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Introduction of Firm
B-MED is the company providing medical equipment and associated services established in 1984 by Bob Samuels. The company managed small-scale equipment and served several organizations in South America and the Caribbean. Samuels employed his family and friends and used rewards and punishments to motivate his employees. In 2010, the company owner received an offer from a large medical organization operating in Trinidad. Although B-MED was somewhat unprepared for such requests as significant investment was required to satisfy the needs of the new client, Samuels accepted it. New employees hired to meet the company’s needs came from an organization with a flat hierarchy, which led to the tension in B-Med, low morale, inappropriate working environment, and high turnover.
The use of an inappropriate leadership style led to detrimental effects during the period of change in the organization that was growing.
Alternative Solutions – Solutions/Opportunities
One of the solutions to the problem would be the change of the leadership style with the focus on the development of a robust organizational culture. It has been acknowledged that corporate culture and certain leadership styles have a considerable impact on companies’ performance (Rigas & Nawar, 2016). It is essential to empower employees who will feel their responsibility and will develop intrinsic motivation (Pradhan, Panda, & Jena, 2017). One of the significant steps to undertake is associated with knowledge sharing. Employees should start communicating freely and reveal their concerns and ideas to the top management. This strategy will improve employees’ morale and performance, but it will require substantial resources and time, which can be a significant challenge.
Another option for B-MED is to reorganize its Trinidad office, providing more power and authority to it. Bob Samuel could make his son, Craig, the executive of that department and staff the subsidiary with MM Healthcare employees. Transformational leadership and flat hierarchy could be employed at this branch of B-MED. This strategy would require less considerable investment as compared to the one mentioned above. However, it may help the company cope with the new project.
Decision and Support
It can be beneficial for the company and its founder to choose the second alternative involving the reorganization of the office located in Trinidad. Ward (2016) notes that family businesses if they become successful and especially when they grow, need to transform and adapt to a new environment, which requires strategic leadership. It can be challenging for Samuels to change his leadership style, but he can let his son develop a new system in the Trinidad branch. Apparently, the growing tension within the staff deteriorates the entire company’s performance that has to undergo specific changes. It is clear that Craig Samuels is ready for changes and is likely to adopt a democratic leadership style. The empowerment of employees, effective communication, and collaboration will enhance people’s commitment and motivation, which is specifically true for countries where social and economic challenges are serious (Malik, Javed, & Hassan, 2017). The success of this transformation can also lead to a major shift in the leadership and hierarchy of the entire company.
Bob Samuel should start with the announcement of the changes and the plans involving the Trinidad branch. He should also introduce Craig as the executive at the Trinidad office and have a general discussion with the employees working there (see Table 1). The next step is the establishment of effective communication channels. It is critical to creating a flat hierarchy where employees communicate openly and receive feedback from the top management. Employees should be involved in the decision-making process in order to feel responsibility and, as a result, commitment to organizational goals.
Table 1. Timeline.
|October 2019||November 2019||December 2019||January 2020|
|General discussions with employees||X||X|
|Establishing communication channels||X||X||X|
Malik, W. U., Javed, M., & Hassan, S. T. (2017). Influence of transformational leadership components on job satisfaction and organizational commitment. Pakistan Journal of Commerce and Social Sciences, 11(1), 147-166.
Pradhan, R. K., Panda, M., & Jena, L. K. (2017). Transformational leadership and psychological empowerment. Journal of Enterprise Information Management, 30(1), 82-95.
Rigas D., & Nawar Y.S. (2016). Leadership and innovation growth: A strategic planning and organizational culture perspective. In F. H. Nah & C. H. Tan (Eds.), HCI in Business, Government, and Organizations: eCommerce and Innovation (pp. 565-575). Toronto, Canada: HCIBGO.
Ward, J. (2016). Keeping the family business healthy: How to plan for continuing growth, profitability, and family leadership. New York, NY: Springer.