One of the main major reasons for the diversity and experience levels of expected candidates is to ensure that the diversity produces different talents and brings fresh ideology and views into the organizations that will ensure the long-lasting existence of the organization. It also enables the human resource to respond to the different background based on age, gender and cultural difference to solve problems and bring about achievement in the organization's success (Allen, Finkelstein, & Poteet, 2011)
One of the major ways of determining if the candidates will fit into the team is to consider the organization's culture. The organization's culture should be aligned with the culture of the individual. Culture usually helps the organization achieve its long and short-term objectives; therefore they are tied to the vision of the organization. Culture also reveals the personality of the candidates who will form the team. The second thing to consider is if their previous role has prepared them for the role they will play in the team. The scope and the activities of their previous role will determine how they will fare on in the team. Their previous role will help in examining the behavior of the candidate and determine their suitability in the team .Therefore; the previous role helps in providing the human resource professional with the track record of the candidates that will help in making the decision on their suitability in the team. Also, a perfect fit can be determined by how the candidate values people and how they have been able develop themselves and the people around them. This will reveal the candidate's willingness to work with other people in the team and produce meaningful results (Breese, 2017).
A cross-functional team is a team whose members are from different specializations and they work together to achieve a common objective. A cross functional training program is often used to assist the cross-functional team work effectively in achieving the organization's goals. The design of a cross-functional training program should align the team to the strategic plant goals .A good design for cross-functional training program must start with a cross evaluation process to help in alignment. The evaluation process should focus on brainstorming the challenges that might be met by operating the new plant .The evaluation should involve specific questions that would require specific answers that will raise issues which will form the basis of the training. The team should then be allowed to study the findings and issues that will arise from the evaluation process. The findings will help in aligning the plant goals to each work group. The cross-functional training program design will ensure that the goals and strategies of the companies are communicated to each workgroup and ensure that they are understood. Team work is to be encouraged during the training program and reveal the role each member is to play and to establish their value based on the how well they play their role. The training program should enlighten on the validation of the strategies that are in place and the approaches that should be taken in the face of challenges and setbacks. This also enables the members to grow. (Bullen, LeFave, Selig,& Chittenden, 2010)
The training program is aimed at ensuring that the groups are aligned and work together to achieve the organizations set objectives. The training design also helps to bring about the strengths of the team out into the open which increases their cohesiveness and enable the team to make action plans that are easily implemented. The training program also aims at making the team see the needs of the organization and how to create long-lasting solutions to the needs. The training program is designed to exhibit the expected performance of the team .lastly; the training program should be cost- effective and quantifiable. The training program can be benchmarked by the human resource professionals and is able to meet future needs comfortably without future adjustments.
One of the training topics that can bring about diversity is inclusive leadership. This refers to leadership that has a wide range of culturally and demographically diverse people. Inclusive leadership is another topic that will increase productivity as different people have different ways of solving issues. Dialogue is a topic that can easily foster intergroup relationships. Dialogue brings about improved cooperation and relationships within various groups therefore bringing about intergroup relationships. Constructive solutions which are slow and lasting hence affecting productivity, in turn, can also be as a result of dialogue. A training topic that can be used to improve productivity within the plant is through time management. Tasks should not take too long to achieve or complete . Every goal should have a time limit so as to enable the teams to remain objective and their activities remain relevant. This will increase the productivity. Another way of increasing productivity is by recognizing members who are outstanding in their performance in helping the team run the plant. This will boost their morale and encourage competition among members. In achieving to set aside a group of team with a known agenda, the new plant will be able to be run effectively by the personnel appointed (Allen, Finkelstein, & Poteet, 2011).
REFERENCES
Allen, T. D., Finkelstein, L. M., & Poteet, M. L. (2011). Designing Workplace Mentoring Programs: An Evidence-Based Approach. Hoboken: John Wiley & Sons.
Breese, K. M. (2017) Human resources war stories: In the trenches.
Bullen, C. V., LeFave, R., Selig, G. J., & Chittenden, J. (2010). Implementing strategic sourcing: A manager's guide to world class best practices. Zaltbommel: Van Haren Publishing.
Some people are born leaders while are others are made to be leaders. Leadership capability can be said to fall in a curve where people at the top of the top of the curve of leadership emerge early as very good leaders who seems to get better as they move along. Others fall at the bottom of this curve so that they try so hard to be leaders and at times fail. The majority falls at the centre of the curve and this point has a great potential. This means that leaders are mostly made since it is not expected that a person would come with all necessary tools for leadership at birth considering how social groups and social processes are known to be complex (Mumford, 2010).
The few people who are born leaders can be explained through the Trait Theories. The theories hold that a person inherits specific qualities that differentiate them from rest and make them leaders. In this case, a suggestion that leaders do not come into the world possessing exceptional endowment is to say that people are born bearing equal talents and abilities (Mumford, 2010). There are some specific inherent traits which predisposes a person to be a leader. This can be compared to the same way that some people are born extraordinary athletic and musical talents, so that they succeed naturally in such areas. Other people may struggle a lot trying to be at par with their performances. Born leaders have a remarkable history where they showed leadership capabilities at the start of their journey (Mumford, 2010).
The leaders who are made can be explore through behavioral theories which holds that a person will become a leader through a development process where they are taught, learn and then observe. This means that their leadership skills were imparted after being trained, practicing, perceiving and then gained experience overtime. Hence, leadership becomes a lifetime activity so that good leaders are provided favorable environment and opportunities that allow them to gain new skills (Lussier & Achua, 2015). This means that anybody can be trained to become a leader even if they do not possess inherent leadership qualities.
Reference
Mumford, M. D. (2010). Leadership 101. New York: Springer Pub.
Lussier, R. N., & Achua, C. F. (2015). Leadership. Boston, MA: Cengage Learning.
Corporate Governance and Performance of Saudi Arabia Listed Companies
CHAPTER ONE: BACKGROUND
Introduction
This study is aimed at investigating the influence of the Corporate Governance on the Performance of the registered Saudi's listed Firms. Today corporate governance has grown to be an essential study subject, which deals particularly with distinct governance plans that are utilized in controlling corporates with the aim of increasing shareholders wealth (Dalwai, Basiruddin & Abdul Rasid, 2015). Corporate governance is in this context useful for creating accountability among firms in Saudi Arabia. Research reveals that poor corporate governance standards result in poor performance and less value for the stakeholders. Effective corporate governance should fully guarantee value to all the involved shareholders by promoting the suitable utilization of organizational resources that enabling capital access and enhancing the confidence of the investors (Dalwai, Basiruddin & Abdul Rasid, 2015). Much research regarding corporate governance have been performed with respect to the developing countries such as America but little is understood in regard to the Middle Eastern region where firm and diverse cultural and economic deliberations exist. Fueled by the increasing accounting and transparency issues, corporate governance holds the utmost importance in the economic world. Saudi Arabia implemented policies in 2006 aimed at improving corporate governance in general (Abdallah and Ismail, 2017). There is an established connection amid corporate government and performance of the registered corporations in Saudi Arabia.
1.2. Theoretical Framework
This research applies agency theory as the primary theory along with stakeholder and stewardship theory to explore the association between corporate governance the performance of registered companies in Saudi Arabia. These theories are mainly centered on shareholder’s interests by minimizing agency issues which in turn result in value intensification. In this context, agency, steward and shareholder theories offers a direct connection between corporate governance and revenue generation within the registered companies. Thus, with the view of investigating this dissertation’s objective in regard to corporate government effect on performance, the narrowed description is essential since it offers a more direct connection amid performance and corporate governance. Both descriptions of corporate governance and that of the three theories provides theoretical justification for the connection amid Corporate Governance and performance. This permits the testing of the hypothesis in regard to distinct governing strategies in regard to improved performance.
1.3. Research Questions
To address the theme, the researchers will focus on the following research questions:
How does board size affect the performance of listed corporations in Saudi Arabia?
What impact does board independence have on the performance of listed firms in Saudi Arabia?
What is the relationship between the size of the audit committee and the performance of listed firms in Saudi Arabia?
1.3. Study Significance
Saudi Arabian setting is suitable for this study grounded on several reasons. To begin with, the study might help in improving the existing understanding in regard to corporate governance in the middle eastern region particularly Saudi Arabia listed corporations. Secondly, Saudi Arabia has experienced significant growth in the recent, thus the results of the study might benefit other nations in similar situations relating to cultural, economic, and political status. Lastly, with the implementation of corporate policies, the findings can help in strengthening the process in Saudi Arabia. Thus, these transformations are likely to enhance the financial environment in Saudi Arabia which will in turn increase performance.
1.4. Research Approach
The approach adopted by this specific research is not a new one. The objectives of the theoretical study are to clarify the utilized theoretical strategy as recommended by agency theory. On the other hand, the empirical literature has been analyzed to highlight the knowledge state in regard to everything that has been created empirically.
CHAPTER TWO: THEORETICAL FRAMEWORK
2.1 Introduction
This chapter offers numerous descriptions of corporate governance as instituted by diverse research academics then it evaluates the theoretical framework of the research. Agency, steward, and stakeholder are the primary theories that are used in this research, as the theoretical guideline to establish the impact of corporate governance on the performance of the Saudi Arabian listed companies. Lastly, literature relating to distinct corporate governance.
2.2 Corporate Governance Description
Corporate governance is a phrase that has gained much importance in the recent based on differing perspectives. More so, it is based on the rising alarm of corporate fraud and deceitful financial scandals that the concept has acquired popularity both in the developed as well as developing countries. There is a significant discussion in regard to the actual description of corporate governance among academics and researchers. In reference to its definition, it is classified either on the narrow or the extensive scope. The narrow scope descriptions are those that seek to satisfy the needs the involved shareholders while the extensive one seeks to focus on the interest of the shareholders in general.
Corporate governance from the view of a shareholder can be defined as the inspiration basic to the maximization of value from the corporate perspective in regard to control and management of activities. Governance and management are different aspects that incorporate the development of corporate objectives, regulation, and responsibility. In this context, it is apparent that corporate governance works beyond the narrowed perspective of administration and is made of systematic regulation, policies and company’s governance. According to… corporate governance is about the strategies via which financial providers guarantee themselves of higher gains from their venture. Based on the complexity of creating such guarantees the shareholders depends on the managers to control operations and ensure high returns on their behalf. Corporate governance problems emerge due to the presence of urgent matters and the priority of guarding shareholder’s investments.
2.3 Theoretical framework
Agency, Steward, and Stakeholder theories are the primary paradigms applied in the research as the theoretical guideline to investigate corporate governance effects on listed company’s performance. This section analyses the three theories and justifies corporate governance tools in regard to each theory.
2.3.1 Agency Theory
Agency theory is authoritative to the advancement of corporate governance as well as enhancing reliability transparency within organizations. This theory attempts to highlight the association amid shareholders and managers by highlight the roles of each (Arouri, Muttakin, Hossain, & Al Farooque, 2014). The theory’s concept develops the assumption that guarding the general interests of the shareholders is reliant upon the capacity to assume oversight responsibilities and tasks. In order to enhance the performance of corporate governance within an organization the size of the evaluation committee, size and amount of control owned by the members are important considerations. This notion has been utilized in most settings to establish and evaluate success within public listed corporations globally. In this context, the structural organization of the companies is usually considered (Giannarakis, Konteos & Sariannidis, 2014). Research reveals that the performance of any company relies on the size and control of the appraisal groups.
2.3. Stakeholder Theory of Corporate Governance
Stakeholder theory is employed over encouraging corporate responsibility to the extensive shareholder's range. As a management theory, this model mainly deals with standards and morals needed in the effective management of the organization (Zeitun & Haq, 2015). In that, the theory holds the needs of the shareholders at its center and promotes the notion that for their values to be intensified proper organizational ethics should be applied at all times. According to this model corporate governance mainly entails the relationships amid the involved groups that leads to efficiency (Zeitun & Haq, 2015). The shareholders must, therefore, build ethical relationships with managers in order to support the need for higher gains. Stakeholder approach, therefore, asserts that the structure of the organization is of the essence in determining corporate governance performance. In that, the model is focused on maximizing gains for all the existing groups ranging from shareholders to committee members. The structure, therefore, determines the objective and direction of the company in general (Al-Moataz, & Hussainey, 2013).
2.3.3 Stewardship Theory
Stewardship theory is essential in inspiring better performance and production of a company because it seeks to guard and intensify shareholder’s value (Al-Malkawi, Pillai, & Bhatti, 2014). The main players based on this theory are administrators and executives who are mainly responsible for the guarding of the interests of the consumers and increasing revenue. Contrary to the agency model, this theory is centered on increasing the general success of the company via inspiration and satisfaction (Zeitun & Haq, 2015). In addition, the theory determines the general importance of corporate governance organization which is depended upon in instilling motivation to the stewards based on the present rates of trust which in turn leads to organizational transparency. Based on Abdallah and Ismail (2017) stewardship model offers a guideline that highlights the roles of the administrators and executives, guards the primary concerns of the shareholders and coordinates functionality.
2.4 Corporate Issues in Middle Eastern Countries
Hasan, Kobeissi and Song (2014) argues that corporate governance in the developing markets has in the recent attracted much concentration grounded on the existing flaws of corporate governance in the Middle Eastern countries which are responsible for the occurrence of economic breakdowns. The Middle Eastern region is characterized by a range of external forces that affects the performance of corporate governance such as cultural and economic sensitivity. This features particularly promotes governance malpractices. In the recent, the increase of fraudulent issues within large companies has triggered the attention of public administrators and investors. The region has obtained substantial development in the past owing to globalization but much of its capability is hindered by external sensitivity (Habbash and Alagla, 2016). The Middle Eastern countries are characterized by well-situated financial structures but under-developed corporate management processes which create inefficiency and breakdowns (Habbash and Alagla, 2016). These forces create more threats and uncertainty in regard to how the markets are to be handled.
2.5 Summary
Corporate governance can best be described as the mechanism through which firms are guided and regulated. It mainly addresses the manner in which funds providers can increase the investment gains. The research was mainly seeking to establish the major effects of corporate governance of listed company’s performance. It was established that positive performance is one which accounts for the general needs of the shareholders and seeks to grow them further. The structure of the firm including control held by the committees and its size determines the effectiveness of the process.
Chapter THREE: REVIEW OF LITERATURE
3.1 Introduction
The deviation of objectives which leads to the company’s executives pursuing goals that seek to create individual gain over that of intensifying the value of the shareholders leads to agency issues. The main rationale that motivates the executives to uphold the needs of the company is related to job security and the general performance of the company which generates further costs. This chapter addresses some of the proposed strategies to lowering organization issues.
3.2 Directors Board
3.2.1 Board Size
With the acceptance of the director’s board, it is generally proposed that having a big board is better because it encourages high inclusion of diverse members who combine their different specialties leading to innovativeness and efficiency (Andres et al., 2005). However, a big board normally increase management problems in regard to communication, and organization. In addition, it has globally been asserted that a big board lowers the capability of board director’s to adequately review top administrators and debate in regard to performance (Andres et al., 2005). The agency theory rules that with a big board corporate management is never accounted and the running cost is high.
3.2.2 Board Independence
Board independence is the amount of control that is owned by every board member in a specified group. Independence is significant in accounting for the actions and conduct of every member (Prabowo and Simpson, 2011). In that, if there is no much independence then it is particularly difficult to establish one that is responsible for certain actions which might have impacted performance undesirably. Performance is determined by control which lowers conflict and accountability issues (Yoshikawa, Zhu, &Wang, 2014).
3.2.3 Audit Committee Size
The audit agency is obligated to act independently in guarding the general interests of the shareholders by conducting internal controls (Kim, Sung, &Wei, 2017). In this case, the size plays a critical part in designing transparency and corporate governance. Having a large audit implies that the efficiency of the board is lowered because communication becomes inconsistent thus affecting accountability (Nobanee, & Ellili, 2016). The smaller the size the more suitable it in promoting efficiency and responsibility (Nobanee, & Ellili, 2016).
3.4 Summary
The chapter offers description of the primary interior corporate governance strategies utilized by diverse studies and an evaluation of literature in connection with the influence of corporate governance on performance. Based on the analysis it is clear that having a small-sized board and committee is essential because it promotes efficiency and accountability. A large size creates complexity of managing and coordination since maintaining consistent communication among a high populace is high. Corporate governance needs precise and small structures that promote honesty and responsibility while guarding the welfares of the shareholders.
CHAPTER FOUR: CORPORATE GOVERNANCE IN SAUDI ARABIAN LISTED COMPANIES
4.1 Introduction and Background
In order to research in regard to corporate governance in Saudi Arabian publicly listed companies, there is a need to highlight its background in regard to some essential aspects regarding the economy. Saudi Arabian economy is an oil-reliant one and the government holds the highest control authority over economic operations (Kamal Hassan, and Saadi Halbouni, 2013). In the Middle East, Saudi Arabia is ranked first in regard to owning the biggest economy (Kamal Hassan, and Saadi Halbouni, 2013). However, despite the positive performance that the economy has experienced in the recent corporate fraudulent are on the rise and are significantly affecting the financial performance of the publicly listed companies.
4.2 Corporate Governance in Saudi Arabia
Saudi Arabia has in the last few decades experienced unimaginable growth over most Arabian countries which has created a more favorable surrounding for economic investment. The country depends on monarchial governance that is restricted to the male gender descendants (Kim, Sung and Wei, 2017). The country is one of the developing states that is characterized by the highest rate of growth. The economic growth in the country has been dominant since the mid-20th century. According to Kamal Hassan, and Saadi Halbouni (2013) corporate governance motivates high investment and the growth of the stock industry which is connected with stable economic increase. The status of corporate governance is crucial in enticing more financial providers since they display the most appropriate signal both to the local as well as the foreign market with respect to the potential threats that might be experienced (Kim, Sung and Wei, 2017).
Corporate governance is additionally essential for the international investors who might be traveling into fresh environments and are in the need for clarification in regard to the available laws that govern the systems (Mallin, Farag and Ow-Yong, 2014). This operation normally strengthens individual confidence by asserting that the investment concerns and rights are properly guarded. Appropriate corporate governance follows are regarded as important in lowering the involved threats including ownership privileges. In addition, they result in high capital attraction as well as complete improvement of the corporation’s performance (Mollah et al., 2016).
Based on Naushad and Malik (2015) despite the fact that Saudi Arabia is a big country that holds similar sizes with developed nations such as Germany and UK it lacks does not possess natural resource like lakes. Actually close to 80 percent of its land is desert based. From being among the most suffering countries globally in terms of economic performance the country is currently enjoying increased growth particularly based on the development of favorable economic policies that are objected at creating economic stability and efficiency (Nobanee, H. and Ellili, 2016). In spite of the country’s stock market is classified as a developing market based on its young operative period and size, it is the leader among all the developing nations. From a survey conducted in 2005, it was established that the stock market of Saudi was worth 649.117 American dollars which have increased since that time (Mollah et al., 2016).
4.3 The Saudi Arabia Stock Exchange
Stocks exchange is popularly regarded as Tadawul in Arabian language (Srairi, 2015). The stock market in the country is mainly linked to the experienced growth in the country. Therefore, for the role played by the market to be more stable, there is a need to stabilize and organize the market. Currently, the market is self-regulated one that is administered by a board made of 9 members as selected by the capital authority (Topak, 2011). Listed companies in Saudi Arabia began their operations in the middle of 1930 (Tilt, 2016). The market existed for years while still informal and less structured despite the experienced growth and trading controls were later employed. The market has experienced privatization in the last decade which led to the rise of listed companies from 80 up to 144 amid 2005 and 2010 (Topak, 2011). With the drastic growth, the market has become particularly impressive to foreign stockholders based on its stability and security. However, there is a need for more focused corporate governance to intensify growth and value.
4.4 Summary
This chapter was centered on corporate governance in listed companies in Saudi Arabia to offer a more detailed definition of Saudi Arabian economic context and corporate governance guideline. The analysis reveals that the stock market in the country has evolved gradually but it remains unorganized which is resulting in the increasing fraudulent cases. The market is in need of a more focused on efficiency and maximization of value because the market has the needed potential for growth.
CHAPTER FIVE: METHODOLOGY
6.1 Introduction
The study was aimed at exploring the effects of corporate governance on listed companies in Saudi Arabia. The study focused on the governance and shareholders view to evaluate the general impacts of board members size and organizational structure on the general performance of the companies. This chapter analyses the methodology approach and design utilized by this study.
6.2 Research Strategy
It is highly asserted that an effective study must settle for an investigative philosophy. This study utilized a positivist philosophy where the patterns were created based on the idea that positive corporate governance leads to high organizational performance. This strategy was utilized to demonstrate the existing issues in the environment as well as anticipation with the implementation of the stated changes. The positivism philosophy seeks to evaluate the undesirable and desirable aspects of the market and propose for measures that would be utilized in transforming the situation.
6.3 Research Methodology
The research utilized a quantitative approach that is dependent on statistics. The acquired data will then be interpreted to generate reliable results in that regard and supporting the study’s hypothesis. Some of the independent variables that were applied include committee size, independence, and size of the board. The control variables included leverage, ownership and organization’s size.
6.4 Population and Data
The general populace for the research incorporated diverse sectors that are listed in the country’s stock industry. This aspect was selected because having more companies are associated with the benefit of generating wealth and substantial details regarding the economic state in the country (Francis, Hasan &Wu, 2015). The study from a number of 174 companies utilized about 65 corporations to offer reliable information regarding the larger populace (Hasan, Kobeissi and Song, 2014). The sample did not incorporate monetary institutions based on the distinction in the regulation procedure. Information sourcing was accomplished via the general utilization of cross-sectional information and data sequence between 2012 and 2016.
6.5 Ethical Considerations and Limitations
Consent to maintain confidentiality of the respondents will be acquired along with project approval from the academic supervisor. Since the study understood a quantitative approach the primary ethical consideration was acknowledging the authors not to plagiarize the report. Some of the limitations of this study included time and a large amount of data. There is little research in regard to corporate governance in the Saudi Arabia but much content was founded in relation to the Middle East (Al-Shuaibi, Zain, & Kassim, 2016). The issue of corporate governance is highly discussed and therefore the large data that was acquired needed effort and organization to narrow down. Based on the given time-frame this was challenging to the researcher who permed the summarization and analysis consistently.
Results and Discussion
It is not arguable that corporate governance is of essence in driving corporate performance. The study found the absence of stable and organized corporate governance in Saudi Arabia leads to inefficiency and low performance. Based on stakeholder, stewardship and agency theory asserts that stakeholder’s value should at all times be upheld. In that, the most effective business is the one that the stakeholders enjoy utmost benefits (Zeitun, and Haq, 2015). In other words, it should be noted that corporate issues usually arise in instances when the stewards are forced on guarding the interests of the company while still addressing agency issues. Corporate governance stimulates high investment and the growth of the stock industry which is connected with unchanging economic increase. The status of corporate governance is crucial in enticing more financial providers since they display the most appropriate indicator both to the local as well as the foreign market with respect to the potential threats that might be experienced (Yoshikawa, Zhu and Wang, 2014)
Despite the fact that Saudi is among the developing nations the corporate governance has not experienced growth due to the lack of organization and supportive regulations because the market has proved to be fully capable (Van, Postma, Ees, &Sterken, 2003). In spite of the country’s stock market is classified as a developing market based on its young operative period and size, it is the leader among all the developing nations. The results proved that the market is in need of effective corporate governance in general (Prabowo, Simpson, 2011). Research discloses that the performance of most corporations counts on the size and control of the evaluation groups. Corporate governance in the rising markets has in the current fascinated much attentiveness based on the surviving faults of corporate governance in the Middle Eastern states which is accountable for the manifestation of monetary failures (Al-Shuaibi, Zain, & Kassim, 2016).
Conclusion and Recommendation
The research sought to offer a detailed analysis of corporate governance in the Middle East and the developing nations, particularly in Saudi Arabia. This study funds knowledge by its provision of a generalized comprehension of the value of corporate governance in the progressing market. The understanding was also boasted in regard to the audit committees and directors existing in the listed corporations specifically relating to their size, schedules, responsibilities, and tasks. Future studies should mainly focus on investigating on distinct aspects of corporate governance to ensure that the economy does not suffer mainly from the loss of responsibility while upholding shareholder’s needs. The study established that board and audit committees serve an integral responsibility in corporate governance. In addition, in the Saudi Arabian listed company’s regulation audit boards being among the essential aspects of positive governance were classified as inactive in the fulfillment of its responsibilities and independence lack. The audit committee cannot be an effective performance drive with the absence of control and individuality which creates accountability.
References
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Leadership requires flexibility, in the sense that a leader should be capable of changing according to the situation. In as much as leading people might not be easy, a good leader should always examine the type of tasks which he or she is assigning his or her subjects. This ensures maximum cooperation, and effectiveness from the employees. On the other hand, in situations where things change, a good leader is also supposed to change his or her leadership ways, thus being able to deal with the situation as it presents itself. This paper will therefore focus on leadership, based on Jim Anderson’s six week training program.
Jim Anderson created a six week training program, which was mainly based on listening and communication skills. The main aim of the training program was to improve successful management in the organization through improving communication. Jim therefore utilized situation leadership style. He therefore decides to focus on leading the seminar based on the way the situation is. In so doing, he aims at increasing the number of attendants, hence being able to understand their behaviours and characters. In addition, through the use of situational leadership, Jim hopes the participants will feel free, hence being able to attend other seminars in the future (Northouse, 2013).
Situational leadership allows a leader to be able to relate well with his subjects, a factor which makes them to feel at ease while working. In addition, through situational leadership. Judging from the flow of events, a leader changes his leadership style, hence being able to relate well, and communicate easily with the employees (Chapter 5). This type of leadership therefore ensures maximum collaboration between the employees and the leader, thus leading to improved work output. Similarly, throughout the seminar, Jim opted to use this type of leadership, as it would encourage the participants to come for more seminars in the near future (Northouse, 2013).
The main role of situational leadership is reach an understanding, whereby a leader understands the weaknesses and strengths of his subjects, thus providing support where necessary. In addition, the leader should also encourage the employees to work hard or to do things in a certain way, hence leading increased work output in the organization (Northouse, 2013). This therefore requires a situational leader to balance the aggregate of direction, through building close relationships, due to the changes in skills and motivation in human lives, which occurs with time (Rashid & Leonard, 2013).
The seminar was to offer training to middle-level managers in research and development. The group comprised of 25 individuals, who had advanced degrees, and they had also participated in a previous seminar. The participants therefore knew and understood the way the seminar runs. Due to the way the previous seminars had been, most managers did not see the need of attending the seminar, hence leading to a low turn up (Rashid & Leonard, 2013). However, this time round Jim decided to use new methods and techniques, in order to improve learning and communication. This was the reason as to why Jim opted for a situational type of leadership, as it would allow the participants and the leader to work at ease without any forms of pressure. He was determined to ensure everything remained and went according to plans, since he did not put any strict rules and regulations regarding the attendance of the seminar (Northouse, 2013).
At the back of his mind, Jim knew very well, he was dealing with professional people, who did things in the right way. There was therefore no reason to come up with strict rules against coming to the seminar early or late. He knew all the participants would be responsible, thus arriving at the meeting on time, and following the schedule of the meeting without any problems whatsoever.
Due to the perception which Jim had regarding professional people who were also experienced, he did not see the need to put certain restrictions to the meeting (Northouse, 2013). Jim consequently used presentation technique, similarly, he also asked for active contribution from the managers. Jim became friendly to the participants in the first two sessions, a factor which affected his speech delivery. In addition, he also provided them with coffee during the breaks (Rashid & Leonard, 2013). This made the managers not to take him seriously. The managers felt as he was not serious, by relating with them and even becoming very friendly, hence leading to familiarity, a factor which made most of the participants to even before the third and the fourth sessions (Northouse, 2013).
Managers tend to believe that since they are in control of an organization, then the rest will follow. They tend to forget that being a manager is just but a title, whereas being a leader is a different thing (Northouse, 2013). Leadership is consequently a practice whereby a person impacts other people to focus on a specific goal to the end. A good leader should be able to sway other managers in a positive way, through encouraging them to achieve a common goal (Rashid & Leonard, 2013).
The seminar was not therefore successful, because Jim did not understand what leadership is. Perhaps he should change his leadership style in order for the managers to take him seriously. He should be serious, but also supportive, have a tight schedule, which would makes the managers to see the need of attending the seminar and taking the lessons seriously (Rashid & Leonard, 2013). He should consequently value the participants’, nonetheless, he should be strict in such a way which makes the managers to be responsible, thus being able to attend the whole seminar without returning back to their offices (Northouse, 2013). On the other hand, since the content of the seminar was good, it will only require Jim to change his personality, and act more like a leader, thus making the managers to appreciate whatever he does, and to also take him seriously.
Conclusion
Leaders are people who influence others to do things in order to achieve a specific goal. As discussed in the paper, a good leader should be able to convince other leaders to do certain things, in order to achieve their goals. In the case of Jim, he did not understand what leadership is, a factor which made most manager to leave the seminar before the last session. In order to be a leader, one should be influential, convincing and articulate. Jim did not pay attention to the qualities of a good leader, a factor which made the managers not to take him seriously, thus leaving even before he had completed the seminar.
Organizational behavior involves an understanding of how individuals and groups behave and aims at explaining and predicting such behavior in an organization. It deals with the feelings and attitude of employees in the workplace including relationships, organizational commitment, jobs satisfaction and even emotional aspect of the members in an organization (Phillips & Gully, 2014). In this field of study, the aim is to investigate the effect of structure, group and individuals on behavior so as to apply this knowledge in enhancing effectiveness of the organization. It, therefore, involves an applied behavioral science whose foundation is behavioral disciplines such as sociology, psychology and social science.
Wal-mart is an American multinational whose business operations include wholesale and retail in different segments including Wal-mart U.S , Sam’s Club and Wal-Mart International. These segments have enabled the firm to expand its operations in different markets global and regain a significant market share in retail and wholesale business. Wal-Mart U.S comprises of digital and retail store operations across the U.S market where it provides products related to financial services such as prepaid cards and money orders (Wal-Mart, n.d). Walmart International segment comprises of various formats of operations such as wholesale and retail outside the United States market such as supermarkets and convenience stores. Wal-mart’s Sam’s Club offers warehouse clubs services for its members. The firm started out as a single store with an aim of selling more at lower prices and has grown over the last 5 centuries to become the largest retailer globally. The firm has a large number of employees and other associates that has helped it in the growth and expansion strategies that has characterized its operations (Wal-Mart, n.d). The leadership of the firm is centralized and has been trying to create an organizational culture based on integration and business ethics by developing policies for all its stakeholders. Walmart strengths results from its large size give its global presence in terms of operations and an efficient supply chain. The huge revenue generated from its operations has seen it grow in terms of size and range of services provided. However, due to the large size and operations, the firm has faced various challenges including small profit margins, a business model that has no uniqueness and management issues related to workforce. The organizational structure of the firm is basically hierarchical which has shaped the culture and hence, it’s organizational behavior. The organizational behavior of the firm has recently been shaped by the various issues relating employee job satisfaction, defiant behavior among the workers and various leadership issues.
Organizational behavior issues at Wal-Mart
The organizational structure and culture of Wal-Mart has resulted to various organizational behavioral issues that has affected the operations and performance of the firm both at the management level , middle and lower levels. The social-economic structure of the environment in which the operations of the firm are based has changed rapidly which has placed high emphasis on the working environment, leadership function in an organization to adapt to the rising needs. Amidst such happenings in the current global business of environment, Wal-Mart has been faced with problems involving employee’s work satisfaction, employee attitude towards work and working environment and leadership issues. The changing business environment in the current world has comes with challenges related to the aforesaid issues in firms especially those with their presence in the international markets. These challenges arises from need to have employees who are motivated and committed to the goals of their organizations regardless of the disruption brought about but shifting social economic structures. Wal-Mart’s approach to these changes have always yielded the desired results as issues of employees mistreatment , low remuneration and lack of opportunities for personal growth has impacted on how employees behave and how leaders respond to these behaviors.
Job dissatisfaction
This is major issues that Wal-mart has been encountering and its origin can be attributed to low wages and limited opportunities for personal career growth for employees. The firm’s “save more. Live better” slogan has not worked well in regard to addressing employees basic financial needs in an economic environment that has become increasingly challenging. The firm has a larger workforce of over 2.3 million across its many businesses and stores in the world , but reports of significantly low wage rate as compared to the industry rates has been a source of dissatisfaction among the employees. The firm’s management has been very aggressive in activities that are aimed at cutting cost and this has lead to maintenance of employees’ wages and benefits and low levels. Adoption of the cost cutting measures by the firm has resulted to a disgruntled workforce that feels that there are not been remunerated fairly (Ungar ,2013). This has resulted to low commitment at the various outlets and stores and this can be explained by the previous strikes in local markets such as Washington D.C and even in foreign countries like China. The effect of this remuneration policy has been low morale, dissatisfaction and high turnover for the employee.
The dissatisfaction among the employees goes beyond the wages to include lack of proper training an indication that the firm has not been investing in its workforce. The lack of training denies the employees a chance to progress in their career which leads to low morale and hence, reduced satisfaction at the workplaces. Even though there have been effort by management to boost the morale of its employees and hence, increase their level of satisfaction, such efforts have failed to fully boost the morale and employees. In the past, a research has confirmed that the workers at the store perform the duties not because they love their work but because they fear their managers (Mourdoukoutas, 2016). This does not augur well with the creating a positive working environment for improving morale and hence, organizational performance.
Defiant employee behavior
The human resource management policies at Wal-Mart have led to case of defiance among the employees in their business platforms located both in the domestic and international markets. The many case of low payments, discrimination and punishments have made the employee’s of the firm to develop negative attitude towards their workplace and the management which has made it had to implement human related decisions and policies. Such defiance has pitied the Wal-Mart management against labor unions and labor courts that have seen some their decisions to punish their employees overturned and this has been detrimental to the performance of the firm. The defiance behavior can be observed by various cases of employee absence, angry outburst and protests especially towards their supervisors. In oversee markets such as China, case of employees resolution to remain defiant have been reported. In one instance, Wal-Mart employees were reported to have prevented the firm from removing various commodities at a building in an effort to stand up for their rights (China Labor Bulletin, 2014). Such confrontations even worked against the firm after the authorities appeared to have been won over by the actions of the workers even though they later took a neutral stance. In such cases the behavior of the employees has been attributed to management’s failure to address employees concerns relating to work environment, poor pay, long working hours and resulting exhaustion that makes most of these individuals to develop aggressive behavior towards the management. It would be difficult o expect that employees working under such unfavorable environments to comply with management’s decisions and directions without questioning.
Leadership issues
The business model employed by Wal-Mart has faced many challenges especially in relation to addressing human relation issues such as remuneration, training and organizational culture. A major source of this problem has been inadequate or lack of employee training. The structure of the firm requires many managers at various levels and in this case, the middle level managers wield absolute power so that they do not see the need for employee training (Mourdoukoutas, 2016). The managers seem not to care about the skills that need to be instilled in workers so that they can carry out their tasks appropriately. This kind of attitude seems to align with the adage that absolute power corrupts. The result has been a culture where workers learn through guesswork and yet they will be held accountable at the end of the day.
The management seems to lack a realistic strategy that will link training, efficiency in work, morale and employee attitude while serving the customers. The company has not been at par with the changing environment which requires equipping employees with the right skills to handle the change but leaving them to adjust on their own is just an act of neglect. Lack of proper strategies can also be related to employee attitude toward customers where the quality of services offered has been wanting for some time. The failure in leadership can also be seen in various scandals that the firm has been involved in their business operations, and which seems to have influenced the behavior of middle level managers at Wal-Mart businesses (Heineman, 2014).
Impact on the organization
Employees who are not satisfied with their work will not show enough commitment to the organization since they lack motivation which can directly affect the bottom line of a company. Lack of job satisfaction at Wal-Mart is attributed to low rates of wages, lack of training and opportunities for growth and policies that are considered ineffective in addressing the issues affecting employees. This results to defiant behavior among employees who feel unable to meet their basic needs or do not see clear direction for their career path or life. The back lies with the management that does not show effective leadership in developing effective strategies for addressing the various challenges faced by employees while performing their duties. The impacts of low job satisfaction may be significant to the performance of the organization and should be raise a concern to the management. When employees are not satisfied with their work, they motivation and drive to perform their duties are affected this results to low performance.
The low rate of payment and discrimination issues have led to increased rate of turnover at Wal-Mart and the firm has lost part of the skilled workforce who is not ready to extend their stay at the firm. Lack of training has led to a culture where employees use guesswork in providing services to customers which has the potential to affect customer satisfaction with the firm. In fact, provision of customer services has been hard hit by the lack of commitment by the employee while lack of training has made the quality of such services to remain quite low (Mourdoukoutas, 2016). High quality services at low prices are factors that built the reputation of the Wal-Mart, and this was indicated by superb logistics and business tactics that turned it into the biggest retailer across the world. Low quality customer services are solely eroding this success since customers are not willing to buy in various stores due to the bad attitude by workers. The major problem has been lack of proper leadership by management especially at the middle –level, and this can be seen in lack of training of workers and failure to create an environment where workers attitudes will be positive (Mourdoukoutas, 2016). Thus has led to lack of connection between the firm and customers since services offered by workers do not satisfy the market needs. A major impact of poor leadership has been the inability of the firm to remain at par with the environment. Lack of training mean that workers have not been able to meet the dynamic needs of the market and the adoption of the latest technology has been low. The firm cannot compete with other firms that provide a favorable working environment for workers and whose leadership strategies give them an edge in terms of technology.
Recommendations
Wal-Mart managers need to come up with strategies that will improve job satisfaction for the employees, reduced cases of defiance and at the same time solve management issues especially at the middle level. According to Herzberg two-factor theory, an organization can introduce various factors (motivators) and reduce de-motivation (hygiene factors) so as to improve employee morale and hence, their job satisfaction (Griffin, Phillips & Gully, 2017). The motivators involve the actual job such as the degree at which the work is interesting, the opportunity provided for more promotion and responsibility. In addition, hygiene factors involve those aspects that surround a job to be done but not the job itself (Griffin, Phillips & Gully, 2017).
A business should improve workers motivation through improvement of the content and nature of a task. Wal-Mart should ensure that training is used as a factor that will equip the employees with the skills needed to undertake more responsibilities get promotions and hence advance in their career. Through this, job enlargement will be possible in that mire tasks will be allocated to workers who excel in training and their efforts in performance of such tasks will provide a way for person growth and development. In addition, the management should address the issue of low wages so that workers are able to meet personal financial needs. Rewards can also be motivating factors since they allow an employee to relate to actual results of his or her hard work (Griffin, Phillips & Gully, 2017). When workers feel empowered in their job, their level of satisfaction will be high.
Managing with defiant workers involve management of their personalities so that they can work as a team especially with customers. The morale and performance of any employee will be highest when they work together as a team and at the same time uphold respect for management, their decisions and other employees (Amos, 2008). Wal-Mart managers can use reward system to improve on the behavior of employees who are defiant and especially who deal with their frustrations through protests and absenteeism. Reward system in the reinforcement theory involves set of brain structures that try to bringing the behavior of a person under control through the inducement of pleasurable effect. The management can use promotions, monetary bonuses and even paid leave so as to induce the needed reduction of defiant behavior and especially regarding the decisions made at Wal-Mart. Therefore, reinforcement has to be very motivating to the targeted person since not all people are motivated by the same things (Amos, 2008). In order to deal with leadership issues at the firm, management should emphasize the importance of ethical leadership and where possible establish an ethical code that will ensure that leaders worker for common good of all stakeholders. Ethical leadership involves demonstrating a personal conduct that is appropriate and acceptable in aspect of one’s life (Phillips& Gully, 2014). Hence, all managers especially at the middle level will work towards improving the working environment, train employees and use reasonable rates in employee remuneration. Ethical leadership also requires the conduct of all managers is in line with ethical standards to prevent scandals that may hinder performance of the firm.
Conclusion
Organizational behavior involves attitude and feeling of employees and the structure of an organization that influences relationships, job satisfaction, commitment and productivity. Wal-Mart is the largest retailer and wholesaler in the globe and its success has come with various challenges due to the large operations and workforce. These include low job dissatisfaction, defiant behavior by employee and poor leadership at the model level. These challenges have affected the performance of the firm and especially in customer service delivery. Increasing job satisfaction through improved morale and leadership will reduce any defiant behavior and eventually lead to better performance.
Reference
Phillips, J., & Gully, S. M. (2014). Organizational behavior: Tools for success. Mason, OH: South-Western Cengage Learning.
Griffin, R. W., Phillips, J., & Gully, S. M. (2017). Organizational behavior: Managing people and organizations. 179-180
Amos, T. (2008). Human resource management. Wetton, Cape Town: Juta. 184-185
The notion of change management is applicable to my personal life Change is a shared aspect that occurs to every individual and organizations regardless of their age, experience or size (Kotter & Cohen, 2002). The world is currently experiencing rapid changes which require individuals to adopt faster measures to match these transitions. People that address change appropriately succeed while those that fail might struggle to last. The manner in which individuals manage change varies highly depending on the state of the dominating situation and one’s capacity (Reiß, 2012). It is worth noting that success is dependent on the one’s understanding of the whole change process (Reiß, 2012). Despite the fact that my desire to manage change never occurred until I started learning about change concepts and theory when I try to assess my life it is apparent that I have acquired varying changes degrees and experience both in my personal and professionally exists.
Throughout the course, I have learned that change is unavoidable. It is rather surprising that in life there is nothing that is everlasting except change because it is consistent (Reiß, 2012). Personally, I believe that happiness and success are not derived from wealth or huge financial achievement but from the individual’s capacity to move through different transitions. Change management is an essential concept that has impacted my personal and professional lives in different aspects (Kotter & Cohen, 2002). To begin with, as I outclassed through each grade, consistently learning fresh things and substantially challenged by fresh and more dynamic concepts this was a form of transition. Also socially, I have lost friends and family members at different points which were a complex change to my social dynamic because those people offered psychological and social support to me. However, looking back today, it is fascinating of the much that this kind of losses transformed my personal dynamic. From this course, the most relevant concepts revolve around change management such as team building, communication, and visualization (Goodman & Truss, 2004). This aspect helps in easing the dynamic of personal and working lives.
Kotter’s eight-step change process can perfectly in applied in my professional life. For instance, I aspire to become a participative leader and an effective manager. However, I practically challenged to effectively work with teams or to maintain consistent communication. I believe that the process of change should be communicated uniformly and thoroughly to create unity and comprehensive understanding. Workers buy the proposed changes after their leaders persuade them of the change urgency need to be conducted (Kotter & Cohen, 2002). The end change steps that are utilized in this theory are intensifying change urgency, developing teams dedicated to develop change, creating change’s vision, communicating the necessity for change, encouraging and supporting employees with change potential, creating short-run objectives, retaining persistency and making the developed change to be long-lasting (Goodman & Truss, 2004). I anticipate that the concepts will impact my profession positively by creating efficiency and skillfulness. In that, it is through the use and understanding of these concepts that will help me in managing people as well as changes in an organization (Goodman & Truss, 2004). I will apply the concepts professional to build teams and create effective communication channels that seek to motivate employees to work towards organizational success.
Change is the procedure through which one ensures that transformations are occurring both in the professional and personal lives and should thus be applied well in order to generate long-run benefits (Kotter & Cohen, 2002). College to me is an important change that I have to manage because I am required to understand how best time and responsibilities can be scheduled in addition to balancing social and economic activities. Throughout the course, there is one thing that strikes my motives and drives both personally and professionally. This is that planning for change is essential than facing change. In that one’s preparedness determines the general outcome of their reaction to change. Preparations work to ensure that there is readiness which in turn generates potential and the possibility for success (Sharma, 2008). As the working environment transforms those in it changes as well. On a personal close, I should recognize the values, standards and everything that no longer applies to my life to avoid being resentful. Past failures do not imply that I will not succeed rather they are there as a mark of my capability to overcome challenges and complexity in life. Once I have established the needed values flexibility is necessary because change management is basically about elasticity and meeting negotiations that cannot be escaped.
From the book ‘’ the Heart of change’’ by Kotter and Cohen (2002) I learned change management success is determined by the manner in which people meet persisting issues collaboratively. Rather than focusing to be an authoritative leader, I can instead concentrate on building operative teams. Effective teams are the best way via which employees can be reminded and inspired to achieve higher in terms of skills and performance. Once the right goal-oriented teams have been created, it will be necessary to communicate the anticipated targets and organizational goals to all the teams’ members (Goodman & Truss, 2004). This is of the essence as I attempt to create positive relations that encourage cooperation. Kotter and Cohen (2002) assets that change management efficiency can only be acquired where every member is fully aware and familiar with the anticipated outcomes and how the proposed changes might affect them.
The most organization today have acknowledged the positive attributes of effective teams particularly in the international business where diversity management and inclusion is necessary (Kotter & Cohen, 2002). Employees as an essential part of the business should be thoroughly informed of business operations and vision. When I fail to communicate effectively to the employees this might result in disappointments and confusion. However, as the manager, I can mitigate such issues by maintaining clear and inclusive communication channels. In order to facilitate effective communication, I will create weekly check-in systems that will ensure that all the employees are fully informed of the set changes. In my professional leadership, effective communication will not be about delegating and directing employees rather everyone will be given an equal opportunity to participate. After informing employees can respond and propose suitable solutions while accounting for their needs. I have learned from Truss & Goodman (2004) that when all the employees within an organization are fully pleased by the roles they play and the working environment, they are capable of performing their responsibility with a positive perception.
From understanding, I believe that successful change only occurs with obligation. In order for change to occur all the entire company should be desiring it. This is why I will mainly focus on developing a feeling of urgency throughout the organization in order to trigger motivation among all the members in order to ensure that consistent movement is generated. According to Kotter that for successful change to be acquired at least three-quarter of the organization’s administrations are required to at least ‘’buy into’’ the transformation (Kotter & Cohen, 2002). Building collaborative teams are necessary for persuading members of the necessity of the proposed change. In order to generate change, I am required create an authoritative team which will in turn help in the identification of individuals strengths and how each can be utilized to support change and higher achievements. Other than communicating I will develop systems that seek to integrate any occurring change with the company’s culture for both long and short-run gains. To me, efficient change management is all about creating a favorable environment for it to occur (Sharma, 2008).
The two major ideas that were inspired by my classmates are team building and effective communication. From my classmates, I learned that success can be gained at ease when people operate collaboratively rather than individually. Teams are not only essential because they contribute to success but they also help in overcoming hurdles (Kotter & Cohen, 2002). Collaborative working tends to be more effective because it encourages thoughts sharing thus resulting in the development of a feasible solution to any existing challenges. On the other hand, all this can never be achieved without effective communication which involves sharing and evaluating others responses (Goodman & Truss, 2004). On the other hand, I found the aspect of technology use in communication and operations management to be of great significance. In that, technology is currently, the backbone of every business and should, therefore, be applied appropriately. I intend to use technology to create effective and direct channels of communication as well as motivating the employees to commit and achieve more. From the course, I anticipate having an utmost impact on profession because at the end I will be fully equipped in terms of knowledge and the needed skills in my career.
I can leverage this course’s learning to bring personal and organizational change by believing in my individual potential. Based on learning academic based insights are essential in supporting change and thus if I need to create long-lasting changes I cannot achieve it alone. My teams will need to be completely involved and more concentrated on achieving mutual goals within an inspiring surrounding. As a leader practical engagement would be essential in improving my skills and upholding this course’s concepts in general (Sharma, 2008). In that in order to be an effective communicator one must learn to engage others in steady communication where the responses of every individual and their concerns are well accounted for (Goodman & Truss, 2004).
My management career, it will involve working with different members of an organization comprising of leaders, followers and other stakeholders on whom operations revolves. Communication will be very important especially when introducing strategic change so that to avoid situations where as a leader, I will be sending confusing signals to the other people in the organization. As a leader in an organization, introducing change requires that the involved parties understand the need for change, own the change introduction process and embrace it so that any confusion that may leads to misunderstanding is quashed (Kotter & Cohen, 2002). To achieve this, I will have to increase the urgency for the change, come up with a team that will foresee such changes and get everyone to share the same vision in the organization. In addition, effective communication regarding the need for change and removing barriers that may hinder the communication process are other important concepts that intend to embed within my professional for success (Kotter & Cohen, 2002). These concepts are essential in my professional because organizational change is shaped by effectiveness of communication, and such change is inevitable in leadership and management. Leading an organization involves collaboration with different individuals from the junior to senior management level which I will have to undergo to progress in my profession. To be successful at all levels of management, I will have to collaborate with colleagues in terms of teamwork in various group work projects or even in managing such teams. This same is true if I will be intending to communicate various changes on how such projects will be carried out in an organization and this highlights the need for increasing urgency.
Growth in a leadership professional means that I will have to be at the heart of any change that will be introduced in the organization. Such changes may involve introduction of new technologies , managing mergers and acquisitions , coming up and introducing new operational strategies , cultural transformation and restructurings which are at the centre of organizational leadership (Kotter & Cohen, 2002). In management profession, there is a need to have effective ways of communications on any such changes that are likely to influence the growth of one’s profession in an environment that is becoming increasingly turbulent. At the basis of effective communication is how I will let my organization know what I want. There is a risk of my followers feeling that I was not very clear about any change being introduced, what achievement is intended and what the change entails. Being at the heart of organizational change requires that leaders be able to express what is needed in terms of outcomes while making it clear on how far changes will go (Goodman & Truss, 2004). In relation to this, I foresee a case where I am able to effectively communicate with members of my team, my colleagues and especially my followers about the intended change, what is expected from such change and how go about implementing the change.
In addition, I look forward to being able to change people’s behavior so as to reduce any resistance to change, and this will involve bringing them on board so that they have the same perception of the change as mine. This will involve sharing a common vision with them through establishing a clear sense of direction which they can follow to realize the intended outcomes of such changes. Effective communication will be important in engaging team members and other involved parties in developing strategic plans and related budgets which will be used in pursuing the intended outcomes of the changes (Goodman & Truss, 2004). Depending on the structure of the organization, team structure and the project to be undertaken, I will rally others to communicate their ideas and criticism which will ensure that their input is included in the strategic plan and this will have the potential to make us share a common vision. Such a strategy will be forward looking since it provides an opportunity for increased engagement and hence, the opportunity to foresee any forthcoming negative behavior in terms of change resistance. Establishing a common ground during change management is possible if people involved in implementing a plan are involved and this will ensure that any hindrance can be dealt with at the source (Sharma, 2008). In this regard, I will intend to ensure that all aspect of large-scale change including plans, budgets, visions and strategies are developed in a manner that aligns with a commonly shared goal or vision.
A vision works as an efficient function of coordination and relates directly to the aspect of urgency (Kotter & Cohen, 2002). In relation to this, the implantation of need for urgency during change introduction will help me in undertaking managerial function in world that remains slow when it comes to change acceptance. In uncertain future of organizational management, I may have a team that shares a vision that will make it possible to walk together under the guidance of set standards without hurting others or conflicting with their goals in life. Every member will have their professional goal and helping in achieving theirs will create a mutual relationship with a common goal in mind. This idea will enable me to communicate the strategic plan to others and hence reduce any resistance to introduction of an intended change. Where is no vision, people are no on the same page, and hence running into roadblocks and hurting on another will be inevitable (Kotter & Cohen, 2002). I foresee a working environment in which I will set a clear direction especially about a large-scale change and make other people to have a positive perception of such change which will be important for any organization.
An important aspect in ensuring that I succeed in leadership will involve empowering, which is an important concept in having people to act on a specific vision. This will involve removal of obstacles which may stop these people to see the need for change. Change leadership requires one to have an empowered team, one that will work towards the success of an organization while undergoing turbulent times brought about by such changes (Kotter & Cohen, 2002). In my profession as a manger, empowering my followers will be important in ensuring that they are productive while working on changes in certain projects. This will build momentum, wrought by consolidated changes that are based people who understand what needs to be done, how to do it and benefits arising from it. A success in this sense means that my professional and career growth will pick the momentum.
In conclusion, it is evident that change cannot be escaped and it is consistent. Kotter’s Eight Step change process is very applicable in my personal as well as working life. As an individual who anticipates being effective manage the capability to manage change consistently while engaging all the company’s members is essential. Change has been there constantly in my life but I have managed to overcome and succeed. Change is not a fresh concept but it necessitates different handling measures in order to achieve positive feedbacks. Change management is an essential concept that has impacted my personal and professional lives in different aspects. I will utilize the gained concepts to improve my knowledge as well as skills needed in managing my working and personal lives.
References
Goodman, J. & Truss, C. (2004). The medium and the message: communicating effectively during a major change initiative. Kingston Business School, Vol. 4 No.3, 217-228. Routledge.
John P. Kotter & Dan S. Cohen. (2002). The Heart Of Change, Real-Life Stories Of How People Change Their Organizations. Havard business school Press.
Sharma, R. (2008). Celebrating Change: The New Paradigm of Organizational Development. The Icfai University Press.
Reiß, M. (2012). Change management: A balanced and blended approach. Norderstedt: Books on Demand. Norderstedt.
Karl Polanyi challenged the conventional ideas of market economy and related notion of labor, where he declared the status of labor as a commodity to be fictitious. Labor is necessary for a market system that is self-regulating but cannot be sustained in this system. He countered the notion of labor as a commodity that could be regulated within a free market as supported in previous economic theory development. The efforts to make labor to be a commodity subjected workers to free labor contracts, and this destroyed the existing social structure and attempted to reduce social livelihoods to material quantification (Block & Margaret, 109).
Nature as a fictitious commodity
Treating nature as a commodity involves turning human habitats into parcels of land and using the land to generate profits. Polanyi’s arguments against commodification of nature comprised anticipating the dangers come with it, where the land would be subjected to severe environmental degradation. In this sense land is just a human’s natural environment and this means that treating it as a commodity is fictitious. Human being faces risks of treating land as a source of profit – raw materials – rather than using it for food production (Block & Margaret, 112).
Currency as a fictitious commodity
Treating money as a commodity is fictitious according to Polanyi since it cannot be consumed. When the production of money is not regulated and left to totally to the financial institutions, they become reckless in their pursuit for profit through credit. Dismantling the various restraints on the expansion of credit gives the financial actors an opportunity to use the notion of free market increase the debt-to-asset ratios with the possibility of destroying the economy (Block & Margaret, 109).
Works cited
Block, Fred, and Margaret R. Somers. The power of market fundamentalism. Harvard University Press, 2014. 108-113
Fiaz, M., Qin, S., Ikram, A., & Saqib, A. (2017). LEADERSHIP STYLES AND EMPLOYEES' MOTIVATION:
PERSPECTIVE FROM AN EMERGING ECONOMY. Journal Of Developing Areas, 51(4), 143-156.
Authors
This artcle is written by four authors namely; Fiaz, Ikram, Saqib and Qin. Fiaz, Qin and Ikram are from Xi’an Jiatong University where they have gained comprehensive knowledge and skills based on business and management. Fiaz has produced 30 publications, Ikram has one publication and Qin has 13 publications. All publications are based on business and management in general. Saqib is from University of Engineering and Technology where he has gained a comprehensive knowledge in business and has produced one publication.
Purpose of Article
The purpose of this article is to research the leadership style which is effective for employee motivation. Fiaz, Qin & Saqib assert that both public and private organizations in Pakistan face the challenge of ineffectual leadership. Organizations are addressing this issue and interested in employing effective leadership style that will increase employee motivation. In modern world, leaders are key elements in organization needed for motivating and influencing followers toward achieving the goals. The authors state that employee motivation is important as it encourages employees to put more effort and improve performance for them to achieve unusual goals. Leadership is important in building a well-qualified workforce who will collaborate in achieving common goals. Employee motivation requires an effective leadership style as it will create a committed workforce who will reduce employee turnover and maintain the competitive edge of the organization. The article asserts that in the emerging economy, organizations have not paid much attention on leadership style. The article is addressing organization managers and leaders and urges them to pay attention on leadership style in order to motivate employees and cope with changes in the emerging economy.
Article Credibility
In the research, Data was collected through the method of survey questionnaire is used. One hundred and ten (110) managers from Water and Power Development Authority (WAPDA) are used. Hypothesis and practice implications were tested using descriptive and reliability statistics. Before conducting the research, a theoretical framework was used to examine the relationship between leadership style and employee motivation. A theoretical model was taken from previous studies which gave evidence that employee motivation is influenced by three leadership styles namely; democratic, laissez-faire and autocratic leadership styles. Other recent article by (Bass & Avolio, 2000; Tillery and Fishbach: 2014) provided research design tools such as Multifactor Leadership Questionnaire and process-focused approach. Cronbach’s alpha test was used and showed both the independent and dependent variables had 0.787 alpha coefficient. The study showed that in WAPDA, autocratic leadership does not increase employee motivation and this evidence was also taken from Kipnis et al., 1981. A previous study from Bass (1997) confirmed that employee motivation is influenced by democratic and laissez-faire styles. Further analysis showed that democratic style is not effective since denies employees the opportunity to participate in decision making. Finally, the findings concluded that autocrtaioc style impacts motivation negatively. Democratic style influences motivation but does not cause a significant impact. Laissez-Faire is the best style for employee motivation.
Content Summary
In the article, Fiaz et al, (2017) provides an important information that leadership style is important as it determines to outcome of human resources. Previous research from (Kesting et al. 2016: Puni, Ofei & Okoe 2014) affirm that laissez-faire, democratic and autocratic styles are effective in motivation, increasing value outcome such as satisfaction, turnover and effectiveness. The article state that leadership style has an impact on organization performance since a style which influences motivation controls employees’ behaviors. The important point which leaders should note is that leadership style can increase or decrease productivity and profitability. The message offered by the authors is important as it allows the reader understand different styles and their role in organizations. Note that leadership style is the key to productivity and satisfaction. For example, autocratic style in every organization pays attention on performance which is influenced by policies, work task, reward, punishment and more. Democratic style is interested with the team and leaders pays attention on commitment, encouragement, involvement and more. Laissez-faire style does not focus on employee development but rather allows employees to control themselves.
Application
This article is important as it offers an essential message based on the effective leadership styles which leaders should employ in order to increase employee motivation. I have learnt that employees’ motivation, productivity and profitability are improved by effective style of leadership. The important point is that laissez-faire style is most effective as it increases morale, behaviors and increases effectiveness. I would apply the lesson learnt in real world in solving problems facing modern organizations. For example, organizations in Pakistan face leadership problems and in this mater I would use laissez failure style to ensure that employees have the opportunity to make decisions, be accountable and adhere to the culture of self-motivation. In my professional, I will apply the leadership knowledge and skills gained from this article to ensure that the organization has a strong team, employee are free from strict policies and are accountable and responsible in improving performance and productivity.
What is the difference between a ‘group’ and a ‘team’ and how do collections of people become ‘teams’? How do managers and leaders enable effective team formation and working? How would you develop your own capacity to grow effective teams?
Introduction
Nowadays, teams and grouping notions are implemented by companies in order to undertake distinct consumer-based projects. In that, when two people or more are categorized together by a company or on the grounds of social necessities, this is understood to be a group. Contrary, a team can best be described as a collection of individuals who are brought together in the quest of achieving a common objective (Edmondson, 2012). Most operations in business based organizations are undertaken within group’s classifications. Despite the fact that the personal personality of every worker is essential, their usefulness is dependent on teams that work in supportive collaboration to accomplish a given set of objectives. In one team several groups can be in existence where the members personally assist their leaders to achieve the specific objectives (Edmondson, 2012). In this context, it is apparent that a team and a group are different despite the fact that they are comprised of a collection of people a team is more objective and the members are linked together by having similar motivations and goals. A team is therefore, more operative than a group (Edmondson, 2012). This paper will present an analysis of the distinction amid group and team and how a group of people is transformed into a team. In addition, it will analyze how managers and leaders establishes operational creation and operation of teams as well as how I would develop my own capacity in developing operative teams.
An In-depth Literature Review
In the business context, the term group and team are utilized interchangeably to demonstrate their significance in describing organizational behaviors but they are distinct (Ghuman & Aswathappa, 2010). A group is normally comprised of persons who work collaboratively to completing a given task while actually, a team is just an assembly of persons dedicated interdependently to one another in accomplishing a given job. The recognition of the existing differences despite them being small can assists organizational managers to successfully lead persons to achieve the set organizational objectives (Ghuman & Aswathappa, 2010). Organizational behavior is best described as the examination of individuals. In that teams and groups within an organization are some aspects that play part in organization behavior. The manner in which individuals associate in their respective operating surrounding expressively, communication and informally all play a role. Both concepts determine the behaviors and the conduct of every member (Gustavson & Liff, 2014).
Leaders are answerable to the gathering of teams and leading them to the highest performance. In that, an operative leader establishes the significance of embracing diversity amid individuals and understands how the differences can be utilized for strategic advantages (Gustavson & Liff, 2014). An effective formation and operative team is one that is characterized by high performance. A team can best be defined as a gathering of objective focused persons with customized professionalism and modernized skills who cooperate, revolutionize as well as generate consistent high results. This particular group, on performance superiority via shared cooperation, leadership, transparent communication as well as objectives (Gustavson & Liff, 2014). Effective teams are the modern workplaces backbone and leaders should be focused on creating stability in this teams. Without effective formation and operation of teams, this implies that the leaders are at risks of limited production as well poor performances (Ghuman & Aswathappa, 2010).
The major characteristics of a team are that it is associated with similarity of purposes and goals. A team is a general reproduction of a more specific feature of a group (Gustavson & Liff, 2014). Individuals in any given team unlike in groups normally work collaboratively in order to accomplish mutual causes. The existence of the groups leads to the generation of teams. The word group can be linked to any usual small gathering of persons which depends on the kind of tasks they are necessitated to accomplish given that they exist due to a different connection such as family, staffs or networks groups (Homan et al., 2008). On the other hand, a team is mainly related to individuals group in a specific setting such as work or sporting. This is a unique kind of group that is related to certain operations or duties. In a team, the members normally depend on each other for an extended period as they operative collaboratively for the long run (Homan et al., 2008).
Managers and organizational leaders enable effective formation and operation of teams via effective communication, building trust and being collaborative (Homan et al., 2008). Creating trust is essential given that employees will automatically learn to trust the made judgments. Trust is not built by subjecting authority but it means, that every individual should be encouraged to focus on transparency and honesty. This is because it is not possible for the leaders to supervise every staff in the organization but with the presence of trust, they are bound to operate effectively to achieve a common objective (Edmondson, 2012). Operative teams cannot be built without a proper understanding of every member’s skills, knowledge as well as capabilities. Therefore, leaders usually focus on establishing associations with every member to create the needed understanding. This knowledge is a valuable one given that it assists in matching the profession and abilities of each to specified issues which in turn result in increased production and high job satisfaction (Edmondson, 2012). In addition, trying to incorporate them in the procedures of making decisions is essential. In that rather than focusing on assigning and managing duties, open-ended operations are encouraged because they inspire collaboration and build problem-solving capabilities (Homan et al., 2008).
In addition, as a leader, one should focus on building relationships with all the members. As cooperation begins within these teams, their working should be examined and adopt strategies that are aimed at improving communication, faith as well as collaboration. Issues should be solved in harmony by listening to the presented arguments without any biases which are a way of empowering coloration (Gustavson & Liff, 2014). A leader is an individual who does not focus on control rather focuses on listening and communicating without any kind of judgments which encourages workers to develop fresh problems solution strategies (Edmondson, 2012). Once relationships have been created amid the leader and the workers it is time to foster on collaborative working. In that information sharing should be encouraged by focusing on consistent communication. Effective communication is not about discussions but this mainly includes holding open debates to acquire suggestions as well as concerns where everyone is motivated to assist and offer their expertise when required which encourages clear and truthful communication. Finally, ground policies to govern the teams can be set. Teams are established formally via the development of team values, objectives and performance targets in association to the person’s performance. In the contemporary workplace, team building for managers is a primary responsibility (Edmondson, 2012). This is not a venture that can be achieved and abandoned given that its sustained necessitates commitment.
Team building is not an easy responsibility given that it does not only demands commitment but reading skills are a must. The potential of teamwork is mainly dependent on the capability by team leaders to organize the members based on clear and shared values (Kanaga & Kossler, 2011). To begin with, I would develop my personal capacity of developing effective teams by being an effective communicator, building relationships, focusing on participative leadership, transparency, commitment, confidence and problem-solving capabilities. Focus is essential because an effective leader establishes clear visions, shares them with the followers and supports them towards achievement. The leading capacity involves the general capacity to motivate the involved persons in the quest of getting the desired outcomes (Kanaga & Kossler, 2011). Effective communication is necessary and all effective leaders are best in communications. I would therefore, develop my communication skills to ensure that I grow to be a good listen and communicator (Kanaga & Kossler, 2011). This means that in the presence of argument I would be able to listen to the presented arguments and offer my opinions without any kind of judgment. In addition communicating of thoughts and decisions without affecting emotions and productivity is part of being an effective communicator. The manner in which information is delivered is part of the accountability of a leader and this assist in making the members acquire a sense of motivation and objectivity (Katzenbach & Smith, 2015).
According to Role Theory people describes their responsibilities for self and those of others based on learning and social learning (Katzenbach & Smith, 2015). In addition, individuals normally encourage others to act within the expectations that have been set. This implies that setting common goals in a team implies that individuals are bound to act collaboratively for the achievement of the specified goal. The role of leaders is therefore to create clarity regarding the roles of every member to avoid role conflict (Katzenbach & Smith, 2015). In that such conflicts can happen where individuals have a distinct anticipation of their leaders and thus leaders should be certain of the expectations that in turn create trust from the followers. Unlike autocratic leadership where major choices are made without engaging teams, democratic leaders permit teams to offer input prior to making any decision which creates better relationships, transparency and easy management (King, 2016). However, expectancy motivation theory suggests that individuals are likely to select on how to conduct themselves depending on the result they anticipate acquiring as the product of their behavior (Katzenbach & Smith, 2015). In this context, this theory is essential for the team works because it holds the notion that efforts are likely to lead to desired performance which encourages employees to focus on high production.
Leaders are supposed to have the capability to communicate what a certain role entails, how it should be accomplished and the set ambitions (Kanaga & Kossler, 2011). Simultaneously, developing and development of relationships amid the followers and organizational consumers is a major sign of an individual who is generally dedicated to their responsibilities. This normally acquires time, effort as well as psychological investment in order to sustain associations something that is particularly valued by the involved parties (Kanaga & Kossler, 2011). The built relationships are essential given that they assist in inspiring teams to be hard workers and to target beyond the set goals collaborative. By being a participant this implies that I will be focusing on a democratic system where a leader plays part in operation rather than just assigning duties. This strategy is not only performance oriented but it also helps in the building of positive teams that are characterized by honesty as well as transparency. An individual who feels individually inspired by their participation of their leaders is most likely to focus on high performance for collaborate gains (Katzenbach & Smith, 2015).
In addition, I will focus on my problem-solving qualities given that leadership is about understanding the existing issues and developing probable solutions without affecting any operation. Teamwork is about sharing ideas in order to ensure that the needs of those involved are solved (King, 2016). More so, trusted leaders are those that demonstrate truthfulness and integrity which not only creates transparency but encourages high performance. Acquiring trustworthy will ultimately increase the dedication of the team members towards the achievement of the set objects while inspiring their probable labors (King, 2016). Trust normally assist in speeding and enhancing the communication procedures given that team members are always likely to acquire more risks during the challenging sessions where issues regarding their operations and probable solutions are developed. Having confidence is an inspiration of belief and creates a positive presentation and also encourages commitment. Without commitment, it is not possible to create firm teams given that there are efforts that are needed in maintaining collaboration and encouraging focus (King, 2016).
A Critical Reflection on the Literature
Team and group are two terms that are utilized in substitution but are particularly distinct. The primary difference amid the two is that a team is a gathering of individuals who are connected by shared special interests but a group can be generated from the presence of individual’s populace in carrying out a more focused activity based on their willingness and not an obligation (Katzenbach & Smith, 2015). This is the main reason as to why there are sports related teams and not group because the members work collaboratively for a common purpose which is to win (Lencioni, 2013). On the other hand, there are organizational groups rather than teams because they are brought together by their willingness to participate. In other words, a group can best be described as individuals number that forms units for a certain reason while on the other hand a team can best be described as a gathering of focused persons that are attracted together by mutual objectives that should be accomplished (King, 2016).
The contemporary workplace is more dependent on teams because they assist mainly in collaborative success. This is because based on the complexity of operations individuals are required to operate collaboratively in order to establish issues and develop probable solutions (Lencioni, 2013). While within teams leaders serve as the major organizer leaders in any group are characterized by power as they govern and control them. Teams are more effective because they are based on democracy where decision-making is based on the member’s opinions rather than the leaders designing responsibilities (King, 2016). In other words, teamwork is particularly formal with the existence of focused objectives and goals and encourages everyone to participate to ensure that the teams are functional (Katzenbach & Smith, 2015). On the other hand despite the fact that groups are dependent on the abilities of each other they are characterized by differences given that the members have the capability to choose their focus.
Teambuilding is an essential focus for every leader because business and operations are dependent on them. In this context, it does not imply that teams are formulated and then left to develop solemnly because they require being sustained for the long run (Lencioni, 2013). Teams are not usually built by subjecting control and authority over the members but they are mainly sustained through the utilization of trust and transparency. In that, the members have to be made to trust the leaders and each other. This, therefore, means that the capability to lead as well as communicate is essential. Building operative teams necessitate the capability to listen to the raised arguments and pass their opinions without any kind of judgment (Lencioni, 2013). Effective communication is essential because it helps in building healthier relationships amid the leaders and the followers. These relationships are required in order to understand the potential as well as the abilities of each member in order to design specified goals based on the existing issues (Lencioni, 2013).
Management and leadership are essential parts of running an organization effectively because the determine performance as well as production (Robbins, Bergman, Stagg & Coulter, 2014). In that, if the management is fair this, therefore, implies that the employees are highly motivated to participate in order to accomplish common objectives. Management is all about planning, designing as well as controlling the operations of every member while creating beneficial relationships amid each of them. Team building is about efforts because it is centered on the ability to inspire as well as motivate the followers to be focused on common performance and shared objectives (Robbins, Bergman, Stagg & Coulter, 2014). The capability to lead is usually determined by the general ability to coordinate divert, set customized and focused goals and motivate employees to operate collaboratively for the achievements of these goals (Lencioni, 2013).
An Account of Ideas Application in Practice
Teams can be utilized in the work organization to increase performance, motivation, and productivity among members which in turn leads to low turnover and efficiency (Robbins, Bergman, Stagg & Coulter, 2014). Teams are a significant dynamic operative unit in collaboration to achieve efficiency in achieving the set objective. There are numerous forces that play part in the general creation of efficient, high-performing, and productive teams. From the ideas of the essay, it is apparent that teamwork can be applied among individuals within the organization for high performance and utmost production (Robbins, Bergman, Stagg & Coulter, 2014). In that, teams should be created among the right populace given that the individuals should be characterized by commonness that fuels their willingness to work collaboratively. Consistency is essential because it creates confidence and focus and any team that operates successfully with high production is not likely to suffer from turnover given that with efficiency and high accomplishment the members will acquire satisfaction which will help in creating expertise. This, therefore, implies that teamwork is all about trust, communication, commitment and focus (Robbins, Bergman, Stagg & Coulter, 2014).
On the other hand, in order to create effective teams one should focus on setting specific, measurable, real, relevant as well as time restrained goals. In that, the success of any team can best be assessed by the results that it generates in terms of accomplishment and performance (Wheelan, 2014). In that, while communicating the goals they ought to be realistic and achievable that is limited by a specified time limit. This strategy helps in inspiring individuals to participate in discussions that are mainly objected at encouraging thoughts sharing and openness (Wheelan, 2014). In any team, communication should be made priority given that it helps in creating understanding and passing ideas as well as values among the involved members. Roles should be at all times be described clearly to avoid the occurrence of conflict or confusion which would, in turn, affect productivity in general. Successful teams are only those that operate collaborate while providing support as well as help to one another particularly when it is needed. Teams can be utilized in workplace projects to create order, encourage collaboration as well instill discipline (Wheelan, 2014). In that, it is all about collaboration as well as good relationships among those that are involved.
More so, from the essay, it is apparent that workplace leaders should be able to understand the differences amid any team or groups. In that, leaders should design groups as well as teams based on the general needs of the organization (Wheelan, 2014). This means that rather than delegating duties one is supposed to focus on the creation of trust as well as confidence. Communication is stated to be the most essential aspect in creating superior teams. In that operative teams are those that the members are free to share their information as well as thoughts (Robbins, Bergman, Stagg & Coulter, 2014). In addition, the process of creating decisions should be diverse, participative as well as cooperative. This is because with control comes willingness and every individual is likely to invest more based on the anticipated results which ensure that one is likely to be more focused on the made decisions. In a more comfortable and cooperative surrounding, individuals are more likely to establish any existing issues and focus on the general process of establishing feasible solutions. Team-building, in other words, is the capability to ensure that teams acquire good performance (Robbins, Bergman, Stagg & Coulter, 2014). This means that the expectations should be well described to ensure that everyone understands their responsibility and the values that they create based on their behaviors (Wheelan, 2014).
Summary of the Reflection and Its Impact on Leadership and Management Thoughts
It is worth noting that the success of any business or projects the associations of groups and teams is necessary. While a group is made by a gathering of persons which is created from related but not objective persons, every member has personalized roles and duties despite the fact that they operate interdependently (Wheelan, 2014). In this context, a group can be formed by more than three persons as they operate collaboratively to acquire victory. A group is therefore made of the least ground level. This means that if any modifications are to be applied, they are made within the formed group (Wheelan, 2014). This is because in the formed group's individuals usually operate under smaller operating units and this means that they are all responsible for the acquired outcomes.
Teamwork is connected to the collecting operation that is accomplished by a specified individuals group. In this context, the major characteristics of a team are that it is associated with similarity of purposes and goals (King, 2016). A team is a general representation of more specific features of a group. Individuals in any given team unlike in groups normally work collaboratively in order to accomplish mutual causes. This means that a single team can be separated into several groups who are supposed to handle distinct kinds of operations in the quest of achieving broader mutual objectives (King, 2016). This is usually a single lined individuals group who are involved in the performing a specific role that has been assigned. In other words, a group can be described as a group of persons that are engaged in a similar operation particularly in reference to work or sports (King, 2016).
The topic fits into module given that it addresses issues that are required in shaping organizational behavior as well as being an effective leader. In that one has to be an effective communicator, confident, committed, and unbiased and relationship builder (Katzenbach & Smith, 2015). The module has in general transformed my thinking about leadership and management. This is because I thought that being an effective leader or manager is acquired from learning but it is apparent that effectiveness is fueled by knowledge, experience, and practice. Leading is about passion gave that it requires heavy investment in time as well as resources (Katzenbach & Smith, 2015). Leading is not the general capability to instill authority but it refers to the capability to motivate and inspire others to believe as well as to commit to achieving the stated goals (Katzenbach & Smith, 2015). Currently, I believe that leadership and management is all about skills as well the abilities to control situations. This, therefore, implies that given that teamwork is a requirement in the contemporary organizations it is essential to focus on building better associations.
In enhancing my personal managerial and leadership skills I will focus to improve my communication, conflict resolution, and problem-solving skills. This will mainly be developed by focusing building relations with others that are objected on achieving a certain purpose. This is because the capability to build relationships determines one’s capabilities to lead (King, 2016). Through these relationships, my general capability to listen and understands the individual's concerns, as well as their needs, will be improved. This, therefore, means that I will also be enhancing my problem-solving skills given that it is during practical practice that one is able to develop applicable thoughts that lead to issues being solved. In other words by operating in collaborative relationships that have set duties and anticipation my communication skills will be developed gradually for more improved relationships (Katzenbach & Smith, 2015).
Conclusion
It is apparent that despite the fact that the terms a group and team are utilized in substitute they are all different. A team can best be described as a group of persons that are brought together by mutual purposes and ambitions to achieve specified outcomes. In other words, teams are more operative than groups and they determine productivity in the modern business environment. On the other hand, a group is a gathering of individuals who are willing to commit to independent operations but every member has different purposes but is not generally guided by the same anticipation in regard to the expected outcomes. Today’s organizations invest heavily in teams because they are the major determinant of the general performance of the organizations. In that organizations are mainly guided by utmost performance and lower operation cost which therefore implies that with effective teams implies that the performance of the organization is high but in general the turnover rate lowers which means that the general production of a company is dependent on teams rather than groups. In this context, managers are required to understand the differences and focus setting quantifiable and achievable goals based on the needs of the organization.
References
Edmondson, A. C. (2012). Teaming: How organizations learn, innovate, and compete in the knowledge economy. San Francisco: Jossey-Bass.
Ghuman, K., & Aswathappa, K. (2010). Management: Concept, practice and cases. New Delhi: Tata McGraw Hill.
Gustavson, P., & Liff, S. (2014). A Team of Leaders: Empowering Every Member to Take Ownership, Demonstrate Initiative, and Deliver Results. New York: American Management Association.
Homan, A. C., Hollenbeck, J. R., Humphrey, S. E., Van Knippenberg, D., Ilgen, D. R., & Van Kleef, G. A. (2008). Facing Differences with an Open Mind: Openness to Experience, Salience of Intragroup Differences, And Performance of Diverse Work Groups. Academy Of Management Journal, 51(6), 1204-1222. doi:10.5465/AMJ.2008.35732995
Kanaga, K., & Kossler, M. E. (2011). How to Form a Team: Five Keys to High Performance. New York, NY: John Wiley & Sons.
Katzenbach, J. R., & Smith, D. K. (2015). The wisdom of teams: Creating the high-performance organization. Harvard Business.
King, D. (2016). Organizational behaviour. Place of publication not identified: Oxford Univ Press.
Lencioni, P. M. (2013). The five dysfunctions of a team: A leadership fable. San Francisco, Calif: Jossey-Bass.
Robbins, S., Bergman, R., Stagg, I., & Coulter, M. (2014). Management VS. Sydney: Pearson Education Australia.
Wheelan, S. A. (2014). Creating Effective Teams: A Guide for Members and Leaders. SAGE.
Pat Lencioni uses the following signs to identify a miserable job: anonymity, irrelevance, and immeasurement. Anonymity is the sense of being used, whereby your boss is only concerned with the work you do. Irrelevance: is not understanding how your job impacts someone else. And finally, Immeasurement: is the need employees have to measure the level of their involvement and progress for themselves (Patrick, 5).
When the above signs of a miserable job are not met, the following needs as identified by Maslow are not being met: esteem, and social belonging (Rakowski, 18). Esteem is the need to be respect, and feeling of being irrelevant affects this feeling. Social belonging is the feeling of being secure, either financially, mentally, or health wise Patrick.
Managers can help motivate employees through understanding the interests of the employees (Dina, 14). This will allow them to understand their employees’ areas of weakness, and areas of strength, hence giving the employees tasks which they can happily accomplish, and thus increasing job satisfaction.
Question: How can a manager ensure maximum cooperation from all employees in the company?
Work Cited
Dina Berta, Poorly Managed Jobs Can Lead to Indifferent Employees: Nation's Restaurant News, June 2, 2008, p. 14; Patrick Lencioni, Job Anonymity: It's a Leading Cause of Misery: Leadership Excellence, April 2008, p. 5; Patrick Lencioni, Minimizing Misery: HRMagazine, January 2008, pp. 79-81.
Rakowski, Nina. Maslow's Hierarchy of Needs Model: The Difference of the Chinese and the Western Pyramid on the Example of Purchasing Luxurious Products. Norderstedt: Grin Verla, g, 2008. Print.
Patrick Lencioni: https://www.mtdtraining.com/blog/lencionis-five-dysfunctions-of-a-team.htm
Google co-founders, Brin and Page are servant leaders, in the sense they are advocating for ways through which Google Company can help better the lives of the needy. Larry Brilliant is also a servant leader, due to the quality of work that he has shown (Yuliya, C5). Brilliant has worked with WHO, an organization whose main aim was to improve the lives of the poor, hence formulating technics which have improved all over the world, thus making him a servant leader.
The biggest of Larry Brilliant’s power is to do well for the human race, in order to better its well-being. Larry has dedicated his life to providing ways through which the lives of the poor can be improved, thus making the world a better place (Gideon, 13).
org illustrates empowerment at Google Company, through using some of its funds, to support the needy. The company does not only focus on productivity, but it also focuses on how it use its productivity to help the needy (Gideon, 13).
Question: What impact has google.org made in eradicating poverty in developing countries?
Reference
Yuliya, Chernova, Brightsource Gets New Funding: Wall Street Journal, May 15, 2008, p. C5;
Gideon, Rachman, America's Optimism Can Benefit All: Financial Times, February 5, 2008, p. 13;
According to Syed & Kramar (2017), the primary reason for implementing processes in a work environment revolves around the need to scale up operations while improving the efficiency of both existing employees and also the hiring of new employees. However, processes are prone to distracting the normal progress of operations in any work environment by manipulating reluctant job behaviors towards performance in employees. For instance, a performance management system (PMS) is a fundamental human resource unit in a work environment. It controls the decision-making procedures whereas a PMS establishes individual effectiveness towards organizational performance. An appropriate PMS has capabilities for enhancing activity progress in any work setting (Syed & Kramar, 2017).
In opposition, there are a variety of issues that mount up from a weak performance management system and continuance of encompassed implications may in due course deter proper functioning (Samsonowa, 2011). . Significantly, poor implementation of a PMS bequeaths partial accomplishment of its core rationale and, in particular, it devalues the essence of evaluating employee performances. A poor PMS commonly leads to uneven decision making in regards to different aspects that impact performance management including rewarding, payment variability, salary increment and promotion among the employees (Samsonowa, 2011). A PMS that is accomplished poorly has close influence on employees since it negatively impacts their behaviors and job performance.
Leaders play an important role of ensuring that organizational goals are accomplished effectively through the improvement of performance management system. Importantly, the implementation stage determines the efficiency of a PMS towards performance in all work environments (Tapamoy, 2008). It is logical that a properly implemented PMS bears an organization improved performance whereas a PMS that is poorly implemented strongly worsens worker performance thus reducing outcomes in an organization. As a result, a better leader should make certain that organizational goals are proportionally compatible with the outputs that every worker is expected to accomplish. The proportionality between organizational goals and worker productivity is a vital measure during PMS implementation considering that the commonly accepted purpose of a PMS is to evaluate the compatibility of employee capability in relation to the achievement of organizational objectives. Hence, it would be necessary to highly invest on observation and assessment techniques to ensure the proliferation of a productive workforce (International Society for Performance Improvement, 2010).
Transforming a PMS requires adequate capital including financial investment and time. The key purpose for substantial investment is to stimulate employee capability by guaranteeing job satisfaction. Job satisfaction values self-esteem in different orientations hence the need to capitalize on aspects that meets employee expectations (Samsonowa, 2011). Moreover, adequate investment is the key to proper utilization of human resources. For instance, capital adequacy enables the deployment of right number workforce which eliminates chances for issues such as work overload, inequality while standardizing operational progress. Therefore, improving human resource factors has significant benefits that mostly favor performance in an organization. It is true that Standard procedures often induce productivity, increase employee outputs and in due course improving organizational performance.
Planning
The main theme of remodeling performance management system includes the development a proactive system that will allow effective control of employee performance in accordance with organizational goals. Therefore, the first stage will involve the setting of attainable goals to motivate employees for their accomplishment. For motivation purposes, employee participation will be included in the decision-making process. Accomplishment of goal setting will lead to the encouraging stage, which underlines the need for providing employees a suitable working environment that supports their efforts to proper completion of allocated job. The stage will entail various managerial practices including employee training and establishment of effective communication channels for productivity (Rahim, Golembiewski & Mackenzie, 2002). Rewarding is the final stage and so, rewarding will be put in action after job completion. Rewarding is essential in imposing job satisfaction among the workers while building commitment in the entire organization. Different but fair appraisal systems will be used to develop appropriate recognition procedures on aspects of, for example, promotions and salary increment in accordance with the variability of job performance (White & Druker, 2004).
References
International Society for Performance Improvement. (2010). Handbook of improving performance in the workplace. San Francisco: Pfeiffer.
Rahim, M. A., Golembiewski, R. T., & Mackenzie, K. D. (2002). Current topics in management: Vol. 7. New Brunswick, N.J: Transaction.
Samsonowa, T. (2011). Industrial Research Performance Management: Key Performance Indicators in the ICT Industry. Heidelberg, Neckar: Physica-Verlag.
Syed, J., & Kramar, R. (2017). Human Resource Management: A Global and Critical Perspective.
Tapamoy, D. (2008). Performance appraisal and management: Concepts, antecedents and implications.
White, G. & Druker, J. (2004). Reward Management: A Critical Text. Routledge
The Competing Value Framework: Hierarchical Culture in the Food Industry
Introduction
The competing Value Framework (CVF) today, is the most utilized based on its undeniable significance in regard to organizational culture (Cameron & Quinn, 2011). It is universally known that the culture of an organization plays a crucial role in ensuring the success of a company. It is, therefore, significant to establish the organization’s effectiveness given that effectiveness and culture are categorized as the most significant matters in reference to organizational growth which plays part in improving the organizational surrounding. Organizational effectiveness is crucial for enhancing the general performance of the staff in every organization (Cameron, 2006). The viability of the framework is essential because it helps in understanding issues surrounding marketing operations and additionally serves in the effective integration of all marketing operations. The CVF outline is useful in serving as an objective guide for the company’s strategic options and promotes generation as well as sharing of ideas (Cameron & Quinn, 2011). Achieving organizational effectiveness is quite challenging and therefore, an effective and objective culture must be applied. This paper will seek to explore how organizational culture lead to organizational effectiveness. The selected industry is the fast food sector and the suitable culture is the hierarchical culture.
In operating an efficacious fast food organization, it is important to apply an organizational structure that holds a vibrant hierarchy. This is because the fast food sector is characterized by notorious great turnover rates, particularly among vanguard workers (Cameron, 2006). The best strategy that can ensure high productivity and performance is to ensure that the staffs are highly devoted to single tasks in every process sector. Every company’s culture is distinct given that every culture is characterized by customized features that suit the set goals and operations. In addition to the organizational structure, internal as well as external forces are significant in determining effectiveness (Cameron, 2006). It is the organization that culture is created. Culture is considered to be a crucial force in driving staffs performance. In that culture can best be described as the sense of feeling that the company creates rather than any touchable value. CVF is utilized to demonstrate the manner in which the company functions, how workers team and all that is valued by the company (Cameron & Quinn, 2011).
The competing values within the organization which includes diversity, control, constancy, suppleness, integration, an inner and external focus should at all times be balanced to create positivity. According to Cameron & Quinn (2011), CVF principle states that flexible companies are more effective as compared to rigid companies on the ground that the best companies have the capability to managing the existing competition amid different cultures while simultaneously activating all the needed values (Cameron, 2006). Based on the need for uniformity and steadiness in services and products in the fast food industry the organization should focus on the hierarchical culture. The clan is an organizational culture that is based on teamwork. In that, the members have several unities and perceive themselves to be a major part of a single family. In this culture, leadership is more of guidance and the organization is operated by the utilization of customs as well as commitments. Values in this structure are mainly driven by communication and collaboration. In order for the organization to create a positive brand, it is required to focus mainly on creating good relations with workers, clients, merchants as well as stockholders (Cameron, 2006).
On the other hand, Adhocracy Culture is mainly grounded on innovation and energy. Within such organizations leaders encourages the workers to grab risks while it is those that lead that is perceived as modernizers (Dhar & ISTD, 2009). In this context, the organization mainly sticks together in order to conduct trials while asserting on individuality and operation liberty. The primary values in this culture are mainly fueled by agility as well as transformation. Market culture is the competitive structure that is focused on achieving tangible results. The culture is goal objected while the leaders are severe and authoritative (Dhar & ISTD, 2009). Organizations under this culture are mainly driven by the necessity to achieve similar objectives in order to acquire success and outweigh all the competitors. The culture is mainly driven by enormous market share and increased revenues as the primary values. It is therefore apparent that all this culture expect hierarchically are more objected on the external forces such as competition, revenue, and consumers rather than controlling employees behaviors in order to impact productivity (Dhar & ISTD, 2009).
Hierarchical culture is grounded on achieving control as well as culture in order to create efficiencies. The working surrounding is usually formal that is guided by authoritative institutional processes in order to offer directions. In this culture, leadership is grounded on organized monitoring and organization while the culture normally asserts expectedness and efficiency. The culture’s values are steadiness and uniformity. The culture is the most suitable for the fast food organization based on the extensive administrative structure that is involved. The company should, therefore, focus on shaping behavior in order to increase productivity and productivity because describing culture is quite challenging given that it is the integration of individuals shared perceptions, expectations, principles as well as behaviors. The hierarchy culture involves ensuring that the company is involved in doing all the right necessities. The culture is mainly concerned with efficiency, steadiness, and expectedness. These are essential values that result in growth as well as stability particularly in the fast food sector which is characterized by intense competition from the well-established organizations such as McDonald's. Things within the culture are conducted via making suitable processes, principles authority as well as control over activities.
Hierarchical culture is ideal for the fast food organization given that the industry is characterized by products uniformity and the employees are likely to lack high experience in the operation given that the company is a startup that is seeking to lower its operating expenses in order to maximize profits (Dhar & ISTD, 2009). Adhocracy culture is most suitable for organizations that focus on customized products that necessitate innovation. This culture focuses on conducting production activity first which might lead to losses in the food industry. Focusing on the market culture would work to ensure that the organization works particular fast in order to generate high profit via competition (Dhar & ISTD, 2009). However, the fast food sector necessitates organized behaviors and production given that the needs of the consumers are particularly high and products and services should be characterized by quality rather than speed.
Hierarchical culture is therefore essential given that it is characterized by utmost controlling degree as well as the inner focus (Gerybadze, 2010). The involved processes and guidelines under the culture are utilized to determine the behaviors of the employees and are mainly oriented on managing controls. This, therefore, results in the generation of well-organized working procedures thus creating ease of working given that every operation is well managed and easy to adjust to any given changes. It is essential for an organization to operate effortlessly and the only way that the organization can be stabilized is through the application of formal regulations and guidelines (Gerybadze, 2010). In that stability and positive outcomes are linked with smooth and efficient tasks executions. Success is normally created via the application of dependable supply with fixed schedules and low operating expenses. Organization regardless of their size necessitates having a suitable culture to guide its operations in the quest of meeting the goals of the organization. One of the most suitable strategy via which the issue can be resolved is through the utilization of hierarchical culture (Gerybadze, 2010). The fast food organizations both large and small are necessitated to manage different tasks diversities that range from workers, promotion, procuring, managing and accounting activities. In other words, hierarchical culture is beneficial because it results in specialization. In that, the company can organize groups based on their tasks which is likely to create convenience given that every worker clearly understands their roles thus eliminating confusion and creating high morale which will, in turn, result in high productivity (Gerybadze, 2010).
Hierarchical culture seeks to ensure that there are adequate organization and stability within the company in order for effectiveness to be achieved. Within the organization, it is not probable to disarrange authority and responsibilities (Kirkebæk, Du, & Aarup, 2013). This is because all the involved workers are well informed about their exact responsibilities and they are also specialized in their specific duties. There is a strict regulation of both the inner and external processes and operations which are set and mostly communicated through written documents, therefore, creating zero chances for wrong understanding (Kirkebæk, Du, & Aarup, 2013). Most essentially, under this organization culture, objectives are described clearly that works well for most businesses. In addition to effective objectives, communications operations and services are delivered timely which leads to high production and positive performance.
Hierarchy culture creates an environment where procedures and rules are the most essential. The advantage of the culture is that it creates a balance amid stability and flexibility which are the major values that determine effectiveness (Gerybadze, 2010). In addition, it results in the generation of higher results given that the operation is completed within the set limit. However, despite the fact that based on the high assertion of authority the occurrence of issues requires more time to be resolved, it is effective in controlling behaviors and encouraging ethics. Hierarchical culture leads to the establishment of more concise communication channels. Employees are under the supervision of the department manager who is responsible for providing them with the set policies and tasks (Gerybadze, 2010). In this context, communication is accurate and one that encourages sharing of thoughts and concerns are given that the report line is direct and encourages collaboration among those under the same specialization. This culture makes it even easier for planning as well as applying strategies that seek to develop business (Kirkebæk, Du, & Aarup, 2013).
More so, it creates a clear command chain. This is because in this culture the involved persons clearly understand to whom they should report to. This implies that the communication is supported by obvious and organized channels which allow interaction among those in authority and the subordinates (Kirkebæk, Du, & Aarup, 2013). This helps in management since it is easier to understand those that perform their responsibilities while than others. Having a reliable command authority helps in distinguishing responsibilities and ensuring that everyone participates towards the development of the organization. Fast food structures mainly rely on the culture’s division, authority and responsibilities distinction in order to create efficiency while enhancing discipline (Styron, & Styron, 2017). This culture creates better strategies for advancing careers. In that today most individuals are focused on career advancement for higher earning and opportunities. Hierarchal culture offers clear and easy channels that individuals can adopt in order to advance their careers through focusing on the specialization that results in skills development and higher experiences (Styron, & Styron, 2017). In that, it leads to reduced turnover rate because one is not required to move from an organization to another in order to be promoted given that the culture creates more internal opportunities for the employees.
The fast-food sector is today, characterized by high staff turnover rate because of the need to advance and specialize in certain tasks. Hierarchical culture is essential in lowering the rate of turnover by encouraging staff to focus on their specialties and interests (Styron, & Styron, 2017). Turnover is not just disadvantageous because it results in lower production but it is particularly expensive for the organization because more efforts and finances are utilized in hiring and training new staffs. The culture creates an environment that encourages collaborative working which contributes to efficiency given that every employee is focused on achieving the company’s goals while seeking to develop their abilities (Styron, & Styron, 2017). The structure is the only channel through which efficiency can be generated and the operations cost lowered. Human resource is an essential business part and should, therefore, be maintained and developed at all times. In other words, the organization should focus on Hierarchical culture gave that it is mainly focused on creating a balance amid flexibility and stability. In order for effectiveness to be achieved it is essential for the organization to focus on creating steadiness which cannot be achieved without a suitable culture (Gerybadze, 2010). The system eliminates communication barriers because the set guidelines and regulations are standards and they are only objected at creating discipline. Encouraging ethical conducts encourages high performance and quality which in turn plays part in the creation of a better culture that encourages sharing and uniformity which is required in the food industry in the quest of achieving competitive positions (Gerybadze, 2010).
Conclusion
It is apparent that CVF is most suitable in achieving organizational effectiveness via the designed culture. This can, therefore, be utilized as a strategic tool in order to create management and supervision initiatives. Further, it is most appropriate in designing desired cultures. The fast-food sector is characterized by products and services uniformity and therefore hierarchical culture would be the specific one that the organization should focus on in order to generate efficiency and overcome competition. The main objective of the culture is to create control and steadiness while focusing on creating high production through specialization. Unlike most industries, there is a need to be differentiated in the fast food industry in order to accommodate consumer’s diversity and choices. The culture can, therefore, be applied in the quest of making differentiated commodities that differ from those of the competitors. In other words, performance and productivity will be enhanced through controlling behaviors, convenience and encouraging the adherence of principles.
References
Cameron, K. S. (2006). Competing values leadership: Creating value in organizations. Cheltenham, UK: E. Elgar Pub.
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework, Revised Edition. New York, NY: John Wiley & Sons.
Dhar, S., & Indian Society for Training & Development. (2009). Value based management for organizational excellence. New Delhi: Indian Society for Training & Development.
Gerybadze, A. (2010). Innovation and international corporate growth. Heidelberg: Springer.
Kirkebæk, M., Du, X., & Aarup, J. A. (2013). Teaching and learning culture: Negotiating the context. SensePublishers.
Styron, R. A., & In Styron, J. L. (2017). Comprehensive problem-solving and skill development for next-generation leaders. Hershey.
Comprehensive Analysis of Apple Inc’s Operations Management
Operations management refers to the process of managing and administrating business practices such as decision making and coordinating resources to maximize profits in an organization. Creating the high-leveled efficiency in the production and manufacture of goods is the sole purpose of operations management. Most successful especially the high-technology companies rely heavily upon operations management tools to meet the hi-tech demands of the world markets. They use technology to hasten the working pace of the employees, customer transactions and asset maintenance among other routine business operations. This analysis has narrowed its focus to the Apple Inc. which is indisputably the world’s most successful technological company. Operations management at Apple Inc involves 10 main decisions that guarantee a smooth running of business operations in all aspects. Through careful and deliberate implementation of these decisions, Apple has proven to be successful in coordinating operations with thin its chain of supply including product design and growth, marketing and sales (Lashinsky, 2012). A well-structured operations management strategy holds the greatest secret of Apple’s success in terms of efficiency, innovation, maintenance of the customer base, competition and profit margins. This paper will provide a comprehensive analysis of the operations management practices such as quality management, design of goods and services, layout design, Value chain management and marketing position among other areas of decisions in the operations management of Apple.
The first area of decision in the Apple’s operations management is the design of goods and services. The company is widely for its innovative capacity in developing hardware, software as well as other associated digital services. Instead of focusing on a single dimension, Apple has excelled in continuous product development in hardware, software and supplementary services. Some of the apple products include desktops, laptops, IPOD, ILIFE, IPAD, ITUNES, MAC BOOK PRO, IPHONE AND MAC BOOK among many others (Lashinsky, 2012). Each product’s design has to go through several official components for verification and quality assurance. For instance, the design of Mac has to be approved by Mac software and hardware engineers. It is also important to note that the Apple’s wide range of products forms a broad customer base hence making it possible to have a steady supply of goods and services (Boyer &Verma, 2010).
Value chain management refers to a range of activities that a company does right from the purchase of raw materials until the product reaches the end user. Value is gradually added to a product as goes through manufacturing until the marketing process (Cousins, Lawson & Squire, 2006). Apple has a very large and sophisticated supply chain of more than 200 product and service suppliers majorly located in China, Japan and Asia. To maintain the highest quality standards, the company has set very high procurement standards for the suppliers. Apple Inc. is known for its consistent emphasis on high quality standards in all areas whether in production, HR management, sales or in marketing (Boyer &Verma, 2010). VP managers for Operations are required to ensure compliance to the quality standards that have been set by the company. Apple products are manufactured in different nations. During the manufacturing process, the company tries to reduce labor costs, reduce the use of toxic substances, and recycle materials all of which help in managing the costs (Mahadevan, 2010). Apple has established a wide distribution channel that gets improved daily to suit the ever changing markets. In sales and marketing, Apple has gained roots in retail and online markets through advertising in social and mass media. The company also provides excellent after-sales support to its customers. This includes a one-year warranty, experts calls for assistance and product repairs. Basically, Apple’s large value chain gives it a high bargaining power, reduces labor costs, facilitates recycling, and minimizes wastage of resources (Cousins, Lawson & Squire, 2006).
Marketing position can be described as the place a brand has in the mind of the customer as compared to the competitors’ brands. It can also be looked at as how distinguished a given product is from similar products from the competitors. Apple Inc has been enjoying a very unique market position that works from the reverse. Instead of investigating and working upon customer needs, Apple creates needs by innovatively offering feature rich products. In other words, the company produces products that are not yet needed by customers (Latif, Jaskani, Ilyas, Babar & Gulzar, 2014). Apparently, the product has no use at first sight. This implies that Apple makes big and risky bets on production technologies very early even before competition awakes. the uniqueness of Apple’s positioning strategy is that much of its designs and developments are out of the customer’s sight. All developments of custom solutions are internal but holds a crucial role in determining the company’s success.
The unique marketing position goes hand in hand with forecast and planning operations. The company goes ahead to imagine the would-be customer needs, sales levels, risks and solutions to the scheduled operations. Forecast is the key driver of advance planning in Apple. It is able to foresee the market potential using two approaches: the top-down and bottom-up forecast (Mahadevan, 2010). Top-down forecast involves assessing the market holistically such as sales trends and market size. Bottom-up forecast involves the analysis of the factors of production such as the potential of the employees, production capacity and specific expenses. Properly combined, Apple has always been able to accurately predict fluctuations in revenue, budgeting and cash flow issues (Abraham, 2014). To facilitate finance management and planning, the company’s senior management obligates operations managers to prepare periodic budget reports. At every stitch, they are also required to collect basic information regarding growth of the profit margins, sales and costs (Boyer &Verma, 2010). These help them to come up with a business forecast necessary in decision making and the overall plan process.
The operation management of Apple often evaluates and monitors the company’s productivity by assessing areas such as quality standards, company’s global size and different benchmarks. This is done using a number of criteria. First, productivity for every Apple store is measured by Revenue per Square Foot and the effectiveness of the supply chain is measured by Product Units per Time. The other criterion is Milestone per Time which is the productivity measure of the human resource during a product development phase (Abraham, 2014).
Inventory management is basically the administration of stock items and non-capitalized assets. The Apple Company has had a consistent level of efficiency in inventory management for many years. In fact, it only took an average of 5.3 days to make an inventory move which is considerably shorter than what other high tech companies take. Apple uses diverse inventory management methods such as first in, first out (FIFO) and serialized methods to ensure effectiveness in keeping track of the company’s assets (NicolásMarínXiménez & Sanz, 2014). The FIFO method ensures that units that are old-modeled are quenched before the new ones are released. Unlike companies like HP and Dell, Apple Inc. has a high inventory turnover and this gives it a competitive advantage for new products.
Operational functions are units that define particular roles and activities within an organization. In Apple, operational functions majorly entail communication services and facilitation of product distribution. Operations managers are in charge of these units in which they are assigned a number of basic roles. First, they are required to abide and practice management principles that ensure highest level of honesty and ethics (Boyer &Verma, 2010). This promotes a smooth running of business operations as the company’s value is maintained. The operations managers are also tasked to make and implement policies perhaps concerning the expected level of performance among the employees, customer satisfaction safety regulations and employee retention among other areas. Policy making is expected to conform with the company’s mission statements and goals (NicolásMarínXiménez & Sanz, 2014). The main objectives include attaining a low cost of production, to reduce the amount of time taken between customer order and delivery, maintaining high quality services and products and to develop an exceptional ability of meeting the customer’s needs. In times of an organizational crisis, operations managers are looked upon to exercise their problem-solving competences. Apple operations managers are expected to be quick and rationalized when making crucial decisions when an impending problem reckons (Latif, Jaskani, Ilyas, Babar & Gulzar, 2014). All day-to-day operations are collectively merged to achieve the company’s objectives and goals.
The other area of operations management is human resources and job design. HR and job design strategies in Apple are changing gradually as the trending HR needs change. Conversely, the strategies are grounded upon Steve Job’s highlights on excellence (Boyer &Verma, 2010). Under Tim Cook’s governance, the labor force the manufacturing plants has diverse levels of skills, stability motivation and experience. For instance, workers in the China unit at Foxconn have literacy competence but lack adequate technical skills in most industrial operations. On the other hand, workers in the US manufacturing plant are well acquainted with experience and technical skills. Labor costs within the United States is very high which amounts to $15 per hour compared to $2.5 in Foxconn (NicolásMarínXiménez & Sanz, 2014). For Apple to reduce the overall cost of production, it has opted to manufacture products outside America.
Customer service strategies in any organization serves an important role of keeping its image blameless hence being considered to be a social responsibility (Mahadevan, 2010). To adjust to the changing market needs and customer preferences, Apple has applied a number of strategies most of which try to match both customers and firm’s perception. Some of the business operations regarding customer service include staying online, staff empowerment and prioritizing service delivery to the customers. Apple’s target is to get hold of the high-end customers. In order to meet the demand of these customers, it has established separate channels of retail particularly for iPhone (Latif, Jaskani, Ilyas, Babar & Gulzar, 2014). As a result, it has increased the coverage, reach and distribution network of iPhone. This single-product strategy is the reason behind Apple’s high scale advantage as opposed to the multi-product strategy that is practiced by competitors such as Nokia.
The other operational management decision within Apple Inc. is process analysis and maintenance. For a company works hard to be at the front position of cutting edge technology, process analysis that supports an environment for improvement must be invested upon (Mahadevan, 2010). Apple has dedicated IT teams that ensure IT servers and assets are working efficiently. Intensive and extensive research is continually done by the firm’s maintenance teams which work to solve periodic system failures, macroeconomic factors and business relationships and improve quality of the products. Through a well-structured process analysis, the company has brought forth discoveries of innovative technologies which puts it ahead of its competitors. The company’s HR ensures that maintenance personnel have the adequate capacity to keep up high performance.
Layout design and strategy is the other operational management practice that emphasizes on the customer’s expectation. Customers have high expectations and what they see may impress the customer to carry a positive or negative perception about the company (Abraham, 2014). Layout design is meant to ensure maximum utilization of equipment and space. Apple store are designed in a way that maximizes the focus on the products. They are spacious and have minimal decorations. They have a cellular arrangement that improves quality and flexibility, less inventory and less handling. Closely related is location strategy is the other management practice that should be examined carefully by the operational managers of a company. Location strategy for Apple is very selective for the purpose of maximizing the brand exposure and foot traffic. The main store is located in Silicon Valley, a place where most industries in the united states are located. Currently, the company has at least 450 stores found in 16 countries which are commonly located in urban areas (Abraham, 2014). However, Apple limits the authorization of sellers and suppliers. The selective location strategy has lead Apple to be the most profitable company in terms of revenue per square foot.
In conclusion, Apple Inc. is a good example companies that have succeeded after using operations management tools as observed in the discussion. Some of the operations management practices include quality management and controls, customer service, measuring the company’s productivity and design of goods and services. Location selection and layout design are also considered by Apple because of their capacity to influence the customer’s expectations and perceptions. The value of supply chain is also given special attention by the company by incorporating 200 suppliers of raw material from all over the world. The global scope of Apple has made it easy to deal with common political economic and social variations and hence contributing greatly to its success. As discussed, Apple has a unique marketing position that is beyond the customers current needs. it also uses different inventory management methods most of which are effective in selling old-modelled products. Apple has so far won the competitive edge in terms of marginal profit, invention capacity, inventory management and quality standards. Operations management is therefore the cornerstone of business success.
References
NicolásMarínXiménez, J., & J. Sanz, L. (2014). Financial decision-making in a high-growth company: the case of Apple incorporated. Management Decision,52(9), 1591-1610.
Lashinsky, A. (2012). Inside Apple: How America's most admired-and secretive-company really works. New York: Business Plus.
Abraham, M. (2014).Five Leadership skills that made Steve Jobs transform Apple.
Cousins, P. D., Lawson, B., & Squire, B. (2006). Supply chain management theory and practice: The emergence of an academic discipline?. Bradford, England: Emerald Group Pub.
Boyer, K. K., &Verma, R. (2010). Operations &Supply chain management for the 21st century. Mason, Ohio: South-Western/Cengage Learning.
Latif, M., Jaskani, J. H., Ilyas, T., Babar, Z. K., &Gulzar, H. (2014). Issues faced by Apple Inc in smart phones industry. International Journal of Accounting and Financial Reporting, 4(2), Pages-50.
Mahadevan, B. (2010). Operations management: Theory and practice. Upper Saddle River: Pearson.
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