Identify The Symptoms Indicating That Problems Exist at Lacrosse Industries, Inc

Question 1
Identify the symptoms indicating that problems exist at LaCrosse Industries, Inc.
Answer
The syitiptoins that indicated that problems existed at LaCrosse Industries Inc..
becaitie evident in the change of leadership. U'1ien Gilbert LaCrosse. founder. decided that.
“the organization’s success and siirvival depended on the expansion to oilier parts of the
United States” and 1iavinp• coiisiilted with eiiiployees made the difficult decision to sell a
majority share to Build-All Prodiici. Inc. : “a coiigloiiieraie with international marketing
expertise in building products”.
U'it1i this decision. LaCrosse spent more tiitie faith developers and a VP was brought
in to oversee production, significant change caitie to the organization as a result of this:
1. Noted change in operating procedures such as lio the production orders were sent:
instead of the usual visit orders no caine by supervisory meitio.
2. Prodiict qiialip decliiied. this u as a priorip in the coiiipany’s history. “less attention
was being paid to inventory controls: itli the introduction of strict inventory
p•iiideliiies and outlined procediires on using supplies for each shift .
3. The increase in defective Endows being returned by developers and liolesalers as a
ne purchasing procedure was introduced.
4. Employees started to quit.
5. Lastly, the lack of coinitiuiiicatioii beuveen all levels.
6. It became evident that LaCrosse Inc. that u as founded oii “pi’odiicis had to 1 e of the
highest quality because they gave families a “u’indoiv on life” was facinp• a deiiiise.
Question 2
I se one or more leadership theories to analyze the underlying causes of the current
problems at LaCirosse Industries. U hat other organizational behavior theories might
also help to explain some of the problems?
Answer
Ineffective Leadership
Froiti a path-goal leadership perspective. LaCrosse was clearly more effective than
Vlodoski. The employees seem to have high ability and experience due to their long tenure
(lo turnover) with the organization. The task is stnictured and employees receive training to
perform their tasks well. They also seem to have an internal locus of control to the extent that
they actively help the organization and take initiatives on their open.
Under these conditions. participative and achievement oriented leadership styles are
roost appropriate and directive leadership is least effective. LaCrosse applies participative
leadership because he involves employees in decisions affecting their (e.g. selecting raw
materials and deciding hether to sell the business).
Vlodoski applies a highly directive leadership style by sending task requirements to

supervisors and staff itieinbers and by requiring more precise accounting of employee actions
(especially the use of raw materials). He announced ne procedures for purchasing
production supplies which eliitiinated the participation of production leaders and limited the
aiiionoiiiy of the coiiipany’s piu’c1iasiiig experts.
U'e kno from path-goal theory that directive leadership is ineffective lien
employees have high ability and experience in die job. In fact. this style itiiglit reduce job
satisfaction and motivation under these conditions. This is apparent here as employees are
dissatisfied with X'lodoski’s actions.
Question 3
What should Gilbert LaCrosse do in this situation?
Answer
Build-All is not satisfied with its investment and LaCrosse wants the company to have
its original cultural values. Moreover, the company seems to operate better with LaCrosse's
values and with hint as its corporate leader. Consequently, LaCrosse should buy back the
company, perhaps with employee ownership, if a reasonable price can be arranged with
Build-All.
LaCrosse should spend more time at headquarters to rebuild the organization's

culture. He also needs to hire and train leaders who will reinforce these cultural values.
LaCrosse also needs to prepare for his succession. This is a very difficult process, because
founders do not give up ownership easily, and because LaCrosse has been the source of the
company's value system.
LaCrosse needs to arrange a distribution system, perhaps signing an agreement with a

distribution company, so that products can be sold to a larger market area. The company also
needs to introduce some financial controls, but do so in a way that will not undermine the
cultural values of quality and employee involvement that have made LaCrosse Industries
successful in the past.

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Identify The Symptoms Indicating That Problems Exist at Lacrosse Industries, Inc

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Question 1

Vlodoski applies a highly directive leadership style by sending task requirements to

What should Gilbert LaCrosse do in this situation?

LaCrosse should spend more time at headquarters to rebuild the organization's

LaCrosse needs to arrange a distribution system, perhaps signing an agreement with a

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