RUNNING HEAD: CAPSTONE 1

Capstone: Leadership and the Future

Ron McGary

Lewis University

ORGL: 59500 LT1-FA16 Capstone: Leadership and Future

Dr. Michael Cherry

CAPSTONE 2

SECTION I

Introduction and Summary

GadgetCo is a family-owned large manufacturing company with over five-hundred

employees located in the southwest suburbs of Chicago. They produce electric motors that run

devices from computers to motorized scooters (Lewis University, 2016). Electric motor

production is vital to the company’s overall success. Safety is taken into consideration when

manufacturing these electric motors since they will be used by the public. The customer is placed

at the top of the list when it comes to safety. GadgetCo’s vision and mission is “to create motors

fast enough to meet the demands of their fast-paced customers” (Lewis University, 2016). There

are dilemmas that have a direct conflict with Drew, the Vice-President of Product Development,

he needs to inform upper-management that there may a delay in shipping their new product to a

customer overseas. This will be difficult to convey since this product alone is relied on to support

their company during the 2008 financial crisis.

The 2008 global financial crisis has a direct impact on businesses around the world. The

capital markets in the United States are drowning in debt, and the emergence of the Lehman

Brothers collapse has devastated the domestic economy (Kaya, A., & Herrera, G., 2015). This

drastic financial effect which caused a recession around the World made many managers and

decision makers strategically refine their organizations. It was the lack of work ethic and social

responsibility of upper management that caused such a catastrophe (Levi, 2014). Consequently,

organizations now require their mission and values to change or their company will fail during

this crisis (Nahavandi, 2013). GadgetCo is one of those family-owned businesses that will fail if

they do not change the way the organization is operating.

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Jane is part of the management trainee program at GadgetCo. She had recently joined the

program after five years of good service to the company. Over the last five years she has been

mentored by Drew, and feels as though she is ready to take on added responsibility. Jane is even

more eager now than ever before because they are about to launch a new electric motor that will

help the company pull out of a financially troubling economy. After testing, Jane realizes there

may be something wrong with the electric motor. GadgetCo’s individualistic culture has given

her second thoughts on how to approach her immediate supervisor, Jessie the Director of the

organization. Jane decides to tell her mentor, Drew about the potential failure. Now, it is up to

Drew to inform upper-management about the potential failure of this new electric motor, which

could put GadgetCo in financial ruin.

Family owned businesses are very unique to the United States economy. “Family businesses

are critical to the foundation of our economy. Over sixty-percent of all businesses in the United

States are family owned. In addition, family owned business are significant contributors to the

communities they do business in” (Admin, 2016). There are over five million family owned

businesses in the United States (McGee, 2013). According to Admin, family-owned businesses

create over sixty-percent of jobs within the United States (Admin, 2016). Family Business

Alliance is reporting eighty to ninety percent of all enterprises make-up our economy (Facts and

Figures, 2016). Family owned businesses are essential to the United States economy.

A family owned business is different than most conventional businesses. To emphasize, a

family owned business is defined as the family has considerable control over financial and

managerial areas of the company (Cromie, Stephenson, & Monteith, 1995). Family firm’s have

the tendency to have decision making on a more local level. In addition, some family members

are not supposed to seek the influence or advice from anyone outside of the company (Cromie,

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Stephenson, & Monteith, 1995). GadgetCo will need to reach across the globe in order to survive

in a very competitive global environment. Nevertheless, they will keep leadership at the family

level which, will not push GadgetCo into the mix of global competition. GadgetCo will need to

use leadership theories, concepts, and principles to change their organizational culture to

compete on a global scale. Five of those principles discussed are models of organizational

culture, Borisoff and Victor Five Part Conflict Management Model, transformational leadership,

servant leadership, and mentoring.

Models of Organizational Culture

A model culture is one which serves others (Greenleaf, 2005). It is important to point out

trends in organizational development in today’s global economy. The relevance of cultural

understanding and having the ability to recognize the impact of cultural change is very

important. Leadership must change with culture to prevent organizational failures (Schein,

2010). GadgetCo does have a culture but it is an egalitarian culture (Nahavandi, 2013). Team

work is promoted only when there is an extreme crisis to get a product shipped to a customer.

The culture is all about rewarding the individual which creates conflict within the organization.

Borisoff and Victor Five Part Conflict Management Model

Conflict arises when two or more people disagree with each other because of culture, values

or some kind of incompatibility (Borisoff & Victor, 1998). Conflict is an action in which it

interferes or obstructs with others in their beliefs whether it be religion or some other activity

that prevents an individual to perform their own action (Borisoff & Victor, 1998). In a

manufacturing environment, it is quite distinctive when an individual reward system is present,

because everyone has a competitive barrier toward each other. An egalitarian culture, like

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GadgetCo, is very similar to an individual reward system. This culture does not promote

communication easily. Jane will use this five part conflict model to help break down the

communication barriers between her and Jessie. Jane manages this situation with a unique

professional manner, a manner in which others can learn and use across the manufacturing plant.

Transformational Leadership

Transformational leadership is greatly attributed to organizational effectiveness (Brown, &

May, 2012). Organizations across a wide variety of industries report a strong positive

relationship between the presence of transformational leadership, performance, and other

organizational outcomes (Brown, & May, 2012). In particular, Drew will need to use his

transformational leadership skill-set to help change the culture of GadgetCo. Jane and Jessie will

help but only after they have broken down the barriers that separate them.

Servant Leadership

Servant leaders can be developed over time (Greenleaf, 2005). Although servant leadership is

grown from within the core leadership of the individual, these characteristics can be developed

over time. Servant-leadership, therefore, emphasizes core personal characteristics and beliefs

over any specific leadership techniques (Greenleaf, 2005). Under the mentoring of Drew, Jessie

will need to develop the characteristics of a servant leader to help drive GadgetCo into the global

market; contrast to the leadership style Jessie has been practicing over the years. He will need to

serve the employees so they can feel wanted and valued. “The leadership process is spiritual,

highly emotional and personal, and based on fundamental values such as integrity, caring, and

service to others” (Nahavandi, 2013, p.193). To emphasize, Jessie will need to develop into a

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servant leader over time. In addition, Jessie will need to work with Drew to emulate his servant

leadership qualities.

Mentoring

Mentoring provides many key professional connections to career success (Nahavandi, 2013).

Mentoring is a powerful leader development tool, and in most circumstances will lead to a life-

long supportive relationship between the mentor and the mentee. Jane has been mentored by

Drew for several years now, and she is ready to take on additional responsibility with

GadgetCo’s new product. In addition, Jessie will need to learn the positive effects of mentoring

within an organization from Drew as well.

SECTION II – ESSAY RESPONSE AND LITERATURE REVIEW

Ethical Dilemmas

An ethical dilemma is about crossing our moral beliefs and potentially violating our own

culture. “The study of ethics is about what we should do and what we should be” (Ciulla, 2003

p. xi,). Ethics is the understanding of leadership and how it relates to our daily lives, whether it

be at work or outside of work (Ciulla, 2003).

What are the ethical dilemmas conveyed in this case?

GadgetCo has several ethical dilemmas that will prevent them from a much needed

organizational change. For example, Jane needs to break down her communication barrier to

Jessie. Jane should not feel afraid toward her first line manager, Jessie; even though GadgetCo

has a communication policy that promotes speaking with the immediate supervisor, Jane feels as

if this culture does not support the policy (Lewis University, 2016). Consequently, organizations

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have serious leadership issues when employees inform their managers of simple truths and doing

what is morally right; such as, the disclosure of potential defects that will cause employees to get

fired or not promoted (Wren, 1995). The same goes with Drew as he contemplates a strategic

decision to communicate the testing failures to his boss. Drew and Jane will need to embark on

communication practices, such as intellectual stimulation, which is part of transformational

leadership to help break-down the barriers between Jane and Jessie (Nahavandi, 2013).

The baseline of ethical dilemmas is culture (Schein, 2010). Jessie is protecting his culture

within GadgetCo, because he thinks he is doing what is right. In essence, GadgetCo is a

multicultural organization which does not empower their leadership (Schein, 2010). The main

problem with multicultural organizations is there are so many assumptions and beliefs within the

organization the employees think that they are right and everyone else is wrong, and so the

conflict begins (Schein, 2010).

The impact of this leadership scenario is GadgetCo will not build a well unified organization

to support team work. This will lead into a continuous breakdown in the communication process.

Being a five-hundred employee operation, GadgetCo needs to encourage their own

communication policies to sustain in a competitive global market.

Organizational Culture

The 21st century leader must be proactive in solving problems (Wren, 1995). Leaders must

recognize their own cultural climate to solve these problems. An organization must be a learning

culture to recognize their cultural surroundings. Looking ahead into the 21st century companies

will need strong cultures to build pathways to excellence. Studying and learning about

leadership is variable, which means leadership is always changing (Gogheri, Nawaser, Vesal,

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Jahanshahi, & Kazi, 2013). Some aspects of 20th century leadership are applicable to the 21st

century, but not all. As trending culture changes over time leadership styles will also change. The

ability to recognize cultural change, developing learning cultures, and the ability to proactively

solve complex problems are the trends of organizational culture.

How would you describe the current culture at GadgetCo?

Being a family-owned business GadgetCo is a very strong, assertive, and committed

organization. A strong culture increases the commitment to the organization and increases the

mutual relationship between employees’ goals and organizational objectives. This is an

important factor for increasing productivity and the level of overall performance. The strong

values of organizational culture will affect performance and productivity. The employee’s

cultural commitment to the organization cannot be so severe that it prevents the development of

new cultural environments and therefore the organization will not be able to change its

behavioral methods as the environment changes (Schein, 2010). GadgetCo’s environment did

effectually change when they decided to go global. This has limited the employee’s environment

for learning, and if they cannot learn from their own surroundings, then the culture will not

change (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013).

Being competitive in the global environment requires team work (Levi, 2014). GadgetCo has

individuals working toward a common goal, but have no smooth internal processes to work

effectively and efficiently. The work ethic of GadgetCo is all about performance, and the words

that are often heard is “all hands on deck” when they are trying to get a product shipped on time

to a customer. This type of attitude toward work is not about team work, but rather it is about

performance based culture will cause conflict among the employees, because the employees are

not working together, they are working against each other.

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Models of Organizational Culture Theories and Principles

On a global scale interaction with other cultures is becoming more critical (Hines, 2008).

“We basically do not know what the world of tomorrow will really be like, except that it will be

really different, more complex, more fast-paced, and more culturally diverse” (Schein, 2010

p.365). If organizations are to change with culture, then we must learn the new culture and adapt

to it in order to survive in a global environment (Schein, 2010).

Cultural knowledge and behaviors are transmitted from generation to generation, and

improved ideas and practices replace those that are less effective (Kim, Jeon, & Park, 2014).

Leaders must be able to recognize changes within their own culture. For example, if there is a

decline in sales and growth within an organization the proactive thinker must take appropriate

action to lead the company into a new direction to prevent failure. The global economy impacts

our culture by what is called the “cultural flow” (Hines, 2008).

Expectations from culture flow is being innovative with new products and services distributed

from practically every corner of the planet. Innovation is a learning culture that organizations

will need to promote growth and stability. A learning culture consists of a community of workers

instilled with a "growth mindset” (Grossman, 2015). People want to apply what they've learned

to help their organization, they also feel compelled to share their knowledge with others. This

also refers to Schein’s philosophy of shared beliefs within organizations (Schein, 2010).

Shared beliefs and values will strengthen an organization (Schein, 2010). Companies with

nimble learners can react quickly to disruptions, adapt to meet the demands of a changing

business climate, and harness a wealth of ideas for new products, services and processes

(Grossman, 2015). “The single biggest driver of business impact is the strength of an

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organization's learning culture”, says Josh Bersin, principal and founder of Bersin by Deloitte in

Oakland, California (Grossman, 2015). Only around one in ten companies have a true learning

culture defined as one that supports an open mindset, an independent quest for knowledge, and

shared learning directed toward the mission and goals of the organization (Grossman, 2015).

Trends in organizational culture are definitely moving toward a learning culture. With the ever-

expanding global economy and the ability to communicate across the globe in seconds, these

factors amplify the awareness of cultural diversity. Effective leaders are increasingly mindful of

these environments and desire to make change for organizational stability (Borisoff & Victor,

1998).

Learning leaders must have faith in people and realistically have the mindset that human

nature is good (Schein, 2010). Other trends include hiring smart and teachable hiring managers

that know how to evaluate candidates for learning. The impact of building a strong cultural

environment within organizations for the future could mean the difference between profit and

loss. There needs to be a solid commitment from all employees with cultural differences for

future success. Studies have shown that the commitment of the employees towards

organizational culture values is an essential mechanism to increase productivity and to move

towards optimal group performance (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013). But

the relationship between organizational culture and performance is complex. Some experts in

management and organization believe that in order to affect the organizational performance the

organizational culture should be a strong culture in the beginning. The three levels of culture are:

artifacts, espoused values and beliefs, and basic underlying assumptions.

Artifacts include items that are seen or used (Schein, 2010). For example, a written procedure

for managing operations and the delivery method would be included as an artifact. GadgetCo has

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the policy of the first step for an employee to do is speak with their supervisor if there is an issue

(Lewis University, 2016). It is obvious that upper management was just thinking of themselves

when writing this policy. It is easy for employees to reach their family member, since it is a

family-owned business.

Basic underlying assumptions include behavior perceptions, thoughts, and feelings (Schein,

2010). Context is one of those behavioral elements. “Context is one of the most important

cultural dimensions (Guffey, & Loewy, p.16, 2010). A low context culture is action oriented and

the leaders of this culture assume that the employee knows very little about the subject matter

and will give them very specific instructions on how to do a certain task (Guffey, & Loewy,

2010). Individual cultures primarily interprets positions and responsibilities in terms of personal

accomplishment.

Basic underlying assumptions are the repeated actions within a group (Schein, 2010). Once

the assumptions are adopted and used throughout a process, it basically becomes second nature

for the remaining time; anything outside of those actions will be undeniably inconceivable. This

would be the same for GadgetCo, it is Jane and Drew’s underlying assumption to report this

failure of an electric motor. This would violate the basic underlying assumptions of what has

been done in the past. This is what is called the preferred solution among several basic

alternatives (Schein, 2010).

The ideals, goals, values, and aspirations would include the espoused beliefs and values

(Schein, 2010). For example, in a group setting individuals working on a problem will have

suggestive ideals and rational to adopt for the rest of the group. The individual influencing will

be the leader in most cases, because they are the early adopters for their ideals. Until that

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solution is put into action and proven, others in the group will not necessarily adopt it right away

(Schein, 2010).

An individual reward system is useful when trying to motivate high performers on the

manufacturing floor, but will have a negative impact on the entire team while attempting to

encourage cooperation and teamwork (Levi, 2014). In order to reach across the globe GadgetCo

will need to bring their employees together, reduce conflict management, and change their

leadership behaviors. The result of the customer focus is the customer satisfaction (Williams,

2013). Meeting customer demand is all about performance. The result of this cultural dimension

is an aggressive behavior toward personal competition and rates ambition to a very high priority

(Schein, 2010).

What culture change(s) are needed to help the organization be effective?

To be effective and to initiate change from one culture to another GadgetCo will need to

implement a transformational leadership style. GadgetCo’s departments have many different

styles of temperaments and interdepartmental cultures (Schein, 2010). The cultural intelligence

of GadgetCo will need to focus more in training employees on cross-cultural learning. GadgetCo

will need to focus on a learning culture. To effectively change, multiple stakeholders are

considered to be useful help in resolving the issues that prohibit the learning process (Raza, &

Standing, 2011).

According to Kroeger, human capital is being recognized as one of the key ingredients for

organizational success (Kroeger, pg. 7, 2002). In the 21st century the skill level and knowledge of

today’s human employee is much higher than it was a few years ago. Companies recognize the

effect of putting together teams that will work to make their organization an effective force in

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today’s highly competitive world economy. So it is extremely important to have people working

in harmony as possible so the effectiveness can be turned into profits (Rekar, 2001).

GadgetCo will need to change their own policies, procedures, and processes (Schein,

2010). Traditionally the perspective of independence and freedom from control is the focus of

American companies, including GadgetCo (Guffey, & Loewy, 2010). These types of companies

believe that initiative, self-assertion, and competence result in personal achievement (Guffey, &

Loewy, 2010). With these beliefs they embrace of what is called low context cultures (Guffey, &

Loewy, 2010). GadgetCo will need to evolve over time and move away from this mindset.

GadgetCo is a multicultural organization that has communication conflicts between each

department. In addition to communication, ethics in manufacturing require employees to discuss

the conflicts and come to a responsible agreement. Organizational leaders are charged with the

responsibility of maximizing shareholder profit while upholding a high standard in business

practices (McCann, & Holt, 2009). Business practices and ethics are embedded into an

organization and it will reap the profits that it has worked so hard for. Ethical leadership was

found to be preferred by profitable organizations (McCann, & Holt, 2009). It is ethical for Drew

to inform upper-management that the new electric motors have failed during the testing process,

since this does affect their profits.

Cultural change is an evolutionary process (Schein, 2010). The employees need to accept and

share basic assumptions over a period of time, this is their shared values. These new norms may

take the form of not being responsible or caring for the right thing. It would be up to the 21st

century leader to recognize and develop guidance and direction to avoid these traps.

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GadgetCo’s leaders will need to recognize the importance of cultural change to transform into

a productive environment. There are proven methods of assessing the culture within an

organization. Before assessing an organization, it would be professional to ask for permission to

do an assessment in the first place (Schein, 2010). Culture assessments are appropriate for

several uses as long as they are executed well (Kerth, n.d.). There are ethical issues that need to

be adhered to as a professional. “The outside professional whether a consultant or ethnographer,

must make a separate assessment and sometimes limit his or her own interventions to protect the

organization” (Schein, 2010, pg. 186). Schein is simply implying that the person performing the

culture analysis might be the best professional, but there are limitations to what they are given

permission to do (Schein, 2010). It would be unethical to have access into a culture setting more

than what is necessary and make it public information.

Assessments are needed for cultural change to determine specific dimensions that correlate to

performance (Schein, 2010). Measuring the performance is the basis in implementing an

assessment. If performance is hurting then it is a clear indication the bottom line is being hurt as

well. Culture surveys are appropriate for developing an organizational profile based on the

employees’ perceptions for use in stimulating deeper cultural analysis (Schein, 2010).

Employees behave and react based on their perceptions (Brown, 2016). Learning their

perceptions may disclose subcultures that were not known. Changing from one culture to another

does not happen simultaneously. This will require a transformational change within GadgetCo.

Transformational Leadership Principles

Effective organizations use transformational leadership strategies in the culture (Schein,

2010). There is a strong relationship between transformational leadership and productivity

(Brown & May, 2012). Managers and first line-supervisors in manufacturing organizations

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realize that without transformational leadership productivity will lag behind (Brown & May,

2012). Brown and May conducted an observation study that revealed transformational leadership

does increase the positive effects of organizational outcomes (Brown & May, 2012). This was

enough to compel and persuade upper management in another organization to make a change in

their organizational culture (Brown & May, 2012). The results were enough to consider all

employees for the cultural change within the organization, which included managers,

supervisors, and hourly workers (Brown & May, 2012). Transformational leadership requires

change. The elements of transformational leadership are charisma and inspiration, intellectual

stimulation, and individual consideration.

Transformational leadership encourages employees to develop a sense of foresight and

motivation toward their own responsibilities. Transformational leadership embraces employees

to renew their commitment to the company’s mission and values (Nahavandi, 2013).

Transformational leadership also empowers new ideas and encouragement to bring about

organizational change. Coupled with intellectual stimulation through a dialogue with

communications employees will have a sense of ownership as well (Nahavandi, 2013).

Applied Transformational Leadership

To effect cultural change trust and communication is vitally important to get established

within the organization. The three stakeholders, Drew, Jane, and Jessie need to develop a better

communication process between each other. The feeling that Jane has toward Jessie is about

trust. Consequently, Jessie has a competitive attitude between the two. This creates a conflict

between the two and a breakdown of trust. For example, Jessie has an odd feeling about Jane

meeting Drew on different occasions and discussing the work environment. “Cooperation is

encouraged by trust; competition leads to a breakdown in trust” (Levi, 2014, p.93). Jessie needs

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to convey a message with trust. Communication needs to take place, but it has to be initiated by

Drew.

Drew has the ability to motivate employees to solve problems by challenging them to use

their critical thinking skills. Critical thinking skills empowers them to be more creative, which is

part of transformational leadership (Nahavandi, 2013). Since Drew is the mentor of Jane it would

fit Drew’s personality to sit down and discuss with them the advantages of a solid team working

together. By sitting down with each other will create a bond and trust. Honesty is the pillar of all

organizations to survive in a global economy (McCann, & Holt, 2009). Drew’s enthusiasm for

the company and most of all his integrity unites people naturally. Just having a moral leader

presence will unite and bring people together. The leadership process is ethical if the people in

the relationship freely agree that the intended changes fairly reflect their mutual purposes

(McCann, & Holt, 2009).

Trust creates a significant bond between leaders and followers (Nahavandi, 2013). Trust is a

precondition of any alliance or mutual understanding (Ciulla, 2003). This must be brought up

between the employees prior to any conversations on a personal level. Drew does not have the

positional power over Jessie, but he has the attitude of a servant leader to communicate with

Jessie about working together. Jane’s personality is a “feeling” characteristic which she is

sensitive to certain discussions. It would be up to the leader to use discernment in reaching a

degree of trust while having emotional discussions with employees and to use calculated

outcomes of the confidential discussions.

GadgetCo will require a large scale change in order to accept the required change needed to

compete on a global scale. It is up to Drew and the others to convince management to make this

change from altruism to a culture of charisma, inspiration, and intellectual stimulation

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(Nahavandi, 2013). Altruism in family-owned businesses refers to family members to take care

of one another through pay incentives or even promotion (Perry, & Ring & Matherne, &

Markova, 2015). This will require a cultural organizational change within GadgetCo.

For most employees it is only natural to resist change (Schein, 2010). The employees will

have to learn new habits and give up their old way of doing things. This creates anxiety within

the learning environment and the employees will have a difficult time to assimilate into the new

culture (Schein, 2010). This is why GadgetCo will need to put a transformational leader in place

that has charisma to overcome the resistance to change (Nahavandi, 2013). A leader will pave

the way by reducing opposition to make this change (Nahavandi, 2013). It will be difficult to

find a single leader to have the charisma, intellectual stimulation, and the individual

consideration for people, so there is a need for multiple change advocates to transform the

culture of GadgetCo. The cultural change will stimulate the organization with new

manufacturing ideas (Nahavandi, 2013). For example, employees of GadgetCo can take

ownership with their ideas of an improved method for testing these new electric motors. By

empowering employees to bring forth new ideas will create individual consideration (Nahavandi,

2013).

Instead of the family members making the decisions about the manufacturing processes it

would be beneficial to bring the employees together to promote individual consideration.

Individual consideration promotes ownership with each employee (Schein, 2010). Drew, Jane,

and Jessie can agree on bringing the employees together and communicate their ideas to help

improve GadgetCo and the manufacturing process. Individual consideration is needed to change

from the egalitarian culture of the organization to a culture of ethics and servant leadership. As

the organization matures, so will the structure and the value of each employee (Schein, 2010).

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HOW TO HANDLE THIS CASE ANALYSIS: NEXT STEPS FOR DR EW

How should Drew handle the situation, both immediate and long-term?

The immediate next steps for Drew would have to be looking into the organizational mission

and values. The mission and values reflect the actions of the organization (Bryson, 2011).

Before this product ships to the customer, Drew, Jane, and Jessie need to sit and discuss the

opportunities that lie before them. Certainly after the discussions they will need to test the

product one more time to be certain if there is actually a potential failure.

GadgetCo’s mission is to “create motors fast enough to meet the demands of their fast-paced

customers” (Lewis University, 2016). Drew shares this vision and strategy with Jessie and Jane,

they will see the end in mind as they move forward (Covey, 1989). Jane and Jessie must share

and realize the same vision of the organization, including the manufacturing process of electric

motors.

Drew’s next step is to communicate to them that product failures do not surface immediately.

This is part of the reason why they do so much testing. He must convince upper-management to

retest the products again or risk shipping an inferior product to a global customer.

Drew will need to persuade upper management to redefine their mission statement for

GadgetCo’s new servant leader culture. The mission statement must include information that

clearly identifies who they are (Bryson, 2011). Clarity is paramount because it is the most

persuasive way to influence an organization or other individuals to send a message of who they

really are (Bryson, 2011). Once clarity is defined within the organization, everyone will work

toward the same goal.

How would you suggest that Drew interact with Jane?

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Drew’s interaction with Jane is unique, because of his natural ability to mentor, inspire, and

motivate. He wants customers to see GadgetCo as a respectful organization with high values for

ethics and customer relations (Lewis University, 2016). When Drew sits down and discusses the

options with Jane they will have to share the same assumption for the entire company (Schein,

2010). Jane will need to agree on the shared assumptions, mission of the organization, and

strategy (Schein, 2010). For example, Jane will need to create an atmosphere that generates trust

and cooperation (Borisoff & Victor, 1998). Jane will need to understand that implementing

change within organizations often leads to conflicts (Raza & Standing, 2011).

How would you suggest that Drew interact with Jessie?

Jessie is an active impulsive employee, which causes defensive behavior from others such as

Jane. This is one of the reasons why Jane has a communication barrier, and she does not know

what Jessie might do next (Borisoff & Victor, 1998). The best course of action for Drew to do

with Jessie, even though Jessie has positional power, Drew needs to establish a mentoring

program with Jessie.

Mentoring

Mentoring does lead individuals to success. Mentoring programs are essential to support the

leadership for professionals to prepare them to lead in the functional areas of the manufacturing

plant (McGary, 2016). Mentoring and leadership go hand-in-hand, and is about paving the way

for new leadership. “Mentors are extraordinary leaders with exceptional natural character”

(McGary, 2016, p.2).

“Specific leadership skills are fine-tuned when mentors are working with their protégé’s. This

enabler helps them embrace their own career so they can adapt and engage corporate culture

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easily” (McGary, 2016, p.2). “Tailoring and inspiring others to improve their quality of life is

one method of breaking the daily routine. Career development has become one of the

beneficiaries of an effective mentoring program. The mentor expands their knowledge base as

they teach the individual. Mentoring leads into interposition between personal learning and

career development which is the mechanism for a sustained career” (McGary, 2016, p.3).

“Peer leadership empowers protégés to mentor their own peers. Peer leadership uses

technology within the mentoring program such as twitter, snapchat, and Facebook” (McGary,

2016, p.6). “Mentoring programs produce organizational support and advises individuals that not

only have social problems, but work ethic issues as well. Being a mentor takes courage and

commitment. The mentor has to have the qualities and abilities to confer to the protégé”

(McGary, 2016, p.7). To emphasize, a mentoring program is very important for all individuals.

“The current trend is many organizations are using mentoring programs as a career development

tool for the mentor and the protégé” (McGary, 2016, p.7). Mentoring will alleviate ethical

dilemmas within an organization, create a sense of trust, and streamline communication

(McGary, 2016).

Jessie has the influence as a Manufacturing Director, therefore he can work with Drew in

gaining new perspectives during the mentoring process. Even though it may be unusual, there

have been cases where an individual with positional power is mentored by a person with a lower

position or an equivalent position power. This is the message Drew needs to send to Jessie. A

message that focuses on shared information. The main ingredient to create a psychologically safe

team environment is to encourage and embrace communication and collaboration for, with team

members (Levi, 2014).

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The application of mentoring is working with others freely. Both individuals need to be open-

minded and willing to work with each other. Drew is an extraordinary leader, and mentors are

extraordinary people who want to serve others.

What leadership style or approach should Drew use?

Servant Leadership

The leadership approach to mentor Jessie is the approach of a servant leader. Greenleaf

references using the person who is serving others as their leaders (Greenleaf, 2005). Drew is

exercising servant leadership toward Jessie. Instead of using “Leader as Servant” Greenleaf is

suggesting to use “Servant as a Leader” for the purposes of the leader is supporting and serving

other people (Greenleaf, 2005). Greenleaf does speak of a pyramid, but his concept of a pyramid

is upside down, which is opposite to our own perceptions (Greenleaf, 2005). For example, in

most organizational pyramids it is turned up to the point in the upward position. Greenleaf wants

us to imagine turning the pyramid with the point down and the leader is supporting others from

the point up, and the employees fill the open area of the upside down pyramid, with the leader

supporting them from the bottom point; the servant leader supports the people.

Drew will need to speak with Jessie and ask him to reflect on his own actions as a leader

within GadgetCo; this is referred to as the Reflection-Action Model (Rotelli-Boysen, 2015).

The concept of the Reflection-Action Model is in regards into what the individual leader reflects

on toward their actions as a leader. They must have the right aptitude and perseverance. These

are the same characteristics that are required of a servant leader. We are all leaders within our

own right, but to be effective is the real measure of a leader. The Reflection-Action Model is a

process to be honest and challenge ourselves. The model offers us an opportunity to grow in our

CAPSTONE 22

leadership stance and become more effective, more of the servant-leader we want to become

(Rotelli-Boysen, 2015).

Applied Servant Leadership

Jessie is the “go-getter” within GadgetCo, but he has little respect for employees with the

exception when a product needs to be shipped. Drew needs to mentor Jessie into a servant

leadership role. The employees need to see him as servant leader and not a dictator of

manufacturing. Jessie can be taught to behave like a servant leader because he has the drive,

traits, and the behavior.

Traits are characteristics that are inherent to an individual (Rotelli-Boysen, 2015). Most

psychologists would agree that traits tend to be fairly stable over time and across situations. It is

debatable as to whether traits can be developed or not. However, most would agree that it is

more difficult to teach someone to develop a trait than it is to teach them to perform a behavior

(Rotelli-Boysen, 2015).

A behavior is a tangible action (Rotelli-Boysen, 2015). In the case of a leader, it is what they

say and do as opposed to who they are. Organizational Studies would agree that people are

taught behaviors, and they can be applied to different situations (Rotelli-Boysen, 2015). For

example, one can observe and identify the behaviors of effective leaders in an organization and

then teach other current leaders to exhibit those same behaviors. A leader that lacks a specific

trait is able to behave in a way that compensates for it. For example, GadgetCo can have an

insecure leader who lacks confidence, but looks people in the eye when addressing them, stands

by his convictions when challenged by others, thus appearing confident (Rotelli-Boysen, 2015).

CAPSTONE 23

These characteristics are service to others, a holistic approach to work, promoting a sense of

community, and sharing in decision-making (Greenleaf, 2005). All of these characteristics are

part of the development process of any individual who feels passionate about people and their

position within their organization (Greenleaf, 2005). Greenleaf has put it in exact terms, “Men

grow taller when those who lead them empathize, and when they are accepted for who they

are.”(Greenleaf, 2005). Servant leadership will need to be used in 21st century organizations to

compete on a global scale.

How could Drew use communication, change, leadership and conflict management skills to

handle this situation?

Change does not come without resistance (Nahavandi, 2013). The leadership value of Drew,

Jane, and Jessie will need to come into action when converting from one organizational culture

to another. Drew can help change the culture by role modeling and by setting the direction and

vision for the organization (Nahavandi, 2013). To do this, he must use a proven modeling

system. The method of managing such a huge change is using the five part Borisoff and Victor

Conflict Management Model.

Borisoff and Victor Five Part Conflict Management Model

There are many authors who describe and define conflict in many ways. Nonetheless, the

same words are repeated in most of their definitions: “differences, expressed, struggle,

incompatible, frustration, interference, perception, and interdependence” (Borisoff & Victor,

1998, p.2).

The process of conflict management involves five steps in not resolving the conflict, but to

discuss and manage the conflict (Borisoff & Victor, 1998). The five steps Drew is taking to

CAPSTONE 24

break down that communication barrier are assessment, acknowledgement, attitude, action, and

analysis (Borisoff & Victor, 1998).

The assessment stage is managing the differences between employees (Borisoff & Victor,

1998). There are several aspects to the assessment stage which include the individual qualities

and their relationship with each other. There are many causes to conflict, but the nature of the

conflict must be known to manage the conflict. Clarity and the determination of the

communication process must be evaluated to best lead into the next stage which is

acknowledgement (Borisoff & Victor, 1998).

Acknowledgement is also as crucial as the assessment stage in the five part conflict

management model. Acknowledgement is about being aware of the other individual’s behaviors.

There will be cultural differences because of basic assumptions of the person managing the issue

(Borisoff & Victor, 1998). Which leads to the next step which is the attitude of the other party.

The attitude is taken into consideration of the other party, for example, conciliation and

compassion must be taken into account to properly manage the conflict. To actively gain an

insight into the other person stereotyping must be dropped and the conflict must be approached

with an open mind (Borisoff & Victor, 1998). Once the mind is clear of any biases then it is time

take action, which the next step in the Borisoff and Victor Five Part Conflict Management

Model.

Action is the integration of all the other previous stages of the five part conflict model

(Borisoff & Victor, 1998). Communication is a large part of the action step. Without proper

identification of communication non-verbal and verbal cues the action will be useless. The

proper action is the understanding of each step and the ability to apply each step to be successful

CAPSTONE 25

(Borisoff & Victor, 1998). Although action is the step in applying the knowledge of each part of

the conflict management model, but an analysis of each step is crucial as well.

An analysis should be taken during each step anyway to be sure the proper application of each

step (Borisoff & Victor, 1998). The analysis is looking for the long-term effects of the situation.

Organizational change will need to take place in gradual steps, and with each step of the model

implemented with proper action. In every culture there will be conflict it really depends on how

we manage the conflict will determine our success (Borisoff & Victor, 1998).

The situation with GadgetCo involves Drew, Jane, and Jessie. Drew has already mentored

Jane over the last five years. Jane has used the five part conflict model to help her understand the

role she plays and to help understand Jessie as well.

Applied Borisoff and Victor Conflict Management Model

The first step in conflict management is assessment. Assessment can be taken in numerous

methods, including typewatching. Typewatching is the ability to watch a person and decipher

their personality type, just by watching their behavior. It is a constructive response to name-

calling (Kroeger, & Thuesen, & Rutledge, 2002). Typewatching can increase understanding and

communication between employees (Kroeger, & Thuesen, & Rutledge, 2002). By typewatching

an individual can learn the individual traits, causes of conflict, clarification of the other person in

regards to their goals and objectives, and how they communicate with others (Borisoff & Victor,

1998).

Jane’s assessment of Jessie through typewatching has given her the advantage in how to

interact with him. Jane now has an advantage in breaking down the communication barrier to

Jessie. It is not in Jessie’s character to initiate the process of improvement, because he is there to

CAPSTONE 26

get information to his advantage within the company, this is how he manages to get things done.

Jane uses these attributes of Borisoff and Victor’s five part conflict management model to help

her understand Jessie so she can break down the communication barrier between the two

(Borisoff & Victor, 1998).

Jane acknowledges Jessie’s culture of “all hands on deck” and individual performance. She

will be able to understand his beliefs and ideals to understand his way of doing things within the

company. By acknowledging his culture, she will be able to make sense of the “why” he does the

things that he does. Prior to understanding and acknowledging Jessie, she felt a high level of

anxiety, which is the reason why she went to Drew for advisement (Borisoff & Victor, 1998).

Jane’s personality type is feelings and compassionate toward others. This gives her the virtue

of conciliation with Jessie. In the past, she may not have had the courage to do this if it had not

been for Drew’s effective mentoring. Mentoring presents itself to encourage others to do some of

the things they did not have the audacity to do before (McGary, 2016). Strengthened by Drew’s

effective mentoring, Jane will face Jessie and acknowledge his culture. Her new attitude of open-

mindedness and to suspend stereotyping will develop her management career further (Borisoff &

Victor, 1998).

Her next step in working with Jessie is to put everything into action; after all, taking action is

the goal of conflict management (Borisoff & Victor, p.5 1998). This is a very crucial stage

because Jane now has to set aside some of her beliefs, without compromising those beliefs, to

achieve her goal of working and communicating with Jessie. This valuable lesson enables her to

collaborate with the like-minded employees at GadgetCo, if she is in fact to become and

effective leader after the management trainee program. Borisoff and Victor’s five step conflict

CAPSTONE 27

management model is very important with each phase, and Jane’s analysis of each phase is

critical.

The final of step of Borisoff and Victor’s five step conflict management model is an analysis

(Borisoff & Victor, 1998). Just like with the first step, Jane made an assessment of Jessie in

determining his personality type through typewatching, this prepared her not to say or do some

of things that would offend Jessie; she needs to penetrate through the communication barrier

first. After analyzing each phase she needs to have a visionary sense of the organization

(Borisoff & Victor, 1998). Jane will evaluate the concerns of Jessie and Drew to be sure she is

working as a team member. If she needs to modify her approach she can certainly do the

modification to create an open-communication forum between her and Jessie. She should not be

afraid of speaking to Jessie or feel that the ingrained culture of GadgetCo will weaken their

collaboration efforts. Under the mentoring of Drew she knows that this collaborative effort will

create approaches to problem solving (Borisoff & Victor, 1998).

The main point that has occurred with Jane is that she has strengthened and broadened her

ability to communicate with others, this is Cultural intelligence. “Cultural intelligence is an

outsider’s seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures

the way that person’s compatriots would ("Cultural Intelligence", 2016).” Jane is keen enough to

understand this and has taken the appropriate action, as a good leader does, to foster effective

collaboration with the Jessie and other employees who have the temperament.

What steps can Drew take to change the culture of the organization going forward?

Moving forward transformational leadership will need to take place within GadgetCo.

Transforming an organizational culture to another is quite an undertaking. This is a huge

CAPSTONE 28

challenge, even if upper-management is in agreement. With this change will be an enormous

amount of resistance (Nahavandi, 2013). Idealized influence and charisma is the major

component in helping this change, move forward (Brown & May, 2012). Drew is an

extraordinary leader and he has these characteristics to see the changes come to fruition. The first

step is getting management onboard with the idea of a cultural assessment. GadgetCo is an

individualistic culture, but they need to understand on how their communication has broken

down within the plant. In addition, a culture inventory is the part of the first step in finding

communication problems (Kerth, n.d.).

The OCI (Organizational Culture Inventory) is a good tool to have when measuring

employees to have certain skills and mental attitudes toward the company. The OCI measures the

performance of individuals or groups to clearly indicate if they are a fit for the organization

(Human Synergistics, 2012). The owner of the organization would want a team that works

together and shares their vision of the company. The OCI helps the owner, or whoever is

initiating these surveys, to aid them in creating a company as they see it. If there are areas of

concern that could affect the organization, the OCI would identify those problem areas and

provide a reliable solution. This is better than releasing those individuals initially; however, if

those employees cannot be molded within the company, then that may be the organization’s only

choice. One huge drawback for the OCI is that the survey does require an outsider to help

interpret the results (Schein, 2010). The selection of the outsider must be considered

thoughtfully.

“The OCI is the showing of the shared values guiding how members of an organization interact

and work” (Schein, 2010, p. 170). This would involve the strategic direction, vision, and how the

employees are involved (Human Synergistics International, 2012). Comparative data will give

CAPSTONE 29

direction in determining whether a company is strong enough to build from their own culture and

whether to add other cultures within the organization and still be able to still maintain minimal

disruption.

Moving forward is seeing servant leadership being implemented throughout the plant. Jessie

and Jane will be able to share their assumptions and ideas to others, thus creating a culture of

helping and continuing the mindset of a servant-leader. This outlook will fuse with other

departments which will lessen future conflicts.

SECTION III – SUMMARY AND CONCLUSION

The need for leaders in the twenty-first century is of the utmost concern for every

organization (Wren, 1995). Wren has noted “the gaps of leadership and the failure to grasp the

essence of leadership to the modern age” (Wren 1995, pg.9). There have been men placed in

leadership roles in manufacturing and fail to motivate, strive, and compete effectively with

surrounding competitors. This is because these first-line managers are not thinking like a leader

(Wren, 1995). If someone is placed in a leadership role, and they fail as a leader it is because

they were not effective leaders in the first place. They were placed in those roles because of

politics and they have failed miserably. This is the type of leadership in family owned

businesses.

Leaders inspire and take charge with persuasion. Inspiration could come from a simple “thank

you”. Inspiration can come from a painting or in some cases, a visit to a leadership valued

internet site. According to the Oxford dictionary, ‘inspiration means the process of being

mentally stimulated to do or feel something creative” (Waite, Lindberg, Braham, & Jewell, 2010,

p. 420). The need for leaders is so relevant that we do not even see the need for them; we are

CAPSTONE 30

short-sighted to this fact. We need leaders who see the vision, mission, goals, and objectives

within organizations (Williams, 2013).

Summary of steps that will be taken to address the issues raised

The communication barriers is now torn down through collaboration and understanding

each individual’s personality and character. Drew will make no hesitation to inform upper

management of the potential failure of the new electric motor. His natural leadership

characteristics, such as integrity, will drive him to do what he will say he will do. By using

cultural assessments such as the OCI, a new culture of shared assumptions and beliefs will

continue to emerge and grow as a united company. Conflicts are solved through a step-by-step

process through the Borisoff and Victor Conflict management model (Borisoff & Victor, 1998).

Jessie is a new leader under the commitment of Drew’s mentoring and guided counsel.

Manufacturing floor employees are stunned by Jessie’s growth in servant leadership, his entire

attitude toward people, and his activities has changed inside and outside of work.

By working together and collaborating with the design team, engineering, and manufacturing

they can come to a resolve on the product issue and still produce a safe product for the public.

When a customer’s visit for a plant tour they will not see people scurrying around with the

attitude of “all hands on deck”, but rather a culture of serving others on the manufacturing floor.

Their new philosophy and culture will be implemented from their new mission statement

(Bryson, 2011). This is a crystal clear view of model organizational culture. A company that

serves their employees as well as their external stakeholders.

CAPSTONE 31

Discuss what this case may imply about effective leadership

Effective leadership is about the outcome (Nahavandi, 2013). The leader must have the ability

to persuade others to get the assigned task and goals accomplished. Drew has the insight and

persuasion power to inform upper management of the predicament that they are in. Drew has the

ability to recognize what is missing and bring it to life. He brings it to life through persuasion

and effective leadership. Effective leadership has three main elements: goal achievement, smooth

internal processes, and external adaptability (Nahavandi, 2013). The effectual responses from

Drew’s action are the commitment to change the organizational culture, changing the overall

leadership style of the entire organization, and providing an effective means of all employees to

communicate. These are not only his goals, but it is the goals of GadgetCo.

The outcome of effective leadership demonstrated by Drew is the commitment to

organizational change. GadgetCo has realized, now that after assessing the overall cultural

structure that it is time for a needed change. Obviously family members thought the organization

was working just fine. But in fact, it took an effective leader to bring the real situation to reality.

A person who understands change transforms key stakeholders to gain approval throughout the

organization.

Cultural assessments are necessary to realize the working organizational structure within

GadgetCo (Schein, 2010). The results of the culture survey will inform upper-management to

take on a transformational leadership change. With the help of Jane and Jessie, Drew has

changed the organization to produce quality products, with the result of addressing the

immediate needs of their customers (Nahavandi, 2013).

CAPSTONE 32

Conflict management is needed in manufacturing plants just like GadgetCo, and within each

department are communication barriers. Breaking down those communication barriers are the

part of the transition to smooth internal processes that brings the organization together

(Nahavandi, 2013). The implementation of the five part conflict management model will evolve

the organization successfully into a servant-leadership culture (Nahavandi, 2013).

CAPSTONE 33

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