The Peoples Bank of Bradbury (10)

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Southern New Hampshire University *

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MBA 699

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Psychology

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Feb 20, 2024

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Uploaded by AriCari4

2-2 Module Two: The Peoples Bank of Bradbury PSY-614 Psychology of Leadership Southern New Hampshire University Ariana Carter Professor Irina Zlatogorova

Organization Problems In the case of the People's Bank of Brandbury there are Multiple red flags that stood out to me. The first major Issue that jumps out to me is the unpaid employees. Uncompensated employees decrease morale and productivity leaving individuals feeling undervalued. It can give them a sense of cognitive dissonance as they struggle to come to grips with the fact that they are expected to give their all and work hard yet they are not receiving any external or extrinsic reward for their efforts (Bruce, 2011). Refusal or an inability to pay workers suggests major character flaws within the leadership, from a lack of motivational understanding to a superiority complex. Henry demonstrates a more authoritarian, take-charge leadership style which can lead to short term success but long-term problems, with employees living in fear of their jobs or well-being. This creates a stressful work environment and can make employee retention challenging, as well as cause a struggle when it comes to attracting new top-tier talent (Chira Robert 2016). With the organization already having a bad reputation it is not doing them any justice with the community disliking Mr. Kepple and his values. This can prove to be a challenging situation to overcome as people will not want to work for or support someone with an abrasive character as such. Nobody will be interested in doing the job. Henry Kepple had a mixture of authoritarian and democratic leadership style as he does take charge with no questions asked but still makes efforts to value the input of his employees. His authoritarian approach may have been what the organization needed at the time of him being hired, as the democratic style revolves around the idea that everyone should play a part in the group's decisions but still requires guidance and control by a specific leader. Leaders with styles like Henry's may be hired to end differences of opinions, address specific problems, or present a strong front for the company. It is

important that their tenure should end when the need is met. The democratic style forces the leader to make decisions on who should be called upon within the group and who is given the right to participate in, make, and vote on choices. Henry needs to be cognizant of this and delegate more responsibilities to his employees, otherwise the success of the organization could die without him being there (Woods, 2010). Delegation has many benefits aside from continuity, including efficiency gains from spreading the workload, Employees will feel more empowered, and things will get done. The benefits of more diverse and inclusive participation in the work, and the increasing responsibility and capability of the involved people/individuals. With Henry’s budget cuts and staff cuts it could leave his team working in fear as they are concerned about their employment status, which can lead to an increase in anxiety and reduction in productivity, which can lead to a decrease in employee morale (Bruce, 2011). Future success, contingent upon Mr. Kepple's presence, is bad for the organization, is causing him undue stress and has gotten in the way of planning for the future. It is clear that he cannot relinquish control, properly delegate, nor encourage and prepare for new leadership within the company. This results in putting a lot of pressure on him and creating a growth bottleneck as all high priority decisions need to go through him. An Authoritarian leadership style can leave employees living in fear as well as discouraging others from stepping up and taking a leading role or questioning the processes. Leaders should place warmth first, not fear, yet the power wielded by an autocrat has the potential to be used as an instrument of fear and control. Enabling and supporting others should be the focus of leaders regardless of style, something that can be lost under authoritarian rule. The democratic leadership style is not immune to problems. It can lead to communication failures and uncompleted projects as

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