Describe Burton’s leadership behavior
The leadership behavior exhibited by Burton is a supportive kind of leadership behavior. Hersey, Blanchard and Johnson (2007) notes that supportive leadership behavior makes leader have a warm interpersonal skills with their employees. This is exhibited by Burton’s idea of establishing a novel workplace where employees were allowed to explore their potential through creativity and improved productivity. Besides, Burton’s supportive leadership attribute is exhibited when he creates a less hierarchical environment giving employee a chance to self management making them highly participative.
Was Burton a charismatic leader in the company at this time
Burton was a charismatic leader given the fact that he invested hugely on motivating his employees to always have their best done in an organization. This is first witnessed by his ability to create a healthy relationship between him and the employees which made the employee believe in him and his strategy. Sy, Horton and Riggio (2018) state that when a leader communicates to their followers effectively and influence them through motivation and inspiration, they can then be referred to as charismatic leader. Additionally, a charismatic leader is said to have strong abilities to identify and inefficiency in an organization and out of their critical thinking they help in solving problems that arise from the inefficiency without much disruption in the organization (Sy, Horton and Riggio, 2018). This is well visible from Burton’s decision making style especially in recruitment and selection of employees and even distribution of duties of employees
What dysfunctional aspects of charismatic leadership were displayed by Burton?
Thorpe (2016) states that it is not always that charismatic leadership is successful . For instance, Burton displayed a dysfunction aspect of charismatic leadership lack of ability to motivate the workforce of the company. For example Burton refused to replace the position of the president of the company after the president resigns. In addition there is poor communication problems in the company that led to poor delivery.
The success of Costco in terms of performance determinants in flexible leadership theory
The success of Costco can be said to be achieved through there main aspect of the flexible leadership theory which can be attributed through efficiency of the organization. The company has consistently provided quality products with the lowest available prices. This has seen that the company is able to attract more consumers thus making a higher profit as compared to competitors. This is as Bush, Bell and Middlewood (2019) mention that one of the main aim of a flexible leadership theory is to ensure that a company provide efficiency through effective management of its internal activities. In regard to human capital, Costco has invested in human development as a strategy of growth. The company has 40% higher pay than its competitors in addition to health insurance and pension covers. In regard to adaptation, the company has built its strengths along the line of price loyalty and the low costing model which makes the company able to adjust to its surrounding and providing its consumer with reliable services irrespective of the external environmental business conditions.
How Costco can provide higher compensation to its employees an be successful
The low price strategy with quality services is designed to ensure that it attracts many consumers. A high number of consumer translates to high profit margin out of high sales and this makes the company able to provide its employees with high compensation. Hersey, Blanchard and Johnson (2007) argue that a company does not need to have high profit margins and expensive prices to pay its employees well but an effective strategy is more effectives.
The CEO Sinegal can be said to practice the democratic leadership style or theory which stipulates that as noted by Saeed, et al., (2014) that a leader who practices democratic leadership is highly centered on subordinate being part of the decision making process in the company. This allows the leader to have a strong relationship with the employees and it leads to harmonious working together towards goal achieving. This is highly evident with Costca where the CEO highly engages with the consumers as well as the employees to not only have a better relationship with them but also to have close understanding of their views and even implement their views in management of the company
What was done to improve efficiency, adaptation, and human relations, and how were the potential trade‐offs among these performance determinants handled?
Human relations was improved by getting the company’s employees involved in the process of decision making through broad cross sectional teams that were meant to collect information about the reasons for fail of the company. It can be noted that prior to the new COO there had been no use of the employee participation which is a noted by Hersey, Blanchard and Johnson (2007) that human capital does not only entail the use of labour from employees but also the use of the information they provide to a company in line with strategic management. Efficiency was improved by identification of excessive cost on the company which led to losses or plow performance. One of the improved efficiency for Nissan was that only half of the available capacity was used leading to low production at a high cost. As such the COO suggest the closure of part of the production capacity leading to low cost of production in terms of labor and production cost. The resource that were directed to the closed part was added to the remaining parts to improve production. Here, the application is as identified by Saeed, et al., (2014) that it is efficiency is especially controlled by effective management of available resource through elimination of excessive or unnecessary cost. In relation to adaptation, Nissan invested in impressing its consumers through introduction of new models as opposed to the 4 models that had been appealing to consumers before. This was done from the engineering department that focused on change of models that fit the customer appeal. Saeed, et al., (2014) note that flexibility in adaptation is mainly achieved by a company when it realizes the needs of its consumers.
Effective change management
One effective change management notable in Nissan is the fact that the company took more into engaging employees in the process of decision making which was not happening in the past. Managers were involved in identification of challenges facing the company and even provision of solutions. Even recognition of employees performance through introduction of merit pay brought increased positive change.
Skills and traits of Ghosn
Ghosn is trusting and is willing to inspire others. He was willing to engage most of the employees in changing Nissan. By engaging the employees, Ghosn inspired the employees to take part in the process of saving the company not only through provision of the ideas but also through improvement of their performance following the introduction of new HR strategies such as merit pay. This helped improve the performance of the employees as they were sure of recognition of their work. Ghosn can also be said to be achievement oriented leadership where the leader motivates and develops skills and talents of a its followers or teams by making employees enjoy their tasks. In return this helps the company achieve its results by making employees achieve their personal goals.
Among the main guidelines of strategy formulation include definition of the environment in which a company operates in as it helps in setting targets and even anticipating the kinds of challenges a business may face (Hersey et al., 2007). The next guideline is the definition the specific strategy that a company must select to use and Hersey et al., (2007) note that it has to be competitive and help a company attain a competitive position. Following is the implementation of the strategy which must be constantly be monitored to ensure that the risk are well anticipated and controlled to avoid losses. Nokia for example has its strategy failed in the migration to the smart phones production. One of the main fail of Nokia was lack of a well defined mission of its strategy and slow shift to the highly competitive technological environment.
Bush, T., Bell, L., & Middlewood, D. (Eds.). (2019). Principles of Educational Leadership & Management. SAGE Publications Limited.
Hersey, P., Blanchard, K. H., & Johnson, D. E. (2007). Management of organizational behavior (Vol. 9). Upper Saddle River, NJ: Prentice hall.
Saeed, T., Almas, S., Anis-ul-Haq, M., & Niazi, G. S. K. (2014). Leadership styles: relationship with conflict management styles. International Journal of Conflict Management, 25(3), 214-225.
Sy, T., Horton, C., & Riggio, R. (2018). Charismatic leadership: Eliciting and channeling follower emotions. The Leadership Quarterly, 29(1), 58-69.Thorpe, R. (2016). Gower handbook of leadership and management development. CRC Press.
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