Question

Although an insurance adjuster is highly skilled and experienced she sometimes lacks confidence in her abilities, particularly on new assignments. She seems to believe that any new accomplishments are due more to luck than her own expertise. Moreover, her work involves interacting with clients who are sometimes aggressive or hostile. This is a stressful situation to most insurance adjusters, including this employee.

Use path-goal theory to identify and describe the best leadership style or styles that this employee's immediate supervisor should use to improve her effectiveness as an insurance adjuster. Explain why this/these style(s) is/are appropriate in this situation.

Answer 1

Using the path-goal theory we can say that the goal here is to increase the confidence of the insurance adjuster who clearly lacks confidence and is not very sure of her expertise and abilities. Thus the goal is to empower this employee and make her realize her ability to perform and achieve her professional’s objectives as a result of her expertise and ability to work hard.

I will use the path-goal theory here to determine the employee and environmental characteristics then select a leadership style and lastly focus on motivational factors that will help the employee succeed. The first step will involve understanding the employee in question here i.e. the female insurance adjuster and then determine what will best motivate her and increase her self-belief and confidence. Next I will look into task and environmental characteristics to ensure all obstacles that are hindering the development of the employee’s self-belief and self-confidence is removed. I will look at design of the task, the formal authority that is in place and the work group in the organization.

After the above steps are taken I will then determine the best leadership style for this situation by taking into account the factor of consideration which will focus on relationship behaviors such as respect and trust.

The best leadership style that will help this employee’s supervisor to improve her effectiveness as an insurance adjuster will be “supportive”. The supervisor will have to use supportive leadership style as there are clearly psychological challenges for the insurance adjuster. The insurance adjuster is highly skilled and has the experience to excel in her work; all she needs is to clear her mental clouds and her self-doubts. Supportive style of leadership will enable the supervisor to ensure that all psychological challenges for this employee are eased in an optimal manner. By being supportive and by making the work pleasant for this employee the supervisor will ensure that the mental strength of the employee is boosted as she slowly regains her confidence and starts believing in her abilities. This will require the supervisor to be friendly as well as approachable.