A consideration of telecommuting from the perspective of managerial decisions means that, a lateral direction model of managerial decisions has to be adopted whereby the manager has to engage employees outside an organizational work place that is centralized (Sardeshmukh, Sharma & Golden, 2012). According to Matthews & Williams (2012), the management style has to change from classical management styles to Laissez-faire management style where most of employees work by telecommuting.
In this style of management, employees are motivated to work independently and allowed to nurture their creativity by getting a chance for their ideas to flourish. The management should then provide guidance when need and facilitate brainstorming in decision-making, which makes the manager to seem more of a mentor instead of a leader (Matthews & Williams, 2012). This makes it difficult to accomplish common objectives, which require frequent meetings to exchange ideas due to lack of trust and teamwork originating from the lack of frequent face-to-face contact (Sardeshmukh et al., 2012).
In this style, management takes a hands-off approach to leadership.
Staff is trusted to do their work without supervision, and they are left to control their decision making and problem-solving.
Management is present at the delegation and delivery stages of work, but otherwise steps back and gives staff the freedom to control their workflow and outcomes. Management is only involved during the process if the staff requests their assistance.
References
Matthews, H. S. & Williams, E. (2012). Telework Adoption and Energy Use in Building and Transport Sectors in the United States and Japan. Journal of Infrastructural Systems, 11(1), 21-30. doi:10.1061/(ASCE)1076-0342(2005)11:1(21)
Sardeshmukh, S. R., Sharma, D., & Golden, T. (2012). Impact of Telework on exhaustion and job engagement: A job demands and resources model. New Technology, Work and Employment, 27(3), 193-207. doi:10.1111/j.1468-005X.2012.00284.x
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A low calorie or healthy option microwavable food is a fresh concept which has gained a lot of interest among consumers. A majority of consumers are evaluating the food products provided in the market and consideration is given to the healthiest diet. Thus, introduction of microwavable products made up of low calorie has gain a high market due to consumer’s health concerns. To cater for the needs of the market, managers must formulate methods that will increase the product’s market share and profitability while increasing value to consumers.
As such, the intention of this paper is to outline a plan for managers in anticipation of rising prices, examine the major effects the government have on production and employment, determine whether government regulations are fair in the food industry, examine the major complexities under expansion via capital projects, and lastly suggest how a company could create convergence between the interests of stock holders and managers. The Company aims to keep the prices of its products as inelastic as possible.
Low calorie dietary is the new form of healthy foods and it has gained a lot of popularity among the consumers. In schools, homes, and restaurants, the concept of healthy feeding is not new. With the emergence of many chronic diseases, people desire to live healthy lives and lifestyles, thus the need for low calorie diets as will be produced and sold by Lean.
The purpose of this paper is to assess the main impacts the government has on production and employment, if government policies and laws facilitate fairness, determine the complications of expansion, and finally, offer recommendation on the merger of a company’s stakeholders and the management. For sustainable growth and profitability, the firm seeks to have the prices of its products as inelastic as it possibly can (Sullivan and Sheffiran 2013).
It therefore means that the strategy used for pricing should have no effect on the way consumers recognize and purchase the commodities. In general, the type of demand occurs only for products that are essential for the normal living of consumers. However, the situation is not the same for food products that are microwavable. Elasticity of demand for low calorie products highly depends on the offered price, availability of substitutes, expenditure on promotions, income level of consumers, and prevailing economic conditions.
Considering the demand function and elasticity, low calorie products are favorable in a monopolistically dominated market. In a monopolistic competitive market, buyers and sellers are usually few. Therefore, if one company raises its prices, consumers shifts to another brand. As thus, firms in this market increase demand for their products through differentiation.
ThProfit (NP) = Total revenue (TR) Total Cost (TC)
According to the FOC of profit maximization,
=Marginal Revenue =Marginal Cost = 0
So Marginal Revenue = Marginal Cost
By applying the elasticity of 1.9, it was stipulated that demand for low calorie microwavable processed products is low. Since the company purposes to keep the prices of the products inelastic, it will strategize on differentiation to obtain a competitive advantage in the market. Differentiation is important since consumers will be able to pick the product from other substitutes hence increasing the sales. More so, it is proved that when product differentiation is noticeable to competitors, a firm’s market power and leadership increases. As such, it is advisable for the firm to strategize on product differentiation to increase the rate of returns.
Globally, the government usually has the mandate of regulating the market to protect consumers and the firms. However, whether markets are regulated or unregulated they are always influenced by the forces of demand and supply. As such, government regulation is critical for stability. For instance, the government handles externalities through provision of public utilities such as roads, contracts enforcements, and supply of currency (Wall and Griffin 2013). All theses aspects are better done by the government compared to private firms whose main aim is profit making.
A lot of discussion has been made on determination of the activities that the government is limited. Though regulations are important, extreme policies and laws are adverse to the growth of an economy. An ideal economic climate is only possible when government regulations are in accordance with the prevailing market conditions. The main reasons that the government involves itself in a market are enactment of policies and rules to facilitate exchange between buyers and sellers, and enforcement of the policies.
In the area of employment government sets rules for employers to follow when selecting, recruiting, and compensation. No employee should be paid below the set minimum wage rate, they are to be treated humanely and allowed to interact and work freely without fear of intimidation. Labor unions and other industrial agencies set regulations for firms follow failure to which employees have the right of suing the firm.
The government also limits production through the taxation rates, production costs, and prices for raw materials (Frank 2013). When terms are favorable, firms are able to produce to full capacity but when there is over production, the government sets higher terms to stabilize the market. As such, the effects the government will have on the company are limitation of production capacity and selling prices, employment, and eventually profitability since regulations are costly to the firm.
It is the mandate of the government to ensure the market is stable and at equilibrium for benefit of all stakeholders (MIT 2012). For instance, without intervention, big mergers and monopolistic conditions would be possible leading to excessive exploitation of the consumers. Thus, the government gets involved by limiting mergers and monopoly situations. It is fair for the government to get involved in the low calorie microwavable commodities to control prices, limit entrants and exit for fair market competition, and avoid emergence of monopolistic powers that would made the firm irrelevant.
When many unregulated firms are in the market, price wars would lead to consistent low prices causing the prices to be unstable. More so, unregulated market causes poor quality goods to be introduced as firms seek to minimize production costs for profits.
Thus, the major reasons for government involved are to control prices, ensure that the market is stable for protection of local firms, and protect consumers from exploitation. For microwavable foods, firms have to correctly label the contents of the products and they should be processed in certain measures to avoid provision of unhealthy contents. Moreover, regulations also assist in protection of the environment where firms are supposed to observe efficient waste management practices, as well as reduce usage of production methods that release poisonous gasses in the environment.
An example of government involvement is the control of industries in China which have the tendency of producing smog that forcing people to wear masks to avoid getting contaminated. These goods are exported to US and other countries and the government has set measures to control the packaging of the products, their distribution and usage. Additionally, the government enforces policies to regulate the banking and finance industry by setting minimum interest rates so that consumers are not exploited and for banks to remain in business.
Some capital projects that the firm could undertake are mergers or acquisitions for expansion purposes. The reason for the projects is to increase market share, share operational risks, and increase market leadership and profitability (Harris et al. 2014). However, these projects bring complexities such as collusion between the shareholders and management. Managers tend to get additional capital from the reserves or by requesting shareholders to top up using their savings.
Shareholders may not be willing to use their reserves or contribute extra capital due to uncertainty of the venture. To avoid the complexity, managers should undertake projects that have high chances of generating returns in the short run by carrying out comprehensive evaluation of the project. For instance, managers should acquire a brand that is already dominating in the market to avoid experiencing losses.
Convergence between managers and shareholders is created through a firm’s strategic decision making process and through the use of financial statements. Whereas the shareholders own the company, they have limited control over the decision making process and the actions of management. On the other hand, managers are responsible for controlling the affairs of the firm.
Managers seek for higher income and allowances irrespective of a firm’s performance while shareholders are usually interested in higher profits for increased dividends. As such, shareholders seek for firm’s growth through mergers. However, mergers may compromise manager’s job security and control leading to divergence between the interests of shareholders and managers.
Therefore, strategic decision making should be done such that managers get allowances and salaries depending on the generate profits. If profits are high, their salaries are high and vice versa. As a result, managers will become productive so as to get high profits and allowances and in the process, the interests of shareholders will be met and both parties will be satisfied. Therefore, convergence of shareholders and managers lead to higher profits since managers become preoccupied in generating high revenues so that they pay is high and when the revenues are high, dividends are also high.
Instances that bring convergence of the interests of managers and shareholders include: managers being employed on contractual terms such that their contracts are renewable if they perform as required, and application of commission terms whereby managers are paid depending on the income generated at a certain period.
It therefore shows that the government should get involved in microwavable food market to ensure products are of high quality, control monopoly activities, and stabilize the market. For better returns, managers and shareholders should have a common vision and the needs of each party considered. The firm is likely to excel and attain market leadership through product differentiation since demand is inelastic, ensure all the needs of stakeholders are met, and follow government conditions as they relate to production and employment.
References
Frank, R. (2013). Microeconomics and Behavior, (7th ed.). New York, NY: McGraw-Hill.
McGuigan, B. P., Moyer, R. C., &Harris, F. H. (2014).Managerial economics: Applications, strategies and tactics, (13th ed.). Stamford, CT: CengageLearning.
Mit. (2012). Government Regulations in the Market. University of Cambridge.
This paper intends to discuss operations management. Operations management is a term used to describe the supervision and organization of business practice as a way of creating a high level of efficiency in an organization (Brandon-Jones, Slack, Chambers, Johnston, and others 2016, p.8).
Furthermore, operations management is also concerned with the conversion of materials along with labor into profitable goods and services for an organization (Hodari, and Sturman 2014, p. 434). Notably, in order to effectively discuss operations management, the paper will consider Hilton Hotel UK.
Task 1
General Model of Operations
The paper will look at the concern of Hilton Hotel UK towards the environment, how it retains and empowers employees, and how it addresses the needs of society. Moreover, the paper will also look at the relationship of Hilton Hotel UK with its suppliers, and the relationship and responsibility of Hilton Hotel UK towards investors.
In addition, the paper will also pay special attention to customers by analyzing the quality of products offered to customers by Hilton Hotel UK and assessing whether the products ensure customers receive the value for the price they pay for products. Furthermore, the paper will analyze if the management of the business addresses the needs of owners.
Task II
Operations Strategy
Service Operations Concept
At Hilton Hotel UK, customers are allowed to make on line reservations through a website for Hilton Hotels http://www.hilton.com/en/hi/customersupport/index.jhtml that offers customer support (Bohdanowicz, Zientara, and Novotna 2011, p.797). However, Hilton Hotel UK also provides the option of making a reservation for a room, from a Hilton Hotel UK office desk, where customers present themselves physically.
Notably, when customers are already at Hilton Hotel UK, they are served with special meals from the restaurant section of the hotel, a children’s menu and beverages from the bar section (Gerritzen 2014). In addition, Hilton Hotel UK also provides a fitness center for its customers, as it aims at giving customers a homely feeling when they are far from home.
As customers check out from Hilton Hotel UK, lounge services are provided by the hotel to enhance on comfort to customers (Chen, Wang, and Chu 2011, p.213). Furthermore, Hilton Hotel UK also offers luggage hold, baggage storage and delivery services to its customers as they check from the hotel (Chon, and Yu, 2012).
Competitive Objectives Spider Diagram
In terms of competitive objectives, Hilton Hotel UK focus on increasing the efficiency of its services through increasing online platforms for service delivery, which impacts on the speed and efficiency of service delivery and also interconnecting of Hilton Hotels branches. Moreover, Hilton Hotel UK also observes the quality of services it offers.
For instance, the hotel provides a separate menu for children meals to make a visiting whole family comfortable (Boone, Veller, Nikolaeva, Keith, Kefgen, and Houran 2013, p.230). In addition, Hilton Hotel UK also observes the value of being dependable. For instance, the hotel offers services of foreign exchange to its customers.
Furthermore, Hilton Hotel UK observes flexibility in service delivery through attending to different types of customers with different needs, such as business men, families, and customers seeking comfort. The cost charged for getting services from Hilton Hotel UK depends on the services a customer requires. Therefore, there are a number of variations in costs charged to clients. For instance a client who requires Wi-Fi services will be charged more.
The four V’s Diagram
Hilton Hotel UK is a branch of a hotel that is believed to be the fifth largest globally. Therefore, Hilton Hotel UK is believed to serve a volume of more than 10 million customers every year (Brookes, and Roper 2012, p.580). Moreover, Hilton Hotel UK offers a variety of services, including recreational services, fitness services, comfort, relaxation and luxury services, along with business convenience services.
Therefore, Hilton Hotel UK enjoys variability in demand from customers who want to conduct business, customers who want to travel but still keep up with their routine for fitness, and also customers who want to enjoy quality family time Boone, Veller, Nikolaeva, Keith, Kefgen, and Houran 2013, p.230). Hilton Hotel UK also has visibility to end user, where its website is restrictive to only people who can form legal binding contracts (Alon, Ni, and Wang 2012, p.379). Moreover, the website also gives restrictions on the materials to be used by the website visitors.
Task III
Focused Analysis
Product/Service and Process Design: Hilton Hotel UK provides a number of products for its customers. However, the products are divided into various categories depending on the target group and requirements of the target group. The diagram below summarizes the two main target groups for Hilton Hotel UK, the products category of the products offered to the two main groups and their process.
Convenience to Business Men: Notably, Hilton Hotel UK offers business men with an appropriate environment for doing both their money generating activities, and their relaxation activities. First, Hilton Hotel UK provides rental services to business men for audio equipment and visual equipment (Brookes, and Roper 2012, p.580).
Therefore, business men can be able to conduct their meetings from Hilton Hotel UK. Secondly, Hilton Hotel UK has a special business center. Within the special business center, Hilton Hotel UK allows business men to have business phone services. Therefore, business men can still coordinate and control their firms and companies back at home, from Hilton Hotel UK.
In addition, Hilton Hotel UK also provides and arranges for courier services to business men utilizing their services. Thus, business men cannot complain of their business reports, and personal messages not getting to them on time. Consequently, business men are able to have regular monitoring of their businesses even when they are physically available in their home offices (Eva M Smith 2015).
In case a business man wants to record a message through speech, which the business man intends to use later or on another day for transcription, then Hilton Hotel UK has a Dictaphone for attending to such a business man’s needs. In another scenario, a business man may want to telephonically transmit materials that have been printed and scanned to his company back at home. To address such a need, Hilton Hotel UK has an available fax machine, which has been set aside for use by business men staying in Hilton Hotel UK rooms (Gerritzen 2014).
Markedly, Hilton Hotel UK has been receiving customers from around the world, who converge at Hilton Hotel UK with a sole aim of conducting a meeting, or a series of meetings. Therefore, Hilton Hotel UK has addressed the need by its clients by constructing and reserving a number of rooms as meeting rooms. Moreover, when a meeting is held, all members available in the meeting are issued with flyers, programs and agendas for the meeting to be held on that day. T
hus, Hilton Hotel UK identified that their customers require photo copying services, hence started providing business men with the service (Hanioglu, and Arditi 2013, p.370). In addition, Hilton Hotel UK also has a printer set aside for providing printing services to business men, who are utilizing services of Hilton Hotel UK.
Outstandingly, Hilton Hotel UK is an international hotel therefore the customers seeking the services of Hilton Hotel UK are from different social classes in society. In several cases customers may be high profile personalities, and people holding influential positions in their companies (Tufts 2014, p.52).
Therefore, the work load mandated to such personalities is huge, which then implies that such people require assistance. Thus, Hilton Hotel UK has attended to this need by providing secretarial service. Hilton Hotel UK also identifies that some of its customers work through team work. Hence, there is need for communication between the business men and their home offices.
Thus, Hilton Hotel UK provides the service of video conferencing (Petrović, Jovičić, Marković, and Gagić 2013, p.76). Moreover, some business men value communicating with people when they can see their faces, thus Hilton Hotel UK has a video phone to cater for the need. In addition, most business men require the internet to efficiently conduct their business therefore Hilton Hotel UK has Wi-Fi available in the rooms.
Comfort and Luxury to Business Men: Hilton Hotel UK attends to the comfort needs of business men by providing exchange services for foreign currency, staff members that communicate in different languages, a deposit box for safety and also baggage storage (Ransley, and Ingram 2012). Moreover, Hilton Hotel UK also offers an executive lounge that business men can hire, gives laundry services, room services, elevators for getting to the private rooms, and also allows for visitors (Henderson 2013, p.452).
Comfort and Luxury to families: Hilton Hotel UK identifies that a large number of its customers are families who intend to get a special experience away from home together. Therefore, Hilton Hotel UK has a number of plans in its delivery of services that suit families perfectly. Among the plans is providing two menus. One of the menus is a children’s menu while the other one is an adults menu (Hoefakker 2014).
The reason for having two menus is to ensure that, the family gets as much comfort as possible, while at the same time living a healthy lifestyle. In order, to comfortably fit and spend time together, Hilton Hotel UK provides cribs to accommodate families. In the cribs there are high chairs that add on to the comfort and uniqueness of the stay at Hilton Hotel UK (Jung, Ineson, and Green 2013, p.394).
In addition, Hilton Hotel UK offers families with tours, which are meant for sightseeing. Such tours impact on the feelings of family members, make them have a more close relationship and also turn the stay at Hilton Hotel UK to be a memorable one for the family (Kim, Palakurthi, and Hancer 2012, p.198). At Hilton Hotel UK, the management identifies that for any family, health is the number one priority. Therefore, all family members require achieving fitness for their bodies.
Thus, Hilton Hotel UK attends to the need by family members through providing a fitness room. Additionally, bathroom and bedroom doors are built with enough entrance space of 32 inches (Niewiadomski 2015, p.178). The aim of concentrating on the size of bedroom and bathroom doors is to make people feel at home despite their sizes, since some are plus sized, while others are slim and others medium sized.
Task IV
Improvement
From the analysis of Hilton Hotel UK, it is evident that a number of areas need improvement. First, Hilton Hotel UK charges extreme high prices for clients using Wi-Fi services at the hotel. This problem is attributed to using Swisscom as their internet provider. Swisscom is globally known as unstable and outdated. The offering given by Swisscom is very complex while its reliability is extremely low. Moreover, customers are given restrictions on the number of megabytes that they can download (Jung, Ineson, and Green 2013, p.395).
Consequently, a customer is forced to purchase a number of vouchers if they intend to do video streaming. In addition, the network provided by Swisscom has regular changes occurring to the bandwidth, along with the speed of surfing. In some cases changes in speed of surfing may turn from great into poor and later to disconnect (Lee 2013, p.35). It is therefore recommended that Hilton Hotel UK makes changes to their internet network.
Moreover, it is also worth noting that, at Hilton Hotel UK phone reception may be a problem in some cases. This is due to poor network at the hotel rooms, since there are no signal boosters or stable routers for surfing network. Therefore, customers who work from indoors are inconvenienced and forced to seek better network connections in nearby areas such as malls and shops (Kim, Palakurthi, and Hancer 2012, p.198).
Furthermore, Hilton Hotel UK charges exaggerated prices for drinks taken from the Hotel’s mini-bars (Kasim, Gursoy, Okumus, and Wong 2014, p.1092). For instance, a bottle of Coke with a capacity of 0.2L is sold at 4.5 Euros, which further implies that if one is interested in buying a whole liter of Coke then he/she will be expected to part with 22.5 Euros. Notably, 22.5 Euros are further expensive compared to the prices charged for a wine bottle in Hilton Hotel UK (Chen, Wang, and Chu 2011, p.213).
Additionally, though the bathrooms of Hilton Hotel UK are ok, it would be expected that the shower would be separate. However, that is not the case. It therefore becomes even more irritating that the shower is separated by a curtain. Hence, when a customer is in the bathtub, they might regularly feel the touch of the curtain on their skin (Kasim, Gursoy, Okumus, and Wong 2014, p.1098).
Management of allocation of rooms at Hilton Hotel UK is another important thing to review. Notably, customers who pay for rooms online have a higher likelihood of getting rooms that are lower in value that what they have paid for. Evidently a number of customers who paid online to book for rooms at Hilton Hotel UK have complained on the Hotel’s website. This is brought about by poor management of online platforms (Hodari, and Sturman 2014, p. 445).
In addition, since Hilton Hotel UK is located in a very busy place, it would be recommendable to provide cab services to customers. Cab services from Hilton Hotel UK would help in reducing the inconveniences Hilton Hotel UK customers undergo when trying to check in to Hilton Hotel UK or to check out of Hilton Hotel UK (Tufts 2014, p.52).
Furthermore, in order to improve on the convenience of customers travelling around UK it is important for Hilton Hotel UK to review the interconnection and interrelation policies of all Hilton Hotels UK, to enable customers move from one branch to another, by being allocated rooms of the same value they have paid for.
Hilton Hotel UK should also focus on holding regularly, team building activities for their employees and also increase the motivational activities held for employees. This is in a bid to improve on customer attendance services. Notably, when employees are in a good mood, and love their work, then they are likely going to offer high level services to customers, show concern and even try to form friendly relationships with customers (Kim, Palakurthi, and Hancer 2012, p.200).
For security of customers’ belongings, though Hilton Hotel UK offers a safety deposit box, it would be recommendable to construct large safes inside customers’ rooms, which can fit a laptop in. The safe should also be protected by electric cables.
Notably, Hilton Hotel UK uses key cards for getting access to the rooms. Sadly, key cards are known to have a tendency of getting mysteriously deactivated (Ransley, and Ingram 2012). Deactivation can be attributed to proximity of the key card to a customer’s mobile phone, but also it can be attributed to having misunderstandings over the time the customer is expected to check out from the room. Therefore, one issue that needs attending by Hilton Hotel UK is the efficiency of operation of key cards in accessing rooms.
Citing the need for controlling the temperatures of rooms at Hilton Hotel UK, the hotel has a system for climate control. Though the system works in a favorable way, it is recommendable for Hilton Hotel UK to upgrade the system into a system that produces minimal or no noise at all. Moreover, Hilton Hotel UK should consider issuing customers with earplugs when they issue toiletries (Henderson 2013, p.452).
The need for earplugs is to deal annoyance on customers when they have noisy neighbors or when there is construction going on. In addition, it is also important to construct hotel rooms with windows that all customers can comfortably reach and open when they feel the need for fresh air. Mostly, the hotel rooms at Hilton Hotel UK have raised windows that a majority of customers can barely reach to open (Gerritzen 2014). It would be important for Hilton Hotel UK management to address this issue when renovating the rooms.
Most customers of Hilton Hotel UK complain on the website of Hilton Hotel about the position of power outlets. In most rooms customers are expected to bend below the desk and plug in whatever they want to charge. It would be a thoughtful idea to move the power outlets to desk level or have power outlets stuck on the nightstand of every room.
Task V
Challenges and Conclusion
Challenges
In the near future Hilton Hotel UK is likely to face two challenges. The first challenge will be an influx of customers to Hilton Hotel UK yet the number of employees at Hilton Hotel UK cannot be able to meet their demands. In addition, Hilton Hotel UK might also experience a shortage of rooms to accommodate the large number of customers visiting from different parts of the world.
The second challenge Hilton Hotel UK might be facing in the near future, is competition from upcoming hotels. Many investors have identified that there is great opportunity in the hotel industry, and the rewards from investing in the hotel industry are also attractive. Hence, many investors are turning to the hotel industry, where they are coming up with new hotels that offer latest facilities.
Conclusion
The paper above has discussed operations management by looking at the case of Hilton Hotel UK. Using a general model of operations the paper has analyzed the environment of Hilton Hotel UK, how Hilton Hotel UK relates with suppliers, owners, investors, society and the employees. The paper has gone ahead to discuss operations strategy at Hilton Hotel UK by looking at the service operations concept, the competitive objectives by the use of a spider diagram, and the four Vs diagram.
In addition, the paper has also provided a focused analysis of Hilton Hotel UK by looking at product and process design at Hilton Hotel UK. Furthermore, the paper has further given recommendations on improvements that Hilton Hotel UK might consider doing and also revealed possible challenges that Hilton Hotel UK may encounter in future.
Reference List
Alon, I., Ni, L. and Wang, Y. (2012). Examining the determinants of hotel chain expansion through international franchising. International Journal of Hospitality Management, 31(2), pp.379-386.
Bohdanowicz, P., Zientara, P. and Novotna, E. (2011). International hotel chains and environmental protection: an analysis of Hilton’s we care! programme (Europe, 2006–2008). Journal of Sustainable Tourism, 19(7), pp.797-816.
Boone, J., Veller, T., Nikolaeva, K., Keith, M., Kefgen, K. and Houran, J. (2013). Rethinking a glass ceiling in the hospitality industry. Cornell Hospitality Quarterly, 54(3), pp.230-239.
Brandon-Jones, A., Slack, N., Chambers, S., Johnston, R., Lysons, K., Farringhton, B., Stevenson, W., Russell, R., Taylor, B., Krajewski, L. and Ritzman, L. (2016). Operations Management. Pearson Education Limited.
Brookes, M. and Roper, A. (2012). Realising plural-form benefits in international hotel chains. Tourism Management, 33(3), pp.580-591.
Chen, Y.C., Wang, W.C. and Chu, Y.C. (2011). A case study on the business performance management of Hilton Hotels Corp. International Business Research, 4(2), p.213.
Chon, K.S. and Yu, L. (2012). The international hospitality business: Management and operations. Routledge.
Eva M Smith, S. (2015). Hotel Revenue Management Strategies during Fall Foliage Travel Season. Journal of Hotel & Business Management, 04(01).
Gerritzen, N. (2014). Hilton Olympia Hotel London. NHTV Breda University of Applied Sciences.
Hanioglu, M.N. and Arditi, D. (2013). Teaming/timing sequences in hotel development projects. Construction Management and Economics, 31(4), pp.369-385.
Hodari, D. and Sturman, M.C. (2014). Who’s in charge now? The decision autonomy of hotel general managers. Cornell Hospitality Quarterly, 55(4), pp.433-447.
Hoefakker, C. (2014). Hilton London Gatwick Airport Hotel. NHTV Breda University of Applied Sciences.
Jung, T.H., Ineson, E.M. and Green, E. (2013). Online social networking: Relationship marketing in UK hotels. Journal of Marketing Management, 29(3-4), pp.393-420.
Kasim, A., Gursoy, D., Okumus, F. and Wong, A. (2014). The importance of water management in hotels: a framework for sustainability through innovation. Journal of Sustainable Tourism, 22(7), pp.1090-1107.
Kim, Y.J., Palakurthi, R. and Hancer, M. (2012). The environmentally friendly programs in hotels and customers’ intention to stay: An online survey approach. International journal of hospitality & tourism administration, 13(3), pp.195-214.
Niewiadomski, P. (2015). International hotel groups and regional development in Central and Eastern Europe. Tourism Geographies, 17(2), pp.173-191.
Petrović, M.D., Jovičić, A., Marković, J.J. and Gagić, S. (2013). Territorial expansion of hotel chains in countries of South-Eastern Europe. J. Geogr. Inst. Cvijic, 63(4), pp.75-92.
Ransley, J. and Ingram, H. (2012). Developing hospitality properties and facilities. Routledge.
Tufts, S. (2014). 5 The hotel sector in an age of uncertainty. A Hospitable World?: Organising Work and Workers in Hotels and Tourist Resorts, p.52.
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Ethical Dilemmas Faced by Senior Managers in Manufacturing Companies
Ethical Dilemmas Faced by Senior Managers in Manufacturing Companies
Introduction
In a perfect and ethical world, business organisations and their employees are envisaged to always be engaged in doing the right things. However, it is unfortunate that in the real world of business ventures, ethical dilemmas have become a common occurrence in determining many decisions taken by these organisations (Frisch and Huppenbauer, 2014 p. 24). According to Brown and Corder (2011), dilemmas are problems or situations where an individual or an organisation has to make a difficult or challenging choice between diverse options either, and ethical dilemmas are problems or situations where a choice has to be made between an immoral and a moral act.
Senior managers must often deal with pressures to deliver and help the companies they work for succeed irregardless of their decision choices and personal temptations to uphold business ethics by ensuring that they only decide to choose moral actions whenever faced by an ethical dilemma (Schwartz, 2016 p. 757). As a result, senior managers working in manufacturing companies are likely to often face numerous issues that conflict between the business interests, professional ethics and ethical business practices, and this makes it important for them to rely on ethical theory in order to arrive at the best ethical solutions to such issues (Marques, 2012 p. 5).
Part 1: Breaking Down the Case Study Problem to Expose the Ethical Conflict
As a senior manager in the company, it is important to breakdown the problem caused by the business practice provided in the case study for the purpose of exposing the challenge faced in making an ethical decision, which is necessary to enable a moral action to be taken in order to solve the issue.
A consideration of the business practice presented in this case study; it is undoubtedly evident that this is scenario of scandalous dumping of hazardous children’s sleepwear garments which have been treated with TRIS, a potentially carcinogenic agent. This is an unethical business practice that has been common in corporate circles without the knowledge of consumers, and only occasionally attracting the attention of conscientious citizens.
This is because most cases of dumping, especially to underdeveloped countries are performed quietly, in which the products move unnoticed from the countries they are manufactured and not authorised for sale to underdeveloped countries where such bans do not exist.
For instance, after it was found that TRIS used as a fire retardant in clothes could possibly cause cancer and sleeping clothes for children that had been made from clothing materials treated with TRIS were not allowed for sale in the UK, the manufacturing company decided to dump its huge stock to countries that are less developed in Asia, Latin America and Africa.
Although the bottom-line motive of dumping is always profit, products that are hazardous are usually dumped to solve varied problems. For non-manufacturers including the brokers, wholesalers, retailers, exporters and importers, the problem is generally just a matter of inventory. However, for the manufacturers who have invested capital in tools, machines, personnel, dies, assembly plants and land; the problem is not that simple.
Thus, they often embark on dumping millions of manufactured units to underdeveloped countries because they have been banned from sale in countries where they have been manufactured either because they are substandard or hazardous; through a process which often involves voluntary withdrawal of the product and closing up shop.
According to Edwards and Kirkham (2014), there is need to always comply with these principles of ethics which clearly demonstrates ethical dilemmas faced by senior managers of business organisations that often involve complex situations that commonly lead to an apparent mental conflict about making choices between moral imperatives. Often, a decision to obey one option commonly results in the transgression of another (Elm and Radin, 2012 p. 315). As a result, ethical dilemmas sometimes referred to as ethical paradoxes from a philosophical perspective are mostly invoked in an attempt of improving a moral code or an ethical system to solve the paradox, or refuting it (Dion, 2012 p. 6; Shah and Amjad, 2016 p. 58).
For instance, the principle of beneficence which is also closely related to the concept on universal love provides guidance to the decision maker in order to ensure that he/she makes the decision to do what is good or right guided by the principle of loving neighbours as oneself (Perle, 2014). This prioritisation of doing what is good which is anchored on ethical theory allows a possible solution that is acceptable from an ethical perspective to be developed and implemented for an ethical dilemma (Eisenbeis et al., 2015 p. 637).
This principle of beneficence stipulates that, it is essential in any action to strive to achieve the greatest amount of good through ethical theories because the most good is always beneficial to the people; hence, the principle of beneficence is associated with the utilitarianism (Hollingworth and Valentine, 2015 p. 458).
Similarly, the principle of least harm which is also associated with utilitarianism deals with problems or situations in which no particular choice among the possible options appears beneficial; this forces the decision maker to embark on seeking to make a choice likely to cause the least harm and the fewest number of people (Huhtala et al., 2013 p. 255).
Snellman (2015) reiterated that justice ethical principle or respect for basic human rights requires a decision maker to be focused on ensuring that their actions are fair to the people involved. As a result, there should be consistency between ethical decisions and the ethical theory unless justifiable extenuating circumstances exist in the case (Susong et al., 2013). A consideration of the problem presented in our case study from the perspective of the principles of beneficence, least harm and justice; it is undoubtedly clear that, there is an ethical dilemma between either destroying the TRIS treated textiles leading to loss of revenue or exporting the huge stock of these hazardous garments to underdeveloped countries where they were not banned (Shin, 2012 p. 301).
Based on the background set in the principles of ethics discussed above, it is possible to use ethical theories in order to make sure that the best and ethical action is taken to solve the problem or situation observed in the business practice under consideration. For instance, the Kantian ethics which is a form of deontological ethical theories is closely related by the rights ethical theory and it states that, for any action to be good it must be based on goodwill and a duty of the moral law. Thus, through the Kant ethical theory one believes that other people should be free or even forced to take similar actions that are good in similar situations (Marques, 2012 p. 5).
This means that this ethical theory can be used to make sure that obligations and duties of employees are followed to without violating the basic rights of other people such as liberty, life and the pursuit of happiness. As a result, the course of action should cause the least harm and to the fewest number of people (Huhtala et al., 2013 p. 255). In addition, the utilitarian ethical theory which is closely related to the Aristotle Virtue ethics requires that the action taken, to be the one that brings the highest level of benefits and this can help to enable an ethical decision is made to take the best and morally correct action by demonstrating wisdom, integrity, courage and compassion.
Therefore, based on these ethical theories the best action to be taken and that is correct in terms of ethics and morals would be to destroy the remaining garments and also recall all the exported garments manufactured using the clothing materials that had been treated with TRIS, a flame retardant that had been found to cause cancer. Therefore, since these garments have been banned for sale in the domestic market because of their potential hazardous human health impacts; destroying the remaining stocks and also recalling the exported stocks for destruction would achieve the greatest good to customers while causing the least harm and to the fewest number of people as stipulated in both utilitarian and rights ethical theories (Shin et al., 2015 p. 45).
Additionally, the Kantianism ethics which is a form of deontological ethical theories can also be used to ensure appropriate policies and frameworks to prevent this scenario occurring in future are formulated based on the stipulated obligations and duties of a senior manager; and ensure that they are strictly followed without violating the basic rights of other people (Martinov-Bennie and Mladenovic, 2015 p. 191).
Part 2: Implementation of the Best and Ethical Action to Solve the Discussed Issue
As a senior manager in the company, it is important to make sure that the best action in terms of correct ethics and morals is taken to address the problem or challenge caused the business practice that has been carried out by the company. This is because the company which manufacturers sleeping garments for children had sold huge stocks of its hazardous clothes made from clothing material treated with TRIS, which can cause cancer countries that are less developed in Asia, Latin America and Africa because they were already prohibited for sale in the UK.
As a result, it is not known the number of children likely to develop cancer in underdeveloped countries considering that several millions of sleepwear garments treated with the flame retardant agent had already been exported to these countries after they were banned from sale in the domestic market. Thus, there is need to systemise, defend and recommend concepts outlining right and wrong business practices that are unethical in order to determine the best moral standards through implementation of the best action in terms of ethics and morals in order to solve the problem (Weiss, 2013).
When a company employees at all levels are faced with ethical dilemmas, ethical theories are important in providing a foundation for decision-making, especially when ethics are at play since they inform or guide the viewpoints from which business organisations or individuals make decisions to take moral or immoral actions (Albert, Reynolds and Turan, 2015; Annas, 2015; Crews, 2015).
The ultimate goals of using these ethical theories as guidance in making business decisions include least harm, beneficence, justice, and respect for autonomy (Bedi, Alpaslan and Green, 2016 p. 518). The need to ensure that a quick resolution of the discussed problem or challenge is achieved by implementing the best action in terms of ethics and morals in order to solve the problem is threefold because it involves the following:
1) this is a form of dumping because the stocks sold to underdeveloped have already been banned from sale in domestic market for reasons well known to the manufacturer;
2) the children’s sleepwear garments are made from textiles treated with TRIS which is likely to cause cancer; and 3) the hazardous garments are specifically manufactured for children who cannot decide what is good or bad for them.
Thus, the appropriate ethical theories should be employed in order to make decisions emphasising on the aspects of an ethical dilemma imperative to them, which is critical in ensuring that a correct resolution or course of action that is most ethical is implemented according to the guidelines stipulated in the ethical theories used (Shaikh and Reich, 2011 p. 745).
In particular, the ethical theories likely to be used in determining the best action in terms of ethics and morals to ensure that the issue under consideration is addressed all levels such as individual level, organisational level, industry or sector level and institutional level include Kantianism ethics which is a form of deontological ethical theories, utilitarianism, Aristotle Virtue ethics and respect for basic human rights (Shah and Amjad, 2016 p. 57).
As a result, a consideration should be taken in order to decide the most appropriate approach of implementing the best action to solve the problem, and which is correct both ethically and morally. However, the best actions chosen to solve the issue should be implemented at different levels such as individual level, company level, industry or sector level and also the level of institutions.
At individual level and my role as a senior manager in the company, I would ensure that the action taken to solve the problem is the best one in terms of ethics and morals; which I would push for its quick implementation in order to achieve the highest level of benefits are delivered to customers while causing the least harm and to the fewest number of people as stipulated in the Kantianism ethics in deontological ethical theories, utilitarian ethical theory, Aristotle Virtue ethics and respect for basic human rights.
For instance, I will recommend a recall and destruction of all the garments made from the textiles treated with TRIS which is carcinogenic that had already been sold to underdeveloped countries to ensure that the hazardous garments the least possible number of children which would subsequently lead to a significant reduction of the number of children who could have developed cancers as a result of this scandalous and unethical business practice.
As a senior manager working at the company’s top management level, I would always adhere to what is ethical as stipulated in my obligations and duties in order to promote protection of innocent people by convincing decision-makers and the company board to avoid these unethical business practices, which are a threat to health and well-being of people living in countries that are less developed.
Therefore, as a senior manager with passion for ethical business practices, my personality involves making very consistent decisions based on the obligations and duties set for my position. I will make a reference of my previous workplace and make substantial examples with reliable referees for the decision makers to confirm; then plead with them to adopt my proposal by encouraging them to weigh between the money to be made from the sales of the hazardous stocks and the far reaching health implications likely to be caused by those garments to innocent children in underdeveloped countries.
As they ponder on which option makes sense to them, I will also make them aware of the fact that, those children never chose to be born in their respective countries and it is our responsibility not to harm due to our greediness for money by deliberately selling to them things we know are harmful.
At organisational level, I will develop more systemic changes in organisation culture in addition to proposing a collaboration framework between the company and other stakeholders. For instance, I will formulate and facilitate implementation of the company guidelines and standard operating procedures that would prohibit dumping of potentially hazardous products to the underdeveloped countries in future.
This will help to ensure that, a ban on a particular harmful or substandard product in developed countries is universally applied even in the underdeveloped countries which may have not enacted a policy to ban such products due to the potential human health risk they pose. In order to achieve compliance with this course of action, I will push for a framework for collecting overseas data and highlighting findings of the negative human health impacts directly associated to the TRIS treated garments, and subsequently provide an opportunity for the affected people to seek reparations or compensation in confirmed cases.
Furthermore, I will strive to establish a corporate social responsibility (CSR) for the company in collaboration with other stakeholders including non-governmental organisations and other companies in the sector in order begin development projects as well as creation of awareness and empowerment in affected communities.
At industry or sector level, I will strive to ensure that I provide my recommendations on the appropriate policy changes that would be applied in the general oversight of the usage of chemicals in the sector through proper examination of their classes rather than considering them individually, conducting sufficient health safety research, proper product labelling, assessment of alternative materials and methods, as well as ensuring formulation of stronger and stringent regulations. This is an imperative and ethical course of action because it will provide a harmonised platform to address the challenges facing the sector presently and in future.
At institutional level, which includes engagement with national and global non-governmental and governmental organisations I will liaise with stakeholders and donors to organise a conference among scientists, policy makers, as well as manufacturers with interests in flame retardant chemicals and apparel sectors in order to give them a chance to evaluate the challenges they face and learn from past adverse or difficult experiences so that they can be enabled with ability to take more swift actions to control or limit use of chemicals that may be potentially hazardous.
Conclusion
In conclusion, it can be clearly observed that through the arguments and discussions developed throughout the essay that ethical theories can play an important role to ensure that ethical business decisions are made followed by moral action, especially when a problem caused by a conflict between business interests and ethics arises. Implementation of the actions to solve the problem has been considered at individual level, organisational level, industry or sector level, as well as institutional level.
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The community college sector is approaching its 70th anniversary of enactment by President Harry Truman and its 50th anniversary of becoming a viable sector of higher education. In achieving this milestone, research recognized maturation of leadership in the community college sector, and resultant impending retirements of a high percentage of those in leadership positions.
As noted by Lipka (2013), the American Association of Community Colleges projects that of approximately 1,200 community colleges in the United States, about 500 presidents are projected to retire in the next 5 years, creating a potentially serious void in leadership within this sector of higher education. Lack of leadership succession planning can be noted when one reads of an institution recognized as the exception because of its commitment to succession planning (Bornstein, 2010).
The responsibilities of the college president and all administrators in higher education have changed drastically in the past decade (Barden, 2009). Government regulations, the ever-expanding world of technology, and the global landscape have drastically changed the dynamics of the community college sector and its leadership (Adcock-Shantz, 2011).
The recent economic downturn and the mandates it has imposed on higher education present a vivid example of that change. With these challenges, the conventional path to the college presidency, progression from faculty member to dean and chief academic officer, does not automatically qualify a prospective successor to lead the modern community college (Barden, 2009).
Planning for and selecting the most appropriate new leadership can engender institutional renewal, strengthen the organization and enhance institutional goals to achieve its mission and vision (Mitchell, 2014). A multi-case study on leadership succession planning in community colleges is the focus of this proposed study. Because there is a noted scarcity of empirical research on community college leadership succession planning, this study will be undertaken to further that body of knowledge.
Community college enrollments account for more than 45% of those students in the United States experiencing their first postsecondary education (American Association of Community Colleges, 2013). Thus, strong leadership and succession planning to achieve that leadership are critical to the community college mission of student success.
Background of the Problem
Community colleges, a relatively unknown entity 50 years ago, have become a viable sector of higher education. Today, more than 45% of students in the United States start their college experience in community colleges with the hope to have access to success in their academic endeavors (American Association of Community Colleges, 2013). Regulatory directives have made a considerable impacton budgetary constraints, accreditation standards, curricula, instructional delivery, and student diversity (Adcock-Shantz, 2011).
In addition, community colleges face many administrative changes, including an expected deluge of presidential retirements over the next five years (Lipka, 2013). Confronted by increased enrollments, diminished state funding, accountability for student success, and increased public oversight, community colleges must restructure their praxes for preparing and appointing leaders to keep up with demand and heightened expectations (DeSantis, 2013).
The research literature is extensive with respect to leadership succession planning in the business sector. According to Deloitte (2014), “For a business, working without a succession plan can invite disruption, uncertainty, and conflict, and endangers future competition.” (p. 1). Such planning, particularly for those holding positions of Chairman of the Board, Chief Executive Officer, and Chief Financial Officer, is considered critical for successful business entities.
A well-reputed example of corporate succession planning can be seen in the approach taken by General Electric Company (GE). According to (Onatolu, 2013), GE’s philosophy to ensure long-term survival of the company is to have in place an organizational structure with a unique form of leadership succession plan that will be cognizant of organizational culture of GE.
Additionally, American Management Association (2010) addresses the importance of succession planning, noting that global demographics and multinational corporations are challenged with potential retirement of one in five senior executives in the Fortune 500. There is however a dearth of empirical research addressing such leadership succession planning in higher education, and more specifically, within the community college sector (Hammond, 2013).
Two decades ago, little significant strategic planning was generated in community colleges (Lipka, 2013). In this decade, leadership sustainability and strategic planning are major factors in the functionality of community colleges. The dynamics of formal leadership succession planning for those in leadership positions, i.e., Presidents, Vice Presidents, and Deans, is integral to such strategic planning and the future of community colleges in meeting 21st century commitment to student success.
As noted by Barden (2010), as the populace progresses and the requirements of the workforce are transformed, institutions of higher education may need to rethink the relationship between succession planning and organizational sustainability. Planning and choosing the right leadership are critical to sustain strong organizational structure and culture. Employee attrition can be predicted.
However, for leadership succession planning to be successful as a means by which to retain or grow talent, it must be a top priority of every organization‘s strategic agenda (Robinson, 2009). Such is the context in which this research is undertaken.
Conceptual Framework and Review of the Literature/Themes
Conceptual framework. This study will be informed by a model for succession planning and House’s (1996) path-goal theory. For the purposes of this study, succession planning will be defined as a process used to identify, prepare, and develop employees internal to an organization to meet an organization’s future talent needs (Rothwell, 2005).
There are a variety of succession planning models, but the attributes common to most include a systematic process implemented at all levels of an organization, employee opportunity for upward and lateral movement within the organization, rewarding leaders for promoting their best, talented employees (Rothwell, 2005). There are several steps to an effective succession plan.
These include conducting an assessment of organization’s needs, identifying the knowledge, skills and attributes of future leaders, identifying and assessing the talents of current employees, developing growth plans for employees interested in upward movement, implementing those growth plans with clear feedback and accountability requirements, and finally, evaluating the process (Neef, 2009).
Additionally, the path-goal theory of motivation will serve as a foundation for the study (House, 1996). This theory is based on the idea an employees will exert effort and performance based on their perceptions of a leader’s behavior. The goal of the leader is to communicate clear expectations, describe the path to achieving a goal and then to remove the obstacles for workers as they attempt to perform in an effort to achieve that goal or complete a task. Leaders provide information, support, and resources for employees to do their work.
Review of the literature themes.
Succession planning defined
Components of succession planning
Leadership styles and succession planning
Succession planning in community colleges
Leadership development in higher education
Strategic planning defined
Components of strategic planning
Relationship of strategic planning and succession planning
Research on succession planning in community colleges
Methodologies used in research on succession planning in community colleges
Problem Statement
It is not known how leadership succession planning is developed and executed in the community college sector in New Jersey. With anticipated high volume of retirements of those in leadership positions within the next decade, it is evident that community colleges need to develop and execute succession planning to safeguard institutional stability and learning.
According to the American Association of Community Colleges (2013), “community colleges are facing a wave of impending retirements among their CEOs. More than two-fifths of community college CEOs surveyed in 2012 indicated that they plan to retire within five years. About 75% plan to retire within 10 years.” Succession planning is critical because of the void created by promotion from within the institution to fill vacancies created by retirement, resignation, or discharge.
Organizational culture and structure are also key factors in leadership succession planning. Depending on the political climate of the institution, some look for innovation and major change that may favor consideration of external candidates for leadership (Katz, 2012), while other institutional structures may be deemed strong enough to effect leadership change with internal transparency (Kleinsorge, 2010). An institution’s resolve to commit to succession plans might encourage valued staff to remain with their current community college employer (Basham et al., 2009).
Research Question(s) and Phenomenon
Phenomenon. This study will focus on the importance of succession plans in community colleges. Leadership succession planning has been integral in the business world. The research addresses the significance of such practices in the academic environment while assessing the characteristics of organizational structures and respective stances on the importance of succession planning within the community college sector. According to Anderson (2013), tradition, dormant leadership cultures, and magnitude of the institution can be limiting factors to the process.
Bornstein (2010) posits that most college boards hesitate to change the status quo and recognize potential leaders who can be groomed for specific positions for fear that faculty will not support a selection process in which they have little or any input. Organizational climate may dictate a change in organizational structure or need for new vision to lead a troubled institution (Anderson, 2013). Adoption of a succession plan can have a major impact on the culture and structure of the organization.
Having stakeholders who know the intricacies and vision of the institution and who are willing to carry out succession planning builds a strong position for institutional sustainability (Rothwell, 2010). According to Bornstein (2010), succession planning can bring value if the institution remains open to new ideas, focuses on long-term goals as provided for in strategic planning, and practices high leadership standards.
Research Questions
R1: How does leadership within New Jersey community colleges plan for the succession of executive leadership positions?
R2: How do New Jersey community college leadership development programs align to succession planning?
R3: What organizational structure attributes promote succession planning in New Jersey community colleges?
R4: How does the community college’s shared governance structure influence succession planning?
Significance of the Study
A review of succession planning literature suggests a gap in succession planning research respective of the community college sector of higher education (Barden, 2009; Bornstein, 2010). As noted by Mercer (2009), comprehensive interviews are recognized as methodology that assists researchers in identifying cultural norms and social behavior. The intent of this research is to examine succession planning in a community college setting and more specifically to address a study of leadership succession planning in the context of New Jersey community college administration.
A qualitative research design is proposed to study how leaders in New Jersey community colleges ensure that strategies are in place to avoid a leadership vacuum. According to Myatt (2012), such vacuums occur because existing leadership fails to lead. In focusing on the human factor, qualitative methodologies can be instrumental in supporting theory and providing the researcher with a viable study representative of the population to be explored (Yin, 2013). Community colleges are reasonable research sites since the propensity of anticipated retirements within the sector is anticipated to create a major concern for institutional stability and organizational structure.
Although community college leadership recognizes the need for a strategic approach to succession, existing research indicates that most community colleges do not have succession or leadership development plans in place (Barden, 2009; Bornstein, 2010). By examining the experiences of leaders in community college settings, the details of this case study will add to the existing body of qualitative research regarding the practice of selection and development of potential community college leaders.
A qualitative multi-case study of succession planning could facilitate deeper understanding of the underlying processes, mechanisms, and concepts associated with succession planning and its relationship to leadership in the community college sector (DeSantis, 2013).
The majority of succession planning has taken place in the business environment. According to Forbes (2013), lack of a formal succession or transition plan places a business at risk for its stability and shared governance. Succession planning helps to ensure select stakeholders are aligned with the business and that key personnel support the organization’s succession planning.
While succession planning appears to be delineated in corporate contexts, the methods, experiences, and outcomes of such leadership succession planning may share some mutual theoretical and practical elements across community college settings.
For the purposes of this study, succession planning will be defined as a process used to identify, prepare, and develop employees internal to an organization to meet an organization’s future talent needs (Rothwell, 2005). There are a variety of succession planning models, but the attributes common to most include a systematic process implemented at all levels of an organization, employee opportunity for upward and lateral movement within the organization, rewarding leaders for promoting their best, talented employees (Rothwell, 2005).
There are several steps to an effective succession plan. These include conducting an assessment of organization’s needs, identifying the knowledge, skills and attributes of future leaders, identifying and assessing the talents of current employees, developing growth plans for employees interested in upward movement, implementing those growth plans with clear feedback and accountability requirements, and finally, evaluating the process (Neef, 2009).
Additionally, the path-goal theory of motivation will serve as a foundation for the study (House, 1996). This theory is based on the idea an employees will exert effort and performance based on their perceptions of a leader’s behavior. The goal of the leader is to communicate clear expectations, describe the path to achieving a goal and then to remove the obstacles for workers as they attempt to perform in an effort to achieve that goal or complete a task. Leaders provide information, support, and resources for employees to do their work.
Human Resource Management Strategies that SMEs Business Leaders use to Increase Employee Productivity
Background of the Problem
Profitability in many organizations is below envisaged levels due to a lack of knowledge about effective usage of human capital among their HR professionals (Lawler &Mohrman, 2013). In Thailand, organizations that fail to implement the necessary HR strategies by their recommended HR professionals often record the lowest profits or no profits and collapse within 2 to 4 years of their existence (Becker &Huselid, 2014). Zaugg and Thom (2013) asserted that employee productivity and the subsequent profitability of many organizations could be increased through the adoption of appropriate human resource management (HRM) strategies and adjust to the fast- changing labour market.
The company productivity is directly linked to the employee’s productivity. If the employees are motivated and are given the freedom to express themselves in a way that corresponds to the operations of the company’s efforts will result to improved company performance.
Inefficiency as far as HR departments are concerned leads to insolvency or financial distress of companies. Organizations have efficiently played a role in improving the nature and the operations that are undertaken by the human resource (HR) professionals. The HR professionals’ role is to ensure that the employees are effective in increasing the company profitability and productivity (Wright et al., 2014).
The creations of sustainable HR strategies are essential for improved employee productivity and continued profitability in organizations in Thailand (Pfeffer&Veiga, 2014). For instance, firms in Thailand have adopted HR strategies such as motivation and ranking of position. This strategy helps the employees to work excellently so that they can get the reward and at least get promoted to a certain position. In return, the employees’ productivity and the company’s profitability increase since the two are directly linked to one another.
Problem Statement
More than 50% of small and medium-size enterprises (SMEs) business leader in Thailand fails to utilize strategic human resource management (HRM) practices to manage employee productivity (Platonova et al., 2013). HRM practice accounts for over 80% of employee productivity in SMEs (Platonova, Hernandez & Moorehouse, 2013).
The general business problem is that lack of HRM strategies to manage employee productivity could affect SMEs profitability (Chahal, Jyoti, & Rani, 2016). The specific business problem is that some SMEs business leaders in Bangkok, Thailand lack HRM strategies to increase employee productivity.
Purpose Statement
The purpose of this qualitative multiple case study is to explore human resource management (HRM) strategies that small and medium-sized (SMEs) business leaders use to increase employee productivity. The target population consists of SMEs in Bangkok, Thailand. I will interview five business leaders from SMEs who are successful in implementing HRM strategies to increase employee productivity in their perspective organization.
The implication for social change stems from its design to help businesses to implement strategies to increase employee productivity. Employee productivity could increase business profitability, which could foster growth, resulting in employment opportunities for local communities.
Research Question
What HRM strategies that SMEs business leaders use to increase employee productivity?
Interview Questions
1. What HRM strategies you use to increase employee productivity?
2. What are the challenges you face while implementing HRM strategies?
3. How do you overcome such challenges?
4. How do you know that you are successful in implementing HRM strategies?
5. What else could you share that is pertinent to your HRM strategies that we have not covered for increasing employee productivity?
Nature of the Study
There are three types of research method: a) qualitative, b) quantitative, and c) mixed method (O’Brien et al., 2014). In a qualitative method, a researcher seeks to understand the event from the perspective of those who are experiencing the phenomenon (Vaismoradi et al., 2013). Quantitative researchers use statistical method that gives numerical results to provide additional data sets for analysis (Blau et al., 2013; Gherardi&Perrotta, 2014; Wolgemuth, 2014).
In this study, I will be interviewing participants to understand the particular occurrence from their perspective. There will be no statistical analysis of numerical data. Therefore, I chose qualitative method over quantitative method. Mixed method, researchers use both qualitative and quantitative methods (Yin, 2014). The mixed methodology is not suitable for this study since the quantitative method is not viable.
There are many designs to choose from under qualitative method. In ethnographic design, a researcher collects ideas, histories, insight, and assumptions in cultural settings (Symons & Maggio, 2014). In narrative design, a researcher collects data in a storytelling format to find the research outcome (Benson, 2014). The purpose of this study is to explore HRM strategies to increase employee productivity.
Both ethnographic and narrative design is not suitable for my research because I am not collecting data in a story telling from the participant’s point of view or in cultural settings. The phenomenological design is suitable for the study that plans to explore the lived experiences of the participants (Wagstaff& Williams, 2014). In this study, I do not plan to capture the lived experience of participants in a general setting, and for this reason, the phenomenological design is not appropriate.
I will use a multiple case study design for this study because it offers in-depth information about a particular matter that would not be likely to get from other designs. The case study is exploratory in nature that integrates multiple data collection techniques and helps to develop common factors inherent in the collected data (Gherardi&Perrotta, 2014; Yin, 2014). The multiple case studies will allow me to interview select SMEs business leaders from multiple companies to understand their perspective on the phenomenon under study.
Conceptual Framework
The Ulrich model is the conceptual framework for this study. Ulrich and Yeung (1989) developed the Ulrich Model in 1989. The Ulrich Model views the human resource process in terms of talent acquisition, compensation and benefits, training and development, leadership, organizational design, and HR development (Brockbank et al., 2013). The model connects HR strategy, goals, objectives, and processes into an operating model (Brockbank et al., 2013).
The central objective of this model is to explain the relationship between the competency of HR professionals and the performance of the organization (Huselid et al., 2014). This framework is applicable to the study, as it will help me to understand how SMEs business leaders integrate HR strategies, HR goals and objectives, and HR process in their overall business strategy to increase employee productivity and business profitability.
Definition of Terms
The following defined terms are specific to the study topic. These definitions help the reader to understand the study as a whole.
Cognitive Orientation: Cognitive orientation describes the different ways an individual may go about the thinking process (Wolgemuth, 2014).
Competency Model: This is a set of expectations within organizations that are used to serve as benchmarks for exemplary performance and increased productivity (Wolgemuth, 2014).
Competency: Competency describes the ability someone’s to do something effectively or successfully (Huselid, Jackson & Schuler, 2014).
Effectiveness: It’s the potential of an organization to make use of its asset to generate cash inflow that exceeds its cash outflow (Yeung, Woolcock& Sullivan, 2013).
Human Capital: Human capital is the skills, knowledge, and experience possessed by an individual and includes education, experience, knowledge, and skills (Wright, Dunford& Snell 2014).
Management: It is the capability of a firm’s management to formulate and attain challenging objectives, take change and decisive practices, outdo the competitors and motivate other to execute efficiently (Weatherly, 2013).
Managerial Competencies: These are the motives, skills, as well as attitudes necessary for a job, including characteristics such as problem-solving, communication skills, the ability to work as a team, and customer focus (Weatherly, 2013).
Practices: Practices describes the ability to perform or carryout a particular method, custom, or activity regularly or habitually (Wright, McMahan & McWilliams, 2014).
Strategy: Strategy describes a policy or a plan of action designed to attain a major or overall aim of an organization (Yeung, Woolcock& Sullivan, 2013).
Sustainability: Sustainability is logical development based on the balance of economic, social, and environmental outcomes to provide benefits to multiple stakeholders (Huselid, Jackson & Schuler, 2014).
Assumptions, Limitations, and Delimitations
Assumptions
An assumption is acknowledged as accurate or confident to happen without having any proof, (Baranyi, Csapo, & Sallai, 2015). Making sure that the study is complete, there are several underlying assumptions. The first assumption is that during the interview process the researcher should obtain continuous feedback from the research participants. Secondly, during this study, women HR professionals are termed as considerate since they are looking for ways to increase the profitability of their organizations.
The third assumption is that the research participants would provide perspectives or ideas that would assist other HR professionals a not only focus on their industry and business alone but also think global and act the same time act local. This assumption made on the premise that the research participants will articulate how to use HR management strategies to increase organizations profitability.
Limitations
A limitation is the limiting circumstances or rule and restrictions, (Souba, & Souba, 2016). There is a limit of the study by the selected location of study, and there is a possibility of research participants unwilling to share or holding back information. For the mitigation of this limitation particularly the lack of willingness to open up and memory, the interview questions focused on specific issues followed by probing questions to seek for clarifications to ensure that short answers but on point according to the research questions obtained. The five research participants are the other limitation of the study only focused on two medium sized businesses in Bangkok, Thailand.
Delimitations
Delimitation is the choices which the researcher makes for the research which is under the management of the researcher, (ZHANG, & ZHANG, 2013). The researcher must rationalize these delimitations in a research proposal. To mitigate the limitations of the study several delimitations established concerns the research participants, data, as well as the geographical area of the survey.
For instance, the study included participants from two HR organizations that seemed to help organizations to manage their employee’s productivity. The data collection included interviews with the SMES businesses, and the reviews documented. The geographical area provided a reasonable representation of areas in Bangkok, Thailand.
Significance of the Study
Contribution to business practice
The creation of sustainable human resource management strategies is necessary for the continued profitability of SMEs in Bangkok (Pfeffer&Veiga, 2014). The business profitability is dependent on employee productivity (Ahmad et al., 2015; Becker &Huselid, 2014). The human resource management strategies highlight HR activities within the organizations, both large and small to remain sustainable (Becker &Huselid, 2014; Yeung et al., 2013).
Organizations that integrate HRM strategies are efficient in utilizing its human capital and ultimately displaying high profits and growth (Huselid et al., 2014; Martina et al., 2013; Platonova et al., 2013). In essence, the findings of this study could contribute to effective business practice in three ways.
First, the study results will provide HR operational, procedural, and process strategies that successful SMEs use to increase employees productivities. Second, the study may help businesses to identify HRM software and other business intelligence tools that successful SMEs business leaders use to remain profitable. Lastly, the study findings may act as a precursor for future research in strategy formulation to increase business productivity.
Implication of social change
The study results will lead to HRM strategies that are effective in the workplace to increase employee productivity which could lead to business profitability. Effective HRM strategies would make employees satisfied with their job and hence, lower employee turnover for the company resulting in a reduced unemployment rate in the society (Gherardi&Perrotta, 2014; Wolgemuth, 2014). (Wright et al., 2014). Moreover, employee productivity could increase business profitability. Profitability fosters business growth, which could result in employment opportunities for local communities.
A Review of the Professional and Academic Literature
The purpose of the qualitative is to explore human resource management (HRM) strategies that small and medium-sized (SMEs) business leaders use to increase employee productivity. To come up with comprehensive findings and results of the dissertations, various resources were used. They were arranged in the Zotero software. Seventy articles were researched as far as literature review is concerned, ninety seven percent of the articles were peer reviewed and ninety three percent are in accordance with limited time period required by the Walden University Chief Academic Officer (CAO) agreement.
I limited myself to case studies and peer review to acquire the necessary information that I needed to answer to the research questions formulated and more so get to review the into detail about the human resource management strategies that SMEs business leaders use to increase productivity.
The central research question of the study was as follows: What HRM strategies that SMEs business leaders use to increase employee productivity? In this section, the topic to discuss covers how organizations in Bangkok, Thailand uses or link the human resource management with employee’s productivity that yields to company’s productivity. The subsections include (a) human resource management, (b) human resource strategies, (c) employee productivity, and (d) company productivity.
Human resource management
The primary role of human resource management is to hire and fire employees. However, this changes as per the organizational environment and the nature of the firms operations. In an organization, the human resources play with the company’s operations and they tend to waste time even if they are working. To ensure productivity, the human resource management department imposes human resource strategies such as motivation of workers to ensure productivity.
Doing so, they must come up with various HR mechanisms and strategies that are flexible and easily adoptable by the employees, ((Yeung, Woolcock& Sullivan, 2013).It makes it easier for the human resource to comply with the strategies and yield efficient productivity n terms of company’s productivity. In return to this, the organization will increase on its core competencies, gain a competitive position in the market that is resulted by a bigger market share in the market arena as compared to the competitors. This makes the company profitable with a strong financial position.
Human resource strategies
The imposed plans of the human resource management tend to motivate the staffs to work a little bit harder to ensure efficiency and efficiency of the company’s operations. The strategies imposed should be flexible and adoptable to change depending with the nature of the business environment both internal and external. Also, the strategies must comply with the demand and supply of what is been produced by the employees and what is needed by the company from the human resources.
If the strategies imposed by the HR management department are not in accordance with the taste and preference of the employees, it is difficult to force them to comply. On the other hand, if they are in accordance with their demand, they will comply and changes will be identified in their productivity together with the company productivity, (Huselid, Jackson & Schuler, 2014). Some of the strategies that are imposed are motivations. Through motivations, the employees may compete fairly for the betterment of attaining the award set for the winner or the group of employees. The results of this are to increase the employee’s productivity.
Employee productivity
If the strategies imposed by the HR management department are not in accordance with the taste and preference of the employees, it is difficult to force them to comply. On the other hand, if they are in accordance with their demand, they will comply and changes will be identified in their productivity together with the company productivity, (Huselid, Jackson & Schuler, 2014). It is with no doubt that employee’s productivity is directly related to the human resource strategies.
When a company fails to impose good human resource strategies, it means that the probability that the employee’s productivity will be high is less than 0.5 and vice versa. When employees are well catered for, it guaranteed that they would reciprocate by working in an effective and efficient manner for the development of the firm’s operations. When the employees work excellently, the company profitability will increase since the organization market share and the competitive position will gradually develop (Jakob et al., 2013).
Company productivity
When the HR mechanisms and strategies are flexible and easily adoptable by the employees, ((Yeung, Woolcock& Sullivan, 2013) It makes it easier for the human resource to comply with the strategies and yield efficient productivity n terms of company’s productivity. In return to this, the organization will increase on its core competencies, gain a competitive position in the market that is resulted by a bigger market share in the market arena as compared to the competitors. This makes the company profitable with a strong financial position.
Company productivity is a result of increased or improved employee’s productivity. When the staffs work increases, they develop the organization’s competences at a minimum hurdle rate. With this, it means that the company operation cost is less hence huge profits. Furthermore, improved employee’s productivity creates opportunities for the firm to operate globally and this increases the firm’s competitive position and financial position.
Transition and Summary
The central research of this study is What HRM strategies that SMEs business leaders use to increase employee productivity? The section covered some key elements in the studyand thoseare the Problem Statement, Purpose Statement, Nature of the Study, Research Question, Conceptual Framework, Significance of the Study, and Literature Review sections.
Human capital shows a significant proportion of expenses in organizations that subsequently reduce their profits (Platonova et al., 2013). Research shows a lack of profitability strategies that are unique to the utilization of human capital (Platonova et al., 2013). Organizations perform better when their human capital is aligned to their needs (Becker &Huselid, 2014).
The review of the literature on the practices of HR professionals and organizations’ profitability has shown that in order for effective management of the human resources there is need for organizations to ensure implementation. It entails the implementation of innovative human resources management practices that are angered in the efficiency, competencies, and willingness of the HR professionals (Ahmad, Kausar & Azhar, 2015).
The organizations which are in forefront at implementing such practices with commitment and dedication, attains competitive advantage over their competitors. it is because such practices influence other variables such as financial performance, job satisfaction, employee turnover, employee commitment, among others positively.
Therefore, lead to overall organizations’ performance, productivity subsequently resulting in increased profitability (Platonova, Hernandez & Moorehouse, 2013). The findings from the study could provide HR professionals with a better understanding of the strategies that are effective to increase the employee productivity.
The knowledge could facilitate HR professionals to enhance the profitability potential in their organizations. The literature review provided an understanding of the processes, social constructs, and motivations that are unique to human resource management.
In Section 2, there is a description of a qualitative method research approach, including the populations and sampling, data collection, data analysis, and reliability and validity. The information in Section 3 presents the doctoral study findings, including applications to professional practice, implications for social change, and recommendations for future research.
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Management of project teams is one aspect of project management that should be handled with care. This should be done through coming up with proper schedule of events. The roles of each team player should be well defined. The processes to use for the purpose of achieving various objectives should be set out well. This essay describes management of project teams through use of various tools. This essay details the the role of the critical path method regarding task assignments and the negotiation of resource allocation within the project team. This essay is based on Electronic Health register project for hospitals.
Project schedule on the project tasks to be performed and the contribution of individual team members behavior in allocation of tasks
Project schenduling involves the time frame set for the project to be operational. Identification of dependencies in EHR implementation plays a major part in project scheduling of activities. This scheduling may touch some hospitals for pilot and later all hospitals inclusively ; and the number of participants are determined directly proportional to the number of hospitals there in. In this project , all objectives are achieved within a certain set period under a given resource as depicted by the project schedule below.
Project Management Improvement Project – Phase 1
Effort Estimate in Days
Planned Start Date
Planned End Date
Resource
1
EHR implimentation
1.1
Training on implimentation of EHR
Training on implimentation of EHR
10.00
06/01/16
06/08/16
IT officers, HR, officers, community members and clinical officers
2
Plan Project
2.1
planning, staffing, budgeting and project timing
10.00
07/01/16
07/29/16
Funds Sourcing (Accountants and project co-ordinators)
2.2
EHR Control tools
7.00
07/15/16
07/29/16
Initiating budget cellings (budget committee)
2.3
EHR Expected Benefits
5.00
07/22/16
07/29/16
Time Control tools,(reduced queing)
3
EHR WEB FRAMEWORK AND FORMATS
3.1
Design Framework
3.1.1
Designing EHR web framework delivery tools & Content formats
8.00
08/01/16
08/15/16
EHR technical committee (Software engineers)
3.2
EHR TOOL PROTOTYPE
3.2.1
Build web tool prototype and review content for quality
97.00
09/01/16
10/31/16
Clinical officers , Software engineers and Audit team
3.3
EHR USABILITY &FEEDBACK ADJUSTMENT
3.3.1
Test usability of web tool
13.00
09/19/16
11/30/16
EHR audit team and Clinical officers
3.4
ANNOUNCE AVAILABILITY OF MODERN DATA REGISTRY
3.4.1
Replace traditonal data entry with modern one.
6.00
12/01/16
12/30/16
EHR technical team and the community representatives.
4
PROJECT EXIT AND POST PROJECT PREVIEW
4.1
Conduct Post-Project Review
6.00
01/03/17
01/10/17
Audit team and technical experts
How the behavior of individual team members can determine the tasks they receive
Management of project depends on availability of resources which are always scarce. This calls for expertise and and structures so as to attain projected goals of a project. Individual characters and task groups play a major role in the project planning process, forming and execution. The behavior that each of the project team members exhibit determines the roles that are allocated.
The allocation of duties by management is relatively subjective due to the desired success factors. For this project, the behavior of the project team members has been measured through use of knowledge and understanding of the project. This has let to responsibilities being issued on the basis of : Knowledge and understanding about the operation and implementation of the modern Electronic Health Register .
Those who have holistic understanding of the project cycle are given more responsibilities than those who do not. Ability to give progress reports is another behavioral factor to consider. Team members who are used to forwarding their reports in time have end up being assets to project managers. This is because project management requires timely updates.
Additionally, individuals who are team players get assigned roles much easier than those who are not. Team spirit when upheld, builds innovative capacity and cohesiveness which is the focal point for an organizations success. Group members demonstrating high levels of maturity and leadership are selected to monitor and control organizational politics which sometimes become an impediment to the progress of an organization.
Geographical location also plays a major part in roles allocation, as those who come from a certain geographical area especially where the EHR will be implemented may be assigned more roles or certain roles as its difficult for them to receive rejection from their community. It is important to carefully assign duties to avoid frustration of organizations activites and minimize conflicts that may impair progress of a project.
Key processes to follow when managing the project schedule and oversight each project team member may require based on their behavior.
Project management is usually based on processes. It involves discharge of managerial procedures, materials and essential techniques in unraveling the project schedule. EHR implimentation is of prime importance as it saves patients money, time and allows customers to enjoy optimal functionality of the health sector.
These processes endeavour to deliver quality patient care, uphold efficiency and effectiveness in hospitals, promote timely attendance to customers and strive to exceed customers satisfaction in order mantain loyalty from all its clients. These processes are grouped phases depending on the service anticipated or sought.They include:
1. Recourse Planning – This is the overall technical and material required to run the project as per the plan without budget strains. They include the human capital, the equipment needed and the material levels necessary. This process is fundamental in estimating the budget necessary for the implementation of the electronic health register. This stage consists of professionals who hardly require longer supervision. Support staff in this phase may be guided by the professionals , however little external oversight is necessary to eliminate defiance and promote peer interaction.
2. Project Cost Estimation – This revolves around projected financial estimates that the whole project will incur. It is necessary to develop this projection to enable the project manager to determine whether the available funds are sufficient to implement the project and if not, to open up on better ways to source for finances. Budget committees constitute the financial projection team. Thorough supervision should be given at this phase to avoid over or under estimation of figures.
3. Project Activity Budgeting – This involves allocating a vote to every program. It determines the cost of each individual activity that enables the organization arrive to its cost estimates. It is important to do activity costing to seal loop holes for inefficiencies and promote overall effectiveness of the project activities. Each group here gives its individual budget on the basis of tasks allocated. Supervision is critical here to control exaggeration of figures.
4. Cost Control – This process is about controlling changes to project budget. This also involves controlling projects expenses to ensure that the intended project remain within budget limits. It basically targets to eliminate wastes and enhance project efficiency through the stakeholders and the project manager.
Precedence diagram method in managing team tasks and team conflicts
Precedence diagram is a management tool that involves graphical presentation of sequential activities to explain inter–dependencies and order . It is also called activity on node. This tool is of necessity in drawing critical path network diagrams.It makes use of arrows and nodes. The arrows pointing the end activity. Precedence diagrams are critical in fostering information reliance to the stakeholders.
These diagrams normally use four types of dependencies. One of the dependencies is finish to start dependencies. This explains that the second activity can not be performed without actualizing the first activity. The other dependency is finish to finish events which explains that the first activity and the second activity should start simultaneously. For example crafting of managerial tools is dependent on the tools used in the implementation of EHR and when one activity will be over, the other one will definitely come to an end.
Start to start events is the other dependence. It states that the first activity should start at the same time with the second activity. For example replacement of old health register will be over when the electronic health register will come in to operation. Proper documentation of activities or tasks by the use of the critical path plays a major part in making teams to understand what activities are important than others.
The critical path also plays a major part in explaining the reasons for allocating resources in other tasks earlier than others. It also enables all task teams to understand why they receive a certain compensation interms of bonuses while others do not.
The role of the critical path method regarding task assignment and the negotiation of resources allocation within project teams
Critical path method is one of the oldest mathematical programming models that was operationalised by DuPoint in 1950 in the missile defense construction projects. This was in a view to schedule the activities done on the basis of their importance in order to determine the longest time consumed so as determine the shortest time to be taken for a project completion.
The critical and the non-critical events determine how the essential activities will consume resources and the time they will take to be completed. It is represented by a critical path diagram. In order to make proper use of the critical path method, work packages are grouped and assigned to the project deliverables to aid in project planning and execution. These packages are assigned completion times which at times depict the cost accrued from the project actualization.
When all these packages are linked, they form a schedule. The below example explains WBS of Hospital activities that are crafted and networked to be represented in a network diagram. In EHS implimentation, activities are inter inter linked from training up to the project exit. Each task is carefully managed since the work outflow is sequential through the critical path.
Negotiation of resources allocation within project team
Projects are mostly construed by resources against the wide and diversified requirements and ever shifting priorities. Negotiation plays a critical role in organization’s performance and specifically on EHR resource allocation. The critical path method helps the EHR project manager in determining the resource limits to allocate to the project teams. This may be either on the basis of the priority or logic. Projects that start earlier than others are allocated resources first in assistance of the tools and expertise needed.
Critical path method is necessary in ensuring a win – win situation for the project teams and the project management. Resource negotiation plays a key role in determining eligible overtime, in evaluation of performance to determine on the bonuses to be given and determining on whether to extend the team members contract or not. This also helps in analyzing whether an event is critical or non-critical in a bid to determine resource allocation.
The Influence of Leadership Style on Employee Satisfaction and Productivity
1.0 Introduction
In this research study, the researcher seeks to find out how various leadership style influence the productivity and satisfaction of workers in the banking sector in the United States. My background/inspiration/motivation for the proposed research comes from the fact that I have previously worked in an organization in which the top leaders and managers did not recognize the effect of various leadership styles on employees’ satisfaction and productivity.
The employees were never inspired. They were also never motivated to carry out their job tasks very well. Therefore, the level of job performance of employees was frequently low. They were often dissatisfied and had low productivity. The research project is potentially important as it will help leaders and managers in organizations to adopt suitable styles of leadership that could help improve the satisfaction as well as productivity of their employees.
Most companies and organizations comprise employees and employers, or in other words, staff members and management or followers and leaders. Many leaders are goal-oriented (Ispas, 2012). To attain the desired goals, there has to be an interaction between followers and leaders or staff members and management, or employees and employers. The style of leadership that typifies the interaction between managers/leaders and their staffs/followers is most significant in terms of the productivity, efficiency and satisfaction of employees (Emery & Barker, 2012).
My work-based context which has led me to examine this topic is that while working in the company, I realized that as the workforce of the business organization, employees perform various duties needed to attain the company’s objectives and goals. I also realized that the satisfaction of employees is impacted by their view of their jobs and the company for which they are working for.
How employees perceive leadership behaviour is a vital predictor of employee job commitment and satisfaction. It is worth mentioning that how employees perceive the leadership behaviour of their leaders/managers is also related to their job attitudes and productivity (Mustafa & Lines, 2013). Styles of leadership could either discourage or motivate workers, which could consequently result in employees’ decrease or increase in their performance level.
Some of the sources of employees’ job dissatisfaction include absence of promotion prospects, insufficient compensation, and conflicting job demands from the leadership. For purposes of efficiency, an effective style of leadership is one which has a positive effect on the satisfaction of employees and leads to better job performance, productivity and effectiveness (Wong & Laschinger, 2013).
The functional areas of business that I am drawing upon include employee productivity and job satisfaction. Employee satisfaction is understood as how employees in an organization feel about their jobs and the various facets of their jobs (Keskes, 2014). The seminal literature that I would use to illustrate the academic underpinning of the research includes various peer-reviewed. Over twelve journal articles would be examined in the literature review section of this research paper.
When the company’s leaders and managers adopt suitable leadership styles such as transformational leadership, the leaders would be able to inspire and motivate employees who will be able to feel satisfied with their jobs. In turn, these employees would improve their job performance and work productivity which is good for the company’s financial bottom line (Li-Fen & Chun-Chieh, 2013).
Based on the findings of the study, implications for organizations would be described which would include a discussion on the most important leadership styles that comprise leadership behaviours that could really improve employee job satisfaction and productivity. Organizations with poor and ineffective leadership styles would have to alter their leadership approaches if they are to improve employee satisfaction and productivity.
The research would be really innovative since although existing published research would be utilized, they would be utilized within a dissimilar setting. At the moment, there is gap in the existing literature. No earlier research studies have looked into the influence of leadership style on the productivity and satisfaction of employees in various organizations in the United States.
Most previous studies that have explored this topic have focused on the impact of leadership styles on employees’ work performance in the context of organizations in Asia and not in America. As such, the study would fill this gap in literature by examining the topic in the context of companies in America.
2.0 Aims and objectives
Aim: the overall aim of this study is to delve how different styles of leadership influence the productivity and satisfaction of employees.
Objectives:
How does transformational leadership style influence employee job satisfaction and productivity?
How does transactional leadership style influence employee job satisfaction and productivity?
How does laissez-faire leadership style influence employee job satisfaction and productivity?
Which of these three leadership styles best influences employee job satisfaction and productivity?
The formulated research aim and objectives are appropriate for this study since they would help to determine how leadership styles actually affect employee productivity and satisfaction. They would also help to determine the best leadership style that company leaders and managers can adopt in order to effectively improve the job satisfaction and productivity of workers.
3.0 Identification and initial review of key literature
According to Deshpande and Hill (2015), leadership is understood as the process of influence on the subordinates, where the subordinates are inspired to attain the specified target. Another scholar, Yi-Feng (2014) noted that leadership is the process in which a person, a leader in this case, influences a grouping of people to attain a common objective.
McClean, Burris and Detert (2013) stated that leadership means using a leading strategy to offer inspiring motives and to improve the workers’ potential for development and growth. All in all, leadership refers to the process of influence between subordinates and leaders in which the leader influences the behaviour of the subordinate to attain the goals and objectives of the organization (Abualrub & Alghamdi, 2012).
The success of an organization in attaining its specified objectives and goals is contingent on the company’s top leaders and the styles of leadership they use. When suitable styles of leadership are adopted, the leader can affect employees’ commitment, satisfaction, and productivity on the job (Jamaludin et al., 2011). A leader plays a vital role in the accomplishment of a company’s objectives through creating a climate which influences the behaviour, motivation and attitudes of employees.
Employee productivity is crucial to a company’s bottom line. To perform better and improve their level of productivity, workers need to have the proper working conditions. Ahmad et al. (2013) stated that proper working conditions encourage staff members to put up the right behaviour or attitudes to their work. Employee job and organizational commitment relates positively to job satisfaction, organizational career support and supervisory support. Workers who find that their companies positively evaluate their job performance have a high likelihood of exhibiting a high job satisfaction level.
Employee satisfaction, as Wong and Laschinger (2013) pointed out, is how staff members feel about their work duties and the various facets of their work tasks. Employee satisfaction is a vital concern in all business organizations given that it is focused on utilitarian as well as humanitarian perspectives. Employees, as per the humanitarian perspective, should be treated respectfully and fairly.
As per the utilitarian view, employee job satisfaction could result in employee behaviours which affect organizational performance and functioning (Quintana, Park & Cabrera, 2015). Factors such as working conditions, company policy and administration, salary, supervision, personal life and security, relationship with other workers, the work itself, responsibility attainment, and recognition affect employee satisfaction with the job.
3.1 Leadership styles
This research study is focused on three styles of leadership: transformational, transactional, and laissez-faire. Transformational leadership: this style of leadership motivates the followers through appealing to higher moral values and ideals which could inspire the staff members to carry out their work tasks exceeding expectations and transform both organizations and individuals (Keskes, 2014). A transformational leader emphasizes the follower’s personal development and intrinsic motivation.
This leader seeks to align the needs and aspirations of the follower with the company’s desired outcomes. By this means, this leader is able to foster commitment of the followers to the company and inspire the followers to go beyond their anticipated job performance and productivity (Jackson, Alberti & Snipes, 2014). As regards the dynamic business environment and complex organizations of today, a transformational leader is mainly considered a perfect change agent with the ability to lead his/her followers during periods of high risk-taking and uncertainties.
The transformational leader’s main objective is basically to work to transform or change the needs of the follower and redirect their thinking. This leader inspires and challenges his/her followers with a sense of excitement and purpose (Ispas, 2012). The leader with this style of leadership exhibits the following characteristics: intellectual stimulation, individualized consideration, and charismatic leadership.
Transactional leadership: this leadership style is founded on bureaucratic authority as well as legitimacy in the organization. Transactional style of leadership gives emphasis to task-oriented goals, assignments and work standards. It is focused on employee compliance and task completion and is dependent on organizational punishments and rewards to influence the performance of employees (Emery & Barker, 2012).
A transactional leader gains legitimacy by using promises, praises and rewards which would satisfy the immediate needs of the followers. This leader engages his/her followers through giving rewards in exchange for the attainment of the set objectives and goals. All in all, a transactional leader focuses her leadership on motivating her followers using a system of punishments and rewards.
Ispas (2012) noted that a transactional leader focuses on improving the effectiveness of the established procedures and routines. Such a leader is more concerned with sticking to the current rules than with making alterations to the company. Transactional leaders establish and standardize practices that would help the company attain the following: increasing productivity, efficiency of operations, goal-setting, and maturity (Techoresh et al., 2014).
Laissez-faire leadership: this is typified by a general or total failure to take managing responsibilities. With this style, the leader fully gives the employees all the power and rights to make decisions. It allows the followers to have total freedom in making decisions with regard to performing their job (Jamaludin et al., 2011).
Laissez-faire leadership style gives the followers independence but the leader provides support and guidance whenever requested. In essence, the leader who adopts this style of leadership gives his/her follows all the necessary materials to carry out their objectives and goals. Even so, the leader does not take part directly in making decisions unless the followers ask for his help (Quintana, Park & Cabrera, 2015).
In most organizations, the effectiveness of an organization is very much contingent on the style of leadership used by its leaders. A leader and his/her style of leadership plays a vital role in the success of a company. The adopted style of leadership has a major effect on employee satisfaction on the job as well as job performance. Employees who have higher job satisfaction tend to have greater job commitment and job productivity (Belnio, 2011). All things considered, organizations require strong leadership styles which stimulate the productivity and performance of employees.
3.2 Conceptual framework
Deshpande and Hill (2015) pointed out that the style of leadership adopted by leaders in an organization is of great importance in influencing the job satisfaction of workers. Quite a few researchers have learned that dissimilar styles of leadership would engender dissimilar working environment and affect employees’ work satisfaction directly (Keskes, 2014; Jackson, Alberti & Snipes, 2014). Mustafa and Lines (2013) observed that the transformational leadership style may intrinsically promote more work satisfaction largely because of its capacity to impart a sense of intellectual stimulation and mission.
A transformational leader tends to motivate and encourage her followers to assume more autonomy and responsibility, which in turn enhances the workers’ sense of achievement as well as job satisfaction (Emery & Barker, 2012). Transformational and transactional leadership styles have been extensively associated with organizational and individual consequences. Both these styles of leadership have a positive correlation with employees’ perception of work, organizational satisfaction, and leader.
Abualrub and Alghamdi (2012) stated that workers are by and large most satisfied whenever they view their supervisors as individuals who exhibit task-oriented and relational behaviours. In his study, Belonio (2011) found that different styles of leadership including laissez-faire, transactional and transformational styles affect different facets of employee satisfaction with their jobs. This researcher also noted that a mix of the different styles of leadership would result in more job satisfaction and improve productivity and performance of employees (Belonio, 2011).
In their study, Ahmad et al (2013) found strong correlations between employee satisfaction and transformational style of leadership compared to transactional style of leadership. These researchers also found a dissimilar facet between transactional and transformational styles of leadership on employee work satisfaction. According to Ahmad et al (2013), transformational leadership style had higher ratio and beta which demonstrated greater influence on employee work satisfaction than transactional style.
In another study, Li-Fen and Chun-Chieh (2013) discovered that both transactional and transformational styles of leadership had an effect on employees’ work performance, although the transformational style had higher leadership outcome than transactional style. The laissez-fair style has been shown to have a noteworthy effect on total employee job satisfaction (Belonio, 2011).
Transactional leaders can increase the productivity of their followers particularly when productivity of the workers is measured quantitatively and punishments or rewards are fairly given. Transformational leadership results in the process of transforming the workers’ value, emotion, as well as objectives for the specific performance and productivity basing upon their talent (McClean, Burris & Detert, 2013).
3.3 Research question and hypotheses
For the proposed study, the research question is as follows:
How do various styles of leadership influence employee productivity and satisfaction?
The following hypotheses are formulated basing on the conceptual framework.
Hypothesis 1
Alternative Hypothesis H1: there is a significant influence of transformational leadership on employee satisfaction and productivity.
Null Hypothesis H0: there is an insignificant influence of transformational leadership on employee satisfaction and productivity.
Hypothesis 2
Alternative Hypothesis H2: there is a significant influence of transactional leadership on employee satisfaction and productivity.
Null Hypothesis H0: there is an insignificant influence of transactional leadership on employee satisfaction and productivity.
Hypothesis 3
Alternative Hypothesis H3: there is a significant influence of laissez-faire leadership on employee satisfaction and productivity.
Null Hypothesis H0: there is an insignificant influence of laissez-faire leadership on employee satisfaction and productivity.
Quantitative research studies in general have research questions and hypotheses (Park & Park, 2016 .I will seek to test and prove that the alternate hypotheses are true.
4.0 Research approach
4.1 Research methodology: quantitative research
This is a quantitative research study. A quantitative research study is generally concerned with discovering facts regarding social phenomenon and assumes a measurable and fixed reality (Park & Park, 2016). This type of research methodology is used to explain phenomena through gathering statistical data which are then analyzed through the use of numerically based techniques.
The main sources of quantitative data include secondary data for instance company reports; observations that might either entail coding observational data to translate that data into numbers, or counting the frequency with which a certain phenomenon crops up, for instance the frequency with which a certain word is utilized in interviews; or surveys, which is reliant on several questions asked to the respondents in the same manner to many participants (Venkatesh, Brown & Bala, 2013).
The independent variables are leadership styles whereas the dependent variables include employee job satisfaction and productivity. The job satisfaction and productivity of employees are contingent on the leadership styles. A deductive approach is utilized considering that this is a quantitative study. A deductive approach, as Venkatesh, Brown and Bala (2013) pointed out, focuses on developing a hypothesis basing upon an existing theory; a deductive design tests a theory.
A research strategy is then designed to test the formulated hypotheses. Deductive implies that the researcher reasons from the particular to the general. If a certain case example or theory appears to imply a causal link or relationship, it may be true in most instances. A deductive approach will test to find out whether or not this link or relationship derived from circumstances that are more general (Barnham, 2015).
All in all, a deductive design could be explained through hypotheses, which could be derived from the theory propositions. Put simply, the deductive design focuses on deducting conclusions from propositions or premises.
There are several strengths of the quantitative research method. Some of these include the fact that a quantitative study provides data which is descriptive in nature, and quantitative research is considered as being more objective and reliable. In addition, quantitative research can effectively reduce and restructure a complex problem to a few variables, it can be used in testing hypotheses and theories, and uses statistics in generalizing a study finding (Barnham, 2015).
Furthermore, quantitative research examines associations between various variables and establishes cause and effect in very controlled circumstances. Quantitative research is also helpful in studying many people, the findings of the research are relatively independent of the investigator for instance the statistical significance, and collecting data through the use of quantitative questionnaires is relatively speedy.
It also provides accurate, numerical, quantitative data (Venkatesh, Brown & Bala, 2013). Analysis of data is moderately less time consuming since statistical software could be employed. However, quantitative data is generally less comprehensive compared to qualitative data and could overlook a desired response from the study subject.
4.2 Research design: quantitative case study
A case study is understood as a detailed study of a certain situation instead of a comprehensive survey (Venkatesh, Brown & Bala, 2013). A case study design would be used in which the researcher will focus on three cases of three different companies based in California. Quantitative questionnaires would be utilized in data collection. The data collected would be in numerical form that could be easily put into categories, measured in units of measurement, or put in rank order.
The questionnaire surveys would have closed-ended questions and rating scales that would produce quantitative data. The data would be utilized in constructing tables and graphs or raw data (Venkatesh, Brown & Bala, 2013). In this study, the subjects include employees in three different organizations that are based in California. As such, the data would be collected in 3 companies.
The questionnaire surveys would be sent to the participants through email to fill. After completing the questionnaires, the respondents would send back the completed questionnaires for data analysis. For this study, the sample comprises employees from three companies in the banking sector. The companies are in San Diego, California where the study will be carried out. A total of 60 participants would be selected for the study.
The type of sampling method that will be utilized by the researcher in the proposed study is purposive sampling. In essence, this is the premeditated selection of the informants on account of certain characteristics or traits that they possess (Guarte & Barrios, 2011). Using purposive sampling method, staff members in 3 different companies in the financial/banking sector would be picked to take part in the research as study subjects. The 3 companies are all located within one state; California, although they have branches in other states also.
These participants would be picked by the researcher since they are working in an organization in which specific leadership styles which the researcher is interested in are practiced; hence they are well positioned to give crucial information as regards to how various styles of leadership as used by their leaders influence their satisfaction as well as productivity.
The researcher would address ethical issues through the use of informed consent, confidentiality and anonymity. Through informed consent, the study subjects will get to understand that they are participating in the study. They will also get to understand what the research is requiring of them. The information in the informed consent would include the following: the study’s purpose, methods to be utilized, likely outcomes of the study, in addition to any related risks, inconveniences, discomforts, and demands which the study subjects might encounter.
The confidentiality and anonymity of the study subjects would also be protected. To protect confidentiality, the data would be treated confidentially in terms data storage, data analysis and publication. The private and sensitive information of the study subjects such as names and address would be held in confidence. Any identifiable information would not be divulged to third parties. By removing the name of the participants and any identifiable information, their anonymity would be protected.
4.3 Data analysis: Analysis of Variance (ANOVA)
Since this would be a quantitative study, quantitative data analysis would be performed on the collected data. In particular, the information would be analyzed through statistical inferences and numerical comparisons. The data would be reported through statistical analyses.
Since there are quite a few dependent variables, the researcher will utilize Multivariate ANOVA or MANOVA quantitative data analysis tool in analyzing the influence of various styles of leadership on the productivity and job satisfaction of employees. Besides the use of MANOVA in the analysis of data, graphs would also be utilized to display the collected data through tests of correlations between 2 items, to statistical significance.
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It is sometimes crucial to figure out how to tackle performance management successfully. As such it is very important to strategic planning. This implies that strategic planning and performance management are key for any successful business organization all over the globe. The management performance is normally defined in the light of human resources. However, the definition can be broadened to encompass a number of outcomes of the whole business enterprise (Müller, & Friedli, 2015).
The individual performance of each and every employee in any business organization counts to a larger extent to the performance of that business organization. It is also important to consider the fact that the performance of that business organization also counts to the performance of the workforce of the organization. The incorporation of the two perspectives within the strategic management planning framework gives the most important opportunity for the prosperity of the company.
One’s planning process and strategic plan is crucial tools needed to deliver the required performance management. As such the two define the required changes that would impact positively to the key indicators. They also positively affect the key answers as to why changes are critical.
When, there, is no clarity as far as strategy is concerned, the organizational units will essentially develop their agenda alone, there will, therefore, be unconfused, uncoordinated efforts to make things better and the effect as far as the performance is concerned will be diluted dramatically (Müller, & Friedli, 2015). In a nutshell, one’s strategic plan defines why as well as how one would attain one’s goals of performance management.
This paper illustrates how performance management plan, process as well as steps involved are crucial in the performance of a company. It encompasses the analysis of a company’s performance management and now this impacts the success of the company. It is indeed the manifestation of how performance management, plan, and process are crucial, in the business organization.
How Strategic Performance Management Processes Are Affected by Learning and Management Strategies.
Strategic management affects the processes of strategic performance management in many ways. It is, therefore, imperative to know that the system performance, aligning the objectives as well as managing the employees of a given company to propel delivery of such company greatly. They facilitate operational goals as well as the strategic goals as stipulated by the company.
As such, studies show that there is intermediate and clear correlation between applying management of performance programs or software as well as business that is improved and the results of the business organization. The impact of the system of performance management in the public sectors differs from positive to negative (De, 2013).
As a result, this recommends that differences in the performance management system features and the settings in which they get executed to play a role that is very important in the prosperity as well as to the success of or downfall of the performance management.
An employee in a particular business organization will significantly deliver and be productive with the application of performance management. This may be an important outcome if there is a proper application of the integrated software contrary to the outcome that could be evident when the performance management uses a spreadsheet for a system of recording. The return on investment can be realized via a range of indirect as well as direct benefits of sales, benefits of operational efficiency and through making open of the latent capacity of every worker work day.
This implies the time spent by the employees not doing the jobs they are required to perform. Learning and management strategies are therefore crucial in performance management strategies since they encourage performance delivery as well as productivity of the business organization. As such, there would growth in sales, reduction of costs, decrease time as well as align the organization, motivation of the employees as well as improve the management control (De, 2013).
My Company and Employees
My company is king’s General Motors. The company deals with the automobiles, ranging from the motorcycles to huge tracks and buses. I have three hundred workers who very hardworking and competent in the jobs. My employees are engaged in the jobs such as management, the general assembly of the vehicles as well as sales and marketing of the company products.
Each and every department of the organization does a tremendous job in ensuring that the business succeeds in its endeavors. Such hard work performed by these departments has enabled the company to overcome the various challenges witnessed in the automobile industry all, over the globe.
Assessment of the Employees
To enhance the performance of each and every employee of the organization, I appoint a management team from each and every department of the organization to conduct the assessment of the employees in their departments. Various departments in the King’s General Motors employ different methods in assessing the workforce of the company.
In the department that deals with an assembly of the vehicles, applies the ranking system to enable it to gauge how much its employees perform in their respective fields of specialization. However, the remaining departments use appraisals to do the workers’’ assessment. The appraisals in the departments ensure that the workers are able to perform efficiently, competently and within the time stipulated by the departments to ensure quality work.
How I Provide Feedback
The assessment of my employees is usually conducted within a span of three months after each and every financial year. This serves the assessment right especially after the financial year when the company is able to ascertain its profits for a particular year. After the assessment, I usually provide the feedback for the same in an annual general meeting that is usually held at the company hall.
During the meeting the success and failures of the company are analyzed and criticized where need be, just to ensure that it is in, the right train as far as the progress of the company is concerned. The type of feedback provided is usually summative and is based on productivity that is related to what a particular worker or groups of workers do.
How I will Reward the Top Workers and the Low Performers
After the assessment of the performances of the employees, very many ways are used to reward workers who perform well as well as those who never do well in their duties. For the top workers, I usually reward them by promotion, increased remuneration as well as through recognition as either the worker of the year or the most proficient worker of the decade.
There is also Various presents and gifts given to such workers. My company is also concerned with the employees who are not doing well as far as their performances are concerned. Such workers are encouraged not to give up, but work harder. After this, the low performing workers are taken for in-services to enhance their performance.
Müller, F., & Friedli, T. (2015). Integration of a Strategic Performance Measurement and Management Process into the Management Landscape of a Manufacturing Network.
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