Reference no: EM133108160
Royal Leather Furniture
Royal Leather Furniture was established in 1996 by Mr Johannes Nkosi. What started off as a small company in rural South Africa (eMalahleni, Mpumalanga) soon developed a national reputation for the excellent design and quality craftsmanship of its products. The company gradually expanded to selling leather furniture nationally. The labour costs, in particular the salaries of the craftsmen who were responsible for the colourful, vibrant and high-quality designs of the chairs, made up a huge percentage of the budget of this fast-growing business.
As the business became too big for Johannes to manage on his own, he appointed a top management team to support him. The purpose of the team was to assist in the day-to-day management of the company but to also initiate and execute a project to curb costs and expand the business even further. From the beginning, it was clear that the new top management team was made up of very different personalities. The team consisted of five members, namely Joanne, McIntosh, Sue, Nathi and Nkele. Sue, the team leader, introduced everyone and discussed the goals and objectives of the project, including the deadline for deciding about the budget of the craftsmen responsible for designing the leather chairs. She also listed some of the rules for the team and the consequences if people did not abide by the rules. The team got along well until Joanne, who is a bit bossy and wants her own way, made decisions without consulting the other team members. She decided to introduce a new computer program. The first decision the team took was to introduce an interactive website. By following the instructions on the website, many customers would be able to design their own, customised chairs. The team calculated that this initiative would enable them to cut costs by at least 30%. It also meant that 40% of the craftsmen who were responsible for new designs would now be obsolete. This initiative promised to make a positive impact on the salary budget. These figures were not open to the public.
McIntosh, who is a very shy person, did not question the reasons for the decision. Nathi and Nkele questioned Joanne on her decision, which became a problem. Sue tried to calm the situation down but failed to do so and Joanne became emotional and threatened to leave the team.
The new top management team introduced the initiative to the artisans even though all the members were not happy about the proposed changes. The team requested each artisan to provide creative input into the new interactive website, based on their knowledge and experience, to the web designers.
2.1. There are various factors that can shape the behaviour of team members. These include leadership, roles, norms and conformity, communication, cohesiveness, decision making and conflict. Identify at least two (2) of these factors that might be shaping the behaviour of the group/team members in the case study when they were confronted with the changes in the organisation. Motivate your opinions thoroughly, based on the theory available and information shared in the case study.
2.2. In 1965, Bruce W Tuckman proposed a five-stage model of group formation. Which stage do you think the leadership team at Royal Leather Furniture is in? Motivate your answer thoroughly based on the theory as well as the information in the case study.
2.3. Identify and discuss the ethical problems in the above case study.