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Donna is the Vice President of a management consulting agency that focuses on providing business advice to new business start-ups. She is the head of her Department, which centers on assessing and providing financial and accounting advice to these new start-ups. She reports directly to the Chief Executive Officer. This consultancy has been careful in employing new hires due to the heightened rivalry from its competitors for government funding. However, they have concerns regarding the hiring and firing rates within the organization. Two key senior staff members, and a manager from the accounting unit have recently resigned.

Donna has to travel on a fairly regular basis and has two managers reporting to her, each of these managers are accountable for a number of clerks. These managers, John and Jackie were employed within the last eight months.

• John has a strong background in evaluating new business start-ups. He has staff members who provide accounting support to other divisions. John is extremely methodical; however, he often takes an extreme view of matters no middle ground. Top members of the organization appreciate Johns contribution and he is extremely driven and expects the staff members to pull their weight.
• Jackie has an extremely robust background in Corporate Finance. She manages a number of projects and is known as a problem solver, and is very considerate of her staff. She is very structured and has a significant experience in assessing new start-ups. She is a very hard worker and sometimes work to the point of exhaustion.

The senior managers in the organization are of the view that personnel are becoming overburdened and overworked due to high rates of staff attrition. Personnel have also mentioned that Donnas abrasive style leaves them feeling upset. Further, Donna does not communicate plans with her managers, so they are having a hard time assigning work to lower level staff members. Donna however blames this on a lack of communication and information from the finance department in order to finish the budgets. The finance department disagrees and says they have provided more than sufficient information.

As staff members become upset, the managers are becoming discouraged. They feel like they are incapable of supporting their staff or solving the problems being experienced without obtaining important data.

Questions:

1. How can Donna most effectively use both her leadership as well as her management skills in her position as Vice President? What combination of the two do you think would work best in this setting?

2. Which leadership style do you think would be more effective in this situation? Explain the reason for your choice.

For QUESTION 3:

Stan is thinking about starting a toxic waste disposal business. He plans to collect the waste of businesses that produce it and then dispose of it in a sanitary landfill. In order to start this business, Stan will need a substantial amount of money to buy and develop the landfill site and purchase five trucks capable of transporting toxic waste.

Question:

3. What concerns would you have about operating this business as a sole proprietorship if you were Stan? What alternative form of business organization would you recommend and why?