Goodwin house inc Case Solution

The problems associated with a participative leadership style are that in an attempt to bring everyone in the decision-making process, the balance of power in the organization is disturbed. A drawback in President’s personality is that he doesn’t have the capability to say “no” after he has taken input from everyone. Moreover, since the President involved everyone, a lot of precious time is wasted in unnecessary communications because the leadership has failed to place the right people in the right positions. The President tried to create motivated employees through participative decision making but it worked in the wrong direction; it created misleading priorities and confusion regarding goals and directions.

A more authoritative and dominating leadership style must be introduced in GHI. This does not mean that the President should start imposing his own decisions. Rather it means that after taking input from the employees, he should be decisive enough to select and reject appropriate choices keeping in view organisational goals and objectives.