Terry is rather proud of himself; with your help, he has clearly defined the organisational goals, established plans to achieve them and structured the organisation to facilitate achieving these goals effectively and efficiently. Terry is especially pleased that his environmental commitment and efforts has a meaningful purpose which will benefit everyone in the community. His commitment is driven by his strong belief that the environment needs to be protected and respected. Working toward attaining the environmental goals gives him great satisfaction and sense of achievement. Now, Terry has to ensure that employees are committed to achieving these goals.

Although Terry is passionate and enthusiastic in winning the Green Star Accommodation Award, he knows that the success in achieving this award lies in the hands of the employees as it is a team effort. However, there seems to be a dispute between the Front Office & Rooms Department Manager; Priya Shah and the Housekeeping Supervisor; Sally Liew. Both the Department and Line Managers have different approaches to managing their respective teams.

Sally wants to set an ideal vision for Lizard Beach resort by inspiring her housekeeping team members to be passionate and committed to the new environmental strategy. She keeps insisting that managers and supervisors should initiate creative and imaginative ways of managing their teams in order to increase guest satisfaction rates. She believes that employees who are empowered and happy will want to remain committed to the resort and its values of satisfying guests. Her team members seem to be naturally dedicated and committed to the goals that she sets as she is often seen having lengthy team meetings where everyone's concerns are heard and responded to.

Similarly, Priya has also been successful in accomplishing goals; however her approach is vastly different to Sally's. She considers Sally's team meetings a waste of time and is more inclined to delegate tasks to the Supervisors that report to her. She is repeatedly heard saying "We know what the aim is, so let's just get things done quickly so that we can meet this month's target of guest satisfaction". Although she is a hardworking and dedicated department manager, the supervisors that report to her seem to fear her as she has no patience for staff members who disagree with her ideas or who venture outside of their work roles. She is known for rewarding compliant supervisors with offering them their most preferred shifts (day shift, weekends, public holidays) and assigning the least preferred shifts (night shift, graveyard shift) to those are considered less 'obedient' to the rules that she administers in her division.

Terry values both Sally and Priya as they are both productive managers but he knows that the differing management approaches will eventually create conflict. He has considering using his "CEO" title to resolve the issues between the two managers but he is very doubtful that his title will have any effect. He believes that hiring an external consultant with years of experience and knowledge on collaborative solutions will have more of a positive impact.

**The End**

1.Explain whether you think Terry is motivated by intrinsic or extrinsic rewards? Why is it important for Lizard Beach for Terry to motivate people?

2.How can the division between Sally and Priya be understood through leadership vs. management theory?

3.Which sources of power were exhibited in the case by the following people:

Sally

Priya

Terry

Consultant

4.Using your understanding of leadership behaviours (University of Iowa) when is each of the different styles appropriate to adopt?

5.If Terry was considering using employee groups as a means to encourage more teamwork, what are the stages of group development?