Leadership

Strategic fit express the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment. The matching takes place through strategy and it is therefore vital that the company have the actual resources and capabilities to execute and support the strategy. Strategic fit can be used actively to evaluate the current strategic situation of a company as well as opportunities as M&A and divestitures of organizational divisions.

Strategic fit is related to the Resource-based view of the firm which suggests that the key to profitability is not only through positioning and industry selection but rather through an internal focus which seeks to utilize the unique characteristics of the company’s portfolio of resources and capabilities. [1] A unique combination of resources and capabilities can eventually be developed into a competitive advantage which the company can profit from. However, it is important to differentiate between resources and capabilities.

Resources relate to the inputs to production owned by the company, whereas capabilities describe the accumulation of learning the company possesses. Resources can be classified both as tangible and intangible: Tangible: Financial (Cash, securities) Physical (Location, plant, machinery) Intangible: Technology (Patents, copyrights) Human resources Reputation (Brands) Culture Several tools have been developed one can use in order to analyze the resources and capabilities of a company.

These include SWOT, value chain analysis, cash flow analysis and more. Benchmarking with relevant peers is a useful tool to assess the relative strengths of the resources and capabilities of the company compared to its competitors. Strategic fit can also be used to evaluate specific opportunities like M&A opportunities. Strategic fit would in this case refer to how well the potential acquisition fits with the planned direction (strategy) of the acquiring company. In order to justify growth through M&A transactions the transaction should ield a better return than Organic growth. The Differential Efficiency Theory states that the acquiring firm will be able increase its efficiency in the areas where the acquired firm is superior. In addition the theory argues that M&A transactions give the acquiring firm the possibility of achieving positive synergy effects meaning that the two merged companies are worth more together than the sums of their parts individually. [2] This is because merging companies may enjoy from economics of scale and economics of scope.

However, in reality many M&A transactions fails due to different factors, one of them being lack of strategic fit. A CEO survey conducted by Bain & Company showed that 94% of the interviewed CEO’s considered the strategic fit to be vitally influential in the success or failure of an acquisition. [3] A high degree of strategic fit from can potentially yield many benefits for an organization. Best case scenario a high degree of strategic fit may be the key to a successful merger, an efficient organization, synergy effects or cost reductions.

University of Perpetual Help System DALTA FCL 6 Jerome B. Rustia BS-AE 1. ) Political Dynasty, is it acceptable or not? * Political Dynasty is not acceptable for me because it is not fair to other people who deserve in such position in politics. Give chance to other to have a good leadership. Not only in one family the true/wise leader will come, every family/dynasty have it. 2. ) Must there be an absolute separation of church and state? Church and state must have no absolute separation because church is commanded by God through the use of priest/pope, on the other hand in state it is head by an president, prime minister etc. . Those politicians are also choose by God also to help such people, to produce good things in our society and it is again commanded by God by different purposes. 3. ) Is same sex marriage acceptable in our modern society? * No, it is not acceptable in our modern society because as a Christian people and one of the Christian country in Asia, God only created 2 gender which are the men and women.

You can love your same gender as friend or companions but marrying them are not acceptable in the eyes of many people and in our God. 4. ) Was the Pope’s resignation beneficial or detrimental to the church? * No, because when you were choose by God as a Pope you must served God forever whether you have some deficiency. God has a purpose so you must stand on it. 5. ) Conflict in South China Sea or West Philippines, a failure in leadership or a historical dilemma? It is a failure in leadership because that island is Philippine territory it is closer to the Philippine than other country. . . so what are president do? He just talk to the Chinese President then what is the result? Like in what I saw in the television lately, the wild life resources that the Chinese caught in Philippine sea was not back yet in us. Why did the president do on that problem? He just sat there and waiting for the help of United Nation. We are independent country so the first move must be on us not in our alliances.

Jim Collins creates a sort of guideline for companies that are mediocre or have had mediocre performances who want to make the leap to becoming a great company. The way Collins came up with these guidelines is by studying 11 great companies that were selected from a list of Forbes 500 companies and deemed great companies using a criteria created by Collins’ research team. These 11 companies were than each compared to a company in the same industry with similar resources but who did not perform as well as the “great” companies in the 15 year time p in which the companies were studied.

Collins was able to create the flywheel concept out of his studies which is broken down into 6 parts. The one that is the focus of this paper is the level 5 leadership. Through the study of the “great” companies and through comparison with other companies, one of the major factors of the success of those companies was the type of leadership in place in the company. It takes a leader with two characteristics to lead a truly great company to that success and those are: personal humility and professional will.

The way a company can truly be great is by utilizing a level 5 leader who exemplifies the qualities that Jim Collins describes in his book, Good to Great. A leader is at his or her best when they are able to challenge the workers in the company and to inspire them by the way they lead. What is different about the level 5 leader that Collins describes is in the paradox of it all. A leader is quiet, laid back, almost to the point of being considered shy yet at the same time there is this incredible drive to be the best not for the sake of oneself but because that is what is best for the company.

The leader is put in that position of the company to shake things up and change the company culture but the leader does not have to be some hot shot from a different company here to save the day. No, this leader is from within the company, he knows everything there is to know about the company and he improves it everyday. No matter what the company always comes first before oneself and long after the leader is gone the company will continue to be great, in fact, a level 5 leader would consider themselves a failure if their successor and the company is not more successful than before.

Along with that the leader creates a culture of accountability while at the same time forming a mirror window effect; when things are going great the leader looks out the window to give credit but when things are going bad the same leader looks in the mirror to give himself blame. in essence he is taking the fear away from his employees in order to make them more invested in the company, by doing these simple steps the employee moral is kept high both during the good times and more importantly during the bad times. This quiet yet extremely driven individual is what makes a good company into a great company.

This idea that a leader has to be quiet and driven in order to be a part of a great company cannot be true. As a prime example there was Steve Jobs, he was a co founder of Apple, then left and co founded Pixar, all before returning back to Apple to make it one of best companies in the world today. He was charismatic, he was egotistical, he was given credit for the success of Apple and he graciously took it, he was a celebrity. When people think of Apple they think of Steve Jobs, he created Apple and brought it to its greatness. He was not a level 5 leader. He was extremely driven but he was not the quiet type.

He would not be the type of leader to just blend in with the crowd, instead hundreds of thousands would watch him during a new product release and hang on his every word. The fact that he was successful as the CEO of multiple big name companies while taking a large amount of the credit, that was well deserved, is one of the best counterexample to Collins level 5 leader. Steve Jobs was extremely devoted to the companies he worked for and he worked tirelessly to make sure they were the best that he could make them but he did all of this by going with his own style that contradicted the teachings of Collins.

There is no clear choice between a leader like Steve Jobs and the one that Jim Collins describes, a level 5 leader. There are too many factors in the business world and there are too many different industries to try to create description of the perfect leader. What Collins managed to do was to select 11 companies that he deemed great and he found similarities between the companies, one of those similarities being with the type of leaders those companies had in charge.

For those companies and the practices the companies had in place, that type of leader with personal humility and professional will was what was necessary. For Apple and Pixar it was a different type of leader that thrived, and in other companies it will be that same Steve Jobs type of leader that will lead them to greatness. It is not possible to create a prototype leader and companies should not try to do so they should put their efforts on finding the leader that fits their need the best whether that leader comes from within the company or from the outside.

EDLA 626 – Culture, Diversity & Human Rights Culturally Proficient Leadership: The Personal Journey Begins Within Summary: Part 1: Leadership as an Informed Personal Perspective Chapter 1: The Leadership Journey Begins Within Getting Centered – reality – many people in society still live segregated lives based on race / ethnicity, class – It is important that we look inward to ourselves in order to understand our reactions to people culturally different than us. – Such understanding allows us to effectively teach “other peoples’ children” Taking a Look at My School and What I See (and Don’t See) Schools and districts are influenced by social, political and economic forces not readily apparent. – Underlying the visible elements of our school communities are unapparent forces that make even more impact on our students, schools and us. – These invisible historical forces contribute to the sense of privilege or deprivation experienced in our schools that impacts our students, parents and us. – These forces are termed as equity issues and serve as the metaphorical elephant in the room that many pretend not to see. Are there “Equity Issues” in Your School? – Reaction to equity issues is dependent on one’s own experiences as a student. Different experience produced for students of different cultural groups (past & present). – Regardless of personal experiences, a school leader and his/her vision benefits from knowledge of historical context of access and equity issues. – Two expressed values not fully realized are universal public education through High School and equitable educational opportunities (ex. Only 27 states have compulsory education requirements to age 16). – Progress toward universal education is linked with advancement in equitable treatment and equal outcomes for students based on gender, race, ethnicity and ableness is also evolving. Prominent researchers have pressed the issue for equity in schools for 2 generations. Confronting the “Gaps” as a Leadership Issue – Leaders faced with challenge of leading schools in ways that provide equitable opportunities irrespective of a student’s culture – The mere composition of any school poses naturally challenges due to differences (culture, race, gender, socio-economic, achievement, etc. ). – Leaders need to address systemic access disparities of quality educational programs, experienced funding and equitable school funding otherwise the status quo of gaps will continue. More equitable funding alone does not even things out . . . must be accompanied by a change in the way many students are educated. – Important question for leaders: How do we meet the academic and social needs of students who come to school with a different set of values, beliefs, socioeconomic experiences, behaviors, language and ability? NCLB as a Leadership Tool – NCLB can serve as a tool to support access and equity efforts. – NCLB has made public aware of differential educational opportunity and achievement patterns that exist in our schools and communities. NCLB used as pretext to point out and address achievement gap issues. Such a gap is a multifaceted outcome measure of gaps in access to education. – Achievement gaps differentiated by race, ethnicity, gender, class, etc. are being highlighted by the media. Definitions of Key Terms – Culture: The set of practices and beliefs shared by members of a particular group that distinguish that group from other groups. – Cultural Informancy: Reflects our experience of having cross cultural relationships that are authentic and trusting which allow for mutual learning and feedback leading to personal growth. Demographic Groups: Often used in schools in pace of subgroup. – Dominant Culture: A culture readily visible in a classroom and school which often benefits from treatment, attention and success while others may be hidden and not apparent and not receive equitable treatment or attain equal levels of success.. – Equity: Access to material and human resources in proportion to needs. – Ethnicity: Ancestral heritage and geography, common history and to some degree physical appearance. – National Origin: A designation related to a person’s country of birth and prior citizenship. Nativism: The practice of valuing the rights of citizens born in this country over those of immigrants (marginalization effort & attempt of immigrants). – Race: A concept developed by social scientists and misinterpreted and used by groups to characterize people by their physical features and to use those differences to justify suppression of some while promotion of others. – Reflection: careful consideration of one’s behaviors, plans, values and assumptions in an effort to improve interpersonal and professional practice. – Sexual Orientation: An enduring, emotional, romantic, sexual or affectional attraction to another person.

It exists along a continuum and differs from sexual behavior because it refers to feelings and self-concept. Chapter 2: The Cultural Proficiency Leadership Lens – Provides an overview of the tools of cultural proficiency. Such will provide one with an important lens and knowledge for action. Getting Centered – Educational gaps are our issue with at least 3 arguments being important prerequisites: 1. We must acknowledge that educational gaps are historical and persistent. Although we inherited them, they cannot be ignored.

The issue of academic underperformance of children of poverty and some visible minorities is not new information. 2. If gaps are to be closed, we must move forward to examine our values, behaviors, policies and practices of our schools. 3. We can make a difference when we pay attention to who students say they are and their needs before the needs of our own and that of the school system. – Cultural proficiency is: • A process that begins with us, not with our students or their communities • A shift in thinking that moves us from viewing culture as problematic to embracing and esteeming culture. A lens through which we view our role as educators • A concept comprised of a set of four interrelated tools to guide our practice. Cultural Proficiency Is an Inside-Out Process – Cultural proficiency is an inside-out process of personal and organizational change. It is who we are more than what we do. – We are students of our assumptions about self, others and the context in which we work with others – Fundamental to addressing educational gap issues is one’s willingness and ability to examine yourself and your organization. Cultural proficiency provides leaders with a comprehensive, systemic structure to identify, examine and discuss educational issues in our schools. Cultural Proficiency Represents a Leadership Paradigm – Cultural proficiency . . . a mindset for how we interact with all people regardless of background . . . a worldview that carries explicit values, language and standards for effective personal interactions and professional practices . . . is a 24/7 approach to both our personal and professional lives . . . is not a set of independent strategies one learns to use with others. Educators who commit to culturally proficient practices represent a paradigmatic shift away from the status quo dominant group view. The paradigmatic shift moves from tolerating diversity to transformational commitment to equity. Cultural Proficiency as an Educational Leadership Lens – The following four tools of cultural proficiency can be used as a template for a leader’s personal and professional development: 1. Guiding principles on which you can build an ethical and professional frame for effective cross-cultural communication and problem solving. 2.

A continuum of behaviors that enables you to diagnose your values and behavior in such a way that you can better influence policies and practices of our profession. 3. Essential elements expressed in terms of standards of personal and professional conduct that serve as a framework for responding to academic and social needs of the cultural groups in your school & community. 4. Barriers to this work framed in such a way that you are intentional in the use of the guiding principles and essential elements. – Effective educational leaders are clear about themselves relative to working with and leading culturally diverse communities.

The Cultural Proficiency Toolkit – Cultural proficiency is comprised of an interrelated set of 4 tools which provide the means for a leader to guide his personal and professional development in a cultural proficient manner. • The Guiding Principles of Cultural Proficiency – Guiding principles provide one with a moral philosophical framework to examine & under-stand beliefs about the education of students from cultural groups different from them. – Guiding principles provide a framework of how the cultural diversity of students should inform professional practice when responding to student learning needs. A good place to see if school values align with predominant behaviors in the school is the mission / vision statement. • The Cultural Proficiency Continuum – Consists of 6 points. The first 3 (cultural destructiveness, cultural incapacity, cultural blindness) points focus on them as being problematic. The next 3 (cultural precompetence, cultural competence, cultural proficiency) focus on your practice as transformational leadership. 1. cultural destructiveness – see the difference and eliminate it 2. cultural incapacity – see the difference and make it appear wrong 3. ultural blindness – see the difference and act like you don’t see it 4. cultural precompetence – see the difference and act but inconsistently in appropriateness 5. cultural competence – see the difference and be inclusive 6. cultural proficiency – see the difference and respond positively, engage, adapt and commit to social justice / equity • The Five Essential Elements of Cultural Competence – These elements are standards for culturally competent values, behaviors, policies and practices I. Assessing Cultural Knowledge II. Valuing Diversity III. Managing the Dynamic of Difference

IV. Adapting to Diversity V. Institutionalizing Cultural Knowledge • Overcoming Barriers to Cultural Proficiency – There are barriers to achieving culturally proficient actions. They exist together in combination not as isolated events. I. Resistance to Change II. Systems of Oppression III. A Sense of Privilege and Entitlement •Cultural Proficiency is . . . – An approach for surfacing educators’ assumptions and values that undermine the success of some student groups – A lens for examining how we include and honour the cultures and learning needs of all students in the educational process.

The Importance of Documentation Documentation: Material, printed or electronic, that provides official information or evidence or that serves as a record. Why is documentation important? Without it there would be no record of anything. Humans have been documenting and recording important information for centuries. Information from inventory lists to details of wars, weather reports, past civilizations, and census data. As a non-commissioned officer having documentation when required is important in many aspects of my duties at work and even at home.

At work there are medical files and profiles, leave paperwork, ammunition requests, forms for vehicle repairs, parts requests, dependent documents… the list goes on and on but each document is important for its own unique reasons. Without medical files there would be no documentation of injuries or illnesses and what was done to treat them. What if the issue reoccurred? A physician would need the details of past treatments and medications to determine what the current treatment should be.

A medical profile is an important document for showing proof of health or injury related limitations or restrictions to avoid causing the issue to worsen. Without properly completed and filed leave paperwork a soldier’s leave request would be denied. Other paperwork ignored or improperly completed can result in mission failure, delayed repairs, etc. Dependent documents are imperative to ensuring eligible family members receive the benefits entitled to them. The NCO Creed: No one is more professional than I.

I am a Noncommissioned Officer, a leader of soldiers. As a noncommissioned officer, I realize that I am a member of a time honored corps, which is known as “the Backbone of the Army. ” I am proud of the Corps of Noncommissioned Officers and will at all times conduct myself so as to bring credit upon the Corps, the military service and my country regardless of the situation in which I find myself. I will not use my grade or position to attain pleasure, profit or personal safety. Competence is my watch-word. My two basic responsibilities will always be ppermost in my mind — accomplishment of my mission and the welfare of my soldiers. I will strive to remain technically and tactically proficient. I am aware of my role as a noncommissioned officer. I will fulfill my responsibilities inherent in that role. All soldiers are entitled to outstanding leadership; I will provide that leadership. I know my soldiers and I will always place their needs above my own. I will communicate consistently with my soldiers and never leave them uninformed. I will be fair and impartial when recommending both rewards and punishment.

Officers of my unit will have maximum time to accomplish their duties; they will not have to accomplish mine. I will earn their respect and confidence as well as that of my soldiers. I will be loyal to those with whom I serve; seniors, peers and subordinates alike. I will exercise initiative by taking appropriate action in the absence of orders. I will not compromise my integrity, nor my moral courage. I will not forget, nor will I allow my comrades to forget that we are professionals, Noncommissioned Officers, leaders! As an NCO, as a leader of soldiers, it is my responsibility to set the standard.

It is my responsibility to be the example and demonstrate that which I expect from my soldiers. Leadership, competence, responsibility, and accountability are the foundation of successful operations within the United States Military. That ability to train, prepare and lead men into combat has been a defining characteristic of our military for hundreds of years. The importance these skills cannot be underestimated. Leaders apply these skills to ensure a successful mission. Since the revolutionary war, men have been dedicating their lives to the freedom of our country.

These men were part of a team that received orders from leaders about how to overcome the enemy of the day. Today’s enemy is much harder to find, but the skills needed to succeed are easily to found here within the ranks of the United States Military, the thousands of men and women giving their best to lead soldiers. The words of the NCO Creed state clearly the responsibilities of the Army’s NCO leaders and the importance of these responsibilities is beyond measure. This country’s leaders have been teaching about leadership for quite some time.

As General George Washington expressed more than 200 years ago, serving as a Soldier of the United States does not mean giving up being an American citizen with its inherent rights and responsibilities. Soldiers are citizens and should recognize that when in uniform, they represent their units, their Army, and their country. Every Soldier must balance the functions of being a dedicated warrior with obedience to the laws of the Nation. They must function as ambassadors for the country in peace and war. When speaking to officer candidates in 1941, then General of the Army George C.

Marshall said, “When you are commanding, leading [Soldiers] under conditions where physical exhaustion and privations must be ignored; where the lives of [Soldiers] may be sacrificed, then, the efficiency of your leadership will depend only to a minor degree on your tactical or technical ability. It will primarily be determined by your character, your reputation, not so much for courage—which will be accepted as a matter of course—but by the previous reputation you have established for fairness, for that high-minded patriotic purpose, that quality of unswerving determination to carry through any military task assigned you.

Soldiers need to be able to have faith in their command to do what is right for the soldier and the country. Command is about sacred trust. Nowhere else do superiors have to answer for how their subordinates live and act beyond duty hours. Society and the Army look to commanders to ensure that Soldiers and Army civilians receive the proper training and care, uphold expected values, and accomplish assigned missions. Having a “good” commander is vital for unit cohesion and success. In Army organizations, commanders set the standards and policies for achieving and rewarding superior performance, as well as for punishing misconduct.

In fact, military commanders can enforce their orders by force of criminal law. Consequently, it should not come as a surprise that organizations often take on the personality of their commanders. Army leaders selected to command are expected to lead beyond merely exercising formal authority. They should lead by example and serve as role models, since their personal example and public actions carry tremendous moral force. Soldiers need to work in a positive environment. Many will argue that aggressive leadership inspires more work.

While this may be true, the motivating factors within soldiers of such a leader are going to be less personal than those found within a soldier who respects and values his leader’s guidance. How important is character in those trying to lead? The answer is of course that character is the defining element in a successful leader. Three major factors determine a leader’s character: values, empathy, and the Warrior Ethos. Some characteristics are present at the beginning of the leader’s career, while others develop over time through additional education, training, and experience.

It is essential to success that Army leaders lead by personal example and consistently act as good role models through a dedicated lifelong effort to learn and develop. The Army cannot accomplish its mission unless all Army leaders, NCOs, soldiers, and civilians accomplish theirs— whether that means presenting a medical profile upon request, filling out a status report, repairing a vehicle, planning a budget, packing a parachute, maintaining pay records, or walking guard duty. The Army consists of more than a single outstanding general or a handful of combat heroes.

It relies on hundreds of thousands of dedicated NCOs, soldiers, and civilians—workers and leaders— each doing their part to accomplish the mission. Each of their roles and responsibilities may differ, but they are no less important in reaching the goal. Every leader in the Army is a member of a team, a subordinate, and at some point, a leader of leaders. The Army relies on it’s NCOs to be capable of executing complex tactical operations, making intent driven decisions, and who can operate in joint, interagency, and multinational scenarios.

They must take the information provided by their leaders and pass it on to their subordinates. Soldiers look to their NCOs for solutions, guidance, and inspiration. Soldiers can relate to NCOs since NCOs are promoted from the junior enlisted ranks. They expect them to be the buffer, filtering information from the commissioned officers and providing them with the day-to-day guidance to get the job done. To answer the challenges of the contemporary operating environment, NCOs must train their Soldiers to cope, prepare, and perform no matter what the situation.

In short, the Army NCO of today is a warrior-leader of strong character, comfortable in every role outlined in the NCO Corps’ vision. NCO leaders are responsible for setting and maintaining high-quality standards and discipline. They are the standard-bearers. Throughout history, flags have served as rallying points for Soldiers, and because of their symbolic importance, NCOs are entrusted with maintaining them. In a similar sense, NCOs are also accountable for caring for Soldiers and setting the example for them. NCOs live and work every day with Soldiers.

The first people that new recruits encounter when joining the Army are NCOs. NCOs process Soldiers for enlistment, teach basic Soldier skills, and demonstrate how to respect superior officers. Even after transition from civilian to Soldier is complete, the NCO is the key direct leader and trainer for individual, team, and crew skills at the unit level. NCOs have other roles as trainers, mentors, communicators, and advisors. When junior officers first serve in the Army, their NCO helps to train and mold them. When lieutenants make mistakes, seasoned NCOs can step in and guide the young officers back on track.

Doing so ensures mission accomplishment and Soldier safety while forming professional and personal bonds with the officers based on mutual trust and common goals. “Watching each other’s back” is a fundamental step in team building and cohesion. An NCO is , giving leadership that is face-to-face or first-line leadership. This leadership occurs in organizations where subordinates are accustomed to seeing their leaders all the time: teams and squads; sections and platoons; companies, batteries, troops, battalions, and squadrons. The direct leader’s p of influence may range from a handful to several hundred people.

NCOs are in positions more often than their officer and civilian counterparts. Direct leaders develop their subordinates one-on-one and influence the organization indirectly through their subordinates. To ensure that I as an NCO, in a direct leadership role, positively influence and guide the soldiers around me, I have the responsibility, the obligation, to convey the example of the ideal soldier. Character, a person’s moral and ethical qualities, the ability to determine what is right and gives a leader motivation to do what is appropriate, regardless of the circumstances.

An informed ethical conscience consistent with the Army Values strengthens leaders to make the right choices when faced with tough issues. Since Army leaders seek to do what is right and inspire others to do the same, they must embody these values. As a non-commissioned officer having documentation when it is needed is important in many aspects of my duties at work but more than that it is important for me to set an example for the soldiers looking to me for guidance.

ORGANIZATIONAL BEHAVIOR-I CASE ANALYSIS All the Wrong Moves Submitted to: Dr. Saleena Khan Asst. Professor, OB & HRM Area IMT, Nagpur Submitted By: GROUP-1, SECTION-A Aakanksha Garg 2012001 Abhinav Aggarwal 2012007 Abhishek Gupta 2012013 Abinash Dash 2012015 Aditya Mohan 2012022 Akash Agrawal 2012029 Anant Kr Ajmera 2012040 Ankita Pandey 2012051 Introduction: This case is about a company ‘’ which was founded in 1986 by an organic farmer and his wife.

Nutrorim manufactures various lines of vitamins and nutritional supplements. The case is about the flaws in decision making process of the company. Don Rifkin is the main character of the case who tries to correct the decisions made by the company at the time of crisis or otherwise. The employees of the company give mixed and different reviews over the same discussions. Don the CEO of the company tried to find out the feedbacks with the help of consultants. While going through the case we tried to find out the main reasons for poor decision making of the company and tried to find the solutions for the same.

Background: Nutrorim which was founded in 1986 by an organic farmer and his wife had been at the top of its field. Nutrorim’ s products had gained national attention and the company’s organic, performance-enhancing supplement powder Charge Up had gone through the roof due to an endorsement by a famous Olympic athlete. This lead the Nutrorim to hire hundreds of new employees, expand its production facilities and acquire two vitamin firms. Nutrorim went public in the year 1997 and by 2002 Changeup was the best-selling performance-enhancing sports powder on the market.

Don Rifkin who joined Nutrorim as CEO in 1989 had tried hard to foster a happy, participatory, democratic culture at Nutrorim. Steve Ford was the head of the R&D section of Nutrorim. But during the past one year, Nutrorim had suffered from a spate of bad decisions. A consultant was hired to review the company’s decision making processes that had individual interviews with senior managers. Objectives: * Understanding the importance of objective analysis and oversight at strategic level decision making in an organisation Necessity to have a firm and clear hierarchy within an organisation for effective decision making in face of crisis. * Understand need for a Leader to identify the expertise that his subordinates have and assigning them responsibilities accordingly for running an organisation effectively. * Understanding the ineffectiveness arising out of decision making process in an organisation if it is too democratic at strategic level. Analysis: The said company was presented with an accusation that their product was making people sick.

The company’s options were to keep the potentially dangerous product on the shelves, which could turn into a law suit, or to accept the costs and do a recall. In meeting of the top managers there were huge disagreements on who should have the most power in the decision-making process and there was little organized discussion and not all the voices were being heard. There was a lack of centralized leadership that was able to weigh all the voices and make a more discerning decision. The committee members were not unified on what should actually be done.

Employees in positions of power did not ask the right questions to make well-informed decision. The decision to recall Charge Up was made under a lot of uncertainty and was the facts were not analyzed thoroughly before taking decision. The company knew the consequences of recalling or leaving the product on the shelves. This decision was a non-programmed decision that should be made by top managers. The situation was brought to a local radio station and the company began to panic that the information would go public ruining the company’s reputation.

There are too many people giving their inputs and many took the accusations personally which limited objective, productive discussions on what was the best action for the company to take. The company needs to name a person or a small group of people that are able to take charge in times of crisis in order to manage discussions better and make the ultimate decision. The leadership should be able to question or conduct research of cases surrounding their dilemma. The Leadership here wasn’t effective in identifying the expertise of its members which at times created conflicts within the team.

Solutions: * Nutrorim lacked a definite plan for taking actions when decisions are to be taken especially when a time was a constraint. * Don was correct when he wished to have a little democratic approach to taking decisions but relying completely on consensus resulted in beating around the bush too often and wasting a lot of time. Taking multiple perspectives of looking at a problem and finding its solution can be done systematically by the process of one by one feedback but the final decision must rest on the C. E.

O and the concerning department head as a decision taken by a majority vote may not be correct as the domain expertise of employees participating in the meeting shall be vivid (It depends on the area where the problem is arising). * In this case when Nutrorim was accused of causing gastric problems to its customers; a timely action was imperative as the name of the brand was at stake. Calling multiple meetings was a waste of time and actions should have been taken by Don as a leader himself after listening to every ones views. He should have instructed PR Director to immediately revert to the calls she got from the media person (radio station) to let the public know that since such an investigation is taking place the company gives maximum priority to its customer’s health and it shall even consider a recall till the time the investigations were completed by the health department. This action would make the public aware that the company was not trying to hide something under the carpet and it was cooperating with the health department. A decision has to be taken with all the facts and perspectives in mind and not just taken because it’s to every ones taste. Ones the rationale is clear behind the plan of action for addressing the problem at hand, the chair shall immediately ensure its timely execution. * Corporate culture was not sound. Steve’s behaviour towards Nora was inappropriate and his behaviour should have been condemned and sorted out by Don. It’s very essential for employees to work cordially for healthy functioning of an organisation. Presence of a Knowledge department in the company keeps a record of effective course of actions taken by other companies at the time of similar crisis in the past helps to take timely measures effectively. Learning from others helps in decision making. Theoretical Relations: * Bounded rationality: He could perceive that recalling the product is the only plan of action. He didn’t explore other options. * Rational decision making: He measured the options, took feedbacks from the other employees, and did a thorough study before taking a decision. Pro-active personality: He takes initiatives, has decision making abilities. * Employee engagement: He engages all the employees of the company in decision making process. * Workforce diversity: There is diverse workforce in the company. Managerial learning: * A manger should understand skills of each team member and assign them responsibilities according to their areas of expertise. * Controlling power: A manager should have firm control over the decision making process in the organization and should also be an effective team leader. Coordination: A manager should be able to establish coordination among the employees. There should not be conflicts among the employees if any then manager should intervene and resolve the same. * Balance between democratic and dictatorial approach: A manager should not be too democratic as well as dictatorial in decision making. REFERENCES United States Edition , entitled Organizational Behavior, 14th Edition, ISBN: 9780136124016 by Robbins, Stephen P. , Judge, Timothy A. , published by Pearson Education Inc. , publishing as Prentice Hall 2011

To successfully evaluate a work such as Principle-Centered Leadership, one must first examine the background of the author, in this case, Stephen R. Covey. He is a famous expert on issues of leadership, specialist in family issues, besides he works as an organizational consultant and vice chairman of Franklin Covey Co. From Stephen R. Covey’s pen came of several much-talked-of books, he is also an owner of numerous honors and awards; Time magazine named him among twenty-five most influential Americans. In 1990, following his successful Seven Habits of Highly Effective People (1989), Stephen R. Covey wrote a book entitled Principle-Centered Leadership.

This book was an evoked response to new conditions in business pre-caused by applying the natural laws of life to organizations described by the author and challenges leaders face in business by applying these natural laws. Covey underlines that the sustainable success of organization as well as the success of an individual, in particular, must be based on persistent work. Covey provides the interpretation of the natural laws, among which one can find security, guidance, wisdom, and power, and further on he expatiates how concentration on these laws and defined by him seven-habits practice bring about personal and organizational change.

Besides, according to Covey, determined commitment is prerequisite to success in business, and latter can be achieved only if one is ready to complete paradigm shift in long-range outlook. The paradigm, which author intends to bring for the reader, is many-sided and is conformable to classic dilemmas of contemporary life. The principle-centered leadership presents a new way of thinking based on timeless principles. These principles of human being presented on various levels including personal, interpersonal, managerial, organizational serve as a core of Convey paradigm. Each level is described by key law: personal – trustworthiness, interpersonal – trust, managerial – empowerment, organizational – alignment.

According to Covey principle-centered leaders are people, regardless the gender, who work on the ground of natural principles, or laws, and make those principles into the center of their lives, into the center of their relationships with others, into the center of their agreements and contracts, into their management processes, and into their mission statements (Covey 1990).

In this book Covey attempts to expound habits that basically help people to achieve effectively success both in their professional and personal lives.

This book is supposed to serves as a leadership philosophy guide, the guidebook to personal fulfillment and professional success through “principle-centered leadership” based on principles, showing how goals of excellence and total quality express an innate human need for progress in personal and organizational life. The book is aimed to show that a world of business is still based on the “power-brokering” and “strong-armed” approach to leadership and it needs to be changed. This book supplies managers of any level with instruments and vocabulary to acquire proper leadership quality and become mediators of appropriate change.

Covey describes traditional business workplaces as small societies where the colleagues that work together share the same political and social needs and interests as all people do in the society in its broad direct meaning. Thus, he suggests exploiting a “principle-centered leadership” paradigm for businesses that presumably is based on time-proved social values. As for any society the most important things are the maintenance of stability and order just the same for sustained success and more efficacy of any business such important thing is adaptation of the unilateral authority and government of a management hierarchy that views employees as economic units, not social participators.

However, in the “human relations paradigm,” this power is, to some extent, more well-disposed, it takes into account and accepts emotional needs, while remains the same strong. “Human relations paradigm” uses the creativity and talent of employees more extensively, though preserves its utilitarian sense. In any event, employees are usually only a means to reach the target of the company. It often happens that their initiative is not appreciated. In other words, Covey draws the attention to the fact that very often employees are not considered to be political and social peers in most companies.

According to Covey companies are facing a need to use all of the talents of their employees in order to achieve active competition of an infinitely more complex and dynamic economic landscape. He implies that a new principle-centered leadership paradigm is required. Moreover this paradigm is centered at the social and political “principles” of “fairness, equity, justice, integrity, honesty, and trust” (Covey, 1990). Admittedly, it is a paradigm that provides full citizenship within a company to all employees.

The author describes characteristics of a company operating with application of principle-centered leadership paradigm. The authorized employee, who stands in the base of the company, is trustworthy, in other words, he or she is highly-qualified and possesses the features of integrity and maturity. Such individual trait of trustworthiness develops trusting relationships among all other members of the company to such extent that constitutes the foundations of the company’s success. Trust also assists to achieve highly efficient communications among the company staff. The company is managed in compliance with “win-win performance agreements with negotiated accountability and consequences stipulations” (Covey, 1990). With such agreements in place, explicit managerial control is replaced by self-supervision (Covey, 1990). The author asserts that companies that have taken over principle-centered leadership cease to be autocratic, and have established a form of democracy.

However, one question arises while reading this book. Is the principle-centered leadership really democratic? The implementation of principle-centered leadership involves top-down approach. This paradigm intended for top leaders, possessing wisdom, with the purpose to convert their organizations by “communicating vision, clarifying purposes,” and establishing an overriding, governing mission (Covey, 1990). The aim of mission formulating is to increase employees’ feeling of making contribution. The author provides long-winded explanation why he offered such behavior which can heighten an executive’s honor and authorities with others. It becomes apparent that the principle-centered leadership paradigm is supposed to rest on charismatic leadership, which often calls to emotions and not comprehensive participation.

Covey’s concept of principle-centered leadership is based to great extent on his debates that principles of cooperation among people are “self-evident, objective, and external” as the natural laws should be. However, such statement seems to lack sound reason. Impartiality, integrity, and justice are all disputable points that often fall under strenuous debate in society. The all-wise leader does not have a hold on the definition of those ideals.

Principle-centered leadership adopts the frame of employee authority, but in reality it seems to be, to more extent, a paradigm in motivation. The aim in principle-centered leadership is to make employees, in imperceptible way, believe that the company is being managed in a well-disposed, impartial manner “by all-knowing, high-minded leaders towards lofty goals” (Covey, 1990).

The author fails to provide compelling and strong examples of conflicts that may accompany principle-centered leadership concept. These potential conflicts are, actually, underestimated as inessential compared to the prevalent devotion to a transcendent mission.

In conclusion, Covey fails to convince the reader of efficacy of principle-centered leadership treating it as indefinite concept and applying, unfortunately, no social approach to form the basis of this concept.

Bibliography

1. Covey, Stephen R., Principle-Centered Leadership New York, NY: Summit Books, 1990