The recommendation for the PROFITEL INC Company
The company’s newly appointed Ceo lars Peeters uses the transformational leadership to bring the drastic change to the company by increasing the profit margin of the company by investing in the latest wireless broadband technology. But this have caused drastic changes taken by the company such as the company have to cut off the work force by 5% due to the increase cost, reduction of peripheral service of the company which Push the customer to old technology , and putting pressure on the government to deregulate PROFITEL’s traditional and emerging businesses. But all this company change has caused the major failure of the company. To improve the company the company ceo also have to do major changes in the leadership style that he used and try to implement he should use transactional leadership, this is because transformational leadership they focus more on the leaders vision rather than the follower attribution. This is one of the main reasons which contributed to the company failure. If the ceo use the transactional leadership then he will try to maintain the stability in the organisation by using regular economic and social exchange which help to achieve specific goal for both leader and follower. Where this style they also focus on follower attribution equally so the follower contribution also will be valued where their ideas will be taken into account for the company improvement which is not done by the ceo. This transformational leader has made the ceo over confident, so the changes in this leadership can improve the company. Other than that all the other steps taken by the company have caused the arise of problem like customer dissatisfaction which have caused the company shares to decline 20%. This can be a treat for the company because it is not consistent with the company new objective set by the ceo to increase its profit margin and reduce the finance to invest in the wireless broadband technology. To...
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