When Rashdi was hired as production head, the OneBerjaya Corporation was having losses for five years consecutively. Rashdi spent the first few months examining the situation and identifying the major problem areas. Then, he made a series of critical decisions. He terminated twenty percent (20%) of the production staff and reorganized the company. He believed the ones retained would be able to make up for the loss of production brought about by the work-force reduction. The groups were divided into two - one group was given a twenty-two percent (22%) raise and the other group was given a fourteen percent (14%) raise. These raises were designed to bring these people's pay to be in line with the current market pay rate. The initial reaction to Rashdi's decisions to raise pay was hard to gauge. Some people seemed surprised; others appeared to be pleased. However, there were very little open discussions. Over a period of six months, things began to change dramatically. Productivity increased, profits were high and employee turnover, which used to be a problem, has reduced. The employees seem to like Rashdi's style. He walks around the production area talking to people, encouraging them, listening to their concerns and solves employees problem. Although deadlines are tight, Rashdi explained the reasons for them and there appear to be agreement among the staff that these deadlines can be met. Rashdi continuously motivates and inspires his staff. Moreover, his staff's welfare and well-being are his major concerns. Rashdi is regarded as a well-respected leader.

QUESTION 1

Explain the types of power exhibited by Rashdi.

(5 marks)

QUESTION 2

Explain how Rashdi went about in gaining power from his staff.

(5 marks)

QUESTION 5

Based on your understanding of the case, what leadership style or styles is/are portrayed by Rashdi based on the Path-goal model of leadership? Do you think Rashdi is a transformational leader? Justify your answers

(10 marks)