Organization Study Case Analysis #3 BA 510 Managing People and Organizations Dr. Gerald Zeitz Chapter Thirteen, Concluding Case 2 Zhen Zhang 1.What type or types of power does Anita Rod*censored* appear to rely upon? Based on my observation, Mrs. Anita Rod*censored* heavily relies on Expert, Referent, and Information power. According to the textbook, Expert power is based on the possession of expertise that is invaluable to the company and its employees. From the case discussion, we could see that, due to her diligent work, Anita Rod*censored* is able to possess firsthand information about the company’s products and customers and integrate such information into the final value-added product package the company offers to its customer. For example, Anita is engaged in extensive traveling to potential markets to obtain firsthand information about the market and its customers.
Referent power, on the other hand, results from being admired, personally identified with, or liked by others. Anita Rod*censored* is widely liked by her employees and managers. And many of the company’s employees even state that it will be difficult for them to work for other companies after being an employee of Body Shop International. There is no doubt that such kind of loyalty among its employees will enhance the company’s productivity and realization of Anita’s vision. Finally, Information power comes from the access to mission-critical information regarding the operation and growth of the company.
As head of the company and possibly the largest stockholder, Anita Rod*censored* actually sets direction for the company’s operation for years to come. 2. Would you consider Anita Rod*censored* to be a transformational leader? Why, or why not? I definitely regard Mrs. Anita Rod*censored* as a transformational leader. Based on the textbook, transformational leaders are leaders who could motivate individuals to perform beyond normal expectations by inspiring subordinates to focus on broader missions that transcend their own immediate self-interestes, to concentrate on intrinsic higher-level goals rather than extrinsic lower-level goals, and to have confidence in their abilities to achieve the extraordinary missions articulated by the leader. In order to be a transformational leader, one has to be charismatic, which means that this leader is able to inspire others and gain respect from them; to recognize what is really significant for the company; and to articulate a clearly defined mission. As for Anita Rod*censored*, she set the vision for the company to be socially and environmentally responsible and to benefit the external environments and its employees as well. On one hand, this vision is strongly supported by the company’s employees and customers and represents the future trend, on the other hand, more interestingly, this vision has benefited the company’s business as shown by the strong market growth over the years. Charismatic leaders also often rely on referent and expert power as Anita has been doing.
Individual consideration and Intellectual stimulation are also important characteristics of a charismatic leader. While the former means that delegation of projects to help develop each follower’s capabilities, paying personal attention to each follower’s needs, and treating each individual with respect, the latter means that a leader should offer new ideas to stimulate followers to rethink the status quo, encourage examining the problem from different angles, and foster creative breakthrough in formidable tasks. Anita has clearly identified the importance of empowering employees as part of her vision for the company. 3. How is transactional leadership provided for at Body Shop International? Transactional leaders motivate subordinates to perform at expected levels.
They do this by helping them recognize task responsibilities, identify goals, acquire confidence about meeting desired performance levels, and understand how their needs and the rewards that they desire are linked to goal achievement. Body Shop International is expecting its employees to help customers with a better understating of the products and make informed purchase decision. To help its employee achieve this goal, fist, there always are information sheets provided with products to familiarize customers with the products, second, the company provides extensive amount of information regarding the products in its shops for customers to browse through (the information is provided in the form of note cards and pamphlets with colorful stories and graphics for easy understanding), finally, employees will go through carefully designed training process that will equip them will necessary knowledge of the products rather than teach them how to push customers for the deal. Reference: Chapter 13, Selected Chapters from Management, Third Edition, Kathryn M. Bartol and David C. Martin, Mcgraw-Hill 2000 Business Essays.