IOP4862
Assignment 6 2024
(783461)- DUE 25
October 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
,IOP4862 Assignment 6 2024 (783461)- DUE 25 October 2024
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. 2
, 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 1.1: Identifying the Leadership Theory
The modern leadership theory applied by Martin Sithole is the Transactional Leadership
Theory.
Explanation of Transactional Leadership Theory:
Transactional leadership is focused on a system of rewards and punishments based on
performance outcomes. Leaders in this style ensure compliance by focusing on set tasks, rules,
and standards, offering rewards for achieving goals and consequences for failure. This theory
assumes that subordinates work best when there are clear goals, expectations, and reward
structures in place.
In Martin’s case, he demonstrated transactional leadership by focusing on maintaining control
over the merger process and dictating his vision to his team. He developed his subordinates in
standard operating procedures but did not incorporate their suggestions, reflecting a strong focus
on task accomplishment with minimal emphasis on their input or creativity.
Question 1.2: Ethical and Unethical Characteristics of Transactional Leadership
Ethical Characteristics:
Assignment 6 2024
(783461)- DUE 25
October 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
,IOP4862 Assignment 6 2024 (783461)- DUE 25 October 2024
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. 2
, 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 1.1: Identifying the Leadership Theory
The modern leadership theory applied by Martin Sithole is the Transactional Leadership
Theory.
Explanation of Transactional Leadership Theory:
Transactional leadership is focused on a system of rewards and punishments based on
performance outcomes. Leaders in this style ensure compliance by focusing on set tasks, rules,
and standards, offering rewards for achieving goals and consequences for failure. This theory
assumes that subordinates work best when there are clear goals, expectations, and reward
structures in place.
In Martin’s case, he demonstrated transactional leadership by focusing on maintaining control
over the merger process and dictating his vision to his team. He developed his subordinates in
standard operating procedures but did not incorporate their suggestions, reflecting a strong focus
on task accomplishment with minimal emphasis on their input or creativity.
Question 1.2: Ethical and Unethical Characteristics of Transactional Leadership
Ethical Characteristics:
