The vital purpose of this piece is to investigate the correlations between the behavior demonstrated by the employees in the workplace and their satisfaction levels with the jobs (Bateman & Organ 1983). It should be said that it is a fascinating subject matter that is still actively being studied.
The research is so important because the impact of worker satisfaction with aspects of their jobs on their workplace behavior has not been thoroughly studied. It is especially critical to investigate the influence of this factor on voluntary commitment because it is one of the core aspects that are necessary for the workplace environment.
It should be said that operational citizenship behavior is often undervalued, and many organizations struggle when trying to promote it among the employees. The information that was collected can be used to understand the importance of certain aspects of worker satisfaction levels.
It is imperative that the researchers have chosen individuals of different professions as their subjects to minimize possible errors in statistics. The questionnaire was used as a primary research method for this study (Bateman & Organ 1983). A researcher has collected the information about job satisfaction levels of employees in different departments, and the instrument includes 72 items (Bateman & Organ 1983).
Also, supervisors have rated their behavior that was recently shown in the workplace according to a scale that consisted of 30 items (Bateman & Organ 1983). Such methods of analysis as cross-legged and static were used to determine the relationships between the positive workplace attitude and all the aspects of satisfaction (Bateman & Organ 1983). This approach is rather interesting and may provide essential information for further studies.
The results of the analysis are very intriguing. The main findings have shown that there are most likely positive correlations between the behavior of employees and facets of satisfaction (Bateman & Organ 1983). Supervision and promotions were the most important variables, and they seem to have a greater impact on the attitude of the workforce than such factors as work, co-workers, and pay levels (Bateman & Organ 1983).
However, it is necessary to note that researchers think that there is a need for further study because the sample size was relatively small, and the duration of the study was not as long as it has to be to receive reliable data (Bateman & Organ 1983). Also, the fact that the behavior of individuals may be affected by such aspect as work environment and personal qualities should not be disregarded.
The dissimilarity between the number of female and male participants also should have been addressed because the difference is significant, and it may have had an enormous impact on the outcome of the research. It is quite important to discuss the importance of some satisfaction factors. There is nothing that affects the behavior of an employee more than a comfort with supervision, and it can be viewed from the perspective of psychology.
An individual strives to maximize the effectiveness of his or her or work through different activities that are not part of their responsibilities to make sure that their image is positive from the perspective of administration. Bateman and Organ (1983, p. 588) claim that ‘supervisors presumably value such behaviors because, in part because they make their own jobs easier and free their own time and energy for more substantive tasks’.
Differently put, the perception of an individual that demonstrates such attitude can only be positive by the administration. However, one may view such actions as unnecessary, not significant, and would not change anything if he or she is not satisfied with supervision. Also, it is not surprising that promotions have a huge influence on the behavior of the workforce. Every individual needs to be motivated, and there is nothing that motivates more than opportunities for career advancement.
Voluntary commitment is viewed as one of the essential factors that affect the promotion from the point of view of both workers and administration. It is also interesting that the satisfaction with work is the least significant factor according to this study. It is possible that most individuals that participated in the study did not actually like their jobs, and it may be viewed as one of the reasons that caused such results.
The impact of relationships with co-workers is also not as huge as expected. However, it should be noted that it is extremely dependent on the profession, and it was not considered during the research. Satisfaction with pay is also an important factor that did not show such big influence on the attitude of employees as others.
It is quite reasonable because it should not be viewed as the best way of motivation, and it is acknowledged by managers all over the world. Nowadays, supervisors are much more interested in voluntary commitment than they used to in the past, and it is considered as a paramount aspect of the successful career.
I have learned from this article that it is imperative to consider satisfaction levels of workers to make sure that they demonstrate operational citizenship behavior. It is necessary to understand the ways in which this information can be used to maximize the efficiency of employee performance management. It is essential because it is evident that there is a significant correlation between the satisfaction of the workforce with the administration and voluntary commitment.
The supervisor needs to build solid relationships with employees to make sure that they are fully committed to their jobs. Numerous factors that affect the satisfaction of workers with the administration should not be disregarded. The supervisor needs to make sure that he or she is viewed as a role model, and relationships with workers should be developed. Promotional opportunities should also be provided, and a manager needs to understand their importance.
Other aspects of worker satisfaction should not be disregarded because there is a possibility that they are closely connected to each other. However, management activities should be dependent on the business and unique qualities of the employees. For example, satisfaction with pay may be a deciding factor for a group of workers, and such possibility should be considered when making decisions. Also, I have learned that it is also possible to use similar questionnaires in an organization to determine satisfaction levels of workers.
Modern software can be used to store and process collected data. It is so paramount because it is necessary to know the issues that are present in a company, and they should be addressed if they negatively affect the attitude of workers. Overall, I think that this information was quite beneficial for me, and it is imperative to use such principles in employee performance management to improve the workplace environment.
Reference List
Bateman, TS & Organ, DW 1983, ‘Job satisfaction and the good soldier: the relationship between affect and employee ‘citizenship”, Academy of Management Journal, vol. 26, no. 4, pp. 587-595.
The duties of a management demand outgoing, elite, and sociable people. A manager must create an organized society that respects his/her decisions by upholding the key ideologies he or she sets (Mosadeghrad 2012). The attainment of such an attribute does not appear stringently in a moment. It is a character that is earned through continued working experience.
It involves becoming part of that society and understanding the requirement of such a community. The problem addressed in this paper involves how people can trust and be reliant to their manager as the centre of decision-making.
How can a manager motivate and boost the confidence of employees and other people in an organization? In a bid to answer this question, a case study on the personal attributes has been evaluated in respect to management.
Personal Assessment
Strength
This module has been a source of many lessons that form the base of self-assessment. While conducting a personal evaluation, I noted that I have various attributes that can lead to successful management. In my management, I guide through doing what I expect my juniors to accomplish. In this regard, I exercise participatory management where the manager participates actively in the activities of a team.
This practise helps in analyzing the capabilities of the team members in order to assign them with appropriate roles (DuBrin 2004). For example, I have been a leader to an academic group where we were conducting research on the qualities of a good manager. During the study, we interviewed various departmental heads in the university in order to obtain their opinions towards proper management.
During the interviews, I participated in the recording of data while my colleagues asked questions to the staff. I took this minor role rather than interacting with the heads orally. It allowed the group members to improve their interpersonal communication and oral skills. In addition, the other group members accomplished their roles easily because I had set the pace. It was a perfect example of how managers should lead.
In fact, it was one of the ways that my colleagues learned about humility, dedication and active participation. Secondly, I noted that I was a motivational leader who hardly gave up when situations were very tough. In regard to this study conducted with my colleagues, there were very many difficulties because the departmental leaders were busy.
For instance, we found the offices closed when trying to look for the lecturers in charge of the departments. However, I remained optimistic and persuaded my colleagues to find an appointment despite the prolonged absence.
Poor Attributes
Despite the good attributes, I realized that there were various aspects that impair my management skills. In this case, one of the main poor aspects was the lack of accommodativeness. I did not give chance to the opinions of other people. In fact, I entered into frequent arguments in order to convince them on the viability of my idea rather than understanding their sentiments. I was tempted to make decisions alone and implement them.
This personality had developed a tendency of willing to implement the opinions I had provided and discarding the ones provided by other people. This behaviour had impacted on the unity of the academic group which I was leading for one year. The effect of this vice was neutralized by the validity of my opinions because I mostly provided viable ideas. However, it was not right to believe in personal opinions resolutely.
This behaviour was one of the main attributes that I had to eliminate in order to attain a highly reputable and effective management. Another vice that impact on the effectiveness of my management skills is the incapability in solving conflicts between team members (Eunson, 2007). When I was solving conflicts, I tended to favour one party over the other in accordance to my personal preferences and morals.
For example, I was tempted to make a premature judgment on a person’s identification about whether they had made mistakes in the past. During my research for this module, I realized that conflicts should be considered individually. When solving conflict, managers should not use past perception to adjudge a case. Instead, they should consider the aspects of that conflict as a separate case from the past ones.
Analysis
Creation of a Vision
The most fundamental requirement of good managers is the power to create a vision for the companies. This requirement is based on the premises that an organization is formed on the basis of a vision. The vision comprises of common objectives of the company that defines what all stakeholders should attain (Bass & Riggio 2006).
Additionally, all roles of various stakeholders are based on a common objective of the company. In fact, this objective is regarded as a real factor of motivation because all employees aim at attaining it. Therefore, it shows evidently that the vision defining the organizational objective is a core factor that determines the progress and success of the company.
Power of Influence
The second most important requirement of a good manager is the capability to influence people. First, managers should influence the stakeholders when solving external and internal conflicts of an organization (Bush 2003).
Essentially, conflicts paralyze the operations of an organization substantially. It reduces the willingness of various stakeholders to work together, socialize, and settle dispute harmoniously. As a result, the manager should have the capability to influence the conflicting parties through showing the importance of reconciling and working in harmony.
Managers who cannot influence their subjects cannot solve conflict among stakeholder because they do not pay tribute to him/her. While considering the power of influence, it is important to remember that the manager must lead by example in order to influence the followers.
Leading by example imply that the manager implements strategies, keeps promises, and follows the regulation like other employees. Second, managers need this power in order to introduce change in an organization.
Team Building and Management
A manager should be capable of harnessing the diverse aspects and using them as opportunities rather than aspects of the division. It also means that the managers have to unite the employees regardless of their cultural backgrounds, religions and experiences. The three ensure that the employees focus on the common organizational objectives rather than their difference.
Therefore, they became part of one community pursuing a common goal that unites them. This aspect needs the manager to adopt very efficient strategies that could unite accomplish this task successfully. In fact, the ideology of uniting employees and other stakeholders is the most fundamental aspect of building a team.
Transformative
It is essential for a manager to adopt a transformative approach of management. The theory of transformational leadership states that a good manager should aim at transforming the face of the organization (Trompenaars & Voerman 2009). In this regard, the manager must transform the ideologies of the employees, their dedication, and principle of the organization’s behaviour in a positive way.
References
Bass, B & Riggio, R 2006, Transformational leadership (2nd ed.), Erlbaum Associate Publishers, Mahwah.
Bush, T 2003, Theories of educational leadership and management (3rd ed.), Sage Publications, London.
DuBrin, A 2004, Leadership: research findings, practice, and skills (4th ed.), Houghton Mifflin, New York.
Eunson, B 2007, Conflict leadership, Wiley Publishers, Milton.
Mosadeghrad, A 2012, Towards a theory of quality management: an integration of strategic management, quality management and project management, International Journal of Modeling in Operations Management, vol. 2 no. 1, pp. 89.
Trompenaars, F & Voerman, E 2009, Servant Leadership across Cultures Harnessing the Strength of the World’s Most Powerful Leadership Philosophy, Infinite Ideas Ltd, Oxford.
This report involves the identification of the issue faced by Land Rover, which is a well-established automobile company. Despite its market existence for a considerable duration, the Land Rover Company has experienced a major increase in customer complaints over the past two years due to the quality of some of its automobile products.
This issue is well illustrated by the firm’s decision to recall some of its automobiles in the market. For instance, in China, the firm recalled 36,000 automobiles. This report assesses the alternative organizational leadership aspects that the firm should have considered in order to limit the occurrence of such issues.
The major alternatives reviewed include relationship management, teamwork, and total quality management. The strengths and weaknesses of the respective alternatives are identified and evaluated. Finally, a number of recommendations and the action plan that the firm should consider in its strategic management are identified and explained. Introduction
The Land Rover Company has been in existence in the automobile industry for a considerable duration since it was founded in 1948. The firm mainly specializes in the manufacture of Jaguar Land Rover brand. The firm has undergone considerable changes over the past decades.
In 2008, the company was purchased by Tata Motors. Land Rover has successfully produced a series of models over the past decades. Some of its renowned models include Discovery 4, Range Rover SUVs, Defender, and Freelander 2. Consequently, the firm has gained considerable global reputation. Land Rover accounts for over 75% of the Jaguar Land Rover sales. The firm generates most of its sales from the North American, European, and the Chinese markets.
The company is committed to attaining extensive market penetration. In its Chinese market, the Land Rover established a new manufacturing plant outside Shanghai. The plant will specialize in the manufacture of Land Rover Evoque. The firm intends to capture 10% of the Chinese premium SUV market.
Problem Statement
Despite its past success, the Land Rover has experienced a major challenge over the past year, which forced the company to recall a number of automobiles from the market. In March 2015, the company announced its decision to recall 36,451 cars of the total vehicles manufactured and imported between June 3, 2013 and December 24, 2014.
The company’s decision to recall the automobiles arose from the identification of a major problem with the brake vacuum hose. According to the company, failure to address the problem might limit the affected automobile braking capacity, hence increasing the distance required to stop the automobile successfully.
This aspect means that the risk of crashing under such circumstances is considerably high. Additionally, some of the vehicles imported into different markets such as China were reported to be characterized by varied malfunctions. For example, some of the vehicles had faulty gearboxes, which made the gearshifts noisy.
Despite the Land Rover’s decision to recall the affected automobiles, the firm did not act voluntarily. On the contrary, the company was forced to implement the decision after the customer complaints were publicized by some media houses. One of the most notable cases relates to China whereby the firm only responded to the customer complaint after the issue was highlighted by the China Central Television.
The company accepted its knowledge of the problem and apologized only after the issue was broadcasted. Due to the highlight of the issue by the China Central Television, Land Rover was forced to recall 36,000 Jaguar Land Rover models that were imported into the Chinese market. Customer complaints entail transactional events and comprise a fundamental element in fostering and sustaining a strong customer relationship.
The above aspects illustrate the existence of significant gaps in Land Rovers’ strategic management and leadership practices. First, the firm is not optimally committed to addressing the issues raised by customers. Secondly, the company has not implemented effective strategies to maintain the quality of its products. These issues might affect the organization’s global reputation adversely, hence its market success. Therefore, the Land Rovers’ management team should integrate effective leadership strategies.
Purpose and Organization of Report
This report seeks to evaluate the alternative issues that Land Rover should have considered in order to avoid such occurrences. One of the fundamental issues that the organization’s management team should consider entails the management of corporate reputation. This report is organized into a two main sections, which include the alternative analysis and the recommendations and the action plan section.
The alternative analysis section involves a discussion of the legitimate alternatives that the firm could take. Additionally, the strengths and weaknesses of all the identified alternatives are evaluated. Moreover, the evaluation of the alternatives further entails the identification of the decision criteria used to formulate the alternatives. The recommendations section involves the decisions that the organization should integrate.
Alternative Analysis
Relationship Management
The issue encountered at Land Rover shows that the firm has not fully appreciated the importance of synchronizing its operations within the external environments. The firm only acknowledged the existence of the problem only after the issue was broadcasted by the Chinese national television.
In the course of implementing strategic management practices, it is imperative for organizations’ management teams to consider the different issues arising from the external market. One of the most important aspects that the Land Rover’s management team should have considered entails customer relationship management. The organization’s failure to address the complaints raised by customers underscores the fact that the firm does not fully appreciate the significance of customers in the organization’s quest to achieve long-term excellence.
The prevalence of the customers’ complaints regarding the firm’s products might affect the organization’s capacity to develop a strong global reputation. Subsequently, the firm might not generate adequate sales revenue to promote its long-term growth. In order to avert such issues, it is imperative for the organization to integrate the concept of relationship management, which emphasizes a number of dimensions.
The core dimensions include communication, teamwork, cooperation, and customer relationship management [CRM] in its strategic management practices. According to Rajola (2), CRM refers to the process used by organizations in understanding and managing relationship with its customers. CRM constitutes a fundamental business strategy that links an organization’s internal functions and processes with the external networks to create and offer high value to the target customers.
The concept of CRM would have played a fundamental role in assisting the organization to nurture a strong long-term relationship with its customers. Moreover, integrating the concept of CRM would have played an essential role in assisting the firm to address the complaints raised by the customers effectively.
By focusing on the concept of CRM, the Land Rover would have entrenched the customer-centric business culture successfully. The customer-centric culture is focused on attracting and retaining customers. However, this goal is only possible if an organization delivers value to customers as opposed to its competitors.
Past studies show that the customer-centric culture is only possible if an organization’s management team focuses on implementing effective leadership behaviors. Additionally, studies show that customer complaints are a key component of an organization’s existence. One of the core sources of customer complaints relates to product failure, hence limiting an organization’s ability to attain the desired value.
In the event of an organization failing to address the issues raised by customers, they are likely to resort to raising the complaints with third parties through diverse mediums. This situation is well illustrated by the situation faced by the Land Rover. Such occurrences might affect the organization’s corporate reputation negatively. Therefore, it is imperative for organizational leaders to ensure that the complaints raised are addressed effectively.
By integrating the concept of CRM, the Land Rover would have been in a position to manage the complaints raised successfully without risking the development of negative reputation. However, in order to achieve this goal, the organization should consider entrenching diverse crisis and reputation management concepts such as apologia and image restoration.
Moreover, the concept of CRM would have fostered the organization’s ability to retain its customers. Consequently, Rajola (2) argues that the firm would have been in a position to develop a strong degree of product loyalty. Effective complaints handling is essential in pre-empting the occurrence of negative outcomes. The Land Rover’s management team should have considered the concept of CRM as one the critical elements in generating sufficient sales revenue.
In a bid to benefit from CRM, the Land Rover’s management team should have considered undertaking remarkable investment in CRM. Amongst the issues that the organization should have considered entail investing in effective Information Communication Technology (ICT).
By automating its customer service, the firm would have been in a position to develop a strong customer relationship. In a bid to achieve this goal, the organization’s management team should have considered investing in the CRM software. Different organizations have undertaken extensive investment in the CRM software in an effort to synchronize the internal and external environments in their strategic management practices.
The implementation of the CRM software improves an organization’s ability to handle and coordinate its inbound and outbound communication activities. This goal is achieved through the integration of different channels of communication.
Furthermore, most organizations that have invested in service automation over the past decades have developed service quality, improved the level of customer satisfaction, and minimized the cost of operation. In its pursuit for to deal with customer complaints through service automation, the Land Rover’s management team should have considered investing in the development of a call center.
The call center should have acted as the initial point of contact between the firm and its customers. In most cases, call centers are designed effectively to assist organizations in diagnosing customer problems. An example of technologies that the firm should have implemented includes the Interactive Voice Response [IVR]. The IVR enables customers to raise issues or complaints by interacting with the organization’s computers. The information gathered through the IVR should be used in undertaking customer relationship management.
In order to manage the customers’ complaints successfully, the organization should have considered undertaking an extensive analysis of the issues raised. This aspect means that the firm should have entrenched the concept of analytical CRM. Through this approach, the firm should have considered utilizing marketing data such as customer relationship.
In its quest to understand the prevailing customer opinions and responses towards its products, it is imperative for Land Rover to utilize emerging social mediums in collecting and developing market intelligence. Some of the social media platforms that the firm should have considered include Facebook, Twitter, LinkedIn, and YouTube.
Contemporary consumers are increasingly using social media platforms in communicating and sharing product experience with their colleagues. Therefore, failure to manage the issues raised through social media platforms might affect the organization’s corporate reputation negatively.
Teamwork
In a bid to achieve this goal, the firm should have ensured that all the organizational departments are customer-centric. Through this approach, the various departments would have ensured that their activities are focused on delivering high value to the target customers. Consequently, the likelihood of defects occurring in the final products would have been minimized extensively.
In order to attain a high degree of customer focus, the organization’s management team should have integrated effective leadership. First, the organization should have ensured that all the organizational employees understand the importance of attaining a high level of customer satisfaction in order to achieve long-term excellence.
Achieving this goal requires the firm to inculcate a culture of teamwork. Culture underscores to the common values and beliefs that an organization has integrated into its operations. Through the successful incorporation of teamwork, the Land Rover would have been in a position to entrench information sharing amongst the various departments. The concept of teamwork would have enabled the firm to deliver quality service to employees.
Teamwork contributes towards improved attentiveness in improving the employees’ capabilities and motivation. Therefore, the organization would have been in a position to undertake successful product development due to information sharing amongst the various departments. Such consideration would have contributed towards the development of a high level of synergy in the manufacturing process, hence delivering value to customers.
Total Quality Management
One of the major reasons that spurred the recall undertaken by Land Rover entails poor quality of some of its automobiles. The organization’s failure to manufacture high-quality automobile illustrates the existence of a significant lapse in the organization’s total quality management process.
Charantimath (3) holds that the implementation of total quality management in organizations is greatly dependent on the effectiveness of the top management team. Leadership comprises an essential element in organizations’ quest to implement different organizational strategies and action plans.
Different scholars in total quality management affirm that leadership cannot be delegated. Therefore, the Land Rover’s management team should have focused on developing a strong leadership. Literature shows that strong visionary leaders are fundamental in entrenching efficient quality management approach.
In a bid to achieve this goal, the organization’s management team should have considered a number of issues. One of the most important elements that the firm should have considered in entrenching a culture of quality management entails promoting a high level of commitment and vision amongst the employees. This assertion arises from the view that employees are largely involved in the production process.
The organization’s management team should have established aggressive targets. This aspect means that the firm should have entrenched a strong degree of focus amongst the employees towards quality. Moreover, the organization should have ensured that all employees understand the quality benchmarks in order to ensure that the final product contributes to the development of a high degree of customer satisfaction.
In its total quality management, the firm should further ensure that the products progress through a comprehensive quality process. The process should be comprised of quality control and assurance. In a bid to ensure that the quality of the final product meets the customers’ needs, the organization should integrate an effective criterion in selecting the source of its raw materials.
Charantimath (4) posita that one of the issues that the firm should consider in selecting the raw materials entails quality. This approach will play a fundamental role in minimizing the likelihood of the firm producing its automobile from substandard raw materials.
Strengths of the Alternatives
Corporate Reputation
By considering the above issues, the organization will be in a position to improve its global corporate reputation. Consumers have increasingly become more conscious of quality in their consumption process. Therefore, failure to meet the customers’ quality expectations can affect an organization’s ability to generate sales revenue. This trend has arisen from the association of quality with value for money. Therefore, investing in the above strategies will play a fundamental role in promoting brand loyalty.
Investment in teamwork will further promote the organization’s corporate image both internally and externally. This goal will be achieved by integrating the different crisis communication techniques such as apologia, image restoration, and impression management. The concept of apologia constitutes one of the most important aspects used by organizations in managing corporate reputation in the event of a crisis. Under the concept of apologia, an organization accepts the complaints or the issue faced.
Despite the fact that the organization accepted the existence of some problems in some of its automobiles, the apologia was not timely. However, it resorted to apologia only after the issue was raised through the media. The consideration of the identified aspects will improve the organization’s capacity to attract and retain human capital from the global labor market.
Promoting Corporate Social Responsibility
In the course of their operation, organizations are required to operate ethically. One of the ethical dimensions that business entities should consider relates to customer safety. Focusing on total quality management will ensure that the final product meets the customers’ safety requirements.
Customers within the target market will develop the perception that the firm is not only concerned about profit maximization, but also on consumer protection. Thus, considering the aforementioned approaches, Land Rover will improve its market rating remarkably with reference to corporate reputation.
Customer Involvement
Investing in relationship management will enable Land Rover to be effective in promoting a high level of customer loyalty. This goal will be achieved by entrenching effective crisis communication. This assertion arises from the fact that the customers will feel valued as a critical component of the organization.
Apart from the organization’s contribution to addressing the complaints arising from the customers, investment in customer relationship management will also play an essential role in enhancing the organization’s ability to develop and exploit market intelligence. This goal will be achieved by using the complaints and compliments raised by customers as a source of knowledge. Therefore, the organization will improve its effective in being proactive about issues that arise in its quest to deliver a high level of customer satisfaction.
Moreover, the firm will be in a position to develop an effective knowledge repository. This goal will be achieved by developing an effective database using the different Information Technologies. Therefore, the firm will benefit from effective knowledge management. .
Weaknesses
Despite the benefits associated with the proposed alternatives, the firm’s management team must appreciate the existence of weaknesses. Some of the possible weaknesses that the firm might encounter in implementing the alternatives are evaluated herein.
Security of Information
Relying on Internet-based technologies in gathering market information relating to customer opinion might be limited by the existence of cyber security. Currently, cyber security threats have increased considerably, hence affecting the reliability of data generated through online platforms. The reliability of online platforms may be compromised if the platforms are hacked by competitors. Moreover, the effectiveness of security may further be affected by the organization’s failure to implement effective online security measures.
Resistance
The process of implementing the identified alternatives will require the firm to undertake considerable changes. Implementing the concept of total quality management and relationship management will require the firm to make significant adjustments in its organizational culture.
Such changes might trigger resistance amongst employees. The resistance might arise from the fact that employees will be required to integrate new operational strategies, hence triggering stress. One of the fundamental sources of stress in the workplace entails job characteristics. Organizational changes translate into additional job demands. For example, the concept of CRM will require the organization to entrench new standards in order to handle customer complaints successfully.
Cost of Implementation
In order to implement the above alternatives successfully, the organization will be required to undertake extensive investment in developing the necessary resources. For example, the organization will be required to institute a comprehensive investment plan in order to automate its customer relationship management. Failure to automate the firm’s operation successfully will considerably limit the organization’s capacity to achieve the desired outcome.
Recommendations, Action Plan and Implementation
In order to avoid the occurrence of such issues in the future, it is imperative for Land Rover to consider a number of issues as discussed herein.
Total Quality Management
The above analysis cites the lack of effective total quality management in the organization’s operation process. However, the firm should focus on ensuring that its products are of high quality. In a bid to achieve this goal, the organization should invest in extensive total quality management.
The organization should devise an effective action plan based on the Westinghouse Total Quality Model. The model is comprised of a number of steps. Adopting this model will ensure that its pursuit for total quality management is entrenched in leadership. Thus, the firm should nurture a strong organizational culture that is focused on effective and efficient product development. Land Rover should ensure that its employees are involved in the total quality management.
One of the elements that the organization should consider in promoting the employees’ focus on product quality entails communication. In its quest to position itself as a quality-conscious organization, the Land Rover should ensure that the employees’ perception towards quality is positively impacted. The organizational leaders should constantly communicate to employees regarding the predetermined quality dimensions set by the organization.
Through optimal employee involvement in the total quality management process, the organization will be in a position to establish a clear vision for the desired outcome. Moreover, the organization will be highly proactive in addressing the quality issues raised by various departments. Consequently, the firm will ensure that the products introduced into the market contribute to a high level of customer satisfaction.
Leadership
In its pursuit for business excellence, the organization’s management team focuses on establishing effective leadership across the various organizational departments. The organization’s management team should integrate charismatic leadership style. The quality of the leader considerably affects an organization’s ability to influence their followers/ employees.
Adopting charismatic leadership style will aid in the development of a strong sense of vision amongst employees. Consequently, the employees will be committed to ensuring that the organization’s operation process contributes to the attainment of the set organizational goals.
Customer Service Training
Despite the fact that the organization acknowledged the existence of the quality complaints raised by customers, no proactive measures were undertaken to resolve the issue. Therefore, it is evident that the organization’s employees did not possess adequate knowledge on how to address the complaints successfully.
In order to address this challenge, it is imperative for the organization to invest in extensive customer service training. The training process should focus on delivering optimal customer service. In order to train its workforce successfully, the organization should seek expertise from well-established consultancy firms. This move will enable Land Rover to address the existing gaps in its customer service delivery.
In order to foster customer service in its operations, the Land Rover should implement the internationally accepted standards of quality. One of the most important standards that the firm should consider entails the ISO 10002. This standard will provide the firm with an effective framework that it can adopt in addressing the complaints raised by customers.
References
Charantimath PM. Total quality management. 2nd ed. Delhi, India: Pearson; 2011. 589 p.
Rajola F. Customer relationship management: organizational and technological perspectives. Berlin, Germany: Springer; 2013. 188 p.
Organizations are complex entities that often precipitate diverse thresholds of engagement. They embody pertinent facets of operation that require accuracy and probity.
In order to guarantee efficiency and productivity in organizations, it is essential for authorities to understand and exemplify appropriate managerial skills (Griffin, 2013).
Most operations revolve around organizational behavior and ability to uphold consistent patterns of action and reaction with regard to situations that arise within organizational entities.
Successful organizations endeavor to initiate and propagate systems that accentuate vital aspirations as articulated in their vision and mission statements (Griffin, 2013).
In absence of such efforts, organizational entities fail to realize their mandate and responsibility within recurrent areas of operation. It is essential for organizations to understand how institutional practices affect actualization of various ideals and aspirations (Griffin, 2013).
However, dichotomy of organizational behavior relates to daily practices that suffice within organizations. Such practices reflect cumulative benefits that determine future organizational prospects (Griffin, 2013).
This research undertaking seeks to analyze organizational behavior with regard to United States Marine. It will evaluate parametrical thresholds that govern operations within its jurisdiction.
It will highlight organizational culture, inherent modes of communication, and nature of authority in relation to the U.S. Marine.
In order to achieve the aforementioned objectives, this research paper will synchronize ideas from reputable and authoritative scholarly publications.
Organizational culture in the U.S. Marine
Organizational culture plays an important role in determining and guiding performance with regard to organizational entities. Culture necessitates strict adherence to patterns of behavior that define essence and rationale for organizational success in diverse thresholds of operation (Griffin, 2013).
Organizational leaders guarantee retention of cultural orientation in order to bolster overall desire for success and accomplishment. Therefore, all organizations have cultural orientations that define their position in relation to various areas of interest (Griffin, 2013).
Similarly, the United States Marine harbors distinct cultural patterns of behavior that characterize operations and engagements. Since its inception in 1775, the United States Marine has honed appropriate cultural thresholds that inspire action and reaction to diverse situations within the force.
The organization focuses on inspirational practices that create a coherent value system among its employees (Griffin, 2013).
In contemporary society, there is disregard for cultural values and practices. There is little or no effort towards retention of cultural and value systems that guide behavior among individuals.
On the contrary, the United States Marine espouses cultural values that define daily undertakings in diverse fields of operation (Griffin, 2013). For instance, neatness is an integral value within the organization. All marines must uphold neatness in their daily undertakings.
This cultural value is essential in character formation and development of traits that enable performance within organizational jurisdiction (Griffin, 2013). Discipline is another significant cultural value that defines operations within the United States Marine.
Through discipline, officers ensure strict adherence to organizational parameters that guide operations. It is difficult for officers to operate in absence of discipline and ability to follow instructions.
Officers must fulfill daily expectations through discipline and adherence to regulations. This cultural value ameliorates service delivery and realization of diverse ideals and aspirations (Griffin, 2013).
The United States Marine also encourages punctuality in all organizational undertakings. Rationale for punctuality revolves around willingness and ability to observe directives that emanate from superior officers within the force. Marines must also conduct duties with sense of pride (Marutollo, 2007).
This value seeks to ameliorate perceptions within and without the force. Perception is important because it determines how officers handle duties and responsibilities at the workplace (Marutollo, 2007). It also defines external relations with citizens.
Lack of organizational pride affects delivery of services and relations with stakeholders. Courage and loyalty are crucial components with regard to operations within the United States Marine. Marines should act with courage in situations that exhibit complex realities (Marutollo, 2007).
Devoid of courage, it would be difficult for officers to deliver on various duties and responsibilities. On the other hand, loyalty enables officers to receive and act on orders from seniors within the force. Other important cultural values include respect, responsibility, humility, and unity (Marutollo, 2007).
As earlier mentioned, organizational culture is an integral determinant with regard to success and accomplishment in diverse areas of operation. It defines creation and propagation of appropriate patterns of behavior that bolster realization of basic ideals and aspirations (Marutollo, 2007).
The United States Marine has a distinct organizational culture that creates impetus for accomplishment. The United States Marine espouses pluralism as its organizational culture.
Under this premise, organizations develop and sustain distinct cultural thresholds that define operations within their jurisdictions (Marutollo, 2007). Pluralism is advantageous to the United States Marine because it enables officers to focus on duties and responsibilities within the organization.
Officers construct and propagate a common identity that guides execution of duties within organizational contexts. Therefore, pluralism guarantees focus and dedication to duty with regard to United States Marine (Marutollo, 2007).
Organizational communication in the U.S. Marine
Communication is a vital component with regard to operations within organizations in contemporary society. Through communication, individuals coordinate and appraise various thresholds of performance and conduct with regard to diverse organizational contexts (Marutollo, 2007).
In order to achieve favorable results, organizations must develop structural and institutional frameworks that bolster realization and propagation of positive outcomes.
Proper communication accords opportunity for relevant action towards actualization and consolidation of pertinent ideals and aspirations with regard to organizations (Marutollo, 2007). Communication supports operations within and without organizational entities.
For instance, internal communication occurs among employees in an organization. On the other hand, external communication occurs between an organization and stakeholders (Marutollo, 2007).
Both realms of communication are vital in relation to realization of primary goals that suffice in diverse contextual thresholds.
Most organizations ameliorate communication through deliberate measures and practices that accentuate delivery and reception of cues from different thresholds of operation (Marutollo, 2007).
Like other organizations, the United States Marine supports appropriate communication models that improve delivery of services in vital areas of engagement.
Due to its nature and orientation, the United States Marine anchors on effective communication channels that guarantee flow of information regarding crucial areas that characterize various operations (Marutollo, 2007).
The dichotomy of communication complicates choice of appropriate model for such functions. It is essential for organizations to consider realities that suffice in their operations.
For instance, certain situations require written communication, while others require oral communication. Choice of communication model depends on organizational objectives and desired outcomes.
Therefore, organizations should structure operations in a manner that accentuates basic ideals and aspirations (Marutollo, 2007).
Within the United States Marine, communication is usually verbal due to nature of operations. In most cases, junior officers receive instructions from senior officers through face to face engagements. The hierarchical structure of the organization necessitates such mode of communication (Marutollo, 2007).
Verbal communication is appropriate for the United States Marine because it improves relationship between officers. Most operations within the organization involve dissemination of orders from superiors. In such instances, written communication does not suffice because it is slow and bureaucratic (Marutollo, 2007).
Most orders require immediate delivery and reception because they entail emergency situations. It would not be feasible for authorities to engage in written communication during urgent engagements. However, written communication occasionally suffices with regard to issues that are less urgent.
Verbal mode of communication is advantageous for the United States Marine because it is assertive and fast. It creates the impetus for action and reaction to issues and situations that require immediate attention (Marutollo, 2007).
Nature of authority in the U.S. Marine
Authority and command are very important in contemporary organizational contexts. Organizations harbor hierarchical structures that facilitate dissemination of orders and responses across various levels of organizational command.
In absence of authority, it is difficult for organizations to pursue and actualize pertinent goals and aspirations (Singh, 2009). Besides dissemination of information, authority facilitates creation of appropriate channels that anchor delivery of services.
Most hierarchical structures enable organizational leaders to conduct regular appraisal with regard to internal and external operations.
Organizational leaders appreciate rationale for authority because it accords them opportunity for actualization and consolidation of internal affairs with regard to diverse areas of engagement (Singh, 2009). Most corporate functions require accuracy and dedication in order to guarantee efficiency.
The United States Marine is hierarchical and dependent on issuance of orders in relation to daily undertakings. In most cases, officers receive orders regarding various operations that they undertake. Officers adhere to such orders and directives through positive action and reaction (Singh, 2009).
The nature of authority revolves around recognized social ranks. Such ranks facilitate dissemination of information and make it easy for officers to undertake diverse duties and responsibilities. This nature of authority is advantageous because it perpetuates discipline and adherence to orders (Singh, 2009).
In absence of such structural thresholds, it would be difficult for officers to perform tasks that characterize operations within the organization.
On the other hand, it would be difficult for authorities to identify areas that require attention. Evidently, authority and command play a critical role in enhancing operations within the United States Marine (Singh, 2009).
Motivational techniques in the U.S. Marine
Organizational leaders must always strive to understand and apply motivational strategies that guarantee positive outcomes (Singh, 2009). Through motivation, leaders guarantee retention of pride, integrity, and adherence to guidelines that suffice within organizational entities.
Motivation also leads to unity of purpose, especially during difficult tasks that require focus and commitment. Organizational leaders must practice progressive leadership styles that enhance and propagate inspiration among employees and stakeholders (Singh, 2009).
In the United States Marine, unit leaders endeavor to establish methodologies for realization of the aforementioned objectives. In order to guarantee motivation, unit leaders ensure that officers possess appropriate training on values and ideals that suffice in relation to performance.
Poorly trained officers lack ability to withstand pressure that characterizes operations at the workplace (Singh, 2009). Therefore, training creates impetus for positive action and effort towards realization of organizational goals.
Another motivation tool involves seminars and workshops that offer opportunity for officers to learn and internalize their roles in diverse areas of service. Such platforms create impetus for personal growth and progress in critical spheres of service delivery within the organization.
Authorities also reward officers who exhibit exemplary performance in complex situations and circumstances (Singh, 2009). However, they train officers to undertake duties with a view to create change as opposed to reward and recognition.
Unit leaders ensure that officers have confidence in their abilities and competence. This augments overall desire for dedication and willingness to undertake complex duties and responsibilities within the force. Consequently, this boosts morale and strength to counter difficult situations (Singh, 2009).
Basic motivational principles in the United States Marine include proper training, reward programs, satisfaction, provision of requisite on-job tools, provision of necessary information, promotion of unity, and avoidance of prejudicial activities among officers.
It is important to note that most motivational techniques within the United States Marine are intrinsic (Singh, 2009). Such intrinsic thresholds are essential because they promote cohesion and unity of purpose among officers.
For instance, authorities organize counseling sessions that offer opportunity for officers to receive guidance on various issues that manifest in daily operations. Officers undergo tortuous situations that ultimately affect morale and levels of motivation (Singh, 2009).
Counseling plays an important role in guaranteeing moral support for officers. Such motivation empowers officers in their pursuit for success and accomplishment in diverse areas of engagement.
Authorities must appreciate the relevance of motivation with regard to actualization and propagation of core ideals that govern operations within various units in the force.
Devoid of such undertakings, it would be impossible for authorities to consolidate gains that emanate from motivation and dedication to service (Singh, 2009).
Emotional quotient in the U.S. Marine
Emotions are integral components with regard to leadership and appraisal within organizational entities. Emotions affect outcomes that manifest in diverse situations with regard to the workplace.
It is important for organizational leaders to understand how emotional thresholds affect performance and delivery of services within organizations (Mills, 2006). In fact, emotions suffice with regard to human existence in social contexts.
Emotional orientation affects individual and collective thresholds of engagement within organizational settings. Within the United States Marine, there are numerous avenues that seek to appraise and guarantee emotional satisfaction (Mills, 2006).
For instance, the organization encourages teleworking in order to accord officers opportunity for personal growth and satisfaction. Under this arrangement, officers do not necessarily commute to common designations in order to undertake official duties.
This arrangement is relevant because it enables officers to have more time with family (Mills, 2006). It also enhances flexibility and ability to perform duties devoid of unnecessary pressure. Organizational leaders recognize the complex nature of operations within the United States Marine.
They appreciate that officers undergo stressful situations that affect emotional and familial wellbeing (Mills, 2006). Therefore, emotional considerations are critical regarding realization of positive outcomes within the organization.
Decision-making processes should consider emotional factors that affect officers at the workplace (Mills, 2006). Promotion of teleworking creates impetus for rejuvenation and positive action at all times.
Under this arrangement, officers realign with complex realities that manifest within the organization. They also get opportunity to pursue personal interests that ultimately ameliorate performance and productivity with regard to organizational undertakings (Mills, 2006).
Conclusion
Organizational behavior determines extent and nature of service delivery with regard to diverse thresholds of engagement (Mills, 2006). It is important for corporate leaders to initiate structural frameworks that enhance propagation of appropriate culture and patterns of behavior within organizational entities.
Successful organizations endeavor to initiate and propagate systems that accentuate vital aspirations as articulated in their vision and mission statements. In absence of such efforts, organizational entities fail to realize their mandate within recurrent areas of operation.
Evidently, organizational behavior and culture affect diverse orientations within organizational entities in contemporary society (Mills, 2006).
References
Griffin, R. (2013). Organizational Behaviour: Managing People and Organizations. London: Cengage Learning.
Marutollo, F. (2007). Organizational Behaviour in the Marine Corps: Three Interpretations. Newyork: Greenwood Publishing.
Mills, J. (2006). Organizational Behaviour in a Global Context. Toronto: University of Toronto Press.
Singh, K. (2009). Organizational Behaviour: Text and Cases. New Delhi: Pearson Education India.
Evaluating the entire book Organizational behavior: Real research for real managers by Jone L. Pearce, it should be stated that the book is not written in an appropriate level for upper division undergraduate students as the information provided there does not offer the theoretical information layout.
The book is written in an understandable voice which answers the question “So what?” rather then explains hardly known theories and actions. The book under discussion clearly communicates leadership related concepts, especially in the chapters “Managing Performance”, “Managing Incentives”, and “Navigating the Social Scene”.
The author of the book tries to provide the readers with the How-to information directed at practical performance. The main idea of the whole book is to provide the readers with practical and research-tested ideas devoted to people management. The author dwells upon real situations and discussed related issues to make sure that he readers are able to understand how the theory works in practice.
The concepts of leadership discussed in the book are useful and relevant as they dwell upon real problems which deserve attention du to high rate if implementation in the business world. As for me, the book lacks the information about actions leaders should provide in order to feel useful. The working performance of the leaders is really important.
Being able to work in team while completing some specific tasks, many people are not really sure how they are to behave in every day working process and what specific functions they are to perform beyond the managing responsibilities.
Leadership should an inevitable part of those who dared to share the responsibility for the employees (Pearce “Organization and management” 60). I suppose all the problems discussed in the book are appropriate and none of them should be deleted.
The next writing by Jone L. Pearce which should be evaluated is the draft of the 10th chapter for the Organizational behavior: Real research for real managers book which is planned to be published in 2011. The chapter is written in an appropriate level for upper division undergraduate students, professional terms are used along with high level expressions and professional language.
The chapter clearly communicates the leadership related concepts. The main ideas discussed in this chapter deal with the main idea of leadership, the main principles of leadership success, common mistakes made by leaders, the problem of inborn qualities of leadership and those gained by means of hard work, and ideas concerning different situations where various qualities should be applied to.
The information is based on practical discussion and implementation of the theoretical concepts which should be familiar for students. Each of the problems discussed in the chapter are described in detail. There is no need to explain each of them even though, there is much information which may enlarge the chapter.
Leadership is the problem which may be discussed perpetually. I would offer more information about emotional side of the issue and expand the “Harnessing Emotions: Charismatic Leadership” section in the chapter. At the same time, I would delete the section which dwells upon leadership in different cultures. The problem is discussed in the book and there is no need to make a short overview of the problem.
If the author wanted to make a more detailed description of an issue, she should write a new book as I suppose that he problem of leadership in different cultures deserves much more attention than just a section in a chapter. The author fails to make the discussion specialized and considers general concepts which are of no use for understanding the main idea of the chapter.
Works Cited
Pearce, Jone L. “Leading others.” Organizational behavior: Real research for real managers. Ed. Jone L. Pearce. Irvine, CA: Melvin & Leigh Publishers, 2011. Print.
Pearce, Jone L. Organizational behavior: Real research for real managers. Irvine, CA: Melvin & Leigh Publishers, 2009. Print.
Pearce, Jone L. Organization and management in the embrace of government. Oxford: Routledge, 2001. Print.
The concept of management has been studied and explored for centuries. Many business experts have endeavored to unravel the truth behind management of organizations and its overall impact in the business performance. Based on this analogy, it follows that managers play a crucial role in directing certain activities within an organization.
They can either cause an organization to prosper or fall down to its knees, depending on several management principles, which might be adopted (Jones & George, 2007). This case study explores how various organizations get affected by different management patterns, with reference to Lehman Brothers. To attain this objective, several segments will be covered including the company’s profile, history, business growth, growth, crisis circumstances, bankruptcy and its current situation.
Lehman Brothers
Lehman Brothers is one of the companies in the world, which will forever be remembered for its major role in the commercial and financial history of the United States. For more than one hundred and fifty years, the company remained active in the American market, expanding its services to several countries around the world (Ryback, 2012). A close analysis of Lehman Brothers offers insights into how the American market has been transformed through industrial and technological advancement.
Company profile
Lehman Brothers was once a common name on the New York Stock Exchange before it collapsed in 2008. The company specialized in financial services across the world. It is worth noting that Lehman Brothers was ranked as the fourth largest investment organization in the country. The company was widely involved in an array of financial activities, including but not limited to investment banking, private banking, trading and private equity.
At the peak of the global financial crisis in 2008, the company was among several others, which could not survive the crisis. In September 2008, the firm applied for Chapter 11 bankruptcy protection, after a huge number of its clients withdrew from the company. Besides this, Lehman further registered massive losses on the stock market, with most of its assets being devalued by several American agencies dealing in credit rating (Ryback, 2012).
Aside from its outstanding performance in America’s financial market, the organization equally registered the largest bankruptcy in the country’s history. As a result, the company is considered to have contributed towards the global economic crisis, which rocked the world in 2000s.
Following the filling that was done of September 15 2008, Barclays agreed to purchase the company, even though the decision was to receive a regulatory approval to allow change of ownership and management of the organization. The agreement was endorsed by James Peck of the U.S. Bankruptcy Court, a few days after it had been filed.
Importantly, Barclays was to acquire the company’s head office building in New York and several North-American investment divisions. Seven days after this agreement, Nomura Holdings went on record by expressing its intensions to purchase the company’s assets in Australia, Japan and Hong Kong (Ryback, 2012). Additionally, Nomura was to acquire the company’s investments in parts of the Middle East and Europe. The deal was sealed on October 13 2008.
Company History
The history of Lehman Brothers dates back in mid 19th century when, Henry Lehman immigrated to America from German at the age of twenty three years in 1844. While in Alabama, Henry ran a dry goods store, named, ‘H. Lehman’ before it changed to ‘H. Lehman and Bro’ in 1847, when he was joined by his brother, Emmanuel Lehman. Lehman Brothers was finally established in the year 1850, when Mayer Lehman, the youngest brother teamed up in Alabama (Barsch, 2012).
Due to the availability of cotton in 1850s, the three brothers considered it as a form of payment for merchandise. As a result, they started dealing in cotton business, before it expanded to become a leading segment of their operations. Unfortunately, Henry Lehman succumbed to yellow fever in 1855, leaving the business in the hands of his two brothers, who focused on trade and brokerage.
As the cotton business continued to expand, most activities shifted to New York City, where Lehman Brothers launched its first branch office. For effective management, Emmanuel moved to New York City (Barsch, 2012).
The Civil War of 1862 saw Lehman Brothers, team-up with John Durr, a merger that resulted into the birth of Lehman, Durr Co. It is believed that the new company played a major role in the reconstruction of Alabama. Their joint efforts further bred the New York Cotton Exchange in the year 1870. Additionally, the firm explored other fields like the railroad bonds and financial advisory business.
By 1883, Lehman Brothers gained membership for the New York Stock Exchange, where they had their initial public offering in 1899. In 1906, the firm experienced a shift from its partnered with Goldman Sachs, to form the General Cigar Co. under the leadership of Philip Lehman.
The following years saw Lehman Brothers underwrite several issues, in collaboration with Goldman Sachs. In 1925, Lehman Brothers experienced a change in management after Robert Lehman rose to the helm of the company’s management from his father, Philip Lehman. It is during Philip’s time that the company embarked on venture capital as the market continued to grow, moving to the One William Street location (Barsch, 2012).
Lehman Brothers underwrote the initial public offering of Dulmont, which facilitated the financing of America’s Radio Corporation in 1930s. Besides this, they were involved in the funding of other companies like Kerr-McKee and Halliburton. It is believed that 1924 marked a turning point in the running of the company as John Hancock became the first non-family member to partner with the company.
Others who followed suit included Paul Mazur and Gutman Munroe in 1927. Robert Lehman, the last family member to lead the firm died in 1969, leaving a huge management gap, coined with the looming financial crisis (Barsch, 2012). This saw Pete Peterson coming on board to save the situation, based on his management experience at Bell & Howell Corporation.
Under the leadership of Pete, the company experienced several mergers and acquisitions, i.e. it acquired Abraham & Co. before merging with Kuhn, Loeb & Co., which was considered to be financially struggling. The resultant company, Lehman Brothers, Kuhn Loeb Inc. rose to become the fourth leading investment bank. Credit was given to Peterson for leading the company from dwindling performance to reputable profit margins in five consecutive years (HITC, 2008).
Despite the company’s outstanding performance, there was mounting pressure from traders and bankers. This forced Peterson to appoint Lewis Glucksman as the company’s co-CEO in 1983. This was the beginning of management issues as the CEOs conflicted in terms of their management styles.
Consequently, power pressure and poor performance of the company led to the ousting of Peterson, one of the firm’s best CEO. Unfortunately, upset bankers left the company, following management wrangles, which haunted the firm. Although Lehman Brothers had a strong competitive internal environment, it could not overcome the test of time. It was this pressure that compelled Glucksman to sell it to Shearson at $360 million in 1984.
In 1988, the company’s merger with E.F. Hutton & Co. bred Shearson Lehman Hutton Inc. (HITC, 2008). Due to diversification of several firms, most of them were spun off as the organization retained its original name as Lehman Brothers.
The firm’s head offices at World Trade Center were destroyed by the 2001 terror attack, causing it to shift to Manhattan in 2002. The Company got intertwined into the American mortgage lending crisis, which ushered it to the world of bankruptcy in 2008. After it filed a bankruptcy petition, its assets were sold out to several firms like Barclays and Nomura among others.
Business crisis circumstances
According to financial analysts, the housing boom experienced in early 2003 was to haunt Lehman Brothers because of the financial decisions, which were adopted. As a result of the boom, Lehman Brothers ratified a decision that supported the purchase of five mortgage lenders, which included BNC Mortgage and Aurora Loan Services. Unlike other mortgage providers, Aurora allowed borrowing of cash without complete documentation from customers.
The initial stages of the acquisition were quite encouraging as its revenues in the real estate business grew exponentially between 2004 and 2006. It is during this time that Lehman Brothers registered higher profits in real estate than asset management or any other form of banking investment.
By 2006, Lehman Brothers had gathered approximately $146 billion, which translated into an increment of ten percent from the previous year. This trend was to continue up to 2007, when the company registered a historic net income of $4.2 billion, which was realized from total revenue of $19.3 billion (HITC, 2008).
Company miscalculation
By the year 2008, the company’s stock hit a new value of $86.1, which had not been witnessed throughout its history. This meant that Lehman Brothers enjoyed a market capitalization of nearly $60 billion. Nevertheless, there were tangible cracks in the housing market, leading to a rise in defaults, especially on subprime mortgages. After the first quarter of 2007, there were concerns over the high rate of mortgage defaults that was likely to affect the performance of Lehman Brothers (HITC, 2008).
Nonetheless, the concern was followed by the firm’s record profit announcement. Lehman Brothers management, including the company’s financial officer, saw no need of getting alarmed by home delinquencies; they believed that the looming financial crisis was not going to affect their performance. Additionally, the CFO noted that the crisis within the subprime mortgages was not going to affect the country’s economy.
Lehman Brothers Downfall
The credit crisis that started in August 2007 had significant impact on Lehman’s stability as its stocks registered a shocking drop on the stock market. As a result, the company was forced to react by retrenching 2,500 people, who worked in mortgage related sections. In addition, the firm closed down its BNC unit, due to the losses that were already visible, together with Aurora offices in three American states.
Even as the U.S. government erected measures to tame the situation, Lehman Brothers continued to dominate the housing market (HITC, 2008). The firm gathered $85 billion in 2007, which was four times its shareholders’ equity and the leading in the market. This was realized when it underwrote several mortgage securities. While many people expected the company to act swiftly in containing the mortgage crisis towards the end of 2007, no serious action was implemented.
Towards bankruptcy
Unlike other mortgage companies in the country, Lehman Brothers was surrounded by certain factors, which made it more vulnerable to the effects of the looming crisis in America. Its ratio of assets to shareholders’ equity reached thirty one percent in 2007, with enormous mortgage securities.
Bear Stearns’ situation nearly collapsed in March 2008. This caused an alarm that resulted into a drop of up to 48% in Lehman’s status; many thought that Lehman was to follow suit as the second mortgage underwriter to fall (Fitzpatrick & Thomson, 2011). Investors’ confidence in the company slightly increased in April 2008, through an issue of preferred stock, which favored Lehman’s shares. Nevertheless, the trend did not last as managers got concerned with the firm’s mortgage portfolio.
Lehman Brothers recorded a loss of $2.8 billion on June 9 2008. This was the first loss, which the company had registered, from the time it was spun off. Despite this loss, the company’s management announced that a total of $6 billion had been collected from the organization’s investors. Furthermore, its liquidity pool had risen to a total of $45 billion as its gross assets dropped with a margin of $147 billion (Fitzpatrick & Thomson, 2011).
Reaction to the crisis
Lehman’s response to the crisis was considered to be negligible and too late. This included several overtures, which were made to its prospective partners during summer. While these efforts were on, its stock fell by 77% in September 2008, amid poor performance of several markets around the world. It was during this time that investors put the company’s management to task over its intentions to remain independent (Fitzpatrick & Thomson, 2011).
Moreover, the management became hopeless when Korea Development Bank put on hold its pursued interest to purchase a stake of Lehman Brothers. This development was quite devastating; the company registered a 45% fall in its stalks and a further 66% of credit-default swaps.
As a result, several hedge fund clients cut links with the company, together with short-term creditors. Its fiscal performance, which was announced on September 10 2008, emphasized the fact that its financial base was quite fragile due to the unfolding events within the global financial market.
This had led to a $3.9 billion loss and $5.6 billion write-down. In addition, the company’s management saw the need of restructuring its business in order to counteract the effects of the crisis, which were threatening the survival of the firm. This was followed by a decision to evaluate the company’s credit ratings and a suggestion to sell its stake to a strategic investor to avoid a fall in its rating. Unfortunately, these efforts saw the company drop to a 42% in its stock, in twenty four hours (Williams, 2010).
A series of the company’s unsuccessful plans left it with $1 billion by the end of the week. One of the rescue options was an agreement with Barclays PLC and Bank of America to oversee the takeover, but it did not go through. Having exhausted all it considered to be rescue strategies, Lehman Brothers declared bankruptcy, mid September, after registering a dismal performance and a drop of 93 % in its stocks (Williams, 2010).
The collapse of Lehman Brothers was not an ordinary occurrence in the U.S. financial market and around the world. This was based on its market stake and influence in America and other countries. There were many unanswered questions about the collapse, with a section of observers questioning the government’s responsibility to support Lehman, as it had intervened in Bear Stearns in March 2008. The company lost up to $46 billion (Williams, 2010).
Management Failure
From the analysis of the case study above, it is evident that the collapse of Lehman Brothers was intertwined with a range of issues. While most financial firms suffered as a result of the looming global financial crisis, the role of the management in Lehman’s case was questionable. Simple management principles were violated, leading to a plunge of the firm’s stock and ultimate collapse in September 2008. This segment gives a critical analysis of the company’s management approach and how it promoted its demise (Delaney, 2011).
The issue of excess leverage significantly affected Lehman Brothers. Under normal circumstances, financial leverage involves investing of a loan in order to realize as high rate of return as possible. What is obtained as the difference between the loan rate and the interest rate is referred to as the spread. It is quite common for banks to engage in borrowing of money from other financial institutions and settle their debts under a fixed interest rate.
For the case of Lehman Brothers, it is evident to note that the firm was overleveraged. The company’s management agreed to borrow money from other sources to invest in numerous projects, with the main one being in mortgage securities. Nevertheless, it was realized that most of the collateral assets had a lower value than expected (Delaney, 2011).
As a result, mortgage-backed securities became valueless while the firm’s spread experienced a shift from positive to negative. The company experienced good performance, being ranked among leading American firms for many years. The company further started with a balance sheet, which showed that it owned resources, which were more than what it owed. This was quite encouraging as it indicated its stability and opportunities for making profits.
However, this trend did not last forever as Lehman owed more than what it owned; an indication of business collapse. Many expected swift measures from the management, which instead took the matter lightly, noting that the global financial crisis was not going to affect the firm (Delaney, 2011).
This assumption turned out to haunt the management before handing it over to the world of bankruptcy. The failure to tame the situation was a demonstration of management failure, since managers are charged with giving direction and setting pace in the business world (Jones & George, 2007).
Additionally, the company failed to respond on debt-to-equity ratios. Under normal operations, these ratios denote the value of a company’s debt, measured against a corresponding dollar of equity. This ratio is regulated by the Federal Insurance Corporation, which favors a value of 10:1.
It is important to note that FDIC does not regulate investment banks, causing them to maintain high ratios. For instance, Lehman Brothers registered a ratio of 60:1, implying a low cushion value. Due to lack of intervention, such high ratios for the company implied that bankruptcy was inevitable in the case (Barsch, 2012).
The compensation plan, which was crafted by Lehman’s management, further spelt doom for the success of the company. In most cases, bonuses and compensation schemes arose when the organization’s performance was at its peak. However, investors and employees were not asked to give any money back to the firm (Barsch, 2012).
In other words, the scheme was keen to reward high levels of risk taking, which generated high returns, but failed to take similar measures as a result of losses and low returns. The management did not critically look into the implications of the scheme before implementing it.
Besides general management failure, the contribution of individual CEOs also led to the collapse of the firm. A good example is Richard J. Fuld, who worked for the company for years, rising to become the firm’s chairman. He was well known as a risk taker and had high expectations of loyalty from his staff.
He was brutal and constantly intimidated other employees of the company. Because of his personality, Fuld rejected being advised by his senior executives. He believed in himself and ignored other people, serving Lehman solely from his office. This management style severely haunted the company as it bred miscalculation of the impact of the financial crisis for mitigation measures to be erected (Barsch, 2012).
The company’s Board of Directors did not have enough experience in overseeing an investment company, which had diverse goals in the financial market. To make matters worse, the board had only one member from outside who had formal knowledge and background of the financial sector. As a result, it was impossible for the company to consider a halt of portfolio expansion in the real estate industry and unpromising securities.
The functioning of the risk committee also showed how incompetent the board was. Between 2002 and 2007, the committee did not see the need for frequent meeting as it met twice a year (Ryback, 2012). This was quite daring as the global financial crisis was just around the corner. Contrary to the expectations of many, the board endorsed a remuneration package of about $500 million to Richard J. Fuld. Fuld did not see any problem with the move despite the fact that Lehman Brothers was grasping for its last moments.
A few days before the company announced a loss of approximately $4 billion, Mr. Fuld commended the entire board for its support. He lacked the interests of the firm at heart to have accepted such a hefty package when the firm was headed for a downfall.
To add insult on the company’s incompetent management, Richard J. Fuld did not see the need of selling the firm at a discount in 2007, following Hank Paulson’s recommendations. He believed that the firm was fit to be sold off at a premium.
As if this was not enough, the management unanimously agreed to distribute shares to its employees in early 2008, hopping to realize better prices, which would generate higher payouts (Ryback, 2012). This was the least that the management could offer, based on the global economic status and performance of the firm.
Management Solutions
Although the collapse of Lehman Brothers was partly attributed to the global financial crisis, the management was also responsible for failing to respond swiftly. This means that the management had a role of implementing certain measures capable of stabilizing the situation and save the firm from liquidation (Jones & George, 2004).
As mentioned above, the leverage level of Lehman was too high. Consequently, the firm got addicted to debts, putting the bank at the edge of collapsing. The most appropriate remedy for this situation was the implementation of borrowing control measures to tame the debt-to-equity ratio (Jones & George, 2007).
Lehman Brothers’ management had the most significant role in taming the situation. It needed a market oversight team to actively address the changing financial dynamics in the market. Although the risk committee was to advise the firm’s management, this was not easy due to its inefficiency and inactiveness; it met twice annually between 2000 and 2007.
Harmonized management was equally necessary to sail through the stormy financial market. This was not the case as senior executives like Fuld made independent decisions and remained defiant to his senior managers. Additionally, it was necessary for the firm to hire competent managers and strategic analysts to study market trends and make informed decisions (Jones & George, 2004).
This would have saved the company from cases of doling of the company’s shares and unwarranted payment of hefty packages to its managers, when it needed money to save it.
Conclusion
From the above case analysis of Lehman Brothers, it is evident that the management of an organization plays a major role in determining its performance. Based on decisions made, a firm can either thrive or crumble. For Lehman, the bankruptcy misfortune can largely be attributed to ineffective management, which was later coupled with the late 2000s financial crisis that rocked world markets.
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Ryback, W. (2012). Lehman brothers: Too Big to Fail? Toronto Leadership Centre for Financial Sector Supervision. Web.
Williams, M. (2010). Uncontrolled Risk: The Lessons of Lehman Brothers and How Systemic Risk Can Still Bring Down the World Financial System. New York City: McGraw-Hill Professional.
In chapter one of the book, “Organizational Behavior” by, MeShane, Olekalns, and Travaglione, the writers give an overview on areas that the book will discuss, according to the author, organization behavior examines how individuals and teams relate with their organization and how the relationship shapes the direction taken by an organization.
According to the chapter, organizational behavior is a recent strategic management tool, established in the 1940s, with the main aim of creating value and improving a company’s competitiveness using human capital working in the organization. The chapters analyses the benefits of understanding the management strategy and discusses how it has been implemented successful in some companies.
Although the chapter appreciates that different companies have different approaches to businesses, the chapter offers a framework of operation that can be applied across the board to improve business processes through strategies recommended by OB such as organizational learning, organizational culture, and change management among others.
Ancol Pty Ltd
Ancol Pty ltd had an issue managing the human capital time management and the time they served their employer; the removal of time clock has the following consequences:
Deterioration of the spirit of team work
After the removal of time clocks and the involvement of supervisors to keep track of workforce time spent with the organization, the employees felt micro managed and the spirit and motivation to work as a team for the general good of the company deteriorated. Communication in the department changed that meant that accomplishment of departmental tasks was more difficult.
Deterioration of employees relations
When the human resources started having letter of reprimand in employees files, the employees objected the move, it built into conflict that could not have been solved by internal conflict resolution strategies and the employees opted for union resolution. When an organization has reached that stage, then the communication and business environment is certainly not favorable for high productivity, creativity and innovation by the human resources.
Changes that would minimize the likelihood of these problems occurring in the future
The problem facing the company seems to have originated from organizational culture issues and lack of well structure teams; to ensure that employees are accountable for their duties, the management should embark on creation of a positive organizational culture.
One area that should be addresses is communication between the managers and employees, it should be facilitated and made effective, and this is likely to reduce the tension in the organization and employees with work as partners to the company and not servants of the company.
Supervisors, should deviate from the traditional supervisory roles and adopt team leaders roles, they should not seem to be dictating or forcing things to the employees, they should be the people on the ground that should be connecting the employees and the management, and they should report any issues of human management to ensure they are handled effectively.
Another area that the company should look into is the effects of informal groups in the company; the change that Paul Sims had implemented had been well received not until some employees started to take advantage of the system.
When addressing informal groups, the focus should be on opinion leaders who seem to have been misguiding the team, when these people are micro-managed where they are shown the need to be ethical and have high values, virtues, and morals, they are likely to advocate for the same to the team and the problem will have been solved.
Leadership remains as one of the most remarkable models that strongly brings about positive organizational change through moderation of organizational operations, motivation and creation of best working environment.
On the other hand, organizational behavior is a term used to denote how manpower in an organization runs the daily process of production towards meeting the set goals and objectives. According to Griffin and Moorhead (2012), it encompasses application of specific knowledge by management and employees in an organization towards generating a holistic outlook internally and externally (page 4). This paper analyses the case study of Charlotte Beers at Ogilvy and Mather in terms of the current leadership structure.
According to Griffin and Moorhead (2012), leaders in organizations have increasingly become aware of the need to create change for the sake of being actively involved in the change process (page 518). In the case study of Charlotte Beers, her appointment at the Ogilvy and Mather Worldwide in 1993 improved the performance of the company as she improved the asset base of the company, created groups, enhanced brand stewardship, improved client service and crafted a vision for the company.
However, toward the end of 1993, the problem of power balance was seemingly affecting the operations and unity of the company’s management structure. As the company was moving into the following year, it was faced with the challenge of team work among workers.
Lack of team work is a critical challenge that may greatly affect the realization of goals. This was the case with the company in 1994. In his publication, Al-Rawi (2008) indicates that teamwork is a critical component in a business since it enhances performance (Page 93). Contingent theory of leadership reflects on the emerging issues as an important factor in defining the ability of a leader at the team or management level to achieve established objectives.
Ogilvy and Mather Worldwide Company have been able to carry out their operations effectively in the year that has ended due to leadership that encourages team building. However, as true as Al-Rawi’s argument on teamwork may be, it is imperative to note that despite the effectiveness of team work, it is also prone to numerous conflicts that are both functional and dysfunctional.
The leadership at Ogilvy and Mather Worldwide Company will need to address this challenge by dealing with the functional conflicts that impact on the success of the team via creation of awareness. Ogilvy and Mather Worldwide Company management organization structure has undergone major reviews that have pushed it towards decentralization and greater responsibilities to workers and the business environment.
A shorter hierarchy that Beers developed allows the company’s employees to have direct contact with their top management and contribute to long-term planning. The company is run through multidivisional structures that allow localized touch with regional cultures as well as the immediate environment.
In a bid to reshape the roles and structure of the company, Beers reorganized the business operations into local and international units and sought to promote greater association of all employees with their departments. Through teamwork, the top management and members of the company were able to make their contribution with ease and have felt sense of value for services they offer.
Besides, in conjunction with all stakeholders, Beers organizational design seeks to redefine the mission and vision of the organization to incorporate the new objective devoid of discriminative practices and poor working environment. The new culture embraces a greater sense of openness to reduce possible fears of sabotage.
Participatory leadership involves inclusion of other stakeholders in decision making at different levels. This kind of leadership creates a platform for middle level managers and lower level employees to communicate and have their views ingrained in an organization.
Upon her arrival at Ogilvy and Mather Worldwide, Beers indicated that she wanted to ensure that the organization staff felt engaged. In her first meeting with thirst for change group, Beers started by engaging the staff in a puzzle that required them to come together and craft how they would revive the company, restore its customers and improve performance.
Participative leadership nurtures all stakeholders to ensure that their decisions are correct and effective. Having previously employed team work model with great success, Beers should embrace the same to make the groups complaining of power balance and lack of effective communication feel part of the decision making organ and thereby support change in the organization.
Indeed, Beers’ intention when establishing local and global strategies was to carefully change the culture of the business and enrich it by enhancing performance and making all workers and top management responsible for organization growth and decisions making.
Unlike other leadership styles such as autocracy where a leader believes that he/she always make correct decisions; Beers leadership was different as she always sought to involve all top management personnel. Beers appears greatly worried over the lack of consensus in decision making on matters related to the company. Beers should bring together the different leaders, assist them to understand the importance of working as a team and solve the areas of conflict to minimize resistance.
According to Dunn, Dastoor and Sims (2012), transformational leadership seeks to achieve positive change by carefully ensuring that the vision is shared and all stakeholders moving in the same direction (page 46). Transformational leaders therefore, seek to change their organizations to a new status by motivating their subject, reevaluating their organizations’ visions and enriching their cultures.
Upon entry at the Ogilvy and Mather Worldwide, Beers was convinced that rapid transformation was needed in rejuvenating the ailing organization. She pursued this in several ways. She first sought to motivate employees and the top management and guided them towards the needed change. As the company gets into the following year, Beers should create teams, encourage team work, and define the problems that affect the company as well as models of addressing them.
Motivation is central in transformational leadership because it acts as a special driver for employees to achieve different objectives. In Ogilvy and Mather Worldwide case, Beers should motivate her employees by ensuring to work in teams and follow the organizations mission. Besides, she should create a platform that will ensure all workers feel part of the process to rejuvenate the organization. Motivation will ensure progress and reduce resistance, factors that will bring to the organizations better rewards.
Although brand stewardship and crafting of a vision came much later after Beers had joined the organization, it was a major reflection of her transformational leadership. Dunn, Dastoor and Sims (2012) posit that transformational leaders should keep on redefining their visions in ensuring that their focus remains on track at all stages (page 47).
Beers should involve employees and the management team of the company in reviewing its mission and underlying values to make all stakeholders conversant and devoted to them as well as to encourage teamwork.
Beers’ situational leadership comes out through her ability to assess the prevailing situation and seek the best mechanism to help her achieve the expected objective. There is no one leadership style that is suitable for all leaders. However, a prevailing situation determines the best strategy to use. Hersey and Blanchard’s situational theory and posits that situational leadership creates a highly flexible and dynamic system for the leaders to relate with their environment and employees.
Situational leaders must understand the prevailing status of their workers and employ the correct method that elevates them to achieve target results. In her initial meeting with the middle and top managements, Beers realized that the business had major problems such as meeting the needs of customers and inherent drive towards achievement of the mission.
Beers situational leadership style has been witnessed in the manner in which she sought to incorporate his roles in order to create a smooth plane where employees of the company can work comfortably to realize preset goals. While considering expansion for Ogilvy and Mather Worldwide, Beers appreciated that the organization in its present form needed to expand to other areas of offering expertise.
However, such a system could only be affected when there is unity and team work which are key pillars in enhancing performance. In the coming year, situational leadership calls for a kind of leadership which offers direction when employees have low competences or commitment.
The effective operations of my team and the feed back received from the tasks and goals revealed the various strengths we have as a team. One of the strengths we have is strong team management skills which helped the business to grow in the year that ended and which will replicate cohesion and cooperation especially at departmental level.
Bedsides, the management team has increased knowledge about management and production was evident with continued understanding of linkages between the market demand for efficiency, product quality, teamwork and motivation of employees.
Organizational behavior to agree with Bititci et al (2006) could be summed up as an approach that seeks to change the dynamics an organization culture and replacing it with one that is based on continued performance, teamwork and progress (page. 1326) There is need to embed teamwork and improve performance standards especially for the top management team.
Besides, our team has increased competencies in the areas of operation to boost performance. Our success as a team in operations has been attributed to the manner in which we attends to details such as research and collection of information, provision of clean and high quality products and services, and the logical manner through which his tasks and services are performed.
Our weakness is found in decision making which sometimes is rush when faced with challenging situations. The impact of rush decisions is that it affects our profitability and sustainability. However, despite the weakness, my teams capacity enables me to bring key stakeholders together especially in different teams. Besides, I have special consideration for diversity that allowed the top management to openly and professionally support the decision to promote rewards at the team and personal level.
First, there is need to evaluate other companies and how they arrive at their decisions. This will help to address the problem of lack of consensus when planning to make key decisions. Though considering teamwork was an effective method of promoting goals achievement, failure to understand the needs of the local companies and the problem of power balance will impact on business operations and lock out other viable options brought about by teamwork.
I will then seek experts input to help me understand how to address the problem of balance of power and lack of teamwork in order to reduce resistance. The expert will also help me with previous workable examples which I can modify or use to develop specific model for business operations.
I will consider seeking further training on key management issues especially in decision making and team building. Either through online learning or participating in seminars, I will seek to improve my communication skills at all levels.
Though possible communication faults with local employees could be attributed to bureaucracy in the company, it is no doubt that there is need to treat them equally with the bigger international companies. I will ensure balance of power to enhance decision making and increase motivation through understanding their current status and focusing on addressing their demands.
During the year that ended, employees had expressed the need for greater involvement in the management. Involving them in decision making is valid and appropriate as it will elevate employees into the management by establishing and empowering the existing teams in making important decisions.
From the discussion, it is evident that leadership forms the foundation upon which organizations are anchored to create inherent understanding of all stakeholders while using individuals, teams and organization’s objectives for sustainability. The leadership by Beers has seen Ogilvy and Mather Worldwide grow to greater heights in terms of performance and profitability
References
Al-Rawi, K. (2008). Cohesiveness within teamwork: The relationship to performance effectiveness – case study. Education, Business and Society: Contemporary Middle Eastern Issues, 1(2): 92-106.
Bititci, U. S., Mendibil, K., Nudurupati, S., Garengo, P., & Turner, T. (2006). Dynamics of performance measurement and organizational culture. International Journal of Operations & Production Management, 26(12): 1325-1350.
Dunn, M. W., Dastoor, B., & Sims, R. L. (2012). Transformational leadership and organizational commitment: A cross-cultural perspective. Journal of Multidisciplinary Research, 4(1), 45-60.
Griffin, R. W. & Moorhead, G (2012). Organizational behavior: Managing people and organizations. Mason, OH: Cengage learning.
In chapter 12, of the book Organizational Behavior on the Pacific Rim Focus, called “Leadership in Organizational Settings”, the writers discuss on the role leaders play in an organization.
Leaders have the role of managing and controlling issues within an organization for an effective utilization of human, physical, and information resources that an organization have; with an efficient leadership, organizations are able to attain their corporate goals, objective, and target.
The decisions made by leaders determine the success of an organization; they have the role of mentoring and creating a learning environment to enhance the performance of their teams. The main difference between a leader and a manager is that leaders lead people while managers manage tasks; with this role, leaders must develop appropriate mechanisms of enhancing learning and staff participation in an organization.
To have an environment favorable for learning, leaders must create a positive organizational culture that rewards success and efforts of an employee. When employees have invented or innovated something, the management should recognize them; this will motivate them learn more and innovate others.
Within teams, it is area that employees learn a lot amongst and from each other, leaders have the role of developing an orchestrate team that embraces team spirit. This will enhance knowledge and experience sharing that leads to learning of new traits and tactics by employees. The leader should be delegating duties and power effectively to create an urge in his team members to learn and improve their skills.
To have an orchestrate team, leaders have the role and mandate of ensuring they well understand their human resources and note the areas that they can intervene to make them more productive and benefit the company more. They should aim at having the company as a unit with common destination and objective.
Leadership styles
Tom Saunders uses autocratic form of leadership, this is a leadership approach where the leader is the main decision maker, he is the one who controls and makes things move in the way he want them done. The leadership traits has the leader has the center of knowledge and assumes to know precisely the direction that the organization should take for success.
The approach has made Martin to be under his control and serves at his pleasure. Martin uses the democratic leadership approach, this is where he involves his staff members when making decisions and ensures things are done by the staffs through their involvement in the decision making process.
When the above leadership styles are weighed together, then the superiority of diplomatic leadership style can be seen; with this style employee are hardworking, highly motivated and can communicate effectively with the management.
It is a type that is likely to produce high results to the company and ensure that employees become and remain loyal to their employer. On the other hand, autocratic leadership has some elements of dictatorship thus the employees are forced to perform their duties.
Conflicting leader’s solutions
In the differences of leadership styles adopted, the main solution that the organization have for its conflicts include taking conflict resolution classes and the two managers undergoing leadership trainings.
When they are trained on the best approach to leadership, then the company will have fewer conflicts among themselves; the best method of solving recurring conflicts is effective and successful communication among the human capital in the organization. When communication is enhanced, it will be able to point at problems before they erupt.
Elements of a leader
There are different elements of an effective leader which include, the power to effectively communicate, the power to create a favorable working environment, the power to develop orchestrate teams and manage change within the organization. An effective leader should well understand how to manage and utilize the resources that a company has and create high motivation among employees.
In my views, Saunders is not an effective leader; he seems to be short tempered and solves issues with high tone and screaming at his employees. His style of leadership is likely to bring the moods and motivation of employees down a factor that is likely to influence on their performance.
Martin is an effective leader who has managed to create a winning team, he does this through the involvement of his department staffs in decision making and ensuring they are highly motivated; he is the type of leader that commands respect from employees as well as making them loyal and willing to use their intellectualism for the good of the company.
Does Martin have any way out of his current situation? What would you do if you were?
Josh Martin?
All is not lost for Martin, there are still some strategies that he can adopt to make the company more favorable working environment. If I was martin, I would consider enacting effective communication between me and Mr.
Saunders, I would not allow the situations go the way they are without mentioning them and stating what I feel about the situation correctly. Adopting an effective communication method is the surest way that can make the environment favorable for working to both Martin and other employees.
Reference
MeShane, S. Olekalns, M. and Travaglione, T., 2020. Organizational Behavior on the Pacific Rim Focus. Sydney: McGraw Hill Irwin
Workforce diversity is a critical provision in numerous organizations. Evidently, various companies have implemented varying strategies to effectively address the challenges of this phenomenon. While referring to the best practices, used by Emirates Airlines, numerous strategies emerge. The first strategy is to recognize and appreciate all forms of distinctiveness within the workforce (Morgan and Vardy 87).
Contextually, employee vitality is a significant provision within an organization. Concurrently, organizational behavior studies individualized characters of the staff. It also illuminates on the effects of such characters to the development of the organization. The significance of managing cultural diversity is evident in the hospitality industry.
Having researched more about it, this paper describes the role of organizational behavior in management. It also explains how diversity in organizations affects the management of a multicultural workforce. Emirates Airlines has been used in this context as the organization of reference. Evidently, the airline industry experiences high rate of international mobility.
It is apparent that the management has to establish innovative strategies to deal with the cultural diversity issues (Brotherton 11). The basic rationale for management of cultural diversity is to enable smooth and effective business operations. Appropriate management of diversity creates a sense of tolerance and understanding amongst the stakeholders (Acevedo 34).
Additionally, its effective management enhances an organization’s competitiveness, productivity and profitability. This is because the instances of conflicts are greatly minimized. Generally, firms that embrace effective organizational behaviors and viable cultural diversity management techniques have a high competitive edge.
Review of the Literature
Evidently, workforce diversity is a critical provision in vast contexts. It is notable that various companies have implemented different strategies to effectively address the challenges and opportunities of this phenomenon. While referring to the best practices (used by Emirates Airlines as the case company), numerous strategies emerge.
The first strategy is to recognize and appreciate all forms of distinctiveness within the workforce (Morgan and Vardy 123). This has helped in addressing the challenges and opportunities of workplace diversity with effectiveness in Emirates Airlines. Such distinctiveness can be harnessed to promote prosperity and expansion of the company.
In this context, diversity acts as an opportunity, which an organization can utilize to prosper tremendously. Additionally, challenges faced in operations, market trends, business prosperity, and future growth can be handled effectively. This is only possible when diverse, qualitative, and novel opinions among employees are utilized profitably.
It is feasible to have numerous options for handling various challenges within an organization. Hence, a focused organization should appreciate and enhance diversity within its premises as evident in the Emirate Airlines’ case. This will help in handling challenges and opportunities within an organization.
In the context of organizational behavior, another evident strategy used by Emirates Airlines is the eradication of discriminative acts within the organization. Discrimination leads to demoralization of employees with a consequent reduction in productivity, job satisfaction, and organization’s output. Treating every employee fairly is important in enhancing efficiency and job commitment (Gröschl 99).
Additionally, it is crucial to train employees on the importance of diversity within the workforce and how it can be harnessed for the betterment of the company. Evidently, employees need each other in order to grow, attain their objectives, and propel the company into prosperity.
Training employees to realize this provision is an important phenomenon. It makes them think differently and start valuing each other for mutual benefits. This describes the role of organizational behavior in the management of an organization. It also explains how diversity in Emirates Airlines impacts the management of its multicultural organization.
Concurrently, the company embraces equality and fair remuneration in its operations. This is meant to enhance impartiality and eliminate prejudicial acts within the organization. Providing employees with equal treatments regardless of their racial, culture, age, religious, and sexual orientations is critical and considerable (Shakhray 42). Employees should also be paid fairly.
Previously, women were paid less than men, even if their job specifications were similar. This is no longer the case in companies, which embrace diversity. This has helped in motivating employees hence using this provision as an opportunity to prosper.
Motivated employees are quite productive, as indicated earlier. It is important to pay employees based on their qualifications, job specifications, and roles assumed rather their cultures, races, sexes, and other prejudicial provisions. This has helped in addressing the challenges and opportunities of workplace diversity with value.
Another evident strategy is the fair recruitment and staffing of employees. This helps in getting the best and qualified staff regardless of another discriminative status. Most local and globalized organizations execute their recruitments and staffing activities transparently to avoid mishaps and undue favors (Groschi 99).
This has allowed potential women to attain lucrative jobs and positions in numerous organizations based on their merits, capabilities and qualifications. This occurs regardless of age, race, and physical disabilities. Additionally, promotions are also handled fairly and only deserving candidates are promoted.
This describes the role of organizational behavior in the management. It also explains how diversity in Emirates Airlines impacts the management of its multicultural organization.
Interpersonal skills are vital in this context since they enhance exchange of ideas and coordination of duties. Such skills, if majored on, will enable the stakeholders Emirates Airline to establish effective relationships and build trust. This concept has been applicable in the Emirate’s Airlines concept. Linguistic ability will assist the organization to establish contact (Acevedo 91).
Corporations within the hospitality sector should also encourage their workers to gain the motivation of living overseas. This enhances their cultural curiosity, which is a vital recipe for successful adaptation. The capacity of an organization as well as its employees to develop tolerance during uncertainties or ambiguities is critical.
Global managers within the sector ought to develop the capacity to deal with multiple perspectives any time. The management system should also be flexible to contain such transformations in cultures and act as a role model.
Through organizational behavior, an individual requires the aspects of self-understanding in order to formulate how he or she can adjust to the changing environments with precision, appropriateness, and the desired relevancy.
This will help in self-actualization, satisfaction, and creativity to avoid the looming life challenges that might affect an individual, group, or an organization with stringent adversities in the realms of performance. As proved by the study (regarding Emirates Airlines), individuals react differently to varied situations, thus indicating the differing levels of resilience witnessed in diverse contexts (Phillips and Gully 124).
The sources used in this context are credible due to their well-researched concepts, credible authors, and relevancy in the context of organizational behavior and diversity management.
Methodology
The methodology used in this study was qualitative. It was based on personal experience with the organization. Additionally, it incorporated analysis of the secondary data already existing. It vastly discusses the aspects of organizational behavior and diversity management within Emirates Airlines.
The report is provided after execution of an extensive study through application of clear guidelines and procedures from the initial stages to completion. As a preamble, the topic was developed by identifying the need to evaluate the contribution of adopting credible organizational behavior and cultural diversity management.
Qualitative methodology is critical since the techniques are integral in enhancing communication and facilitating superior execution of activities. The research adopted purposive research technique/method that holds requisite incentives to ensure the realization of credible results.
Qualitative technique was relevant in ensuring that the purposive nature of the study (to establish the impacts of organizational behavior and viable diversity management in Emirate Airlines) is achieved.
This research went through credible research design, literature review, primary data collection, data compilation, analysis, and derivation of the intended findings. The discrete data were collected from both males and females that operate within the organization and those who have experienced its management in regard to cultural diversity and organizational behavior. The age of the respondents varied from 22- 65.
Concurrently, races differed considerably so as to experience how different races perceived Emirates Airlines. The job status also varied from mere cleaning officers to credible managers of the company. No questionnaires or structured interview forms were used since this was not a quantitative methodology.
According to Merrigan and Huston (2009, 45), qualitative research technique provided the researcher with superior study mechanism that is relevant in executing investigations with well-orchestrated objectives. The technique ensures that the purposive nature of the topic under study is understood adequately.
This will help in identifying viable sampling techniques, including respondent identification and delivery of credible information. The analysis of the experiences and the secondary resources used to facilitate this report revealed that implementing credible diversity management provisions requires absolute dedication and determination of various stakeholders in institutions.
The realization of highly functional cultural diversity that fosters individual’s performance and communication requires eradication of inconsistent prejudicial practices that may compromise quality and harmonious coexistence within the company.
Discussion
Individual dynamism and workforce prowess are a critical phenomenon within an organization. It is crucial to adjust appropriately to the challenging situations that might engulf an organization. This is advisable to ensure that the attitude, approach, and performance of individuals remain apposite and competitive within the organization.
Precisely, the matter considers the aspects of resilience at an individual’s level in the context of organizational behavior and diversity. Nonetheless, the fact is also necessary and applicable at group or organizational level.
Individuals, factions, and corporations must be resilient enough in order to cope with the challenging macro-environmental situations. This describes the role of organizational behavior in the management of a firm. It also explains how diversity in Emirates Airlines impacts the management of its multicultural organization.
Concurrently, prosperous organizations (Emirates Airlines in this context) have employed equality and fair remuneration, treatment, and opportunities to their employees regardless of racial distinctiveness.
Providing employees with equal treatments regardless of their racial, cultural, age, religious, and sexual orientations is critical and considerable (Shakhray 134). For instance, previously, women were paid less than men, even if their job specifications were similar. This is no longer the case in Emirates Airlines, which embrace diversity. This has helped in motivating employees hence using this provision as an opportunity to prosper.
Motivated employees are quite productive as indicated earlier. It is important to pay employees based on their qualifications, job specifications, and roles they assume. This has helped in addressing the challenges and opportunities of workplace diversity with value (Gröschl 32).
Another evident strategy, which emirates Airlines use to enhance establish viable organizational behavior so as to manage its cultural diversity is the fair recruitment and staffing of employees. This helps in getting the best and qualified staff regardless of their discriminative status. Most local and globalized organizations execute their recruitments and staffing activities transparently to avoid mishaps and undue favors (Gröschl 98).
This has allowed potential women to attain lucrative jobs and positions in this organization based on their merits, capabilities, and qualifications. This occurs regardless of age, race, and physical disabilities. Additionally, promotions are also handled fairly and only deserving candidates are promoted.
Cultural diversity is a challenge to both individuals and companies. Most organizations within the culturally-sensitive industries have taken drastic policy initiatives. A policy herein refers to a statement or procedures that guide the stakeholders within organizations on how responsibilities should be conducted. Foremost, successful organizations apply diversity within their workforce to gain competitive advantages.
Organizations have adopted policies that increase the cultural variety within their workforce. These have augmented the benefits of having workers of diverse backgrounds within these companies. To enhance their competitive advantage, recruit diversity has been a basic policy for most companies. Under this policy, the companies have actively searched for employment persons from an array of cultural backgrounds (Marx 117).
Emirates Airlines has also adopted policies that stimulate understanding of diversity benefits. In this regard, the management has used training programs to elucidate on the advantages of adopting diverse ideas within the organization. Additionally, trainings on brainstorming approaches have been incorporated.
Teamwork policies have been critical in most culturally diverse organizations. When adequately incorporated, the policy helps to develop the feeling and spirit of unity as well as togetherness towards a collective goal. In teamwork, the objective for a collective goal overrides the diversity of members. This forms a quality recipe for competitive advantage within organizations.
The vision statements as well as corporate policies should be sound and solid to enhance competitiveness amidst cultural diversity (Anca and Vazquez 45). The corporate vision statement ought to be constructed in a manner that reflects the organization’s commitment to cultural diversity.
This should be backed up by a powerful vision. The company’s time-off policies should also prop up cultural uniqueness for holidays as well as religious observances. Other policies should also outline the training of managers on cultural diversity sensitivity.
Conclusion
The steady globalization trends, cultural diversity, demographic transformation patterns, and labor structures pose immense challenges to the management of Emirates Airlines. It is clear that understanding and controlling diversity through viable organizational behavior is critical to Emirates Airlines. Diversity offers enormous opportunities as well as benefits to organizations.
To achieve a competitive edge, several cultural barriers, including communication obstacles, discrimination as well as stereotypes must be overcome. To increase knowledge and sensitivity on cultural diversity management, appropriate training schedule must be designed and carried out within the sector.
This (among other provisions discussed earlier) describes the role of organizational behavior in the management of the company. It also explains how diversity in Emirates Airlines impacts the management provisions of its multicultural organization.
Works Cited
Acevedo, Laura. Strategies for Culture Diversity in the Workplace. 2012. Web.
Anca, Celia and Vega A. Vázquez. Managing Diversity in the Global Organization: Creating Business Values. New York, NY: Palgrave Macmillan, 2006. Print.
Brotherton, Bob. The International Hospitality Industry: Structure, Characteristics and Issues. Oxford: Butterworth-Heinemann, 2003. Print
Gröschl, Stefan. Diversity in the Workplace: Multi-disciplinary and International Perspectives. Farnham: Gower, 2011. Print.
Marx, Elisabeth. Breaking Through Culture Shock: What You Need to Succeed in International Business. London: Nicholas Brealey, 1999. Print.
Morgan, John and Felix Vardy. Diversity in the Workplace. Washington, DC: International Monetary Fund, 2006. Print.
Phillips, Jean and Stanley M. Gully. Organizational Behavior: Tools for Success. Mason, OH: South-Western Cengage Learning, 2012. Print.