In addressing this issue, I believe that the leadership style that best fits this situation is GII. With this method, you as a manager share the problem with you subordinates. You ask their input on the situation and attempt to reach an agreement about a way to solve the problem.
As the manager in this situation, I feel it is necessary to increase group participation. Without group participation, you have no use for GII because it is based on gathering a bunch of information and coming up with the best possible, most accepted decision.
There are many factors to take into consideration when choosing this particular managing style: the first a foremost being that the group actually participates in solving the problem. Even though the division manager and I agree that there is a problem with production, this concern needs to be felt throughout the group as a whole. A good way to get your subordinates involved in offering up solutions to the production problem would be to offer then incentives. Set production goals for your subordinates and see if they can reach them. If and when these goals are met, you can reward with incentives. The incentives can range anywhere from monetary incentiv
Another good thing about implementing GII is that your subordinates get a chance to be involved in the decision making process. When employees are involved in making a decision it is often easier to put into action the decision that was made. There is sometimes a higher acceptance of the decision when it comes form the ground up and there is a higher probability that the decision will be executed efficiently. As an employee, being flat out told what you have to do all the time is often the ingredient for an unhealthy work environment when you are trying to implement change.
In addition, when you have more then one person getting together trying to solve a problem you have an increased chance at a better solution then if you were trying to solve it yourself. The employees bring a lot to the meeting room with them. For instance, they may have "inside information" about why production is faltering. Not so much secret information kept from you, as a manager, but the knowledge of actually doing the hands on work, day in and day out, will increase the chance at an excellent solution.
If two heads are better then one, then many heads are better then two. Getting everyone to brainstorm is probably the best thing for you
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