KATHMANDU UNIVERSITY

SCHOOL OF MANAGEMENT

LEADERSHIP AND ETHICS

ASSIGNMENT- III
Case Analysis on
(LMX Case: His Team Gets the Best Assignments)

SUBMITTED TO:
PRAKASH ARYAL
(Course Instructor)

SUBMITTED BY:
AYUSNAB KARKI
Roll No.: 22508
EMBA

Submitted on:
8th May 2023
 LMX Case: His Team Gets the Best Assignments
Synopsis:
The case examines the favoritism displayed by Carly, the director of a creative department in an
advertising agency, towards one particular team, causing discontent among other team leaders who
feel their teams are treated unfairly. The case explores the consequences of Carly's preferential
treatment and the contrasting attitudes of team leaders towards their roles within the department.

Case Facts:
Carly Peters, the director of the creative department at the advertising agency of Mills, Smith, &
Peters, manages four major account teams in her department. While her agency has a strong
reputation and handles 10 major accounts along with several smaller ones, there are concerns about
perceived favoritism towards one of the account teams. Jack's team is highly talented, creative,
and dedicated to Carly, and they consistently produce excellent work. Carly often showcases their
work to upper management and trusts them with extra resources and freedom on their accounts.
However, Terri and Julie feel that Carly favors Jack's team over the others, leading to animosity
and frustration. Terri believes that Jack's team receives the best assignments, accounts, and
budgets, while her own team is overlooked. Julie notices that Carly undervalues her team and
favors the other teams when assigning additional resources. In contrast, Sarah takes a pragmatic
approach and views her team as a nuts-and-bolts operation. Overall, in this case it describes that
there is a perception of unequal treatment and perceived favoritism within the creative department,
which could impact team dynamics and overall morale.

Key issues:
1. How does favoritism and unequal treatment affect team morale, collaboration, and overall
performance in the creative department?
2. Does Carly's leadership approach create an in-group and out-group dynamic? If so, how
does it impact the dynamics and performance within the department?
3. In what ways are Carly's relationships with the four teams productive or counterproductive
to the overall goals of the agency?

Case Analysis:
The case study highlights the different leadership styles of four associate creative directors at Mills,
Smith, & Peters advertising agency, and their interactions with the director, Carly Peters. While
Jack's team receives preferential treatment and additional resources, Terri, Julie, and Sarah's teams
feel undervalued and neglected. Carly's leadership approach creates an in-group and out-group
dynamic that can lead to resentment, low morale, and decreased performance among the teams.
This unequal treatment undermines fairness and equality and can harm the agency's reputation if
undervalued teams are unable to showcase their abilities.
From a leadership perspective, Carly's favoritism towards Jack's team reflects a biased approach
that erodes trust, employee satisfaction, and overall productivity. The LMX theory explains Carly's
behavior as high-quality exchange with Jack's team, while the other teams are relegated to a lower-
quality exchange. This perception of favoritism can lead to communication, trust, and
collaboration issues among team members, negatively impacting the agency's success. Carly's
inconsistent decision-making and lack of transparency create an environment of uncertainty that
further erodes trust and satisfaction among employees.
The in-group and out-group dynamics are visible in the case study, with Jack's team forming the
in-group and the other three teams forming the out-group. The in-group members enjoy a high
level of trust, freedom, and resources from Carly, while the out-group members feel left out and
undervalued. This divide can have negative consequences for the agency, as it can lead to a lack
of cooperation, communication, and collaboration among the teams, which can affect the overall
performance and success of the agency.
To create a more inclusive, productive, and supportive work environment that benefits all the
teams and the agency as a whole, Carly must recognize the strengths and contributions of all the
teams and ensure that each one receives equal attention, resources, and opportunities. She should
strive to improve communication and collaboration among the teams, encourage feedback and
suggestions, and promote a sense of shared ownership and responsibility for the agency's success.
By doing so, Carly can address the in-group and out-group dynamics and create a work
environment that fosters trust, employee satisfaction, and overall productivity.

Recommendation:
 Encourage cross-team collaboration and knowledge sharing: Facilitate interactions and
idea exchange among team members from different teams.
 Provide recognition and support for all teams: Recognize achievements, offer feedback,
and support professional development opportunities for all teams.
 Promote collaboration and teamwork: Encourage cross-team projects, share best practices,
and foster a sense of shared ownership.
 Develop leadership skills and practices: Invest in leadership development to manage
diverse teams effectively.
 Establish clear performance metrics and expectations: Set objective criteria for evaluating
performance and resource allocation.
 Foster an inclusive and fair leadership approach: Treat all teams equally, providing equal
attention, resources, and opportunities.
 Improve communication and transparency: Enhance communication channels, ensure
transparency in decision-making, and hold regular feedback sessions.
 Implement a feedback and recognition system: Establish formal feedback sessions, peer
recognition programs, and performance-based rewards.
 Promote a culture of open communication and idea sharing: Create platforms for open
discussions, brainstorming sessions, and sharing of opinions and ideas.
  Monitor and address issues promptly: Identify and address concerns related to team
dynamics or perceived favoritism in a timely manner, fostering a fair and inclusive work
environment.

Conclusion:
In conclusion, effective leadership is essential for creating a positive work environment that values
and supports all teams. Carly, as a leader, should strive to foster inclusivity, fairness, transparency,
and collaboration among team members. She can achieve this by investing in her own leadership
development, establishing clear performance metrics and expectations, promoting cross-team
collaboration and knowledge sharing, implementing a feedback and recognition system, and
promoting a culture of open communication and idea sharing. By creating a work environment
that values and supports all teams, Carly can boost employee satisfaction, motivation, and
productivity, ultimately leading to improved outcomes and success for Mills, Smith, & Peters
advertising agency. A successful leader is one who values and supports all members of the team
and creates an environment of trust, collaboration, and mutual respect.