The University of Michigan conducted a study which determined the effectiveness of leaders by productivity of the subordinates. The Michigan researchers established two types of leadership behavior, each type consisting of two dimensions. Ben’s leadership style is the first style which is employee-centered and focuses on the human needs of their subordinates. Ben is well liked because of the relationships he builds with his employees. He knows most of his employees by name and takes an interest in their families and hobbies. His employees are very loyal to him and turnover is extremely low. However, his style shows more concern for his employees than the business. This results in the second worst record for costs and production levels. He never set objectives and standards for the plant, and also never held his supervisors accountable for developing plans for improving productivity or quality. Under the Leadership Grid, this type of leadership is considered Country club management. Country club management occurs when emphasis is given to people rather than to work outputs.
In contrast to Bill’s leadership style, Phi was job-centered and believed in getting the job done without regard to employees. He cut costs by reducing social activities, eliminating training programs, and reducing the frequency of equipment maintenance. He also believed employees should be given one warning to improve their performance and if their performance didn’t improve within two weeks, the employee should be fired. He also liked to reprimand employees in front of others to set an example and when business was slow, Phil laid off workers instead of finding them something else to do. Under the Leadership Grid, Phil’s leadership is considered Authority-compliance management. Authority-compliance management occurs when efficiency in operations is the dominant orientation.
I don’t think either leadership is very effective. Ben’s Country club management would be great for...
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