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Answer & Explanation:Improving Leadership Effectiveness.docx
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Improving Leadership Effectiveness
You are a team of human resource consultants who have been hired by Carla Caruso, an
entrepreneur who has started her own interior decorating business. A highly competent and
creative interior decorator, Caruso has established a working relationship with most of the
major home builders in her community. At first she worked on her own as an independent
contractor. Then because of a dramatic increase in the number of new homes being built, she
became swamped with requests for her services and decided to start her own company. She
hired a secretary–bookkeeper and four interior decorators, all of whom are highly competent.
Caruso still does decorating jobs herself and has adopted a hands-off approach to leading the
four decorators who report to her because she feels that interior design is a very personal,
creative endeavor. Rather than pay the decorators on some kind of commission basis (such as a
percentage of their customers’ total billings), she pays them a premium salary, higher than
average, so they are motivated to do what’s best for a customer’s needs and not what will
result in higher billings and commissions. Caruso thought everything was going smoothly until
customer complaints started coming in. The complaints ranged from the decorators’ being hard
to reach, promising unrealistic delivery times, and being late for or failing to keep appointments
to their being impatient and rude when customers had trouble making up their minds. Caruso
knows her decorators are competent and is concerned that she is not effectively leading and
managing them. She wonders, in particular, if her hands-off approach is to blame and if she
should change the manner in which she rewards or pays her decorators. She has asked for your
advice.
1. Analyze the sources of power that Caruso has available to her to influence the decorators.
What advice can you give her to either increase her power base or use her existing power more
effectively?
2. Given what you have learned in this chapter (for example, from the behavior model and
path–goal theory), does Caruso seem to be performing appropriate leader behaviors in this
situation? What advice can you give her about the kinds of behaviors she should perform?
3. What steps would you advise Caruso to take to increase the decorators’ motivation to deliver
high-quality customer service?
4. Would you advise Caruso to try to engage in transformational leadership in this situation? If
not, why not? If so, what steps would you advise her to take?
…
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