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Behaviours: Mr. Jones represents himself as fun living, creative and supportive. Hes very good with all staff members and always tries to maintain good atmosphere at work place. To increase the sale (growth), every week he sets new strategies and discusses with his staff, listens to his staff carefully and thinks about their ideas as well because he thinks business can only grow with team work, it's not easy for an individual. If any problems arise at work place or staff personnel problem, he listens and takes action so that staff can work easily in a co-operative environment. Although he knows very well "how to manage time" and "how to take decisions". Leadership behaviour is a complete set of motivating, inspiring, evaluating risk and setting strategies. After interviewing, I can easily say that Mr. Jones has all these qualities which recognize a good and successful leader. All kind of businesses in New Zealand are based on Leaders efficiency and success. To become a leader as Mr. Jones, need to be active and right decision maker.
Traits: Mr. Albertan Jones is very honest, reliable and co-operative human being. He's very honest towards his business and staff members. If he do any mistakes or anything went wrong by him, he discuss with staff so that the specific mistake won't take place in future though it prevents in-convince. Mr. Jones does business meetings every Sunday in which they discuss week's sale, problems and strategies. He's very keen to listen his staff employees. Behaviour of his staff towards him is very good and all are loyal to him. With the period of time he learns strategies, techniques and their implementations. Mr. Jones has honesty, passion, respect and confidence. His qualities are easily clarify that he is a perfect leader who thinks all possibilities before making any decision in short run as well as in long run. He understands his customers and employees feeling and nature of work environment.
Skills: According to the information gathered I can easily define Mr. Jones having "Marketable skills" and "Motivating skills". By using his "Marketable Skills", he buys the stock in bulk quantity so that the cost price gets reduced and he can easily sell at cheaper price than market. So he is actually attracting more customers by putting special and selling more quantity that lead to more business capital. Mr. Jones have great control over "Motivating Skills", he always motivate his staff to offer multi-buying specials to customers that results in selling more products and rotation of money. It means his stock is selling more, though he's making good relation with his customers as well. To run a business, Leader must have skills that can be used in right way at right time. Skills can be easily identified by the experience and practice of an individual. His skills are so perfect that his business is booming in the market.
Attitudes: He is very confident, respectful, faithful and reliable person. He always takes decisions very confidently and effectively at every stage of the business that leads him to this opposition. He started his business with $10,000 but with confident and commitment towards work lead his business to $2.5 Million. Mr. Jones respects his staff and customers as well that's why he's having good relation with everyone. He divides work among all staff members so that no one can get pressure of work, means a mistake that leads to time saving and efficient work. Leader must have positivity, purpose, love and confident. There's one famous saying that "Looking at the literal world in a favourable way", according to this Mr. Jones have all these attitudes that leads him to be so successful in his life and having profitable business.
Knowledge: Mr. Jones has vast knowledge about the area and choice of the customer as well. He differentiates the work among the staff by identifying individual level of efficiency that's a good characteristic of leader. As he's having long experience of work he has proper knowledge of the products, brands and their demands as well. He's always share his knowledge with others so that no one can take wrong steps and guide them with his own experience. As he has to deal with different culture person on daily basis he respects them and learns different things from them as well. As he is very fond of gathering knowledge from all sources and this kind of quality is not in everyone. That's why he is separate from other and a successful leader.
Contemporary Developments: Mr. Jones is multi- performing person. He always ready to learn new things from his staff members, customers and business links. His dedication and planning strategies of the business that results in sale increase of 33.6% last year. His franchisee business comes under top 3 in Foodstuff Auckland New Zealand. Every year he sets new goals and target for his business. Although he think about his staff members by giving increment in their salaries that motivate them to work more efficiently and in creative manner. Contemporary Development is very necessary for every business in New Zealand. Mr. Jones understand and ready to work in all situations of business life besides that he never leaves his honesty and concern about his employees. That's why his business got 6 awards for being such a successful business man. Foodstuff Auckland is such a big industry in New Zealand which covers about 600 stores and to be a part of top 3 it is not an easy thing.
(A) Level of management
In this business, there are only "Upper" and "lower" level of management.
Upper Level Management: This level of management includes Mr. Albertan Jones, owner of Four Square Franchisee. He is responsible for and is accountable for the success or failure of their particular operation. His job is to review training methods and outcomes to make sure they are in keeping with the values and vision into reality. All decisions are proved by Mr. Jones but he shares with his staffs members as well. Leadership style used at this stage is strategic and team work.
Lower Level Management: It includes all members working in and for Mr. Jones business. This management is the main strength of any organization because these are the one who really executive plans and faces difficulties. Same like in Mr. Jones business his staff member's executive his strategies and face the problems while doing that. Staff members identify the problems and discuss with "Upper Level Management"(Mr. Jones) so that they can think new and reach the business aim.
(B) Effective styles of Leadership for different levels within a business: "Democratic Leadership style" has been used in Upper level of management because Mr. Jones makes decision after discussing with staff member and their ideas. However, the research has found that this leadership style is one of the most effective and creates high productivity, better contributions from staff/group members. In Lower level of management, staff has own type of following quality and it is based on how they do and how they take work individually but their following style changes on every level as they have to face new things with new learning and difficulties. As my organization is only having two stages and only one leader, I think my leader is applying right leadership style as this is the best way to manage the small organization by taking feedback, ideas from staff and also maintain peaceful environment in organization.
(C) Stage of business life cycle: Mr. Jones franchisee business currently has five stages of business life cycle those are seed, start-up, growth, establishment and expansion. In 2003, when he planned to open this business, he arranged capital for business and then planned strategies to achieve some level. It means his business growth and establishment is successful. At this stage, he is just thinking about the expansion and profit. It is true that every business has an exit point but it's all depending on the owner of business. The more input he puts the more output he will get. Besides that leadership quality is very important because it helps you to get experience with nature of time.
SEED: Is the stage, where owner think about making organization or plan about building business. It means that Mr. Jones make the decision of buying Four Square Franchisee. This is very crucial stage if any wrong decision taken the everything will be in exit point before making money or growth.
START UP: At this stage, where owner is arranging the capital for the business and then planned strategies to run the business. Capital can be arranged from bank loan and bowering from friends or relatives for specific time of period.
GROWTH: Is the stage, where business is growing and doing well at this time when leader have to make plans to capture market and reputation of the organization. For example, Mr. Jones makes strategy to buy products in bulk quantity and sell as at low rate than market.
ESTABLISHMENT: Is the stage, where business already capture his market and now owner plan for earring more and more goodwill and capture more shares in market. This is time in which leader should try alternative plan and attractive plan to attract the customer and also maintain the quality of the product.
(D) Effective styles of leadership for different stages in a business life cycle: When Mr. Jones started his business and till growth his styles were Charismatic and Task- oriented because he has to make plans and strategies that helps him to rise in the market competition. After some time he successfully established his business then Democratic style was most effective at that stage. Besides that, Relation- Orientated Style of leadership is more effective. This shows that every stage of business cycle effects Leadership style.
(E) Leader's Organization:
Mission: It guides the actions of the organization, sets its overall goal, provide a path and decision making. Mr. Jones has also taken some important decision all alone at the time of start-up and sets some rules and regulations. As setting up a new business is not an easy job because you have to see area, population, growth, and lifestyle and return as well.
Vision: Vision means image or picture of your company. It depends upon the Owners inspiration and Strategic planning. It shows the way to go on path and achieve desire things for the business or an organization.
Strategy: Strategy is the back bones of any business as strong the back bone is business will be in profit and booming in the market. It only sets by Upper level of management and can be discussed with lower level to make strategy perfect.
Purpose: Setting Mission, Vision and Strategy it's a part of purpose as they will lead with profitable business. When your goal is clear and you just need to execute the plan and strategy to complete the purpose of the business whether it is to make money or make high level of standard in the market.
(F) Leadership Characteristics: Characteristics of leader effect business strategies when leader exactly know his/ her qualities that they can use for goodwill of the business. Mr. Jones always discuss with his employees because he know individuals have different ideas and experience so combining all together he will get something fresh and suitable for his business. However, his motivation skills always encourage staff members to do and think outside the box.
(G) Effective style of Leadership for furthering the business strategies: In this business, Mr. Jones can use his Democratic and Strategic leadership because now it's time to move the business on next level. As he has strong strategic leadership quality and past experience, he can easily design new ideas that help his business to grow. It can be done by operating other Four Square Franchisee as well. As company is doing well i think he is following right style and as he owes only 2 stages organization democratic is best style to achieve good results and achieve goal effectively
Democratic : Is a style where leader allow his staff to participate and there is free flow of communication always keen to know new ideas and take time to time feedback from staffs to maintain business environment healthy and less chances of conflict and also their feedback and ideas help organization to grow up .
According to me in small organization democratic leadership style is the best style to apply.
MODELS OF CHANGE
1. Kotter's 8- Step Change Model: Once the problem is identified, next step is to apply model to have appropriate solution. This model does exactly the same but behave differently at various levels. The model is the combination of following steps:
Step 1: Establishing a Sense of Urgency: Help others see the need for change and they will be convinced of the importance of acting immediately.
Step 2: Creating the Guiding Coalition: Assemble a group with enough power to lead the change effort, and encourage the group to work as a team.
Step 3: Developing a Change Vision: Create a vision to help direct the change effort, and develop strategies for achieving that vision.
Step 4: Communicating the Vision for Buy-in: Make sure as many as possible understand and accept the vision and the strategy.
Step 5: Empowering Broad-based Action: Remove obstacles to change, change systems or structures that seriously undermine the vision, and encourage risk-taking and non-traditional ideas, activities, and actions.
Step 6: Generating Short-term Wins: Plan for achievements that can easily be made visible, follow-through with those achievements and recognize and reward employees who were involved.
Step 7: Never letting Up: Use increased credibility to change systems, structures, and policies that don't fit the vision, also hire, promote, and develop employees who can implement the vision, and finally reinvigorate the process with new projects, themes, and change agents.
Step 8: Incorporating Changes into the Culture: Articulate the connections between the new behaviors and organizational success, and develop the means to ensure leadership development and succession.
1. It focuses on obtaining buy-in from key employees to ensure success.
2. It fits well on top of traditional organization structures.
1. It is top- down model, so opportunities can be missed because not everyone's is involved in co- creation of the vision.
2. It can lead to resistance amongst employees if consideration is not taken of the change curve and how people react to major change.
2. Pryor's 5P's Model: The 5 P's Model is a Strategic Management Model which requires the alignment of 5 variables to improve organizations and their operations: Purpose, Principles, Processes, People and Performance.
Purpose involves all the elements that constitute the intention of the organization. This includes organization's mission, vision, goals and strategies.
Principles are the assumptions and attitude about how the organization should operate and how it should count its business. This includes integrity base, ethics and core values to which employees are expected to make a commitment when they are hired.
Processes are the organization structures, systems and procedures that are used to make the product or perform the services that the organization provides, as well as the rules that support these systems and precedes.
People are the individuals who perform work that is consistent with the Principles and Processes of an organization to achieve its target.
Performance encompasses all the measurements and metrics, expected results that indicate the status of the organization. Performance results are fed back into the strategic management process to provide a means of feedback and control.
1. It can be used at the corporate level and through out every level of organization.
It is applicable to all types and sizes of organization.
1. It is only concern about the basic leadership and management concepts.
2. There is no understanding of strategic management and its development.
3. Mckinsey's 7S Model: The Mckinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:
Staff"Hard" elements are easier to define or identify and management can directly influence them. These are stratifying statements, organization charts and reporting lines and formal processes.
"Soft" elements on the other side can be more difficult to describe, and are less tangible and more influenced by culture. However, these elements are as important as the hard elements if the organization is going to be successful.
1. Improve the performance of the company.
2. Determine how best to implement a proposed strategy.
1. If one department is changed, others need to be change because in most organization departments depend upon each other's working criteria.
2. When time to apply strategies to any organization it's totally a different way they are given.
STEPS IN IMPLEMENTING CHANGE:
1. Create Urgency.
2. Form a Powerful Coalition.
3. Create a Vision for Change.
4. Communicate the Vision.
5. Remove obstacles.
6. Create short-term wins.
7. Build on the Change.
8. Anchor the Changes in corporate cultures.
SUGGESTIONS AT EACH STEP:
1. My colleague should develop a sense of urgency around the need for change. Identify potential treats, and develop scenarios what could happen in the future.
2. My colleague should convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization.
3. My colleague should start linking everyone ideas so that overall vision people can grasp easily and remember.
4. My colleague should talk often about the vision and apply all aspects of operations- from training to performance review.
5. My colleague should identify or hire, change leaders whose main roles are to deliver the change. Recognize and reward people for making change happen.
6. My colleague should not choose early targets that are expensive.
7. My colleague should set goals to continue building on the momentum that organization achieved.
8. My colleague should talk about progress every chance they get. Create plans to replace key leaders of change as the move on. This will help ensure that their legacy is not lost or forgotten.
PEOPLE RESIST CHANGE
1. People feel connected to others who are identified with the old way.
2. People have no role models for the new activity.
3. People fear they lack competence to change.
4. People feel overloaded and overwhelmed.
5. People feel the proposed change threatens their nations of themselves.
6. People genuinely believe that the proposed change is a bad idea.
7. People anticipate a loss of status or quality of life.
RECOMMENDED CHANGE MODEL
The best change model which is recommended for this organization is the Kotter's Change Model. I am recommending this change model because as this is a step by step change model it is easier to follow. This model does not focus on change but rather prepares the employees for change which makes them accept the change and the outcome is a successful change transition. As we have seen that the main problem in this organization are the workforce which are aging. Thus, it is the people who are the main change factor and around them revolves all the processes like using computers etc. By using this step by step model, it will be easy to change the culture and hence bring out the desired change visited by my colleague.
I think this is the best model for this organization because it is a simple model and will prepare the employees of this local council towards change. This model when used in this organization will prepare the aging employees to envision change and they will understand the reason for implementing computer technology in their processes. One they will understand that, it will be easy for them to buy in and undergo trainings, learning's etc to learn computer skills.
ROLE OF LEADER
The leader has a very important role to play in this form of change. My colleague will have to play a very significant role when implementing this model in her organization. As it is a step by step change, the leader plays an important role at each step. Right from step one of this model, she will have to lead each step in this process and not skip even a single step. The leader will create urgency for change, build the team for change, develop the vision, communicate the vision, empower the employees, create short term goals, and build the change and changing the culture to adopt the change. In this organization my colleague as mentioned above will play a role at each step and will have to create aviation and communicate that to her team that change is important. It is a computer era and people are tech savvy. So, in order to serve the generation of today, they will have to adopt the technology integrated processes for an effective and efficient delivery of their service.
My colleague can use the following change strategies in her organization.
1. Updating computer systems: She should communicate the need for updating computer systems in the organization. Once the employees understand the need, they will not resist this and she will no longer face disgruntled sighs and negative attitudes. This change will help her bring the organization at par with other organizations using advanced web applications in their processes.
2. Training/Coaching for the employees: It is clear that her current workforce is aged and hence they lack the skills to be able to use advanced web applications. It is important for her to arrange trainings and invest in her employees for them to learn and develop the skills to be able to adapt to the new computer systems etc. The employees when communicated that they will receive training etc, will help them to buy into this process and make the change process smother and easier.
3. Career opportunities for employees: During the implementation of the above two strategies, my colleague will face various challenges and come across many employees who will not be able to learn due to various factors like age, literacy skills etc and may resist the change. It is very important to recognize them and offer them educate them on other career opportunities and offer redundancy. As this will be by choice, there will be no resistance to change by others.
4. Hire new employees: As some employees may opt for redundancy by choice, she should start focussing on hiring new younger employees with the right skills.
Leader 1: Mother Teresa (Community servant- Missionaries of Charity)
Leader 2: Albertan Jones (Owner of Four Square, Mt Albert)
LEADERSHIP MODEL CONTINUUM
MOTHER TERESA ON THE LEADERSHIP CONTINUUM
Mother Teresa is renowned for her leadership style. She was a community worker and has won the Nobel Peace prize for her dedication and service for the community. She laid the foundation of the worlds renowned non profit organization- The Missionaries of Charity. Mother Teresa's leadership style has evolved over time and was learned by observation. Originally, Mother Teresa made her own decisions by laying the foundation of her charity and enlightening people with her vision. Over time her leadership style evolved and she entertained ideas and suggestions by her subordinates. She is in the middle of the above continuum.
ALBERTAN JONES ON THE LEADERSHIP CONTINUUM
Albertan Jones very successfully runs the Four Square. He has grown over time and his Four Square is amongst the top three stores in Auckland known for the sales and customer service. Albertan Jones is a Free-rein leader and permits his team to function within their limits and invites them for suggestions and ideas. Thus, he has given complete freedom to his subordinates.
FORMS OF POWER
There are five forms of power identified by French and Raven's model. But it is not necessary that each of the above leaders have all those powers. Below are the powers available to the above two leaders
POWERS OF MOTHER TERESA
1. Positional Power: Mother Teresa was the founder and leader of the Missionaries of Charity and so had a very influential positional power.
2. Reward Power: Mother Teresa had reward power; reward does not only means giving money etc, but also means praises, simple compliments. Due to the position which Mother Teresa held, she often complimented people for helping her charity for good deed.
3. Expert Power: Mother Teresa was an expert and understood the problems and identified the needs of people and that is why she was a leader.
4. Referent Power: There is no doubt that Mother Teresa had that power and was known for her charisma.
POWERS OF ALBERTAN JONES
1. Positional Power: Albertan Jones is the owner of the business and has positional power.
2. Reward Power: Albertan Jones had reward power and can reward his employees in forms of salary increase, bonus and compliments
3. Coercive Power: Albertan Jones has coercive power and has the complete right to punish his employees if they do something wrong.
4. Expert Power: Albertan Jones was an expert and understood the business
CULTURAL POWER DISTANCE
Mother Teresa is from India which is a High power distance culture but she does not practice this. As she is from a non-profit organization she practices low per distance culture. She treats her team at equal power.
Albertan Jones is from New Zealand and practices low power distance culture and gives equal respect to his employees. He trusts his employees and respects their ideas and decisions.
NATURE OF THE ORGANIZATION OF THE LEADER
MISSIONARIES OF CHARITY is a Roman Catholic religious organization founded by Mother Teresa. This organization serves the poor including refugees, abandoned children, widows, lepers, people suffering from AIDS; this organization provides food, clothing and shelter to the needy irrespective of their caste, colour, caste and creed. As this is a true non profit organization and has followers across the world. This has influenced Mother Teresa's style of leadership and has evolved to charismatic style of leadership. She used her charm to get admiration of her followers. She looked after her people.
ALBERTAN JONES is the owner of Four Square. This is a supermarket and is one of the top three in New Zealand. This organization is owned by a single person and has a small team of employees. This organization has influenced his style of leadership as the business has evolved and changed its growth cycle.
COMPARISON OF LEADERSHIP CONCEPTS
Mr. Albertan Jones
1. She always thought for others and wanted others to get a better life.
2. Mother Teresa's influence continues to inspire commitment to serving the less fortunate today.
3. Her Behaviour was very polite and generous toward others.
1. His behaviour towards his staff is very calm and positive.
2. His behaviour is to set goal on regular basis that leads to profitable business.
3. He always motivates and encourages his staff members and maintain to environment at work place.
1. Helpful and caring- examples are that she did things for others and she was willing to help anyone in the need.
2. She was self- motivated as she runs organization as human kind.
3. Mother Teresa was devoted to be love in action on earth.
1. He is very honest towards his staff members and work.
2. His understanding individual behaviour is very good.
3. He always runs business with different kind of strategies at different level or problem.
1. She became the role model for others and people started following her due to her good deeds.
2. She was having very strong Charismatic and referent power.
3. Her communication skills were very motivating that lot of people joined with her and form an organization.
1. His Motivating and Marketing strategies are very strong.
2. He is very good in making relationships.
3. His experience helps him to face every stage of business problem.
1. She was discipline and peaceful.
2. She was having faith in God (Jesus).
3. She was always ready to go under any sufferings for others.
1. He is confident and reliable.
2. He creates such an environment at work place that his staffs do work easily and effectively.
3. He's very Positive and loving human.
1. She was having vast knowledge about the community.
2. She knew different languages.
3. Her knowledge got wide with the experience of time and situations.
1. He has knowledge about the area and choice of the customer as well.
2. He always shares his knowledge with others so that no one can make mistake at work place.
3. As he has to deal with other cultures, he very keen to learn from them as well.
As she was working in developing country and in 80's India was one of the backward countries and she didn't have proper resources and helpful tools but still she utilize whatever she had in a such a manner that people still admire her for that she got Nobel award. She was following charismatic and transformation leadership style.
As he is working in New Zealand and in modern era he have all modern tools and resources (technology ) to play with but still you need knowledge to operate all things and in the competitor environment you have to at the top every time. He is following democratic management transformational leadership style. He won 6 awards for the performance.