May 2009 IB Case Study Issues to Revise

 Sophie gets a lot of help with her business from her parents  She has several part time and 2 full time employees.  These come from the community, and are family friends with Sophie. This is why she has adopted a paternalistic leadership style.

 High levels of staff turnover punctuality  The Sanctuary recruiting more part time staff.  Having a large number of periphery and a small number of core workers is causing her problems.  Does this mean it is wise to recruit more part time – and students???? For a low starting salary as well.  She must manage her human resources more professionally and consistently. We could argue that her leadership style is not helping these problems.

 The core staff have similar eco-tourism values, and they give her ideas about how to attract young eco- tourists to the area. This could open up opportunities for her.  Lower costs for summer staff – as their salaries will be low as they are students.  She covers a busy period (summer) and avoids recruiting permanent staff she may not need later on if she recruited summer staff.  They are young/fresh new ideas/eager to work (summer staff)

 Core staff would be more committed to LM. They will be more professional as this is their career.  She may find it difficult to employ summer staff.  Core idea will be more expensive – as she will have to give career opportunities and an enhanced pay structure.  It may solve some of her problems if she increased her core workers – to make it more professional and avoid the current existing problems she is facing with part time staff.

 Businesses have a core group of workers, which form the basis of its operations and a periphery, which consist of all other tasks needed to run the firm, but which are not central to the business.

 Professor Charles Handy suggested that there were three parts to modern firms  Reading Wall page

 Sophie has adopted a paternalistic leadership style.  Definition: where managers and leaders treat their employees as if they were family members by guiding them through a process of consultation. In their opinion, they act in the best interests of their workers.  Write down five key features/traits of a paternalistic leader....

This style is derived from:  Mayo’s work on human relations and Maslow’s lower and middle order needs.  The approach is to consult with staff.  Usually there is emphasis on training and appraisal for personal development.

 A paternalistic leader thinks and acts like a parent. He/she tries to do their best for their workers.  There may be consultation to find out the views of employees, but decisions are made by the head of the family.

 This type of leader believes employees need direction but thinks it is important they are supported and cared for properly.  Paternalistic managers are interested in the security and social needs of their staff.  They are interested in how workers feel and whether they are happy in their work.  Nevertheless, it is quite an autocratic approach.

 She knows the staff well so feels that a paternalistic approach is best – as they are family friends.  It is not a large groups of employees so she can keep control with this paternalistic approach.  With this approach, she can care for them and look after their welfare, which will make them want to stay with her – and remain loyal.

 There have been problems with this approach:  Staff absences and poor punctuality. She has to cover their duties, and this takes her away from her core responsibilities.  Most of her staff are part-time, and are less likely to be motivated? They may need a more strict approach to get them to work.  As a paternalistic leader (just like autocratic leaders) she does not give employees control over decision making.

 The task in hand  The tradition of the organization  The type of workers  The group size  The leader’s personality  Group personality  time

 Read lines of the case study carefully and using your textbook, outline which theorists we can apply to this case study. (leadership (HL) and motivational). (IBO page 269)  Using the Raffo book, evaluate the monetary and non-monetary rewards mentioned in the case study (if any). Which do you suggest could be used to solve Sophie’s problems?

Important suggested reading – notes to be made and applied to the case study:  Likert – leadership  Matrix structures  The informal organization  Minzberg/Peters