In: Operations Management
Chapter 7 clarifies the 4 ways in which leaders can enhance the abilities and contributions of followers - offering clarity of direction, providing opportunities for growth, giving honest and constructive feedback, and protecting followers from organizational roadblocks. Research a company who's leader failed to do ONE of the four. How did the leader fail his/her followers? What happened to the organization as a result? Did the leader who failed everyone ever gain the respect back from their followers? If so, how?
Let us consider a company called Kingfisher Airlines, which is currently grounded. Kingfisher Airlines was established in the year 2003, owned by the United Breweries Group. The founder of this airline is the well-known business icon, Vijay Mallaya. Airlines were in the peak of its operation till the year 2010. The business leader failed in the 2 ways namely,
These two items grounded the great Airlines which was operating successfully until the year 2010. There was no clarity of thought and the business leader failed to protect its employees from the roadblocks that the organization faced.
Because of the above mentioned two factors, there was financial unrest and the net worth of the company eroded. Future planning was not done properly with the current income. Because of the reduction of the net worth, the company was not able to pay the tax dues to the regulatory authorities. The Airlines received notices from the Income Tax departments and the Airports Authority of India for the payment of the dues. Also, the arrears due on the bank loans mounted and remained unpaid. The leasing and fuel dues increased.
Finally, the license of the aircraft was canceled on 20 Oct 2012. The employees were left in the lurch and the company ceased to exist. The leader who failed everybody did not gain back the respect of the followers. The leader also fled the country without paying the bank loans and the dues to the regulatory authorities.