Path-Goal_Theory_of_Jeanne_Lewis_of_Staples

Page 1 Path-Goal Theory and the Jeanne Lewis Case Study Western Governor University LPD1 Professor: Larry Wright 06-02-2010 Path-Goal Theory developed by Robert House is based on the expectancy theory of motivation. Motivation to exert influence increases as one’s performance improves. A leader’s behavior is said to be motivating or satisfying to the extent that the behavior increases the follower’s goal attainment ,clarifies the paths to the goal attainment and removes obstacles to performance. However, whether leadership behavior can do so effectively also depends on situational factors. This Theory is called Path-Goal because it’s concern is how the leader influences the follower’s perception of their work goal, personal goals and the paths to attaining these goals. In addition a leader’s behavior is predicted to be motivational to the extent of the following: Provides the guidance and support needed by employees. Rewards are tied to meaningful rewards for accomplishing a goal. According to Robert House there are four types of leadership in the Path-Goal Theory depending on the situation: Directive Leadership: In directive leadership the leader lets the followers know what Path-Goal Theory and the Jeanne Lewis Case Study Page 2 what is expected of them and tells them how to perform their tasks. This style is appropriate when the follower has an uncertain job. The style is characterized by leaders making decisions for the subordinates and expecting them to follow the instructions. Supportive leadership: The leader is friendly and approachable. He or she shows concern for the follower’s well being. Good relations are promoted within the group and sensitivity to subordinate’s need is shown. The leader is open and approachable. Participative Leadership: This leadership involves leaders consulting with the followers and asking for their input and involves them in decision making. The leader takes their ideas into account. Achievement -oriented leadership: In this type of leadership, the leader sets challenging goals for the followers, and expects them to perform at their highest level. The leader shows confidence in their ability to meet these expectations. High performance is encouraged. Lewis career in Management began in 1993 when she was hired at Staples as the Marketing Manager. Soon after, she was promoted to the position of Director of New England Operations. Staples had just emerged from a period of prolonged litigation because of an FTC antitrust suit challenging Staple’s attempted merger with Office depot Lewis was faced with the challenge of determining how the marketing department could effectively and efficiently help maintain it’s competitive and complex market. A. Identify the leadership behavior that Lewis used with her employees. Page 3 Lewis demonstrated her ability to handle demanding and challenging work environments and was promoted to the position of Director of Sales for 150 stores on the East Coast in 1995. In 1996 she became the Vice President and also the Divisional Merchandizing Manager for furniture and decorative supplies. It was not long before she was promoted again to the position of Senior Vice President of Small Business and Retail Marketing. When Lewis came to Staples the stores were underperforming and she concluded that it was because of a lack of leadership. She first applied the directive leadership style to influence her employees. In directive leadership, the leader tells the subordinates what is expected from them and tells them how to perform their tasks. Ground rules and structures are established. For example, clarifying expectations, specifying or assigning work and tasks to be followed. The organization needed to be rejuvenated. Lewis saw it as a critical situation when the team was facing a threat. She wanted change to happen quickly and was very direct with her style. She fired 25 store associates and replaced them with a new team. Directive style is used when there is a need for immediate change and Lewis saw a need for immediate change if Staples was to remain competitive. Directive leadership does not work well with employees who have extensive experience because they believe they should be consulted when decisions are being made. Her Subordinates did not respond well to her directive style as they had extensive experience and had been in Staples for a A. Identify the leadership behavior that Lewis used with her employees Page 4 long time. To sustain momentum in her direction of change in her organization she employed the Achievement Oriented style. Her team set aggressive store standards, launched launched training programs she challenged her employees a lot and encouraged them to challenge each other. Performance was greatly stimulated. This approach to managing was needed in this situation because the goals were challenging and high standards were required. With the Achievement Oriented style of management, the leaders sets challenging goals, assists in training, emphasis improvement and expects highest levels of performance both in work and in self development. Lewis realized that change was a process and she had to adapt her style to integrate the needs of everyone in the organization. She had to remove the road blocks if she had to help her employees achieve the organizational goal and pave the way for the goal attainment. To achieve this she shifted her style to supportive leadership. She had an open door policy and was easily approachable. She started sharing information with her employees and brought them to work together as a team. In supportive leadership, the leader considers the need of the followers, She/he shows concern for their welfare, creating a friendly working environment. Lewis had created a pleasant environment and shown a concern for the employees welfare by integrating her leadership to accommodate the needs of everyone in the organization. Page 5 B. Discuss Lewis’ leadership behavior as it relates to the characteristics of the Path-Goal Theory. According to Robert House’s path-goal theory of leadership, there are four leader- ship styles depending on the situation: They are directive, supportive, achievement oriented and participative leadership. Lewis at first tried to influence her followers by using the directive leadership. She saw it as a critical environment where change was needed immediately. In the Path-Goal theory directive style of leadership is used when the leader wants to clarify to the followers the puzzle that is missing by providing structure. That is the how, what how and who. To get the momentum for change going Lewis employed the Achievement Oriented leadership style. Her team set aggressive stores standards and initiated training programs. According to the Path-Goal theory this style of leadership is used when challenging goals are set. The leader assists in training and emphasis improvement from the employees. Lastly, to integrate the needs of every one in the organization she used supportive style of leadership. She shared information with her employees, held an open door policy and door policy and made the working environment pleasant for the employees. In supportive leadership, the leader is friendly, concerned about the welfare of others and is informative. C. Identify the behavior of Lewis employees in response to her leadership style. When Lewis came to Staples she immediately went to work. She wanted change to C. Identify the behavior of employees in response to her leadership style. Page 6 happen quickly. She at first used the directive leadership style to try and influence her subordinates. The employees were not meeting performance expectations and Lewis set the procedures and objectives to be met. She clarified the path to the goal attainment and made the work environment enjoyable for the employees in the organization. The result was that her employees had increased their knowledge and confidence to accomplish their work goals. Lewis’s direct reports and peers learned that in order to influence her they had to be really knowledgeable and convincing. (Harvard’s Business Review. Page 4). When Lewis realized that she had to manage across the organization, she shifted her style. She had an open door policy and was easily approachable. This led to an increase in the employee’s effort and motivation to achieve the desired goals. One employee said she could go an extra mile for someone like Lewis. (Harvard Business School. pg. 7). She shared a lot of information, and brought the employees to work together as a team. By integrating and aligning the employees on purpose Lewis helped increase their goal attainment. The end result was that Staples was rejuvenated and the organizational work was greatly accomplished. D. Discuss how the employee behavior in the case relates to the characteristic of the Path-Goal theory. Path-Goal theory of leadership is affected by two factors namely: Characteristics of the subordinates which include the needs, ability and acceptance. Environmental factors: That is the nature of the task and organizational structure. Page 7 D. Discuss how the employee behavior in the case relates to the characteristic of the Path-Goal theory. According to the path-goal theory a leader’s behavior is said to be motivating or satisfying to the extent that the behavior increases the follower’s goal attainment, clarifies the path to goal attainment and removes obstacles to performance. Lewis directive style of leadership clarified to the employees the methods, objectives and procedures to attain the desired results. This clarification in return led the employees to gain confidence and their work performance greatly improved. She had won the respect of her peers. Lewis had cleared the path for goal attainment while providing the missing link to their goal attainment. Lewis shifted her style to include the needs of everybody in the organization. She shared a lot of information and was able to bring employees to work as teams. She held an open door policy and was easily approachable. The employees responded to her style by being motivated and their work effort increased. The goal had been attained because the organizational work outcome had greatly improved and Staples had been rejuvenated. In analysis, this case study looks at the challenges managers face while “taking charge” and in particular managing change in a revitalization situation.