, CASE STUDY: THE BANKING COMPANY (Please note that the case study is
not a real company situation.) Martin Sithole was promoted after 10 years of
service in various leadership positions to an executive position at ABC Bank.
His promotion was, amongst other factors, due to his strong confidence and
the impact he had on subordinates to perform and exceed targets in the
division he was responsible for. Martin is very loyal to the company but is also
well known in the industry for several business mergers and acquisitions he
was involved in. In his new role, the chief executive officer (CEO) requested
Martin to start the process to merge with another bank and include his team in
the planning thereof. Martin developed his subordinates in the standard
operating procedures associated with a merger. However, he dictated his
vision of the merger from a self-interest perspective and did not consider any
suggestions from his subordinates. Considering the upcoming merger, the
executive board of ABC Bank requested the Human Resources Wellness
Division to design organisational coping strategies to eliminate or control
organisational-level stressors to prevent and reduce job stress for individual
employees. A new employee joined Martin’s team using a wheelchair, which
created discomfort for some of the team members as they were not clear on
how to interact with the differently abled colleague. They approached Martin
for assistance in this matter. Martin approached the Human Resource
Training Division for ideas on addressing the situation. In addition, there were
complaints that input from female subordinates was not valued in weekly
meetings, which Martin also had to address to manage team diversity. 2
Question 1 1.1 Identify which modern leadership theory was applied by
Martin Sithole and explain in your own words what this leadership theory
entails. (5) 1.2 Discuss ethical and unethical characteristics of the identified
leadership theory and integrate examples from the case study in your
discussion. (10) [15]
1.1 Modern Leadership Theory Applied by Martin Sithole
The leadership theory that Martin Sithole exemplifies is Transactional Leadership. This theory
emphasizes the role of supervision, organization, and performance. Transactional leaders focus
on the exchange that occurs between the leader and the followers. They use rewards and
punishments to motivate their subordinates, ensuring compliance with established rules and
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