MGT301: Case Study Analysis of Astratech Communication International

This case study analyzes the leadership approaches of George Anderson, CEO of Astratech Communication International (ACI), focusing on the challenges faced by the company in Mexico and California, including issues of low production and growth. The analysis explores the application of charismatic and situational leadership styles adopted by George to address problems like lack of motivation, inefficiency, and weak cost accounting. The study examines the effectiveness of these leadership styles, including the implementation of a four-day workweek and subsequent layoffs, and their impact on employee performance and cost management. Recommendations include adopting a transformational leadership style and allocating leaders for respective projects. The conclusion highlights the impact of George's leadership in resolving company issues and improving operational efficiency.

A Case study analysis:
Astratech Communication
International (ACI)

Introduction
 Leadership style significant for operating organization
 Leadership styles : autocratic, charismatic , democratic & situational
(Alimuddin & Sukoco, 2017)
 Astratech Communication International (ACI) explored
 Company operates in Mexico & California
 Company facing issues low production & growth
 Assignment explore leadership style of CEO of company

Description of issues
 Astratech Communication International (ACI) extended in
international market
 Extended operations resulted in issues
 CEO identified issues like lack of motivation, inefficiency & weak cost
accounting
 New leaders identified lacks of clear vision & acceptable plan
 To improve CEO approved four days of working which resulted in gap
in production
 CEO finally introduced five days of working to serve clients better

Leadership style at ACI
 CEO , George targets to improve the quality of product
 Target set by CEO to reduce effectiveness of issues identified
 employees performance & accounting reports analysed
 Analysis shows massive cost accounting negligence along with low
engagement of employees
 Low productivity encountered due to low quality equipment’s usage
 CEO implemented four days of work in a week to reduce business
operations cost

Techniques leadership in ACI
 CEO adopted Charismatic style of leadership to deal with issues
(Ashikali & Groeneveld, 2015)
 CEO adopted this leadership style to increase productivity of
employees & prevent company from lay off of employees
 George’s leadership style even reflects Situational style
 CEO focuses upon quick action & this leadership adopted by CEO
aids to analyze issues faced by company

Effectiveness of leadership style
 Application of situational leadership style by CEO shows lay off of members
necessary to increase company's profit margin (Banks, et al., 2016)
 Situational style by CEO lay off of members necessary to fulfill needs of clients
 Customer retention issue faced for this reason laying off 900 employees
undertaken (Boehm & Dwertmann, 2015)
 Analysis even showed line managers performance issues well for which clients
suffered
 Lack of mission & vision resulted in lack of coordination among employees
along with cooperation
 These issues identified due to situational style

Effectiveness of leadership style
 Instant decision making power of CEO resolved the issues faced by company
 Leadership style of CEO shows that CEO identifies correct strategies to handle
issues
 CEO collaboration with subordinates & members & critical thinking process
another reflection of adoption of situational style
 Situational style adopted by CEO aided to resolve issues faced by company

Recommendations
 Company must allocate leaders of respective projects
 This approach will aid company to monitor employees more closely
 CEO must change leadership style
 Adopt Transformational style because this will aid to change
strategies in order to foster optimality within organization

Conclusion
 CEO adopted charismatic style of leadership
 Along with charismatic style CEO adopted situational leadership
style
 Leadership style visible reflected through decisions of implementing
four days of work in a week
 CEO takes initiative to resolve issues faced by company

References
Alimuddin, A. & Sukoco, A., 2017. The Leadership Style Model That Builds Work Behavior
Through Organizational Culture. JURNAL LENTERA: Kajian Keagamaan, Keilmuan
Dan Teknologi, 3(2), p. 15.
Ashikali, T. & Groeneveld, S., 2015. Diversity management in public organizations and its
effect on employees’ affective commitment: The role of transformational leadership and
the inclusiveness of the organizational culture. Review of Public Personnel
Administration, 15(7), pp. 146-168, DOI: 10.1177/0734371X13511088.
Banks, G., McCauley, K., Gardner, W. & Guler, C., 2016. A meta-analytic review of
authentic and transformational leadership: A test for redundancy. The Leadership
Quarterly, 27(4), pp. 634-652, doi S1048984316000163.
Boehm, S. & Dwertmann, D., 2015. Forging a single-edged sword: Facilitating positive
age and disability diversity effects in the workplace through leadership, positive
climates, and HR practices. Work, Aging and Retirement, 11(2), pp. 41-63, DOI:
10.1093/workar/wau008.