You are a manufacturing manager in a large electronics plant. The company's management it always searching for ways to increase efficiency. They recently installed new machines and set up a new simplified work system, but to the surprise of everyone--including you-the expected increase in production was not realized. In fact, production has begun to drop, quality has fallen off, and the number of employee resignations has risen.

You do not think that there is anything wrong with the machines. You have had reports from other companies that are using them, and they confirm your opinion. You have also had representatives from the firm that built the machines go over them, and they report that the machines are operating at peak efficiency.

You know that some aspect of the new work system must be responsible for the change, but you are getting no help from your immediate team members -four first-line supervisors who report to you and who are each in charge of a section - or your supply manager. The drop in production has been variously attributed to poor training of the operators, lack of an adequate system of financial incentives, and poor morale. All of the individuals involved have deep feelings about this issue. Your team does not agree with you or with one another.

This morning you received a phone call from your division manager. He had just received your production figures for the past six months and was calling to express his concern. He indicated that the problem was yours to solve in any way that you think best, but that he would like to know within a week what steps you plan to take.

You share your division manager's concern with the falling productivity and know that your employees are also concerned. Using your knowledge of leadership concepts, which leadership style would you choose? Why?