The main task for Linden at the moment is to optimize the production of GEC and change the company’s internal policy. The fact is that GEC has encountered financial difficulties due to the fall in steel prices, which has led to a slowdown in production growth (Northouse, 2021). Linden as a manager faces two tasks, the first of which is to optimize the relationship with the employees. The fact is that Johannes Linden has chosen the strategy of an absolute leader, someone whose opinion is equal to the law (Hill & Rennella, 2012). This can be explained by the fact that managers are afraid to present their own ideas and solutions to problems, because they may not coincide with the manager’s thoughts. This system is unreliable because in this case, employees remain loyal to the company’s policy only because of the salary bonus. Nevertheless, if a crisis begins in the steel industry, it is logical to assume that further staff cuts or budget cuts are possible. Since this factor is the only deterrent for the employees, if their salaries are reduced, the staff will start to shrink, which will prevent the company from being competitive. Accordingly, Linden is characterized by the “power-observance” type of leadership, which translates into an uncompromising leader and harshness toward employees (Northouse, 2021). Another problem is solving the coming crisis. These problems are interconnected, so Linden is faced with a choice of either using a team leadership model, controlling Asia, Europe and America, or controlling the markets himself (Northouse, 2021). The first option is the most effective, however, as noted above, it requires the manager to change his approach to interacting with his subordinates. In the opposite case, independent control is practically ineffective, given the scale and nuances of production.
Hill, L. A., and Rennella, M. (2012). Johannes Lindstrom: Managing the Global Executive Committee. Harvard Business Publishing.
Northouse, P.G. (2021). Leadership theory and practice, 9th ed. eBook. Thousand Oaks, CA: Sage.