Ron Osborn Case Summary

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Authority is an outright need for a CEO or for an individual to have. Leadership consolidates the use of power and influence in order to influence individuals in achieving particular goals. There are different styles of leadership styles and behaviours, for the power failure case study I will be analyzing if Ron Osborne was an effective leader.
Osborn has a laissez-faire leadership style. As a leader/CEO he is responsible for controlling all operations inside the business. Osborn noticed that the power plant needed repairs, but he delayed to take action concerning repairs. Osborne ignored his responsibilities as a CEO which also falls into the focus of citizenship behavior. As a CEO he is in charge of going past his ordinary occupation desires, it’s his obligation to support and help his collaborators and associates. Taking a closer look at Osborn 's leadership style and citizenship behaviour, it is reasonable of why he couldn 't impart any imperative data to his associated laborers, he essentially had no engineering foundation on which he couldn’t evaluate his related workers. What Osborne could 've done to control the advancement of revamping of the plant is to implement a performance management strategy; a management by objectives would have helped. If the CEO helped set realistic goals, the plant repair would have went smoother. For instance a goal of competing 10% of the project within the next 2 months would’ve been a start. A CEO is responsible of controlling all operations within the business, below I want to break down CEO leadership characteristics and analyze what he did wrong. 1.
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An effective leader creates good communication methods across divisions. Example from case study:
a. Starting with the AECL engineers being late with the designs by a year and a half. Once CANEC and project management received the “field ready engineering designs,” the case mentions that the designs were equivalent to sketches. CANEC and AECL had weak communication skills particularly with the engineering designs. The designs were not detailed and confusing. The CEO should’ve been controlling the situation, making sure that everything is done correctly and no miscommunication was being created between different departments.
i. Due to Osborne’s laissez-faire leadership style, communication wasn’t great between several contractors that were responsible for repairing the plant. Due to the CEO having minimal involvement in the plant repairs, the employees did not set deadlines for themselves and had trouble solving their own problems. Taking a look at the theory of leadership, it’s seen that groups of employees working together for the first time were eager to begin work, but they lacked the expertise and confidence which was needed in order to start repairing the plant. 2. An effective leader understands the importance of delegating the right people for a position and ensures a consistent cash flow and profitability by deliberately monitoring costs, and income streams. a. “But from Osborne 's perspective, the problems were hard to see. For one thing, he was preoccupied with the sale of the Bruce nuclear power plant northwest of Toronto and its eight reactors.” (Taken from case). i. As a CEO, Osborne couldn’t even delegate himself for a proper position at the company. As a CEO he is responsible for monitoring expenses and revenues that are flowing in and out of the business. There should’ve been a separate sales group dealing with the Bruce nuclear power plant. As CEO, Osborne is responsible for controlling all business operations, not just the sales department. b. Hiring of Andognini was a horrible mistake. When hiring, the committee and the CEO should have looked at his previous plant renovations in Sacramento, California. The plant renovation took him double the initial estimate and triple the time. i. The problem with Osborne is that he has
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Due to Osborn’s lack of knowledge in the business of generating electricity, his importance in the business is reduced, also known as neutralizers; which is a characteristic of the CEO. Compared with substitute characteristics which reduce the importance of the leader while benefiting the workforce, neutralizers reduce the importance of the leader but it doesn’t mean that the workforce will be any more productive. Osborn’s laissez fair leadership style relates with the neutralizer characteristics. Due to the CEO empowerment of his own workforce, power and influence go unutilized which demonstrates why he isn’t an influential

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