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IOP4862 Assignment 6 (Detailed Answers) Semester 2 Due 25 October 2024

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CASE STUDY: THE BANKING COMPANY (Please note that the case study is not a real company situation.) Martin Sithole was promoted after 10 years of service in various leadership positions to an executive position at ABC Bank. His promotion was, amongst other factors, due to his strong confidence and the impact he had on subordinates to perform and exceed targets in the division he was responsible for. Martin is very loyal to the company but is also well known in the industry for several business mergers and acquisitions he was involved in. In his new role, the chief executive officer (CEO) requested Martin to start the process to merge with another bank and include his team in the planning thereof. Martin developed his subordinates in the standard operating procedures associated with a merger. However, he dictated his vision of the merger from a self-interest perspective and did not consider any suggestions from his subordinates. Considering the upcoming merger, the executive board of ABC Bank requested the Human Resources Wellness Division to design organisational coping strategies to eliminate or control organisational-level stressors to prevent and reduce job stress for individual employees. A new employee joined Martin’s team using a wheelchair, which created discomfort for some of the team members as they were not clear on how to interact with the differently abled colleague. They approached Martin for assistance in this matter. Martin approached the Human Resource Training Division for ideas on addressing the situation. In addition, there were complaints that input from female subordinates was not valued in weekly meetings, which Martin also had to address to manage team diversity. Question 1 1.1 Identify which modern leadership theory was applied by Martin Sithole and explain in your own words what this leadership theory entails. (5) 1.2 Discuss ethical and unethical characteristics of the identified leadership theory and integrate examples from the case study in your discussion. (10) [15] Question 2 You are a consultant contracted to assist Martin Sithole with the organisation’s re-design as part of the merger. Advise

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IOP4862

Assignment 6

Semester 2

Due 25 October 2024

, Question 1
1.1
Martin Sithole applied the transformational leadership theory. This leadership theory
is focused on inspiring and motivating subordinates to exceed expectations through the
leader's vision and passion. Transformational leaders work to change and improve the
organization by encouraging innovation and creativity. They focus on developing and
empowering their team members, instilling a sense of purpose, and aiming for long-term
success.
In the case study, Martin's confidence, success in mergers, and his ability to drive his
subordinates to exceed targets show characteristics of transformational leadership. His
focus on setting a strong vision for the merger, albeit from a self-interest perspective, is
also aligned with the visionary component of transformational leadership.


1.2
Ethical Characteristics of Transformational Leadership:
1. Empowerment of Subordinates: Ethical transformational leaders encourage their
employees to grow and develop. In the case study, Martin trained his subordinates in
the standard operating procedures for mergers, which reflects an attempt to equip
them with relevant knowledge.
2. Inspirational Motivation: Ethical leaders inspire confidence, commitment, and
enthusiasm. Martin's strong confidence and his past success in mergers are
examples of how he inspired his team to exceed targets. Inspirational motivation
drives employees to contribute more effectively to organizational goals.
Unethical Characteristics of Transformational Leadership:
1. Self-Interest: Unethical transformational leaders may prioritize their own goals over
the needs of their employees. In this case, Martin dictated his vision for the merger
from a self-interest perspective without considering input from his subordinates. This
shows that he placed his personal objectives above the team’s or organization’s
collective interests.
2. Lack of Inclusivity: Martin failed to incorporate his team’s ideas in the planning
process, which points to a disregard for diversity in thought and contribution. The
complaints about the lack of value given to female subordinates’ input reflect a
failure to foster an inclusive environment.

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