Case Summary:
Jack’s team:
• Most creative
• Willing to go the extra mile
• Gets along well with Carly
• Often gets allocated extra resources
• Praised for a provocative ad campaign Terri’s team:
• Counseled out of an ad campaign
• Performs well for the agency
• Unhappy with how Carly treats the team
• Holds animosity toward Carly
• Feels Carly is unfair and favors Jack’s team
Julie’s team:
• Notices Carly favors other teams
• Feels the other teams get the best writers and art directors
• Feels Carly doesn’t notice her team or help it with its work
• Feels undervalued Sarah’s team:
• Sarah has worked for 10 years
• Agrees with some of Terri’s & Julie’s observations, but it doesn’t seem to bother her
• Her team gets the job done
• Being in Carly’s ‘inner circle’ would require extra time and more headaches
• No interest in changing the way department works
Carly Peters directs the creative department at Mills, Smith, & Peters, which has the reputation for being one of the best advertising and public relation agencies in the country. The department has four major account teams, each is led by an associate director, who report directly to Carly. These four teams are headed by Jack, Terri, Julie, and Sarah. Each of the associate directors have different relationship with Carly.
Questions
1. Based on the principles of LMX theory, what observations would you make about Carly’s leadership at Mills, Smith and Peters?
According to LMX theory and its research, subordinates become a part of the in-group or the out-group based on how well they work with the leader and how well the leader works with them. Leaders should create a special relationship with all employees, similar to the in-group relationship. Leaders should also offer each employee the opportunity to take on new roles and responsibilities, and should look for ways to build trust and respect. It is clear from this case that