MGMT611 Assignment 2 Solution Spring 2011

[vukhan]

Joan Charleson and Robert Ewing were classmates in high school. After graduation Joan went to work as a cashier for a bank, while Robert got a job in an insurance company. Both organizations offered their employees free tuition at the college of their choice. The only restrictions were that no more than two courses could be taken per term and that the employee had to have a grade of B or better to qualify for reimbursement. In addition, both firms had excellent employee benefit programs, including free dental care and retirement after 20 years at one-half the average of one's salary over the five years before retirement. Joan was surprised at the high degree of paternalism exercised by both the bank and her boss. He was always looking after his people, making sure everything was going all right, and keeping track of what everyone was doing. While Joan initially liked this approach, she soon tired of it. She felt there was not enough freedom to exercise her own judgement. As a result, she asked for a transfer to another department. However, things there were basically the same. Although this upset her, Joan stayed with the bank. She took three courses every semester (paying for the third one herself) and every summer, so that at the end of four years she finished her bachelor's degree in accounting and began looking for another job. While reading the "help wanted" columns, Joan noticed that Robert's company was hiring new accountants. She called Robert and the two of them had lunch. During the meal Joan asked Robert how he liked the insurance firm. He painted a glowing picture. In particular, he told Joan about the benefit program and leadership behavior of the managers. However, it seemed to Joan that Robert's firm was very much like her own. What particularly disturbed Joan was Robert's comment that he was in no hurry to finish his degree because raises and salary promotions were tied most heavily to time on the job and not to educational requirements or personal drive. After interviewing with a half-dozen companies, Joan took a job with a large accounting firm. She told her father, "This company doesn't baby you. It's perform or get out. I'm going to be on my own, and I like that. I don't need extensive benefit programs, I need the chance to succeed on my own. My new boss is a real participative management type. He tells me what needs to be done and relies on me to do it. I'm going to like working for this new firm."
Note: Each question carries equal marks.
Questions
1. Contrast the leadership behaviors of Joan's old boss and her new boss.
2. Is it possible that both bosses are effective in their jobs? Explain.
3. Would Joan like a laissez-faire leader?