IOP4862 Assignment 6
2024 (783461)- DUE 25
October 2024
[Company address]
,IOP4862 Assignment 6 2024 (783461)- DUE 25 October 2024
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]
Question 1.1:
Modern Leadership Theory Applied by Martin Sithole: Transactional Leadership
Explanation of Transactional Leadership: Transactional leadership is a leadership
style where leaders provide clear structures, rewards, and penalties based on employee
performance. Leaders focus on maintaining the status quo, ensuring tasks are
completed, and providing rewards or consequences based on achieving set objectives.
The emphasis is on short-term tasks, immediate performance, and aligning employees'
performance with organizational goals.
In Martin Sithole’s case, he adheres closely to this transactional leadership style by
focusing on his own vision of the merger, enforcing strict adherence to standard
operating procedures, and expecting subordinates to follow without input. His leadership
is goal-driven, particularly in dictating the vision of the merger, demonstrating how
transactional leaders often emphasize task completion and immediate results over
collaboration and innovation.
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