Chapter 6: leadership in organisation

• Group Discussion:

• When Sarawak-Sabah International Bhd, a manufacturer of

refinery equipment, brought in Suffian Shah to manage its
technical services division, company executives informed
him of the urgent situation. The technical engineers were
the highest paid and the best-educated, but were the least
productive division of the company. The instructions to
Suffian Shah were to turn the company around. He showed
great concern for their personal welfare.
•
•
• 1. What was the problem?
•
• 2. Why were the engineers not productive?
•
• 3. Why did this division have such a turnover?
•
• 4. What leadership style should Suffian Shah adopted? Why?
•
• 5. Explain the leader behaviour which should be apply by Suffian
Shah.
•
•
•
 Answer 1
• “…The technical engineers were the highest
paid and the best-educated, but were the
least productive division of the company…”
• Low labour productivity – higher labour costs
per unit, higher price, lower sales ( if PED is
high), lower profit margin
• Motivational problems, it seem that money is
not a good motivator in this case.
 Answer 2

– unreliable machinery
– poor training of workers
– low motivation levels
– Less effective management
– poor organised work
– poor coordination of resources
 Answer 3
1. There aren’t enough career development opportunities-
small firm?
2. Employees hate their bosses
3. Company culture is toxic- rigid
4. Team members are treated differently- not fair
5. Employees aren’t recognized for their hard work
6. JOB DOESN'T MATCH DESCRIPTION
7. NO INCENTIVES( FINANCIAL OR NON FINANCIAL
INCENTIVES), EXCEPT AT THE MANAGER LEVEL
8. Lack of communication
9. Disconnect with managers- not approachable
10. Managers don’t value employee feedback
Leadership Styles
Autocratic

Participative
(Democratic)

Free-rein ( Laissez faire)

paternalistic

8
 Answer 4
1.Autocratic – because there is a need to
implement changes ( urgent)
2. Democratic because there is a need to raise
the motivational levels of those engineer.
3. Laissez faire- because engineers are
professional that know what to do at what time
(expert)
4. Contingency approach- depends on
individual, culture etc.
 Answer 5
1.Supportive leadership
• - involves leader behaviour that shows
concern for employees' well-being and
personal needs. Leadership behaviour is open,
friendly and approachable, and the leader
creates a team climate and treats employees
as equals. Supportive leadership is similar to
the consideration leadership described earlier
in the Fiedler Contingency Theory.
 ii) Participative leadership

• - means that the leader consults with his or

her employees about decisions.
• - Leader behaviour includes asking for
opinions and suggestions, encouraging
participation in decision-making and meeting
with employees in their workplaces.
• - The participative leader encourages group
discussions and the writing of suggestions.
•
 iii) Directive leadership

• - Occurs when the leader tells employees

exactly what they are supposed to do.
• - Leader behaviour includes planning,
making schedules, setting performance
goals and behaviour standards, and
stressing adherence to rules and
regulations.