Form groups of three to five people, discuss the following scenario, and discuss the questions; be prepared to share your discussions with your class: You are the founding entrepreneurs of HighandTall Company, a fast-growing digital software company that specializes in home consumer electronics. Customer demand to license your software has boomed so much that in just two years, you have added over 50 new software programmers to help develop a new range of software products. These people are young and inexperienced but are highly skilled and used to putting in long hours to see their ideas succeed. The growth of your company has been so swift that you still operate informally. As top managers, you have been so absorbed in your own work that you have paid little attention to the issue of leading your growing company. You have allowed your programmers to find solutions to problems as they go along, they have also been allowed to form their own work groups, but there are signs that problems are arising. There have been increasing complaints from employees that as managers you do not recognize or reward good performance and that they do not feel equitably treated. Moreover, there have been growing concerns that you are either too busy or not willing to listen to their new ideas and act on them. A bad atmosphere seems to be developing in the company and recently several talented employees have left. You realize in hindsight that you have done a poor job of leading your employees and that you need to develop a common leadership approach to encourage employees to perform well and stay with your company.
1. Analyze this leadership situation to uncover the contingency factors that will be important in choosing a leadership approach. Examine the four approaches to leadership against these factors.
2. Which is the most effective leadership approach to adopt?
3. In what other ways could you influence and persuade your employees to perform well and stay with your company?