Leadership Research Paper Managing Across the Organization Essay Example

just as dangerous as not understanding gravity and atmosphere in the physical/biological sphere. The establishment of a strong and cohesive culture within an organization greatly relies on its mission and vision.

By implementing an innovative organizational strategy and fostering a customer-centric and teamwork-oriented culture, Bob Lutz successfully prevented Chrysler from facing near bankruptcy during the early 1990s. Lutz's transformative leadership focused on promoting innovation and ensuring customer satisfaction. Throughout the last four years of his cultural overhaul, Chrysler received a staggering 4,600 suggestions from suppliers, out of which 60% were implemented, resulting in savings exceeding $235 million (Zatz, 1994). Lutz also established dedicated teams to tackle various aspects of the company's projects.

The development process was meticulously planned, and effective communication ensured that all teams understood their direction and goals. This prevented unexpected expenses for the company. Moreover, employees actively engaged in each step, taking responsibility for the success or failure of these objectives. Additionally, customer feedback was actively sought during every stage of the design process.

Chrysler achieved its goal of satisfying customers through Bob Lutz's innovative overhaul. In less than four years, $4 billion was saved in overhead costs and the stock price quadrupled (Zatz, 1994). The development of a strong organizational culture for Chrysler took time and careful planning, along with a clear vision.

The organizational culture of a company can be destroyed more quickly than it can be built. This was evident in the aftermath of the Daimler-Benz acquisition of Chrysler. Many cultural leaders within the company either chose to leave or were forced to depart. The new management, with a different vision, created chaos and resulted in low employee morale and financial difficulties for

the entire company. The current strength of Chrysler's organizational culture cannot be compared to the strength it had during Bob Lutz's leadership. According to the Symphony Orchestra Institute (2005), culture change is challenging and time-consuming because it is deeply rooted in the collective history of an organization.

When Unilever acquired Ben and Jerry's, the ice cream developers faced a justifiable worry. The employees, familiar with a laid-back and innovative work atmosphere, worried that being bought by a dominant and rigid corporation would disturb their sense of ease. Ben Cohen and Jerry Greenfield, founders of Ben and Jerry's, firmly believed in the essential role played by organizational culture in their company's success.

The previous owners of Ben and Jerry's had such a strong belief in their values that they created a three-part mission statement, consisting of a product mission, an economic mission, and a social mission. They prioritized employee comfort and social responsibilities when building the company. Despite undergoing a change in ownership, the CEO of Unilever ensured that the company's mission values were upheld. The employees at Ben & Jerry's have remained dedicated to social consciousness and their unique way of working. Unilever recognized the value not only in Ben ; Jerry's share of the gourmet ice cream market but also in its distinct atmosphere. Consequently, Unilever allowed the acquisition to maintain its individual identity while focusing on improving its financial performance (Kiger, 2005). Although Ben and Jerry's corporate culture may be less flexible now than before, it still operates within a distinctive organizational structure.

The significance of a robust organizational culture was acknowledged by Unilever, an exceptional corporation, which integrated it with the existing employee creativity. Consequently,

Ben and Jerry's Ice Cream observed a 37% growth in global sales, tripled its operating margins, and expanded into 13 new countries within three years (Kiger, 2005). Furthermore, Unilever enhanced the preexisting practice of charitable donations facilitated by Ben and Jerry's. The foundation of Ben and Jerry's company lies in their belief of demonstrating respect for individuals both inside and outside the organization, as well as for the communities they reside in (Ben & Jerry's, Inc.).

In 2008, Unilever, the parent company of Ben and Jerry's, followed Kiger's (2005) recommendation by donating 7.5% of its pre-taxed revenue to various causes and employing eco-friendly packaging. Moreover, Unilever offered job opportunities in low-income regions while also supporting Ben and Jerry's social mission through a $1 contribution.

Unilever's corporate chiefs were able to maintain the organizational culture of Ben and Jerry’s and improve its structure, expanding the thriving business while ensuring employee happiness. This was achieved through their acute business sense, as evidenced by their allocation of 1 million a year to charities selected by the employees (Kiger, 2005).

3M, a company known for its innovation and ingenuity, has a long history of internal talent development. For over 100 years, every CEO at 3M has started at another position within the company (www.businessweek.com).

James McNerney joined 3M with the intention of controlling the company's excessive spending habits. When McNerney was hired, 3M's stock price was declining due to inefficiency and overspending. Recognizing the need for change, he implemented the Six Sigma processes that he had learned at GE. As a result, 3M's stock price increased by 20% and its brand was revitalized. This new management approach also involved tightening standards on

process improvements and resulted in the elimination of 11,000 jobs.

When he left approximately 4 years later to pursue another venture, the company realized a new problem; did the Company lose their ability to innovate and their culture at the expense of profit and process control? Prior to McNerney’s arrival, 3M was a company where ideas and inspiration were the key factors to success. Creators such as Art Fry, the inventor of the Post-It note, were encouraged to take time to develop pet projects (www.businessweek.com). Employees could go to the company to get funding for such projects, and the company culture celebrated the innovation while understanding that failure would happen on the way to these eventual victories. The respective production teams, advice teams, and project teams worked together to achieve results. This team based structure was very healthy and offered a positive subculture as well.

According to an article on Businessweek, McNerney's DMAIC philosophy (define, measure, analyze, improve, control) had positive effects on certain aspects but had a negative impact on innovation. The emphasis on getting things right the first time hindered the continual refinement and revision of ideas that had previously been a hallmark of 3M. This resulted in a stagnation of new ideas, which had previously accounted for 25% of their business in the last 5 years. However, when new CEO George Buckley took over, he aimed to reopen channels that his predecessor had closed. As a result, R;D spending was increased by 20%.

According to www.businessweek.com, 3M encouraged their employees to shift their focus from Six Sigma policies that stifled creativity to problem-solving team resolution techniques. As a result, the company's employee culture was

revitalized, allowing them to dream again. Though they have retained certain aspects of Six Sigma philosophies from the reign of McNerney, they have adapted them to align with their own core values.

This situation demonstrated the struggle in conflict management that was present in the simulation. The leadership changes at 3M could have had a negative impact, but with strong leadership, the company's future looks promising. Similarly, the Indianapolis Colts, a professional football team, encountered numerous challenges on their journey to becoming champions in their field. They accomplished this by winning the Super Bowl against the Chicago Bears last year. Fans and analysts throughout the league agreed that this team had finally achieved victory in the major game. However, little attention was given to the business structure of the Colts' management team and what it took for them to reach this significant milestone.

Team Owner Robert Irsay and President Bill Polian successfully employed management strategies to revive a previously struggling franchise, resulting in their greatest achievements as a team. These tactics encompassed the prioritization of overarching objectives and the cultivation of emotional intelligence within the organization. However, the pivotal element in this transformation was a change in head coach. In 2000, the Colts were under the leadership of Jim Mora, a highly esteemed coach who displayed indications of lacking the necessary emotional regulation required to effectively guide his team during that particular season.

The team's performance significantly declined from two consecutive seasons with 10 wins to only 6 wins that year. Mora had difficulty handling criticism both from external sources and his own players, which reached a breaking point when he had an outburst following a poor game

and publicly criticized the team in front of journalists. In the following weeks, Mora experienced emotional breakdowns during press conferences after additional losses, where he begged to keep his job. Ultimately, his inability to control his emotions resulted in his dismissal. The team then hired Tony Dungy, a coach renowned for being composed. Dungy opted for a systematic and direct approach instead of Mora's emotionally-driven teaching methods that often led to unclear instructions.

The person's problem-solving approach revolved around involving others and considering their ideas. He also included players in decision-making. The team had a culture that prioritized divisional wins, playoff qualification, and ultimately winning the Super Bowl. This culture was reinforced to create a positive work environment where everyone could balance their NFL commitments with personal priorities. While winning was important, ethical behavior and playing by the rules were also emphasized. These concepts align with the simulation as Dungy's focus on emotional stability mirrored Good Sport's efforts to prevent emotional instability among its founders. The emphasis on overarching goals impacted both the Colts team and members of Good Sport.

The company's focus on research and development clashed with the goals of growth and fundraising. However, Dungy's leadership transformed the team's atmosphere. The Goldman Sachs Group recognized the importance of developing staff skills and promoting lifelong learning. To address this, Mark Tercek, a Goldman Sachs' employee, co-leads the Pine Street Initiative.

According to Goldsmith (2007, p.1), the Pine Street initiative is Goldman Sachs' leadership development effort aimed at managing directors, with the goal of ensuring quality leadership within the firm. This initiative, highlighted on the Goldman Sachs website, focuses on four criteria: "leaders teaching leaders," "bias to action,"

"strengthening client relationships," and "aspirational" (The Goldman Sachs Group, 2008).

The Leaders Teaching Leaders program focuses on cooperative mentoring, where senior members collaborate to achieve organizational goals. Bias to Action emphasizes the importance of learning through tasks and taking responsibility. Strengthening Client Relationships aims to give clients access to Goldman's training model by inviting their management to join Pine Street. Lastly, Aspirational focuses on guiding future leaders of Goldman Sachs to meet the company's future needs. According to Tercek, these features ensure that Goldman Sachs continues to produce exceptional leaders (Goldsmith 2007.P. 1).

Pine Street's emphasis on personal growth and development aligns with the concept of stretch goals presented by Steven Kerr and Steffen Landauer. Stretch goals involve tasks that lack a clear path to completion, requiring individuals to creatively approach and solve the issues at hand. Goldman Sachs implements this idea by encouraging their leaders to set goals within their job descriptions and take on responsibilities that expand beyond their respective departments (Kerr, S., Landauer, S.).

In the simulation "Managing the Organization," a fitness company promotes a role-player to the position of Vice President in the Production Department. As Vice President, they are tasked with addressing a senior manager who did not receive the promotion. It is evident that the senior manager requires more experience. An example of grooming future managers can be seen in The Goldman Sachs Group.

The senior manager could benefit from a program like the one Pine Street offers. The Ritz-Carlton Hotel Company In the simulation, the final task that it sets forth is a position of CEO and the accompanying struggles that come with it. There are quite a few problems

that were left behind by the previous CEO. The previous CEO was very autocratic in his approach to managing Good Sport. Morale is low and quality has also suffered.The Ritz-Carlton hotel chain was in a similar position in the early 1990’s.

During the late 1980s and early 1990s, the hotel's quality declined to the point where some individual hotels were facing foreclosure. To address this issue, Howard Schulze was appointed as Chief Operations Officer (COO) with the intention of improving the situation at Ritz-Carlton (The Ritz-Carlton Company, 2001). Schulze's goal was to transform Ritz-Carlton into a high-quality hotel chain. He began by studying and comparing other organizations that had been honored with the Malcolm Baldridge National Quality Award, a prestigious federal award given annually to exceptional companies that demonstrate a strong commitment to quality in both their operations and products.

Schulze initiated visits to renowned companies and devised a method to implement quality assurance principles at Ritz-Carlton. Collaborating with top management, he created a credo and standard that applied company-wide. This became the foundation of the company and resulted in significant enhancements in service and customer satisfaction. The Ritz-Carlton Hotel Company was honored with Malcolm Baldridge National Quality Awards in 1992 and 1999.

The Ritz-Carlton Hotel Company is the only service-oriented company to have received the award twice. In 2000, they established The Ritz-Carlton Leadership Center to provide training and consulting to other companies interested in learning from their business model. According to their website, the center offers services that can help organizations create lasting change, outperform competitors, and increase employee and customer loyalty. Many companies have benefitted from the advice and training provided by the center. Steve

Jobs has been closely associated with Apple Computers since he and Steve Wozniak built the first personal computer in their garage in Cupertino, California in 1976. Jobs' personality, competitive spirit, and innovative approach have played a defining role in Apple's rise to power.

Although Jobs was forced to leave Apple in 1987, he is widely credited for revitalizing the struggling company when he became interim CEO in 1997 (Apple Inc., 2008). Losing my job at Apple turned out to be the best thing that ever happened to me, even though I didn't realize it at the time. The weight of success was replaced by the freedom of starting anew, uncertain about everything. Jobs spoke about this at Stanford University in 2005 (Kahney, 2006). He returned to Apple in 1997 when they acquired his company NeXT and its NeXTSTEP operating system.

Jobs became the interim CEO of Apple after Amelio was ousted by the board of directors. Amelio's tenure was marked by a significant decline in stock price and financial losses (Apple Inc., 2008). Even today, Apple maintains a corporate culture characterized by a strong work ethic and a relaxed dress code. When Jobs assumed the role of interim CEO in 1997, he was often seen walking around the Apple campus barefoot wearing cutoff shorts and a black shirt (Apple Inc., 2008). Apple has always been perceived as a rebellious company, in stark contrast to traditional giants such as IBM

With Jobs' comeback, Apple revitalized its image of being a catalyst for individuality and brilliance, thereby attracting and retaining highly skilled personnel. The Apple Fellows Program is one method utilized by the company to acknowledge its top employees, commending

them for their outstanding technical or leadership contributions in the realm of personal computing (Apple Inc. 2008). This program functions as a management tool comparable to the Good Sport simulation, where managers are presented with various options for recognizing their employees' achievements.

The Apple Fellows program acknowledges leaders and encourages healthy competition, invigorating the innovative spirit within the company. This fosters extraordinary brand loyalty within the Apple corporate culture, as noted by J. D. surveys.

According to Apple Inc. (2008), Apple has the highest brand and repurchase loyalty among computer manufacturers. Similar to Willy Wonka and his chocolate factory, Apple and Jobs prioritize the secrecy of their new products. Even Apple managers attending the introduction of the iPhone in January 2007 were rumored to be seeing it for the first time. Apple has strict repercussions, including dismissal and possible prosecution, for employees and business partners who leak company secrets (Lewis, 2007) (Markoff, 2007). Apple Inc. has achieved long-term success by emulating a corporate culture based on a charismatic CEO. As Jobs stated during the iPhone introduction in 2007, "Occasionally, a groundbreaking product emerges that revolutionizes everything. It's incredibly fortunate if you can contribute to just one of these innovations in your career."

Apple has been fortunate to introduce a few of these, as stated by Steve Jobs in 2008.

Walmart

In February of the previous year, a panel of three federal judges in San Francisco upheld a lower court decision from 2004, allowing a massive gender discrimination class action lawsuit against Walmart, the largest retailer in the nation. This lawsuit could potentially involve 1. million current and former employees of Walmart (NUPGE, 2007).

Wal-Mart is denying the allegations and is taking

action to reverse the decision. The complaint identifies seven present and former employees of Wal-Mart and Sam’s Club stores in California. The class action is seeking to expand beyond the individual cases and invites any female Wal-Mart employee who believes they have experienced discrimination since 1998 to join the lawsuit. The lawsuit claims that Wal-Mart established a system that often pays female employees less than their male colleagues for similar positions and overlooks women for important promotions (Freedman, 2003).

According to statistics from 2001, commissioned by the plaintiffs, Wal-Mart paid men more on average than women in all job categories, with a greater disparity in higher-level positions (Solman, 2004). Mona Williams, a spokesperson for Wal-Mart, counters that the company's expert analyzed the same payroll data but obtained different findings. Williams argues against the class action lawsuit by stating that Wal-Mart is a decentralized company where store managers have discretion in hiring and promotions. Wal-Mart has a presence in 3,000 stores across the United States.

"We still have some work to do there," acknowledged Williams, in reference to the proportion of women in management. "But we're taking action to rectify that. For instance, we're committed to promoting women at the same rate as their job applications, if not better" (Solman, 2004). Within the company, Wal-Mart is extensively working to transform the detrimental corporate culture that played a part in the lawsuit. "It's crucial to ensure that Wal-Mart provides an excellent workplace for all," emphasized Wal-Mart President and CEO Lee Scott in 2003.

According to Troy (2003), it is important to ensure equality and fairness for all individuals in terms of treatment, pay, and promotion. During this year's annual kick-off

meeting, Wal-Mart CEO Scott emphasized the positive societal impact that the company continues to exhibit. Scott made a commitment to taking action on energy efficiency, ethical sourcing, and accessible healthcare (Anonymous, 2008). The sexual discrimination class action lawsuit against Wal-Mart has the potential to become the largest private civil rights case in history if allowed to proceed. Losing this case could result in the payment of billions of dollars in compensatory and punitive damages (Freedman, 2003). Starbucks has been facing a decline in sales and a significant drop in stock prices. In the quarter ending September, the company reported a decrease in transactions per store (Anonymous).

30. Starbucks' share price reached its lowest level in more than three years in January, at around $18. As a response to declining sales and the drop in share prices, the board of Starbucks requested former CEO, Howard Schultz, to resume his position as CEO. Schultz has implemented modifications to the senior management team in order to boost sales and stock prices, including bringing back Harry Roberts from retirement to serve as senior VP-chief creative officer.

Terry Davenport has been promoted to senior VP-marketing and Michelle Gass has been promoted to senior VP-global strategy (York, pg 35). Schultz intends to focus on new store openings in the U.S., while also investing overseas and striving to reconnect with consumers through the introduction of new products and improvements in store design (Helm, McGregor; Hindo, pg 28). Additionally, he plans to close struggling locations and streamline bureaucracy. The decline in customer numbers has been partly attributed to the decline in customer service quality.

According to Kirby, the rapid increase in the number of

Starbucks worldwide has resulted in a strain on employee training and a decline in customer service, which has affected the company's ability to charge premium prices for its drinks (pg 56). Additionally, competition from other stores such as Dunkin' Donuts and McDonald's, which offer cheaper prices, has led customers to choose these options over Starbucks. To regain customers and boost sales, Schultz aims to make Starbucks special again by slowing down expansion in America, closing unproductive stores, expanding internationally, improving the customer experience, and streamlining management (Starbucks runs into trouble). Southwest Airlines, on the other hand, has been focused on employee retention and internal promotions.

Southwest Airlines implemented a reorganization of their employee orientation process in response to the significant number of employees leaving within their first year of employment, despite having a relatively low turnover rate of 4.6 percent. According to Bryant (pg 36), the company acknowledged this issue and aimed to improve employee retention.

Southwest Airlines offers new employees an online orientation that includes a message from leaders, information about benefits, and an interactive history lesson. Employee volunteers are there to welcome and assist new employees. A senior leader attends every class to emphasize the importance of living the Southwest Way (Bryant, pg 36). Scarce resources in the American workforce today are knowledge, entrepreneurship, and human capital (Nowicki & Summers, pg 118). The decline in new employees, the scarcity of human capital, and the redesigned orientation contribute to Southwest Airlines' leadership position.

Southwest Airlines understands the importance of equipping our leaders with the necessary tools and skills to effectively lead in an ever-evolving aviation and customer service industry. The company recognizes that in

order to stay ahead, it must adapt to these changes. Therefore, a continuous emphasis on cultivating strong leadership is vital for our ongoing success. (Bryant, pg 36)

Southwest Airlines prioritizes its employees and views learning as an essential aspect of their unique culture (Bryant, pg 38). To ensure enjoyable learning experiences, Southwest has established the University for People, which offers a university-style curriculum to support continuous and progressive employee development. This commitment to learning aligns with Southwest's initial priorities, which were to prioritize employees above customers and shareholders (Nowicki ; Summers, pg 120). By putting employees first, Southwest believes it can provide excellent customer service, thereby fulfilling its second priority of ensuring customer satisfaction.

According to Blanchard (n.d.), successful leadership in today's corporate environment relies on influence rather than authority. In the past, managers would exert their authority to run corporations. However, modern management trends emphasize the importance of leadership for achieving business success.

According to Ward (2008, para 1), leadership is the act of motivating a group of people to work together towards a common goal. There are ten defined styles of leadership, which include autocratic, bureaucratic, charismatic, democratic or participative, laissez-faire, people-oriented or relations-oriented, servant, task-oriented, transactional, and transformational leadership (n.a., 2008, para 3). Autocratic leadership is an extreme style where employee suggestions are not allowed and the manager has complete control over job operations. While there may be situations where autocratic leadership is necessary, it can have a negative impact on individual employees.

This kind of leadership results in a high employee turnover rate and absenteeism. Another form of leadership that offers minimal employee involvement is bureaucratic leadership, where leaders strictly adhere to established rules. When

there are no ambiguous areas, ethical conduct is prioritized and employee safety is usually the primary concern. Charismatic leadership necessitates a confident and enduring leader. Charismatic leaders are exceptionally inspiring, and employees become enthusiastic followers. Although not completely team-oriented, charismatic leaders have more faith in themselves than others, but they ensure that the tasks are accomplished.

Individuals enthusiastically follow this leader, but the project may fail without their presence. On a more participatory level, the democratic leader has the authority to make the final decision, but it is influenced by contributions from her team. Team members are encouraged to engage in the decision-making process. Democratic leadership empowers individuals and inspires them to perform at their highest potential. In contrast to the other leadership styles mentioned earlier, individuals under democratic leadership aim for success based on personal fulfillment rather than monetary motives.

Similar to democratic leadership, laissez-faire leadership allows individuals to work independently, without micromanagement. Managers communicate extensively with employees, who are given autonomy to complete their tasks. While this approach can sometimes result in project issues, under normal circumstances, employees feel a sense of accomplishment in successfully finishing a project. Managers often utilize both people-oriented and task-oriented leadership styles simultaneously.

People oriented leadership involves managers organizing, supporting, and covering the people, while task orientation involves managements organization, involvement, and monitoring of tasks. People oriented leadership and task oriented leadership are often used together to be more effective. Using one style of leadership without the other can lead to project failure, similar to autocratic leadership. People orientated leadership fo