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 an employee for a short period of time but if costs continued to rise and quality continued to diminish, the company would eventually go out of business and the employees would be out of a job. However, Phil’s authority-compliance management style isn’t effective either.
Because of his total disregard and disrespect of his employees? Phil’s leadership resulted in high turnover and difficulty in hiring replacements for them. There were also talks of unionizing among workers because they didn’t feel that they were being treated fairly. I’d prefer to work for Ben and enjoy the good times until the company eventually went of business, but there’s no way I would work for Phil. I would save Phil the time in firing me because I would quit. I’d rather work for lower pay and be happy in my work environment than work under Phil’s management.
Team management is often considered the most effective style and is recommended because organization members work together to accomplish tasks. If I were Phil’s boss, I would try train Phil in this type of management style so he can understand how important it is to treat employees respectfully and how working together is vital in accomplishing goals. Committed employees work together because they have a common stake in the organization’s purpose and that leads to relationships of trust and respect.