Managers from the US have a different approach to work when compared to those in Europe and other parts of the globe. American managers are getting exposed to diverse languages and cultures as a result of globalization. This requires them to be familiar with the attitudes and cultures of other people in countries that they work in.
Americans are thought of as ignorant, materialistic and difficult to deal with by many Europeans. However, Europeans admire the business acumen of Americans which has made American companies to consistently perform well. American firms post impressive financial outcomes yet American nationals have little knowledge about what happens in other countries in the world (Hymowitz, 2000, p.B1).
US managers, therefore, need to change these perceptions for them to succeed in foreign countries. American managers need to acquire skills on how to work in a multicultural environment. They need to improve on their knowledge of foreign languages, cultures, and attitudes.
The US has an informal approach to work relationships between managers and their subordinates. Hymowitz (2000) points out that European work culture is more formal and this can be challenging to an American working under European managers (p. B1). American managers need to improve on their knowledge of history and culture of countries they are posted to.
This will help them have a better approach to work and thereby achieve good results at the workplace. The European approach to working is based on long term results compared to the American approach which is mainly motivated by monthly or quarterly performance outcomes. American managers need to acclimatize to this fact for them to have realistic expectations in a European work environment.
American managers working in the Netherlands need to be aware of the relaxed approach to work that exists there. The communication approaches that are to be used by American managers while working in the Netherlands are different from those they are accustomed to. Dutch business culture allows for managers to be easy to approach by employees because there are fewer restrictions (Koopman, Hartog & Konrad, 1999, p. 507). Workers in the country go for longer lunch breaks than employees in the US. An American working in the Netherlands for the first time needs to understand the differences in a work culture that he is going to face.
Managers are more involved with what their employees are doing in the Netherlands compared to the US. American managers need to be in touch with their employees which can help them make better decisions.
Koopman, Hartog, and Konrad (1999) reveal that the Dutch organizational environment is mainly influenced by people’s values from their cultural backgrounds (p. 510). The experiences that Dutch workers have from their education and family life have a big influence on their personality and work ethic. Dutch employees value work assignments that contribute to progress in society. Individual competitiveness is less favored compared to the US.
The management style that is adopted by American managers needs to value the attachment Dutch nationals have to the past. They are less adventurous when making critical decisions and if an idea has not been tried before, they are less inclined to go for it (Ybema & Byun, 2009, p. 344). American managers should not bring radical changes to the work environment when working with Dutch employees. They need to evaluate the reactions of their junior employees towards policy changes that affect the running of the organization.
References
Hymowitz, C. (2000, August 15). In the lead: Companies go global, but many managers just don’t travel well. Wall Street Journal.
Koopman, P.L., Hartog, D.N.D., & Konrad, E. (1999). National culture and leadership profiles in Europe: Some results from the globe study. European Journal of Work and Organizational Psychology, 8 (4), 503-520.
Ybema, S. & Byun, H. (2009). Cultivating culture differences in asymmetric power relations. Cross Culture Management, 9(3), 339-358.
Three research questions would be used to derive the three hypotheses for this study. The first research question would require the determination of whether the level of payoff from Information Technology is linked to management styles in the corporations. The second research question would be to determine the effects of the level of Information Technology adoption to the performance levels in terms of payoffs.
The third research question in this study would be to determine the impacts of adoption of electronic marketing on the market value of commodities.
Hypotheses
Hypothesis 1
H1: The level of payoff from Information Technology is linked to the management styles in the corporations.
H0: The level of payoff from Information Technology is not linked to the management styles in the corporations.
Hypothesis 2
H1: The level of adoption of Information Technology determines the performance levels in corporations in terms of payoffs.
H0: The level of adoption of Information Technology does not determine the performance levels in corporations in terms of payoffs.
Hypothesis 3
H1: The adoption of an electronic market has an impact on the market value of commodities.
H1: The adoption of an electronic market does not have an impact on the market value of commodities.
Definition of the dependent and independent variables
The first hypothesis requires the determination of whether the level of payoff from Information Technology is linked to management styles in the corporations. The independent variable in this hypothesis is the management style in the corporation. This is because the researcher will vary this variable.
The researcher will look at the different types of management styles in the different corporation to determine its effects on the level of payoff from information technology. Therefore, the dependent variable would be the level of payoff to the corporations from information technology. The independent variable in this case is the presumed cause of the scenario while the dependent variable is the presumed effect of that cause.
The second hypothesis would be to determine the effects of the level of Information Technology adoption to the performance levels in terms of payoffs. In this hypothesis, the independent variable is the level of information technology adoption in the different corporations. This variable is controlled or manipulated by the experimenter.
The different levels of information technology adoptions will be assessed to determine its effects on the performance of the corporations in terms of the payoff from IT. The dependent variable would then be the performance levels in the firms. This would be determined by looking at the payoffs received from Information Technology. This variable is observed or measured for variation and is assumed that the it is as a result of the variation of the independent variable.
The third hypothesis in this study would be to determine the impacts of adoption of electronic marketing on the market value of commodities. In this hypothesis, the independent hypothesis is the adoption of the electronic market in the corporations. This variable is independent in that it is not dependent on another variable. It is the presumed cause of the effects on the market value of commodities. The dependent variable, on the other hand, is the market value of the commodities. The market value is expected to vary with the situations. It is the presumed effect of the adoption of the electronic market especially where it was not present previously.
Expected relationship between the variables
For the first hypothesis, the expected relationship between the two variables is negative one. The management styles in the corporations may vary but this may not necessarily affect the level of payoff from Information Technology. This is because management styles may not necessarily dictate the management practices in the corporation. Previous studies by Tallon, Kraemer and Gurbaxani (2001) determined the relationship between the management practices and the level of pay off and their results suggested that there was a positive relationship. In this study, the management styles will be studied and the assumption would be that the management styles are not the same as the management practices in the corporations.
The variables in the second hypothesis are likely to yield a positive relationship because the level of information technology adoption may determine the level of performance in terms of payoffs in the organization. The benefits of Information technology to corporations has been studies and it has been determined that it profits the companies if well adopted and in the corporate market, it has been used to improve the effectiveness of their transactions (Loh & Venkatraman, 1992). Other similar studies have also concluded that IT can be used successfully to trade items online (Clarke & Jenkins, 1993).
The variables in the third hypothesis are expected to yield a positive relationship. The introduction of an electronic market into the marketing world is expected to influence the market value or price of the commodities. This is because the electronic market has enabled commodities to be sold easily through the internet. This poses a threat to many companies who have not adopted this technology and this might force them to reduce their prices in order to avoid the steep competition. Since the commodities are also sold much easily and the costs incurred by the trader are reduced, there is likelihood that the traders might cut off the price. However, this is subject to research.
Nature of relationships
The two variables in the first hypothesis are likely to yield a negative relationship and therefore, there may not be either a correlation or a causality relationship. The management styles used in the corporations may not have an effect on the level of payoff from information technology.
The nature of the relationship between the two variables in the second hypothesis is likely to be a correlation. The level of information technology adoption is correlated to the level of performance in terms of payoffs in the organization. The value of the independent variable may vary with the value of the dependent variable hence correlated. The correlation that caused the mutual association may be because of some underlying factors. Therefore, factor analysis might need to be performed to identify the set of underlying factors that would explain the relationships between the correlated variables.
The relationship between the two variables in the third hypothesis is a causality relationship. The effect of the introduction of an electronic market into the marketing world might cause a direct effect on the market value or price of the commodities. The direct factor that causes an effect directly and without the intervention of other underlying factors is what is referred to as causality. The two variables, the independent and the dependent variables, form a causal nexus.
Conceptual framework
Significance of the study to academic literature
The study conducted on these hypotheses would be significant because firstly, it would offer information to the corporate institutions and would be important in the corporate decision making processes. This study would also bridge the gaps that were left by other researchers as they performed other related studies.
Tallon, Kraemer and Gurbaxani (2001) studied the effects of management practices on the level of payoff. They also determined whether the goals of the company help in the achievement of greater payoffs. However, they did not look at the effects that the type of management had on the level of payoff. This study will look at the different types of management adopted in the organizations and determine whether there is a significant difference in the levels of payoffs due to the different types of management styles.
The second hypothesis would also be important to determine whether the level of information technology adoption may determine the level of performance in terms of payoffs in the organization. Lee and Clark (1996) performed a study to determine the barriers that hinder the full adoption of the electronic market system and assessed the resistance and the financial risks of adoption. However, they did not the level of information technology adoption may determine the level of performance of the organization. They failed to determine the level of payoffs from the adoption.
The study would also be significant since it would address the effects of the introduction of an electronic market into the marketing world in terms of altering the market value or price of the commodities. This would also extend on the work done by Neo (1992).
References
Clarke, R., & Jenkins, M. (1993). The strategic intent of on-line trading systems: A case study in national livestock marketing. Journal of strategic Information System, 2(1), 57-76.
Lee, H., & Clark, T. (1996). Impact of electronic marketplace on transaction cost and market structure. International Journal of Electronic Commerce, 1(1), 127-149.
Loh, L., & Venkatraman, N. (1992). Determinants of Information Technology Outsourcing: A cross-sectional Analysis. Journal of Management Information Systems, 9(1), 7-24.
Neo, B. (1992). The implementation of an electronic market for pig trading in Singapore. Journal of Strategic Information Systems, 1(5), 278-288.
Tallon, P., Kraemer, K., & Gurbaxani, V. (2000). Executives’ perspective of the business value of information technology: A process-oriented approach. Journal of Management Information Systems, 16(4), 102-105.
Managers in an organization can be universally categorized using two theories, X and Y. Each class displays different qualities in their supervisory techniques and the way they relate with their workers. Managers who are oriented with conjecture X describe the job in detail, do not often involve employees in setting targets and objectives for the association, coerce workers to work hard, and do not hesitate to chastise those who fail to meet the organization’s intention. They emphasize a stringent job ethic with no room for mistakes thus making the work being done to be exceedingly cyclical and uninteresting. Theory Y describes managers who allow their staff to employ ingenuity and opinion in decision making. Mistakes committed by the staff are not punished, but this is rather seen as a channel for strengthening (Zastrow 264).
Comparison of the management styles
The organization styles of the two supervisors in the survey have many differences even though they share some comparable qualities. Supervisor 1 believes that the workforce enjoys their working conditions thus they do not require commands to do work appropriately. Involving the employees in decision making is necessary for giving them the confidence they desire to achieve superior success in their careers. If the employees are allowed to work in their way by coming up with innovative solutions for decisions, they will do the job much better than if they are given strict manuals to follow (Zastrow 264). While she does not agree to give employees access to information that is secret, the supervisor informs the organization’s workforce on essential information that they will need in their job. The employees are trusted to be self-motivated, and will still do their work perfectly even when a supervisor is not around to oversee their routine. Hard work is part of the organization’s way of life and the vision and undertaking of the company guide them to strive for the top. The group members are seen as part of the decision-making process by helping the supervisor perform some responsibilities. The supervisor assumes that the workforce has received adequate preparation and thus they possess the capability to contribute their significant thinking to solving problems in the group (Miller 41). Supervisor 1 believes that while all jobs are challenging, the employees have the competence to handle the tasks.
Compared to 1, supervisor 2 does not believe that the employees enjoy doing their work hence they require thorough supervision to meet the objectives of the institute. They have to be assigned responsibilities that act as a guide; otherwise, they will not do their work accurately and satisfactorily. While she may tolerate the input of some employees, she does not believe that the employees want to be part of the decision making in the organization. If the employees are allowed to do their work in their way, the company may not be successful (Miller 41). They must strictly follow the supervisor’s instructions to properly carry out their duties. The manager believes that classified information must never be accessible to the employees; only extremely necessary information will be released to them. Without supervision, the employees would not perform as expected and regular administration is necessary to make them work hard. She does not believe that managers should share their duties with group members. It is the sole role duty of the supervisor to give orders and make decisions on what is supposed to be done (Miller 41). She does not subscribe to the belief that employees can come up with innovative measures to solve the problems in the organization. Supervisor 2 believes that a balance between difficult and easy jobs must be observed to increase the efficiency of the employees.
The two supervisors share some resemblance, for example, they both believe that employees must be given challenging jobs to strengthen them and increase their future efficiency. The workforce requires the constant motivation to do their work well. They also subscribe to the view that unless the employees are told what to do they would not perform their tasks effectively.
Observations made in the survey
While some of the management methods of supervisors may be questioned, it is imperative to learn that their behavior is always in the best interests of the company. In the survey, it can be observed that different supervisors have their style of ensuring that the objectives of the company are met. Management is based on different types of assumptions that the managers perceive will lead to maximum productivity from its employees. The leadership styles all have their merits and shortcomings depending on how they are administered.
It is observed that employees who enjoy doing their work do not have to be closely supervised to perform their respective chores. Managers who provide favorable environments for their employees to work in are not usually involved in monitoring how they work or following up on what they do. Management like the one offered by supervisor 2 shows that some managers believe that their employees have very little capabilities, minimal ambition, and prefer being instructed. They are viewed as avoiding responsibilities and only work to earn a salary. The supervisor has the mentality that the employees are less interested in the company’s growth but more in their well being (Zastrow 264).
Some supervisors desire to illustrate in detail the job description instead of giving a general summary and letting the employees do their job as they desire. The input of employees in decision making is not seen as necessary in the company as the supervisor clearly explains that they have their own outlined visions.
Another observation made is the relationship between supervisor 2 with the productivity of the organization. Very few mistakes are usually made by group members who are under such a manager. Lack of synchronization among members may result in spending more hours doing a job that could otherwise have taken lesser time. However, the strict supervision may result in the work being highly structured making the occupation frightfully frustrating (Zastrow 264).
Supervisor 1 is interested in the growth and maturity of employees to enable them to be established in their committed careers. Respecting the employees and giving them the freedom to do work according to how they understand it best is in itself a motivating factor for the employees over increasing their salaries. When employees feel like they are trusted to do their tasks well, they tend to work harder so that they do not disappoint their boss. When provided with the proper working conditions, they will be more interested in seeking responsibility.
Most employees are immensely pioneering and ingenious and would always come up with elucidations for any challenges faced in the company. Giving them the responsibility to test their limitations is indeed necessary to test their confines. The survey on the two types of supervisors proves that people tend to perform in their jobs according to the levels that are specified for them. The psychology of the workplace guides employees on how they are supposed to relate to the workplace. If the manager gives them space to perform duties through their imagination and originality, they will gladly engage their brains in their jobs. If they are instructed on how to do their business they will tend not to put their brains at work and let the supervisor make decisions on what needs to be done (Miller 41).
Conclusion
A supervisor must develop a positive outlook and study the behavior of employees before deciding which theory they should use. Both the X and Y theories have both positive and negative angles, and each manager must be properly advised on how to treat the employees (Miller 41). In several organizations, both theories are employed depending on the situation. These approaches frequently conflict and may lead to the downfall or productivity of an association. Organizational behavior is, therefore, necessary to know the potential and knowledge of the individuals in a company. Headship, human behavior, change, and teams constitute directorial behavior.
Globalization and changing demographics are influencing many organizations hence the need for critical thinking to overcome the complex situations both at home and in the workplace (Miller 1). The complexities in the world have seeped into several organizations, making communication between social groupings and their supervisors more difficult. The theories define the divergent views that supervisors hold over the functioning of the organization. The management’s aim has always been to make profits, and they would take necessary measures to ensure that this happens. Organizing people and devising the right technique to ensure that their work results in maximum productivity are the sole priority for supervisors. Controlling and motivating workers to ensure that they fit the needs of the organization.
The sphere of business development is predominantly based on the introduction and maintenance of individual management styles within a team’s organization to reach a balance between the workers’ productiveness and the company’s profitability. Our company is concentrated on three principle management styles, such as consultative, participative, and mixed one, being an integral part of any teamwork efficiency.
The analysis of the first style is to be concentrated on the leadership positioning within the team’s organization. It is necessary to underline the idea that consultative management style is considered to be the ruling one; the basic advantages can be explained through the rewarding motivation of the employees leading to productiveness and profitability. This management style makes superiors feel trust in their employees achieving common organizational goals. Nevertheless, one of the key weaknesses of the management style based on consultative approach is concentrated on moderate teamwork; besides, the superiors of the company structure have no complete trust in the subordinates, which can lead to interpersonal contact misunderstandings.
The participative management style used in our team’s organization is considered to be more efficient; this strategy gives an opportunity to develop effective cooperative teamwork through much communication. It is necessary to stress that this style is perceived as the optimum solution to any marketing problems and complications; our organization is a vivid example of a business structure where superiors are completely confident in the employees’ professionalism, being motivated by the economic rewards of the organization got through common goals achievement. It is necessary to stress that this management is considered to be one of the most effective and successful. (Tjosvold, 2000)
The final strategy used in our team’s organization is considered to be concentrated on a mixed approach; it means that business covers the elements of every style considering the situation or business problems faced. It should be stressed that this approach is sometimes long-winded, and painful, though it is referred to as the most human-concerned and profit-oriented system. The basic advantages of this strategy are focused on supportive relationships and mutual respect within the team’s organization leading to productiveness and effectiveness of the working process. Nevertheless, there are some minuses in the mixed approach introduction; for example, the elements of exploitive and benevolent systems combined in the mixed strategy formation are reflected through threats and little teamwork in some conflicting or troublesome situations, and problems. There are some cases when management sponges master-servant trust principles resulting in lower levels of responsibility.
The most favorable aspect described in the team’s organization styles can be expressed through the following issues:
The development of working trust environment within the staff;
Motivations are based on the organizations’ benefits and profitability;
The strategic process involves the participation of employees’ leading to the formation of strong teamwork.
It should be stressed that the combination of all the management styles would result in the most effective and beneficial business running process. (Likert, 2008).
References
Likert, R. (2008). Human Relationships Contributors. Web.
Tjosvold, M. (2000). Leading the team organization: how to create an enduring competitive advantage. Lexington Books.
The job of a manager is not an easy one, but there are certain factors that can simplify it to a considerable extent. The knowledge of correct communication strategies and suitable problem-solving techniques promotes the creation of the most favorable environment for each employee in the tram. A manager’s ability to identify the strengths and weaknesses of his or her subordinates allows avoiding personal and professional issues and helps one to plan the work of his or her unit in the most productive way. However, one’s talent for evaluating one’s own strong and weak points is of no less importance. A manager that is able to identify his or her weaknesses is the most likely to gain success since such people work hard on improving their drawbacks while simultaneously evolving their strengths.
My Strengths
The top three strengths of my management style are ethical leadership, time management, and emotional intelligence. Ethical leadership promotes responsible decision-making and enables me to treat every employee with dignity and fairness (Nankervis et al., 2017). This trait helps me to approach every work situation with due attention and care to detail. Managers who apply an ethical approach never listen to one side of the story but instead, they give an opportunity to both conflicting parties to express their views on the situation. Ethical leadership will be helpful in the process of managing people since my subordinates will see that I am not biased and can be trusted. Thus, team members will not conceal any problems from me but will learn to deal with dilemmas effectively and mutually.
Time management is another highly beneficial feature for a good manager. For me, it means the ability to cope with the tasks I have without delays and to teach my team to use their time effectively. This strength is rather advantageous in management since it enables me to organize a schedule efficiently and delegate tasks when necessary. Finally, emotional intelligence is the tool helping a manager to understand and regulate not only his or her own emotions but also those of their subordinates (Hopkins & Yonker, 2015). With the help of this strength, I am able to notice changes in people’s moods, which enables me to cope with negative relations at the workplace. I can help employees to manage their personal or work-related problems so that they would not affect the final outcomes.
Opportunities
The three areas in which I currently feel weak are probing, diagnosing team building, and problem-solving. Probing questions as a communication style constitute a rather productive approach to finding out more detail. Probing enables the manager to receive clarifications from employees or analyze whether the information given by them is verified and truthful. Currently, I cannot say firmly that I have mastered this skill, but I intend to take a course in managerial communication to improve this feature. Team building diagnostics is another important skill for a manager since team building is known to enhance the process of effective employee communication and collaboration (Beauchamp et al., 2017). Although I acknowledge the significance of team-building exercises, I cannot prognosis when and which ones are needed. I plan to read scholarly literature and analyze some practical examples in order to improve this weakness.
Finally, I have to develop my problem-solving skills to the extent that will allow me to find resolutions to work issues promptly. To do so, I have scheduled to listen to several online lectures and to read professional literature on problem-solving for managers. I believe that with the improvement of this skill, I will contribute to my team members’ efficiency by avoiding conflicts or mitigating them as soon as possible.
Management Style
I would define my management style as a combination of democratic and visionary ones. For me, the collaborative philosophy pertaining to democratic management is the most suitable way of guiding people’s work. Taking into consideration the opinions of subordinates not only gives the opportunity to engage each employee but also develops a trusting atmosphere and gives people a feeling that their efforts are appreciated. I enjoy the process of idea sharing and find it necessary to involve each tea member in the process of idea generation. Meanwhile, the element of the visionary style that is the most attractive for me is the possibility to convey the general vision of the organization to one’s team. By pursuing the goals of democratic and visionary management, I can gain the best outcomes for the team and reach the company’s goals effectively.
Conclusion
The analysis of my management style’s strengths and weaknesses allowed me to identify the features that are currently well-developed, as well as those requiring further promotion. I realize that there are areas for development, and I am ready to cover these by being a persistent learner and a confident manager. In my opinion, effective managers are not the ones who distribute work to subordinates but the ones who inspire people to solve problems mutually and come up with the most effective ideas for the benefit of the whole company.
References
Beauchamp, M., McEwan, D., & Waldhauser, K. J. (2017). Team building: Conceptual, methodological, and applied considerations. Current Opinion in Psychology, 16, 114-117. Web.
Hopkins, M. M., & Yonker, R. D. (2015). Managing conflict with emotional intelligence: Abilities that make a difference. Journal of Management Development, 34(2), 226–244. Web.
Nankervis, A., Baird, M., Coffey, J., & Shields, J. (2017). Human resource management: Strategy and practice (9th ed.). Cengage Learning.
The interviews featured three managers in different fields done at their workplaces to determine differences in management styles. Also interviewed were one staff member working for each of the managers to get a clear picture of the effectiveness of their management styles. The managers were asked a set of self-assessment questions, which included:
how they would assess their own management style
self- assessment on decision-making
staff motivation techniques
staff participation in organizations strategic planning and
communication channels in the organization. Their staff members were also asked the same questions but focusing on their assessment of the managers skills.
The first manager interviewed was Sanjay Kumar, a manager at an information technology firm that develops computer-based software with five years of experience. Sanjay went into business after college where he graduated with a bachelor’s degree in information technology. He had no prior experience in management and has fifteen employees working for him. Sanjay explained that he reads materials on management skills and regularly attends seminars on development of good leadership skills. The interview with Sanjay revealed that he is a manager who works very closely with his staff. He is keen to ensure that accuracy and professionalism are maintained at all time in the organization. He considers his management style as democratic. On decision-making, Sanjay said he is aware that he cannot please all and deals diplomatically after gathering important information always consulting relevant departments in the organization. Sanjay keeps a pleasant sense of humor to promote a happy environment for his staff to embrace a fun attitude at work. He holds regular staff meetings and occasionally treats his staff to a ball game or trips as a team building activity He also involves his staff in the firm’s strategic planning. They contribute in development of the plan by outlining among other exercises, the strength and weakness opportunity and threats analysis tasks; this he says gives them a sense of participation in major operational issues in the firm. Sanjay has adopted a revolving door policy in communicating to his staff; he keeps meeting his staff regularly, and allows their opinions through emails, teleconference as well as face-to-face meetings.
An interview with one of Sanjay Kumar’s employees, Eric Matola revealed consistency with his boss’s interview. The staff member pointed out that Sanjay works very closely with him and the rest of the staff members and that Sanjay was keen on specifics of production. Eric said that Sanjay also consults him and other staffers on matters concerning the organization and he does not hesitate to consult Sanjay incase of any matter arising in the course of his duty. The organization’s staff meets every first Tuesday of the month to asses and motivate themselves where prices are awarded for work well done. He also communicates to the management through emails and is free to express his concerns. He feels part of the firm and has been working in this firm since it began and feels that his boss is a role model and a motivating factor in his career.
Close analysis of Sanjay reveal that his management style works for is organization. His firm produces high quality computer based soft wares and the sales figures are indicative of this situation. As seen in the interview, Sanjay applies both democratic and affiliative management styles. He achieves his goal through consensus and participation of his staff. He seems to want to motivate his staff to work rather than dictate. Sanjay has created a sense of joint participation and responsibility by seeking his staff’s opinion on serious issues like the organization’s strategic planning. Sanjay aims at creating harmony among his staff by building an emotional bond. He motivates his staff by creating an atmosphere of friendliness in his organization.
The second interview featured Dina Jones, a chief executive officer of a donor non-governmental organization that supports education of visually impaired children. Dina is a holder of master’s degree in Business management and has ten years experience in her field. She regularly attends leadership and management seminars to build and refresh her management style. She has a staff of ten and she is answerable to a board of governors in which she serves as a secretary. The second part of this interview also featured John a financial officer in the same organization. They were presented with the same set of questions that Sanjay and his employee answered.
Dina believes that her style of management is democratic. Her objective is to create a sense of participation among her staff and enjoys working with self-motivated people. Dina makes decisions that favor the organization’s vision and mission. She has a mandate to fulfill and is committed to it. Her staff meets once every three months to review performance; Dina regularly organizes capacity-building workshops for her staff in partnership with other organizations, this is one way she motivates them to perform their duties. Dina asserts that she pays her staff well including all the necessary benefits to keep them highly motivated and as a measure of attracting professionalism in the organization. Once a year she organizes for them a seminar that focuses on strategic planning and here they discuss the goals of the organization and reviews them together. All communication channels in the organization are formal as there are set procedures in addressing all matters arising at work.
John, a financial officer at Dina’s firm, has been working there for six years. He joined the firm from a financial institution where he performed similar duties. John thinks of his boss as assertive and has a good management style. John says that Dina makes decisions after consultations with relevant departments. She handles her staff professionally and this gives him a feeling of security and motivation. The staff members meet regularly and other times hold capacity-building workshops that motivate them and update their skills with new techniques. He asserts that the staff meets once a year at the beginning of the financial year to work on the organization’s strategic planning. He adds that each member’s contribution to this session is highly regarded. Communication channels are open but there exist established procedures followed in the communication process and this maintains professionalism in the organization.
It is clear from the two interviews that Dina Jones’s management style is democratic. In order to attain the organization’s objectives, Dina employs an all participatory technique in organizations activities and transfers it to the staff members. She consults with her staff members in order to seek their opinion on important matters. Dina encourages her staff to determine their own course while building their skills to empower them in this regard. This enables them to undertake this responsibility. She instills a sense of ownership by involving them in the strategic planning of the firm. This reduces implementation conflicts while motivating them, as their opinion is valued. As revealed by John, Dina seems to keep a good and friendly working environment in the organization while maintaining professionalism.
The third interview featured Peter Tanski, a chief executive officer of a small audio book recording firm. Tanski is a college graduate with fifteen years experience as a manager. He has worked in this firm for the last four years and has no prior experience in audio book industry and he has four people working under him. Also interviewed was Sammy Mbuggs who is an experienced studio engineer and joined Tanski’s firm three years earlier.
Peter Tanski believes in getting things done, he says that he gets things done by making the right decision. He claims to consult with his staff but also upholds his opinion over theirs. He believes that the success of the firm lies with him and no one else. Tanski vehemently declared that he made decision based on the arising situation. His decision is final and cannot be objected by anyone in the firm. When asked about staff motivation, Tanski mentioned that his staff are self-motivated and do not need to be further motivated. He said that he pays them for work done and that is enough motivation, he adds that what is important is the work they do. This firm does not have any form of team building activities and Peter Tanski does all the strategic planning in the organization. He agrees that he sometimes involves the staff in work planning but to a lesser degree. Asked about how he communicates important ideas to his staff, Peter replied that he calls for meetings when there is a need to do so. He admits that he appreciates his workers’ opinions and respects them but highly regard his opinion over theirs. They are welcome to present their issues to him but they are never a priority, he determines which issue to deal with and never promises to help in solving them. Peter believes that his ideas are paramount to the recovery of the already cash starved business.
Sammy Mbuggs revealed that his boss Peter is a poor manager and that he is a hindrance to the success of the firm. Sammy was honest and was concerned about the future of the recording studio. Sammy and his colleagues are not paid as agreed on their work contracts. He claims that Peter decides when to pay them and this greatly affects the quality of their work. Sammy said his boss does not value his opinion despite the fact that he is knowledgeable in the industry. Sammy has considered leaving the firm to find work in another recording studio. The firm seems to perform poorly and blames this on his manager’s lack of commitment and single handedness in running the business.
Close analysis of the situation in this firm reveals that Peter Tanski’s management style is authoritarian. Peter runs the business unprofessionally and worse of all is that he is ignorant about it. It is clear that his staff feel worthless, as he does not consider any ideas from them. His staff waits for his instruction and cannot perform any duty; they lack teamwork, as peter is the sole planner. Peter’s instructions appear to be forceful; he makes fast decisions and not necessarily good ones. He gets things done the way he wants them and listens to none of his employees. It is also clear that the working environment at peter’s recording studio is tense and not conducive for his staff members. Peter sees himself as the authority figure and his position uncompromising. The situation questions his people handling skills and intentions of operating the business.
Conducting these interviews pointed out the successes in the management style of two interviewees and failure in one of them. The first interviewee, Sanjay Kumar appears to be successful in applying his managerial skills. Despite the fact that he has had no prior experience in managerial position, he exhibits exemplary skills in handling his employees. Eric his employee is a testimony of Sanjay’s outstanding leadership qualities that have contributed to the success of his business, he singled out Sanjay’s attitude towards the employees and how he values their opinion as a major reason for the success of the firm and looked up to Sanjay as a role model. Sanjay acknowledges the importance of understanding and improving his management style. He pointed out in the interview that he continually reads and attends seminars to improve on these skills. He seemed to have achieved the desired work environment as is shown by the positive impact it has on his employees.
Like the first interviewee, the second one Dina Jones is also successful in applying her management skills. Jones not only values her employees but also understands them. She knows how to motivate them to get the most out of them. Dina understands that financial reward is the ultimate motivation in any firm and applies it appropriately. She maintains a professional atmosphere at work that positively influences her staff. Dina Jones invests in her staff. She improves on their skills through capacity building and pays a good price to maintain them. Her management style has worked for her and she is able to move the organization’s mission with no resistance from her staff. Her financial officer John asserts that Dina is a motivational factor in their organization. This is a testimony of the effectiveness of her management style and an acknowledgement of her efforts.
On the contrary, the third interviewee Peter Tanski is not a successful manager. It is clear from the interview that Peter lacks focus on important management issues. He does not believe in proper management skills as a means of streaming this organization. Peter seems to have lost touch with his staff. He does not value his workers and sees no reason in rewarding them; he does not pay them on time. He also does not understand the importance of teamwork. Looking at Peter’s interview and comparing it to Sammy his worker is indicative of lack of proper communication channels in his firm. He thinks highly of himself while his staff thinks otherwise and he is not aware of this. Peter Tanski’s management style is by default and not by knowledge. This management style is surely not suited for his business and only hurts the organization and the people who work in it.
Looking at these management styles, it is easy to assimilate the one that is either popular or one that most people apply to achieve success. My personal ambition is to understand all the management styles so that I could develop the ability to apply any of them whenever appropriate. Furthermore, I believe that no one particular style is perfect and by understanding the styles one would be able to apply them from an informed position and not as Peter Tanski who ignorantly applies a management style he knows nothing about. To be an effective manager in the future, I will strive to learn more on management styles and how they influence people and the best one in any particular environment or field.
Risk and financial counseling professionals help individuals and organizations adopt effective perils and fiscal management approaches for successful investments or operations. Accordingly, risk and financial advisory experts work with individuals to direct them on where to put their money for maximum returns. Equally, the specialists help individual investors to plan adequately for financial risks based on the prevailing economic trends. Similarly, organizations benefit from financial and risk advisors by knowing how to invest and maximize profits and changing operational procedures based on the proceeding economic situations. The advisors generally intend to help entities run with minimal shocks. However, several factors pose noteworthy challenges to the realization of such goals. Focusing on the contact person or teams and the pay alone without caring about the prevailing corporate culture’s effects inhibits professional consultants’ effectiveness. Consequently, financial and risk consultants must work with organizations to establish the right corporate culture for the expressive monetary impact on consulting entities.
Literature Review
Risk and Financial Advisory Industry
Conventionally, risk and monetary counselors provide their services based on contracts. The situation involves a short-term collaboration between an entity and the risk and financial mentor, where the latter earns a consultancy fee or commission after the contract. Such indenture packages mainly purpose to save the costly consultant’s time and reduce the involved charges on the side of the consulting party. According to Alberti et al. (2022), at least three modes of consultancy payment exist in the risk and financial counseling realm. Such techniques include fee-only, commission-based, and fee-based payments. The former deal sees the expert receive earnings based on the advised party’s investment portfolio performance (Alberti et al., 2022). Therefore, the pact is conditional and pushes many organizations and individuals to make high-risk investments that can deliver quick and high returns in the short term. The issue arises as the counselors’ purpose is to earn the performance-pegged fee hurriedly. Consequently, this consultancy arrangement promotes aggression, high risks, and short-term success with almost assured enduring problems.
On the other hand, the fee-based consultancy pact allows the advisor to earn whenever the customer buys a particular investment according to the expert’s guidance. The arrangement sees the professional continue earning based on the portfolio’s performance, leading to a substantial conflict of interest (Alberti et al., 2022). Equally, the commission-based accord allows risk and financial advisors to receive compensation when the entity invests or buys a particular insurance product, thus causing a clash of interests (Alberti et al., 2022). Bracci et al. (2021) note that focusing more on the financial gains limits many business consultants’ effectiveness in helping organizations and individuals realize financial stability. However, many consultancy agencies continue to realize this mistake, leading to research-based changes in the industry. For example, McDougall et al. (2020) reiterate the emerging trend where risk and financial counselors continuously abandon the focus on financial gains to form a functional collaboration with the consulting organizations for assured success. Therefore, the shift from helping companies to make quick cash generation decisions for luxurious compensations to focusing on corporate culture alignment with the necessary risk and financial strategies marks noteworthy change-management in the sector.
The Emerging Role of Corporate Culture in Risk and Financial Advocacy
The risk and fiscal consultancy sector experiences changes like the other industries. As per Gorton et al. (2021), many business consultants currently see sense in focusing on a lasting relationship instead of the short-term return-engrossed contracts utilized in the past. The decision comes from several aspects, including the continued under-performance of companies and individuals receiving commercial advisory services shortly after the termination of consultancy contracts (Gorton et al., 2021). Moreover, investors’ perpetual avoidance of risk and financial advisors due to their high cost and substantially declining return on investment force many business counselors to adopt effective strategies with long-term effects. As such, fiscal and risk management counselors serving investors face increased pressure to ensure businesses realize a value for their money or risk losing their contracts.
Many business professionals currently providing consultancy services purpose to establish permanent solutions regardless of the involved time to manage the mounting change compression. Isensee et al. (2020) point out that the move by the experts is a positive change that promotes investments’ growth and resilience during tragic moments. Other than offering instantaneous answers, business experts endeavor to inculcate their wisdom into the organizations’ streams to make it deeply absorbed. Kunz and Heitz (2021) maintain that the finest retorts happen when a change is predicted, calculated, and constructed into the business culture. Subsequently, business counselors now focus on making change an institutional aspect other than working with a few management individuals when dealing with a corporation.
The audit firms’ shift from commercialism into professionalism indicates cultural transformation to align with the prevailing changes. According to Alberti et al. (2022), the auditing sector is a vital player in the financial and risk consultancy domain. Auditors work with individuals and businesses to identify the clients’ financial position and ability. The auditing process helps investors realize investment mistakes and opportunities and informs appropriate changes for profit and cash flow maximization. Fiscal auditing is a paramount aspect of financial and risk advisory undertakings. Barasa et al. (2018) report that many audit companies in the past sought to find mistakes among their customers to craft under-hand deals for concealment. The matter leads to cultural development in the field, with many auditors and financial advisors seeking income maximization opportunities. However, changes in the business realm compel audit firms to change their culture by aligning their values to the prevailing customer needs and expectations. Alberti et al. (2022) focus on auditing organizations’ corporate culture’s transformation towards professionalism instead of commercialism. Therefore, the finance and risk management advocacy sector exhibits positive transformation by focusing on organizational changes with lasting implications.
The desire to promote lasting influence in the financial advocacy domain pushes many risk counselors to focus on the corporate culture revolution. A major emphasis by many business psychoanalysts in the past concerns agency costs and property rights. As per Alberti et al. (2022), investment experts working with individual investors or companies used product uniqueness and patent wars to promote clients’ market dominance and income maximization. Similarly, advising investors to undertake aggressive business strategies leads to a harmful corporate culture that embraces excessive risk-taking (Gorton et al., 2021). Gorton and colleagues argue that many businesses operating aggressively survive shortly. However, realizing such a mistake compels numerous business advisors to change their tactics. Nowadays, business risk analysts adopt a non-aggressive technique that promotes gradual evolution and enduring growth (Kunz & Heitz, 2021). Equally, the team hardly focuses on working with individual managers but adopts appropriate tactics to make their advisory skills meaningful and observable by the whole organization. Subsequently, making change strategies a whole team’s aspect is a significant change management strategy among business advisors intending to induce lasting solutions to individual investors and businesses.
Many business advisors now embrace teams’ cultural transformation, instead of the mere consensus-building sought before, as a form of change management strategy. The rise in the professionals’ numbers and thus competition to acquire customers pushes most counselors, especially fresh graduates, to seek deals with multiple clients to maximize income. The matter causes diverted attention, leading to less effective investment advice (Bracci et al., 2021). However, Kunz and Heitz (2021) note that forming compromises with corporate managers is no longer the only requirement for financial advisors to work with companies. Investors presently want counselors with the potential to transform the whole team’s culture by establishing a system that promotes the working relationship among all the employees. The shift results from the realization that not all business managers effectively manage to implement advisors’ strategies. Moreover, the understanding that some consultative elements overlook specific underlying organizational concerns now demands that individual counselors craft comprehensive strategies and inculcate them into the corporate culture for adoption. Therefore, business analysts must embrace new tactics that focus on the whole organization’s change instead of the current focus on forming consensus with the management to win more customers.
The rising need to combine risk and financial management advisory with sustainability leads to significant changes in the business counseling realm. Isensee et al. (2020) contend that venture capitalists nowadays want to establish projects that can last several generations. Similarly, the group intends to operate businesses in ways that conserve the environment and align with customer needs. Therefore, risk and fiscal advisors increasingly face mounting pressure to adopt appropriate strategies to identify cost-effective, medium-risk, and high-returning ventures that conserve the environment, which is often not easy. Initially, business experts offering advisory services needed only to deliver a bright theory to get payment, as per Bracci et al. (2021). The aspect is currently non-existent, as investors want advisors who work with them and their teams to realize the suggested benefits (Bracci et al., 2021). Mahmood et al. (2019) insist that business owners will, in the future, pay for the business advisory services based on their performance, unlike now, where the professionals receive down payments before delivering meaningful content. Consequently, business advisors must develop their knowledge and expertise basis to meet the emerging needs of the team-focused customers to remain in business.
Current failures in business consultants’ enterprise resource planning (ERP) models are suggestion point to a changing business advisory atmosphere requiring considerable revolution. Mahmood et al. (2019) describe ERP systems’ adoption among many commercial establishments as a product of counselors’ directives to aid investors in managing resources management and financial shocks resulting from such. Investors getting recommendations for ERP models from their advisors often view the professionals as great resources for the organizations’ success. However, recent research, such as Mahmood et al. (2019), indicates contradicting results, where most of the business consultants’ ideas result in minimal or no significant results. The aspect causes noteworthy pain due to the involved high costs, leading many investors to change their requirements for the systems’ adoption. Subsequently, a new requirement by the business people is that fiscal consultants leading system adoptions help the investors beyond the structure’s preliminary phases. Mahmood et al. (2019) identify project team development as a major necessity among system buyers, with the consultants bearing almost the full mandate to see the model work. Therefore, this point explains the emerging trend of fiscal counselors seeking more skills to meet the new era’s requirements.
Lastly, developments in the neuroaccounting imply significant business consultancy service changes. Tank and Farrell (2022) reiterate the growing need among risk and fiscal experts to deliver realistic and functional solutions to business partners. The researchers identify neuroaccounting as one of the effective tools used by experts to promote cognition and comprehension of business aspects by business people receiving investment and risk avoidance guidance. According to Tank and Farrell (2022), people exhibit unique mental traits that depict their risk mentality and decision-making capacity. Subsequently, parties intending to offer effective investment directives must first understand their clients’ neuron propensities. Such changes impact the business counseling domain significantly. Tank and Farrell (2022) argue that risk advisors with the potential to comprehend humans’ mental capability and predispositions stand increased chances to make a better impact among investors. The aspect constitutes a meaningful behavioral accounting facet sought by many business advisors today. The neuroaccounting philosophy is in the developmental stages and promises to dominate the business sector with time. Subsequently, risk and fiscal counselors’ intentions to comprehend their clients’ mental ability to offer the right dose of interventions explains the current development in the sector.
Findings
My investigation concerning the risk and financial advocacy sector developments reveals substantially important issues. A critical takeaway from the research touches on the shifting method of work in the industry. Primarily, many risk and fiscal counselors make money by selling investment theories to business owners and individual investors without being directly involved in the model’s implementation. However, such times are long gone as companies now require financial and risk management supporters to play active coaching roles by practically working with clients to cause real change. Accordingly, every financial and risk counselor must have corporate culture reform skills to succeed in the job presently and in the future. Mastering the new skill involves understanding factors that shape people’s behavior, commitment, and decision-making capabilities in organizations. As such, neuroaccounting is an emergent pedagogic discipline investigating the connection between people’s neurons and decision-making ability. The psychology-based science stands to help business counselors to manage change by comprehending investors’ brains and how to handle them best to influence the appropriate organizational culture.
Recommendation for Future Research
My research establishes the need for further scholarly investigations on the possibility of improved change management systems through business advisors’ collaborations. Partnership is primary between a change director and the implementers. However, the risk and fiscal advisory realm mostly involve independently acting professionals who experience distinct working conditions and challenges requiring change. Consequently, my suggested scholarly investigations should focus on seeking the effectiveness of combing individual professionals’ experiences to establish a more comprehensive approach toward the industry-based changes. Equally, I believe that further academic research is necessary for the neuroaccounting sector that links people’s mental structures to change management. As per the new discipline, specific persons’ neural structure predisposes them to risk-oriented cultures while others promote aversion. Subsequently, investigating these two aspects further, promises to shed more light on the currently glassy matter involving investors and professional consultants.
Conclusion
Financial and risk advisors must work with organizations to establish the right corporate culture for the expressive financial impact on consulting entities. Change is real in the risk and fiscal counseling sector, like in the other business domains. Unlike before, professional business advisors now face the pressure to shift their skills and abilities to impact investors effectively. The shift primarily focuses on delivering practical behavioral change in the organizations instead of the earlier focus on theoretical investment guidelines delivery. Accordingly, many certified business advisors now disregard the revenue maximization strategies to embrace lasting collaborations with clients. Providing behavioral targeted intervention offers the counselors an excellent room to manage change and comply with the new customer requirements.
References
Alberti, C. T., Bedard, J. C., Bik, O., & Vanstraelen, A. (2022). Audit firm culture: Recent developments and trends in the literature. European Accounting Review, 31(1), 59-109.
Barasa, E., Mbau, R., & Gilson, L. (2018). What is resilience and how can it be nurtured? A systematic review of empirical literature on organizational resilience. International Journal of Health Policy and Management, 7(6), 491–503.
Bracci, E., Tallaki, M., Gobbo, G., & Papi, L. (2021). Risk management in the public sector: A structured literature review. International Journal of Public Sector Management, 34(2), 205-223.
Gorton, G. B., Grennan, J., & Zentefis, A. K. (2021). Corporate culture. Annual Review of Financial Economics, 14 (1), 63-76.
Isensee, C., Teuteberg, F., Griese, K. M., & Topi, C. (2020). The relationship between organizational culture, sustainability, and digitalization in SMEs: A systematic review. Journal of Cleaner Production, 275, 1229-44.
Kunz, J., & Heitz, M. (2021). Banks’ risk culture and management control systems: A systematic literature review. Journal of Management Control, 1(1), 1-55.
Mahmood, F., Khan, A. Z., & Bokhari, R. H. (2019). ERP issues and challenges: A research synthesis. Kybernetes, 49(3), 629-659.
McDougall, M., Ronkainen, N., Richardson, D., Littlewood, M., & Nesti, M. (2020). Three team and organizational culture myths and their consequences for sport psychology research and practice. International Review of Sport and Exercise Psychology, 13(1), 147-162.
Tank, A. K., & Farrell, A. M. (2022). Is neuroaccounting taking a place on the stage? A review of the influence of Neuroscience on accounting research. European Accounting Review, 31(1), 173-207.
China’s management style results from the country’s long-lasting communist traditions and is concerned directive. Cultural influence resulted in the kind of employment relations when the senior management team gives instructions to the subordinates who have to follow the directions. Also, Confucianism has always played an essential role in every aspect of Chinese relationships, including employment (Mazanec et al. 2015). Confusion tradition implies that the word of elderly (or senior authority) is the most influential one, and the management style has always conformed to this definition. However, in recent decades the country’s approaches to employment relations started to change, giving way to strategic human resource management (SHRM) (Tang et al. 2014). SHRM has proven to impact corporate entrepreneurship (Tang et al. 2014).
Modern labor policy in China is different from the traditional ones, and the country is undergoing an increase in collective bargaining (Lee, Brown & Wen 2014). Due to this policy, China’s workers tend to defend their rights for decent working conditions (Lee, Brown & Wen 2014). Another sign of the changing employment relations in China is that the country is adopting a new decentralized method of labor relations (Friedman & Kuruvilla 2015). Specific political restrictions in the country disable interest accumulation among the employees since the government considers it a threat to social stability (Friedman & Kuruvilla 2015). Despite the restrictions, specialists note steps towards decentralization. However, such movement is more frequently observed at the municipal degree (Friedman & Kuruvilla 2015). Zhang (2015) mentions that Chinese companies experience the movement from despotic management to hegemonic one. Such change enables the workers to obtain more rights concerning their work options.
Thus, it can be mentioned that China is making the first steps towards altering its traditional employment relations, but these steps are rather restricted by the government and authorities.
Employment Relations in Hong Kong
Hong Kong, which has been under British rule for a long time, has been impacted by the British Empire in many aspects, including employment relationships. While the city is a part of mainland China, its management style in more open-minded. Collective decision-making is in favor of the Hong Kong management style. (Gao 2015). One of the ways of enhancing the city’s employment standards is the implementation of communication and information technologies (Ninaus et al. 2015). Hong Kong government pays attention to the elimination of stressful situations in the workplace. Thus, new technologies are employed by companies to facilitate their employees’ abilities and endeavors.
Various communications make it possible to quicken the exchange of information, simplify communication between workers (Barnes et al. 2015), and relieve stress levels (Ninaus et al. 2015). The employers who modernize their work environment obtain a more positive atmosphere within the team of workers, which leads to better business outcomes. Another peculiarity of management methods in Hong Kong in the development of leadership and its promotion among the management teams (Chan & Burgess 2015). To enhance the advancement of leadership, coaching is used as a crucial corporate-support technique (Chan & Burgess 2015). In the most recent years, there has been a considerable increase in the number of professional coaches who contribute to the companies’ better results and enhance management techniques (Chan & Burgess 2015). Hong Kong employment relations are tended to be democratic, considering each employee’s opinion, and supportive.
Differences
The main divergence between China’s and Hong Kong’s prevailing management styles is in their traditional approaches to employment relationships. While in China the manager’s role is the most important, in Hong Kong there are more democratic relationships between managers and employees. Taking into consideration Hofstede’s cultural constructs, Hong Kong and China have different prevalent issues. For China, individualism is more important while for Hong Kong, power distance plays a crucial role (Mazanec et al. 2015).
China’s individualism is revealed through attributing more significance to one person’s welfare (a company’s leader) rather than to the group of people (employees), while in Hong Kong it is vice versa. Power distance, which is realized via acceptance of various classes’ opinions, is more essential for Hong Kong, (Mazanec et al. 2015). Hofstede’s construct of uncertainty avoidance (Mazanec et al. 2015) pertains to China more. Chinese leaders tend not to tolerate risk and try to avoid it by any possible means, one of which is the dictatorship management style. The Confucian approach (Mazanec et al. 2015) is more typical for China than for Hong Kong. The latter allows more freedom for each employee, while the former concentrates on entitling the rulers with more power.
Other differences in Hong Kong’s and China’s employment relations are concerned with political and historical peculiarities (Zou et al. 2016). While Hong Kong has been under the impact of Great Britain for a long time, it has adopted more sociable policies concerning employment relationships (Yip, Lei & O’Connell 2017).
Another distinctive feature is that while China is making the first steps towards employment democracy, Hong Kong has experienced such practice for a longer time. In China, there are still many obstacles to the adoption of democratic management (Zhang 2015).
Similarities
The main connection between Hong Kong and China is that although the city of Hong Kong has particular administrative power, it is still a part of the country.
Another similarity is noted according to Hofstede’s classification: such constructs as masculinity and long-term orientation (Mazanec et al. 2015) are present in both China and Hong Kong. Masculinity is revealed through the desire to achieve the best outcomes. Long-term orientation aims at sustaining stability in the relationships and encourages the leaders to be oriented on future development (Mazanec et al. 2015).
Reference List
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Chan, J & Burgess, J 2015, ‘Coaching the coaches: a development program in a Hong Kong organization’, Human Resource Management International Digest, vol. 23, no. 6, pp. 30-33.
Friedman, E & Kuruvilla, S 2015, ‘Experimentation and decentralization in China’s labor relations’, Human Relations, vol. 68, no. 2, pp. 181-195.
Gao, W 2015, ‘Collective actions for the management of multi-owned residential building: a case of Hong Kong’, Habitat International, vol. 49, pp. 316-324.
Lee, C-H, Brown, W & Wen, X 2014, ‘What sort of collective bargaining is emerging in China?’, British Journal of Industrial Relations, vol. 54, no. 1, pp. 214-236.
Mazanec, J A, Crotts, J C, Gursoy & Lu, L 2015, ‘Homogeneity versus heterogeneity of cultural values: an item-response theoretical approach applying Hofstede’s cultural dimensions in a single nation’, Tourism Management, vol. 48, pp. 299-304.
Ninaus, K, Diehl, S, Terlutter, R, Chan, K & Huang, A 2015, ‘Benefits and stressors – perceived effects of ICT use on employee health and work stress: an exploratory study from Austria and Hong Kong’, International Journal of Qualitative Studies on Health and Well-Being, vol. 10, no. 1, pp. 1-15.
Tang, G, Wei, L-Q, Snape, E & Ng, Y C 2014, ‘How effective human resource management promotes corporate entrepreneurship: evidence from China’, The International Journal of Human Resource Management, vol. 26, no. 12, pp. 1586-1601.
Yip, T L, Lei, Z & O’Connell, J F 2017, ‘Editorial: Business model innovation in air transport management – selected papers from the IFSPA 2015, Hong Kong, 2015’, Journal of Air Transport Management.
Zhang, J 2015, ‘From market despotism to managerial hegemony: the rise of indigenous Chinese management’, Management and Organization Review, vol. 11, no. 2, pp. 205-210.
Zou, H, Chen, X, Rico, L W & Liu, X 2016, ‘Psychological capital and conflict management in the entrepreneur–venture capitalist relationship in China: the
entrepreneur perspective’, International Small Business Journal, vol. 34, no. 4, pp. 446-467.
J. C. Penney Company Inc., (JCP) like other chain of companies in the US, has a history of changing its management strategy to suit the growing demand for good governance (Nafziger, 2012). JCP deals in clothing lines and retail business in various countries of investment. Its position in Texas provides it with an opportunity to serve the suburban community and other metropolises around the world. With over 11, 000 stores across US States, JCP sold its merchandise through personal selling.
In 2013, the company indicated interest in Seattle’s Best Coffee and Portrait Studios. This explains its business strategy that focuses on a variety of products and services for people through the numerous convenient stores distributed in the country (Talley, 2012).
Since the 1960’s, JCP has used a similar management style until the 21st century when it realized the importance of incorporating technology in the new democratic style of management. This paper intends to explain the company’s management style including the advertising technique that helps it achieve a competitive advantage.
Changes in J.C. Penney’s Management Style
Management strategies have direct impacts on organizational performances since inception. JCP incorporated different management styles owing to the changing consumer environment. Two most common strategies adapted by the company include:
Acquisitions and Expansion
Since 1960, the company acquired The Treasury outlets, but JCP experienced losses by the end of 1962. This involved an agreement between JCP and a General Merchandise Company that offered the company the stores it needed during the period. Within the same period, JCP extensively accessed about 10 stores through a Milwaukee acquisition contract.
This provided the company with an opportunity to venture into the market in Alaska and other states in the US. Besides these acquisitions, JCP equally purchased Supermarkets Interstate. Normally, an independent organization rarely involves the managing director actively in most house businesses.
This enables it to grow even in the absence of the founder. At JCP, it was impossible to operate since 1971 following the death of JC Penny (James Cash). For 30 minutes, all stores across the US closed down in honor of JC’s departure. Instead of accruing losses, the company made huge profits since most suppliers and clients paid tribute to the founder of JCP.
Two years later, the company used its profits to increase the number of stores by over 2000. The company’s lack of autonomy ensured that the top management made most decisions. It was difficult to project future outcomes of an action unless an employee had close relations with the top managers. In 1974, the company faced huge losses because of the inflation. Democratic management styles enable people to share ideas in order to avoid the effects of natural occurrences such as inflation. However, this could not happen at JCP.
Online Retail
In the early 19th century, JCP began direct marketing by merchandizing its products through the internet. Globalization made it easy for JCP to acquire customers and mergers through the internet. It used this platform to sell shops to established brand names, such as Firestone. Its Viewtron Videotex catalog helped the company to acquire new stores and to market its products. The JCPenney National Bank allowed customers to use credit and debit cards for withdrawal and deposits.
These automated cards had the company’s name making it possible for JCP to reach out to many clients through virtual techniques (Nelson, 2005). It had to reduce the number of stores it opened for automotive purposes. Instead, it directed most people to the online portal. The innovative transition displayed JCP’s change strategy. The company reduced dependence on the founder because of his demise. It adapted a new management style that would help it in increasing profits while it remained competitive.
Current Management Style
JCP’s current management style focuses on e-commerce, endorsement of celebrities for adverts, and diplomacy in business operations. Myron Ullman, the current CEO, uses technology to enhance interpersonal skills. He seeks to improve a management environment created by his predecessor, Ron Johnson. Its website (JCPenneyBrands.com) creates easy accessibility to products and services making information flow fast and effectively (Hellriegel & Slocum, 2007).
JCP recognizes the efforts of different designers in their clothing industry. This boosts their self-esteem while motivating them to improve. JCP managers realized that democratic leadership was essential for team building and collective growth of the company. A change in strategy began in 2007 when the management sought to introduce innovative and interactive strategies of communicating with clients.
The company expected to increase its profit margins after introducing Ron Johnson from Apple Inc. According to experts, the CEO did not offer a guarantee for success in a company that dealt in completely different products and services from Apple Inc.
Opinion
JCP’s current management strategy includes generation of creative ideas for overall organizational development. However, it uses radical measures including the ability to lay-off workers and reduction of store acquisition.
Even though these strategies contribute towards profitability, they reflect the opinions of the top management. There is a high possibility that JCP will experience a similar style of management as the era of JS Penny. The CEO seeks to make a general overhaul in the company by assuming the status of a “start up” organization.
Senior Management’s Role
Senior managers at JCP including the CFO, CEO, and the creative designer often encourage people to make popular decisions. Ron Johnson played a significant role in transforming the organization from a catalog-based retailer to an internet retailer. According to the CEO, each employee needs to be responsible for his/ her actions within the company.
The senior managers ensure that employees develop innovative ideas, which the senior team approves. Johnson has the ability to approve the release of company annual reports. This explains why the senior manager laid-off 600 workers in 2013. Johnson equally supports establishment of virtual stores through the internet. In 2012, the company managed to freeze 100 shops and transformed their business transactions to online techniques (Nafziger, 2012).
Today, clients consult the company online platform; they make orders, get shipment, and pay through JCP MasterCard. The transition cost the company many resources, acquisition of a CEO with a successful record from Apple, and loss of stores and workers. In essence, it was not a seamless process and JC’s senior staff had to endure many challenges between 2012 and 2013.
Among the decisions made by Johnson, change of designs and pricing strategies took precedence. Even as the transition became a success, employees and clients sought for Johnson’s retirement following the radical strategies he used to change the management of the company. This led to a forceful eviction from the company in 2013. It led to a reinstatement of former CEO, Myron Ullman (Talley, 2012).
Celebrity Endorsements
During marketing, creative designers sometimes use celebrities since they have the ability to create credibility through their charisma. In 2008, JCP used Ralph Lauren Kimora Lee Simmons to brand position the new clothing line for men and children. The two had a significant impact on sales and expansions for JCP. Kimora Lee provided professional advice to consumers and this contributed to one the highest annual sales of Decree and Fabulosity clothing lines.
By the end of 2012, the company profit margins increased to 32.5% (Nafziger, 2012). Celebrities have a natural allure for the audiences they command. Similarly, they are likely to influence sales when used for advertising, or selling. There are several avenues of sales promotion, which Johnson never explored. Instead, he concentrated on innovation, and Ullman has the duty to restore the company image, which he initially created during his tenure.
Innovation
JCP needs to implement an automated communication system that makes it easy for customers and employees to exchange ideas. Previous innovative strategies failed since the over ambitious Johnson rarely included employees in rational decision-making procedures.
Through video-conferencing and virtual messaging, employers and employees will know all activities in the company and contribute towards its collective development. Instead of laying-off workers, the company will employ competent graduates who will increase organizational performance through technological assistance (Talley, 2012). JCP needs to redeem its brand image by increasing the number of employees and enhancing effective communication with clients.
Adaptation
JCP displays inability to make a rational decision when choosing organizational leaders. It changes its management strategies quickly and makes it difficult for employees to adapt to a single style of management (Nelson, 2005).
The continued alteration of CEO’s delays the achievement of organizational goals, and this affects pricing in the company. After reinstating Ullman, JCP should not interfere with his leadership until 3-5 years elapse. Normally, most organizational strategies function for 3 to 5 years making it impossible to replace the CEO even when he/she has a poor management style.
References
Hellriegel, D., & Slocum, J. W. (2007). Organizational behavior. Mason, Ohio: Thomson/South-Western.
Nafziger, E. W. (2012). Economic development. Cambridge: Cambridge University Press.
Nelson, B. (2005). The Management Bible. Hoboken: John Wiley & Sons.
Talley, K. (2012, April 5). J.C. Penney Trims Headquarters Staff. The Wall Street Journal. Retrieved from https://www.wsj.com/
Sunderland’s management style is a combination of autocratic. From the case study, it is evident that coworkers consider Sunderland’s management style to be formal but effective. A formal management style is autocratic and employees are required to completely follow instructions issued by the top management to the letter.
Sunderland is described in the case study as “always setting expectations at the outset of a project” which have to be achieved. Sunderland uses the autocratic approach to ensure organizational project goals and objectives are achieved. According to the case study, Sunderland is highly valued because she ensures that project goals are achieved as required.
Sunderland is described as having a “great strategic mindset”, which implies that she is highly focused and inflexible. Sunderland’s autocratic management style provides her with a competitive edge in pushing for the development of the best ideas and products for the client. Her focus is on the best product that best suits the needs of the customer. She strives to be efficient in planning, organizing, and directing employees to provide the best solutions to the client.
Sunderland is described as a “doer” in her working style. The case study describes Sunderland as a focused, inflexible, demanding, and a single minded person. Doers execute tasks with a lot of attention to detail, a description that Sunderland fits well into.
Sunderland has a legitimate source of power because of the position she holds in the company. Her position is based on experience and professional qualifications which fit into the job description she holds. In addition, she holds expert power because of her skills, knowledge, and experience from previous positions held in other companies. She also holds coercive power which enables her to influence the people to perform according to the expectations of the customer.
An assessment of Sunderland’s emotional intelligence shows her to be able to control her emotions. That is because she was able make decisions while keeping her emotions under control.
Morgan’s Management and work style
The case study shows Morgan’s management style to be informal and some aspects of the leisure’s faire approach. It is an informal approach that is evident from the relaxed atmosphere Morgan enjoys working in. In addition, Morgan endeavors to strike a balance between “competing interests and priorities”. Morgan provides support and gets involved in executing tasks, by working hand in hand with the employees.
Morgan’s sources of power are legitimate, expert, and referent because of the position he holds in the company. Morgan was recruited to the position because of prior experience, knowledge, and academic qualifications.
The source of Morgan’s expert power is the experience and knowledge he gained as a project manager in different companies before getting the current position. Evidence shows Morgan to be supportive, and partners with the employees, which shows that he has developed person connections with the people he works with, which qualifies him to have referent sources of power.
Morgan’s work style is reflected in his ability to develop close working relationship with other employees and his dislike of Sunderland’s management style. Morgan is emphatic and ensures that he makes employees feel great.
That is evident in from case study where Morgan says that he cannot “imagine working in the bureaucratic labyrinth of a large company” and continues to assert that he values an environment where “where everyone had a seat at the table”. Morgan likes a relaxed working environment, where he creates vision for the people, thinks outside the box, and deliberately tries new ideas to provide the best solution for the customer.
Morgan’s emotional intelligence is based on a cognitive approach where he endeavors to reason with emotions. That is best illustrated in the stamen on how Sunderland understood Mike on the way he can “defend his ideas to the extreme and can get excessively argumentative when things don’t go his way”.
That is in addition to the response Mike make to things that he is interested in, in this case, the interest Mike has in client details, and in understanding the strategic background of any training program to achieve the client’s training needs and organizational goals.
What is going on
Mike Morgan called Nunez who refused to take his phone calls because Atain’s account director was the only authorized person and only point of contact with Gramen. By giving a call to Nunez, mike was in direct breach of protocol or Attain’s communication policy, an act that could generate negative relationships with the client. Mike is rebellious because of “trying to challenge the client’s ideas and develop content that is outside the box”. Morgan wants to think outside the box by contacting the client directly.
Morgan seems to work outside the formal organizational structure of doing things and attempts to test new ideas without due consideration of the formal process of evaluating case studies.
Morgan knew very well that his approach of solving client problems could not be in tandem with Sunderland’s strict formal management style. Morgan tried to contact Nunez to test and influence her to accept his unproven ideas which were based on an unproven and single case study, which Nunez had advised him to conduct further research on, to be able to make reliable conclusions.
Morgan also likes challenging the ideas of Attain’s ideas and in this case, had gone further to contact Nunez directly to influence decision making. Morgan knew that Sunderland was not knowledgeable on the “impact sales and financial strategies had on working capital, day’s sales outstanding, and bad debt expenses”.
Nunez called Sunderland because she was the only direct point of contact with the Gramen Equipment Company to inform her of the persistent calls from Morgan. She was professional and did not want to indulge in a breach of the formal organization of running the business.
Sunderland vs Morgan
The relationship between Morgan and Sunderland is not cordial. Sunderland has a strong inclination to authority and regard for the formal organizational structures. On the other hand, Morgan does not have a strong regard for the formal structure of organizations.
Morgan does not value the formal reporting relationship existing in the organization and regards Sunderland to be harsh on him. She seems not to be flexible, but dictates terms in accordance with the client’s needs, a fact Morgan opposes. The strained relationship is further illustrated in the decision Sunderland makes to have a face-to-face meeting with Morgan instead of giving him a call and the contemplation of reporting the incident to Chama.
Initiating positive change
There is need for Sunderland to identify the need for change, the areas of conflict such as Morgan’s insubordination and the conflict between her and Morgan. Employees’ poor comprehension of Attain’s communication policy, employee roles and responsibilities, respect for authority, better working relationships between employees, and the need for all employees to work as a team toward achieving organizational goals and objectives.
To initiate positive change, it is important for Sunderland to define a clear change management strategy. The strategy should encompass the scope which includes the people who are affected. In this case, the people in the management hierarchy seem to be the source of conflicts, with the typical example being the conflict between Morgan and Sunderland. In addition, the conflict between the two parties seems to have created a group of employees loyal and positively regarding Morgan, while other employees regard Sunderland as being too hard and cruel on them.
The tools and techniques used in bringing about change should include a definition of the scope, which in this case should cover the entire organization. Sunderland should clearly understand the size of change required the number of people to be affected, and decide if the change should be gradual or radical.
According to the case study, the change should be gradual to ensure each member is prepared for change and understands the need for change not to make employees discontented with Sunderland’s management approach which could destroy their morale. It is also because different management styles are practiced by different leaders, which needs a participatory approach to change employee perceptions.
Sunderland should identify areas that may lead to resistance to change, evaluate the value system that could be brought about because of initiating change, and understand the background of each employee.
In particular Morgan’s background is critical in initiating a positive change in him regarding subordination to authority and compliance to organizational communication policies and other policies that might be created regarding employee interactions with clients. It is important for Sunderland to create a qualified change management team who understand the need for change.
A communication plan is critical to create employee awareness on the need for change and in being part of the change process. Each employee should be sufficiently made aware of the risks involved if change is not initiated and the reason for being part of the change process. To be effective, Sunderland should formulate a change management plan that factors different audiences, stakeholders, and the employees in general.
Sunderland should start the positive change process by educating to level management team, then middle level managers and supervisors who could be at a better position of educating employees for the need for change.
A training requirements document should be developed which provides precise and detailed management requirements, skills and knowledge requirements, and the need for each supervisor to develop specific training programs for change.
It is important for the change to be effective in maximizing a return on investment, by identifying the impact that the change will bring to the organization in terms of its performance of the core business pursuits. At the end of the change process, Sunderland and the change management team should measure the impact caused by introducing new changes to the organization. The area of focus should be change in employee behavior which is the basis of making positive and effective changes.
