Evolution Of Managerial Effectiveness Of Carlos Ghosn Commerce Essay


Managerial effectiveness is defined as the basis of output of the organization- what a manager achieve. There are three factor to be responsible for the result that an organization achieved by the manager. These are endeavors and capability of the manager. The environment where the organization and manager operates. The effort and abilities of lower level of the organization (www.irma.ac.in).

In 1999's, the Nissan was suffering decline and unprofitability for a decades. In that time Carlos Ghosn had taken responsibility of Nissan, when Nissan debt was app. $22 billion. In first board meeting, he declared that Nissan will make profit within one year. He declared that is my "Mission impossible" target. To achieve mission impossible, he reduced Director Body from 20 to 4 only. He also reduced number of supplier as well as started out sourcing for reducing cost. The rest of the top management had pledge to resign, if they failed to return the company in right track within one year. Mr. Carlos exploited autocratic leadership to achieve goal. All the major decision taken by himself, he also compelled to follow chain of command. This type of management looks like old style management (www.icmrindia.org).

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On the other hand, Carlos Ghosn taken all the decision by himself, but he motivated his subordinated by declaring performance based reward system to achieve goal. Carlos Ghosn also provided training to perform the job successfully. He established co-operation among different management level which create willingness to work spontaneously, he broken traditional organizational structure within organization. Carlos Ghosn leadership style looks like new style of management to achieve vision of the company. At the end of pre determined deadline, he achieved his goal. This achievement has considered extra ordinary, because he was first foreigner CEO of Japanese Company. He not only turned the finance and performance of the company, he also did very quickly. Even he rescued the Nissan from bankruptcy as well as turn into most profitable company.

4. Key areas of managerial effectiveness that improved by Carlos Ghosn:

There are several areas that are improved by Carlos Ghosn for managerial effectiveness which are discussed in the following-

Carlos Ghosn have established with the people of the company, a vision about where we are going, what is the destination, where we are going has to be share at all levels of the company. Carlos Ghosn built strategy about how do we go the ultimate goal, what are the plan of action as well as ensured that people of the company deployed at every level of the organization. He also ensured that what is the expectation from the employee for the organization. Mr. Carlos made strong connection with the people. He realized that without communication with the people, it is almost impossible to achieve organizational goal. That's why; he established some kind of direct and indirect relationship, felt the situation, and understood the expectation of the subordinate and responded to them.

Mr. Carlos, first identified the problem of the company, it was emphasis on short term purposes, excessive cost, more supplier and overlooked employee's interest. Mr. Carlos vanished organizational structure, ensured connection with people, bringing a vision that people were induced to understand and then delivering the result very quickly at the beginning to ensure people want to join the train that they deemed to reinforce the move.

Carlos was strong committed to the goal as well as more involved to exploit strategy. He also emphasis on employees satisfaction by ensuring performance based reward system and by giving room for making strategy which help to achieve designed goal within prescribed time (www.edition.cnn.com).

5. Plan of action for evaluating managerial effectiveness:

There are some variables that have direct links to managerial effectiveness, including: role behaviors, cope up with stress and difficulties, integrity, understanding about job as well as personal characteristics. There are also some other variable which might be salient for evaluating effectiveness for the manager. These are learning capacities and three are based on experience, one: cosmopolitanism, it means that individual have enough knowledge about to other language and culture, which help manager to utilized subordinate capability for organizational purposes. The other two variables are cultural heterogeneity and organizational cohort homogeneity. Cultural heterogeneity means individual ability to manage different diverse group within organization. Organizational cohort homogeneity means that the ability to induce work group similarity on perception of effectiveness.

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Managerial roles

Global complexity


Managerial effectiveness


Managerial capabilities

Fig: A conceptual model of managerial effectiveness

The above figure is based on concept not statistical. Personality means that influencing character that might help to explain own different experience and capabilities role behavior already been achieved. More personality indicates the manager effectiveness for the organization. Experience refers that capability and demographic variable which earn by doing job.

Managerial capabilities means ability to manage organization, it include four major types skill: learning behavior, resilience, business knowledge, positive activity.

Learning behavior includes learning from different culture, skill and motivation to do job as well as learn from culture. Leaning behavior helps to place right person for right job. Learning behavior is most important for managerial effectiveness.

Business knowledge means knowledge about job and business practices. It shows the capability to do job effectively. Managerial roles stand for the capability of the manager to conduct the basic function of their work. Managerial roles include building connection with subordinate, involvement and availability, fair and equitable treatment of employee as well as managing action. Another important factor for managerial effectiveness is that resilience. It means that ability to manage time, stress and ability to manage hassle situation (www.ccl.org).

The above quality those who can pursue, can be effective to manage organization.

6. Characteristics of change agent which reflect on personal traits:

A change agent must have some quality to change any organization. As a change agent I have following traits which are discussed in the following-

Visionary: I am much more visionary about my life. I am leading my life with proper planning. I make mission towards vision. As a change agent vision quality helps to proper changing.

Strong commitment: Strong commitment means determination to do some things. I am strong committed to exploit my plan in time, which helps to implement plan as a change agent.

Flexibility: Flexibility is my natural quality. I am always responding to change. I am able to adapt any changing circumstances. As a change agent flexibility helps to cope up with changing situation as well as managing with other people.

Personal initiative to go beyond defined boundaries: I have consistency to take initiative for work with other to solve unexpected problem, think outside of the boxes. I am not discouraging people to do again and again. Changing situation always uncertain, it needs to clear idea about consequences. As a change agent, initiative helps to overcome resistances and to cope up with unpredictable situation.

Motivated by myself and others: I am not only motivated by myself but also I have power to motivate others. I am able to create excitement and momentum others and provide opportunity people around them as well as to take personal responsibility for changing.

Caring about how people are treated enabled to perform: I am really caring about other people. I am also intent on enabling the performance of others as well as own.

Courage to challenge existing base and norms: I have an ability to develop the personal courage needed to sustain own commitment in the face of opposition, failure, uncertainty, as well as personal risk. In changing situation, people may

de motivated or resist to change. As a change agent courageous quality helps to induce other people to match with changing situation.

The above qualities can affect for effective change as an effective change agent for an organization.

7. Plan of action for effective change agent:

Effective change agent means, who alters human capacity or organizational system to achieve higher degree of output or better perspective of organization. Peter Drucker propose six C's for effective change agent, which are discussed in the following-

Commitment: Change agent must have strong commitment with the ability to preserve through crucial resistant to change. The change required to improve personal as well as time consciousness for the improvement effort.

Communication: Effective change agent depends on the skill how to communicate to the entire work force, when and why change is to occurred, and the ability to combination of input and output to transmit effectively to the subordinate which needed for change in the project goal. Communication is strongly needed for effective changes.

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Consensus: A mutual understanding is the best way to go forward for success. More involvement with the people which is easier to change effectively. An agreement about common matter, reduce complexity as well as hindrance to implement. The more connection to the changes, the greater inclined to change will be.

Consistent: People required to understand that change is needed for better perspective. Selling ideas and plan to subordinate by creating desirable and challenging vision for the future are required for effective change agent.

Cultivation: Encouraging and stimulating for learning and teaching all the level in the organization are crucial factor for effective changes. People needed to provide necessary training to cope up with changing situation and to resolve problem which arise for changing.

Co-operation: Making connection to at all level and perspective to subordinate and building as well as maintaining appropriate contact within and outside of the organization (www.leanjourney truthnorth.blogspot.com).

There are some others plan of action for an effective change agent-

Setting goal: Change agent should define realistic goal, where want to go. Change agent must have clear picture about the entire situation and have to emphasis on end result.

Flexibility: Change agent must have adaptability to cope up with changing circumstances internally as well as externally.

Training and motivation: Providing appropriate training to adapt with new situation and provide motivation to taking changing situation spontaneously


8. Conclusion:

For effective change required to effective plan of action. There is no quick solution for changing the culture of an organization. For effective change, management should focus on the quality of change as well as acceptances of change within organization outside side of the organization. Change agent needs clear picture of the consequence, strong motivation, proper understanding about people, and flexibility about responding. On the other hand, management also needs right step of action to exploit strategies to achieve organizational objective.