This Question Contains Two Parts; Be Sure to Answer Both

question 29

Essay

This question contains two parts; be sure to answer both.
First, explain Fiedler's contingency theory by describing the factors that contribute to a low-control situation, and what style of leadership would be prescribed in this case.
Second, imagine that you are the foreman in a bakery that prepares bread products, such as bagels, hot dog and hamburger buns, and loaves of sandwich bread. You manage 25 people who work on an assembly line, and you make all hiring and firing decisions in the bakery. Many of the employees have been working for the company for more than fifteen years, and you have been their manager for the entire time. Describe how your job rates on each of the three dimensions of situational control, and explain what your optimal leadership style would be under these circumstances.

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Definitions:

Profit Maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit.

Profit Level

Refers to the degree of financial gain achieved by a business, indicating its success in generating earnings above its costs.

Perfectly Price-Discriminating

A theoretical market condition where a seller charges each buyer their maximum willingness to pay, capturing all possible consumer surplus.

Socially Optimal Level

The point of balance where the social benefits of an economic activity equal its social costs, maximizing overall welfare.