Critical Managerial Issues Essay


Successful organizations owe it to a keen and sanguine leadership and leadership style, which endeavors to provide lower level leaders and the organization in general with the core competencies of leadership/management. These include the ability to inspire and motivate employees thus inculcating attitudinal change to enhance employee performance toward the mission and vision statements of the business while endeavoring to meet the business goals and objectives (Einstein & Scott, 2001).

“Transformational leadership has been positively correlated to leader effectiveness ratings, leader and follower satisfaction, follower effects, support for innovation, and overall organizational performance” (Humphreys & Einstein, 2003). Typically, the transformational leadership entails one becoming a role model, inspirational, inculcating a sense in the employees to take personal responsibilities for their work, and ensuring that the current leadership understands the weaknesses and strengths of the employees and implement corrective measures to maximize employee performance (Bass, 1985). Kark and Van Dijk (2007) who affirms that performance is one of the indicators that characterize transformational leadership have reinforced the argument by Bass (1985) further.

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Evidently, transactional leadership is an effort and reward scenario, which relies on the leader to resolve all arising management and employee issues without delegating responsibilities on the other workforce. Thus, workers need to wait for the leader to make any decision to act upon in the event of an issue demanding action.

Drawing from the case study and based on the principles of transactional leadership style, Hank could only provide reward to the employees based on their performance in attaining the goals set by management. Thus, motivation draws on how well and what has been achieved in the set goals. In addition to that, transactional leadership draws on the ability of the leader to provide the compelling force to execute their task and responsibilities without an internal drive.

However, transformational leadership could be the most appropriate leadership approach since leaders have the skills and ability to arouse emotions in the subordinates that acts as an internal force motivating them to perform far beyond the laid down framework and standards. An idea well illustrated in the statement that “Transformational leaders can induce changes in followers’ behavior—influencing them to exert effort on tasks that are important to the organization.” (Wright, 2000).

Thus, employees could work towards attaining the vision and mission outlined by the leadership in the business organization. In addition to that, it is vital for Abraham to embrace the concept of charismatic leaders while ensuring the foundation of the leadership gains from teamwork (Conger, 1999). According to Allen (1985), inspirational motivation could also play a critical role in inspiring organizational employees to work and attain great feats without the compelling transactional approach to management.

Groves and LaRocca (2011) concluded that there is a strong relationship between the style of leadership and moral reasoning adopted by a leader. Thus, transformational leaders give preference to universal principles rather than self interests and standard rules in the process of decision making. Going even further, Jamaludin (2011) discussed the benefits of the innovative paradigm of spiritual leadership, according to which a spiritual element is needed for more effectively fulfilling the subordinates’ needs and adopting the principle of power distribution to enhance not only a particular organization, but also the society in general.

Thus, taking into account the fact that appropriate leadership style is one of the most critical elements required for ensuring the effectiveness and sustainability of a firm, it can be stated that the managers in the case under analysis have chosen a wrong leadership style and there is a people problem in the company.

Micro-Management style

The management style adopted by Abrams can be characterized with excessive control over the slight details in the working processes that is referred to as micromanagement in modern management theoretical literature. According to the findings of a study conducted by Gove (2008), micromanagement can be rather effective within a short period of time, but used over a long period, it usually has a number of negative implications for the company.

The main characteristics of typical micromanagers include excessive criticism of subordinates, irritation in case if decisions are made without their involvement, spending inadequate amount of time on observing and controlling simple tasks, rarely praising the subordinates and not looking for the opportunities to praise them.

As a consequence, the subordinate employees are depressed and frustrated, lack motivation and do not take the initiative, waiting for the permission of a manager before doing something. Kennedy (2007) stated that along with authoritarian leadership and inequitable rewards, micro-management can contribute to negative work climate and reduce the productivity of the company.

One of the characteristics of a good leadership is the ability for the leadership to provide employees with the freedom in decision-making. In addition to that, a good leader draws from the principles of persuasiveness, and fairness to organizational workers. In effect, the underlying consequences of the failure to capture what should be done by the employees which is not based on directions from the leadership are frustrations, lack of confidence in the management, fear, and reduced productivity.

Thus, one of the adverse effects of micro-management is to induce the feeling and attitude in the employee that they should not trust their decision and judgment in the event they are confronted with an issue requiring immediate decisions (Fracaro, 2007. P.6). Capillo (2003) views micromanagers as the kind of leadership that endeavors to compel others think the way they do. According to Messmer (2002), Abraham was supposed to empower employees in decision-making and demonstrate a sense of trust in them.

Instead, the leader spent a substantial amount of time on surveillance of the work of butchers, attempting to reduce the number of their beaks and small entertainment. The only reason for which the micro-management approach was applied only to butchers is that their location and type of operations made this permanent observation and excessive control more convenient when compared to the luggers who were not concentrated in a particular location during their entire shifts. This management style had a negative impact upon the motivation of butchers and their productivity.

Bashshur, Hernandez and Gonzalez-Roma (2011) noted that multiple perceptions of the organizational climate need to be taken into account to ensure the effectiveness of team work. In other words, by understating the importance of the employees’ attitudes and perceptions, the managers in the case under consideration reduced the effectiveness of the company’s operations performed by butchers in general. Applying micro-management approach to only one category of employees for a long period can become an important predictor of ineffectiveness of the processes.

Conflict management

Conflict is a compulsory attribute of any human interaction and an inevitable part of processes within organizations. Therefore, effective skills of conflict resolution are important for becoming a successful manager. Conflict arising inside of the company can significantly affect the morale and motivation of the employees.

Additionally, it may result in the increased turnover rate. Lang (2009) stated that the consequences of conflict can be either constructive or destructive for a particular organization, depending upon the approach adopted by management to resolve it and the level of the leaders’ awareness in the existing methods of resolving the conflicts. However, there is evidence that there is a gap in the curricula of undergraduate students due to which they lack opportunities for gaining the required knowledge on conflict management theories and developing appropriate practical skills.

The majority of current conflict management theories distinguish between two main types of conflicts, including those of cognitive and affective conflicts. The first category of cognitive conflicts results from disagreements about the organizational structure and other performance-related issues, whereas the second category of affective conflicts deals with conflicts arising as a consequence of the opposition of interests and relationships. On the other hand, De Dreu and Weingart (2003) concluded that these two categories are interrelated.

Analyzing the case of the conflict that arose in one of the warehouses of the Food Merchandising Corporation, it can be stated that it was cause by both performance- and relationship-related issues. Therefore, it cannot be categorized as any of these types of conflict and combines the characteristics of both groups. This case clearly demonstrates a strong relationship between the two dimensions of the hierarchy of conflict within the organization.

In the case under analysis, conflict within the business organization occurs between the butchers, the luggers, and the leaders. The leadership should evaluate the relationship between them (Angelica, 2002). On the other hand, Abraham should interview the employees about their feelings and attitude toward their peers, and capture the principles theorized in conflict management to exploit them to resolve arising conflicts.

The view that conflict arising in organizations is intrinsically bad and can bring only negative consequences is a widely-spread misconception and an important hindrance for effective conflict management. Singleton, Toombs and Taneja (2011) stated that in certain cases, conflicts are not only inevitable, but even desirable.

On the condition that they are appropriately managed in order not to destruct the team spirit and reduce the performance of the group, conflicts can be viewed as important stimuli for creativity. However, not managed in a proper way, conflicts may have negative results for the organizations, such as wasted time, decreased motivation, productivity and strained relationship between the personnel and management and between different groups of employees.

Conflict management as a form of coping response to organizational conflicts involves a wide array of activities, including communication, understanding the position of the conflicting groups and individuals and the main triggers of the conflict, dealing with emotions and problem solving.

Acknowledging the fact that conflict is not only unavoidable, but also functional and in particular contexts even desirable phenomenon, managers should make sure to use the strategies of healthy dialogue and positive relationships for resolving the conflicts and even taking the advantages from them to ensure the long-term survival of the company and fostering the creativity and innovation within the organization.


Organizational cultures are the values and beliefs esteemed in an organization. According to Humphreys and Langford (2008), and organizational culture reflects the entire personality of the organization in question. Thus, in the context of the case study, the culture could allow for open lines of communication, motivate employees toward fair treatment, entitle employees with decision on their own destiny, and lead to transformational leadership both for the leadership and the entire organization in general. Abraham could draw from Allen (1985) on the need to study continuously the effects of change of the subconscious.

According to the equity theory of motivation, employees should be treated fairly to improve their motivation. Along with providing equal opportunities for all employees, regardless of their race, gender and educational background, employees need to feel that their input is equal to the output received from the company in the form of praise and monetary compensation (Griffin & Moorhead, 2008).

In case if employees feel that there is certain inequity in the management treatment, they can impose certain measures which they believe can reduce the inequity. Applying this theory to the case under analysis, it can be stated that the issue of equity was critical for the warehouse management. The butchers could see the difference in the managers’ treatment and attitudes towards them and the luggers. Due to the innovations applied in the realm of luggers, the position of a butcher that was previously honorable and well-paid has become less desirable.

Additionally, the micro-management approach applied only to butchers because of the specifics of their working processes, could give rise to additional dissatisfaction and grievance in this group of employees. Even though the main reason for which the micro-management approach and excessive control over their operations was applied only to butchers was their concentration in a particular place during the whole shift, it was an important predictor of their concerns about inequity.

As it can be seen from the case under analysis, the butchers neglected the attempts of their manager to control their breaks and made breaks regardless of his permanent presence. Therefore, their emphasized disregard of the power of the manager was a measure the employees took to confront the inequity and inappropriate management style.

The individual perceptions of management and the employees of whether or not they are treated fairly can have a significant impact upon the levels of performance and company’s outcomes. The complex construct of individual perceptions referred to as equity sensitivity can influence the employees’ relationships with their organizations, the levels of their motivation, efforts and outcomes (Bing et al., 2009). Consequently, a multidimensional approach should be adopted for measuring such a complex entity as equity sensitivity construct.

Khalifa (2011) concluded that there is a strong relationship between the employees’ perceptions of internal and external equity and their job satisfaction which in its turn was defined as an important predictor of following work outcomes. The measures which can be taken to avoid the incorrect perceptions of inequity include informing the employees on the exact input of other employees so that they do not overestimate or underestimate them. One more effective measure is the regular performance appraisal with the following communication of the performance results to all the employees of the company.

Motivation and pay system

Employees desire to fulfill their duties effectively and efficiently when financial attainments as goals are prescribed as key motivational factor (Robbins, 2005). Thus, that is the case for the luggers and the butchers. In the context of the case, study, a financial motivational system should be designed to capture the abilities of the employees to work harder for more gains, importing the productivity of the employees with a direct bearing on the productivity and performance of the firm.

In modern management theories, the use of incentive schemes is associated with superior performance of highly motivated employees. Cox (2005) noted that along with incentive schemes, variable pay systems can be used to foster the behavioral and attitudinal changes in the employees. Both of these approaches have their advantages and disadvantages.

However, the positive impact of variable pay systems upon the employee’s motivation and performance coupled with operational outcomes should not be understated. Mujtaba and Shuaib (2010) admitted that appropriate monetary rewards can be advantageous for both managerial and subordinate staff. The pay system should be timely, market-driven and motivational for the employees. The organizational culture should be aligned with the reward systems, performance management and recognition programs. Successful companies realize the value of recognizing and reinforcing the performance of good employees.

The variable reward systems considering the advantages of good working habits can be helpful for strategically aligning the company’s values, objectives and the basics of the reward system (Rath et al., 2004). Merit pay is a system based upon determining different reward amounts for different employees depending upon their performance level. It is of paramount importance to align the pay-for-performance programs to the strategic plans of the organization. As it can be seen from the case under analysis, the employees were not appropriately rewarded for their performance and initiatives.

For example, the luggers were paid for the amounts of operations they performed within their shifts because two butchers who became luggers tried to compensate their wage losses by performing more operations within one shift (Buller & Schuler, 2003). The employees initiated technological innovations but were not rewarded for it. Therefore, the neglect of the pay system as a powerful tool of motivating the employees can be regarded as a significant deficit in the company’s human resource management strategies which should be compensated.

Empowerment is another influential tool which can be used for motivating the staff. By empowering employees as a tool to motivate them, butchers view themselves as being involved in the whole process. According to (Prater, 2004), empowerment includes equipping the employees with the knowledge and skills to execute their tasks efficiently and effectively without the demanding from them to execute tasks with skills they do not possess.

According to Kirkman and Rosen (1999), the latter approach makes employees own the entire business and the processes, and induce that in the organizational culture. According to Bowen & Radhakrishna (1991), that approach increases productivity, improves the survival changes of a business, introduces the right information and knowledge in the workers, and leads to additional development. Thus, the need for Hank and Abraham to make informed decisions with the implications of the decisions critically considered especially on its impact on organizational culture.

Evaluation of alternatives


The leadership in question characterizes Hank’s leadership to the butchers as one that expects employees to be aware of their duties and responsibilities while expecting them to execute them under strict guidance (House & Mitchell, 1974). Thus, Hank thrives on the directive leadership style. Typically, leadership is a tool that pulls employees by influence rather than by rules and regulations.

Thus, the interpersonal element critically lacks in Hank’s leadership. In addition to that, Hank’s leadership style endeavors to assert leadership presence on the group, an issue illustrated in the statement that describes Hank as a walking terror but a good supervisor. The interpersonal element requires that Hank involve a sense of humane on the employees while ensuring that the entire workforce is motivated toward the business goals. However, Hanks’ leadership is aggressively assertive.

The assertive nature of the leadership clear from the demands requiring employees to adhere to standard rules and regulations, work schedules, and established performance standards (House & Mitchell, 1974).

Studies by Dubinsky, Yammarino, Jolson, Marvin, and Spangler (1995) recognize Hanks’s leadership as one that provides employees with the tasks to attain while ensuring that suggestions made by employees are accommodative of the views of others. Therefore, Hank should endeavor in their leadership to empower transactional employees in decision making by providing guidance, thus inculcate the sense of confidence, and trust in the leadership (Avoliom & Bass, 1988; Bruce, 2009).

Thus, the sense and view that Hank is a walking terror but a good foreman be made obsolete. In the case study, it is recommended strongly that a transformational leadership style be adopted to provide the leadership required to transform the current state of leadership to a new level, because Hank’s leadership as negatively rated and in need of a transformation. However, it is important to study both leadership approaches for the rationale of adopting transformational leadership (Dubinsky, Yammarino, Jolson & Spangler, 1995).

In view of the weaknesses characterizing Hank’s leadership, transformational leadership entails changing Hank’s leadership style by adopting a style, which inculcates personal values and beliefs, thus causing change in entire business system. Typically, the leadership, under Hank with the new transformational change could create positive change of attitude in the employees, create a self-driven desire to make a following after Hank, and bring about a positive rating for Hanks’ leadership.

The transactional leadership style adopted by Hank suffers from a number of pitfalls. In the realms of Hank’s leadership, the exchanges of work and benefits employees earn are based on the input and outputs from the employees’ efforts. It is a separation between what one offers in exchange for a good or a service, thus lacking any motivation (Humphreys & Einstein, 2003; Chip, 1999).

In addition to that, Hank could borrow from the concept of transformational leadership by inculcating new prospects in the subordinates with the skills of a proactive leader. Thus, Hank could create number of opportunities for the subordinates and a framework for learning opportunities while dynamically imparting the kills, knowledge, and abilities to solve problems on their own. In addition to that, the concept of transformational leadership could allow Hank to inspire employees to work beyond meeting self-interest needs and surpass leadership expectations.

On the other hand, Mr. Abraham could initiate change in the business organization based on the concept of transformational leadership. That could be evident when Mr. Abraham inspires employees to view management positively and assent to be followers of the management while subscribing to organizational loyalty. Thus, once the leadership moves on to Abraham as a transformational leader, it is important for the new leadership to inculcate the sense of transformational leadership attributes into the culture and behavior of the organization in question.

Therefore, Abraham could significantly benefit from the leadership approach by inculcating the essential elements of a transformational leader (Ogbonna & Wilkinson, 2003). The third alternative that should be considered by the management is the innovative model of spiritual leadership enabling the leaders to better comply with the spiritual needs of their employees.

Micro-Management style

Acknowledging the fact that micro-management approach to leadership adopted by Abraham in relation to butchers has become an important predictor of the conflict arising in the company, it can be concluded that appropriate measures should be imposed for improving the existing situation and reducing the negative impact of the excessive control of the manager imposed upon only a part of the personnel. The management can consider a number of alternatives which can be helpful for resolving this critical issue.

Thus, the premises of the existing problem are not limited to only one realm and can be regarded as a people, process and structure problem. It is obvious that the manager lacks understanding of the negative impact of the chosen management model upon the motivation and performance of the subordinates (Callender, 2009). Consequently, it is a people problem which can be resolved through proper training and enhancing the manager’s awareness of the negative effects of micro-management and more effective alternatives which can be used for receiving better results.

Moreover, the issue of micro-management can be regarded as a process problem because the manager’s permanent guidance and presence in the department of the butchers is included into the manager’s responsibilities and daily activities (Rudis, 2003). Therefore, it is necessary to change the processes and reestablish the priorities so that the manager could spend more time and efforts on other activities apart from excessive control over one department which reduces the time which can be spent on resolving the issues in other departments and realms.

The third alternative is to change the structure of the organization. One of important predictors of Abraham’s permanent presence in the department of butchers is the location of this department and the organization of the working processes in it. Though at the current moment of development, it is hard to change the operations performed by the butchers, the management should consider the opportunity of using certain technological innovations to increase the effectiveness of operations and improve the outcomes. One more option is to replace the department so that Abraham could not spend so much time in it.

Generally speaking, the management of the warehouse should consider the potential advantages of making changes in the people, process and structure realms of their organization to decrease the negative impact of the micro-management approach and reduce the concerns about inequity rising in the butchers.

Conflict management

Certain measures need to be imposed to resolve the conflict between management and subordinates on the one hand and different categories of the staff on the other hand (Ryan, 2009). From the case under analysis, it is evident that the management neglects the existing conflict and does not use any strategies to resolve it. However, as it can be seen from the received outcomes, this approach is ineffective for resolving the conflict and using it as a driver of innovation for the company.

The three alternatives which can be used for resolving the conflict in the company include using disregard of the existing problem which is actually used by the management but which proves to be ineffective. The second alternative is to define the main triggers causing the conflict and define the character of the conflict, categorizing it as cognitive or affective. In the context of the case study, it can be stated that the conflict has a mixed character and combines the features of both categories (Perlow et al., 2002).

It clearly demonstrates that the factors from these two categories can be closely interrelated. It is significant for the management to perceive conflict as an inevitable part of the interaction between the employees and a significant part of the working processes. The managers should not consider conflicts as something intrinsically bad and need to see potential benefits in conflicts arising within the organizations. The findings of the recent studies have revealed that conflicts can become important facilitators of creativity and changes in the companies and ensure their long-term survival and sustainability.

Thus, the third alternative is to use conflict to make certain improvements in the structure and organization of the company (Thomas, 2010). Analyzing the main underlying causes and core drivers of the conflict, managers would be able to reduce its dysfunctional consequences and place the main emphasis upon the improved creativity and driving changes through the resolution of the conflict and complying with the conflicting interests of different parties.

Among the main alternatives which can be used for treating the conflict in the company, conflict management and using the conflict as a driver of creativity and change would be most effective option which would enable the managers to take the advantages of the conflict instead of viewing it as a necessarily negative phenomenon.


The managerial issue of equity is critical for the situation discussed in the case under consideration. The equity sensitivity of different categories of employees needs to be taken into account for developing appropriate strategies and improving the motivation, performance and outcomes of managers and subordinates. On the one hand, butchers can feel that they are treated unequally and are in worse position as compared to the lugers because of Abraham’s excessive control. The micro-management approach adopted by the manager for only one part of the personnel has become an important predictor for the concerns about inequity in butchers.

Additionally, the two ex-butchers who decided to transfer to the department of luggers could feel that they were treated unequally because of the internal conflict in the department of luggers which had impact upon the processes and the use of the equipment by the employees. The alternatives which can be used for resolving the existing problem of inequity sensitivity in the employees include the increased awareness of the employees’ on the input made by other employees (Chambers, 2004).

This could prevent the employees from underestimating or overestimating somebody’s input. Additionally, it is significant to conduct regular appraisal of the employees’ performance to measure everyone’s achievements and progress. Going even further, the information on the appraisal results should be disseminated among the employees. Another alternative is to detect the main causes of the inequity sensitivity and define if some of them are adequate and could be eliminated by means of organizational changes.

Estimating the potential effectiveness of each of these alternatives, it can be stated that combination of all of them can be the most effective solution of the existing problem. By appraising the performance and disseminating this information among the employees, the management of the warehouse would be able to only partially resolve the problem. It is important to create favorable conditions to foster the idea of equal treatment among the employees (McConnell, 2006).). In other words, to disseminate evidence on equal treatment, the management should answer the question whether the inequity sensitivity has substantial ground.

The managerial issue of equity clearly demonstrates that all realms of the organizational culture are closely interrelated and need to be viewed in their complexity. Thus, the issue of equity sensitivity and positive relationships between the management and the subordinate employees and different departments cannot be resolved separately from the rest of the realms, such as organizational structure, conflict management and motivation of the employees through appropriate monetary compensation.

Motivation and pay system

Monetary compensation is an important predictor of the employees’ motivation and performance. Appropriate reward system can be helpful for improving the employees’ attitudes and their equity sensitivity. The first alternative which can be adopted by the management of the warehouse is to leave the compensation system unchanged, therefore, to pay for the amount of the completed operations (Shepstone & Currie, 2003).

The second alternative is to adopt an incentive system to improve the employees’ job satisfaction and their corresponding motivation. The third alternative is to develop a pay-for-performance system which has also proven to be effective for encouraging the employees to adopt effective working practices and improve their performance because outstanding achievements and performance would have a positive impact upon their monetary compensation.

Estimating the potential value of these alternatives, the management of the warehouse should consider positive and negative implications of each of them and take into account the specifics of the operations performed by different departments. Thus, it is of paramount importance to align the chosen pay system with the strategic goals of the company (Bielaszka-DuVernay, 2008).

In other words, regardless of the fact that the impact of the monetary compensation upon the employees’ motivation is substantial, any decisions related to this realm should be balanced with the rest of the organizational strategies. For instance, the management should make sure that the adopted payment system does not contradict the principle of equity promoted by the organizational culture.

Understanding that their input into the development of the company and realization of its goals does not remain unnoticed, the employees would make better achievements and enhance their performance because their self interests comply with the interests of the company. For instance, the butchers were not properly motivated to improve their performance and could make long breaks in their work. As to the luggers, they were not encouraged to promote any innovations and did so only in order to simplify their operations and reduce the physical load.

Therefore, analyzing the main deficits in the existing payment system in their relation to the employees’ motivation and performance, the management could make the necessary improvements and enhance the performance of individual employees and organization in general.

Supported recommendations

The main recommendations which should be considered by the management of the company include the changes in the organizational culture, coaching of the managers and employees and reorganization of the processes. Allenbaugh (1983) views coaching as a tool organizational leaders use to identify the performance outcomes employees inherently value in their work by first establishing good communication between the leadership and the workers (Barkema et al., 2002).

Typically, research shows that coaching is a tool Hank could embrace as a leadership approach to enable organizational the leadership achieve organizational objectives and attain outlined goals through others. Coaching enables organizational employees capture their potential and maximize performance since leadership challenges are sometimes complex as is evident from the case study. In the case study example, a number of benefits to be realized by the current leadership include the synergies due to focused relationship between employees as a team and the leadership.

Effecting coaching ensure employees experience intimate relationships between themselves and the leadership, develop a sense of trust, develop candid communication between the team and the leadership, and facilitate growth in all respects of organizational growth (Berrey, Avergun & Russ-Eft, 1993). Typically, coaching is tactical and if integrated into the management style embraced by Hank, could have enable him inspire employees pursue and attain their goals while developing a strong connection and liking with the leadership.

In addition to that, Hank could evaluate, through observations how the butchers as a team interact to design and develop a strategic approach of enhancing communication between the butchers and understand their job better. Hank could learn from observations, as “observation of the employee’s interactions with coworkers and job performance factors” (Allenbaugh, 1983, p. 24) is significant in understanding employees and acquiring more insight and in the fact-finding process, which involves assessment and feedback in the coaching process.

To derive the coaching benefits to the current business organization, Hank could need to enhance the relationship between the leadership and the management by changing openly with the butchers on their thought and feelings about their current job. The feeling and thought could be the baseline for developing a plan that outlines the course of action, which is characterized by behaviors and behavioral changes that might result from the coaching process by the leadership.

Thus, ambition, a turnaround of the way employees work, rebuilding of the career track of the butchers, and hope are inspired in the butchers. In addition to that, the leadership under Hank could gain by addressing derailed behaviors, enhance organizational cultures, enhance, and facilitate strong binds between the leadership, the employees and the butcher’s team, and peers. Thus, Abraham could provide support and direction for the butchers improves their performance by setting performance improvement targets.

In addition to that, Abraham, with well-developed leadership skills could endeavor to identify reasons that might lead to the failure to improve performance and other related issues. However, the strategy to improve performance is correlated strongly to another micro-management element that characterizes the current case study (Bowen & Lawler, 1992).

In the context of the case study, Abraham kept a stern eye on the employees by perpetually making continued follow-ups with a presence that the employees disliked. However, Abraham was not aware that this kind of management style could demoralize and demotivate the butchers in the pursuit of their daily tasks.

Typically, the elements that characterize a good leader including imagination to provide Abraham with the flexibility to conjure up a picture of the consequences of the leadership approach. In addition, Abraham lacked the directing knowledge on other characteristics of a good leader, which include confidence, persistence, strong values, the creativity to micro-manage many of the tasks executed by the butchers, dedication, and adaptability to new changes within the organization. Thus, employees fail to identify any truly assigned tasks and fail to involve themselves in executing tasks that are not delegated to them (Presutti, 2006).

Based on the case study, Abraham embraced the micro-management concept to control work and the way butchers thought. However, Abraham had another standard of allowing luggers work in their stake while at the same time attempting to compel them do things from his perspective, an approach that made him encounter several leadership problems with the luggers, a typical characteristic of the micro-management approach (Wright, 2000, p. 1).

Thus, the employees are denied the freedom of imagination, use of their intelligence, likeability for the leadership, lack self-drive and motivation to set goals, become intolerable with time, lack any sense of humor and miniature chaos prevail at the work place.

The case study shows high performance employees viewing themselves as inequitably handled instead of leading to job dissatisfaction. Adams (1963) theorized that subordinates negatively view leaders if they view them and being too directive. That, according to House and Mitchell (1974) imparts a negative sense in the employees who feel a sense of imbalance between their inputs and outputs in an organization.

Thus, there is the need for Mr. Abraham to compensate the workers adequately for their inputs based on a fair scale of work-pay approach. Other issues to address include the best approach to make employees feel appreciation for their work, and the enjoyment and motivation one is likely to get from one’s work.

Mr. Abrams’s leadership style is solely the reason from the deteriorating morale. That includes the micromanagement style, and other issues related to transactional leadership above mentioned. Change is critical in any organization as business environments are also dynamic (Geller, 2002; Chonko, 2006). Mr. Abram should provide an environment that is flexible and accommodates change. Thus, issues such as negative feelings, empowerment, rigidity, fear, bad experience, and reduced job securities contribute to resistance to change (Washington & Hacker, 2005).

Abrahams and the entire leadership should lay strategies to implementing change by learning on what is entailed in the concept on change. Among the issues for Abraham and Hank to address ate the methods of handling workers, identify areas that resistance to change is experienced and design agreeable methods of implement change while inspiring confidence in the employees on the benefits they are likely to experience when change comes in (Geller, 2002; Garrison, 2005; Caruth, Middlebrook & Rachel,1985; Chonko, 2006).

Based on the case study, a number of issues need to be addressed include the leadership adopting transformational leadership, employee empowerment in decision-making. In addition to that, the leadership should attempt to inculcate personal values and beliefs, employee satisfaction, support employee innovation, embrace charismatic leadership characteristics, attempt to be role models, and take corrective measure at leadership and employee levels.

In addition to that, Hank and Mr. Abrahams should endeavor to develop leadership skills and attempt to integrate transformational leadership components that might end up benefiting the leadership, the employees, and the organization at large. That includes personal mastery of leadership issues, personal integrity, and high level of confidence, a mental picture of continually improving the organization, inspiration of team learning in the employees, personal conviction of the moral beliefs of the leader, and charismatic attributes in the leadership.

The first step towards organizational success which should be taken by the management of the warehouse is to reconsider the existing organizational culture and the values promoted in it. The lack of attention towards the employees’ motivations and management-subordinate relationships is one of the major deficits in the current organizational culture.

Equity and appropriate reward should become the main principles promoted in the company’s organizational culture. Realizing the fact that there is a strong relationship between the employees’ motivation, their performance and the company’s outcomes could be the first step towards improvement in the performance and better achievement of the business goals. Coaching of the managers could be helpful for increasing their awareness on the importance of motivating the employees and adopting an appropriate leadership style for creating favorable climate within the company.

One more recommendation is to organize performance appraisal for the employees and disseminate evidence on the input and progress made by each employee that would be helpful for eliminating their biases and tackle the problem of inequity sensitivity. Along with coaching the managerial staff and communicating the company’s mission to the employees, the management should make certain changes in its processes and structure. Furthermore, it is recommended not to ignore the existing conflict and impose measures to manage it and use it as a driver of creativity and change within the organization.

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