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.

May 2009 IB Case StudyIssues 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.

Problems faced by Sophie

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.

Students in the summer or core staff?

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)

Students in the summer or core 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 275-276.

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 93-113 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