Read the case study on Page 284

Use Leadership Theory to compare and contrast the leadership styles of Ms. Huggins and Mr. Brice
Submit your word document on Blackboard as an attachment in the Course Content, Week 4, Case study assignment


Based in Walnut Creek, Califbmia, Healthdyne is ahealth maintenance organization (HMO)
that provides healthcare to the northern California Bay Area. It serves approximately 1.2 mil-
lion enrollees composed mainly of upper-class, white-collar professionals. Healthdyne oculpies
a relatively small comer of the market, but is quickly gaining prominence in the area and has
developed asolid financial footing with bright prospects. It is located in a growing community,
with a 15 to 20 percent annual growth rate projected for the next five years.

For the past 20 years, Healthdyne’s fimner president, Amanda Huggins, has suc-
cessfully carried out the organizational mission-to provide more affordable and better
quality healthcare for its members by setting the statewide standard for excellence and
responsiveness. As one of the key players in the organization since its inception, Ms.
[-1qu ns is a recognized expert in the managed care industry. Corporate legend has it that
her motto was “It doesn’t happen without my signature!” Upon Ms. Huggins’s retirement,
Arnold Brice was recruited to take her place.


When Mr. Brice, who is the former CEO of Atlmtic Healthcare, was brought in as president,
he inherited an exealtive staff composed of vice the presidents of the marketing, finance, and
professional services departments as well as a medical director, all of whom were capable of
fillfilling their managerial responsibilities. However, within a few weeks of joining Healthdyne,

Mr. Brice perceived a serious flaw with his staff-none of the vice presidents would make a
decision, not even on routine matters such as personnel questions, choice of marketing media,

or changing suppliers. The vice presidents frequently presented him with issues in their areas of
responsibility and requested that he make the decision. This troubled Mr. Brice. Before long,

the situation seriously impeded his efforts to engage in strategic planning for the HMO.

At a regular staff meeting, when every member of his staff had an issue that required
his attention, Mr. Brice finally blew up. The catalyst to this incident was this question from
the Finance vice president: “What font do you want this in?”

Waving his arms in exasperation, Mr. Brice shouted, which is very uncharacteristic
of him, “I cannot do it all! You are going to have to make these decisions yourselves.”

The meeting broke up with the staff looking very puzzled and Mr. Brice realizing
that he had to make serious changes.

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