Case Study: Starr Diamond LLC, Josh Breitt, Rachel Starr

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Analyze three case studies involving management and organizational behavior. The first involves Breitt, Starr & Diamond LLC, where the partners hire a new general manager who exhibits certain leadership behaviors, leading to employee dissatisfaction. The second discusses EatWell Technologies' strategic decisions about product diversification and the resistance to change encountered. The third describes the expansion plans of the Grizzly Bear Lodge and how different control mechanisms can be used to ensure guest satisfaction. For each case, identify relevant management theories, evaluate leadership styles and organizational behavior, and discuss strategies for effective management and change implementation.

Paper For Above instruction

The management challenges depicted across these three case studies highlight various aspects of organizational behavior, leadership, strategic management, and control systems. Analyzing each case provides insights into how management theories and leadership styles influence organizational effectiveness, employee satisfaction, and strategic direction. This paper discusses these cases in depth, focusing on leader behaviors, resistance to change, and control mechanisms, supported by relevant management theories.

Case 1: Leadership Behavior of Brad Howser and Its Impact

The first case revolves around the appointment of Brad Howser as the general manager of operations at Breitt, Starr & Diamond LLC, a burgeoning advertising agency. Howser's leadership approach is characterized primarily by authoritative, control-oriented behaviors that significantly influence staff morale and turnover. His insistence on strict punctuality, rigid supply purchasing procedures, and mandatory weekly staff meetings exemplify a directive leadership style, which aligns with the classical theory of leadership, notably the Taylorist or authoritarian approach. According to Lewin’s leadership style framework (Lewin, Lippitt, & White, 1939), such an authoritarian style can produce short-term productivity gains but often leads to decreased employee satisfaction and increased turnover, as evidenced by the resignation of several key employees from the agency.

Furthermore, Howser's behavior reflects a transactional leadership style, where compliance is motivated by rewards and punishments. His demanding schedule and unyielding stance on flexible working hours conflict with employees' personal needs—detracting from psychological safety and intrinsic motivation. Goleman’s (2000) emotional intelligence framework emphasizes the importance of empathetic leadership, which Howser clearly lacks, thus contributing to a toxic work environment.

In the context of an ad agency, a creative and flexible environment, such rigid management behaviors are counterproductive. The agency needs leaders who can foster innovation, motivate staff, and adapt to dynamic client needs. Transformational leadership theories (Bass & Avolio, 1994), emphasizing inspiration, intellectual stimulation, and individual consideration, would be more appropriate. Howser's failure to engage employees spiritually and emotionally resulted in high attrition, indicating a poor fit with the agency’s organizational culture, which thrived on creativity and teamwork.

Ideal Leadership Style for the General Manager Position

Given the role’s complexity and the creative nature of the agency, an adaptive, participative leadership style would be most effective. Transformational leadership fosters higher performance by inspiring employees to align their personal goals with organizational objectives (Bass & Riggio, 2006). Such a style promotes collaboration, innovation, and commitment, essential qualities in a rapidly growing creative firm. Leaders employing this approach emphasize communication, empathy, and empowerment, which can improve morale and reduce turnover (Avolio & Bass, 2004).

Additionally, employing a servant leadership style (Greenleaf, 1977) might suit the organization’s culture, emphasizing the leader’s role as a facilitator and supporter of employee growth. This leadership style enhances trust, team cohesion, and job satisfaction, directly contributing to organizational resilience and adaptability in a competitive environment.

Case 2: Resistance to Change and Strategic Direction

The second case presents a startup, EatWell Technologies, founded on social entrepreneurship principles but facing strategic disagreements among partners. Cristina Muñoz and Pete Prakash are passionate about using biotechnology to improve nutrition, but the entrance of Bill Jensen introduces a different strategic perspective, emphasizing branding and diversification into urban markets and new food products.

Resistance to change here is evident in the tension between adhering to their original mission—focusing on developing nutrient-rich crops for developing countries—and considering diversification to high-margin urban products. The initial resistance is rooted in values and mission alignment, with Cristina and Pete hesitant about shifting away from their social mission to pursue profitability through branded products, which could dilute their primary purpose.

This resistance exemplifies Lewin’s (1951) Unfreezing-Change-Refreezing model, where the initial "unfreezing" phase involves challenging entrenched beliefs. The disagreement suggests the unfreezing phase is incomplete; their shared vision is challenged by the new strategic viewpoint. Cognitive resistance may also be involved, as the partners’ identities are tied to their social mission with biotechnology, and a shift toward commercial branding represents a change in organizational identity.

Moreover, the case involves elements of conflict management and organizational change theory. Strategies such as participative decision-making and open dialogue, supported by Kotter’s (1996) eight-step model for leading change, could help resolve these tensions. Engaging all stakeholders, clarifying shared vision, and creating a coalition for change would facilitate strategic alignment, ensuring that growth strategies complement their social objectives rather than threaten them.

Strategies for Managing Resistance to Change

To address resistance, Pete and Cristina should apply Lewin’s model by actively involving all team members in strategic planning, communicating the benefits of diversification, and aligning new goals with their core mission. Organizational culture assessments and commitment to shared values can ease the transition, fostering ownership and reducing resistance (Schein, 2010). Involving Bill as a partner demonstrates a collaborative approach that can build trust and facilitate consensus-building, crucial for organizational change in startups pursuing innovative goals.

Case 3: Control Mechanisms and Future Expansion

The final case discusses the plans for expansion at the Grizzly Bear Lodge, with emphasis on controlling operations to ensure quality and guest satisfaction. Diane and Rudy intend to use a combination of feedforward, concurrent, and feedback controls to manage growth effectively.

Feedforward control involves proactive measures during planning phases, such as assessing market demand and resource availability before expansion. Concurrent control monitors ongoing operations, such as guest feedback during their stay, staff performance, and service delivery, enabling immediate correction if necessary. Feedback control involves evaluating overall performance post-expansion, including profit margins, customer reviews, and employee satisfaction surveys, to guide future adjustments.

Implementing these controls ensures that quality remains high and guest satisfaction is maintained over the long term. For example, Diane and Rudy could establish standards for customer service (feedforward), conduct regular staff training and real-time guest surveys (concurrent), and analyze guest reviews and financial performance quarterly (feedback). These control mechanisms balance planning, monitoring, and evaluation, aligning with Argyris and Schön’s (1978) model of organizational learning.

In the future, advanced technological tools like guest management systems and data analytics can enhance these control systems, providing real-time insights that facilitate swift responses to service issues and strategic adjustments. This systematic approach to controls supports sustainable growth while preserving the lodge’s hallmark personal touch, ultimately ensuring guest loyalty and competitive advantage.

Conclusion

The three cases collectively demonstrate the importance of appropriate leadership styles, managing resistance to change, and effective control mechanisms in achieving organizational goals. The leadership approach should match organizational culture and context; transformational and servant leadership styles are generally more suitable in creative and service-oriented settings. Recognizing and addressing resistance to change requires strategic communication and stakeholder engagement. Employing comprehensive control systems, including feedforward, concurrent, and feedback controls, enables organizations to manage growth effectively and sustain high levels of customer satisfaction. These insights reinforce the critical role of adaptive management practices in dynamic business environments.

References

• Argyris, C., & Schön, D. A. (1978). Organizational Learning: A Theory of Action Perspective. Addison-Wesley.
• Avolio, B. J., & Bass, B. M. (2004). Multifactor Leadership Questionnaire Manual. Mind Garden.
• Bass, B. M., & Avolio, B. J. (1994). Improving Organizational Effectiveness through Transformational Leadership. Sage.
• Bass, B. M., & Riggio, R. E. (2006). Transformational Leadership. Mahwah, NJ: Erlbaum.
• Greenleaf, R. K. (1977). Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness. Paulist Press.
• Goleman, D. (2000). Leadership that gets results. Harvard Business Review, 78(2), 78-90.
• Kotter, J. P. (1996). Leading Change. Harvard Business School Press.
• Lewin, K. (1951). Field Theory in Social Science. Harper & Brothers.
• Lewin, K., Lippitt, R., & White, R. K. (1939). Patterns of aggressive behavior in child: A study of the interplay of culture and personality. Archives of Psychology, 21(103), 1-75.
• Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). Jossey-Bass.