Leadership Paradigms - Essay Example

?Leadership There are a number of leadership paradigms that underline business relations at SAP. The main structural elements include an ExecutiveBoard with six members and an Extended Management Board having twelve members. While originally based on a unilateral structure, as the company grew with the move towards internet solutions, a hierarchical management structure was put into place. Perhaps the most important leadership aspects are rooted in its dual CEO structure. In these regards, Hasso Platner represents the temperamental, yet visionary aspect of the organization. Conversely, Henning Kagermann represents the more subdued, managerial aspect of the organization. It is through the varied yet complimentary leadership paradigms that these CEO’s bring to the organization that constitute SAP’s primary outlook. In addition, there is an overarching resistance to change throughout the organization. While SAP is centrally located in Waldorf, Germany the company has become an international entity, with substantial leadership entities in the United States, Switzerland, Asia-Pacific, and various regions within the Americas. To some degree there are substitutes for leadership operating within the organization. SAP has developed a highly competitive atmosphere, wherein employees are encouraged to develop a number of hobby projects. In these regards, the substitute for leadership consists of this entrepreneurial environment. In terms of a substitute for the seven layer managerial structure, to some degrees this hierarchical structure is necessary as the high number of employees and expansive nature of the company necessitate a complex organizational structure. Still, it is noted that there is inefficiency in this structure in that it locates individuals with their manager rather than those whom they actually work with. 2. The type of followers SAP says it wants are “self-managing, professional employees who create opportunities to fulfill their potential and maximize their value to the organization” (‘Case Study’, pg. 8). SAP currently has instituted a number of measures to reduce their employee attrition rate. In these regards, there is a strong emphasis on promoting employees from within the organization. The company also does not make a regular practice of firing employees whose skills are no longer needed; instead they have made a practice of tailoring career paths for employee development, encouraging employees to work in different areas of expertise. The company also encourages flexible working hours, casual dress styles, as well as long hour meeting times in the cafeteria for employee networking. The company also developed an employee development management culture. Perhaps most importantly the company offered salary levels above the average for the expected work, as well as profit sharing opportunities. In addition they have developed opportunities for employees to gain stock options through an American based program. In all it seems that the company has taken adequate HR measures to stem the employee attrition rate. Rather than developing furthered measures, with the exception of greater stock options, it seems the main attrition problem is linked to the company’s organizational culture and leadership qualities. In these regards, one would need to make deep structural changes that would possibly alter company progress and efficiency. 3. There are a number of notable elements related to the structure at SAP. It seems that the most notable element relates to the seven layer management structure the organization has in place. While the case study indicates that the managerial structure was a needed response to the company’s increasing size during the internet boom, there are also a number of elements related to it that have been indicated to be problematic. For instance, “one of the consequences of this focus on management was that people may be located with their manager rather than being co-located with those they actually work with” (‘Case Study’, pg. 5). In addition, this structure seems counter to the creative and collaborative culture the company has tried to engender. Rather than continuing this hierarchical management structure, it seems that the company’s would stand a strategic advantage to develop a more collaborative and unilateral management structure. 4. When considering that people are asking for different leadership at SAP, this indicates a difference in paradigm between leaders and followers at the organization. In these regards, the major difference is indicative of employee dissatisfaction with the company’s hierarchical structure, as well as possibly the motivational and employee evaluation processes. In these regards there is a clear mismatch between employee and management leadership expectations. It seems the predominant mismatch is in regards to the motivational factors related to employee and manager relations. The company could develop from incorporating a management approach more geared toward employee motivation. In these regards, the path-goal leadership model has been noted to be particularly apt for this mode of thought. As the underlining goal of this model is to, “enhance employee performance and employee satisfaction by focusing on employee motivation” (Northouse, pg. 127). It follows that in instituting this managerial model, SAP could solve many of its leadership and process issues. 5. In many regards it seems that SAP is becoming a learning organization. Partnerships with customers and suppliers constitute an important element of learning within the organization. In these regards, SAP has gradually introduced increased levels of customer satisfaction measures and opened up direct modes of communication between client and developers. In these regards, it’s indicated that, “SAP is evolving further from being a solutions provider into becoming a service provider. This strategy is based on the assumption that by selling solutions, people also sell hardware and software” (‘Case Study’, pg. 4). In addition to these structural changes, SAP also systematically channels customer feedback into productive improvement measures. The company is also concerned with collecting information within the organization, as every two years employee satisfaction surveys are administered. These measures, coupled with an increased emphasis on partnerships with outside organizations, demonstrate that SAP is definitely becoming a learning organization. 6. In many regards SAP is poised to become a global organization. One of the most pivotal factors in this regard concerns the company’s already expansive globalized presence. For instance, it’s noted that, “SAP is a highly global organization with just under 80 per cent of sales and over 50 per cent of employees worldwide” (‘Case Study’, pg. 5). Other elements that greatly contribute to the company’s globalization is its move toward offering stock options to employees. While this is prohibited in Germany, it is a practice that the company has gradually adopted in their American branch. In these regards, the company is well-situated to compete globally for employees. In other regards, the company structure is well-suited for going international as there is already communication conducted through paperless means. This virtual environment is a central aspect in SAP’s ability to have an international presence. Ultimately, it’s clear that for the most part this corporation is already globalized. In potentially gaining a more globalized presence, the company could consider teaming with government or non-profit organizations to aid businesses in developing nations gain an internet presence and improved business efficiency. 7. There are a number of steps SAP would need to take to become an Organic organization with self-managing teams. Currently the organization is divided through a seven tier management structure that limits the extent to which teams can cooperate in an Organic environment. The greatest obstacle in establishing self-managing teams within the organization is developing a means of controlling the expansive nature of the organization, while still allowing for an appropriate leadership structure that encourages Organic cooperation through self-managing teams. The LMX leadership model has been indicated to be an appropriate approach for instituting this organizational approach. In these regards, “LMX theory works by focusing our attention on the special, unique relationship that leaders can create with others” (Northouse, pg. 158). In these regards, by instituting LMX theory in terms of leadership, SAP could promote an Organic and self-motivated work environment, while still retaining some form of managerial control. In addition, improved methods of employee evaluation could be instituted in an effort to improve employee motivation through genuinely convincing employees to engage in company work. 8. In ensuring the organization’s continuing sustainability there are a number of things top management could do. One of the central issues, which has remained thematic throughout this examination, is the importance of addressing employee and managerial conflict. In these regards, the core issue concerns moving from the seven layer managerial structure to a more Organic and unilateral model that genuinely motivates employees. In addition to this shift in organizational culture, I believe it’s important that SAP adopt a more progressive approach to development that can remain on-top of both changing business trends and cutting edge industry talent. With the rapid pace of technological development, SAP’s future sustainability will be intimately tied to the organization’s ability to stay abreast of these changing technological trends. Ultimately, attracting new creative talent through the creation of a vibrant and attractive work environment will be essential to achieve these goals. 9. The organizational culture at SAP can be understood in two dichotomous ways. In one regard, there is the seven layer managerial structure that engenders an organizational culture of inefficiency and general discontent. It’s also indicated that SAP is a highly competitive and stressful work environment. In another regards, there is a culture wherein individuals are encouraged to engage in long lunch breaks as an element of networking. This is generally a casual environmental that attempts to cater to employee interests and reduce employee attrition. In terms of emotion and spirituality there are limited examples of this within SAP. The company does have a counseling service in practice that caters to employees distraught at the challenges of the high pressure work environment. In terms of spirituality, this could be enhanced through the company taking a more proactive stance toward non-profit work, or aiding organizations with a more positive interest than merely a profit margin. In these regards, SAP could attempt to help organizations improve business in developing or impoverished regions as a means of improving the company’s overall spiritual emphasis. 10. The HR success factors adopted in the Switzerland branch could be implemented in both the United States and Germany. In implementing this model in the American and German branches it’s clear that the company needs to articulate a physical template that outlines the structure in Switzerland. Instructional designers will then be able to structure this information into a training program that will allow for it to be disseminated to the outside branch organizations. Employees from the Swiss organization with experience in this platform could then work with the specific branch in question to ensure that it is adequately followed and successful. The company’s emphasis on employee development and competition will be important elements in these regards as employees are capable of adopting newfound organizational methods. There should be added acceptance of this within the organization, as employees have already indicated that they are unhappy with the seven layer managerial structure in place. Companywide evaluations could then be implemented to ensure that the measures are a success, and learning mechanisms could be developed to develop more efficient training programs. References Case Study. SAP: Leader of the pack. Northouse, Peter (2006). Leadership: theory and practice 4th Ed. Sage Publications, Inc. Read More