Case Study – Profitel Inc Essay

Decision maker: Lars Peeters, along with his team of executives

Question 1: Which perspective of leadership best explains the problems experienced in this case? Analyze the case using concepts discussed in that leadership perspective. Leadership is defined as the collective effectiveness and successes of organizations members by influencing, motivating, and enabling others to contribute. In this case Lars Peeters, newly appointed CEO of Profitel, fails to maintain his role by lacking key ingredients central for effective leadership. Together with his executive team he hired from his previous employment, weaken Profitel’s image and success with customers, government leaders and even employees.

Listed below are perspectives of leadership I have identified in this case that best explain the problems at hand: Contingency Perspective– Lars had not diagnosed Profitels’s situation thoroughly and adapted their style and objectives to fit that situation. Instead of using the employee’s thoughts and insights as a powerful recourses, Lars went ahead with his team of executives and implemented his strategies disregarding any feedback.

Behavioral Perspective– Although Lars displays task-oriented behavior by pushing company to reach a certain goal, he lacks in people-oriented behavioral skills. This could explain for his disregard to his subordinates trust and lack of employee morale. Transformational Perspective– Lars failed to create a strategic vision for Profitel. By using one he could have build employee morale by increasing commitment and rewarding based on performances.

Questions 2: What can organizations do to minimize the leadership problems discussed above? In this case Profitel’s broad based there to hire Lars as CEO based on reputation rather than focusing on how his expertise could benefit their company. Lars took incentive in implementing all major decisions without others input or involvement. The board of directors seemed to have minimal role in the company’s development and should have taken more precautions like overseeing major decisions. Also they should have evaluated his internal performance through feedback from employees and external performance through customers.

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