The document analyzes Lisa's challenges as she adopts an autocratic leadership style, leading to low employee morale and productivity issues. It discusses the negative impacts of her leadership, such as employee discontent and high turnover, while presenting paternalistic leadership as a more effective alternative that prioritizes employee well-being and loyalty. The text also contrasts successful paternalistic leaders, like Jack Ma and IKEA's Ingvar Kamprad, emphasizing the importance of fostering a supportive company culture.

1. GMGT 5173
Organisational
Behaviour
Assignment 2 – Group Case Study
Managing People and Organization
ZAKIE ZAMANI MOHAMAD FAISAL
SYAHRILL MAT SHARIFF

2. Case
Study
Problem & Cause
Analysis & Findings
Solution

3. Problem &
Cause

4. Lisa (Owner)
Adam
Machine Part
Problems & Situation
 Self centred approach
 People work only for
money
 Sole decision
 Profit-sharing cut off
 Operational procedure
changes
 Productivity base salary
cutting
 No significant increase in
output
 Operational cost has soared
 Personnel and training cost is
high
 Turnover is high
 Employees is discontented
and unrespectful
 Negative environment
Despite advise from the consultant she hired
suggesting to opt her father’s management
style, Lisa is dumfounded and unable to
comprehend the humanistic approach!
Lisa is facing difficulty/issues in managing and finding
the best approach to increase output and performance
of the company thus achieving her vision to challenge
international market.
The company is currently at the edge of turmoil which
employees’ morale are low effecting the overall
performance and might be failing

5. • The employees used to be pampered and appreciated by the founder that create close relationships as the company culture.
• Lisa’s autocratic style can be beneficial in some settings, but also has its pitfalls and is not appropriate for every setting and with every group.
• Create resentment
• Not belonging
• Isolation
• Negative respond;
• Passive-destructive; disobedient, not cooperative, tardiness, low efficiency
• Active-destructive; quit, retaliation, disrespect, ignorance
• If autocratic tends to be Lisa’s dominant leadership style, there are things that she need to consider in ensuring success managing the employees.
• Employee's belief, feeling and concern
• Relationship
• Current culture / environment
• How adaptive the employees to changes; consider approach and timing
The Cause

6. Analysis &
Finding

7. Leadership Style - Autocratic
 Also known as authoritarian leadership
 The philosophical and historic background of autocratic leadership can be described by the influence of Confucianism in China.
 Philosophy
 Leaders having a legal right to absolute authority
 Denoting that each workers is bound to obey her superiority.
 Close monitoring of workers
 Leader holds the final decision.
 Characterized by individual control over all decisions and little input from group members.
 Making choices based on her ideas and judgments and rarely accept advice from followers
 Create highly structured and very rigid environments
 Establishes rules and tends to be clearly outlined and communicated
 Dictate work methods and processes
What do Adolf Hitler, Napoleon Bonaparte, Queen Elizabeth I, and Vladimir Putin have in common? They are all examples of
autocratic leadership—when one leader exercises complete, authoritarian control over a group or organization—or in the case
of these famous autocrats, vast empires

8. Benefits / Best Applied Scenario
• The autocratic style tends to sound quite negative. It certainly can be when overused or applied to the wrong groups or situations. However, it can be
beneficial in some situation such as:
• When decisions need to be made quickly without consulting with a large group of people.
• Allows for quick decision-making especially in stress-filled situations
• Offers a clear chain of command or oversight
• Provides Direction - Strong and directive leadership need situation to accomplish things quickly and efficiently that require fast and effective decisions.
 Leader is the most knowledgeable person in the group.
 Can be effective in small groups where leadership is lacking and poor in organization.
• Relieve Pressures - In situations that are particularly stressful, such as during military conflicts, group members may prefer an autocratic style.
 Allows members to focus on performing specific tasks.
 Allows group members to become highly skilled at performing certain duties.
• Offer Structures - Clear task assignment, deadline, and rules.
 Manufacturing and construction work

9. Downsides
 Discourages group input
 Lack of creative solutions to problems, which can ultimately hurt the group from performing.
 Leaves group feeling like they aren't trusted with decisions or important tasks
 Ignores or impairs creative solutions and expertise from subordinates - Failing to consult with other team members in such situations hurts the
overall success of the group.
 Discourages creativity and out-of-the box thinking
 Hurts morale and leads to resentment
 Employees tend to be happier and perform better when feel like they are making contributions.
 Since autocratic leaders typically do not allow input from team members, followers start to feel dissatisfied and stifled.
• Tend to abusive of power - bossy, controlling, and dictatorial.
 Increase stress and lower employee satisfaction
• Increase employee turnover
• Create toxic culture

10. Solutions /
Approach

11. Leadership Style – Paternalistic
Approach
• A managerial approach that involves a dominant authority figure in dimension of:
• Acts as a patriarch or matriarch creating family atmosphere which maintain leader authority /
status
• Treats employees as members of a large, extended family establishing close and
individualized relationships
• Employees are listened to, but the leader always makes the final decision.
• Leaders protect and care for their subordinate's wellbeing and affairs in return of loyalty
• Involve in employee's personal lives, which is accepted in collectivist cultures.
“F urthermore, subordinates perceive their superiors like surrogate parents who create a high-
power distance (power inequality) in their relationship “
(Pellegrini & Scandura, 2008)
• WHY????
• Unlike bureaucratic power, paternalism didn’t establish norms and rules out of rationality,
but from tradition and irrational belief in the leader’s right to rule.
• The framework relies on “the belief in the inviolability of what has always been”. Paternalistic
structures didn’t question the status quo or the legality of power.

12. Elements of Paternalistic Leadership
Autocratic
Leadership
• Individual control over all decisions
• Leaders typically decides on their
ideas and judgments
Benevolent
Leadership
• Focuses on subordinate's personal
and familial well-being individually
and in holistic manner
• Implies leader’s attentiveness &
maintains personal relation.
Moral
Leadership
• Leader’s moral character acting as
role model by demonstrate
kindness, respect, fairness conduct
and are non-abusive of authority.
• Develop the capacities of others.
• Identified by the authenticity of
the leader and encompasses self-
cultivation and selflessness
This personal relationship’s scope is beyond the
organizational context and is involved in the
individualized concern regarding family issues or
personal problems (Cheng et al., 2004).
identified by the authenticity of the leader and
encompasses self-cultivation and selflessness. These
values create congruence between the leader and the
subordinates’ values (Niu et al., 2009).

13. Core Characteristics of Paternalistic Leadership
• Amongst the leadership styles that can be successfully adopted into organizational management. It has following attributes:-
Compassion
• Empathy to relate
subordinate's
feelings
• Employees feels
valued and pleased
• Increases
employee’s loyalty
& generate trustful
relations
Organization
• Demands good
organizational skills
• Capabilities to
plan, prioritize, and
achieve goal
Decisiveness
• Firm decision-
making
determination,
expertise,
knowledge and
wise judgement
• Great power
comes greater
responsibilities.
Empowerment
• Require trust, faith
and confidence.
• Will develops
subordinates as
individual &
professionally
• requires a careful
balance of full
autonomy and
micromanagement
Influence
• Influence with
leader extensive
knowledge or
through superior
communication
skills which
captivate them

14. Applications
Executive Leadership
Executive leaders with a paternalistic leadership style view employees as important stakeholders and
prioritize employees’ needs over that of the investors like a firm that offers lifetime employment and goes
to great lengths to circumvent layoffs when a business is undergoing a loss.
Governments
A government following a paternalistic style may provide quality goods free of cost or may bring down
the cost with subsidies. They may also heavily tax stuff they consider harmful like alcohol and tobacco.
Paternalistic government is associated with various rules, regulations, and enforcement that control
every aspect of life like the laws against gambling.
Management
A paternalistic manager seeks to boost and improve people by supporting them develop their skills and
providing opportunities that suit their interests and talents. This way, a manager can foster a powerful
and a loyal workforce.

15. Relation to Employee Motivation
• Mayo’s human relation view of motivation - Elton Mayo is the founder of the human relation school of thought, which focuses on the idea that
managers should pay more attention to the interests of the workers. He examined the relationship between the leader and the subordinates, drawing
up his motivational theory during experiments at the Hawthorne factory:
• Improvement in workers’ motivation, productivity and the ability to work in a team - The employees at Hawthorne weren’t used to working in
groups, but once they teamed up, the productivity improved.
• Enhanced communication. The experiment required more consultation and the subordinates at the factory began to provide regular feedback.
The improved communication between the leader and the subordinates boosted motivation.
• Increased leader involvement in personal lives - The more attention the managers at the factory provided in subordinates’ lives, the more
productive and happier the employees felt.
• The other motivation theory closely linked with paternalistic framework is Theory Z. - Dr William Ouchi devised the theory during the 1980s by
examining the rise of Asian economies, especially in Japan. The key idea of his theory was that leaders could guarantee employee loyalty by providing
them with a stable job and focusing on the wellbeing of the employee, both in terms of professional and private satisfaction.
• The basis of the theory lies in the dominance of Japanese companies during the 1980s and tended to have the highest productivity at the time and
according to Ouchi, this was down to the focus on partnership and group work. In his book Theory Z: How American Business Can meet the Japanese
Challenge, Ouchi, like Mayo, noticed that productivity and motivation are not dependent on factors, such as work conditions or organization’s
technological capabilities. Rather, the secret was the management style.
• Furthermore, the theory made similar assumptions about subordinates’ motivation and productivity, as Mayo above. Ouchi’s assumptions are outlined
below:
• Subordinates are interested in creating close relationships with leaders and their peers.
• Subordinates need support from leaders, and they want the leader to show interest towards their wellbeing, not just at work, but also in their
personal lives.
• Subordinates can be autonomous, as long as the leader looks out for their wellbeing and supports them.
• According to Ouchi, paternalistic tendencies aren’t incompatible with a certain level of consensus decision-making. In essence, the theory
believes in the idea that because communication in paternalistic leadership is essential and since the leader makes decisions based on what is
good for the subordinates, the decisions are driven by consensus, even when the leader ultimately makes the decisions.

16. The Drawbacks
Drawbacks
• May lower employees’ morale due to non-participation in the decision-making.
• Creates a dependency on the leader; as he is the one who takes decisions.
• Subordinates might feel less inclined to find out solutions.
• Irrational outcome; as some workers might be satisfied with your decision while others might not.
• Might create internal issues and power struggles when the roles and responsibilities are not well defined.

17. • Listen to Team Members
• You might not change your mind or implement their advice, but subordinates need to feel that they can express their concerns. Autocratic
leaders can sometimes make team members feel ignored or even rejected.
• Listening to people with an open mind can help them feel like they are making an important contribution to the group's mission.
• Establish Clear Rules & Objective
• In order to expect team members to follow your rules, you need to first ensure that guidelines are clearly established and that each person on
your team is fully aware of them. It is essential the subordinates are aware of what is allowed and what is not.
• Talk and explain the objectives and expectation with subordinates emphasizing how the decisions could help them and the realities of situation.
Even when the decisions might not be something your subordinates agree, they will at least appreciate the effort you made in letting them know
why those decisions were made. Understanding the reasons can make acceptance easier
• Provide Tools
• Once your subordinates understand the rules, you need to be sure that they have the education and abilities to perform the tasks you set
before them. If they need additional assistance, offer oversight and training to fill in this knowledge gap.
• Be Clear, Reliable and Consistent
• Consistently apply and enforce the rules instate a reliable leader perception in which employees are more likely to follow because you have
built trust with them.
• Follow through with punishments and rewards without prejudices or favors to certain people or groups
• Gain trust through leading by example showcasing your expertise and abilities.
• Expect accountability and show accountability.
• Recognize Success
• Your team may quickly lose motivation if they are only criticized when they make mistakes but never rewarded for their successes. Try to
recognize success more than you point out mistakes. By doing so, your team will respond much more favorably to your correction.
Next : How to Be Successful

18. WORLDFAMOUSPATERNALISTICLEADERS
Jose Mourinho
 Jose Mourinho has excelled while using a framework, closely resembles the
paternalistic style.
 Mourinho has shown the paternalistic ability to influence his players to achieve the
best success by supporting and defending his players. He has told players they are
the best, even when they haven’t performed well. He keeps the pressure off the
players and instead takes the hit himself in the pressrooms to allow players to focus
on performance.
 Motivating tactic of ‘us’ versus ‘them’. His team is a family unit that must go out and
fight against the ‘other’.
 Shows resilience, commitment, and the passion to win, which results in his players
looking up to him
 On the other hand, also shows the downside - when loyalty goes, then leadership is
hard. This happened during his last time managing Chelsea. The players stopped
believing in his vision and because he believed, he is right, the respect and loyalty
quickly eroded
Francis Ford Coppola
 Movies industry creates perfect framework for leadership style, while working closely
on set, tight budget and schedule means someone must be in charge.
 In most instances, the chief decision-maker is Coppola himself and once said, “You
can make the decision that you feel is best, but listen to everyone, because cinema is
collaboration.” Understanding your subordinates and make decisions that suit them,
require collaboration even though the final word is with the leader.
 Aims to create a family-like environment without handing over the reins of power.
 Due to his success and his way of treating cast members, he has created an aura
around him. People who start working with him tend to revere him even before. The
paternalistic requirement of loyalty and trust has therefore already been achieved.
Ingvar Kamprad / IKEA
 Founder of IKEA and a solid example of paternalistic leader.
 Kamprad believes that by setting a good example, the subordinates will
trust you more and perform their own work better as well.
 Was purely an effort to create a family business in which the core values
of the company still emphasize the idea of ‘one big family’. Kamprad set
the vision, the goals and operational strategies from the start and in
control of the decisions, however he tried to make decisions with the
‘family’s’ wellbeing at the core of his thinking.
 Wanted workers to have fun, but also to ensure they serve customers to
the best of their abilities.
 He believed by improving employee motivation through caring and
support, you also end up driving the bottom line.
Jack Ma / Alibaba
 Effective strategy in non-Western cultures like China.
 Jack Ma, a paternalistic style leader has created one of the world’s biggest
companies, Alibaba.
 Combination of paternalistic style, charismatic and participative leadership
- the idea of him as the ‘father figure’ remains strong within the company.
 Surrounded with a team that trusts and would do quite a bit to please him.
 Lead by example and ensure subordinates are having fun while working
hard.
 Acts as the unifying force within the company; creating the vision the
organization should work towards

19. Conclusion
1) Paternalistic leadership is another form of authoritarian leadership.
2) The point of focus here is not the decision-making structure, but a big community where the leader is responsible for his subordinates.
3) Paternalistic leader able fabricates an environment of loyalty through his commitment and expertise, which beneficial to his/her
organization.
4) Paternalistic leadership is a powerful framework for ameliorating employees’ productivity and motivation, encouraging efficiency without
impairing employees’ wellbeing.
5) This implicates taking responsibility of the leadership role in being aware of the impact of their behavior on subordinates’ affective states.
6) Beneficial to Lisa due to
• Kinship and togetherness culture that has been introduced and implied by her father induce loyalty and willingness among the
workers.
• The current company culture and Malaysia’s collectivist cultures expect the leader to be concerned about their personal problems
and to support them in their job issues which is similar and adaptive to paternalistic style.
• In respect to the founder, Adam Machine Part employees would not be questioning Lisa authority and able to follow her.
• Most of the workers are senior and financially stable in which money is not their much concern in maintaining job satisfaction.
• Numerous studies found positive relationships between paternalistic leaders’ benevolent treatment and employee attitudes
• Aycan, 2006; H. Y. Chen & Kao, 2009
• Cheng, Huang, & Chou, 2002
• Erben & Güneşer, 2007
• Farh, Cheng, Chou, & Chu, 2006
• Lok & Crawford, 2004; Pellegrini et al., 2010).
“ The better the fit between the perceived person and the leadership prototype, the more likely this person will be seen as the
ideal leader of the employee (Den Hartog et al., 1999). That perception is strongly influenced by the cultural background of the
individual. “
Den Hartog et al., 1999