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CASE STUDY: THE BANKING COMPANY
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.
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.
The case study "The Banking Company" revolves around Martin Sithole, a seasoned leader at ABC
Bank who has risen to an executive position after a decade of service in various leadership roles.
Known for his confidence and ability to inspire his team to exceed performance targets, Martin has
earned a reputation for his involvement in mergers and acquisitions. In his new role, the CEO tasks
him with leading the bank through a merger, a responsibility Martin approaches with a top-down,
self-interested perspective, disregarding input from his team. The Human Resources Wellness
Division has been asked to design strategies to mitigate stress within the organization, while Martin
faces challenges in managing team diversity, including assisting in the inclusion of a new team
member who uses a wheelchair and addressing complaints about undervaluing female employees'
contributions.
