Fabrics Company has enjoyed a relatively good performance and profit making since its establishment seventy years ago. However, after the leadership change there were a number of improvements in profits and pay but the employees left. Introspection into the reasons as to why this became the situation can point to a number of changes and dissatisfaction on the side of the employees.
The company, at first, was headed by Susan Quinn, who knew all employees by name. This aspect made her liked by the employees. She inspired them through her personal touch on their work by knowing each of them by name. She had a very good referent power. That in itself is a big motivator that kept many employees in the firm despite the pay.
When the Indiana Investors took over, they applied much expertise and reward power that increased the profits and the pay. But one missing power is the ability to relate to the employees on a personal platform. Because referent power was missing, the employees could not gain appreciation from the new managers. They felt unrecognized despite the increase in pay. Due to the lack of satisfaction, they opted to look for new jobs elsewhere.
Since the new employers may be applying much expert power, and being clear in their objectives, they abandoned the opinion of the employees that Susan Quinn might have been using. The employees, therefore, as much as profits are going up, they do not feel part of the company. Subsequently workers lose the connection with their work and the resultant action being some of them start opting for other places where they can get empowerment and motivation, which is a key element of management.
The new managers must embrace the task oriented style of leadership and care less about the workers’ welfare. This managerial expectation means that the relationship oriented style that has been in place for the 38 years of Susan’s management went missing. The employees must have felt uncomfortable with the new style and felt that they are just being used to make the profit for the Indiana Investors.
Brian Tracy “Your Management Style: Does it Help or Hurt Employee Performance?” Monster. com. n.d. Web, 14 April 2014
Barna, George. Leaders on Leadership: Wisdom, Advice, and Encouragement on the Art of Leading God's People. Ventura, Calif., U.S.A: Regal Books, 1997. Print.