Leadership Case Study: Evaluating Ghosn's Leadership at Nissan

This case study examines the leadership of Carlos Ghosn during his tenure at Nissan, focusing on his strategies for organizational change and turnaround. The analysis delves into Ghosn's predominant leadership style, which is identified as primarily autocratic, and evaluates its strengths, such as st...Read More

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Table of Contents
1. Introduction:................................................................................................................................2
2. Overview of the facts:..................................................................................................................2
3. Define and explain the predominant leadership style of Ghosn..................................................2
4. Explain the strengths and weaknesses of this leadership style....................................................3
5. Evaluate the effectiveness of the change leadership at Nissan....................................................4
6. Demonstrate the alignment of beliefs and values, words, and actions........................................5
7. Conclusion:..................................................................................................................................6
Reference List:.................................................................................................................................7

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1. Introduction:
Thesis statement: Leadership and its quality leaves important role in achieving organizational
success.
The study has provided detailed overview about various leadership styles and quality that
a business organization follows in order to run the entire process of business.
2. Overview of the facts:
Carlos Ghosn had talked about employee motivation and employee-leader collaboration
at the beginning of the case. He ensured the steps that will be taken by him in the future is
primarily aimed at synchronizing business growth with employee motivation. As the case
unfolds it become evident that Ghoshn has failed to execute his words into action. While there is
no denying that his leadership and efficiency has helped the company regain strength, it was
nevertheless at the cost of job satisfaction of the employees.
3. Define and explain the predominant leadership style of Ghosn
Two types of leadership style is primarily followed within organization that includes
participative leadership style and autocratic leadership style. By following autocratic leadership,
Ghoshn had pressurized the employees of the company to the extent that some of them have
vocalized strong disdain towards his extremist techniques and few employees have also
contemplated resignation. For quite some time, the other authorities of the management were
willing to loom past his autocracy and harsh methods of leading since his efficiency was
unparalleled and his motives were only helping the company reach heights. Soon enough, the
situation was back to square one and Ghoshn decides to change the essential policies of the
system. The system was formulated in accordance with the culture and tradition of Japan, a

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change in the entire system may not work favorably for the scope and opportunities of the
organization. His words promised a change in the market positioning of the company and
employee satisfaction within it; but the discussion in the case suggest that his promises have
failed to materialize in the course of his actions.
4. Explain the strengths and weaknesses of this leadership style
As emphasized by Bolden (2016), in his article has stated in an occasion, “It is hard to
turn on the television, open a newspaper or attend a conference without coming across
numerous references to leaders, leadership and leading”. Leadership style and its qualities vary
from one business scenario to another. Leaders on the other hand have to adopt appropriate
leadership approaches as per different business situations. After evaluating Nissan Case Study, it
is observed that Ghosn’s approach is endowed with numerous strengths and weaknesses. As a
leader, Ghosn is endowed strong management skill and competency. In order to meet the
business targets Ghosn likes to impose own decision on the employees and gain organizational
productivity. This kind of aggressive work attitude enables the employees in achieving estimated
target any way. On the other hand, this particular leadership approach is possessed with major
negative effects as well. The employees lost their courageous attitudes in performing well
towards the services.
Ghosn as a business lacks emotional intelligence skills and quality. In this kind of
situation, it is very much challenging for the existing employees of Nissan in enjoying the work
environment and delivering effective services. Employees associated with Nissan are over
burdened in target and achievement. Bolman and Deal (2017) opined that they do not get the
opportunity to share their own point of views regarding the success of business goals and

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objectives. In this kind of situation and autocratic form of leadership approaches, the employees
get immense de-motivation in showing their superior quality of services, which ultimately
damaged organizational image and reputation.
5. Evaluate the effectiveness of the change leadership at Nissan
After facing different challenges from the end of employees, Ghosn has decided to render
significant changes on the overall leadership styles as well as approaches. At the very initial
journey of launching a business venture Ghosn had decided to implement autocratic form of
leadership style at the workplace so that employees have to follow the direction of leaders and
meet organizational target. DuBois et al. (2015) opined that this particular leadership approach is
possessed with major negative impacts. The employees lost their courageous attitudes in
performing well towards the services. The employees get immense de-motivation in showing
their superior quality of services, which ultimately damaged organizational image and reputation.
In this kind of turmoil, Ghosn has decided to implement participative form of leadership
style at the workplace. Participative leadership style implies the employees in sharing their views
and thoughts with the business leaders. The leaders on the other hand, make collective decision
by involving all the employees. As a result, the coordination and business rapport between
employees and leader become very much effective that ultimately enhances business growths
and opportunity (Aarons et al. 2015). As already said Nissan has shifted to change management
and followed democratic leadership style in order to provide a flexible work environment to the
employees. Consequently, the employees have showed immense positive attitude to the business
leaders after the implementation of new leadership style and policy. This very specific case study

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has provided detailed overview on how appropriate style of leadership can leave major influence
on the overall productivity of business.
6. Demonstrate the alignment of beliefs and values, words, and actions
The case makes it evident that Ghosn’s beliefs in leadership approach are inclined
towards autocracy. While there is no shade of doubt about the fact that he is one of the most
productive and motivated leaders the company has the opportunity to boast of, the damage
caused by his bureaucratic methods have incurred a drastic loss of employees. Ghoshn
demonstrated simmlar beliefs of leadership in different stages of leading the company. His
reliance on slash and burn technique for reaching targets have been repeatedly criticized both by
the employees and his peers. However, it must also be pointed out that he has all the potential to
motivate workers for reaching targets and influencing them to strive towards greater aspirations.
This is most evident when the company was running at a loss and Ghosn lead the team by
creating in them a sense of urgency to instigate the workers for achieving the target through a
renewed strategy. The changes he proposed following the diagnosis of the company’s loses were
too radical and far-sighted (changing the official language and the cross-functional relationships
between the management teams. The change is style displayed by Ghoshn resonates best with the
situational leadership style. He is evidently a man of individual will and has developed his own
style of leading the team. He makes his views clear at the very outset when he takes over the
project: the outcome is more important than the means. The reason for the change is driven by
his motive to bring up the company’s sales by achieving the target and as evident in the
description of the case, he would go to any extent for achieving it. As opposed to the leadership

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beliefs and values of Ghosn, which is largely target-oriented and follows the autocratic style for
achieving the target; theoreticians of leadership management would recommend a different
approach. A case like this called forth a transformative style of leadership where employees
could be motivated to reach the desired target by rewards and punishments; which would also
serve as a yardstick of judging their performance. The advantage of the style is that employees
have the scope for self-assessment hence the leaders do not assert their authority over their
production; instead, the employees are aware of their work and remain self-motivated to
maximize their productivity.
7. Conclusion:
After evaluating the entire study it can be concluded that Ghosn has rendered significant
changes on the overall leadership styles as well as approaches. At the initial journey of launching
a business venture organization needs to implement autocratic form of leadership style at the
workplace so that employees have to follow the direction of leaders and meet organizational
target. Employees associated with the organization are over burdened in target and achievement.
This is most evident when the company was running at a loss and the business leader like lead
the team by creating in them a sense of urgency to instigate the workers for achieving the target
through a renewed strategy.

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Reference List:
Aarons, G. A., Ehrhart, M. G., Farahnak, L. R., & Hurlburt, M. S. (2015). Leadership and
organizational change for implementation (LOCI): a randomized mixed method pilot
study of a leadership and organization development intervention for evidence-based
practice implementation. Implementation Science, 10(1), 11.
Bolden, R. (2016). Leadership, management and organisational development. In Gower
handbook of leadership and management development (pp. 143-158). Routledge.
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.
Dobre, O. I. (2013). Employee motivation and organizational performance. Review of Applied
Socio-Economic Research, 5(1).
DuBois, M., Koch, J., Hanlon, J., Nyatuga, B., & Kerr, N. (2015). Leadership Styles of Effective
Project Managers: Techniques and Traits to Lead High Performance Teams. Journal of
Economic Development, Management, IT, Finance & Marketing, 7(1).
Facer Jr, D. C., Galloway, F., Inoue, N., & Zigarmi, D. (2014). Creation and initial validation of
the motivation beliefs inventory: Measuring leaders’ beliefs about employee motivation
using four motivation theories. Journal of Business Administration Research, 3(1), 1.
Lynch, B. (2015). Partnering for performance in situational leadership: a person-centred
leadership approach. International Practice Development Journal, 5.
McCleskey, J. A. (2014). Situational, transformational, and transactional leadership and
leadership development. Journal of Business Studies Quarterly, 5(4), 117.