Michael supervised eleven accounting clerks in the budget and planning department of a large computer manufacturer. None of the clerks had accounting degrees, but all were skilled in handling records and figures. They primarily prepared budgetary plans and analyses for operating departments. Michael assigned projects to the clerks on the basis of their interests and skills. Some projects were more desirable than others because of prestige, challenge, or the contacts required; thus, there were occasional conflicts over which clerk was to receive a desirable project. One clerk who seemed especially sensitive and regularly complained about this issue was Sonia. On one occasion Michael received a desirable project and assigned it to a clerk by the name of Jenny. Sonia was particularly distressed because she felt she should have had the assignment. She was so distressed that she announced in a voice loud enough to be heard by Michael and all the others, “Nobody around here ever gives me a good assignment.” Michael was angered but he sat at his desk for five minutes wondering what to do.

1. What leadership issues are raised by this incident?

2. Consider the path-goal model of leadership and the contingency approaches to leadership and offer your advice on what actions Michael should take?