Pandora: A Human Leadership and Motivation - Case Study Example

Section/# Pandora: A Human Leadership and Motivation Overview Word Count: 1518 Contents Page Introduction 3 Leadership Theory 3 Motivation Reward Theory 5 Conclusion 7 List of references 9 Introduction: As a means of staying current and relevant within the current market, firms not only need to consider the means by which they can promote their product or service and/or otherwise manipulate its quality, they also must focus on developing strong structures of leadership is and employee motivation. The underlying reason for this has to do with the fact that companies are only as successful as the human resources that work for them remain satisfied and motivated and loyal. Within such a paradigm, the following discussion will focus specifically on the case of Pandora Jewelry and the means by which motivation and leadership theories are exhibited within its corporate culture. It is the hope of this particular analyst that such a level of discussion will be beneficial in seeking to provide a level of understanding concerning how Pandora jewelry has come to be so successful and the means by which other firms might incorporate these best practices as a means of penetrating the existing market space. Leadership Theory: Firstly, in terms of the leadership approach and theory, Pandora clearly utilizes a participative theoretical approach (Andersen, 2013). Many firms have come to realize within the past few years that top-down management and leadership does not always fact that most efficient response in terms of employee and stakeholder involvement and buy. Within this context, relevant decision-makers within upper management of Pandora have indicated that they strongly encourage a level of participative engagement as a means of ensuring that each division, department, and individual store/stakeholder is keenly aware of these and that exist within the company and open/receptive to potential ideas. Whereas many companies and expended millions of dollars as a means of hiring third-party analysts to tell them where efficiency and potential new approaches to business may be found, Pandora jewelry encourages this level of engagement and participation within each of its employees (Chantiri, 2009). Accordingly, the company illustrates a structure in which the manager/leader does not wait until a period of performance review in order to elicit feedback from his/her stakeholders/employees. In this manner, an ongoing dialogue between the leader/manager and those under his/her purview is continually denoted. Whereas many firms might be hesitant that this approach could be beneficial in their particular context, the core rationality behind Pandora’s application of this approach has to do with the fact that the individual employees are oftentimes most ideally suited to recognizing shortcomings and potential drawbacks in terms of the business model and the means by which it can be improved. Likewise, these employees are the ones that directly come in contact with customers, are able to engage reception, needs, and potential new approaches and forward them on to leadership. Although there is not a direct level of compensation for providing these views and encouraging a shift in the way that business is conducted, the innate and tacit benefit that such a leadership model provide is that it encourages the employee to view their input as valuable and actionable by the company in question. A clear distinction should be made in this particular case as many individuals misinterpret participative management/leadership as not different as compared to democratic leadership. However, the fact of the matter is that the leader in this particular case is still making a final decision; however, she or she is merely basing this decision partially upon the inputs and understandings provided by his/her employees. Motivation/Reward Theory: In terms of the motivational approach and theory that Pandora jewelry utilizes as a means of encouraging employee participation and engagement, this can clearly be seen as a theory that relies heavily upon the Total Rewards System (TRS). Although not as unique as the approach illustrated above, the total reward system can be defined as an integrated system that seeks to encompass three elements that employees might value as compared to many others (Lyons, 2010). These include: benefits, work experience, and compensation. By speaking to each of these determinants, the total reward system access to encompass a level of motivational theory and reward as compared to many other theories that only are able to engage with certain elements of motivation and promote only a certain level of engagement with the employee. For instance, Pandora exhibits a primary focus upon providing an extraordinarily level and quality of health plans to their employees. By focusing and high percentage of time, money, and energy as a means of developing robust and competitive retirement plans, disability income plans, health plans, executive benefits, and other assistance programs, Pandora jewelry attempts to surpass the competition in terms of the benefit structure that it is able to provide to its employees. Likewise, the work experience and the motivational impacted that this has in terms of Pandora’s total reward system can be understood in terms of the initiatives for wellness focus on recognitions and rewards, and the potential for career and professional growth, training, coaching, and mentoring that are provided within the firm (Hall, 2011). Whereas many merchandise and regional firms seem satisfied with finding employees that are willing to work at a certain job for a certain price and leave all motivation up to managerial style and compensation, Pandora utilizes the total reward system as a means of leveraging work experience and the potential for advancement within the company as a primary motivational tool that assists in keeping employees interested and engaged with the work they are currently performing. Last but not least, the total reward system necessarily places a primary level of emphasis upon the need to motivate employees based upon compensation. As a direct result of this, Pandora jewelry has placed a fundamental level of focus upon the need to maintain a competitive base salary, provide merit pay, incentives, promotions, and cost-of-living adjustments, as well as ensure that equity and ethics are represented within their pay structure (Makerly, 2011). As indicated previously, whereas many merchandise and regional firms are merely interested in finding the best employee at the lowest price, implementation utilization of the total reward system as a means of motivation within Pandora jewelry serves as a mechanism by which the stakeholder/employee is continually reminded that their compensation is based upon their overall level of output and that opportunities for promotion, increases in pay, and cost-of-living adjustments are continually considered. This serves as a tacit level of motivation in the sense that the employee is provided with the understanding that they are not necessarily stuck in a dead-end job. Whereas there may not be a great deal of career advancement within the specific job duties that they are performing at the moment, the compensation structure and the incentive that it provides encourages the individual to look outside their workspace and consider what potential opportunities and benefits they can bring to the firm as a means of increasing their base pay and providing a level of motivation and incentive for them within the company. It should further be understood that any one of these approaches is affected; however when used in tandem with one another, and Incorporated within the framework of a total rewards system, the benefit on employee motivation is only comparable in terms of synergy. Evidence of this can of course be seen in terms of the way that companies that have attempted to incorporate elements of total rewards management without the entire system have not experienced the overall benefit that those which have engaged total reward systems as their primary motivational tool. Conclusion: From the information that has thus far been provided, it is clear and apparent that the approach which Pandora has taken towards its employees is one that currently leads the industry and effectively contributes to the overall profitability and success that the company has been able to engender over the past several years. However, it should also be noted that Pandora is not the only firm that has chosen to pursue this level of employee reward/motivation and leadership structure. Additionally, the reader should understand that the approach that has been elaborated upon thus far is borne out of a desire to maintain relevance within the market, cut costs, and ultimately more effectively compete with other players within similar markets. Rather than understanding that Pandora has taken these approaches based upon a desire to maximize employee welfare as a final determinant, a far more rational approach is that the company has only approved these strategies as a result of the fact that employees have many alternatives to the jobs that Pandora can offer; as such, the potential to lose valuable efficiency as a result of employee turnover remains a relevant factor as to why the company has chosen to integrate with the models and theories that have been exhibited above. Sadly, whereas it is often the case that companies make decisions based solely upon our markets, the case that has been exhibited with respect Pandora is no different; as Pandora understand the fact that employee motivation and leadership service fundamental reasons why individuals be their place of employment and seek out another. List of References Andersen, H 2013, Owners Practice Guide to the Wayback Machine, A. J. on Telecomm. & High Tech. L., 11, 251. Chantiri, E 2009, LIFECYCLE: EXPANSION, Brw, 31, 5, p. 58, Academic Search Complete, EBSCOhost, viewed 13 November 2014. Lyons, JC 2010, Pandora is out of the box, Brw, 32, 45, p. 55, Academic Search Complete, EBSCOhost, viewed 13 November 2014. Makerly, T 2011, Jewelers CEO Quits as Outlook Dims, Wall Street Journal - Eastern Edition, 3 August, Academic Search Complete, EBSCOhost, viewed 13 November 2014. Hall, W 2011, Network Theory-The Ever Evolving Web: The Power of Networks. International Journal of Communication, 5, 14. 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