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RUNNING HEAD: CAPSTONE 1
Capstone: Leadership and the Future
Ron McGary
Lewis University
ORGL: 59500 LT1-FA16 Capstone: Leadership and Future
Dr. Michael Cherry
CAPSTONE 2
SECTION I
Introduction and Summary
GadgetCo is a family-owned large manufacturing company with over five-hundred
employees located in the southwest suburbs of Chicago. They produce electric motors that run
devices from computers to motorized scooters (Lewis University, 2016). Electric motor
production is vital to the company’s overall success. Safety is taken into consideration when
manufacturing these electric motors since they will be used by the public. The customer is placed
at the top of the list when it comes to safety. GadgetCo’s vision and mission is “to create motors
fast enough to meet the demands of their fast-paced customers” (Lewis University, 2016). There
are dilemmas that have a direct conflict with Drew, the Vice-President of Product Development,
he needs to inform upper-management that there may a delay in shipping their new product to a
customer overseas. This will be difficult to convey since this product alone is relied on to support
their company during the 2008 financial crisis.
The 2008 global financial crisis has a direct impact on businesses around the world. The
capital markets in the United States are drowning in debt, and the emergence of the Lehman
Brothers collapse has devastated the domestic economy (Kaya, A., & Herrera, G., 2015). This
drastic financial effect which caused a recession around the World made many managers and
decision makers strategically refine their organizations. It was the lack of work ethic and social
responsibility of upper management that caused such a catastrophe (Levi, 2014). Consequently,
organizations now require their mission and values to change or their company will fail during
this crisis (Nahavandi, 2013). GadgetCo is one of those family-owned businesses that will fail if
they do not change the way the organization is operating.
CAPSTONE 3
Jane is part of the management trainee program at GadgetCo. She had recently joined the
program after five years of good service to the company. Over the last five years she has been
mentored by Drew, and feels as though she is ready to take on added responsibility. Jane is even
more eager now than ever before because they are about to launch a new electric motor that will
help the company pull out of a financially troubling economy. After testing, Jane realizes there
may be something wrong with the electric motor. GadgetCo’s individualistic culture has given
her second thoughts on how to approach her immediate supervisor, Jessie the Director of the
organization. Jane decides to tell her mentor, Drew about the potential failure. Now, it is up to
Drew to inform upper-management about the potential failure of this new electric motor, which
could put GadgetCo in financial ruin.
Family owned businesses are very unique to the United States economy. “Family businesses
are critical to the foundation of our economy. Over sixty-percent of all businesses in the United
States are family owned. In addition, family owned business are significant contributors to the
communities they do business in” (Admin, 2016). There are over five million family owned
businesses in the United States (McGee, 2013). According to Admin, family-owned businesses
create over sixty-percent of jobs within the United States (Admin, 2016). Family Business
Alliance is reporting eighty to ninety percent of all enterprises make-up our economy (Facts and
Figures, 2016). Family owned businesses are essential to the United States economy.
A family owned business is different than most conventional businesses. To emphasize, a
family owned business is defined as the family has considerable control over financial and
managerial areas of the company (Cromie, Stephenson, & Monteith, 1995). Family firm’s have
the tendency to have decision making on a more local level. In addition, some family members
are not supposed to seek the influence or advice from anyone outside of the company (Cromie,
CAPSTONE 4
Stephenson, & Monteith, 1995). GadgetCo will need to reach across the globe in order to survive
in a very competitive global environment. Nevertheless, they will keep leadership at the family
level which, will not push GadgetCo into the mix of global competition. GadgetCo will need to
use leadership theories, concepts, and principles to change their organizational culture to
compete on a global scale. Five of those principles discussed are models of organizational
culture, Borisoff and Victor Five Part Conflict Management Model, transformational leadership,
servant leadership, and mentoring.
Models of Organizational Culture
A model culture is one which serves others (Greenleaf, 2005). It is important to point out
trends in organizational development in today’s global economy. The relevance of cultural
understanding and having the ability to recognize the impact of cultural change is very
important. Leadership must change with culture to prevent organizational failures (Schein,
2010). GadgetCo does have a culture but it is an egalitarian culture (Nahavandi, 2013). Team
work is promoted only when there is an extreme crisis to get a product shipped to a customer.
The culture is all about rewarding the individual which creates conflict within the organization.
Borisoff and Victor Five Part Conflict Management Model
Conflict arises when two or more people disagree with each other because of culture, values
or some kind of incompatibility (Borisoff & Victor, 1998). Conflict is an action in which it
interferes or obstructs with others in their beliefs whether it be religion or some other activity
that prevents an individual to perform their own action (Borisoff & Victor, 1998). In a
manufacturing environment, it is quite distinctive when an individual reward system is present,
because everyone has a competitive barrier toward each other. An egalitarian culture, like
CAPSTONE 5
GadgetCo, is very similar to an individual reward system. This culture does not promote
communication easily. Jane will use this five part conflict model to help break down the
communication barriers between her and Jessie. Jane manages this situation with a unique
professional manner, a manner in which others can learn and use across the manufacturing plant.
Transformational Leadership
Transformational leadership is greatly attributed to organizational effectiveness (Brown, &
May, 2012). Organizations across a wide variety of industries report a strong positive
relationship between the presence of transformational leadership, performance, and other
organizational outcomes (Brown, & May, 2012). In particular, Drew will need to use his
transformational leadership skill-set to help change the culture of GadgetCo. Jane and Jessie will
help but only after they have broken down the barriers that separate them.
Servant Leadership
Servant leaders can be developed over time (Greenleaf, 2005). Although servant leadership is
grown from within the core leadership of the individual, these characteristics can be developed
over time. Servant-leadership, therefore, emphasizes core personal characteristics and beliefs
over any specific leadership techniques (Greenleaf, 2005). Under the mentoring of Drew, Jessie
will need to develop the characteristics of a servant leader to help drive GadgetCo into the global
market; contrast to the leadership style Jessie has been practicing over the years. He will need to
serve the employees so they can feel wanted and valued. “The leadership process is spiritual,
highly emotional and personal, and based on fundamental values such as integrity, caring, and
service to others” (Nahavandi, 2013, p.193). To emphasize, Jessie will need to develop into a
CAPSTONE 6
servant leader over time. In addition, Jessie will need to work with Drew to emulate his servant
leadership qualities.
Mentoring
Mentoring provides many key professional connections to career success (Nahavandi, 2013).
Mentoring is a powerful leader development tool, and in most circumstances will lead to a life-
long supportive relationship between the mentor and the mentee. Jane has been mentored by
Drew for several years now, and she is ready to take on additional responsibility with
GadgetCo’s new product. In addition, Jessie will need to learn the positive effects of mentoring
within an organization from Drew as well.
SECTION II – ESSAY RESPONSE AND LITERATURE REVIEW
Ethical Dilemmas
An ethical dilemma is about crossing our moral beliefs and potentially violating our own
culture. “The study of ethics is about what we should do and what we should be” (Ciulla, 2003
p. xi,). Ethics is the understanding of leadership and how it relates to our daily lives, whether it
be at work or outside of work (Ciulla, 2003).
What are the ethical dilemmas conveyed in this case?
GadgetCo has several ethical dilemmas that will prevent them from a much needed
organizational change. For example, Jane needs to break down her communication barrier to
Jessie. Jane should not feel afraid toward her first line manager, Jessie; even though GadgetCo
has a communication policy that promotes speaking with the immediate supervisor, Jane feels as
if this culture does not support the policy (Lewis University, 2016). Consequently, organizations
CAPSTONE 3
Jane is part of the management trainee program at GadgetCo. She had recently joined the
program after five years of good service to the company. Over the last five years she has been
mentored by Drew, and feels as though she is ready to take on added responsibility. Jane is even
more eager now than ever before because they are about to launch a new electric motor that will
help the company pull out of a financially troubling economy. After testing, Jane realizes there
may be something wrong with the electric motor. GadgetCo’s individualistic culture has given
her second thoughts on how to approach her immediate supervisor, Jessie the Director of the
organization. Jane decides to tell her mentor, Drew about the potential failure. Now, it is up to
Drew to inform upper-management about the potential failure of this new electric motor, which
could put GadgetCo in financial ruin.
Family owned businesses are very unique to the United States economy. “Family businesses
are critical to the foundation of our economy. Over sixty-percent of all businesses in the United
States are family owned. In addition, family owned business are significant contributors to the
communities they do business in” (Admin, 2016). There are over five million family owned
businesses in the United States (McGee, 2013). According to Admin, family-owned businesses
create over sixty-percent of jobs within the United States (Admin, 2016). Family Business
Alliance is reporting eighty to ninety percent of all enterprises make-up our economy (Facts and
Figures, 2016). Family owned businesses are essential to the United States economy.
A family owned business is different than most conventional businesses. To emphasize, a
family owned business is defined as the family has considerable control over financial and
managerial areas of the company (Cromie, Stephenson, & Monteith, 1995). Family firm’s have
the tendency to have decision making on a more local level. In addition, some family members
are not supposed to seek the influence or advice from anyone outside of the company (Cromie,
CAPSTONE 8
Jahanshahi, & Kazi, 2013). Some aspects of 20th century leadership are applicable to the 21st
century, but not all. As trending culture changes over time leadership styles will also change. The
ability to recognize cultural change, developing learning cultures, and the ability to proactively
solve complex problems are the trends of organizational culture.
How would you describe the current culture at GadgetCo?
Being a family-owned business GadgetCo is a very strong, assertive, and committed
organization. A strong culture increases the commitment to the organization and increases the
mutual relationship between employees’ goals and organizational objectives. This is an
important factor for increasing productivity and the level of overall performance. The strong
values of organizational culture will affect performance and productivity. The employee’s
cultural commitment to the organization cannot be so severe that it prevents the development of
new cultural environments and therefore the organization will not be able to change its
behavioral methods as the environment changes (Schein, 2010). GadgetCo’s environment did
effectually change when they decided to go global. This has limited the employee’s environment
for learning, and if they cannot learn from their own surroundings, then the culture will not
change (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013).
Being competitive in the global environment requires team work (Levi, 2014). GadgetCo has
individuals working toward a common goal, but have no smooth internal processes to work
effectively and efficiently. The work ethic of GadgetCo is all about performance, and the words
that are often heard is “all hands on deck” when they are trying to get a product shipped on time
to a customer. This type of attitude toward work is not about team work, but rather it is about
performance based culture will cause conflict among the employees, because the employees are
not working together, they are working against each other.
CAPSTONE 9
Models of Organizational Culture Theories and Principles
On a global scale interaction with other cultures is becoming more critical (Hines, 2008).
“We basically do not know what the world of tomorrow will really be like, except that it will be
really different, more complex, more fast-paced, and more culturally diverse” (Schein, 2010
p.365). If organizations are to change with culture, then we must learn the new culture and adapt
to it in order to survive in a global environment (Schein, 2010).
Cultural knowledge and behaviors are transmitted from generation to generation, and
improved ideas and practices replace those that are less effective (Kim, Jeon, & Park, 2014).
Leaders must be able to recognize changes within their own culture. For example, if there is a
decline in sales and growth within an organization the proactive thinker must take appropriate
action to lead the company into a new direction to prevent failure. The global economy impacts
our culture by what is called the “cultural flow” (Hines, 2008).
Expectations from culture flow is being innovative with new products and services distributed
from practically every corner of the planet. Innovation is a learning culture that organizations
will need to promote growth and stability. A learning culture consists of a community of workers
instilled with a "growth mindset” (Grossman, 2015). People want to apply what they've learned
to help their organization, they also feel compelled to share their knowledge with others. This
also refers to Schein’s philosophy of shared beliefs within organizations (Schein, 2010).
Shared beliefs and values will strengthen an organization (Schein, 2010). Companies with
nimble learners can react quickly to disruptions, adapt to meet the demands of a changing
business climate, and harness a wealth of ideas for new products, services and processes
(Grossman, 2015). “The single biggest driver of business impact is the strength of an
CAPSTONE 10
organization's learning culture”, says Josh Bersin, principal and founder of Bersin by Deloitte in
Oakland, California (Grossman, 2015). Only around one in ten companies have a true learning
culture defined as one that supports an open mindset, an independent quest for knowledge, and
shared learning directed toward the mission and goals of the organization (Grossman, 2015).
Trends in organizational culture are definitely moving toward a learning culture. With the ever-
expanding global economy and the ability to communicate across the globe in seconds, these
factors amplify the awareness of cultural diversity. Effective leaders are increasingly mindful of
these environments and desire to make change for organizational stability (Borisoff & Victor,
1998).
Learning leaders must have faith in people and realistically have the mindset that human
nature is good (Schein, 2010). Other trends include hiring smart and teachable hiring managers
that know how to evaluate candidates for learning. The impact of building a strong cultural
environment within organizations for the future could mean the difference between profit and
loss. There needs to be a solid commitment from all employees with cultural differences for
future success. Studies have shown that the commitment of the employees towards
organizational culture values is an essential mechanism to increase productivity and to move
towards optimal group performance (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013). But
the relationship between organizational culture and performance is complex. Some experts in
management and organization believe that in order to affect the organizational performance the
organizational culture should be a strong culture in the beginning. The three levels of culture are:
artifacts, espoused values and beliefs, and basic underlying assumptions.
Artifacts include items that are seen or used (Schein, 2010). For example, a written procedure
for managing operations and the delivery method would be included as an artifact. GadgetCo has
CAPSTONE 11
the policy of the first step for an employee to do is speak with their supervisor if there is an issue
(Lewis University, 2016). It is obvious that upper management was just thinking of themselves
when writing this policy. It is easy for employees to reach their family member, since it is a
family-owned business.
Basic underlying assumptions include behavior perceptions, thoughts, and feelings (Schein,
2010). Context is one of those behavioral elements. “Context is one of the most important
cultural dimensions (Guffey, & Loewy, p.16, 2010). A low context culture is action oriented and
the leaders of this culture assume that the employee knows very little about the subject matter
and will give them very specific instructions on how to do a certain task (Guffey, & Loewy,
2010). Individual cultures primarily interprets positions and responsibilities in terms of personal
accomplishment.
Basic underlying assumptions are the repeated actions within a group (Schein, 2010). Once
the assumptions are adopted and used throughout a process, it basically becomes second nature
for the remaining time; anything outside of those actions will be undeniably inconceivable. This
would be the same for GadgetCo, it is Jane and Drew’s underlying assumption to report this
failure of an electric motor. This would violate the basic underlying assumptions of what has
been done in the past. This is what is called the preferred solution among several basic
alternatives (Schein, 2010).
The ideals, goals, values, and aspirations would include the espoused beliefs and values
(Schein, 2010). For example, in a group setting individuals working on a problem will have
suggestive ideals and rational to adopt for the rest of the group. The individual influencing will
be the leader in most cases, because they are the early adopters for their ideals. Until that
CAPSTONE 4
Stephenson, & Monteith, 1995). GadgetCo will need to reach across the globe in order to survive
in a very competitive global environment. Nevertheless, they will keep leadership at the family
level which, will not push GadgetCo into the mix of global competition. GadgetCo will need to
use leadership theories, concepts, and principles to change their organizational culture to
compete on a global scale. Five of those principles discussed are models of organizational
culture, Borisoff and Victor Five Part Conflict Management Model, transformational leadership,
servant leadership, and mentoring.
Models of Organizational Culture
A model culture is one which serves others (Greenleaf, 2005). It is important to point out
trends in organizational development in today’s global economy. The relevance of cultural
understanding and having the ability to recognize the impact of cultural change is very
important. Leadership must change with culture to prevent organizational failures (Schein,
2010). GadgetCo does have a culture but it is an egalitarian culture (Nahavandi, 2013). Team
work is promoted only when there is an extreme crisis to get a product shipped to a customer.
The culture is all about rewarding the individual which creates conflict within the organization.
Borisoff and Victor Five Part Conflict Management Model
Conflict arises when two or more people disagree with each other because of culture, values
or some kind of incompatibility (Borisoff & Victor, 1998). Conflict is an action in which it
interferes or obstructs with others in their beliefs whether it be religion or some other activity
that prevents an individual to perform their own action (Borisoff & Victor, 1998). In a
manufacturing environment, it is quite distinctive when an individual reward system is present,
because everyone has a competitive barrier toward each other. An egalitarian culture, like
CAPSTONE 13
today’s highly competitive world economy. So it is extremely important to have people working
in harmony as possible so the effectiveness can be turned into profits (Rekar, 2001).
GadgetCo will need to change their own policies, procedures, and processes (Schein,
2010). Traditionally the perspective of independence and freedom from control is the focus of
American companies, including GadgetCo (Guffey, & Loewy, 2010). These types of companies
believe that initiative, self-assertion, and competence result in personal achievement (Guffey, &
Loewy, 2010). With these beliefs they embrace of what is called low context cultures (Guffey, &
Loewy, 2010). GadgetCo will need to evolve over time and move away from this mindset.
GadgetCo is a multicultural organization that has communication conflicts between each
department. In addition to communication, ethics in manufacturing require employees to discuss
the conflicts and come to a responsible agreement. Organizational leaders are charged with the
responsibility of maximizing shareholder profit while upholding a high standard in business
practices (McCann, & Holt, 2009). Business practices and ethics are embedded into an
organization and it will reap the profits that it has worked so hard for. Ethical leadership was
found to be preferred by profitable organizations (McCann, & Holt, 2009). It is ethical for Drew
to inform upper-management that the new electric motors have failed during the testing process,
since this does affect their profits.
Cultural change is an evolutionary process (Schein, 2010). The employees need to accept and
share basic assumptions over a period of time, this is their shared values. These new norms may
take the form of not being responsible or caring for the right thing. It would be up to the 21st
century leader to recognize and develop guidance and direction to avoid these traps.
CAPSTONE 14
GadgetCo’s leaders will need to recognize the importance of cultural change to transform into
a productive environment. There are proven methods of assessing the culture within an
organization. Before assessing an organization, it would be professional to ask for permission to
do an assessment in the first place (Schein, 2010). Culture assessments are appropriate for
several uses as long as they are executed well (Kerth, n.d.). There are ethical issues that need to
be adhered to as a professional. “The outside professional whether a consultant or ethnographer,
must make a separate assessment and sometimes limit his or her own interventions to protect the
organization” (Schein, 2010, pg. 186). Schein is simply implying that the person performing the
culture analysis might be the best professional, but there are limitations to what they are given
permission to do (Schein, 2010). It would be unethical to have access into a culture setting more
than what is necessary and make it public information.
Assessments are needed for cultural change to determine specific dimensions that correlate to
performance (Schein, 2010). Measuring the performance is the basis in implementing an
assessment. If performance is hurting then it is a clear indication the bottom line is being hurt as
well. Culture surveys are appropriate for developing an organizational profile based on the
employees’ perceptions for use in stimulating deeper cultural analysis (Schein, 2010).
Employees behave and react based on their perceptions (Brown, 2016). Learning their
perceptions may disclose subcultures that were not known. Changing from one culture to another
does not happen simultaneously. This will require a transformational change within GadgetCo.
Transformational Leadership Principles
Effective organizations use transformational leadership strategies in the culture (Schein,
2010). There is a strong relationship between transformational leadership and productivity
(Brown & May, 2012). Managers and first line-supervisors in manufacturing organizations
CAPSTONE 15
realize that without transformational leadership productivity will lag behind (Brown & May,
2012). Brown and May conducted an observation study that revealed transformational leadership
does increase the positive effects of organizational outcomes (Brown & May, 2012). This was
enough to compel and persuade upper management in another organization to make a change in
their organizational culture (Brown & May, 2012). The results were enough to consider all
employees for the cultural change within the organization, which included managers,
supervisors, and hourly workers (Brown & May, 2012). Transformational leadership requires
change. The elements of transformational leadership are charisma and inspiration, intellectual
stimulation, and individual consideration.
Transformational leadership encourages employees to develop a sense of foresight and
motivation toward their own responsibilities. Transformational leadership embraces employees
to renew their commitment to the company’s mission and values (Nahavandi, 2013).
Transformational leadership also empowers new ideas and encouragement to bring about
organizational change. Coupled with intellectual stimulation through a dialogue with
communications employees will have a sense of ownership as well (Nahavandi, 2013).
Applied Transformational Leadership
To effect cultural change trust and communication is vitally important to get established
within the organization. The three stakeholders, Drew, Jane, and Jessie need to develop a better
communication process between each other. The feeling that Jane has toward Jessie is about
trust. Consequently, Jessie has a competitive attitude between the two. This creates a conflict
between the two and a breakdown of trust. For example, Jessie has an odd feeling about Jane
meeting Drew on different occasions and discussing the work environment. “Cooperation is
encouraged by trust; competition leads to a breakdown in trust” (Levi, 2014, p.93). Jessie needs
CAPSTONE 16
to convey a message with trust. Communication needs to take place, but it has to be initiated by
Drew.
Drew has the ability to motivate employees to solve problems by challenging them to use
their critical thinking skills. Critical thinking skills empowers them to be more creative, which is
part of transformational leadership (Nahavandi, 2013). Since Drew is the mentor of Jane it would
fit Drew’s personality to sit down and discuss with them the advantages of a solid team working
together. By sitting down with each other will create a bond and trust. Honesty is the pillar of all
organizations to survive in a global economy (McCann, & Holt, 2009). Drew’s enthusiasm for
the company and most of all his integrity unites people naturally. Just having a moral leader
presence will unite and bring people together. The leadership process is ethical if the people in
the relationship freely agree that the intended changes fairly reflect their mutual purposes
(McCann, & Holt, 2009).
Trust creates a significant bond between leaders and followers (Nahavandi, 2013). Trust is a
precondition of any alliance or mutual understanding (Ciulla, 2003). This must be brought up
between the employees prior to any conversations on a personal level. Drew does not have the
positional power over Jessie, but he has the attitude of a servant leader to communicate with
Jessie about working together. Jane’s personality is a “feeling” characteristic which she is
sensitive to certain discussions. It would be up to the leader to use discernment in reaching a
degree of trust while having emotional discussions with employees and to use calculated
outcomes of the confidential discussions.
GadgetCo will require a large scale change in order to accept the required change needed to
compete on a global scale. It is up to Drew and the others to convince management to make this
change from altruism to a culture of charisma, inspiration, and intellectual stimulation
CAPSTONE 5
GadgetCo, is very similar to an individual reward system. This culture does not promote
communication easily. Jane will use this five part conflict model to help break down the
communication barriers between her and Jessie. Jane manages this situation with a unique
professional manner, a manner in which others can learn and use across the manufacturing plant.
Transformational Leadership
Transformational leadership is greatly attributed to organizational effectiveness (Brown, &
May, 2012). Organizations across a wide variety of industries report a strong positive
relationship between the presence of transformational leadership, performance, and other
organizational outcomes (Brown, & May, 2012). In particular, Drew will need to use his
transformational leadership skill-set to help change the culture of GadgetCo. Jane and Jessie will
help but only after they have broken down the barriers that separate them.
Servant Leadership
Servant leaders can be developed over time (Greenleaf, 2005). Although servant leadership is
grown from within the core leadership of the individual, these characteristics can be developed
over time. Servant-leadership, therefore, emphasizes core personal characteristics and beliefs
over any specific leadership techniques (Greenleaf, 2005). Under the mentoring of Drew, Jessie
will need to develop the characteristics of a servant leader to help drive GadgetCo into the global
market; contrast to the leadership style Jessie has been practicing over the years. He will need to
serve the employees so they can feel wanted and valued. “The leadership process is spiritual,
highly emotional and personal, and based on fundamental values such as integrity, caring, and
service to others” (Nahavandi, 2013, p.193). To emphasize, Jessie will need to develop into a
CAPSTONE 18
HOW TO HANDLE THIS CASE ANALYSIS: NEXT STEPS FOR DREW
How should Drew handle the situation, both immediate and long-term?
The immediate next steps for Drew would have to be looking into the organizational mission
and values. The mission and values reflect the actions of the organization (Bryson, 2011).
Before this product ships to the customer, Drew, Jane, and Jessie need to sit and discuss the
opportunities that lie before them. Certainly after the discussions they will need to test the
product one more time to be certain if there is actually a potential failure.
GadgetCo’s mission is to “create motors fast enough to meet the demands of their fast-paced
customers” (Lewis University, 2016). Drew shares this vision and strategy with Jessie and Jane,
they will see the end in mind as they move forward (Covey, 1989). Jane and Jessie must share
and realize the same vision of the organization, including the manufacturing process of electric
motors.
Drew’s next step is to communicate to them that product failures do not surface immediately.
This is part of the reason why they do so much testing. He must convince upper-management to
retest the products again or risk shipping an inferior product to a global customer.
Drew will need to persuade upper management to redefine their mission statement for
GadgetCo’s new servant leader culture. The mission statement must include information that
clearly identifies who they are (Bryson, 2011). Clarity is paramount because it is the most
persuasive way to influence an organization or other individuals to send a message of who they
really are (Bryson, 2011). Once clarity is defined within the organization, everyone will work
toward the same goal.
How would you suggest that Drew interact with Jane?
CAPSTONE 19
Drew’s interaction with Jane is unique, because of his natural ability to mentor, inspire, and
motivate. He wants customers to see GadgetCo as a respectful organization with high values for
ethics and customer relations (Lewis University, 2016). When Drew sits down and discusses the
options with Jane they will have to share the same assumption for the entire company (Schein,
2010). Jane will need to agree on the shared assumptions, mission of the organization, and
strategy (Schein, 2010). For example, Jane will need to create an atmosphere that generates trust
and cooperation (Borisoff & Victor, 1998). Jane will need to understand that implementing
change within organizations often leads to conflicts (Raza & Standing, 2011).
How would you suggest that Drew interact with Jessie?
Jessie is an active impulsive employee, which causes defensive behavior from others such as
Jane. This is one of the reasons why Jane has a communication barrier, and she does not know
what Jessie might do next (Borisoff & Victor, 1998). The best course of action for Drew to do
with Jessie, even though Jessie has positional power, Drew needs to establish a mentoring
program with Jessie.
Mentoring
Mentoring does lead individuals to success. Mentoring programs are essential to support the
leadership for professionals to prepare them to lead in the functional areas of the manufacturing
plant (McGary, 2016). Mentoring and leadership go hand-in-hand, and is about paving the way
for new leadership. “Mentors are extraordinary leaders with exceptional natural character”
(McGary, 2016, p.2).
“Specific leadership skills are fine-tuned when mentors are working with their protégé’s. This
enabler helps them embrace their own career so they can adapt and engage corporate culture
CAPSTONE 20
easily” (McGary, 2016, p.2). “Tailoring and inspiring others to improve their quality of life is
one method of breaking the daily routine. Career development has become one of the
beneficiaries of an effective mentoring program. The mentor expands their knowledge base as
they teach the individual. Mentoring leads into interposition between personal learning and
career development which is the mechanism for a sustained career” (McGary, 2016, p.3).
“Peer leadership empowers protégés to mentor their own peers. Peer leadership uses
technology within the mentoring program such as twitter, snapchat, and Facebook” (McGary,
2016, p.6). “Mentoring programs produce organizational support and advises individuals that not
only have social problems, but work ethic issues as well. Being a mentor takes courage and
commitment. The mentor has to have the qualities and abilities to confer to the protégé”
(McGary, 2016, p.7). To emphasize, a mentoring program is very important for all individuals.
“The current trend is many organizations are using mentoring programs as a career development
tool for the mentor and the protégé” (McGary, 2016, p.7). Mentoring will alleviate ethical
dilemmas within an organization, create a sense of trust, and streamline communication
(McGary, 2016).
Jessie has the influence as a Manufacturing Director, therefore he can work with Drew in
gaining new perspectives during the mentoring process. Even though it may be unusual, there
have been cases where an individual with positional power is mentored by a person with a lower
position or an equivalent position power. This is the message Drew needs to send to Jessie. A
message that focuses on shared information. The main ingredient to create a psychologically safe
team environment is to encourage and embrace communication and collaboration for, with team
members (Levi, 2014).
CAPSTONE 21
The application of mentoring is working with others freely. Both individuals need to be open-
minded and willing to work with each other. Drew is an extraordinary leader, and mentors are
extraordinary people who want to serve others.
What leadership style or approach should Drew use?
Servant Leadership
The leadership approach to mentor Jessie is the approach of a servant leader. Greenleaf
references using the person who is serving others as their leaders (Greenleaf, 2005). Drew is
exercising servant leadership toward Jessie. Instead of using “Leader as Servant” Greenleaf is
suggesting to use “Servant as a Leader” for the purposes of the leader is supporting and serving
other people (Greenleaf, 2005). Greenleaf does speak of a pyramid, but his concept of a pyramid
is upside down, which is opposite to our own perceptions (Greenleaf, 2005). For example, in
most organizational pyramids it is turned up to the point in the upward position. Greenleaf wants
us to imagine turning the pyramid with the point down and the leader is supporting others from
the point up, and the employees fill the open area of the upside down pyramid, with the leader
supporting them from the bottom point; the servant leader supports the people.
Drew will need to speak with Jessie and ask him to reflect on his own actions as a leader
within GadgetCo; this is referred to as the Reflection-Action Model (Rotelli-Boysen, 2015).
The concept of the Reflection-Action Model is in regards into what the individual leader reflects
on toward their actions as a leader. They must have the right aptitude and perseverance. These
are the same characteristics that are required of a servant leader. We are all leaders within our
own right, but to be effective is the real measure of a leader. The Reflection-Action Model is a
process to be honest and challenge ourselves. The model offers us an opportunity to grow in our
CAPSTONE 6
servant leader over time. In addition, Jessie will need to work with Drew to emulate his servant
leadership qualities.
Mentoring
Mentoring provides many key professional connections to career success (Nahavandi, 2013).
Mentoring is a powerful leader development tool, and in most circumstances will lead to a life-
long supportive relationship between the mentor and the mentee. Jane has been mentored by
Drew for several years now, and she is ready to take on additional responsibility with
GadgetCo’s new product. In addition, Jessie will need to learn the positive effects of mentoring
within an organization from Drew as well.
SECTION II – ESSAY RESPONSE AND LITERATURE REVIEW
Ethical Dilemmas
An ethical dilemma is about crossing our moral beliefs and potentially violating our own
culture. “The study of ethics is about what we should do and what we should be” (Ciulla, 2003
p. xi,). Ethics is the understanding of leadership and how it relates to our daily lives, whether it
be at work or outside of work (Ciulla, 2003).
What are the ethical dilemmas conveyed in this case?
GadgetCo has several ethical dilemmas that will prevent them from a much needed
organizational change. For example, Jane needs to break down her communication barrier to
Jessie. Jane should not feel afraid toward her first line manager, Jessie; even though GadgetCo
has a communication policy that promotes speaking with the immediate supervisor, Jane feels as
if this culture does not support the policy (Lewis University, 2016). Consequently, organizations
CAPSTONE 23
These characteristics are service to others, a holistic approach to work, promoting a sense of
community, and sharing in decision-making (Greenleaf, 2005). All of these characteristics are
part of the development process of any individual who feels passionate about people and their
position within their organization (Greenleaf, 2005). Greenleaf has put it in exact terms, “Men
grow taller when those who lead them empathize, and when they are accepted for who they
are.”(Greenleaf, 2005). Servant leadership will need to be used in 21st century organizations to
compete on a global scale.
How could Drew use communication, change, leadership and conflict management skills to
handle this situation?
Change does not come without resistance (Nahavandi, 2013). The leadership value of Drew,
Jane, and Jessie will need to come into action when converting from one organizational culture
to another. Drew can help change the culture by role modeling and by setting the direction and
vision for the organization (Nahavandi, 2013). To do this, he must use a proven modeling
system. The method of managing such a huge change is using the five part Borisoff and Victor
Conflict Management Model.
Borisoff and Victor Five Part Conflict Management Model
There are many authors who describe and define conflict in many ways. Nonetheless, the
same words are repeated in most of their definitions: “differences, expressed, struggle,
incompatible, frustration, interference, perception, and interdependence” (Borisoff & Victor,
1998, p.2).
The process of conflict management involves five steps in not resolving the conflict, but to
discuss and manage the conflict (Borisoff & Victor, 1998). The five steps Drew is taking to
CAPSTONE 24
break down that communication barrier are assessment, acknowledgement, attitude, action, and
analysis (Borisoff & Victor, 1998).
The assessment stage is managing the differences between employees (Borisoff & Victor,
1998). There are several aspects to the assessment stage which include the individual qualities
and their relationship with each other. There are many causes to conflict, but the nature of the
conflict must be known to manage the conflict. Clarity and the determination of the
communication process must be evaluated to best lead into the next stage which is
acknowledgement (Borisoff & Victor, 1998).
Acknowledgement is also as crucial as the assessment stage in the five part conflict
management model. Acknowledgement is about being aware of the other individual’s behaviors.
There will be cultural differences because of basic assumptions of the person managing the issue
(Borisoff & Victor, 1998). Which leads to the next step which is the attitude of the other party.
The attitude is taken into consideration of the other party, for example, conciliation and
compassion must be taken into account to properly manage the conflict. To actively gain an
insight into the other person stereotyping must be dropped and the conflict must be approached
with an open mind (Borisoff & Victor, 1998). Once the mind is clear of any biases then it is time
take action, which the next step in the Borisoff and Victor Five Part Conflict Management
Model.
Action is the integration of all the other previous stages of the five part conflict model
(Borisoff & Victor, 1998). Communication is a large part of the action step. Without proper
identification of communication non-verbal and verbal cues the action will be useless. The
proper action is the understanding of each step and the ability to apply each step to be successful
CAPSTONE 25
(Borisoff & Victor, 1998). Although action is the step in applying the knowledge of each part of
the conflict management model, but an analysis of each step is crucial as well.
An analysis should be taken during each step anyway to be sure the proper application of each
step (Borisoff & Victor, 1998). The analysis is looking for the long-term effects of the situation.
Organizational change will need to take place in gradual steps, and with each step of the model
implemented with proper action. In every culture there will be conflict it really depends on how
we manage the conflict will determine our success (Borisoff & Victor, 1998).
The situation with GadgetCo involves Drew, Jane, and Jessie. Drew has already mentored
Jane over the last five years. Jane has used the five part conflict model to help her understand the
role she plays and to help understand Jessie as well.
Applied Borisoff and Victor Conflict Management Model
The first step in conflict management is assessment. Assessment can be taken in numerous
methods, including typewatching. Typewatching is the ability to watch a person and decipher
their personality type, just by watching their behavior. It is a constructive response to name-
calling (Kroeger, & Thuesen, & Rutledge, 2002). Typewatching can increase understanding and
communication between employees (Kroeger, & Thuesen, & Rutledge, 2002). By typewatching
an individual can learn the individual traits, causes of conflict, clarification of the other person in
regards to their goals and objectives, and how they communicate with others (Borisoff & Victor,
1998).
Jane’s assessment of Jessie through typewatching has given her the advantage in how to
interact with him. Jane now has an advantage in breaking down the communication barrier to
Jessie. It is not in Jessie’s character to initiate the process of improvement, because he is there to
CAPSTONE 26
get information to his advantage within the company, this is how he manages to get things done.
Jane uses these attributes of Borisoff and Victor’s five part conflict management model to help
her understand Jessie so she can break down the communication barrier between the two
(Borisoff & Victor, 1998).
Jane acknowledges Jessie’s culture of “all hands on deck” and individual performance. She
will be able to understand his beliefs and ideals to understand his way of doing things within the
company. By acknowledging his culture, she will be able to make sense of the “why” he does the
things that he does. Prior to understanding and acknowledging Jessie, she felt a high level of
anxiety, which is the reason why she went to Drew for advisement (Borisoff & Victor, 1998).
Jane’s personality type is feelings and compassionate toward others. This gives her the virtue
of conciliation with Jessie. In the past, she may not have had the courage to do this if it had not
been for Drew’s effective mentoring. Mentoring presents itself to encourage others to do some of
the things they did not have the audacity to do before (McGary, 2016). Strengthened by Drew’s
effective mentoring, Jane will face Jessie and acknowledge his culture. Her new attitude of open-
mindedness and to suspend stereotyping will develop her management career further (Borisoff &
Victor, 1998).
Her next step in working with Jessie is to put everything into action; after all, taking action is
the goal of conflict management (Borisoff & Victor, p.5 1998). This is a very crucial stage
because Jane now has to set aside some of her beliefs, without compromising those beliefs, to
achieve her goal of working and communicating with Jessie. This valuable lesson enables her to
collaborate with the like-minded employees at GadgetCo, if she is in fact to become and
effective leader after the management trainee program. Borisoff and Victor’s five step conflict
CAPSTONE 7
have serious leadership issues when employees inform their managers of simple truths and doing
what is morally right; such as, the disclosure of potential defects that will cause employees to get
fired or not promoted (Wren, 1995). The same goes with Drew as he contemplates a strategic
decision to communicate the testing failures to his boss. Drew and Jane will need to embark on
communication practices, such as intellectual stimulation, which is part of transformational
leadership to help break-down the barriers between Jane and Jessie (Nahavandi, 2013).
The baseline of ethical dilemmas is culture (Schein, 2010). Jessie is protecting his culture
within GadgetCo, because he thinks he is doing what is right. In essence, GadgetCo is a
multicultural organization which does not empower their leadership (Schein, 2010). The main
problem with multicultural organizations is there are so many assumptions and beliefs within the
organization the employees think that they are right and everyone else is wrong, and so the
conflict begins (Schein, 2010).
The impact of this leadership scenario is GadgetCo will not build a well unified organization
to support team work. This will lead into a continuous breakdown in the communication process.
Being a five-hundred employee operation, GadgetCo needs to encourage their own
communication policies to sustain in a competitive global market.
Organizational Culture
The 21st century leader must be proactive in solving problems (Wren, 1995). Leaders must
recognize their own cultural climate to solve these problems. An organization must be a learning
culture to recognize their cultural surroundings. Looking ahead into the 21st century companies
will need strong cultures to build pathways to excellence. Studying and learning about
leadership is variable, which means leadership is always changing (Gogheri, Nawaser, Vesal,
CAPSTONE 28
challenge, even if upper-management is in agreement. With this change will be an enormous
amount of resistance (Nahavandi, 2013). Idealized influence and charisma is the major
component in helping this change, move forward (Brown & May, 2012). Drew is an
extraordinary leader and he has these characteristics to see the changes come to fruition. The first
step is getting management onboard with the idea of a cultural assessment. GadgetCo is an
individualistic culture, but they need to understand on how their communication has broken
down within the plant. In addition, a culture inventory is the part of the first step in finding
communication problems (Kerth, n.d.).
The OCI (Organizational Culture Inventory) is a good tool to have when measuring
employees to have certain skills and mental attitudes toward the company. The OCI measures the
performance of individuals or groups to clearly indicate if they are a fit for the organization
(Human Synergistics, 2012). The owner of the organization would want a team that works
together and shares their vision of the company. The OCI helps the owner, or whoever is
initiating these surveys, to aid them in creating a company as they see it. If there are areas of
concern that could affect the organization, the OCI would identify those problem areas and
provide a reliable solution. This is better than releasing those individuals initially; however, if
those employees cannot be molded within the company, then that may be the organization’s only
choice. One huge drawback for the OCI is that the survey does require an outsider to help
interpret the results (Schein, 2010). The selection of the outsider must be considered
thoughtfully.
“The OCI is the showing of the shared values guiding how members of an organization interact
and work” (Schein, 2010, p. 170). This would involve the strategic direction, vision, and how the
employees are involved (Human Synergistics International, 2012). Comparative data will give
CAPSTONE 29
direction in determining whether a company is strong enough to build from their own culture and
whether to add other cultures within the organization and still be able to still maintain minimal
disruption.
Moving forward is seeing servant leadership being implemented throughout the plant. Jessie
and Jane will be able to share their assumptions and ideas to others, thus creating a culture of
helping and continuing the mindset of a servant-leader. This outlook will fuse with other
departments which will lessen future conflicts.
SECTION III – SUMMARY AND CONCLUSION
The need for leaders in the twenty-first century is of the utmost concern for every
organization (Wren, 1995). Wren has noted “the gaps of leadership and the failure to grasp the
essence of leadership to the modern age” (Wren 1995, pg.9). There have been men placed in
leadership roles in manufacturing and fail to motivate, strive, and compete effectively with
surrounding competitors. This is because these first-line managers are not thinking like a leader
(Wren, 1995). If someone is placed in a leadership role, and they fail as a leader it is because
they were not effective leaders in the first place. They were placed in those roles because of
politics and they have failed miserably. This is the type of leadership in family owned
businesses.
Leaders inspire and take charge with persuasion. Inspiration could come from a simple “thank
you”. Inspiration can come from a painting or in some cases, a visit to a leadership valued
internet site. According to the Oxford dictionary, ‘inspiration means the process of being
mentally stimulated to do or feel something creative” (Waite, Lindberg, Braham, & Jewell, 2010,
p. 420). The need for leaders is so relevant that we do not even see the need for them; we are
CAPSTONE 30
short-sighted to this fact. We need leaders who see the vision, mission, goals, and objectives
within organizations (Williams, 2013).
Summary of steps that will be taken to address the issues raised
The communication barriers is now torn down through collaboration and understanding
each individual’s personality and character. Drew will make no hesitation to inform upper
management of the potential failure of the new electric motor. His natural leadership
characteristics, such as integrity, will drive him to do what he will say he will do. By using
cultural assessments such as the OCI, a new culture of shared assumptions and beliefs will
continue to emerge and grow as a united company. Conflicts are solved through a step-by-step
process through the Borisoff and Victor Conflict management model (Borisoff & Victor, 1998).
Jessie is a new leader under the commitment of Drew’s mentoring and guided counsel.
Manufacturing floor employees are stunned by Jessie’s growth in servant leadership, his entire
attitude toward people, and his activities has changed inside and outside of work.
By working together and collaborating with the design team, engineering, and manufacturing
they can come to a resolve on the product issue and still produce a safe product for the public.
When a customer’s visit for a plant tour they will not see people scurrying around with the
attitude of “all hands on deck”, but rather a culture of serving others on the manufacturing floor.
Their new philosophy and culture will be implemented from their new mission statement
(Bryson, 2011). This is a crystal clear view of model organizational culture. A company that
serves their employees as well as their external stakeholders.
CAPSTONE 31
Discuss what this case may imply about effective leadership
Effective leadership is about the outcome (Nahavandi, 2013). The leader must have the ability
to persuade others to get the assigned task and goals accomplished. Drew has the insight and
persuasion power to inform upper management of the predicament that they are in. Drew has the
ability to recognize what is missing and bring it to life. He brings it to life through persuasion
and effective leadership. Effective leadership has three main elements: goal achievement, smooth
internal processes, and external adaptability (Nahavandi, 2013). The effectual responses from
Drew’s action are the commitment to change the organizational culture, changing the overall
leadership style of the entire organization, and providing an effective means of all employees to
communicate. These are not only his goals, but it is the goals of GadgetCo.
The outcome of effective leadership demonstrated by Drew is the commitment to
organizational change. GadgetCo has realized, now that after assessing the overall cultural
structure that it is time for a needed change. Obviously family members thought the organization
was working just fine. But in fact, it took an effective leader to bring the real situation to reality.
A person who understands change transforms key stakeholders to gain approval throughout the
organization.
Cultural assessments are necessary to realize the working organizational structure within
GadgetCo (Schein, 2010). The results of the culture survey will inform upper-management to
take on a transformational leadership change. With the help of Jane and Jessie, Drew has
changed the organization to produce quality products, with the result of addressing the
immediate needs of their customers (Nahavandi, 2013).
CAPSTONE 8
Jahanshahi, & Kazi, 2013). Some aspects of 20th century leadership are applicable to the 21st
century, but not all. As trending culture changes over time leadership styles will also change. The
ability to recognize cultural change, developing learning cultures, and the ability to proactively
solve complex problems are the trends of organizational culture.
How would you describe the current culture at GadgetCo?
Being a family-owned business GadgetCo is a very strong, assertive, and committed
organization. A strong culture increases the commitment to the organization and increases the
mutual relationship between employees’ goals and organizational objectives. This is an
important factor for increasing productivity and the level of overall performance. The strong
values of organizational culture will affect performance and productivity. The employee’s
cultural commitment to the organization cannot be so severe that it prevents the development of
new cultural environments and therefore the organization will not be able to change its
behavioral methods as the environment changes (Schein, 2010). GadgetCo’s environment did
effectually change when they decided to go global. This has limited the employee’s environment
for learning, and if they cannot learn from their own surroundings, then the culture will not
change (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013).
Being competitive in the global environment requires team work (Levi, 2014). GadgetCo has
individuals working toward a common goal, but have no smooth internal processes to work
effectively and efficiently. The work ethic of GadgetCo is all about performance, and the words
that are often heard is “all hands on deck” when they are trying to get a product shipped on time
to a customer. This type of attitude toward work is not about team work, but rather it is about
performance based culture will cause conflict among the employees, because the employees are
not working together, they are working against each other.
CAPSTONE 33
References
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USA. Family Enterprise USA. Retrieved 21 November 2016, from
http://www.familyenterpriseusa.com/family-businesses/family-businesses-contribution-u-
s-economy/
Borisoff, D. & Victor, D. (1998). Conflict management: A Communication skills approach.
Boston, Mass.: Allyn and Bacon.
Brown, Sherle., (2016). The value of culture Assessment.
https://lewisuniversity.blackboard.com/webapps/discussionboard/do/message?action=list
_messages&forum_id=_206957_1&nav=discussion_board_entry&conf_id=_140005_1&
course_id=_136518_1&message_id=_3368617_1#msg__3368617_1Id
Brown, W., & May, D. (2012). Organizational change and development. The Journal of
Management Development, 31(6), 520-536.
doi:http://dx.doi.org/10.1108/02621711211230830
Bryson, J. (2011). Strategic Planning for Public and Nonprofit Organizations: A Guide to
Strengthening and Sustaining Organizational Achievement (4th Edition). Jossey-Bass.
Ciulla, J. (2003). The ethics of leadership. South Melbourne, Australia: Thomson/Wadsworth.
Covey, S. (1989). The 7 Habits of Highly Effective People. Powerful Lessons in Personal
Change. Simon & Schuster. New York, NY.
Cromie, S., Stephenson, B., & Monteith, D. (1995). The management of family firms: An
empirical investigation. International Small Business Journal, 13(4), 11. Retrieved from
CAPSTONE 34
http://ezproxy.lewisu.edu/login?url=http://search.proquest.com/docview/235820887?acco
untid=12073
Cultural Intelligence. (2016). Harvard Business Review. Retrieved 25 November 2016, from
https://hbr.org/2004/10/cultural-intelligence.
Facts and Figures. (2016). Fbagr.org. Retrieved 21 November 2016, from
http://fbagr.org/index.php?option=com_content&view=article&id=117&Itemid=75
Gogheri, A. S., Nawaser, K., Vesal, S. M., Jahanshahi, A. A., & Kazi, R. (2013). Which
organizational culture moves towards organizational excellency. Asian Social Science,
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Greenleaf, R. (2008). The servant as leader. Westfield, IN: Greenleaf Center for Servant
Leadership.
Grossman, R. J. (2015). A culture of learning. HRMagazine, 60(4), 36-40,42. Retrieved from
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Guffey, M. & Loewy, D. (2010). Essentials of business communication. Mason, OH: South-
Western/Cengage Learning.
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Retrieved from
CAPSTONE 35
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untid=12073
Human Synergistics International (2012). Organizational Culture Inventory: Identify your
organization’s culture and learn how to turn it into a competitive advantage. Retrieved
from http://www.humansynergistics.com/docs/default-source/product-info-sheets/oci-
product-info-sheet.pdf?sfvrsn=10
Kaya, A., & Herrera, G. (2015). Why the 2008 crisis was a bad crisis for new ideas. Journal of
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Kerth, S. (n.d.). Cultural analysis week 3 lecture notes [PowerPoint slides]. Retrieved from
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Kroeger, O., Thuesen, J.M., Rutledge,H.(2002). Type Talk at Work, How the 16 Personality
Types Determine Your Success on the Job. Dell Publishing. New York, NY.
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CAPSTONE 36
Mccann, J., & Holt, R. (2009). Ethical leadership and organizations: An analysis of leadership in
the manufacturing industry based on the perceived leadership integrity scale. Journal of
Business Ethics, 87(2), 211-220. doi:http://dx.doi.org/10.1007/s10551-008-9880-3
McGary, R. (2016, August 10). A Mentoring Program for Young Professionals; A
Hypothesis Research Paper [Scholarly project]. Retrieved August 10, 2016.
McGee, T. (2013). Deloitte. Perspectives on family-owned businesses, Governance and
succession planning (1st ed., pp. 1-24). Deloitte Development, LLC. Retrieved from
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Deloitte%20Growth%20
Enterprises/us-dges-fobgovernanceandsuccession-052413.pdf.
Nahavandi, A. (2013). The Art and Science of Leadership. San Diego: Pearson. 7th edition.
Perry, J. T., Ring, J. K., Matherne, C., & Markova, G. (2015). Ethical human resource practices
from the perspective of family ownership. American Journal of Entrepreneurship, 8(1),
21-43. Retrieved from
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Raza, S. A., & Standing, C. (2011). A systemic model for managing and evaluating conflicts in
organizational change. Systemic Practice and Action Research, 24(3), 187-210.
doi:http://dx.doi.org/10.1007/s11213-010-9186-0
Rekar, C. D. (2001). A team development model based on myers briggs personality types and
action research to improve team performance and participant satisfaction (Order No.
NQ58906). Available from ProQuest Dissertations & Theses Full Text. (304768338).
CAPSTONE 9
Models of Organizational Culture Theories and Principles
On a global scale interaction with other cultures is becoming more critical (Hines, 2008).
“We basically do not know what the world of tomorrow will really be like, except that it will be
really different, more complex, more fast-paced, and more culturally diverse” (Schein, 2010
p.365). If organizations are to change with culture, then we must learn the new culture and adapt
to it in order to survive in a global environment (Schein, 2010).
Cultural knowledge and behaviors are transmitted from generation to generation, and
improved ideas and practices replace those that are less effective (Kim, Jeon, & Park, 2014).
Leaders must be able to recognize changes within their own culture. For example, if there is a
decline in sales and growth within an organization the proactive thinker must take appropriate
action to lead the company into a new direction to prevent failure. The global economy impacts
our culture by what is called the “cultural flow” (Hines, 2008).
Expectations from culture flow is being innovative with new products and services distributed
from practically every corner of the planet. Innovation is a learning culture that organizations
will need to promote growth and stability. A learning culture consists of a community of workers
instilled with a "growth mindset” (Grossman, 2015). People want to apply what they've learned
to help their organization, they also feel compelled to share their knowledge with others. This
also refers to Schein’s philosophy of shared beliefs within organizations (Schein, 2010).
Shared beliefs and values will strengthen an organization (Schein, 2010). Companies with
nimble learners can react quickly to disruptions, adapt to meet the demands of a changing
business climate, and harness a wealth of ideas for new products, services and processes
(Grossman, 2015). “The single biggest driver of business impact is the strength of an

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Leadership in Manufacturing

  • 1. RUNNING HEAD: CAPSTONE 1 Capstone: Leadership and the Future Ron McGary Lewis University ORGL: 59500 LT1-FA16 Capstone: Leadership and Future Dr. Michael Cherry
  • 2. CAPSTONE 2 SECTION I Introduction and Summary GadgetCo is a family-owned large manufacturing company with over five-hundred employees located in the southwest suburbs of Chicago. They produce electric motors that run devices from computers to motorized scooters (Lewis University, 2016). Electric motor production is vital to the company’s overall success. Safety is taken into consideration when manufacturing these electric motors since they will be used by the public. The customer is placed at the top of the list when it comes to safety. GadgetCo’s vision and mission is “to create motors fast enough to meet the demands of their fast-paced customers” (Lewis University, 2016). There are dilemmas that have a direct conflict with Drew, the Vice-President of Product Development, he needs to inform upper-management that there may a delay in shipping their new product to a customer overseas. This will be difficult to convey since this product alone is relied on to support their company during the 2008 financial crisis. The 2008 global financial crisis has a direct impact on businesses around the world. The capital markets in the United States are drowning in debt, and the emergence of the Lehman Brothers collapse has devastated the domestic economy (Kaya, A., & Herrera, G., 2015). This drastic financial effect which caused a recession around the World made many managers and decision makers strategically refine their organizations. It was the lack of work ethic and social responsibility of upper management that caused such a catastrophe (Levi, 2014). Consequently, organizations now require their mission and values to change or their company will fail during this crisis (Nahavandi, 2013). GadgetCo is one of those family-owned businesses that will fail if they do not change the way the organization is operating.
  • 3. CAPSTONE 3 Jane is part of the management trainee program at GadgetCo. She had recently joined the program after five years of good service to the company. Over the last five years she has been mentored by Drew, and feels as though she is ready to take on added responsibility. Jane is even more eager now than ever before because they are about to launch a new electric motor that will help the company pull out of a financially troubling economy. After testing, Jane realizes there may be something wrong with the electric motor. GadgetCo’s individualistic culture has given her second thoughts on how to approach her immediate supervisor, Jessie the Director of the organization. Jane decides to tell her mentor, Drew about the potential failure. Now, it is up to Drew to inform upper-management about the potential failure of this new electric motor, which could put GadgetCo in financial ruin. Family owned businesses are very unique to the United States economy. “Family businesses are critical to the foundation of our economy. Over sixty-percent of all businesses in the United States are family owned. In addition, family owned business are significant contributors to the communities they do business in” (Admin, 2016). There are over five million family owned businesses in the United States (McGee, 2013). According to Admin, family-owned businesses create over sixty-percent of jobs within the United States (Admin, 2016). Family Business Alliance is reporting eighty to ninety percent of all enterprises make-up our economy (Facts and Figures, 2016). Family owned businesses are essential to the United States economy. A family owned business is different than most conventional businesses. To emphasize, a family owned business is defined as the family has considerable control over financial and managerial areas of the company (Cromie, Stephenson, & Monteith, 1995). Family firm’s have the tendency to have decision making on a more local level. In addition, some family members are not supposed to seek the influence or advice from anyone outside of the company (Cromie,
  • 4. CAPSTONE 4 Stephenson, & Monteith, 1995). GadgetCo will need to reach across the globe in order to survive in a very competitive global environment. Nevertheless, they will keep leadership at the family level which, will not push GadgetCo into the mix of global competition. GadgetCo will need to use leadership theories, concepts, and principles to change their organizational culture to compete on a global scale. Five of those principles discussed are models of organizational culture, Borisoff and Victor Five Part Conflict Management Model, transformational leadership, servant leadership, and mentoring. Models of Organizational Culture A model culture is one which serves others (Greenleaf, 2005). It is important to point out trends in organizational development in today’s global economy. The relevance of cultural understanding and having the ability to recognize the impact of cultural change is very important. Leadership must change with culture to prevent organizational failures (Schein, 2010). GadgetCo does have a culture but it is an egalitarian culture (Nahavandi, 2013). Team work is promoted only when there is an extreme crisis to get a product shipped to a customer. The culture is all about rewarding the individual which creates conflict within the organization. Borisoff and Victor Five Part Conflict Management Model Conflict arises when two or more people disagree with each other because of culture, values or some kind of incompatibility (Borisoff & Victor, 1998). Conflict is an action in which it interferes or obstructs with others in their beliefs whether it be religion or some other activity that prevents an individual to perform their own action (Borisoff & Victor, 1998). In a manufacturing environment, it is quite distinctive when an individual reward system is present, because everyone has a competitive barrier toward each other. An egalitarian culture, like
  • 5. CAPSTONE 5 GadgetCo, is very similar to an individual reward system. This culture does not promote communication easily. Jane will use this five part conflict model to help break down the communication barriers between her and Jessie. Jane manages this situation with a unique professional manner, a manner in which others can learn and use across the manufacturing plant. Transformational Leadership Transformational leadership is greatly attributed to organizational effectiveness (Brown, & May, 2012). Organizations across a wide variety of industries report a strong positive relationship between the presence of transformational leadership, performance, and other organizational outcomes (Brown, & May, 2012). In particular, Drew will need to use his transformational leadership skill-set to help change the culture of GadgetCo. Jane and Jessie will help but only after they have broken down the barriers that separate them. Servant Leadership Servant leaders can be developed over time (Greenleaf, 2005). Although servant leadership is grown from within the core leadership of the individual, these characteristics can be developed over time. Servant-leadership, therefore, emphasizes core personal characteristics and beliefs over any specific leadership techniques (Greenleaf, 2005). Under the mentoring of Drew, Jessie will need to develop the characteristics of a servant leader to help drive GadgetCo into the global market; contrast to the leadership style Jessie has been practicing over the years. He will need to serve the employees so they can feel wanted and valued. “The leadership process is spiritual, highly emotional and personal, and based on fundamental values such as integrity, caring, and service to others” (Nahavandi, 2013, p.193). To emphasize, Jessie will need to develop into a
  • 6. CAPSTONE 6 servant leader over time. In addition, Jessie will need to work with Drew to emulate his servant leadership qualities. Mentoring Mentoring provides many key professional connections to career success (Nahavandi, 2013). Mentoring is a powerful leader development tool, and in most circumstances will lead to a life- long supportive relationship between the mentor and the mentee. Jane has been mentored by Drew for several years now, and she is ready to take on additional responsibility with GadgetCo’s new product. In addition, Jessie will need to learn the positive effects of mentoring within an organization from Drew as well. SECTION II – ESSAY RESPONSE AND LITERATURE REVIEW Ethical Dilemmas An ethical dilemma is about crossing our moral beliefs and potentially violating our own culture. “The study of ethics is about what we should do and what we should be” (Ciulla, 2003 p. xi,). Ethics is the understanding of leadership and how it relates to our daily lives, whether it be at work or outside of work (Ciulla, 2003). What are the ethical dilemmas conveyed in this case? GadgetCo has several ethical dilemmas that will prevent them from a much needed organizational change. For example, Jane needs to break down her communication barrier to Jessie. Jane should not feel afraid toward her first line manager, Jessie; even though GadgetCo has a communication policy that promotes speaking with the immediate supervisor, Jane feels as if this culture does not support the policy (Lewis University, 2016). Consequently, organizations
  • 7. CAPSTONE 3 Jane is part of the management trainee program at GadgetCo. She had recently joined the program after five years of good service to the company. Over the last five years she has been mentored by Drew, and feels as though she is ready to take on added responsibility. Jane is even more eager now than ever before because they are about to launch a new electric motor that will help the company pull out of a financially troubling economy. After testing, Jane realizes there may be something wrong with the electric motor. GadgetCo’s individualistic culture has given her second thoughts on how to approach her immediate supervisor, Jessie the Director of the organization. Jane decides to tell her mentor, Drew about the potential failure. Now, it is up to Drew to inform upper-management about the potential failure of this new electric motor, which could put GadgetCo in financial ruin. Family owned businesses are very unique to the United States economy. “Family businesses are critical to the foundation of our economy. Over sixty-percent of all businesses in the United States are family owned. In addition, family owned business are significant contributors to the communities they do business in” (Admin, 2016). There are over five million family owned businesses in the United States (McGee, 2013). According to Admin, family-owned businesses create over sixty-percent of jobs within the United States (Admin, 2016). Family Business Alliance is reporting eighty to ninety percent of all enterprises make-up our economy (Facts and Figures, 2016). Family owned businesses are essential to the United States economy. A family owned business is different than most conventional businesses. To emphasize, a family owned business is defined as the family has considerable control over financial and managerial areas of the company (Cromie, Stephenson, & Monteith, 1995). Family firm’s have the tendency to have decision making on a more local level. In addition, some family members are not supposed to seek the influence or advice from anyone outside of the company (Cromie,
  • 8. CAPSTONE 8 Jahanshahi, & Kazi, 2013). Some aspects of 20th century leadership are applicable to the 21st century, but not all. As trending culture changes over time leadership styles will also change. The ability to recognize cultural change, developing learning cultures, and the ability to proactively solve complex problems are the trends of organizational culture. How would you describe the current culture at GadgetCo? Being a family-owned business GadgetCo is a very strong, assertive, and committed organization. A strong culture increases the commitment to the organization and increases the mutual relationship between employees’ goals and organizational objectives. This is an important factor for increasing productivity and the level of overall performance. The strong values of organizational culture will affect performance and productivity. The employee’s cultural commitment to the organization cannot be so severe that it prevents the development of new cultural environments and therefore the organization will not be able to change its behavioral methods as the environment changes (Schein, 2010). GadgetCo’s environment did effectually change when they decided to go global. This has limited the employee’s environment for learning, and if they cannot learn from their own surroundings, then the culture will not change (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013). Being competitive in the global environment requires team work (Levi, 2014). GadgetCo has individuals working toward a common goal, but have no smooth internal processes to work effectively and efficiently. The work ethic of GadgetCo is all about performance, and the words that are often heard is “all hands on deck” when they are trying to get a product shipped on time to a customer. This type of attitude toward work is not about team work, but rather it is about performance based culture will cause conflict among the employees, because the employees are not working together, they are working against each other.
  • 9. CAPSTONE 9 Models of Organizational Culture Theories and Principles On a global scale interaction with other cultures is becoming more critical (Hines, 2008). “We basically do not know what the world of tomorrow will really be like, except that it will be really different, more complex, more fast-paced, and more culturally diverse” (Schein, 2010 p.365). If organizations are to change with culture, then we must learn the new culture and adapt to it in order to survive in a global environment (Schein, 2010). Cultural knowledge and behaviors are transmitted from generation to generation, and improved ideas and practices replace those that are less effective (Kim, Jeon, & Park, 2014). Leaders must be able to recognize changes within their own culture. For example, if there is a decline in sales and growth within an organization the proactive thinker must take appropriate action to lead the company into a new direction to prevent failure. The global economy impacts our culture by what is called the “cultural flow” (Hines, 2008). Expectations from culture flow is being innovative with new products and services distributed from practically every corner of the planet. Innovation is a learning culture that organizations will need to promote growth and stability. A learning culture consists of a community of workers instilled with a "growth mindset” (Grossman, 2015). People want to apply what they've learned to help their organization, they also feel compelled to share their knowledge with others. This also refers to Schein’s philosophy of shared beliefs within organizations (Schein, 2010). Shared beliefs and values will strengthen an organization (Schein, 2010). Companies with nimble learners can react quickly to disruptions, adapt to meet the demands of a changing business climate, and harness a wealth of ideas for new products, services and processes (Grossman, 2015). “The single biggest driver of business impact is the strength of an
  • 10. CAPSTONE 10 organization's learning culture”, says Josh Bersin, principal and founder of Bersin by Deloitte in Oakland, California (Grossman, 2015). Only around one in ten companies have a true learning culture defined as one that supports an open mindset, an independent quest for knowledge, and shared learning directed toward the mission and goals of the organization (Grossman, 2015). Trends in organizational culture are definitely moving toward a learning culture. With the ever- expanding global economy and the ability to communicate across the globe in seconds, these factors amplify the awareness of cultural diversity. Effective leaders are increasingly mindful of these environments and desire to make change for organizational stability (Borisoff & Victor, 1998). Learning leaders must have faith in people and realistically have the mindset that human nature is good (Schein, 2010). Other trends include hiring smart and teachable hiring managers that know how to evaluate candidates for learning. The impact of building a strong cultural environment within organizations for the future could mean the difference between profit and loss. There needs to be a solid commitment from all employees with cultural differences for future success. Studies have shown that the commitment of the employees towards organizational culture values is an essential mechanism to increase productivity and to move towards optimal group performance (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013). But the relationship between organizational culture and performance is complex. Some experts in management and organization believe that in order to affect the organizational performance the organizational culture should be a strong culture in the beginning. The three levels of culture are: artifacts, espoused values and beliefs, and basic underlying assumptions. Artifacts include items that are seen or used (Schein, 2010). For example, a written procedure for managing operations and the delivery method would be included as an artifact. GadgetCo has
  • 11. CAPSTONE 11 the policy of the first step for an employee to do is speak with their supervisor if there is an issue (Lewis University, 2016). It is obvious that upper management was just thinking of themselves when writing this policy. It is easy for employees to reach their family member, since it is a family-owned business. Basic underlying assumptions include behavior perceptions, thoughts, and feelings (Schein, 2010). Context is one of those behavioral elements. “Context is one of the most important cultural dimensions (Guffey, & Loewy, p.16, 2010). A low context culture is action oriented and the leaders of this culture assume that the employee knows very little about the subject matter and will give them very specific instructions on how to do a certain task (Guffey, & Loewy, 2010). Individual cultures primarily interprets positions and responsibilities in terms of personal accomplishment. Basic underlying assumptions are the repeated actions within a group (Schein, 2010). Once the assumptions are adopted and used throughout a process, it basically becomes second nature for the remaining time; anything outside of those actions will be undeniably inconceivable. This would be the same for GadgetCo, it is Jane and Drew’s underlying assumption to report this failure of an electric motor. This would violate the basic underlying assumptions of what has been done in the past. This is what is called the preferred solution among several basic alternatives (Schein, 2010). The ideals, goals, values, and aspirations would include the espoused beliefs and values (Schein, 2010). For example, in a group setting individuals working on a problem will have suggestive ideals and rational to adopt for the rest of the group. The individual influencing will be the leader in most cases, because they are the early adopters for their ideals. Until that
  • 12. CAPSTONE 4 Stephenson, & Monteith, 1995). GadgetCo will need to reach across the globe in order to survive in a very competitive global environment. Nevertheless, they will keep leadership at the family level which, will not push GadgetCo into the mix of global competition. GadgetCo will need to use leadership theories, concepts, and principles to change their organizational culture to compete on a global scale. Five of those principles discussed are models of organizational culture, Borisoff and Victor Five Part Conflict Management Model, transformational leadership, servant leadership, and mentoring. Models of Organizational Culture A model culture is one which serves others (Greenleaf, 2005). It is important to point out trends in organizational development in today’s global economy. The relevance of cultural understanding and having the ability to recognize the impact of cultural change is very important. Leadership must change with culture to prevent organizational failures (Schein, 2010). GadgetCo does have a culture but it is an egalitarian culture (Nahavandi, 2013). Team work is promoted only when there is an extreme crisis to get a product shipped to a customer. The culture is all about rewarding the individual which creates conflict within the organization. Borisoff and Victor Five Part Conflict Management Model Conflict arises when two or more people disagree with each other because of culture, values or some kind of incompatibility (Borisoff & Victor, 1998). Conflict is an action in which it interferes or obstructs with others in their beliefs whether it be religion or some other activity that prevents an individual to perform their own action (Borisoff & Victor, 1998). In a manufacturing environment, it is quite distinctive when an individual reward system is present, because everyone has a competitive barrier toward each other. An egalitarian culture, like
  • 13. CAPSTONE 13 today’s highly competitive world economy. So it is extremely important to have people working in harmony as possible so the effectiveness can be turned into profits (Rekar, 2001). GadgetCo will need to change their own policies, procedures, and processes (Schein, 2010). Traditionally the perspective of independence and freedom from control is the focus of American companies, including GadgetCo (Guffey, & Loewy, 2010). These types of companies believe that initiative, self-assertion, and competence result in personal achievement (Guffey, & Loewy, 2010). With these beliefs they embrace of what is called low context cultures (Guffey, & Loewy, 2010). GadgetCo will need to evolve over time and move away from this mindset. GadgetCo is a multicultural organization that has communication conflicts between each department. In addition to communication, ethics in manufacturing require employees to discuss the conflicts and come to a responsible agreement. Organizational leaders are charged with the responsibility of maximizing shareholder profit while upholding a high standard in business practices (McCann, & Holt, 2009). Business practices and ethics are embedded into an organization and it will reap the profits that it has worked so hard for. Ethical leadership was found to be preferred by profitable organizations (McCann, & Holt, 2009). It is ethical for Drew to inform upper-management that the new electric motors have failed during the testing process, since this does affect their profits. Cultural change is an evolutionary process (Schein, 2010). The employees need to accept and share basic assumptions over a period of time, this is their shared values. These new norms may take the form of not being responsible or caring for the right thing. It would be up to the 21st century leader to recognize and develop guidance and direction to avoid these traps.
  • 14. CAPSTONE 14 GadgetCo’s leaders will need to recognize the importance of cultural change to transform into a productive environment. There are proven methods of assessing the culture within an organization. Before assessing an organization, it would be professional to ask for permission to do an assessment in the first place (Schein, 2010). Culture assessments are appropriate for several uses as long as they are executed well (Kerth, n.d.). There are ethical issues that need to be adhered to as a professional. “The outside professional whether a consultant or ethnographer, must make a separate assessment and sometimes limit his or her own interventions to protect the organization” (Schein, 2010, pg. 186). Schein is simply implying that the person performing the culture analysis might be the best professional, but there are limitations to what they are given permission to do (Schein, 2010). It would be unethical to have access into a culture setting more than what is necessary and make it public information. Assessments are needed for cultural change to determine specific dimensions that correlate to performance (Schein, 2010). Measuring the performance is the basis in implementing an assessment. If performance is hurting then it is a clear indication the bottom line is being hurt as well. Culture surveys are appropriate for developing an organizational profile based on the employees’ perceptions for use in stimulating deeper cultural analysis (Schein, 2010). Employees behave and react based on their perceptions (Brown, 2016). Learning their perceptions may disclose subcultures that were not known. Changing from one culture to another does not happen simultaneously. This will require a transformational change within GadgetCo. Transformational Leadership Principles Effective organizations use transformational leadership strategies in the culture (Schein, 2010). There is a strong relationship between transformational leadership and productivity (Brown & May, 2012). Managers and first line-supervisors in manufacturing organizations
  • 15. CAPSTONE 15 realize that without transformational leadership productivity will lag behind (Brown & May, 2012). Brown and May conducted an observation study that revealed transformational leadership does increase the positive effects of organizational outcomes (Brown & May, 2012). This was enough to compel and persuade upper management in another organization to make a change in their organizational culture (Brown & May, 2012). The results were enough to consider all employees for the cultural change within the organization, which included managers, supervisors, and hourly workers (Brown & May, 2012). Transformational leadership requires change. The elements of transformational leadership are charisma and inspiration, intellectual stimulation, and individual consideration. Transformational leadership encourages employees to develop a sense of foresight and motivation toward their own responsibilities. Transformational leadership embraces employees to renew their commitment to the company’s mission and values (Nahavandi, 2013). Transformational leadership also empowers new ideas and encouragement to bring about organizational change. Coupled with intellectual stimulation through a dialogue with communications employees will have a sense of ownership as well (Nahavandi, 2013). Applied Transformational Leadership To effect cultural change trust and communication is vitally important to get established within the organization. The three stakeholders, Drew, Jane, and Jessie need to develop a better communication process between each other. The feeling that Jane has toward Jessie is about trust. Consequently, Jessie has a competitive attitude between the two. This creates a conflict between the two and a breakdown of trust. For example, Jessie has an odd feeling about Jane meeting Drew on different occasions and discussing the work environment. “Cooperation is encouraged by trust; competition leads to a breakdown in trust” (Levi, 2014, p.93). Jessie needs
  • 16. CAPSTONE 16 to convey a message with trust. Communication needs to take place, but it has to be initiated by Drew. Drew has the ability to motivate employees to solve problems by challenging them to use their critical thinking skills. Critical thinking skills empowers them to be more creative, which is part of transformational leadership (Nahavandi, 2013). Since Drew is the mentor of Jane it would fit Drew’s personality to sit down and discuss with them the advantages of a solid team working together. By sitting down with each other will create a bond and trust. Honesty is the pillar of all organizations to survive in a global economy (McCann, & Holt, 2009). Drew’s enthusiasm for the company and most of all his integrity unites people naturally. Just having a moral leader presence will unite and bring people together. The leadership process is ethical if the people in the relationship freely agree that the intended changes fairly reflect their mutual purposes (McCann, & Holt, 2009). Trust creates a significant bond between leaders and followers (Nahavandi, 2013). Trust is a precondition of any alliance or mutual understanding (Ciulla, 2003). This must be brought up between the employees prior to any conversations on a personal level. Drew does not have the positional power over Jessie, but he has the attitude of a servant leader to communicate with Jessie about working together. Jane’s personality is a “feeling” characteristic which she is sensitive to certain discussions. It would be up to the leader to use discernment in reaching a degree of trust while having emotional discussions with employees and to use calculated outcomes of the confidential discussions. GadgetCo will require a large scale change in order to accept the required change needed to compete on a global scale. It is up to Drew and the others to convince management to make this change from altruism to a culture of charisma, inspiration, and intellectual stimulation
  • 17. CAPSTONE 5 GadgetCo, is very similar to an individual reward system. This culture does not promote communication easily. Jane will use this five part conflict model to help break down the communication barriers between her and Jessie. Jane manages this situation with a unique professional manner, a manner in which others can learn and use across the manufacturing plant. Transformational Leadership Transformational leadership is greatly attributed to organizational effectiveness (Brown, & May, 2012). Organizations across a wide variety of industries report a strong positive relationship between the presence of transformational leadership, performance, and other organizational outcomes (Brown, & May, 2012). In particular, Drew will need to use his transformational leadership skill-set to help change the culture of GadgetCo. Jane and Jessie will help but only after they have broken down the barriers that separate them. Servant Leadership Servant leaders can be developed over time (Greenleaf, 2005). Although servant leadership is grown from within the core leadership of the individual, these characteristics can be developed over time. Servant-leadership, therefore, emphasizes core personal characteristics and beliefs over any specific leadership techniques (Greenleaf, 2005). Under the mentoring of Drew, Jessie will need to develop the characteristics of a servant leader to help drive GadgetCo into the global market; contrast to the leadership style Jessie has been practicing over the years. He will need to serve the employees so they can feel wanted and valued. “The leadership process is spiritual, highly emotional and personal, and based on fundamental values such as integrity, caring, and service to others” (Nahavandi, 2013, p.193). To emphasize, Jessie will need to develop into a
  • 18. CAPSTONE 18 HOW TO HANDLE THIS CASE ANALYSIS: NEXT STEPS FOR DREW How should Drew handle the situation, both immediate and long-term? The immediate next steps for Drew would have to be looking into the organizational mission and values. The mission and values reflect the actions of the organization (Bryson, 2011). Before this product ships to the customer, Drew, Jane, and Jessie need to sit and discuss the opportunities that lie before them. Certainly after the discussions they will need to test the product one more time to be certain if there is actually a potential failure. GadgetCo’s mission is to “create motors fast enough to meet the demands of their fast-paced customers” (Lewis University, 2016). Drew shares this vision and strategy with Jessie and Jane, they will see the end in mind as they move forward (Covey, 1989). Jane and Jessie must share and realize the same vision of the organization, including the manufacturing process of electric motors. Drew’s next step is to communicate to them that product failures do not surface immediately. This is part of the reason why they do so much testing. He must convince upper-management to retest the products again or risk shipping an inferior product to a global customer. Drew will need to persuade upper management to redefine their mission statement for GadgetCo’s new servant leader culture. The mission statement must include information that clearly identifies who they are (Bryson, 2011). Clarity is paramount because it is the most persuasive way to influence an organization or other individuals to send a message of who they really are (Bryson, 2011). Once clarity is defined within the organization, everyone will work toward the same goal. How would you suggest that Drew interact with Jane?
  • 19. CAPSTONE 19 Drew’s interaction with Jane is unique, because of his natural ability to mentor, inspire, and motivate. He wants customers to see GadgetCo as a respectful organization with high values for ethics and customer relations (Lewis University, 2016). When Drew sits down and discusses the options with Jane they will have to share the same assumption for the entire company (Schein, 2010). Jane will need to agree on the shared assumptions, mission of the organization, and strategy (Schein, 2010). For example, Jane will need to create an atmosphere that generates trust and cooperation (Borisoff & Victor, 1998). Jane will need to understand that implementing change within organizations often leads to conflicts (Raza & Standing, 2011). How would you suggest that Drew interact with Jessie? Jessie is an active impulsive employee, which causes defensive behavior from others such as Jane. This is one of the reasons why Jane has a communication barrier, and she does not know what Jessie might do next (Borisoff & Victor, 1998). The best course of action for Drew to do with Jessie, even though Jessie has positional power, Drew needs to establish a mentoring program with Jessie. Mentoring Mentoring does lead individuals to success. Mentoring programs are essential to support the leadership for professionals to prepare them to lead in the functional areas of the manufacturing plant (McGary, 2016). Mentoring and leadership go hand-in-hand, and is about paving the way for new leadership. “Mentors are extraordinary leaders with exceptional natural character” (McGary, 2016, p.2). “Specific leadership skills are fine-tuned when mentors are working with their protégé’s. This enabler helps them embrace their own career so they can adapt and engage corporate culture
  • 20. CAPSTONE 20 easily” (McGary, 2016, p.2). “Tailoring and inspiring others to improve their quality of life is one method of breaking the daily routine. Career development has become one of the beneficiaries of an effective mentoring program. The mentor expands their knowledge base as they teach the individual. Mentoring leads into interposition between personal learning and career development which is the mechanism for a sustained career” (McGary, 2016, p.3). “Peer leadership empowers protégés to mentor their own peers. Peer leadership uses technology within the mentoring program such as twitter, snapchat, and Facebook” (McGary, 2016, p.6). “Mentoring programs produce organizational support and advises individuals that not only have social problems, but work ethic issues as well. Being a mentor takes courage and commitment. The mentor has to have the qualities and abilities to confer to the protégé” (McGary, 2016, p.7). To emphasize, a mentoring program is very important for all individuals. “The current trend is many organizations are using mentoring programs as a career development tool for the mentor and the protégé” (McGary, 2016, p.7). Mentoring will alleviate ethical dilemmas within an organization, create a sense of trust, and streamline communication (McGary, 2016). Jessie has the influence as a Manufacturing Director, therefore he can work with Drew in gaining new perspectives during the mentoring process. Even though it may be unusual, there have been cases where an individual with positional power is mentored by a person with a lower position or an equivalent position power. This is the message Drew needs to send to Jessie. A message that focuses on shared information. The main ingredient to create a psychologically safe team environment is to encourage and embrace communication and collaboration for, with team members (Levi, 2014).
  • 21. CAPSTONE 21 The application of mentoring is working with others freely. Both individuals need to be open- minded and willing to work with each other. Drew is an extraordinary leader, and mentors are extraordinary people who want to serve others. What leadership style or approach should Drew use? Servant Leadership The leadership approach to mentor Jessie is the approach of a servant leader. Greenleaf references using the person who is serving others as their leaders (Greenleaf, 2005). Drew is exercising servant leadership toward Jessie. Instead of using “Leader as Servant” Greenleaf is suggesting to use “Servant as a Leader” for the purposes of the leader is supporting and serving other people (Greenleaf, 2005). Greenleaf does speak of a pyramid, but his concept of a pyramid is upside down, which is opposite to our own perceptions (Greenleaf, 2005). For example, in most organizational pyramids it is turned up to the point in the upward position. Greenleaf wants us to imagine turning the pyramid with the point down and the leader is supporting others from the point up, and the employees fill the open area of the upside down pyramid, with the leader supporting them from the bottom point; the servant leader supports the people. Drew will need to speak with Jessie and ask him to reflect on his own actions as a leader within GadgetCo; this is referred to as the Reflection-Action Model (Rotelli-Boysen, 2015). The concept of the Reflection-Action Model is in regards into what the individual leader reflects on toward their actions as a leader. They must have the right aptitude and perseverance. These are the same characteristics that are required of a servant leader. We are all leaders within our own right, but to be effective is the real measure of a leader. The Reflection-Action Model is a process to be honest and challenge ourselves. The model offers us an opportunity to grow in our
  • 22. CAPSTONE 6 servant leader over time. In addition, Jessie will need to work with Drew to emulate his servant leadership qualities. Mentoring Mentoring provides many key professional connections to career success (Nahavandi, 2013). Mentoring is a powerful leader development tool, and in most circumstances will lead to a life- long supportive relationship between the mentor and the mentee. Jane has been mentored by Drew for several years now, and she is ready to take on additional responsibility with GadgetCo’s new product. In addition, Jessie will need to learn the positive effects of mentoring within an organization from Drew as well. SECTION II – ESSAY RESPONSE AND LITERATURE REVIEW Ethical Dilemmas An ethical dilemma is about crossing our moral beliefs and potentially violating our own culture. “The study of ethics is about what we should do and what we should be” (Ciulla, 2003 p. xi,). Ethics is the understanding of leadership and how it relates to our daily lives, whether it be at work or outside of work (Ciulla, 2003). What are the ethical dilemmas conveyed in this case? GadgetCo has several ethical dilemmas that will prevent them from a much needed organizational change. For example, Jane needs to break down her communication barrier to Jessie. Jane should not feel afraid toward her first line manager, Jessie; even though GadgetCo has a communication policy that promotes speaking with the immediate supervisor, Jane feels as if this culture does not support the policy (Lewis University, 2016). Consequently, organizations
  • 23. CAPSTONE 23 These characteristics are service to others, a holistic approach to work, promoting a sense of community, and sharing in decision-making (Greenleaf, 2005). All of these characteristics are part of the development process of any individual who feels passionate about people and their position within their organization (Greenleaf, 2005). Greenleaf has put it in exact terms, “Men grow taller when those who lead them empathize, and when they are accepted for who they are.”(Greenleaf, 2005). Servant leadership will need to be used in 21st century organizations to compete on a global scale. How could Drew use communication, change, leadership and conflict management skills to handle this situation? Change does not come without resistance (Nahavandi, 2013). The leadership value of Drew, Jane, and Jessie will need to come into action when converting from one organizational culture to another. Drew can help change the culture by role modeling and by setting the direction and vision for the organization (Nahavandi, 2013). To do this, he must use a proven modeling system. The method of managing such a huge change is using the five part Borisoff and Victor Conflict Management Model. Borisoff and Victor Five Part Conflict Management Model There are many authors who describe and define conflict in many ways. Nonetheless, the same words are repeated in most of their definitions: “differences, expressed, struggle, incompatible, frustration, interference, perception, and interdependence” (Borisoff & Victor, 1998, p.2). The process of conflict management involves five steps in not resolving the conflict, but to discuss and manage the conflict (Borisoff & Victor, 1998). The five steps Drew is taking to
  • 24. CAPSTONE 24 break down that communication barrier are assessment, acknowledgement, attitude, action, and analysis (Borisoff & Victor, 1998). The assessment stage is managing the differences between employees (Borisoff & Victor, 1998). There are several aspects to the assessment stage which include the individual qualities and their relationship with each other. There are many causes to conflict, but the nature of the conflict must be known to manage the conflict. Clarity and the determination of the communication process must be evaluated to best lead into the next stage which is acknowledgement (Borisoff & Victor, 1998). Acknowledgement is also as crucial as the assessment stage in the five part conflict management model. Acknowledgement is about being aware of the other individual’s behaviors. There will be cultural differences because of basic assumptions of the person managing the issue (Borisoff & Victor, 1998). Which leads to the next step which is the attitude of the other party. The attitude is taken into consideration of the other party, for example, conciliation and compassion must be taken into account to properly manage the conflict. To actively gain an insight into the other person stereotyping must be dropped and the conflict must be approached with an open mind (Borisoff & Victor, 1998). Once the mind is clear of any biases then it is time take action, which the next step in the Borisoff and Victor Five Part Conflict Management Model. Action is the integration of all the other previous stages of the five part conflict model (Borisoff & Victor, 1998). Communication is a large part of the action step. Without proper identification of communication non-verbal and verbal cues the action will be useless. The proper action is the understanding of each step and the ability to apply each step to be successful
  • 25. CAPSTONE 25 (Borisoff & Victor, 1998). Although action is the step in applying the knowledge of each part of the conflict management model, but an analysis of each step is crucial as well. An analysis should be taken during each step anyway to be sure the proper application of each step (Borisoff & Victor, 1998). The analysis is looking for the long-term effects of the situation. Organizational change will need to take place in gradual steps, and with each step of the model implemented with proper action. In every culture there will be conflict it really depends on how we manage the conflict will determine our success (Borisoff & Victor, 1998). The situation with GadgetCo involves Drew, Jane, and Jessie. Drew has already mentored Jane over the last five years. Jane has used the five part conflict model to help her understand the role she plays and to help understand Jessie as well. Applied Borisoff and Victor Conflict Management Model The first step in conflict management is assessment. Assessment can be taken in numerous methods, including typewatching. Typewatching is the ability to watch a person and decipher their personality type, just by watching their behavior. It is a constructive response to name- calling (Kroeger, & Thuesen, & Rutledge, 2002). Typewatching can increase understanding and communication between employees (Kroeger, & Thuesen, & Rutledge, 2002). By typewatching an individual can learn the individual traits, causes of conflict, clarification of the other person in regards to their goals and objectives, and how they communicate with others (Borisoff & Victor, 1998). Jane’s assessment of Jessie through typewatching has given her the advantage in how to interact with him. Jane now has an advantage in breaking down the communication barrier to Jessie. It is not in Jessie’s character to initiate the process of improvement, because he is there to
  • 26. CAPSTONE 26 get information to his advantage within the company, this is how he manages to get things done. Jane uses these attributes of Borisoff and Victor’s five part conflict management model to help her understand Jessie so she can break down the communication barrier between the two (Borisoff & Victor, 1998). Jane acknowledges Jessie’s culture of “all hands on deck” and individual performance. She will be able to understand his beliefs and ideals to understand his way of doing things within the company. By acknowledging his culture, she will be able to make sense of the “why” he does the things that he does. Prior to understanding and acknowledging Jessie, she felt a high level of anxiety, which is the reason why she went to Drew for advisement (Borisoff & Victor, 1998). Jane’s personality type is feelings and compassionate toward others. This gives her the virtue of conciliation with Jessie. In the past, she may not have had the courage to do this if it had not been for Drew’s effective mentoring. Mentoring presents itself to encourage others to do some of the things they did not have the audacity to do before (McGary, 2016). Strengthened by Drew’s effective mentoring, Jane will face Jessie and acknowledge his culture. Her new attitude of open- mindedness and to suspend stereotyping will develop her management career further (Borisoff & Victor, 1998). Her next step in working with Jessie is to put everything into action; after all, taking action is the goal of conflict management (Borisoff & Victor, p.5 1998). This is a very crucial stage because Jane now has to set aside some of her beliefs, without compromising those beliefs, to achieve her goal of working and communicating with Jessie. This valuable lesson enables her to collaborate with the like-minded employees at GadgetCo, if she is in fact to become and effective leader after the management trainee program. Borisoff and Victor’s five step conflict
  • 27. CAPSTONE 7 have serious leadership issues when employees inform their managers of simple truths and doing what is morally right; such as, the disclosure of potential defects that will cause employees to get fired or not promoted (Wren, 1995). The same goes with Drew as he contemplates a strategic decision to communicate the testing failures to his boss. Drew and Jane will need to embark on communication practices, such as intellectual stimulation, which is part of transformational leadership to help break-down the barriers between Jane and Jessie (Nahavandi, 2013). The baseline of ethical dilemmas is culture (Schein, 2010). Jessie is protecting his culture within GadgetCo, because he thinks he is doing what is right. In essence, GadgetCo is a multicultural organization which does not empower their leadership (Schein, 2010). The main problem with multicultural organizations is there are so many assumptions and beliefs within the organization the employees think that they are right and everyone else is wrong, and so the conflict begins (Schein, 2010). The impact of this leadership scenario is GadgetCo will not build a well unified organization to support team work. This will lead into a continuous breakdown in the communication process. Being a five-hundred employee operation, GadgetCo needs to encourage their own communication policies to sustain in a competitive global market. Organizational Culture The 21st century leader must be proactive in solving problems (Wren, 1995). Leaders must recognize their own cultural climate to solve these problems. An organization must be a learning culture to recognize their cultural surroundings. Looking ahead into the 21st century companies will need strong cultures to build pathways to excellence. Studying and learning about leadership is variable, which means leadership is always changing (Gogheri, Nawaser, Vesal,
  • 28. CAPSTONE 28 challenge, even if upper-management is in agreement. With this change will be an enormous amount of resistance (Nahavandi, 2013). Idealized influence and charisma is the major component in helping this change, move forward (Brown & May, 2012). Drew is an extraordinary leader and he has these characteristics to see the changes come to fruition. The first step is getting management onboard with the idea of a cultural assessment. GadgetCo is an individualistic culture, but they need to understand on how their communication has broken down within the plant. In addition, a culture inventory is the part of the first step in finding communication problems (Kerth, n.d.). The OCI (Organizational Culture Inventory) is a good tool to have when measuring employees to have certain skills and mental attitudes toward the company. The OCI measures the performance of individuals or groups to clearly indicate if they are a fit for the organization (Human Synergistics, 2012). The owner of the organization would want a team that works together and shares their vision of the company. The OCI helps the owner, or whoever is initiating these surveys, to aid them in creating a company as they see it. If there are areas of concern that could affect the organization, the OCI would identify those problem areas and provide a reliable solution. This is better than releasing those individuals initially; however, if those employees cannot be molded within the company, then that may be the organization’s only choice. One huge drawback for the OCI is that the survey does require an outsider to help interpret the results (Schein, 2010). The selection of the outsider must be considered thoughtfully. “The OCI is the showing of the shared values guiding how members of an organization interact and work” (Schein, 2010, p. 170). This would involve the strategic direction, vision, and how the employees are involved (Human Synergistics International, 2012). Comparative data will give
  • 29. CAPSTONE 29 direction in determining whether a company is strong enough to build from their own culture and whether to add other cultures within the organization and still be able to still maintain minimal disruption. Moving forward is seeing servant leadership being implemented throughout the plant. Jessie and Jane will be able to share their assumptions and ideas to others, thus creating a culture of helping and continuing the mindset of a servant-leader. This outlook will fuse with other departments which will lessen future conflicts. SECTION III – SUMMARY AND CONCLUSION The need for leaders in the twenty-first century is of the utmost concern for every organization (Wren, 1995). Wren has noted “the gaps of leadership and the failure to grasp the essence of leadership to the modern age” (Wren 1995, pg.9). There have been men placed in leadership roles in manufacturing and fail to motivate, strive, and compete effectively with surrounding competitors. This is because these first-line managers are not thinking like a leader (Wren, 1995). If someone is placed in a leadership role, and they fail as a leader it is because they were not effective leaders in the first place. They were placed in those roles because of politics and they have failed miserably. This is the type of leadership in family owned businesses. Leaders inspire and take charge with persuasion. Inspiration could come from a simple “thank you”. Inspiration can come from a painting or in some cases, a visit to a leadership valued internet site. According to the Oxford dictionary, ‘inspiration means the process of being mentally stimulated to do or feel something creative” (Waite, Lindberg, Braham, & Jewell, 2010, p. 420). The need for leaders is so relevant that we do not even see the need for them; we are
  • 30. CAPSTONE 30 short-sighted to this fact. We need leaders who see the vision, mission, goals, and objectives within organizations (Williams, 2013). Summary of steps that will be taken to address the issues raised The communication barriers is now torn down through collaboration and understanding each individual’s personality and character. Drew will make no hesitation to inform upper management of the potential failure of the new electric motor. His natural leadership characteristics, such as integrity, will drive him to do what he will say he will do. By using cultural assessments such as the OCI, a new culture of shared assumptions and beliefs will continue to emerge and grow as a united company. Conflicts are solved through a step-by-step process through the Borisoff and Victor Conflict management model (Borisoff & Victor, 1998). Jessie is a new leader under the commitment of Drew’s mentoring and guided counsel. Manufacturing floor employees are stunned by Jessie’s growth in servant leadership, his entire attitude toward people, and his activities has changed inside and outside of work. By working together and collaborating with the design team, engineering, and manufacturing they can come to a resolve on the product issue and still produce a safe product for the public. When a customer’s visit for a plant tour they will not see people scurrying around with the attitude of “all hands on deck”, but rather a culture of serving others on the manufacturing floor. Their new philosophy and culture will be implemented from their new mission statement (Bryson, 2011). This is a crystal clear view of model organizational culture. A company that serves their employees as well as their external stakeholders.
  • 31. CAPSTONE 31 Discuss what this case may imply about effective leadership Effective leadership is about the outcome (Nahavandi, 2013). The leader must have the ability to persuade others to get the assigned task and goals accomplished. Drew has the insight and persuasion power to inform upper management of the predicament that they are in. Drew has the ability to recognize what is missing and bring it to life. He brings it to life through persuasion and effective leadership. Effective leadership has three main elements: goal achievement, smooth internal processes, and external adaptability (Nahavandi, 2013). The effectual responses from Drew’s action are the commitment to change the organizational culture, changing the overall leadership style of the entire organization, and providing an effective means of all employees to communicate. These are not only his goals, but it is the goals of GadgetCo. The outcome of effective leadership demonstrated by Drew is the commitment to organizational change. GadgetCo has realized, now that after assessing the overall cultural structure that it is time for a needed change. Obviously family members thought the organization was working just fine. But in fact, it took an effective leader to bring the real situation to reality. A person who understands change transforms key stakeholders to gain approval throughout the organization. Cultural assessments are necessary to realize the working organizational structure within GadgetCo (Schein, 2010). The results of the culture survey will inform upper-management to take on a transformational leadership change. With the help of Jane and Jessie, Drew has changed the organization to produce quality products, with the result of addressing the immediate needs of their customers (Nahavandi, 2013).
  • 32. CAPSTONE 8 Jahanshahi, & Kazi, 2013). Some aspects of 20th century leadership are applicable to the 21st century, but not all. As trending culture changes over time leadership styles will also change. The ability to recognize cultural change, developing learning cultures, and the ability to proactively solve complex problems are the trends of organizational culture. How would you describe the current culture at GadgetCo? Being a family-owned business GadgetCo is a very strong, assertive, and committed organization. A strong culture increases the commitment to the organization and increases the mutual relationship between employees’ goals and organizational objectives. This is an important factor for increasing productivity and the level of overall performance. The strong values of organizational culture will affect performance and productivity. The employee’s cultural commitment to the organization cannot be so severe that it prevents the development of new cultural environments and therefore the organization will not be able to change its behavioral methods as the environment changes (Schein, 2010). GadgetCo’s environment did effectually change when they decided to go global. This has limited the employee’s environment for learning, and if they cannot learn from their own surroundings, then the culture will not change (Gogheri, Nawaser, Vesal, Jahanshahi, & Kazi, 2013). Being competitive in the global environment requires team work (Levi, 2014). GadgetCo has individuals working toward a common goal, but have no smooth internal processes to work effectively and efficiently. The work ethic of GadgetCo is all about performance, and the words that are often heard is “all hands on deck” when they are trying to get a product shipped on time to a customer. This type of attitude toward work is not about team work, but rather it is about performance based culture will cause conflict among the employees, because the employees are not working together, they are working against each other.
  • 33. CAPSTONE 33 References Admin, F. (2016). Family Businesses’ Contribution to the U.S. Economy - Family Enterprise USA. Family Enterprise USA. Retrieved 21 November 2016, from http://www.familyenterpriseusa.com/family-businesses/family-businesses-contribution-u- s-economy/ Borisoff, D. & Victor, D. (1998). Conflict management: A Communication skills approach. Boston, Mass.: Allyn and Bacon. Brown, Sherle., (2016). The value of culture Assessment. https://lewisuniversity.blackboard.com/webapps/discussionboard/do/message?action=list _messages&forum_id=_206957_1&nav=discussion_board_entry&conf_id=_140005_1& course_id=_136518_1&message_id=_3368617_1#msg__3368617_1Id Brown, W., & May, D. (2012). Organizational change and development. The Journal of Management Development, 31(6), 520-536. doi:http://dx.doi.org/10.1108/02621711211230830 Bryson, J. (2011). Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement (4th Edition). Jossey-Bass. Ciulla, J. (2003). The ethics of leadership. South Melbourne, Australia: Thomson/Wadsworth. Covey, S. (1989). The 7 Habits of Highly Effective People. Powerful Lessons in Personal Change. Simon & Schuster. New York, NY. Cromie, S., Stephenson, B., & Monteith, D. (1995). The management of family firms: An empirical investigation. International Small Business Journal, 13(4), 11. Retrieved from
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  • 35. CAPSTONE 35 http://ezproxy.lewisu.edu/login?url=http://search.proquest.com/docview/218615344?acco untid=12073 Human Synergistics International (2012). Organizational Culture Inventory: Identify your organization’s culture and learn how to turn it into a competitive advantage. Retrieved from http://www.humansynergistics.com/docs/default-source/product-info-sheets/oci- product-info-sheet.pdf?sfvrsn=10 Kaya, A., & Herrera, G. (2015). Why the 2008 crisis was a bad crisis for new ideas. Journal of International Relations and Development, 18(4), 505-531. doi:http://dx.doi.org/10.1057/jird.2014.8 Kerth, S. (n.d.). Cultural analysis week 3 lecture notes [PowerPoint slides]. Retrieved from https://lewisuniversity.blackboard.com/webapps/blackboard/content/listContent.jsp?cours e_id=_136518_1&content_id=_2311713_1&mode=resetq Kim, K., Jeon, J., & Park, Y. (2014). Culture as an aggregate of individual differences. Behavioral and Brain Sciences, 37(3), 262-3. doi:http://dx.doi.org/10.1017/S0140525X13002896 Kroeger, O., Thuesen, J.M., Rutledge,H.(2002). Type Talk at Work, How the 16 Personality Types Determine Your Success on the Job. Dell Publishing. New York, NY. Levi, D. (2014). Group dynamics for teams. 4th edition. Thousand Oaks: SAGE. Lewis University, (2016).Week1 Capstone Case Study. https://lewisuniversity.blackboard.com/webapps/blackboard/cont ent/listContent.jsp?course_id=_145027_1&content_id=_2629554_1&mode=reset
  • 36. CAPSTONE 36 Mccann, J., & Holt, R. (2009). Ethical leadership and organizations: An analysis of leadership in the manufacturing industry based on the perceived leadership integrity scale. Journal of Business Ethics, 87(2), 211-220. doi:http://dx.doi.org/10.1007/s10551-008-9880-3 McGary, R. (2016, August 10). A Mentoring Program for Young Professionals; A Hypothesis Research Paper [Scholarly project]. Retrieved August 10, 2016. McGee, T. (2013). Deloitte. Perspectives on family-owned businesses, Governance and succession planning (1st ed., pp. 1-24). Deloitte Development, LLC. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Deloitte%20Growth%20 Enterprises/us-dges-fobgovernanceandsuccession-052413.pdf. Nahavandi, A. (2013). The Art and Science of Leadership. San Diego: Pearson. 7th edition. Perry, J. T., Ring, J. K., Matherne, C., & Markova, G. (2015). Ethical human resource practices from the perspective of family ownership. American Journal of Entrepreneurship, 8(1), 21-43. Retrieved from http://ezproxy.lewisu.edu/login?url=http://search.proquest.com/docview/1703375827?acc ountid=12073 Raza, S. A., & Standing, C. (2011). A systemic model for managing and evaluating conflicts in organizational change. Systemic Practice and Action Research, 24(3), 187-210. doi:http://dx.doi.org/10.1007/s11213-010-9186-0 Rekar, C. D. (2001). A team development model based on myers briggs personality types and action research to improve team performance and participant satisfaction (Order No. NQ58906). Available from ProQuest Dissertations & Theses Full Text. (304768338).
  • 37. CAPSTONE 9 Models of Organizational Culture Theories and Principles On a global scale interaction with other cultures is becoming more critical (Hines, 2008). “We basically do not know what the world of tomorrow will really be like, except that it will be really different, more complex, more fast-paced, and more culturally diverse” (Schein, 2010 p.365). If organizations are to change with culture, then we must learn the new culture and adapt to it in order to survive in a global environment (Schein, 2010). Cultural knowledge and behaviors are transmitted from generation to generation, and improved ideas and practices replace those that are less effective (Kim, Jeon, & Park, 2014). Leaders must be able to recognize changes within their own culture. For example, if there is a decline in sales and growth within an organization the proactive thinker must take appropriate action to lead the company into a new direction to prevent failure. The global economy impacts our culture by what is called the “cultural flow” (Hines, 2008). Expectations from culture flow is being innovative with new products and services distributed from practically every corner of the planet. Innovation is a learning culture that organizations will need to promote growth and stability. A learning culture consists of a community of workers instilled with a "growth mindset” (Grossman, 2015). People want to apply what they've learned to help their organization, they also feel compelled to share their knowledge with others. This also refers to Schein’s philosophy of shared beliefs within organizations (Schein, 2010). Shared beliefs and values will strengthen an organization (Schein, 2010). Companies with nimble learners can react quickly to disruptions, adapt to meet the demands of a changing business climate, and harness a wealth of ideas for new products, services and processes (Grossman, 2015). “The single biggest driver of business impact is the strength of an