Case: ACE Insurance Company has Leadership Issues

Annie White and Chandani Patel each supervise twenty clerks at the head office of a large insurance company. The clerks perform routine tasks such as filing, word processing, setting up databases, and general office duties. Annie and Chandani rotate on a weekly basis between the two groups of twenty clerks. These two supervisors have been experiencing problems over the last few months because of their sharply different views on how their clerical staff should be managed.

Annie White feels that jobs of the clerical type result in boredom and job dissatisfaction for the people doing them. In her view, it is important to prevent the errors that would invariably occur because of the lack of attention paid to the job. Accordingly, she has instituted numerous checks on the work of the clerks, and has required that each do a carefully designed function. If an employee commits a specific number of errors during one shift, the employee is reprimanded and a letter goes in his/her human resources file. These letters are taken into account when it is time for a raise. Annie does not coordinate her supervisory responsibilities with Chandani very well. If she has something to tell Chandani she will e-mail her. She does not feel comfortable talking face to face with Chandani because Chandani has an accent and Annie does not always understand her. Annie feels that she and Chandani have nothing in common.

Chandani Patel agrees that the work at times may cause boredom and dissatisfaction. However, she feels the way to reduce the negative impact of this is to increase the decision-making scope of the jobs. Accordingly, she allows the clerks she supervises to decide among themselves how the total workload is going to be divided. The only specific requirement is that productivity objectives set out by higher management be achieved. When the team meets their weekly objectives Chandani lets them leave early on Friday afternoons. Chandani is the type of employee who will help out others whenever she is asked. Sometimes she is asked to cover for other supervisors when they are away and she gladly agrees.

Annie feels that Chandani is not strict enough when she is the Supervisor and criticizes her supervisory skills to anyone who will listen. Recently Annie complained to their Manager, Mary Marsh about Chandanis behaviour. In response to the complaint, Mary scheduled a meeting with Annie and Chandani. During this meeting, they discussed the problem and how it should be addressed. Annie became very heated during the discussion. Annie insisted that she knows the employees well and that they should be watched and controlled at all times. She was not going to change her style and that was all there was to it. Chandani was very calm when she expressed her point of view. She said that she did not really want to change her style of management either but felt that they should discuss the situation and try to come up with a solution. With those words Annie jumped up and walked out saying, she was too busy to sit around and discuss the issue and she was going to continue to supervise her way.

You are an Organizational Behaviour Consultant called in to look at the situation. You decide to start by talking to some employees. The following is a summary of your discussion with the employees.

Carla: Well, lately weve been putting in a lot of overtime, and Annie seems to think that we should always appreciate the opportunity to come to work and make more money. After a while, though our families begin to suffer, not to mention our backs and shoulders. The extra moneys OK, but most of the time it is not worth it. I have been working part time on my accounting diploma through night school and the overtime is preventing me from keeping up with my studies. I do not want to risk my deans honours standing. I have discussed my concerns with Chandani and she is very helpful. Sometimes she lets me go early even when Annie is my supervisor that day. Chandani is going to talk with Annie to see what can be done about the excessive overtime hours.

Manpreet: I dont find the work boring. Every day we do different tasks and in a different order. I am happiest when Chandani is my supervisor because she lets our work group organize who is going to do what. We get to interact with each other more and I enjoy that. We always seem to be laughing when Chandani is our supervisor. She tells some great jokes.

Sam: I enjoy working here when Chandani is my supervisor. Chandani lets you know when you are doing a good job and helps you out when you fall behind or have problems. When Annie supervises, it seems like she ignores you unless she has a problem with your work and then you hear about it. My productivity is much higher when Chandani is my supervisor.

1.What is the source of the conflict between Annie and Chandani? Explain.

2. Identify the conflict handling style used by Annie and support your answer with evidence from the case.

3. Identify the conflict handling style used by Chandani and support your answer with evidence from the case.

4.According to Hershey and Blanchards Situational Leadership Theory which Leadership style is each supervisor following? Provide evidence from the case to support your answer.

5.According to Hershey and Blanchards Situational Leadership Theory which leadership style should be used with the clerks? Explain.

6. There are five sources or bases of power that have been reviewed this semester. Identify one source or base of power for each supervisor. Support your answer with evidence from the case.

7.According to the text, people will respond to power in one of three ways. How did the employees (or one employee) respond to each of Annies bases of power? Support your answer with evidence from the case.

8.According to the text, people will respond to power in one of three ways. How did the employees (or one employee) respond to each of Chandanis bases of power? Support your answer with evidence from the case.

9.As an OB consultant hired by manager Mary Marsh you have uncovered a need for change. Identify and describe one of the driving forces for change that occurred in the case.

10. Next, identify and describe one example of resistance to change on the part of Annie.

11. Finally, provide one suggestion of how Mary Marsh could reduce resistance to change on the part of Annie.