Running Head: CASE STUDY: ORGANIZATIONAL LEADERSHIP ISSUES

Case Study: Organizational Leadership Issues

Martha C. Garcia

South Texas College

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Abstract

This paper focuses on the different issues a leader must encounter during their leadership and

ways to enhance them in the given areas. Topics to be discussed are: leadership style, social

responsibility, diversity, Information Technology (also known as IT), effective communication,

accountability, business ethics, culture, motivation, and external factors. These issues not only

affect the leadership of the authority figures but also their employees, the organization, and

society. In the provided case these issues will show the leadership style of a CEO, the current

state of the company on these issues, and ways to implement a healthier approach. This

knowledge should be considered with any leadership position, especially with those high up on

the stepping ladder of an organization. These issues will also aid leaders in building a bridge

between them and their employees which will construct stronger relationships and a thriving

organization. They will also build a community outside the organization and establish a strong

bond within its society.

Keywords: leadership, organization

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Case Study: Organizational Leadership Issues

Leadership is a major component of every organization that deals with different issues

which need to be taken into consideration to have a successful organization. In the given case

study, a CEO of a marketing research company does not like young people; he feels that all

people under the age of thirty are addicted to social media, only want to have fun, and do not

focus on work responsibilities. He does not trust them and prefers not to have anyone under

thirty working for him. The marketing research firm has had some good contracts doing market

research for several companies. The firm mainly focuses on market research for companies that

sell consumer electronics such as Bluetooth devices, gaming products, and other audio products.

The CEO is now interested in having the business expand into foreign markets. He strongly

feels that older, more experienced and mature employees will be most effective in expanding his

business. He feels he can control this type of employee better because his style is more

dictatorial and structured. This paper focuses on the different issues that the CEO, as a leader,

will encounter and provide tactics to improve in the given areas.

Leadership Style

There are several styles of leadership and some styles have different facets, in this case

the CEO falls under the facet called management by exception active in which leaders monitor

their employees’ performance. Management by exception active falls under the transactional

leadership style, a style in which leaders lead through an exchange with employees.

Transactional leadership is part of the Full Range Leadership Model (FRLM), which is

composed of three sections that describe a range of leadership behaviors seen in organizations.

Management by exception active consists of four behaviors leaders demonstrate, one of these

behaviors is leader taking corrective action, when mistakes are made the leader steps in and
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makes the necessary changes to make the situation right. Another behavior is that the leader

enforces rules, the leader makes sure that employees follow all the established guidelines and

procedures. Leaders do not appreciate any challenges to the Status Quo, they appreciate the way

things are. The last two behaviors consist of employees only hearing from leaders when

something is wrong and the employees’ notion of the leader’s relentless pressuring them.

In this case the CEO likes to have total power and needs everything very structured, and

he feels that only way to accomplish this is through the more aged employees. He does not like

the idea of change, he has worked like this for some time now and sees no need for any kind of

change within the company. A change in leadership style in this case would be more beneficial

to the organization. Perhaps, servant leadership which allows employees to grow personally and

professionally or authentic leadership where leaders are more transparent and are regulated by

internal moral standards.

Social Responsibility

The CEO of the market research company is being negligent of social responsibility

because he is not maintaining a balance between the firm and society. “Social responsibility

implies the concept that any individual or organization has an obligation towards society at large

to perform to maintain a balance between economy and ecosystems” (Margo, 2018 p. 2). Like

any organization, the marketing research company has an obligation of being socially

responsible. Yet, since the CEO is not allowing an age group to work for them it puts them in a

position where they are not promoting social responsibility. He and the company are not having

a positive relationship with society because in a sense he is degrading labors under the age of

thirty. By not hiring these workers the organization is telling society that these people cannot

have a positive impact in any organization.

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On the contrary if the CEO did hire people under thirty, he would be painting a different

picture to society. One that says that while these employees are young and perhaps may not

possess the experience of the older employees, their perspectives must still be appreciated. For

they too, can learn and be molded into becoming efficient and effective employees who

contribute to both an organization and society. In this case, having a workforce with a diversity

of ages benefits both the organization and society as well as allowing the company to be socially

responsible.

Diversity

“Diversity in the workplace refers to wide range characteristics within employees

including but not limited to: gender, race, ethnicity, sexual orientation, education, religious and

political beliefs, socioeconomic background, and geographic location” (Margo, 2018, p. 2). The

CEO is missing out on a wide pool of employees that can contribute their knowledge to both the

company’s product research and the way to market these products to the appropriate consumers.

The main reason being that these products are predominantly used by young people, the very age

group he is missing within his workforce. If the CEO decided to employ the younger generation,

he could promote diversity in different ways, while also contributing to both the economic state

of the company and the community.

Information Technology

Information Technology (IT) has become a large part of the make-up of companies and

organizations over recent years making it a necessity, especially in a market research firm.

“Information Technology refers to anything related to computing technology, such as

networking, hardware, software, the Internet, or the people that work with these technologies”
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(Margo, 2018, p. 2). Younger generations have had exposure to technology from a very young

age and therefore, are more familiar with the subject and its latest trends. These younger

employees not only have experience working with this area, but they are also able to impart their

wisdom on their fellow coworkers.

Since, the company’s focus in doing market research on electronic devices their greater

consumer target is more than likely to be under the age of thirty. A great advantage for the

company would be to have employees who can relate with their consumers in both in the use of

IT and the use of these types of products. The use of Information Technology would also open

the door for an opportunity for the firm to expand its horizons into foreign markets.

Effective Communication

One of the main aspects of successful companies and organizations is that they practice

effective communication, a necessity to thrive in any establishment or relationship.

“Communication is the process of exchanging information and ideas, both verbally and non-

verbally, within an organization” (Margo, 2018, p. 2). In an organization there needs to be a

constant exchange between leaders, followers, and consumes so that the organization can be

successful. Therefore, the parties involved need to practice effective communication in order to

obtain the best possible result of the exchange. In pertaining to leaders, they should be excellent

communicators, observers, and listeners; and when speaking, they should practice speaking in a

manner that is very clear and precise. “A leader inspires a team, group, or people around them

by communicating their ideologies and aims perfectly, that makes them efficient enough to

perform entire assigned tasks effortlessly” (Luthra, Dahiya, 2015 p. 44). Leaders who

communicate effectively can inspire and motivate their employees having a ripple effect which

in turn can take the organization to new heights.

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Perhaps, if the CEO of the marketing research firm practiced effective communication

with young people, he would have a better understanding on their perspective of life and who

they are as a generation. He would be more open to working with individuals of this age group

and could use the tool of communication to establish a more trusting relationship with all his

employees. Leaders who increase and promote effective communication in the workplace will

have a culture where employees will be held accountable for their work.

Accountability

“Employee accountability is the responsibility of employees to complete the tasks they

are assigned, to perform the duties required by their job, and to be present for their proper shifts

in order to fulfill or further the goals of the organization” (Margo, 2018, p. 2). Accountability is

for both employees and leaders. In fact, it is the leader who creates accountability, “the leader

must provide consistent leadership every week which in turns creates back pressure that creates

accountability” (Scott, 2017). Accountability requires effective communication; roles must be

clearly stated, both leaders and employees must adhere to their role following established goals

and objectives. Leaders must not only review employee progress but and reward their

employees for following through on their work. Undoubtedly, if the CEO holds all employees

accountable for their work with the use of effective communication and rewards, including those

under thirty, they will follow through their tasks. Thus, employees will be accountable for their

work which in turn will increase productivity making the organization run efficiently.

Business Ethics

A company’s business ethics and culture go hand in hand, both must be in line with what

the company envisions for how they want to be perceived and the principles they desire to be the
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norm for the workplace. “Business ethics is the standard of business behavior that promote

human welfare and the good” (Hanson, 2010). “Business ethics consists of: the way individuals

act within a business, the way people structure their businesses organizations and how they

operate, and the way people structure business within society, incorporate businesses to part take

in the way laws and regulations affect businesses” (Hanson, 2010). One way to consider if the

company has good business ethics is to consider if all parties are treated fairly.

In this case, it is safe to say that not all parties are being treated fairly because the CEO

does not employ anyone under the age of thirty. Another way to consider if business ethics are

being met is by identifying if individuals’ or groups’ legitimate rights are being affected.

Pertaining to the case, the CEO is denying the legitimate right of people under the age of thirty

the opportunity of a job, solely based on their age rather than their qualifications. “The company

should be managing ethical values, in which corporate values and ethical standards are defined

and having each level of the organization identify and apply those said values” (Hanson, 2010).

The CEO needs to exercise the practice of ethical leadership; “a model wherein leaders reinforce

ethical leadership, encompassing aspects of character and actions” (Skeet, 2017). The market

research company has room for improvement when it comes to its business ethics. They can be

enhanced by the CEO practicing and reinforcing ethical leadership, creating community, and

clarifying culture.

Culture

“Culture consists of the shared beliefs, values, and assumptions of a group of people who

learn from one another and teach to others that their behaviors, attitudes, and perspectives are the

correct ways to think, act, and feel” (What is Culture, 2012). The CEO is establishing a negative

culture within the research marketing company because he believes that people under the age of
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thirty have no intellectual contribution to the workplace. He is imposing his personal beliefs on

his personnel, allowing them to think this is an acceptable way to treat the workforce under the

age of thirty. He is also showing his employees that it is permissible to lead as a dictator instead

of empowering them, which builds stronger teams and increases work productivity. “It is the

role of the organizational leader, as a change agent, to help create a positive organizational

culture that meets the demands of a competitive environment, board and shareholder

expectations, and employee career satisfaction” (Culture and Leadership, 2012). The CEO is the

one who establishes the culture within the firm.

He can make the transition from the current negative culture into a positive and healthier

one, where employees can feel that they too are an important part of the company. Several

methods (behaviors) he can use to make this change possible are. For example, making the

culture a more team-oriented one, which takes an approach of a more collaborative team building

and diplomatic stance. He could also incorporate participative behavior in which he is more

inclusive of his colleagues; thus, making his employees feel like they too have an opportunity to

do their part to make the company a success. Investing time and effort in creating a positive

culture within a company will also motivate employees to be efficient and effective in their

work, a necessity for an organization’s success.

Motivation

The CEO, as the leader of the company, is responsible for motivating his team to thrive

within the organization by inspiring employees so that they can reach their fullest potential.

Motivation comes in many forms of incentives, from rewards to great working environments.

Rewards can be a powerful motivational tool; the most influential form of motivational rewards

would be monetary, such as increases of pay and bonuses. Another form of motivation would be
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non-monetary rewards such as: flexible work schedules, paid time off, special parking spaces,

and access to trainings and conferences. Other forms are recognition in company newsletters

and meetings, verbal complements and words of encouragement. As the leader of the company

the CEO could thank team members for their work and inspire employees to give their best

effort. Providing a great working environment is another way of motivating employees to

always give their best performance and helps them feel that they love their job.

External Factors

Problems will always arise; even top organizations have issues to push through and it is

the leader’s job to navigate the company through the difficult times, including when dealing with

external factors. External factors can impact organizational leadership styles, some of these

factors are socio-political and cultural factors. Socio-political factors deal with a combination of

social and political issues. In this case, the CEO would come across socio-political external

factors when expanding the company into foreign markets. He would have to learn how to

circumnavigate the governing laws and the political state of the countries he is considering

working in. Then he would have to make the necessary changes to adapt the company to those

country’s laws.

He must also take into consideration the products they market and have a demand for,

then which parts of society would be clients for their products within these countries. Another

external factor he must be aware of are the cultures of the corresponding countries. He needs to

be prepared for the differences in customs, religion, language, etc. to be able to have his

company succeed in theses areas. The way he would approach consumers and established

companies within these countries would require him to modify his leadership technique, because

of the culture barriers.

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The CEO of a market research firm has had an established structure for the way he has

run his company for some time. But after reviewing different issues that arise during leadership,

it is seen that there is room for improvement. He must build up his leadership style so that he not

only encompasses the traits that will allow his employees to feel more empowered by their jobs,

but also provide an environment where people want to work and be part of a team. Another area

of improvement is within the relationship of the organization and the community, by establishing

a deeper connection the firm can become an important part of the community. These issues are

the makeup of not only of a great leader but a great organization, harnessing them to the benefit

of an organization will make it a thriving one.

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Hanson, Kirk. “What Is Business Ethics?” What Is Business Ethics? - Markkula Center for

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Margo, C. (2018, October 11). Tangible Solutions for Diversity and Demographic Shifts

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Scott, Jeffrey. “Creating Accountability in The Workplace.” YouTube, YouTube, 26 July 2017,

www.youtube.com/watch?v=14iZ66m2qSU

Skeet, Ann. “The Practice of Ethical Leadership.” Markkula Center for Applied Ethics, 2017,

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