Leadership

Concept Application of Concept in the Scenario or Simulation Reference to Concept in Reading

A Cognitive Leap Trust

In a conversation with Greg Thoman, Chief Human Resources Officer, Don Ruiz, Chief Executive Officer, discusses being pressured by Board members to get rid of members of his leadership team. Don has a very strong professional and personal relationship with some members of his team. The Board is making recommendations for Don to eliminate certain members of his team in order to address the SEC requirement surrounding issuing an IPO. Don has a great deal of trust in the effectiveness of his team and explains that his team has proven itself as being successful on many occasions and does not feel this time will be any different.

"A Cognitive Leap Trust is defined as reciprocal faith in others' intentions and behavior.35 Experts on the subject explain the reciprocal (give-and-take) aspect of trust as follows: When we see others acting in ways that imply that they trust us, we become more disposed to reciprocate by trusting in them more. Conversely, we come to distrust those whose actions appear to violate our trust or to distrust us.36" (Kinicki & Kreitner, 2004)

Cohesiveness

During a meeting on March 8, 2005 The Gene One leadership team had differences of opinions regarding the company's decision to offer an IPO. The offering of the IPO is being recommended to help the company generate capital for new development, advertisement, and marketing to help the company stay successful. Based on these differences of opinion members of the leadership team began to take sides regarding the direction of the company creating a lack of cohesiveness.

"Cohesiveness is a process whereby a sense of we-ness emerges to transcend individual differences and motives" (Kinicki & Kreitner, 2004).

Quality Circles

At the water cooler on March 29, 2005 Michelle Houghton, Chief Financial Officer, and Greg Thoman, Chief Human Resources Officer, meet to discuss the issue relating to the Sarbanes-Oxley Act requirements. The Act requires an IPO Board to have at least one member with financial experience. Unfortunately The Gene One leadership team does not have the necessary experience to meet the requirements of the act. Michelle and Greg form a quality circle to research the leadership requirements as dictated by the Sarbanes-Oxley Act.

"Quality circles are small groups of people from the same work area who voluntarily get together to identify, analyze, and recommend solutions for problems related to quality, productivity, and cost reduction"((Kinicki & Kreitner, 2004)

Organizational Culture

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