Analyzing Leadership Change Impact at Acetone: Aceros de Chile

Posted on Nov 16, 2024 in Other subjects

The company “Acetone: Aceros de Chile” is a leader in its industry, known for quality material delivery. Despite strong national projections, it faced a major challenge when its General Manager, Mr. Olegario Torres, received a significant offer from a multinational company in Brazil. His departure marked a turning point for the organization.

To replace Mr. Torres, the owners relied on expertise to select a new manager. This individual focused on cost reduction, assuming financial gains would satisfy the owners. One of their first policies was to adjust salaries to the minimum, citing improved benefits and production bonuses. The 40-member team reluctantly complied, fearing job loss due to cheaper labor availability.

Consequently, product quality and production declined, leading to an internal crisis. The new manager concealed these issues with manipulated figures presented to the company owners.

Let’s analyze this situation through the lens of organizational behavior:

1. Professional Opinion on the New Manager’s Leadership Style

Leadership is the ability to influence a group to achieve goals. Influence can stem from formal authority, such as a managerial position. In this case, the new manager’s authority came from their appointment.

However, formal authority doesn’t guarantee effective leadership. The new manager’s style is authoritarian, characterized by:

  • Unilateral decision-making
  • Short-term, unclear action plans
  • Dictatorial division of labor
  • Subjective praise and reprimands
  • Detachment from the team’s activities

Teamwork involves strategies and methodologies to achieve goals. Effective teamwork requires:

  • Effective leadership: Creating a shared vision and strategy, gaining support, and motivating action.
  • Open communication channels: Facilitating formal and informal communication with feedback.
  • Harmonious work environment: Encouraging participation and addressing disagreements constructively.

The new manager’s policies created a disharmonious environment, indicating a lack of effective teamwork.

2. Potential Consequences of the Current Situation

If the situation persists, the company may face:

Employee Dissatisfaction:

  • Departure: Employees may leave for new jobs.
  • Expression: Employees may actively suggest improvements or engage in union activities.
  • Negligence: Employees may exhibit absenteeism, reduced effort, or increased errors.

These attitudes can lead to:

  • Staff Turnover: High turnover rates are costly and disruptive.
  • Faults: Dissatisfied employees may make more mistakes.
  • Delays: Employees may express dissatisfaction through tardiness, affecting productivity.

3. Organizational Behavior Practitioner’s Speech Aspects

As an organizational behavior practitioner, I would address the following in a speech to the company owners:

Organizational behavior studies how people act within organizations to improve effectiveness (Davis & Newstrom, 2001; Robbins). The current situation reflects a negative impact on the work climate, leading to decreased quality and production.

Key points to emphasize:

  • Climate: The work environment’s characteristics perceived by employees.
  • Impact on Performance: Climate affects job performance.
  • Intervening Variable: Climate mediates between organizational factors and individual behavior.
  • Permanence and Variability: Climate is relatively permanent but varies across organizations and departments.
  • Dynamic System: Climate, structure, and individuals form a dynamic system.

4. Suggestions for the Current CEO

To improve the situation, the new manager should adopt ethical leadership:

  1. Social Responsibility: Recognize the responsibility that comes with power.
  2. Open Communication: Foster two-way communication and transparency.
  3. Cost-Benefit Analysis: Consider human and social costs alongside economic benefits.

Companies must implement organizational behavior principles ethically, avoiding power abuses and focusing on productivity and individual development.

5. Opinion on the Current CEO’s Behavior

The decision to replace Mr. Torres with an administrator was flawed. Leadership and management are distinct. The authoritarian style adopted by the new manager clashed with the existing organizational culture, which likely favored a more participative or democratic approach.

The new manager focused on personal goals and quick results, neglecting employee commitment and motivation. Effective leadership requires understanding followers’ needs and fostering a positive environment.

REFERENCES:

  • Lewis, P. (2008). Organizational Behavior Psychology Education Course. Center of Northern Catholic University.
  • Zuloaga, H. O. (2000). Ethical Leadership. ENEF 2000, Puerto Natales.

ANNEXES

Ethical Leadership

Model MOSAV: Effectiveness and Leadership and Organizational Development

  • Personal Development
  • Interpersonal Development
  • Senior Management
  • Organization

The leader’s confidence in themselves and their team drives personal and interpersonal effectiveness, contributing to the company’s mission, vision, and strategy.