Transformational Leadership Case Study

8/4/2019 Transformational Leadership Case Study

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Presented By:

Avantika Thapa- D 9

Ekta Jha- D 14

Ema Acharya- D 15

Shruti Mishra- D 40

Tamanna Sharma- D 48

Yukti Mittal- D 51


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This form of leadership is defined as an approach that

causes a well defined change in individuals and socialsystems.

It creates valuable and positive change in the followers .

Enhances the motivation, morale and performance offollowers through a variety of mechanisms.


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Protagonist: Shri B.K. (posted as Divisional Manager of Tanjore

Division of LIC, South Zone); before him being transferred,during, and post.

Problems before Shri B.K. wastransferred:

Low productivity of salespersonnel

Strong and militant trade union

Inter- group rivalries in manybranches

Indifferent Development

Officers

Actions implemented:

Implemented new software platformwithout the consent of the trade union.

Individual memos issued

Agents union source of funds cut

DOs put on notice

Training provided to DOs, and Agents.

Campaign to boost morales


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The Trade Union

The Zonal Managers (Old and New)

Marketing Manager


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Shri B.K. tried to be a democratic leader upon seeing thesituation at hand, but as the negotiations were notsuccessful he went forward with a more authoritativeapproach.

Even though this form of leadership derived him resultsin terms of business growth and profits, they were notlong-lasting.

He was therefore not successful a transformational leader,and was not able to transform the people around him orthe situation. As soon as he took leave the situationreturned to its original state.


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Whether the Division would have

reached the number of policies target

and if so how?


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It is understood from the profile of Shri B.K., who is theSDM, that he would not bend under pressure.

Despite having rheumatoid arthritis, he was willing to takeup the challenges.

For tactical reasons he stayed away from headquarters for 5days, on official tour.

He started a whirlwind tour of the Division addressing aseries of meetings each day.

He was present in every meeting in the zone, boosting themorale of his people, right from the Branch managers to allemployees.


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He talked of the huge market potential and how it was

necessary to en-cash the opportunity.

He had assured the Trade Union members that no further

actions shall take place if the work was allowed to flow.

His leadership helped in successful implementation of the

new software.

By October 2003 there was tangible difference in new

business performance and the Division rose to 5th rank on

premium growth among 12 Divisions of the Zone.

By December 2003, there was good improvement and the

Division reached 3rd rank in the Zone on new premium

growth.


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When the financial year closed, the Division achievedhighest rank in new business premium growth in theZone and 2nd highest in All India.

In Unit Linked business, No. 3 rank in volume of

premium All India and 2nd in the Zone.

Total new business premium income touched Rs. 90crores against a target of Rs. 88 crores.

In 2004-05, Division achieved splendid results as perthe corporate objective of premium growth.


10/17

The Division was ranked 5th All India on premium growth,

2nd

highest in the Zone.

But, when Shri. B.K left, the system began disintegratingagain.

After returning from the illness, the position of theDivision was but in the number of policies, theachievement was only 62% of the annual budget of3,80,000 policies.

For that year, the emphasis was on reaching a number of

policies targets, as the Division and Zone were in acomfortable position to surpass the premium target.


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Whether the strategies and actions of

Shri. B.K., the SDM were correct

and how the situation could have

been handled differently?


12/17

Yes, The strategies and actions taken by him were correct as :

He spoke to colleagues as well as union on same and mentioned that the

grievances would be heard and acted upon if necessary.

BMs were told to concentrate on key result areas, especially new business and

BMs were advised to create record against non-performing DOs.

Development Officers were put on notice, that they have to perform their

expected duties.

Slowly the impact of the agitation started whittling down and open methodslike dharna and demonstration, was completely stopped.

The Zonal Manager was happy with BK after the initial displeasure and

openly acknowledged the transformation taking place in Tanjore Division.

>> Hence, it could be said that his methods were correct.


13/17

Whether the role of the Zonal

Manager was appropriate in this

case and if so why? If not, what he

should have actually done?


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The old Zonal Manager:

Before 2005, the old Zonal Manager was scared of the drastic measures that

BK was undertaking against the union but assuming that he did not have any

other method up his sleeve to control the union, he went along with Shri

B.K.s plan of action and asked him to complete the work that he hadundertaken.

When the new Zonal Manager was appointed he did not have much idea

about the functioning of the south zone. And was surprised by the drastic

measures that were being rolled out to the DOs.

He had been used to malpractices and did not think that such measures would

help.

In our opinion the method that he used after Shri BK took a sick leave was

not appropriate because he was not aware of the aggressive nature of the

union and their twisted ways to get their way.


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Easingthe pressure on the DOs just made them more aggressive andgave them the independence to do what they had always been doing

which is shown by the way the companys revenue fell down.

The Zonal Manager should have continued with the method that Shri

B.K. had been following because even though the zone was losing

employees; the other employees would have realized that following a

violent and aggressive method against the management would just costthem their jobs.

The Zonal Manager could have had a peaceful discussion with the DOsregarding the situation and should have told them that the companysprofit and reputation was at stake instead of favouring their methods.

Assuming that only an iron can cut an iron; in this situation only a

strong and aggressive upper hand could control the DOs since theywere equally strong headed and refused to listen to any reasoning.


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Why the Marketing Manager behaved

in the way he did and how the SDM

would have handled the situation to

minimise the negative impact?


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Marketing manager may have felt threatened/insecure as SDMs popularity wasgrowing in Zonal office.

SDM may not have taken MM into consultation or included him in business planning.

He may have felt threatened by SDMs knowledge/expertise.

Methods that could be adopted by SDM:

Transformational Leader helps his followers to look at old problems in new ways. He

could have conducted discussions/talks to understand the problem.

Workshops , awareness programs to sensitize employees about the org goals,

importance of working in teams to achieve those goals and help them see how these

goals are aligned with their individual goals.

Reward and Recognition program to reward high performers , special appreciation

awards for team players.

Documents

Transformational Leadership Case Study