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Case Studies in Leadership and Management

Unit: Leadership and Management

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December 2022

1 Questions
Question 1
​FATUMA APIO 

 Fatuma Apio has such a strong leadership presence that it would be difficult to talk about Bora Association of Manufacturers (BAM) without mentioning her name. For close to a decade now, press conferences, newspaper commentaries, trade and investment talks associated with BAM always had a permanent fixture that was its Chief Executive Officer (CEO), Fatuma Apio.

As she exits BAM due to end of her term of service, her charisma as a superstar CEO may become a difficult feat for the incoming CEO, Musa Mapito, to emulate. Fatuma Apio is well known in the manufacturing industry due to her signature look. She dresses in Ankara coats, which are quite uncommon in this part of the world. Fatuma rose through the ranks having joined BAM as the head of policy, research and advocacy in the year 2005. She took over the leadership mantle of BAM in the year 2012 after the Board of BAM pushed out its then CEO, Bakari Mapelu due to lackluster performance. BAM had always been a high performing organisation and the Board felt that Bakari Mapelu lacked the right skill set, decision style and values to steer BAM forward. In Fatuma Apio, the Board saw a leader with the “right package” of skills, values and abilities and a person who could build a strong leadership team in the organisation. To them, Fatuma Apio was an idealist who had an unquenchable thirst for learning and growing. They knew that she would influence the other leaders and employees of BAM to follow suit. This would then result in a healthy organisational culture necessary for the success of BAM. Fatuma Apio believed in and implemented Elton Mayo’s Human Relations Movement Theory at BAM. Without a doubt, Fatuma was a transformational leader.

Fatuma Apio’s farewell party was quite emotional since members of staff felt like one big united family, and her separation with BAM was unimaginable. Fatuma had a knack for recruiting the right staff and developing them to their highest potential. She had what it took when it came to staffing. No wonder BAM became so successful during her tenure to the envy of many organisations. She ensured that BAM had a progressive staffing policy. The policy encouraged employees to have a work life balance. In her final speech, she narrated her experience as a newly appointed CEO where most of her time was spent at the workplace. “I used to work late into the night and during weekends at the expense of my young family. This can be challenging to many of us and requires a lot of discipline and a solid support system. Luckily, I had great support from my husband. I highly discourage such a work ethic. You should always create time for your families. I know of situations where, such a work ethic has led to conflicts at the family level and the repercussions experienced at the workplace,” she told the employees.

As one of the few women CEOs, and just in her 40s, her advice to young women aspiring to be top executives is simply to acquire knowledge and competence, saying it is the best investment one can make. “Knowledge will aid you in making great strides in all the areas you are passionate about. Most importantly, self-discipline and responsibility shall steer you to the right path,” she says. What she likes most about the industry now is that more women are taking up leadership positions than ever before. “Unfortunately, the game is already rigged, particularly on what is expected of women in leadership and their ability to hold such positions,” she added. 

Fatuma encouraged women employees of BAM not to be bound by defined spaces. They should shine in their talent and skills to make a difference. “This concept continues to be demonstrated everyday as more women take up C-suite roles, more so in traditionally, male-dominated sectors, such as manufacturing,” she said. Fatuma added that, “BAM started the Women in Manufacturing Programme to provide a space for women to venture into the manufacturing space. We aspire to see more women participate in the sector in senior leadership roles, as owners and founders, and for young girls to see themselves as future industrialists”.

According to her, there were times when the issues she wanted to change took too long to materialise, but she remained steadfast. This taught her to be patient and resilient. “I have learnt that challenges fuel you to become more innovative,” she concluded. 

Required: 
(a) Fatuma Apio believed in and implemented Elton Mayo’s, Human Relations Movement theory at BAM. 
    
     With reference to the above statement, describe FIVE actions that Fatuma Apio may have taken, to implement the theory in her organisation. 

(b) Bernard M. Bass developed the transformational leadership theory in 1985 as a way to describe the psychological mechanisms that are used by leaders. 

     With reference to the above statement: 

     (i) Explain SIX personal traits that Fatuma Apio possesses that enable her to be regarded as a successful transformational leader. 

    (ii) Examine FOUR elements that make up a transformational leader, which came to be known as the 4 Is. 

(c) Enumerate SIX principles that BAM might have taken into consideration while developing a staffing policy. 

(d) Fatuma Apio encouraged BAM employees to always create time for their families to avoid conflicts. Conflicts in organisations also occur between line and staff management. 

    With reference to the above statements, assess FIVE possible sources of conflict between line and staff management of BAM.    


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August 2022

1 Questions
Question 1
​ ​ ​​
XYZ COUNTY 

In a week’s time after the conclusion of the general elections, Baridi Joto, popularly known as BD will be declared as governor elect of XYZ County by the electoral body since he was unopposed. He is the only gubernatorial candidate unopposed in the country.

BD will be taking over the leadership of the XYZ County at a time when nothing seems to work at the county. The county has been greatly mismanaged by the outgoing governor, Kipenda Pesa with his team. The population, especially in the two major towns of XYZ County, Kipeo and Makao has been declining at an alarming rate as many people have been migrating to other towns outside XYZ County in search of better prospects. Kipenda Pesa’s government has been highly bureaucratic and incompetent. His wife appears to wield more power than the governor and she influences how the county government is run. County employees follow her orders unquestionably to avoid trouble. Several large scale manufacturing plants in the county closed down while others have relocated to the neighbouring counties where the business environment is conducive. This has resulted in an increase in unemployment levels that further led to high crime rate in the county.

Many residents described Kipenda Pesa as a “lame duck” who could not make a decision without consulting his wife. As a result of the chronic bad decisions regarding the governance of XYZ County, the county is currently dysfunctional. Garbage is all over the streets, residents have no access to essential drugs in the county hospitals, educational facilities and county roads are dilapidated and some businesses have closed down due to high cost of doing business. Residents of XYZ county have become poorer under Kipenda Pesa’s reign. It is against this backdrop that Baridi Joto (BD), a renowned economist and consultant with an international organisation was approached by some opinion leaders to contest the position of governor and rescue the county. All the aspirants who had been nominated by their respective political parties stepped down in BD’s favour. 

BD has promised to offer visionary leadership in the county. Towards this course, he has developed a manifesto that if implemented, water shortages, bad and impassable roads, lack of drugs in hospitals, children dropping out of schools will be a thing of the past. He has promised to pay all the pending bills owed to XYZ County’s suppliers which run into billions of shillings. Pending bills have really affected small scale suppliers especially those who had borrowed money from financial institutions on the strength of local purchase orders and local service orders issued by the county. Many of them have closed down their businesses while others have seen their businesses auctioned. 

BD has promised to develop a county integrated development plan (CIDP) six months after he assumes office which will address most of the social problems faced by the residents of the county. Currently, there are no recreational facilities in the county. County staff are demotivated due to meagre and delayed salaries. They have been bearing the brunt of various jokes from their peers in other counties especially when they meet in county forums. BD will have to work extremely hard to ensure that the county staff work as one united team in his endeavour to return the lost glory of the county. He has a daunting task of completing projects which were half-way abandoned by his predecessor due to inadequate budgetary allocation and misuse of funds. BD inspires hope and everyone in XYZ County, including children are looking up to him to deliver them from many years of bad leadership.

Required: 
(a) Kipenda Pesa ran a highly bureaucratic county government. 

     With reference to the above statement, evaluate six drawbacks of bureaucracy that could have contributed to the ills at XYZ County. 

(b) Kipenda Pesa’s wife wields a lot of power and county employees follow her orders unquestionably. 

     (i) Identify Kipenda Pesa’s wife’s source of power. 

    (ii) Discuss six disadvantages of the use of power identified in (b) (i) above with respect the county government’s office. 

(c) Many small scale suppliers closed down their businesses or have seen their businesses auctioned due to failure of XYZ County to clear their pending bills. 

     Explain two external environment factors or aspects that might have contributed to the closure of businesses in XYZ County. 

(d) (i) State BD’s leadership style. 

     (ii) Examine five qualities of the leadership style stated in (d) (i) above.  


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April 2022

1 Questions
Question 1
​​​BEV MODI 

Bev Modi was an entrepreneur who turned into an intrapreneur due to demands of the environment he worked in. Modi was instrumental in formation of Ecly Ltd. (EL), a company that was established to manufacture and sell computing devices. EL built personal computing kits amongst other computing devices which were initially hand built by Wizzy Kiwanuka. As one of the founders of EL, Bev Modi stewarded the company as the Chief Executive Officer (CEO) from 1976 to 1980 before he was fired by the Board. He returned to EL five years later in the same capacity.

By the time of his death, in the year 2015, Modi had transformed EL, a company that was in a very weak financial position into the most profitable technology company in the region. Modi practised pacesetting style of leadership and many are the times he could be heard telling his employees to keep up. He rewarded his top 20% performers highly while at the same time let go of the bottom 10% of the employees. This created a high intensity environment in the organisation. Modi was a proponent of getting involved in the job of employees who were capable and competent.

Unlike founders of most technology companies, Modi had neither engineering experience nor business training. After all, he dropped out of college after only one semester. During his first stint as the CEO of EL, Modi was just a figurehead. He was a CEO without real power since the company was run by other executives and investors. The lesson he learnt after watching his replacement run down EL was to trust his own beliefs and values and completely disregard the conventional views on how to run a company, including the traditional duties of a CEО.

Modi delegated a lot of his duties to members of his executive team, most notably his second in command and eventual successor, Paul Rop. This enabled him to focus on what he was best at; creating products, recruitment of new staff and marketing. In one of the many interviews with the media, Modi commented that he spent most of his time on forward looking issues while his top executives assisted him with non-strategic assignments. In addition to being a strategist, Modi was effective as a transformational leader.

Modi had a hands on approach to product design which was arguably the favourite part of his job. He often went to the industrial design lab to spend time with the design team and would give his opinion and guidance on their prototypes. Product review sessions took up most of his workday. He tested new products and gave imperative feedback to the development team.

During his second tenure as the CEO of EL, the company experienced transformational change due to the implementation of guiding principles for change in the organisation as well as breakthrough in new technologies. Modi was a leading change management proponent and he significantly contributed to EL's alteration of business model, philosophy and business approach. As a transformational change agent, Modi introduced an executive development program where prospective executives of EL were trained on interpreting their surroundings and reacting when their power or safety was challenged. At EL, it was generally agreed that what differentiates leaders is not so much their philosophy of leadership, their personality, or their style of management, rather, their internal "action logic" - how leaders interpret their surroundings and react when their power or safety is challenged. 

Required: 

(a) (i) Bev Modi turned from an entrepreneur to an intrapreneur. In the context of the case, explain the term "intrapreneur". 

    (ii) Before starting the business, Bev Modi and other founders had to generate a business idea which resulted to manufacturing and selling of computing devices. Examine six methods the founders might have used to generate the above business idea. 

(b) In his second tenure as the CEO of EL, Bev Modi used the pacesetting leadership style to steer EL towards achieving its goals. 

     Required: 

     (i) Explain the term "pacesetting leadership style". 

    (ii) Describe three prerequisites that had to have been put in place at EL for the pacesetting leadership style to work well. 

(c) Using five of Mintzberg's management roles, discuss how the managers of EL could improve their performance. 

(d) At EL, prospective executives went through an executive development program. 

     Examine six ways of leading and action logics that could have been included in the program's curriculum.


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Question 1
​​
​​EFD LTD. 

EFD Ltd is a cross-listed electric power distribution company. The company is planning to diversify into renewable and clean energy sources. When JL took over as CEO in 2020, EFD was a traditional, hierarchical, command-and-control workplace – a bureaucratic organisation. This is one of the few businesses in the region that is still able to operate a traditional company that provides control and stability. At the top of the organisational structure (below the board of directors) is the CEO and senior management. In the middle of the structure are middle managers and lower-level managers and at the broad base are employees. At EFD, top management make all the major decisions which are communicated to middle-level and low-level management. These managers must then implement the decisions among the rank-and-file workers. However, input is required or solicited from employees though ultimate authority rests with top management.

Through a preliminary study report on current management practices at EFD, JL is amazed by the primary advantage of a traditional organisation structure in 21st Century. It keeps decision-making authority in the hands of a few people within the business and in doing so, it eliminates confusion among employees about who is in charge and provides a clear message about what workers are expected to accomplish in the performance of their duties. Other key findings of the study are as follows: 

  1. A bureaucratic context as found in EFD is characterised by job specialisation which enables employees to have a well-defined rules of productivity. 
  2. When the bureaucratic approach is implemented effectively, the impersonal nature of interactions that are established leads to a number of benefits. Equality is emphasised and stressed; friendships do not influence decisions that are made; and, the rules and regulations ensure that there are precise instructions for job functions and expectations. 
  3. Top managers in this company are in a position to make tough decisions although guided by efforts of the respective workforce. 
  4. Employees are empowered to make decisions without fear of the consequences as the decisions they make correspond to what the managers want. 
  5. The lines of communication are open, giving the organisation an opportunity to develop, and involving all the employees in the decision making process. 
  6. The idea of job specialisation brings some benefits to the organisation as it generates efficient, repetitive workflow. 
  7. Each department has particular powers enabling managers to monitor their employees more easily and ensuring that they stick to their tasks. 
  8. The employees are conversant of what is expected of them and what their powers are within the organisation. 
  9. The managers are organised into hierarchical levels where each level of management is in charge of its employees and overall performance. 
  10. Bureaucratic power is extremely autocratic and strict observance to rules may prevent the implementation of appropriate measures required to accomplish organisational objectives. 
  11. Employees hired get promoted based on their unskillfulness – a proficient manager will continue to be promoted until the moment they are incapable thus remaining to that position until they retire or die. 
  12. Due to the applicable rules and regulations, there is less autonomy to act or make personal decisions.
  13. Adapting to change in this type of organisation is very challenging – it takes time to come up with new rules, regulations and strategies to the new contexts that have transformed. 
  14. The employment to an office and the management of the various levels in this organisation are based exclusively on the grounds of technical proficiency. 
  15. Bureaucratic rules and regulations seem to be obstructive when unexpected situations occur. 
  16. In a subsequent strategy meeting with all the managers, JL makes the following observations: 
  17. That there are certain elements of management which are timeless, but environmental shifts also influence the practice of management. 
  18. That in recent years, rapid environmental changes have caused a fundamental transformation in what is required of effective managers. 
  19. Technological advances such as social media and mobile apps, the rise of virtual work, global market forces, the growing threat of cybercrime, and shifting employee and customer expectations have led to a decline in organisational hierarchies and more empowered workers which calls for a new approach to management that may be quite different from managing in the past.

 A decision is made during the meeting that instead of trying to promote ideas and innovations through traditional structures, EFD should align its structure in such a way that ideas and innovations can prosper. A committee of five members drawn from the three levels management is formed to study the shift from the traditional management approach to the new management competencies that are essential in today’s environment. 

Required: 
As a member of the strategy committee you are required to provide data by answering the following questions that relate to your terms of reference and in the context of the above case: 

(a) Through secondary research, identify and explain five management competencies that are becoming crucial in today’s face-paced and rapidly changing world. 

(b) Compare and contrast Max Weber’s bureaucratic theory and systems thinking in the context of management of an organisation. 

(c) Illustrate the process of how managers use resources to attain organisational goals through the functions of planning, organising, leading and controlling and briefly explain each function. 

(d) Advise the CEO of EFD on sources of leader power and the tactics that leaders use to influence others especially in time of organisational change.


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December 2021

1 Questions
Question 1
​МАХСОM LTD. (ML) 

Maxcom Ltd. is a prominent company in cement production and has been in business for over ten years controlling the market almost in a monopolistic way. The company has project managers in its six branches with each branch employing approximately eighty workers. The Chief Executive Officer of Maxcom Ltd. has twice been voted as the best performer in the corporate sector category in various award ceremonies. For managerial positions, the company recruits higher than average persons with formal training and who have experience in respective fields. It is also compulsory for new heads of department to be coached and mentored by other senior managers. The Chief Executive Officer of Maxcom Ltd. always encourages branch and departmental heads to embrace the firm's culture of adopting transformative leadership approach in order to gain employee commitment. The company's culture and ethical leadership practice is further emphasised during leadership trainings organised for managers and departmental heads during every financial year.

In the last one year, Maxcom Ltd. has faced unpredictable challenges where more firms have joined cement production hence reducing its market share. Due to this competitive pressure, the company has embraced the latest technology to try and reduce the cost of production and shift from labour intensive to capital intensive approach. As a consequence, the manpower in most of the company branches has been reduced, a process that is painful for managers and employees. The overall aim of restructuring is to maintain clarity and consistency in pursuing the company's vision while still being competitive in a highly charged political environment.

Required: 
(a) Suggest five reasons why the leadership of Maxcom Ltd. (ML) seems to be spearheading the company in the right direction. 

(b) Discuss how the branch and departmental heads of ML could apply transformative leadership style to gain employee commitment. 

(c) In order to control the cost of production, ML shifted from labour intensive to capital intensive strategy. 

     Explain the costs that ML might have incurred during the restructuring process. 

(d) In most organisations, employees resist change especially when their jobs are at risk.  
     
      Examine five strategies that the management of ML could have adopted to overcome resistance to change.

(e) Assess five ways in which the political environment under which ML was operating could have influenced leadership and management practices at ML.


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