Leadership Evaluation: Roots Canada Case Study

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Leadership styles of Budman and Green

The style of leadership adopted by Budman and Green is a democratic leadership style; however, they ensured they are the final decision-makers.

Democratic leadership style allows a leader to take the input of his subordinates and stakeholders when making business decisions, but is aware that he or she has the final decision. When Budman and Green are making strategic decisions, they involve their staffs, family members, and the society in general however they are held responsible for the decisions they make.

For example, when making a designing decision, the company allows uses a broad-based participation of design teams, people who give their contribution and views on certain design, however even after considering the input, the leaders use their skills and participation in different areas to make the final decision.

The effectiveness of their leadership

Budman and Green are risk takers, they are willing to venture in businesses that are highly competitive and believed they will be succeed; their style of leadership has been successful where they have emerged as one of the most preferred seller of apparels with over 200 outlets; this is a huge success considering the age of the company.

In 2002, the company recorded a high return of over $300 million; this shows a business that is performing well amidst high competition.

Despite the success that the company has attained, its management effectiveness has been challenged by the ignorance of its human resources rights and violation of labor laws. The leaders seem to forget that the most precious resource of an organization is its human capital; they need to be treated in the best way possible.

The failure that the company got when it ventured the airline industry can show risk takers who never undertake effective market research; they are likely to be attracted by the general believe of an industry which may not be the case.

The leaders then show a very good character when they withdraw from none picking business; however, they were so impatient to give the industry a trial of six weeks. On a gauging scale, I would give them 60%, however I feel they can improve their skills (Hornsby & Warkeoczeski, 2000).

How they can improve their leadership

As much as Budman and Green have the customer in heart, they should understand that the greatest strength they have are the human capital, they should be treated the best possible since when they are satisfied, they will be able to offer customers good services and participate in decision making for the good of the company.

Another thing I would recommend to the managers is to value information; information is power, before they venture in a certain area they need to undertake massive research to understand the industry well so that they can make the right decision.

Future challenges

With globalization, the apparels industry is becoming more competitive; Budman and Green will be called upon to make strategic decisions to remain competitive amidst many players in the industry.

The growing people population will also lead to different tastes thus the managers will have the challenge of keeping up-to-date with current consumer needs and preferences.

With improved movement of labor among countries, the leaders will have a challenge-managing workforce of diverse cultures and background; international labor laws will also affect the company’s leadership (DuBrin & Young, 2007).

References

DuBrin, A. J., & Young, J. D. (2007). Fundamentals of Organizational Behavior. Toronto: Thomson Nelson.

Hornsby, T. & Warkeoczeski, L. (2000). New roles for leaders: A step-by-step guide to competitive advantage. Franklin: Hillsboro Press.

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