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IOP4862Assignment 6 (ANSWERS) 2024
(783461) - DUE 25 October
2024
IOP486
2
Assign
ment 6
(COMP
LETE
ANSWE
RS)
2024
(78346
1)- DUE
25
Octobe
r 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.
Question 1
1.1
In the case study, Martin Sithole seems to have applied aspects of
Transactional Leadership.
, Explanation of the Leadership Theory:
Transactional Leadership is a modern leadership theory that emphasizes
clear structures, rewards, and penalties as a way to motivate employees to
achieve specific goals. The leader provides well-defined tasks and objectives
and expects subordinates to meet them. In exchange, rewards are given
when targets are met, and penalties may occur if they are not. This
leadership style is focused on short-term tasks, routines, and operations,
often neglecting innovation and long-term vision.
Key characteristics of Transactional Leadership:
1. Directive Approach: Leaders give clear instructions and expect
compliance. Martin, for instance, dictated his vision of the merger without
considering input from his team.
2. Reward-Punishment System: This theory operates on rewards when
targets are met, reflecting how Martin's team was likely motivated to perform
based on rewards linked to achieving merger goals.
3. Short-Term Focus: The theory generally emphasizes meeting
immediate tasks (e.g., overseeing the merger) rather than considering
broader, creative approaches or subordinates’ opinions.
4. Hierarchical Relationships: The leader makes the decisions, as Martin
did when he did not consider his subordinates’ suggestions.
5. Focus on Results: Martin’s leadership is focused on outcomes, such as
successful mergers and acquisitions, but overlooks relationship-building and
collaboration.
While this style may have helped Martin achieve results in previous roles, it
might be limited in addressing the complexities of teamwork, diversity, and
innovation that are becoming increasingly important in modern
organizations.
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