Business report about Mountain West Health Plans Inc Essay

Business report about Mountain West Health Plans Inc - Essay Example This had become a problem to the management because it was labor intensive and consumed two thirds of the annual budget. Therefore, the company’s management had been yearning for Evelyn Gustafson’s replacement so that they could curb the increasing labor costs. Evelyn Gustafson had a long history with the company because she had worked there for a long time. She started her career as a customer service staff until she was promoted to being the director of customer service. Her leadership style was centered on putting oneself in the position of the subordinates. She used this style due to her experience in working in that department, and she understood what the employees went through. In her leadership style, she focused on involving the employees in the tasks by making them understand the company products and policies. She also focused on the quality of service that the subordinates offered to customers. In addition, Evelyn emphasized on employee training on the product s, problem solving and customer service techniques, which helped to ensure customer satisfaction. Her relationship oriented leadership style also involved ensuring the comfort of employees when performing their tasks by allowing them flexible schedules and breaks. However, her leadership style was not was not appealing to the top management, and they endeavored to change it after her retirement by appointing Erick Rasmussen to the post of director of customer service. Erik Rasmussen is a fresh college graduate in business administration, and therefore, he has no experience in the post. He sought to embrace a leadership style that ensured that the top management objectives of lowering costs of operation were achieved. He used a no-nonsense bureaucratic approach in directing and controlling the employees. He introduced the use of performance measurement standards to measure efficiency and performance of employees. This method measures employee performance based on the number of calls or customers that they handle per hour. This approach emphasizes on working speeds of subordinates, and requires them to handle as many customers as possible during their working time. This method would help to reduce the number of employees being employed in the department. His method also introduced a regulation requiring employees to work in monitored schedules. He ensured that employees spent minimal time on each customer they attend to with an objective of reducing call hold time. This method was completely different from the previously used method, which the employees were used to. Through Rasmussen’s method, the company achieved its objective of efficiency and non-flexible scheduling and cutting back on costs associated with employees. A leader should focus on being in charge of command, organizing and directing, setting processes in motion, and being the reason for others to act or change (Scouler and Chapman, 2012). Leadership styles are classifications of the leader ’s behavior in performance of their duties, during our study of the Mountain West Health Plans Inc’s customer service department; we identified several leadership issues, which are highlighted below. Firstly, there is no connection between the leader and the employees (Hendricks, n.d). We found that the leader does not understand the needs