Paula Smith has just been offered the opportunity of a lifetime. The chairman of the board of Resitronic Company has called to ask her to take the
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Paula Smith has just been offered the opportunity of a lifetime. The

chairman of the board of Resitronic Company has called to ask her to take the job as director of the troubled audio equipment manufacturing subsidiary. The first question Smith asked was: "Will the board give me the autonomy to turn this company around?" The answer was yes. Resitronic's problems were so severe that the board was desperate for change and ready to give Smith whatever it took to save the company.
Smith knew that cost-cutting is the first place she needs to focus. Labour expenses are too high, and product quality and production times are below industry standards. She sees that labour and management at Resitronic are two armed camps, but she needs cooperation t all levels to achieve a turnaround. Smith is energized. She knows she finally has the autonomy to try out her theories about an empowered workforce. Smith knows she must ask managers and workers to take a serious pay cut, with the promise of incentives to share in any improvements they might make. She also knows that everyone will be looking at her own salary as an indication of whether she walks her talk.
Smith is torn. She realizes she faces a year or two of complete hell with long hours, little time for her family or outside interests, bitter resistance in employees and no guarantee of success. Even f she comes in at the current director's salary, she will be taking a cut in pay. But if she takes a bigger cut coming in, with the promise of bonuses and share options tied to her own performance, she sends a strong message to the entire subsidiary that they rise or fall together. She wonders what might happen if she falls. Many influences on the audio equipment subsidiary are beyond her control. As already mentioned, Resitronic is in trouble. From her current vantage point, Smith believes she can turn things around, but what will she discover when she gets inside? What if the board undercuts her? Doesn't she owe it to herself and to her family to be compensated at the highest level for the risk and stress she will be enduring? Can she afford to risk her own security to send a message of commitment to the plan she is asking others to follow?




Question


1.) If Paula should accept this job, which leadership style, do you think, will work best if she is to turnaround this troubled company? Please justify your choice.
2.) . How are the characteristics of the followers likely to impact her leadership style?

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