Stone Finch, Inc.: Young Division, Old Division Case

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Fundamental Management Problem
In the Stone Finch, Inc.: Young Division, Old Division case, the fundamental leadership problem is the leadership exhibited in Jim Billings, president and CEO of Stone Finch, Inc. Billing’s leadership style is questioned by his favoritism towards the subsidiary division and creating an environment that did not appreciate those in the water products division.
Billings favoritism towards the subsidiaries stemmed from his desire to reward and recognize a group of innovative people of the solution division. This group was planning on leaving the company, but ended up staying as a new “entrepreneur subsidiary” of the board’s approval. Billings rewarded the subsidiaries for their promising advancement in their field. However, Billings did not calculate for the success of subsidiaries and overtime the favoritism toward the subsidiaries was an economic issue. The water products division felt as though the recognition was not fair to the people making the company a profit. This issue in Billing’s leadership stemmed from his desire to create an environment where work and innovation were key. His style was one that mirrored the Initiating Structure of the Ohio State studies.
Another, issue was the environment that the leaders created where those of the water products felt lesser than those in the …show more content…

By making the employees feel like they had a purpose, their work was worthwhile, and they were making a difference, the leadership would have strengthened the employees desire to work for the company. This leadership style is a good approach because it pleases all the employees of the company. A good way to show an employee oriented leadership style would be to show the employees they matter. With leadership implementing reward and recognition systems, they can show the employees they care about

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