In Consolidated Diesel Company, management policies base on the belief in the employee, who work at this company. Employees involve in the decision making and problems solving of company. The leadership style of managers can be considered as “Joins style”, which is democratic. Leaders and employees in company will make decision together, on the basis of consensus or compromise and agreement. It will help employees feel that their opinion is important and then they will work effectively. Furthermore, when decision made by all employees, it can takes advantage of the knowledge and expertise of individuals from different areas with high quality. Not only make decision with leader, employees in company also can design their schedule. For example, in 2006, when company had to add capacity because of the demand of customers, the teams designed their own schedule. In this schedule, employees did not have to work on Saturday. Moreover, teams at Consolidated Diesel Company have responsibility with the matters. They can hire and fire their own members if it is necessary. An employee of company said, “When I came here, I realized that in other places where I had worked, decisions had been made for me. Here I'm required to be involved in the decision-making process". These facts prove that the managers in CDC trust their employees and they are willing to delegate authority to their staff. It is also the assumption about subordinates in theory Y of Douglas McGregor. The ordinary person is motivated by the desire for personal growth and achievement, and will exercise self-direction and self control and actively seek responsibility if he is committed to the task. The manager tends to encourage subordinate to take on responsibility.
The management policies of this company are also is suitable for transformation leadership. Transformational leaders display behaviors associated with 4 transformational style:
+ Intellectual stimulation: the company listens to employees about their problem. Lyons and others managers spend one or two hours per day walking around company offices and manufacturing areas talking to the people. It means that manager wants to here the ideas of employees. When company has problem, manager divides employees into 15 group and find solution together. This method will help employees more creative and logical thinking.
+ Individualized consideration: All employees in company are treated fairly. Managers emphasize that all work and all people are valuable to the company. For example, during a four-month assimilation period, all new hires are evaluated fairly by their managers or manager designees, with additional comment from a peer and a customer. Company also plays fairly from bonuses to which shift employees work.
+ Inspirational motivation: Create flexibility in employees' willingness and ability to handle different tasks. When manager provides employee to do different task, he wants to provide the challenges for employees and increase the enthusiasm of employees.
+ Idealized influence:
With the transformational leadership style, manager in company try to encourage and inspire their followers, make the followers want to achieve result and to fulfill...