standards is ineffective. There was no evidence that either manager used important behaviors such as recognizing and rewarding effective performance, developing subordinate skills, consulting with subordinates, and inspiring a strong sense of commitment to task objectives. Finally, investment in development of human resources and maintenance of physical resources affect long-term performance and should not be sacrificed for temporary gains in short-term performance.

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    5  Superior Staffing The purpose of this case is to help students understand the task and relations behaviors that are relevant for leaders. 1. What specific task-oriented behaviors are used by Jackie? * Sets specific, challenging monthly goals for each subordinate (clarifying) * Holds progress review meetings each month (monitoring) * Observes subordinates while they work (monitoring) * Works with subordinates to resolve problems (problem solving) 2. What specific relations-oriented behaviors are used by Jackie? * She is sympathetic and offers help when a subordinate is upset (supporting) * Socializes and holds parties for the department members (team building) * Coaches individual subordinates who need help (coaching) * Providing recognition for effective performance (recognizing) * Provides career advice to subordinates (mentoring) 3. What are some other specific task and relations behaviors that were not described in the case but may also be relevant for Jackie to use? * Planning effective ways to improve task performance for the department * Involving subordinates in department decisions that affect them * Measure client satisfaction with the employees supplied by Superior to evaluate the recruiting procedures and identify any weaknesses to correct

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    6  Acme Manufacturing Company In this case students analyze the activities of a manager to identify effective and ineffective behavior. The analysis gives students an opportunity to identify weaknesses in time management and to propose remedies. The problems involve several managerial functions, including delegation, planning, and monitoring. 1. What specific things did Steve do wrong, and what should have been done? • Steve is late for work because he overslept. He should have been more careful to set a backup alarm or to have someone wake him. • Steve forgot the staff meeting with his boss at 9:30. He should have written it in his calendar and looked at the calendar before work. • Steve has a disorderly office and could not find important memos and work orders. He should maintain a better system of files and records. • Steve delegated the rush order to a production supervisor (Lucy Adams) but did not monitor progress. Since he doesn't know what is happening with the rush order, he is not able to deal with any problems with it. He needs to have a system for monitoring progress on the tasks for which he is responsible, even when they are delegated to a subordinate. • Steve does not know where Lucy Adams is and has no easy way to contact her. He should have subordinate managers inform him (or his secretary) when they are leaving the work site, and they should carry a pager or cellular phone. • Steve went to an important meeting unprepared. As a result, he failed to impress his boss and peers. Steve should review the agenda and background materials for important meetings and be prepared to make a meaningful contribution. • Steve concentrated on completing a production report that was less urgent than preparing quality figures for his boss. He should make a list of necessary activities with their priorities, and plan his time accordingly. If he were better organized, it is likely that Steve would seldom have to take work home. • Steve spent more than an hour assembling the quality data for his boss. The task was urgent, but the time-consuming job of assembling the data was not difficult and should have been delegated to his assistant manager, or perhaps even to his secretary. Steve only needed to spend a few minutes to check the completed work and make sure it was done correctly before giving it to his boss. • Steve wasted an hour attending a safety meeting that was not important when he had other things to do that were much more important. Unlike the earlier staff meeting, he was not required to attend the safety meeting and could have delegated this task to a subordinate qualified to handle it.

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    7  • Steve never did talk to Lucy about the rush order or get back to the Sales Vice President as he promised, thereby leaving a poor impression. He should have had his secretary (or his assistant) arrange a meeting with Lucy as soon as she returned to the plant. 2. What should Steve do to become more effective as a manager? Steve does not manage his time well. He is disorganized and messy, he does not plan his daily activities, he wastes time on activities that are not important, he forgets appointments and meetings, he does not delegate effectively, he does not monitor important activities for which he is responsible, he does not prepare for important meetings, and he fails to deliver on promises to important people. Steve needs to apply some of the principles of time management: • Make a list of short- and long-term objectives. • Make a daily "to-do list" of activities relevant to the objectives, with priorities and deadlines. Use the to-do list and a calendar to plan and schedule relevant and required activities for each day. • Delegate to qualified subordinates activities that are not critical, or that are important but require more time than he has available. • Develop an information system to monitor projects and delegated activities. • Use the secretary to screen calls and visitors effectively. • Organize files, records, and desktop so important documents can be found easily.

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    8  Foreign Auto Shop This two-part case gives students an opportunity to develop greater understanding of the importance of flexible leadership in rapidly changing situations. Part 1 describes a normal situation, and Part 2 describes an unusual crisis situation. Students analyze each situation and determine what pattern of managerial behavior is appropriate. Part 1 should be completed before going on to Part 2. The case illustrates how effective leaders adapt their behavior to the changing requirements of the situation, while continuing to show concern for both task objectives and interpersonal relationships. The case also demonstrates that an effective leader need not be a "heroic figure" who knows everything and solves all the organization's problems without any assistance. Part 1 1. What is the usual leadership situation in the auto repair shop (consider the nature of the task, subordinates, and environment)? The repair tasks are mostly self-contained, and little coordination is needed between mechanics. Thus, little planning is needed except to determine the work schedule, assignments, and necessary supplies. Except for diagnosis and troubleshooting, most of the repair work is highly structured (there is a best way to do it). However, the tasks require considerable skill, and auto mechanics need to acquire new technical knowledge periodically to keep up with changes in car design and technology. Most of the mechanics in Alan's shop are highly skilled in their work and have considerable experience. The three least experienced mechanics are assigned easier tasks appropriate for their skill level. Although they receive more guidance than the others, even they do not need much supervision. None of the mechanics is younger than twenty-three. They are all highly motivated and interested in their work. Diagnosing problems in cars and repairing them is a challenging, self-contained task with moderate variety, and high feedback about results from the task itself and from customers. Thus, except for some routine tasks such as mounting tires and changing the oil, most of the work is intrinsically motivating and satisfying for the workers. 2. Describe Alan’s typical leadership style and evaluate whether it is appropriate for the leadership situation. Alan's behavior is appropriate for the situation. He usually consults with subordinates in making decisions that affect them. He does not spend much time directing them or checking on their work. He makes assignments and provides coaching in a relaxed manner. He does not rely much on the authority stemming from his position as owner and manager of the business. Working alongside of the mechanics, he is viewed by them as “one of the crew” rather than as “the boss.”

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    9  Part 2 1. Describe Alan’s leadership style during the flood and evaluate whether it is appropriate for the leadership situation. Alan's leadership behavior is appropriate for the situation. By monitoring the external environment, he correctly identifies the flood danger and the need for immediate action to prepare for it. The mechanics have never experienced a flood in the shop, and they do not know how to respond in a coordinated, effective manner. Thus, quick, decisive problem solving and firm direction are needed to prepare for the flood and coordinate the response of the group. There is no time for participative planning. If the group sat around discussing how to respond, they would not have time to do what is necessary to avoid serious damage to the shop and to customers’ cars. The situation is complicated by the fact that the mechanics do not recognize the danger and do not believe that Alan is serious when he tells them to drop their regular work and start moving things to safe places. They are confused by his directive behavior because it is so different from his usual leadership style. Once the mechanics eventually recognize the danger, they will be intrinsically motivated to avoid flood damage that would threaten their jobs. However, there is little time to try to persuade them that there is a crisis. When he sees that the mechanics are not responding to his instructions, Alan becomes much more assertive by giving direct, authoritative orders in a command voice, and using appropriate nonverbal behaviors such as direct eye contact and a stern expression. Alan falls back on his position power (as owner-manager) to influence subordinates. He is firm but does not use threats or insults. The flood crisis is novel to Alan as well as to the mechanics, and he cannot think of everything himself. Once the mechanics begin following his directions, Alan is receptive to good suggestions about other things that need to be done to avoid damage to the shop or the cars. Thus, while being very directive, he is not entirely autocratic in deciding how the group should deal with the problem. Even in a crisis, he is a more effective manager by being receptive to good ideas from subordinates. 2. Identify effective behaviors by Alan after the flood subsided. The experience of the flood makes it easier for the mechanics to understand the reason for Alan’s unusual behavior. Nevertheless, this type of behavior carries the risk of undermining his good relationship with them. Alan’s actions after the crisis are appropriate for maintaining a good relationship. He shows his appreciation for the mechanics' efforts by personally thanking them. He gives them the next morning off as a reward for volunteering to stay late and help with the cleanup. When they return to work the next afternoon, he makes a speech to give them credit for successfully avoiding serious damage from the flood. He gives recognition for each person’s contributions, no matter how small. He does not mention that he was right and the mechanics were wrong about the danger of a flood. Thus, Alan helps the mechanics

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    10  perceive the crisis as a joint effort in which they all played important part, rather than trying to portray himself as a heroic leader. 3. How should Alan behave toward his employees in the future? There is no reason for Alan to change his typical style of leadership in non-crisis situations. Some students mistakenly interpret his final comments as indicating that Alan needs to become more directive. Such a change would undermine his effectiveness. Alan will have more expert power as a result of his successful interpretation of the crisis, and employees are more likely to believe him and carry out his directions immediately in a future crisis.

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    11  Echo Electronics The purpose of this case is to provide a better understanding of the potential benefits of participative leadership. Students are asked to read a case describing a decision for which an autocratic decision was unsuccessful. The mistakes made by the manager in this case demonstrate the importance of consultation in making decisions that have important implications for both subordinates and the organization. 1. What actions could Paul have taken to prevent the problem? Use of participative leadership may have prevented this problem. Consultation with employees about major changes is useful for discovering potential resistance to the change, gaining commitment to it, and getting suggestions on ways to implement the change more effectively. A major change in the work such as introduction of new equipment can have a very disruptive effect on people. The new workstations may be perceived by the workers either as an improvement or as a threat. The workstations offer a number of advantages, such as making the work more interesting, raising the skill level of employees, and providing an opportunity to increase productivity and product quality, thereby making the company more competitive and protecting the jobs of workers. Conversely, the workers may perceive the new equipment as a threat to their job security, because fewer workers will be needed if productivity is increased. Moreover, workers who are not computer literate may be anxious about learning new skills and worried that their experience and technical skills will become obsolete in a computerized factory. A major change of this type should be introduced carefully to avoid negative reactions. The potential benefits for the company and the workers should have been explained before the changes were made, and the supervisors and workers should have been invited to participate in meetings to plan how to implement the changes effectively. Employees should have been encouraged to express any concerns and doubts about the feasibility of the proposed changes. The opportunity to discuss changes and influence them reduces anxiety and helps to avoid false rumors. Whenever possible, Paul should have modified the planned changes to deal with employee concerns and utilize good suggestions, thereby giving the employees (and the supervisors) a sense of ownership of the changes. Some other actions to ensure that the new workstations would be viewed as a positive change would help create trust and reduce anxiety. Paul should have tried to persuade top management to guarantee that no jobs would be lost as a result of the change. He should have looked for ways the workers could benefit from the changes, for example, by earning more after learning the new skills needed to operate the workstations. Paul should have made sure adequate training was provided to help the workers learn how to operate the new machines effectively.

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    12  2. What steps should Paul take now to deal with the problem? The first step is to determine the cause of the problem. It is not clear why productivity and quality decreased. Paul’s four supervisors disagree about the cause, and there is insufficient evidence to support their opinions. There is no obvious deficiency in the equipment, but more investigation is needed to completely rule out this possibility. Paul needs more information about the timing, scope, and intensity of the problem. He should determine whether productivity and quality has declined for all of the workers, or only for some workers, departments, or shifts. If the company has a good records, data for the period prior to the introduction of workstations should be examined to see if the pattern was one of stable, increasing, or decreasing productivity and quality. Paul also needs to check with his contacts in other companies to determine whether they experienced a decline in productivity and quality the first few months after the workstations were introduced (it may be a natural part of the learning curve). Finally, Paul should consider the possibility that the problems are jointly caused by the workstations and some other condition unique to the company. There is some evidence to suggest that the problem is due at least in part to worker resistance. Worker morale has declined, and two employees quit because they were upset about changes in how the work is done. These reactions suggest the new workstations may be viewed as a threat rather than a benefit, but Paul needs more information to confirm this diagnosis. Paul should hold meetings with groups of workers to discuss the problem and try to learn how the workers feel about the new workstations. If the workers trust Paul and share his objectives of improving productivity and quality, Paul can invite them to participate in finding ways to make the new workstations successful as a means of improving quality and productivity. Paul may find that the problem has multiple causes, each requiring a different type of solution. Changes may be required in compensation, job design, work rules, job security, or training procedures. For example, if the workers were not properly trained to operate the new equipment, then new training should be developed quickly. If the workstations are incompatible with existing production procedures, than some re-engineering may be needed. If the workers are afraid that the new machines threaten their job security, then the company needs to provide assurances that no jobs will be lost as a result of increased productivity. If the workers feel inequity, a pay increase may be appropriate to compensate them for learning the new skills needed to operate the workstations. Paul needs to persuade the CEO to approve any necessary changes. The fact that the CEO approved the initial plan for the change and shares part of the responsibility for its deficiencies may make it easier to get approval for the necessary changes.

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