Chapter Cases_7.1 and 7.2 response

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Northouse, Leadership 8e SAGE Publications, 2019 Case 7.1: His Team Gets the Best Assignments Learning objectives:  Students should be able to determine what group is in the “in-group.”  Students should begin to appreciate how in-groups influence the motivation and effectiveness of other followers and teams. Read Case 7.1. Case Synopsis and Analysis Carly Peters directs the creative department of an advertising agency. Four leaders, Jack, Terri, Julie, and Sarah, report to Carly. Jack and his team excel at their work, are given extra resources and better assignments. Jack’s group is often selected to produce the best product for the agency. Terri’s team performs well, but Terri feels that Jack is in a favored group and given additional resources and better assignments. Julie also feels that her team is not in the inner circle and wishes that Carly valued her team’s work more. Sarah recognizes that her team is not as valued as Jack’s but seems satisfied with that because she does not want to work additional hours. This case study portrays a leader who clearly favors one group over others. The favoritism impacts motivation and may impede the overall productivity of the organization. Some students may argue that it is logical to favor Jack’s group since they regularly excel over the others. This could lead to an interesting discussion for the class. Answers to questions in the text: 1. Based on the principles of LMX theory, what observations would you make about Carly’s leadership at Mills, Smith, and Peters? In-group and Out-group Dynamics: Carly's leadership style seems to create distinct in-group and out-group dynamics among her direct reports. Jack and his team are clearly favored (in- group), receiving extra resources and better assignments, while Terri, Julie, and Sarah's teams feel neglected (out-group). Quality of Leader-Member Relationships: LMX theory emphasizes the quality of relationships between leaders and followers. Carly appears to have a high-quality relationship with Jack, as evidenced by the preferential treatment and trust placed in him and his team. In contrast, the relationships with Terri, Julie, and Sarah seem to be of lower quality, characterized by feelings of being undervalued and lacking support.

Northouse, Leadership 8e SAGE Publications, 2019 Impact on Motivation and Productivity: Favoritism in leadership can significantly impact motivation and productivity within the organization. Terri, Julie, and Sarah's teams may experience decreased motivation due to perceived unfairness and lack of recognition, potentially leading to lower performance and morale. Potential for Conflict and Resentment: The unequal treatment among teams can breed conflict and resentment among employees. Terri and Julie's feelings of being undervalued and excluded could escalate into interpersonal tensions within the creative department, hindering collaboration and teamwork. Leadership Effectiveness: Carly's leadership effectiveness may be compromised by the favoritism displayed towards Jack's team. While Jack's team may perform well in the short term, the long-term consequences of neglecting other teams could outweigh any immediate benefits. Effective leadership involves fostering positive relationships and equitable treatment among all team members to maximize overall organizational success. In summary, Carly's leadership at Mills, Smith, and Peters demonstrates clear favoritism towards one group, which can have detrimental effects on motivation, productivity, and overall team dynamics. Addressing these issues and striving for more equitable treatment among all teams is essential for fostering a positive work environment and maximizing organizational performance. 2. Is there an in-group and out-group, and, if so, which are they? Yes, based on the information provided in the case study, there is clear evidence of in-group and out-group dynamics among Carly Peters' direct reports at the advertising agency. The in-group consists of Jack and his team. They are the ones receiving extra resources and better assignments, and they are often selected to produce the best products for the agency. They enjoy preferential treatment from Carly, indicating a closer and more favorable relationship between Carly and Jack. The out-group comprises Terri, Julie, and Sarah, along with their respective teams. They feel marginalized compared to Jack's team, perceiving that they are not valued as highly and do not receive the same level of support or recognition from Carly. These in-group and out-group dynamics are indicative of the differential treatment and varying levels of favoritism that exist within Carly's leadership at Mills, Smith, and Peters. 3. In what way is Carly’s relationship with the four groups productive or counterproductive to the overall goals of the agency? Carly's relationship with the four groups within the agency can have both productive and counterproductive implications for the overall goals of the agency: Productive Aspects:

Northouse, Leadership 8e SAGE Publications, 2019 High Performance from Jack's Team: Carly's close relationship with Jack and his team may lead to high levels of performance from this group. They receive extra resources and better assignments, which can result in innovative and high-quality work. This productivity can contribute positively to the agency's reputation, client satisfaction, and ultimately, its success in the competitive advertising industry. Employee Satisfaction and Retention: If Carly's leadership style fosters a positive working environment and strong relationships with Jack's team, it could lead to higher levels of job satisfaction and employee retention within that group. Satisfied and motivated employees are more likely to stay with the agency, reducing turnover costs and maintaining continuity in project teams. Counterproductive Aspects: Demotivation and Reduced Performance from Other Teams: Favoritism towards Jack's team may result in demotivation and reduced performance from Terri, Julie, and Sarah's teams. Feeling undervalued and marginalized can lead to decreased morale, productivity, and engagement. This could ultimately impact the agency's ability to deliver high-quality work across all projects and meet client expectations. Potential for Interpersonal Conflict: Unequal treatment among the teams can create resentment and conflict within the creative department. Employees in Terri, Julie, and Sarah's teams may feel unfairly treated, leading to strained relationships, communication breakdowns, and decreased collaboration. This can impede teamwork and hinder the agency's ability to effectively execute projects and achieve its goals. Risk of Talent Drain: If employees in Terri, Julie, and Sarah's teams feel consistently undervalued and unsupported by Carly, they may become disengaged and seek opportunities elsewhere. This talent drain could result in the loss of valuable skills and expertise, negatively impacting the agency's ability to compete and innovate in the industry. In summary, while Carly's relationship with Jack's team may yield short-term productivity gains, the favoritism displayed towards this group can have detrimental effects on morale, performance, and team dynamics within the agency. Striving for more equitable treatment and fostering positive relationships with all teams is essential for maximizing overall productivity and achieving the agency's goals effectively. 4. Do you think Carly should change her approach toward the associate directors? If so, what should she do differently? Yes, Carly should consider changing her approach toward the associate directors to address the issues of favoritism and inequity within the creative department. Here are some potential steps she could take to improve her approach: Fair and Transparent Communication: Carly should strive to communicate openly and transparently with all associate directors, providing clear expectations, feedback, and

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Northouse, Leadership 8e SAGE Publications, 2019 opportunities for growth. This includes openly addressing any perceptions of favoritism and ensuring that all teams understand the rationale behind resource allocation and assignment decisions. Resource Allocation: Carly should review her approach to resource allocation and ensure that it is fair and equitable across all teams. This may involve implementing a more systematic and objective process for distributing resources and assignments based on team capabilities, workload, and project requirements. Recognition and Appreciation: Carly should make a concerted effort to recognize and appreciate the contributions of all associate directors and their teams. This includes celebrating achievements, providing regular feedback, and acknowledging the unique strengths and talents of each team. Leadership Development and Support: Carly should invest in the development and support of all associate directors, regardless of their perceived performance or favoritism. This may involve providing mentoring, training, and opportunities for advancement to help them grow and succeed in their roles. Addressing Perceptions of Favoritism: Carly should address perceptions of favoritism directly and proactively. This may involve having candid conversations with the associate directors about their concerns and working together to find solutions that promote fairness, collaboration, and trust within the creative department. By adopting a more inclusive and equitable approach toward the associate directors, Carly can foster a positive work environment, improve morale and motivation, and ultimately enhance the overall performance and success of the agency. 5. Outline what Carly can do to be an inclusive leader. What does she need to do to break the cycle of unfairness? Is that even possible in this case? List a few strategies she might implement to become are more fair leader, one who shares and rewards equally with all groups. To become a more inclusive leader and break the cycle of unfairness within the creative department, Carly can implement several strategies aimed at promoting equity, collaboration, and trust among all associate directors and their teams. While challenging, it is possible for Carly to shift her leadership approach towards fairness and inclusivity. Here are some strategies she might consider: Establish Clear Performance Criteria: Develop transparent criteria for evaluating performance and allocating resources. This ensures that decisions regarding promotions, bonuses, and project assignments are based on objective measures rather than subjective favoritism.

Northouse, Leadership 8e SAGE Publications, 2019 Rotate Opportunities: Rotate leadership opportunities, high-profile projects, and resources among all associate directors and their teams. This ensures that everyone has an equal chance to showcase their abilities and contribute to the agency's success. Encourage Open Dialogue: Foster an environment of open communication and feedback where all associate directors feel comfortable expressing their concerns and ideas. Actively listen to their perspectives and address any issues of unfairness or inequity that arise. Provide Development Opportunities: Offer professional development opportunities, training programs, and mentorship initiatives to support the growth and advancement of all associate directors. This helps to level the playing field and ensure that everyone has access to the resources they need to succeed. Promote Collaboration: Encourage collaboration and teamwork across different teams and departments within the agency. Create opportunities for cross-functional projects and knowledge sharing to break down silos and promote a culture of inclusivity and collaboration. Lead by Example: Model inclusive behaviors and values in your own actions as a leader. Demonstrate fairness, empathy, and respect in your interactions with all team members, and hold yourself accountable for creating a positive and equitable work environment. Regularly Review and Adjust: Continuously monitor the organization's practices and policies to identify any instances of bias or unfairness. Take proactive steps to address these issues and make adjustments as needed to promote fairness and inclusivity. While it may be challenging to completely eliminate all instances of unfairness, by implementing these strategies, Carly can work towards becoming a more fair and inclusive leader who shares and rewards equally with all groups. It requires a commitment to ongoing self-reflection, learning, and improvement, but it is indeed possible to create a more equitable and inclusive work environment within the agency.

Northouse, Leadership 8e SAGE Publications, 2019 Case 7.2: Working Hard at Being Fair Learning objectives:  Students should be able to determine what leadership-making phase a person is in under the LMX model (Graen and Uhl-Bien’s model).  Students should begin to understand the importance of not having an “out-group” and the difficulty of creating cohesion in a large group. Read Case 7.2 Case Synopsis and Analysis Jenny Hernandez is the production manager at a mid-size mortgage company. Salespeople, closing officers, underwriters, and other personnel report to Jenny. The company culture is positive, and employees generally respect each despite their varying pay. Jenny’s leadership style is relationship oriented. She is fair and kind and works to build a team-like environment at work. She has an open-door policy and is committed to her work and the people at her company. She does not exclude people or play favorites and works to help others understand the pay differentials. This case study portrays a strong relationship-oriented leader who is effective at work. She builds up all of her followers and does not have an “out-group.” Answers to questions in the text: 1. Based on the LMX model, how would you describe Jenny’s leadership? Based on the Leader-Member Exchange (LMX) model, Jenny's leadership can be described as high-quality leader-member exchanges. The LMX model proposes that leaders develop unique relationships with each of their followers, categorized as either "in-group" or "out- group" members. In-group members have higher-quality relationships with the leader, characterized by trust, mutual respect, and support, while out-group members have more formal, transactional relationships.

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Northouse, Leadership 8e SAGE Publications, 2019 In Jenny's case, she exhibits behaviors consistent with building high-quality exchanges with all her followers. She maintains an open-door policy, treats everyone fairly, and does not play favorites. This approach suggests that she fosters positive relationships with all employees, rather than creating an "out-group" of individuals who receive less attention or support. Instead, Jenny works to ensure that all employees feel valued and included, indicating a strong relationship-oriented leadership style. 2. How do you think the employees at City Mortgage respond to Jenny? Based on the information provided, it's likely that the employees at City Mortgage respond positively to Jenny. Her relationship-oriented leadership style, characterized by fairness, kindness, and a commitment to building a team-like environment, suggests that she values and respects her employees. Employees are likely to appreciate her open-door policy, which allows for open communication and feedback. Additionally, her efforts to help others understand the pay differentials demonstrate transparency and a willingness to address potential concerns or misunderstandings. Overall, employees probably feel supported, valued, and included under Jenny's leadership. They may be motivated to work hard and contribute to the company's success due to the positive work environment she fosters. 3. If you were asked to follow in Jenny’s footsteps, do you think you could or would want to manage City Mortgage with a similar style? There are several reasons I might consider it a viable and desirable approach: Effective Leadership Style: Jenny's relationship-oriented leadership style has proven to be effective in fostering a positive work environment and building strong team cohesion. By treating employees with fairness, kindness, and respect, she has likely gained their trust and loyalty, which can contribute to increased productivity and job satisfaction. Alignment with Personal Values: Managing with a relationship-oriented approach aligns with personal values of fairness, empathy, and collaboration. For individuals who value creating supportive and inclusive work environments, this leadership style can be fulfilling and rewarding. Enhanced Employee Engagement: By prioritizing relationships and open communication, a leader can promote higher levels of employee engagement and commitment. Employees who feel valued and respected are more likely to be motivated and dedicated to their work, which can positively impact overall organizational performance. Building a Strong Team Culture: Jenny's approach focuses on building a team-like environment where employees work together towards common goals. This can foster a sense

Northouse, Leadership 8e SAGE Publications, 2019 of camaraderie and unity among team members, leading to improved teamwork and collaboration. Long-Term Organizational Success: Investing in positive relationships with employees can contribute to long-term organizational success. By cultivating a supportive and inclusive culture, leaders can attract and retain top talent, promote innovation, and adapt more effectively to changes in the business environment. Overall, managing City Mortgage with a similar relationship-oriented style as Jenny could be appealing for individuals who prioritize creating a positive work environment, building strong team dynamics, and achieving sustainable organizational success in which I am in favor of. 4. Jenny is a strong and effective leader. Despite having a close friend as subordinate, she does not play favorites. This is a hard, tall task. Indeed, leaders naturally will find some subordinates more likeable and/or effective than others. Given that, how can a leader be truly fair? Write a list of 10 or more ways a leader can ensure fairness and prevent “out-groups.” You can use the case study and Graen and Uhl-Bien’s model as a starting point to gather ideas for their lists. 1. Consistent Treatment : Ensure that all employees are treated consistently and fairly, regardless of personal preferences or relationships. 2. Transparent Communication : Communicate openly and transparently about decisions, policies, and procedures to avoid perceptions of favoritism or bias. 3. Equal Opportunities : Provide equal opportunities for professional development, advancement, and recognition based on merit rather than personal relationships. 4. Merit-Based Rewards : Implement performance evaluation systems that are objective and based on measurable criteria, rather than subjective judgments or personal biases. 5. Inclusive Decision-Making : Involve all team members in decision-making processes whenever possible to promote inclusivity and prevent the exclusion of certain individuals. 6. Conflict Resolution : Address conflicts or disagreements among team members promptly and impartially, ensuring that resolutions are fair and equitable for all parties involved. 7. Fair Resource Allocation : Allocate resources, such as time, budget, and responsibilities, fairly among team members to prevent perceptions of favoritism or unfair treatment.

Northouse, Leadership 8e SAGE Publications, 2019 8. Regular Feedback : Provide regular feedback and coaching to all employees, focusing on areas for improvement and development opportunities equally. 9. Open-Door Policy : Maintain an open-door policy where employees feel comfortable expressing concerns or grievances without fear of retaliation or discrimination. 10. Training and Development : Invest in training and development programs that help all employees enhance their skills and competencies, promoting a level playing field for career advancement. 11. Role Clarity : Clearly define roles, responsibilities, and expectations for each team member to prevent confusion or misunderstandings that could lead to feelings of exclusion. 12. Recognition of Diversity : Recognize and celebrate the diversity of perspectives, backgrounds, and experiences within the team, fostering an inclusive and supportive environment for all members. By implementing these strategies, leaders can promote fairness, inclusivity, and collaboration within their teams, minimizing the formation of "out-groups" and maximizing the potential for success.

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Chapter Cases_7.1 and 7.2 response

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