Stepping out of the box at northern box company: parts A & B.
Golove, Robert ; Armandi, Barry ; Sherman, Herbert 等
CASE DESCRIPTION
The overall purpose of this case is to examine the managerial and
organizational nuances associated with supervising a dysfunctional high
level and loyal employee. Students obtain a "real-world" feel
for the overall business setting, and, in particular, the individual
forces that help shape the work environment. Students are asked to probe
beyond personalities and the immediacy of the moment (Richard's
resignation) and examine the broader issues posed in the case.
This case was written for two distinct audiences: students taking a
human resource management course and students in a business ethics course. In terms of the human resource management course, the case
places students in management's shoes. Students need to understand
the ramifications associated with accusing an employee of theft from
both an issue of procedural integrity and employee rights. This case
(Part A and B) should be introduced after the students have read
material on workplace justice and the handling of employee theft
(Kleiman, 2000, Chapter 11; DeNisi and Griffin, 2002, Chapter 15), and
career planning (Newman and Hodgetts, 1998, Chapter 15; Dessler, 2003,
Chapter 10).
CASE SYNOPSIS
This case deals with an important issue that many students may
themselves have to deal with during their own professional careers; how
to deal with an employee who you believe has been dishonest with you
(and perhaps stealing or planning to steal from the company) and how to
deal with accusations by others of dishonesty, disloyalty and possible
theft.
INSTRUCTORS' NOTES
This case deals with an important issue that many students may
themselves have to deal with during their own professional careers; how
to deal with an employee who you believe has been dishonest with you
(and perhaps stealing or planning to steal from the company) and how to
deal with accusations by others of dishonesty, disloyalty and possible
theft.
SUMMARY--PART A
Peter Mitchell, had a long history with the NBC Box Company, having
originally been hired as a sales person, then being promoted to co-sales
manager under the auspices of Bruce Caesar due to his excellent sales
skills. When Bruce became regional general manager he hired a new
general manager, Michael Useliz, to replace him and had Peter report
directly to Michael. When Peter's relationship with Michael became
very rocky (Peter claimed that Michael set him up to purposely fail at a
meeting by not informing Peter of the changes to the sales force
compensation plan), Peter returned to the sales force and became
NBC's largest producer. Michael was subsequently fired for poor
work.
An incident occurred with one of Peter's accounts, POPCO, that
lead to accusations of theft and dishonesty by the owner of NBC, Joe
Green, and his son, Morgan. Peter did not directly respond to the
accusations but presented evidence indicating that the allegations were
quite false. The owner apologized stating that the ex-general manager
had accused Peter of stealing and that he had a signed affidavit from an
employee supporting the charge. Peter stated that his integrity had been
challenged and that he was quite upset.
Peter's ex-boss Bruce (who still worked for the company) took
him out for dinner and tried to convince Peter not to quit given the
fact that he had a family to think about and that he was making an
excellent salary. Peter discussed the issue with his wife and was going
to make a decision to either stay or leave.
SUMMARY--PART B
Peter e-mailed Bruce that he as resigning but would stay on to help
the company train his replacement and service his current customers who
he felt he owed allot to. He proposed a new wage package and a
consulting arrangement with the company. A month later, with no response
from Joe or Morgan concerning his resignation letter, he is accused by
Morgan of hiring an ex-truck driver in order to steal accounts from NBC.
Intended Instructional Audience & Placement in Course
Instruction
This case was written for two distinct audiences: students taking a
human resource management course and students in a business ethics
course. In terms of the human resource management course, the case
places students in management's shoes. Students need to understand
the ramifications associated with accusing an employee of theft from
both an issue of procedural integrity and employee rights. This case
(Part A and B) should be introduced after the students have read
material on workplace justice and the handling of employee theft
(Kleiman, 2000, Chapter 11; DeNisi and Griffin, 2002, Chapter 15), and
career planning (Newman and Hodgetts, 1998, Chapter 15; Dessler, 2003,
Chapter 10).
For the ethics course, students are to consider the employee's
position at the end of Part A and Part B. In Part A and B, the employee
must balance the needs of his family with his need to work in an
environment where there is trust and respect; where an employee is
innocent until proven guilty. This case may therefore be introduced
after the students have read material on employees and the corporation
(Post, Lawrence and Weber, 2000, Chapter 17; Carroll and Buchholtz,
2003, Chapter 16) and ethical dilemmas in business (Post, Lawrence and
Weber, 2000, Chapter 5; Carroll and Buchholtz, 2003, Chapter 7)
For other management courses, the case could be introduced after a
discussion of developing an environment of employee trust (DuBrin, 2003,
Chapter 11), and disciplinary procedures (Schermerhorn and Chappell,
2000; Chapter 7).
Learning Objectives
The overall purpose of this case is to examine the managerial and
organizational nuances associated with supervising a dysfunctional high
level and loyal employee. Students obtain a "real-world" feel
for the overall business setting, and, in particular, the individual
forces that help shape the work environment. Students are asked to probe
beyond personalities and the immediacy of the moment (Richard's
resignation) and examine the broader issues posed in the case. Specific
learning objectives are as follows:
* For students to analyze the implications of Richards leaving the
firm and what actions David Ming should take have taken prior to
Richards resignation as well as those actions he now needs to take.
* For students to employ leadership theory in analyzing Ted
Shade's style of management.
* For students to develop recommendations concerning Ted
Shade's future with the company.
TEACHING STRATEGIES
Preparing the Student Prior to Case Analysis
There are several approaches, none of which are mutually exclusive,
that an instructor may employ in terms of utilizing this case. It is
strongly recommended that regardless of the specific methodology
employed, that students prior to reading this case be exposed to some
material on leadership theory (Yukl, 1994), how to deal with difficult
employees (Perry, 2001), and employee termination (Bayer, 2000).
Furthermore, it is suggested that a brief overview be presented on the
chip manufacturing process (specifically the use of advanced
manufacturing technology) so that students understand the workflow as it
relates to both the organizational charts and Ted Shade's position
(Noori, 1990).
This conceptual framework may be delivered prior to assigning the
case by using at least one (1) of the follow methods:
* a short lecture and/or discussion session on the above noted
topics.
* a reading assignment prior to reading the case that covers
several of the topics mentioned.
* a short student presentation on each topic.
* a guest lecturer on one of the topics.
Traditional Case Method
In the traditional case method, the student assumes the role of a
manager or consultant and therein takes a generalist approach to
analyzing and solving the problems of an organization. This approach
requires students to utilize all of their prior learning in other
subject areas as well as the field of management. This case, in
particular, will also require students to draw upon their knowledge of
leadership and human resources. It is strongly suggested that students
prepare for the case prior to class discussion, using the following
recommendations: allow adequate time in preparing the case, read the
case at least twice, focus on the key management issues, adopt the
appropriate time frame, and/or draw on all their knowledge of business
(Pearce and Robinson, 2000).
The instructor's role in case analysis is one of a
facilitator. The instructor helps to keep the class focused on the key
issues; creates a classroom environment that encourages classroom
discussion and creativity, bridges "theory to practice" by
referring back to key concepts learned in this or prior courses, and
challenges students' analyses in order to stimulate further
learning and discussion. There are several variations of the
aforementioned approach including written assignments, oral
presentations, team assignments, structured case competitions, and
supplemental field work. Regardless of the variation employed, it is
recommended that the students' work be evaluated and graded as
partial fulfillment of the course's requirements.
Role-Playing
Role-playing "enacts" a case and allows the students to
explore the human, social, and political dynamics of a case situation.
There are several opportunities for role-playing in this case with the
most obvious role-play being a meeting between Ted Shade and his
supervisor, David Ming, to discuss Ted's future with the company. A
second role-play could entail David Ming discussing the recent
resignation of Chuck Richards with senior management with a third
role-play being the exit interview with Richards.
Prior to role-playing the case, students should be asked to read
the case but and answer the following questions:
(a) Who are the key participants in the case? Why?
(b) What is the "role" of each of these participants in
the organization?
(c) What is the motivation, rationale, or benefit these
participants derive from the situation?
(d) How do the assigned readings relate to the case?
(e) Are there legal and/or ethical issues related to the case?
The instructor may either go through these questions prior to case
enactment or wait for the role-playing exercise to be completed in order
to use this material to "debrief" the class.
Starting the Role-Playing Exercise
The case ends with Mr. Ming learning of Mr. Richard's
resignation. This would seem to be a logical place to start the series
of role-playing exercises in that the student who role-plays Mr. Ming
can now summarize the case with two issues in mind: "How do I deal
with Richards' resignation?"; and two, "How do I deal
with Shade's ineffective management style?"
Step 1: Assignment of Roles (5 minutes)
The class should be broken up into groups of 5-6 students. Assign
the key roles of Mr. Ming, Mr.Richards, and Mr. Shade to three of the
members of each group. Class members not chosen for the role-playing
exercise become members of the management team. (See Organizational
Chart 2 for management team members.) Students are observers for parts
of the role play in which they are not active participants.
Step 2: 1st Enactment (10 minutes)
The student enacting the role of Mr. Ming should be instructed to
start the role play with a summary of the situation (including problem
definitions) and include comments concerning both Richards'
resignation and Shade's future with the company. The student should
then be directed to develop a series of meetings (one with Richards, one
with Shade, and one with Ming's management team) to try to solve
the identified problems. The instructor during this phase of the
exercise should note how well the student enacting Ming's role
covers the major issues surrounding the case. Student observers may also
be given specific assignments by the instructor or may be asked to
merely summarize their observations.
Step 3: First Meeting (15 minutes)
Based upon the decision of the student enacting Mr. Ming, the first
meeting may be with either Mr. Richards, Mr. Shade, or the management
team. At the end of the meeting, the observers should be asked to report
on their specific "assignments" and/or to comment on the
general flow of the meeting. The instructor should assist the observers
by helping them to focus on both the group process and meeting results.
Steps 4 and 5: 2nd and 3rd Meetings (15 minutes each)
Repeat Step 3 until all three meetings have been completed.
Step 5: Exercise Debriefing (20 minutes)
The three meetings should be debriefed as a whole in each group.
Once the in-group debriefing is completed, the management team should
then address the class as a whole and then the discussion should be
opened to the entire class. The instructor might want to ask the
following questions or provide these questions to each group for
guidance:
* With whom was the first meeting with and why did the student
enacting Mr. Ming choose to meet with that person or group first?
* What were the goals and results of each meeting? Did Mr. Ming
accomplish his objectives?
* What alternative results might have occurred from this meeting?
Best and worst scenarios?
* What theory(ies) from the course helped the students to
understand the case situation and recommend solutions to the defined
problems?
Students should also be given the opportunity to comment on the
role-playing exercise as a learning instrument. The instructor might ask
the class the following questions:
* Did this exercise animate the case? Did students get a
"feel" for individual and organizational issues surrounding
the case?
* What were the strengths and weaknesses of the exercise? What
changes would they make to the exercise given their experiences with it?
SUGGESTED QUESTIONS AND ANSWERS
The following questions may be employed by the instructor either as
guidelines for the instructor for case analysis and/or as questions to
be distributed to the class in conjunction with the case. This
methodology provides the instructor some latitude in terms of how much
direction he or she wishes to provide the student and therein allows the
instructor to modify the difficulty of the case to fit his or her
class's needs.
* What actions should David Ming haven taken to prepare for or
reduce the possibility of Chuck Richards leaving the firm?
The are at least two actions that David Ming could have taken prior
to Chuck Richards leaving the firm that might have minimized the impact
of this eventuality.
* Employee Retention--it is clear that the V.P. for Manufacturing
(VPM) is one of the most critical positions in this organization
(departmentation by function--see Chart 2) since the lion-share of
departments report to this senior manager. Since it is apparent to Mr.
Ming that Ted Shade cannot go back to being VPM (see Chart 1) given his
ineffective leadership style, Ming's comment about having to
"reconsider my entire organization" demonstrates his lack of
foresight in either retaining or eventually replacing Chuck Richards. In
terms of employee retention, Perry (2000) recommends that managers:
provide career growth and opportunity, talk with employees (get to know
them), encourage feedback and participation, recognize achievement,
provide adequate training, and hire the right person for the job. The
case does not provide information on what actions Ming took in retaining
Chuck Richards, except for Richards receiving a promotion from
"trouble shooter" to VPM in order to handle the Ted Shade
situation.
* Management Succession--Although normally discussed in the context
of employee retirement, management succession can be applied to issues
of employee turnover in key management positions. "Succession
planning is vital, particularly in closely held companies, and needs to
be considered years in advance" (McCrea, 2001, p.63). It usually
involves anticipating management needs, comparing those needs to an
employee skills inventory, creating replacement charts, and providing
management development training for those individuals scheduled to fill
senior level positions. (Dessler, 2003, p. 205) Again, Ming's
comment about the need to reassess his organization demonstrates his
lack of planning for Richard's possible departure.
* What are some of the implications of Chuck Richards leaving the
firm at this time?
There are several implications associated with Chuck Richards'
departure. First, Mr. Ming's surprise at Mr. Richards'
resignation denotes Mr. Ming's relative detachment from Mr.
Richards. As his direct supervisor, Mr. Ming should have had some
inkling as to Mr. Richards' unhappiness with the current work
situation, especially given the problems associated with Ted Shade.
Secondly, Mr. Ming might have thought that his new employees, like
Chuck Richards, would exhibit what Laabs (1998) would have called
"old fashion loyalty." This loyalty, as exhibited by Ted Shade
over the years of his employment, includes: long-term attachment to the
employer, no interest in changing jobs, and the firm and its goals are
the employee's top priorities. However, as Laabs (1998) pointed
out, "the old brand of loyalty is dead." (p. 35) Employees put
their own interests above the organizations, have short-term attachments
to their employers, and are therefore quite prepared to change jobs.
Chuck Richard's leaving might also serve as a signal to Mr.
Ming that perhaps his own management and leadership style should be
reconsidered (besides those of Ted Shade's). Certainly Mr. Ming
should be questioning his protection of Ted Shade (which will be
addressed in question three) and its broader impact on the firm--not
only in terms of the departure of lower level employees but his
inability to retain his valued VP for Manufacturing.
Lastly, Mr. Ming must be prepared to deal with the
"aftermath" of Richards' departure, not only because of
the direct impact on the firm's performance relative to the VP for
Manufacturing position, but also due to the message his departure sends
to the rest of the firm. Weick (1995) argued that "people can make
sense out of anything" (p. 49) and that managers "need to pay
close attention to ways people notice, extract cues, and embellish that
which they extract." (p. 49) Ming must deal with the possible
negative rumors associated with Richards' resignation and must be
prepared to directly address them.
3) What actions should Ming take now, post resignation?
David Ming has at least two issues he needs to confront: the
resignation of Chuck Richards, and the disruptive behavior of Ted Shade.
Although these concerns on the surface may seem to be separate (the
first a short term problem, the second a more long-term and insidious dilemma), they are tied together by the fact that numerous employees
have left the firm due to the harsh treatment they have received from
Ted Shades and his supervisors.
The departure of Chuck Richards, interestingly enough, can be
viewed as an opportunity for David Ming to become reacquainted with the
operational aspects of the firm and experience some of the problems
caused by Ted Shade and his supervisors. Mr. Ming will certainly have to
step into the VP's position, even on a temporary basis, given the
fact that there is currently no one described in the case who has the
expertise in which to take over managing the operation. Plainly, putting
Ted Shades back into his old position would be disastrous.
While the search for a new VP of Manufacturing is being conducted,
David Ming can then finally resolve the Ted Shade situation. Ming will
have to:
* Analyze Ted Shade's behavior as a manager--does he seem to
demonstrate leadership characteristics?
* Given Ted Shade's leadership style, determine if Ming can
re-engineer either the man or a job to create a better employee-task
fit.
Once Ming has made these decisions (see questions 4 and 6), he then
needs to turn his attention inward and ask himself how he could have let
the situation with Ted Shade become so volatile. Yet facing problem
subordinates is not easy.
Veiga (1988) cautioned managers to "face your problem
subordinates now!" (p. 145) but noted that a "problem
subordinate often produced a kind of autistic hostility" in
managers, managers' anger would "feed upon itself." (p.
146) Managers become quite frustrated with these subordinates and search
for "overwhelming proof" (p. 146) before taking any
action--the data gathering process becomes another method for avoiding
the need to deal with the problem employee.
Veiga would recommend that Ming should be candid and direct when
confronting Ted Shade but Ming should also be supportive to assist Ted
in confronting his own behavior. Veiga observed that most managers,
however, try to apply restrained stress on the subordinate to leave the
firm. Secondly, Veiga warns that the current deviant behavior of the
employee can be inextricably coupled to past performance - in Ted's
case his hard work in dedication (especially during the formative years
of the firm). "Once previously held views are put aside, the
potential for new insights can be enormous." (p. 150) Third, Veiga
indicated that managers tend to ignore early warning signals and need to
own up to the part that they played in creating and harboring the
problem employee. David Ming needs to understand that he has aided and
abetted Ted Shade's behavior by continuing to neglect the problem
once it had been uncovered. He needs to act and he needs to act now.
4) Analyze Ted Shade's behavior as a manager--does he seem to
demonstrate leadership characteristics?
Ted Shade was appointed by the organization and given formal
authority to direct the activity of others in fulfilling organization
goals, however, he seems ineffective as a leader in that he is unable or
incapable of influencing and empowering others to accomplish their
goals. His methodology for influencing others seems to be punitive in
nature and his ability to communicate with his staff is minimal. He does
appear to be highly organized, hard working, and technically competent
however he lacks the people-skills necessary in order to create a team
environment and positive employee morale. His immediate subordinates do
not perceive him as a good role model and they question his selection as
a Vice-President.
5) Describe Ted Shade's leadership style employing
contingency, path-goal theory and transformation leadership theory.
Employing the Fiedler contingency model results in the following
findings. Ted Shade describes his co-workers and employees in a very
negative manner and would therefore receive a low score on the
least-preferred co-worker (LPC) questionnaire. Given Shade's low
LPC score, his leadership style would be labeled as "task
oriented." A task-oriented leader is appropriate, according to Fiedler, when the three contingency variables (leader-member relations,
task structure, and position power) create very favorable or very
unfavorable managerial situations. (Fiedler, Chemers, and Mahar, 1994)
a) Leader-member relations: given the comments of Ted Shade's
three subordinates and the fact that Ted has described his current
dealings with his associates as being very formal in nature, one could
classify these relationships as unfavorable to very unfavorable.
b) Task structure: the jobs seem highly structured (production
operations) and could be classified as favorable to very favorable.
c) Position power: Ted Shade's power position within the
organization has recently decreased (change in job title and reduction
of duties) reducing his position power.
It also appears that Ted would fire his "lazy" workers if
he had the authority to do so. We could then classify his position power
as unfavorable. See Figure 2, below.
The cumulative effect of the three variables is that Ted Shade is
managing in a "mixed" (between favorable and unfavorable)
situation--a situation that calls for a relationship oriented leader.
Given the fixed nature of leadership (according to Fiedler), Ted's
effectiveness can only be improved by changing the amount of power the
leader has over organization factors such as salary, promotions and
disciplinary action or by moving him into a leadership position that
better matched his style of leadership.
It is interesting to note that the application of House's
path-goal leadership theory leads to a differing set of analyses. In the
path-goal theory, the leader's job is to modify his or her style of
leadership in order to assist followers in attaining goals, and to
provide direction and support needed to ensure that their goals are
compatible with the organization's. (Bass, 1990) This differs from
Fiedler's theory which treats leadership style as a fixed or
"given" in the leadership equation.
For House, a leader's behavior is acceptable to subordinates
when viewed as a source of satisfaction, and motivational when need
satisfaction is contingent on performance, and the leader facilitates,
coaches and rewards effective performance.
It is apparent from the case that Ted Shade's leadership style
could at best be described as achievement-oriented since he set
challenging goals and expected subordinates to perform at their highest
levels. It is also obvious from the case that the workers were highly
dissatisfied with Ted Shade's leadership style given the
subordinates' perception of their own abilities to do the job
coupled with their work experience--they wanted more control of their
work environment.
Secondly, the highly stressful nature of the work environment
(caused by the need to meet production schedules as dictated by industry
competitiveness), as described by the subordinates, necessitated
providing emotional support (empathy). Since employee performance and
satisfaction are likely to be positively influenced when the leader
compensates for the shortcomings in either the employee or the work
setting, Ted Shade's leadership style needed to be more supportive
to defray the stress in the work environment.
Transformational leadership, the ability to create and articulate a
realistic, credible, and attractive vision for the future of the
organization that improves upon the present situation, is certainly not
evident in Ted Shade, or his boss (David Ming). (Hughes, Ginnett, and
Curphy, 1999)
The CEO (Robinson) of the company had a vision of "to create
and maintain an organizational commitment to satisfying customer needs,
staying on the cutting edge of technology, and engendering a mutual
respect among and between employees", however, his departure and
subsequent return did not engender inspiration or a particular value
system.
More importantly, Galactic's rewarding of Ted Shade (who
merely emulated his previous boss's behavior) sent a clear message
as to the real values held by Galactic management--loyalty and meeting
deadlines! Ted Shade was not the only senior level manager to practice
punitive style management and can be perceived as a product of the real
work environment at Galactic.
6) Given Ted Shade's leadership style, determine if Ming can
re-engineer either the man or a job to create a better employee-task
fit.
The answer to question five (5) determined that Ted Shade was not
well suited for a leadership position in the firm given the
people-centered requirements of the task as compared to Ted's
task-centered approach. This question forces students to confront the
question "what do we do with Ted?"
In determining what should be done with Ted, Ming needs to take a
hard look at Ted. First, Ted is 49 years old and therefore the easy way
out of "early retirement" is not an option. Ted's
interview with Dr. Robinson (the consultant) should reveal to Ming that
Ted is a very structured individual who seems to understand his
limitations but is still a slave to them. Ted knows that "a person
who is negative to you, people who yell and don't understand the
employees' jobs, they're probably bad managers" yet the
three things he would like to change about himself is "my ability
to communicate ...; being able to accept other peoples'
shortcomings and walk away from them without getting upset ...".
Ted's most revealing statement is his concept of the perfect and
worst job, "The most ideal job for me would be as a forest ranger in the mountains. You are away from everything, and you are with the
animals, the forest, and nature overall. The worst job I can imagine is
any job in Manhattan. There are too many people there. There's too
much of everything."
David Ming should be able to discern from Ted's comments that
Ted not only knows that he lacks interpersonal skills but would prefer a
job that has minimal contact with coworkers. Since most managerial
positions involve managing people and/or supplier/customer interface, it
may not be possible for Ming to find Ted an equivalent high level
position in the firm (Ted has already had the equivalent of a demotion moving from VP of Manufacturing to VP of Supplier Management). Students
might recommend that given Ted's penchant and interest in planning
and structure that Ming might suggest "Peter Principling" Ted
and making him a VP for Planning reporting directly to the President. At
first brush this might be considered a viable option, except that Ted
had a very bad experience with both the President and the Chair of the
Board. "In retrospect, if I could change the past I would make
certain that I didn't present anything in front of Al (President)
and Pat (Chairperson & CEO). One time I was asked to make a
presentation before them, and they shot down what I was saying. I began
arguing with them, but it was no use; they had their minds made up. From
then on I just kept my mouth shut. Also, I never volunteered for
anything. It was always given to me. These two items may have hurt me
more than anything else." The VP of Planning would not seem to be a
viable option either.
If students believe that Ming cannot engineer the job to fit the
person, students might suggest that Ted Shade take some form of human
relations training (i.e. sensitivity training) in order to help deal
with his poor interpersonal skills. It is evident that Ted knows what
makes for a "good and bad" manager, however, the real question
is whether Ted is willing and able to work on changing his behavior. Ted
wants to be able "to communicate and work with my kids better"
and perhaps this could provide Ted with the motivation he would need in
order to assist in the change process.
Mr. Ming must be prepared support Ted if he decides that human
relations training is a viable option. Mr. Ming must mentor Ted through
this process. This may include Ming giving Ted a leave of absence
(preferably paid), providing coaching, counseling and role modeling
appropriate employer-employee interaction.
Some students may assume that the training would fail or that Ted
Shade would not be willing to participate in any human relations
training. If this is the case, then Mr. Ming is left in a very difficult
position. What does he do with a "loyal" employee who just
isn't working out? Mr. Ming must unfortunately be prepared to do
what Ted Shade himself would do, lay him off. In Ted's own words
"the best way of handling a problem is getting rid of people who
should be let go. You can't keep deadwood. It wastes
resources." Ted acknowledges that firing people is a difficult job,
by one that has to be done for the benefit of the company. Mr. Ming must
put his personal feeling about Ted aside and do what is best for the
firm. Students might suggest that Ted's departure would serve as a
positive indicator to the employees--that inhumane treatment of
employees will not longer be tolerated and rewarded.
EPILOGUE
At this point, Peter called Bruce and told him what had happened.
He told him that the "games were over". He was leaving and
moving his business to a competitor. Realizing that the loss of business
could be disastrous to the Division, Joe, Morgan, and the executive vice
president met with Peter three times to ask him to stay. The first
meeting they told him that they would accept his plan. He told them that
the plan died with the second accusation. At the second meeting they
threatened to sue him if he left, due to his "non-compete
clause." He told them that the customers and his fellow salespeople
would revolt, shutting down the Division immediately. At the third
meeting, they offered to have give Peter anything he wanted as long as
he stayed. Peter reminded them that it was not about money, but rather
about respect. He went on to say that "once respect is gone, it can
not be replaced."
Bruce eventually stepped into the negotiations and reached a
settlement with Peter. Peter left the Company and worked for a company
in a different industry. Sometime after Peter's departure he
received a phone call from a designer at NBC who told him that he found
one of the missing dies in the plant. When the designer informed the
production staff, they told him not to say anything to Peter.
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FIGURE 2
TED SHADE'S LEADERSHIP STYLE: FIEDLER'S CONTINGENCY APPROACH
Leader-Member Relationship Task Structure Position Power
Unfavorable/very unfavorable Very favorable Unfavorable