From Sally point of view, she believes that what she does to the company is right. Her values and perception influence her attitude towards the company and the employee. When she was in Asia, she implemented the exact system and it turned out to be very successful and she did not get any complained from the employees. She tried to implemented the system in Australia, but it turn out that even the productivity increase in such a short time, but the employees are dissatisfy with the work environment.
The basic problem that Sally faced is the culture differences. Sally was used to work in Asia, which has a quiet different culture with Australia. Culture is “the learned and shared ways of thinking and doing things found among members of a society” (Wood, Wallace, Zeffane, Schermerhon, Hunt and Osborn, 1998, p. 73). Another problem that Sally faced is Sally felt that she did a great job by increase productivity up to 20 percent but in return the company not valuing her.
Theoretically, the situation that Sally faced related to discrepancy theory, “a theory that partly explains job satisfaction in terms of the gap between what a person expect and actually experience in the job” (McShane & Travaglione, 2003, p. 129). Sally expected that she would be highly valued since she put a lot of effort to increase the productivity for the company, but in reality her senior management and employees not happy with what she did. Sally also has to deal with stereotyping from her employee.
Stereotyping is “the tendency to make generalizations about people from different cultures” (Wood et. al. , 1998, p. 562). From the case study, Sally’s employees stereotyping her as a female manager, who suppose to be more participative and concern about the employees circumstances than a male manager. To the organization, a situation between Sally and the employee could be a big problem in a long term perspective.
According Wood et. al. (1998, p. 85) there are six things that employer can do to minimize the possibility of performance problem such as,”carefully recruiting and selecting employees who have the appropriate skills and motivation to go abroad, providing adequate training and orientation in preparation for life in the foreign culture, encouraging language training if the posting involves a foreign language, actively supporting employees while on assignment abroad, particularly during the first few months, paying careful attention to the needs of employee’s spouses and families, since many failures are due to their inability to adapt to the new country, and providing a mentor back in home organization to maintain contact with the expatriate while on foreign assignment”.
Sally’s attitude towards her situation is that she seriously began to consider leaving the organization to start her own consulting business in cross-cultural management. To be a good manager, Sally has to have good leadership skills. Sally can improve her leadership skills by having a better understanding about leadership and leadership styles. As been mentioned, leadership refers to “the dynamic process in a group whereby one individual influence others to contribute voluntarily to the achievement of group tasks in a given situation” (Pettinger, 2000, pg.120).
There are three leadership perspective such as, Behavioural perspective, Contingency perspective, and Transformational perspective. In behavioural perspective of leadership, it identifies two clusters of leader behaviour: people oriented and task oriented. According to McShane & Travaglione (2003), People-oriented behaviours include showing mutual trust and respect for subordinates, demonstrating a genuine concern for their needs and having a desire to look out for their welfare.
Task-oriented behaviours including assigning employees to specific tasks, clarifying their work duties and procedures, ensuring that they follow company rules and pushing them to reach their performance capacity. It is recommended that Sally takes into consideration of both people-oriented and task-oriented behaviour in her leadership style. By taking into account both styles, Sally is able to satisfy both the organization and employees.
In Contingency (Situational) Perspective there are four different types of leadership model. The first one is Hersey-Blanchard situational leadership. This theory focus on readiness of the followers (Refer to Appendix 1). Readiness is “the extent to which people have the ability and willingness to accomplish a specific task” (Wood et. al. , 1998, p. 512). This theory argues that it is the job of the leader to give guidance and direction and to provide socio-emotional support (Wood et.al. , 1998, p. 512) according to the readiness of the followers.
It is Sally’s job to understand the working environment of SilkQueen and implement the appropriate leadership response. She should be more relationship-motivated rather than task-motivated. The second is Fiedler situational leadership. (Refer to Appendix 2) This theory believes that “leader effectiveness depends on whether the person’s natural leadership style is appropriately matched to the situation”.
Fiedler’s model assumes that group performance depends on leadership style, described in terms of task motivation and relationship motivation and situational favourableness. He suggests that it may be easier for leaders to change their situation to achieve effectiveness, rather than change their leadership style. If Sally adopted this leadership style solution, it is better for her to move to another department in which she can implemented her current leadership style to improve the productivity of the organization. Third is the path goal theory.
(Refer to Appendix 3) McShane & Travaglione (2003, p. 472) defined path goal theory as “a contingency model of leadership that effective leaders influence employee satisfaction and performance by making their need satisfaction contingent on effective job performance”. Robbins (1997, p. 147) stated that “a leader’s behaviour is motivational to the degree that it  makes subordinate need satisfaction contingent on effective performance and  provides the coaching, guidance, support, and rewards that are necessary for effective performance”.
It is suggested that Sally should adopt a combination of supportive, participative and achievement-oriented behaviour in her leadership style. Sally should support her employees to increase group satisfaction and performance as well as involve employees in the decision making process. At the same time, challenging goals are set and high performance is encouraged. By adopting these leadership styles, Sally should be able to achieve high productivity while taking into account of employees’ values, need and wants. The fourth is Leader Participation or often called Vroom-Yetton Leadership Model.
This model suggests the selection a leadership style for making a decision. There are five decision making styles,  Autocratic 1 – Problem is solved using information already available,  Autocratic 2 – Additional information is obtained from group before leader makes decision,  Consultative 1 – Leader discusses problem with subordinates individually, before making a decision,  Consultative 2 – Problem is discussed with the group before deciding,  Group 2 – Group decides upon problem, with leader simply acting as chair (Robbins, 1997).
As mentioned above, Sally should involve the employees in the decision-making process. She should discuss problems with the employees before making a decision. This is to achieve a better outcomes for the productivity and job satisfaction. Transformational Leadership is “a leadership perspective that explains how leaders change teams or organization by creaing communicating and modeling a vision for the organization or work unit, and inspiring employees to strive for that vision” (McShane & Travaglione, 2003, p. 478).
Transformational leaders display attributes including charisma, intellectual stimulation of followers, and individualized attention and consideration toward followers. This leadership style adopts the “walking the talk” system (McShane & Travaglione, 2003). It is better for Sally to adopt the transformational strategy since it involves the employees more in decision making process. As been mentioned, the employees expect Sally to be more cooperative and concern about the employees’ conditions. Sally will satisfy employees’ expectation that can lead into better performance from the employees.