CASE - Working Hard at Being Fair

City Mortgage is a medium-size mortgage company that employs about 25 people. Jenny Hernandez, who has been with the company for 10 years, is the production manager who oversees its day-to-day operations.

Reporting to Jenny are loan originators (salespeople), closing officers, mortgage underwriters, and processing and shipping personnel. Jenny is proud of the company and feels as if she has contributed substantially to its steady growth and expansion.

The climate at City Mortgage is very positive. People like to come to work because the office environment is comfortable. They respect each other at the company and show tolerance for those who are different from themselves.

Whereas at many mortgage companies it is common for resentments to build between people who earn different incomes, this is not the case at City Mortgage.

Jenny's leadership has been instrumental in shaping the success of City Mortgage. Her philosophy stresses listening to employees and then determining how each employee can best contribute to the mission of the company. She makes a point of helping each person explore her or his own talents, and challenges each one to try new things.

At the annual holiday party, Jenny devised an interesting event that symbolizes her leadership style. She bought a large piece of colorful glass and had it cut into 25 pieces and handed out one piece to each person. Then she asked each employee to come forward with the piece of glass and briefly state what he or she liked about City Mortgage and how he or she had contributed to the company in the past year. After the statements were made, the pieces of glass were formed into a cut glass window that hangs in the front lobby of the office. The glass is a reminder of how each individual contributes his or her uniqueness to the overall purpose of the company.

Another characteristic of Jenny's style is her fairness. She does not want to give anyone the impression that certain people have the inside track, and she goes to great lengths to prevent this from happening. For exam¬ple, she avoids social lunches because she thinks they foster the percep¬tion of favoritism. Similarly, even though her best friend is one of the loan originators, she is seldom seen talking with her, and if she is, it is always about business matters.

Jenny also applies her fairness principle to how information is shared in the office. She does not want anyone to feel as if he or she is out of the loop, so she tries very hard to keep her employees informed on all the matters that could affect them. Much of this she does through her open-door office policy. Jenny does not have a special group of employees with whom she confides her concerns; rather, she shares openly with each of them.

Jenny is very committed to her work at City Mortgage. She works long hours and carries a beeper on the weekend. At this point in her career, her only concern is that she could be burning out.

Questions -

1. Based on the LMX model, how would you describe Jenny's leadership?

2. How do you think the employees at City Mortgage respond to Jenny?

3. If you were asked to follow in Jenny's footsteps, do you think you could or would want to manage City Mortgage with a similar style?