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Case Study: Chengdu Bus Group

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The Chengdu Bus Group (CBG) is a Chinese, state-owned enterprise with more than 4,000 buses and 14,000 employees. A few years ago, CBG encountered serious problems. The primary issue was the company's management systems, but it also faced a considerable financial crisis. Complaints against CBG from its many customers were becoming increasingly common, and the operations of the company were in disarray. Read the rest of the case (attached) and respond to the following two discussion questions.

1. What OB theories were applied by Dr. Chen in the CBG case study? Discuss at least two theories in your response. In your scholarly opinion, did Dr. Chen exemplify transformational leadership or transactional leadership strategies? Support your response with evidence.

2. Discuss 1-2 theories that were not applied by Dr. Chen in this case, that possibly could have contributed to positive reform at CBG. How and why would you have applied the theory if you were in Dr. Chen's position?

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The company, Chengdu Bus Group, has been facing serious issues in its operations. There is a need to rectify the problems, for which Dr. Chen has been appointed as a new CEO. Two theories of organizational behavior have been used for reforming the organization. The theory of Operant Conditioning relates to attracting the employees towards certain rewards if they perform in a positive manner. This reward-giving activity reinforces positive attitude among employees and reduces faults and negative behavior (Slocum, ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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