Management And Org. Structure 17908 Essay Example

and an unhappy workforce."

Power refers to the ability to influence individuals and their behaviors in order to achieve a certain objective. Al Dunlap possessed various forms of power that allowed him to lead Sunbeam effectively. Firstly, he held legitimate power, which was derived from his formal position in the organization's hierarchy as appointed by the board of directors to be the CEO. Additionally, Dunlap possessed expert power due to his extensive knowledge and expertise in turning companies around, as evidenced by his successful rescue endeavors at American Can, Lily Tulip, Crown Zellerbach, and Scott. Finally, he possessed coercive power, which enabled him to enforce compliance through fear of punishment. This form of power was particularly prominent during the tumultuous events at Sunbeam. People would tremble in Dunlap's presence, and his intimidating behavior included throwing papers or furniture, banging his hands on his desk, and shouting intensely enough to blow back a manager's hair (Byrne 138). His management style instilled such fear that no one dared to challenge his decisions, even when they crossed ethical and legal boundaries within the corporate culture of any company. Transparent communication, flowing both from top to bottom and bottom to top, is crucial for any company to thrive.People were so intimidated by Al Dunlap that suggestions for improvement were left at the front door of his office. According to William Kirkpatrick, an operating manager who worked with Dunlap at both Scott and Sunbeam, in meetings with him, the purpose was not to tell him anything but to listen. If someone didn't meet their numbers, he would criticize them harshly. Dunlap's leadership style involved directive behavior, which relied heavily on one-way

communication and giving out tasks. He would often tell his followers what to do and how to do it. However, having power does not justify disrespecting subordinates. Mutual respect is necessary for a harmonious workplace.

As relationships deteriorated and people lost hope, decision making became solely in the hands of Dunlap as he was essentially unapproachable. It is widely recognized that collaborative decision making involving management teams is more likely to yield better outcomes compared to decisions made by an individual with their own perspective. This became apparent over time during Dunlap's reign. In accordance with Dunlap's restructuring plan, half of the company's 6000 employees and 87% of its products were eliminated. The human resources division saw its staff reduced from 75 to 17 (Byrne 134). These significant layoffs resulted in a severe shortage of skilled and experienced employees throughout the corporation, making it impossible to accomplish all the necessary work. The layoffs also included the termination of computer staff, which proved problematic when the company decided to upgrade their computer systems without any backup plan in place. This led to months of computer downtime and the need to manually record orders, resulting in a disastrous situation. Donald Uzzi, executive vice-president for worldwide consumer products, vividly described the consequences: "We couldn't bill our customers. We couldn't keep track of our shipments. Customers were calling day and night, asking where their orders were. Our customers were irate" (Byrne 134). As time went on, managers became increasingly frustrated with Dunlap's approach to operations. Despite his decisions exacerbating the situation, he still expected his employees to achieve the originally expected sales targets.If Dunlap had a management team acting as

advisors, providing fresh perspectives on more effective approaches, such incidents would be less likely to occur.

The use of fear and intimidation as a leadership style is not effective in motivating employees or creating a positive work environment. This was evident in the case of Dunlap, who was an achievement-oriented leader that set unrealistic goals for his staff. He would frequently stress the importance of meeting revenue and profit targets, often implying that their livelihoods depended on it. Failing to achieve these objectives would result in severe verbal abuse from Dunlap, adding to the already intense pressure experienced by those reporting directly to him. This atmosphere of pressure and intimidation further trickled down through the hierarchy, causing employee morale to decline as they struggled to meet increasingly challenging targets.

Consequently, individuals resorted to unethical and potentially unlawful practices in order to fulfill their quotas and secure their positions. These practices included withholding commissions from independent sales representatives, neglecting payment obligations, and coercing vendors into accepting partial payments.

In accounting matters, the company engaged in selling products at a discounted price when purchased six months prior. This allowed them to include future sales figures within the current reporting period. The primary objective for everyone involved was to reach the desired target number while avoiding encountering Dunlap's wrath.

Dunlap held his managers accountable for failing to meet their targets, as he had granted them generous stock options when he joined Sunbeam, which instantly turned them into millionaires. These options expanded the range of actions that Dunlop's employees were willing to undertake, prompting them to go beyond the norms of corporate culture and their personal moral code. Dunlap had a knack for

making his employees feel guilty if they couldn't meet his expectations. One employee remembered him saying, "You're receiving a salary to work here, and I've given you these options to potentially make you wealthy. Yet, you're disappointing me. I'm exerting great effort on Wall Street for your benefit, and you're letting me down" (Byrne 138).

Dunlap did not work with a team for critical nonprogrammable decisions, but he had a Chief Financial Officer, Russell Kursh, who had control over the accounting books and could alter them. Eventually, Dunlop's bad decisions and poor sales caught up to him. The company's atmosphere deteriorated, and Dunlap became disconnected from the business and its happenings. The board that Dunlap handpicked asked him to leave in mid-June, believing he was hiding the true condition of the company. The stock price tells the story, dropping to 8 13/16 when Dunlap was fired, lower than when he was hired in mid-1996 and compared to a high of 52 in early March 1998 (Byrne 128).

Great leaders have the ability to inspire their employees and lead them through difficult times. Similarly, successful companies are powered by dedicated employees who genuinely love their organization and will go the extra mile to ensure its success. However, when leaders misuse their power, respect for them diminishes. These leaders often make decisions based solely on their own perspective, neglecting the needs of others. Moreover, if these leaders also have explosive tempers, inflated egos, and use harsh language, the situation worsens. Additionally, I believe that a leader's sole focus on pleasing shareholders at any cost is detrimental to employee well-being and resembles child labor conditions in Burma. In my opinion,

creating a positive work environment with happy employees who respect their leader is crucial for achieving success.

Dunlap's downfall as a leader can be attributed to several factors, including a lack of teamwork, an unfavorable personality, and misguided intentions for improvement. These issues resulted in a continuous cycle of problems that few individuals had the ability to control, aside from the personally selected board of directors. The delay in Dunlap's termination can be traced back to long-standing relationships many people had with him. Moreover, when his departure was finally announced, no one wanted to take responsibility for it. Ultimately, Dunlap's firing was inevitable because his actions brought no benefit to the company. During a leadership lecture in Australia, Dunlap expressed his dissatisfaction with both Sunbeam and his board by stating "If you want a friend, buy a dog. I've got two" (Byrne 149). Despite the chaos he caused, Dunlap remains stubborn and blinded by his ego, making him unable to acknowledge his mistakes at Sunbeam. Acknowledging errors is crucial for improvement and success; therefore it is not surprising that he continues to be unemployed.

Bibliography

The reference for the article is Byrne, John A.. 1999 October 18. “Chainsaw.” BusinessWeek, 128-149.

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