1. Practical Implications: what are the implications of this case to business leaders, employees and society as a whole? what did you learn from the case?

2. Recomendation for Improvement: Clearly state how the organiztion can improve its leadership performance based on the lessons learned from the case. what specific measures should be taken and why?

3. conclusion: summary of the case highlighting the main points.

CHAPTER 4 CONTINGENCY LEADERSHIP THEORIES CASE Foxconn Technology Group IH ave you ever heard of Foxconn Technology Group a good job running her old department Chang never did a and its founder and CEO Terry Gou? It is the larg- design work, nor supervised it. The designers are all engineer est exporter out of China. Gou started Hon Hai who are paid well and who were doing a good job according t Precision Industry Company the anchor company of Foxconn their prior supervisor Lee. As Chang observed workers in he Technology Group, in 1974 at age 23 with a $7.500 loan usual manner, she realized that all of the designers did their wor from his mother to provide the lowest total cost solution to differently. So she closely observed their work and looked fo increase the affordability of electronics products for everyone good ideas that all her employees could folow. It wasn't long be Foxconn has been the most trusted name in contract manu. fore Chang was telling employees how to do a better job of de facturing services. Some of the major companies Foxconn signing the custom specifications Things were not going too well makes contracted products for include IBM, Cisco, Microsoft however, as employees told Chang that she did not know what Nokia, Sony, Dell, Hewlett Packard, and Apple. If you have a she was talking about Chang tried to rely on her authority, which PlayStation, computer or smart phone. there is a good chance worked while she was watching employees. However, once she that all or part of it was made by Foxcom left one employee to observe another the workers went back Terry Gou has been characterized as always thinicing about to doing things their own way Chang's employees were com- a way to shave another nickel off the cost of a product, as a plaining about her being a poor manager behind her back charming salesman, as a daring strategist, as a ruthless taskmas The complaints about Chang being a poor manager got to ter and as a rencarnated Henry Ford. Gou is a bilionaire, but Terry Gou. Gou also realized that performance in the design he says. "I think for me. I am not interested in knowing how department had gone down since Chang took over as man much I have. I don't care. I am working not for the money at ager. Gou decided to call Chang into his office to discuss how this moment. I am working for society. I am working for my things are going employees. 45 GO TO THE INTERNET: To learn more about Although Terry Gou's story is interesting in this case we Terry Gou and Foxcom visit its Web site (http://www. focus on lower level manager Chang (Please note: Foxconn foxconn.com). is an exsting company. However, Chang and Jackie Lee are not Support your answers to the following questions with spe the names of actual managers at Foxconn they are used to cfic information from the case and text or with other informa illustrate contingency leadership) tion you get from the Web or other sources Chang worked her way up to become the manager in -445 that all or part of it was made by Foxconn. left one employee to observe another, the workers went back Terry Gou has been characterized as always thinking about to doing things their own way. Chang's employees were com. a way to shave another nickel off the cost of a product, as a plaining about her being a poor manager behind her back charming salesman as a daring strategist, as a ruthless taskmas The complaints about Chang being a poor manager got to ter, and as a reincarnated Henry Ford. Gou is a billionaire, but Terry Gou Gou also realized that performance in the design he says. "I think for me. I am not interested in knowing how department had gone down since Chang took over as man much I have. I don't care. I am working not for the money at ager. Gou decided to call Chang into his office to discuss how this moment. I am working for society. I am working for my things are going employees GO TO THE INTERNET: To learn more about Although Terry Gou's story is interesting in this case we Terry Gou and Foxcorn, visit its Web site (http://www. focus on lower level manager U Chang. (Please note: Foxconn foxconn.com). is an existing company. However. Chang and jackie Lee are not Support your answers to the following questions with spe. the names of actual managers at Foxconn; they are used to cific information from the case and text or with other informa- illustrate contingency leadership) tion you get from the Web or other sources. Li Chang worked her way up to become the manager in a department making parts for the iPad. Chang's job was to 1. Which leadership style would Fiedler say i Chang uses! supervise the production of one part that is used as a com 2. Using Exhibit 4.3 on page 115. Fiedler's contingency ponent in other products Running the machines to make the leadership model, what situation and leadership style standard parts is not complicated, and her employees gener are appropriate for the production department and for ally find the job to be bonng with low pay. Chang closely su the custom design department! pervised the employees to make sure they kept production 3. Why isn't Chang doing an effective job in the design on schedule. She believed that if she did not watch the em- department ployees closely and keep them informed of their output, they 4. What would Fiedler and Kerr and Jermier recommend would stack off and miss production goals. Chang's employees that Chang do to improve performance! viewed her as an okay boss to work for as she did take a per 5. Which of the two base continuum leadership styles sonal interest in them and employees were productive. Chang would Tannenbaum and Schmidt recommend for Chang did discipline employees who did not meet standard produce and other managers of the design department tivity and she ended up firing some workers Jackie Lee, the manager of a larger department that made 6. Which path-goal leadership style would House rec instruments to customer specifications retired and Chang was ommend for Chang and other managers of the design guen a promotion to manage this department because she did department