MGMT2008

ORGANIZATIONAL BEHAVIOR
Success Enterprises Cases Analysis

NOVEMBER 2, 2018
ROGER BAILEY
414001926
Background
Success Enterprises is a medium sized sanitation company whose main objective was to provide

an efficient system for collection and disposal of household refuse and garden trimmings.

It is a limited liability company. Which by its definition, is a type of company in which

the owners have specific tax advantages and no personal financial risk if

the company should fail (Dictionary).

It was established in 1978. The General Manager is Mrs. Deen, a very ambitious woman, who

started this business from the ground up with her own savings. The company has 21 employees

and 5 compactors and grew considerably within the first 3 years of operation. By 1984 the

company had 4 contracts, 75 employees and fleet of 6 vehicles.

Summary of Facts
• Government constantly audited progress.

• Success enterprises did temporary contractor services for the government.

• Drivers and loaders made up majority of the company.

• A shrinkage of government expenditure in 1980’s resulted in decreased service areas.

Coupled with the introduction of value added tax, Success was forced to cut staff to 60.

• Annual renewals of existing contracts had become more competitive

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Problem Statement
Success Enterprises is faced with a few problems. The main problem in this case is the lack of

disciplinary actions on the part of the General Manager stemming from ineffective leadership.

However, there are other issues in this company. These issues are as follows:

• Sympathetic General Manager who is afraid to enforce rules

• Lack of supervisors

• Rotation of supervisors

• Misuse and theft of company assets

• Unclear unity of command

• Inappropriate hiring methods

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Analysis

Core Problem
Leadership

In Organizational Behavior, leadership can be defined as the ability to influence a group toward

the achievement of a vision or set of goals (Robbins & Judge, 2012, p. 368). The ability of the

management to make sound decisions and inspire others to perform well. The process unfolds

through a unique dynamic among the resources that participants bring to interactions and the

ability of the participants to creatively mobilize these resources to perform the task at hand

(Meschitti, 2018).

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Ms Deens leadership style was of a paternalistic nature. The paternalistic leadership style is

built around the authoritative idea that the leader is the person with the power to decide and

his/her legitimacy comes from his/her expertise. The leader has the final say in making

decisions and there is no consultations needed, as the leader is expected to make decisions that

benefit the employees. The subordinates are treated as an extended family and in a sense have

a more partner-like relationship with the leader than in an autocratic model, for example. The

leader puts the wellbeing of the subordinates at the center of decision-making and tries to

ensure each of them are treated fairly. Though ultimately, the power lies in the hands of the

leader.

Mrs. Deen’s paternalistic style caused her employees to have a negative attitude towards her

and subsequently the company. Saying things along the line of how “soft” she is toward them

and if they knowingly did wrong, they would say to themselves and others within the company

that she wouldn’t be able to prove their wrong doing.

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Satellite Problems
1. Deviant workplace Behavior

This was influenced by employee value systems & leadership style.

Deviance in the workplace is the “voluntary behavior of organization members which violates

significant organizational norms and in doing so threatens the wellbeing of the organization or

its members” (Robinson & J., 1995, p. 555).

Mrs. Deen’s sympathetic demeanor and reluctance to firmly address, suspend or fire guilty

parties only reinforces the sabotage, misuse, theft of company assets and non-compliance.

Fear of consequences. Concerns about possible outcomes sometimes prevent us from behaving

in a fashion consistent with our attitudes. Fears themselves create risks that need to be

addressed (Ropeik, 2004).

Gender-organization-system: Women have been found, at times, to exhibit inappropriate traits,

behaviors, attitudes, etc for assuming & maintaining high-level management positions.

That this may be due to women having been socialized to exhibit "inappropriate" attributes for

assuming high-level jobs, and/or because of societal practices and expectations regarding

women which have been carried into the organization by its members.

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 2. Unhealthy Ethical Climate

According to Cullen et al., the ethical climate is perceived by employees as a mirror of the

predominant ethical values and of the organizational behaviors, practices, and ethical policies

that shape their experience in the company (2003).

Mrs Deen’s benevolence even after knowing of her employee’s deviant workplace behavior sets

precedent for seemingly appropriate behavior.

3. Insubordination

Disobedient to authority (Merriam-Webster, n.d.); refusal to obey orders.

“ they listened politely as usual but some of them wont heed instructions until you repeat

them”

4. Broken Unity of Command

Unity of command means that an employee should receive orders from one superior only. In

other words, no employee should be subjected to the orders of more than one superior.

“Unity of command means organizational principle that each person within the line of authority

should be responsible to only other person. An employee who is responsible to various persons

in authority will presumably be confused, ineffective and irresponsible, while an employee

receiving commands from one supervisor is presumably methodical, efficient and responsible

(Fox & Meyer, 1995).

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 5. Inappropriate Hiring Practices

It is those who are employed that ensure the organization can target its objectives.

Trust largely an integral factor of the paternalistic leadership style. The loyalty Mrs. Deen

expects to be reciprocated is not.

We can infer from the case that deviant workers are more likely to refer persons with similar

ethical predispositions.

6. Dissatisfaction

Some of the employees expressed frustration with Mrs. Dean’s reluctance to create and

enforce policies and fire guilty parties.

Expressions of dissatisfaction are listed below

• Exit: Behavior directed toward leaving the organization, including looking for a new

position as well as resigning.

• Voice: Discontentment can be a trigger for change when those who are unhappy seek to

come up with new ways to improve current working conditions (George, 2001) by

actively and constructively suggesting improvements, discussing problems with

superiors, and some forms of union activity

• Loyalty: Passively but optimistically waiting for conditions to improve, including

speaking up for the organization in the face of external criticism and trusting the

organization and its management to “do the right thing.”

• Neglect: Passively allowing conditions to worsen, including chronic absenteeism or

lateness, reduced effort, and increased error rate.

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Alternatives
• Unity of command

• Firing and Promotions

• Training of Supervisors

• Accountability and Stability

• Change of Leadership style

• Amend structure from flat to tall

• Reprimand (Implementation of Policies)

Pros and cons

Unit of Command

Pro’s

• Distribution of Authority

• Job Description knowledge

• Increased Efficiency

• Structured Grouping

Con’s

• Slower Decision making

• High Compensation costs

Firing and promotions

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Pro’s

• Less Training Cost when bringing up someone from within the organization as opposed

to bringing in from outside.

• Reduction in Overhead Costs

Con’s

• Payment Compensation Costs: if employees worked for longer than the required period

before being let go.

• Loss of Company Property due to jealous coworkers

• Jealousy among Co-workers

Accountability and stability

Pro’s

• Motivation

• Builds Morale

Con’s

• Malicious acts against employees

Leadership style

Pro’s

• Employee Motivation

• Clear Structure

• Productivity And Costs

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 • Eliminates confusion with chain of command

Con’s

• Fear

• Anger

• Unyielding Leadership

Training supervisors

Pro’s

• Increase in Productivity

• Less strain on Mrs. Deen

Con’s

• Training Cost

Amending structure

Pro’s

• Narrow span of control

• Clear distinct layers

Con’s

• Communication

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Implementation of policies

Pro’s

• Less Deviant workplace behavior

• Clear Guidelines

Con’s

• Employee Enthusiasm

Solutions

The best alternative is to change the leadership style

Current leadership style: Paternalistic leadership

This managerial approach involves a dominant authority figure who acts as a patriarch or

matriarch and treats employees and partners as though they are members of a large, extended

family. In exchange, the leader expects loyalty and trust from employees, as well as obedience.

Recommended leadership style: Transactional leadership

Transactional leadership is focused on group organization, establishing a clear chain of

command and implementing a carrot-and-stick approach to management

activities. Transactional leadership depends on self-motivated people who work well in a

structured, directed environment (St. Thomas University, 2014).

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It is considered transactional because leaders offer an exchange; they reward good

performances, while punishing bad practice, for example deviant workplace behavior. While

this can be an effective way of completing short-term tasks, employees are unlikely to reach

their full creative potential in such conditions.

Recommendations
The change of leadership style to a Transactional leadership style.

Guilty parties should be punished through a step by step procedure to address employee

misconduct.

The influence of transactional leadership style should come from supervisors by giving them

more authority.

Rewarding loyal employees through promotion. Employees like Brian.

Creating stability on shifts by keeping one steady supervisor per team but if Mrs. Deen prefers

to rotate them then rotate after an extended period of time, for example 30 days.

Implementing a one truck per driver system. The driver holds all the responsibility for their

vehicle. i.e making sure the vehicle is running as it should and keeping it tidy.

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References
Cullen, J. B., Parboteeah, K. P. & B, V., 2003. The Effects of Ethical Climates on Organizational
Commitment: a Two-Study Analysis. Journal of Business Ethics, 46(2), pp. 127-141.

Dictionary, C., n.d. LLC. [Online]

Fox, W. & Meyer, I., 1995. Public Administration Dictionary. s.l.:Juta and Company Ltd.

George, J. M., 2001. When Job Disstisfaction Leads to Creativity: Encouraging the Expression of Voice.
Academy of Management Journal, 44(4), pp. 682-696.

Merriam-Webster, n.d. Insubordinate. [Online]

Meschitti, V., 2018. The power of positioning: How leadership work unfolds in team interactions. [Online]
Available at: https://doi.org/10.1177%2F1742715018808905
[Accessed 2 November 2018].

Robbins, S. P. & Judge, T. A., 2012. Organizational Behavior. 15th ed. s.l.:Prentice Hall.

Robinson, S. L. & J., B. R., 1995. A typology of deviant workplace behaviours: A multidimentional scaling
study. Academy of management Journal, 38(2), p. 555.

Ropeik, D., 2004. The consequences of fear. EBMO Reports, Volume 5, pp. 56-60.

St. Thomas University, 2014. What is Transactional Leadership? How Structure Leads to Results. [Online]
Available at: https://online.stu.edu/articles/education/what-is-transactional-leadership.aspx
[Accessed 2 November 2018].

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