Leadership in Organizations - Nissan and Goshn - Essay Example

Leadership in Organizations Introduction Throughout history, organizations are faced with the complex task of seeking the best style of leadership (Kotlyar and Karakowsky 2006, p. 375-380). This is mainly because of the realization that without effective leadership, then it is hard to achieve the goals and objectives of an organization. It has therefore called for organizations to invest heavily on research and application of some of the best styles of leadership in their organization (Burns 1978, p. 5-9; Albritton 1998, p. 65-71) Leadership is defined to as the ability of an individual to influence people to move towards a certain direction. In an organizational context, the direction is towards achievement of preset goals in the mission statement and other written documents. It is evident that leadership is not easy (Alimo and Alban 2000, p. 2-7; Jacobs and Jaques 1987, p.7-65). The employees of any organization are complicated and each comes with varied expectations. Most of them may have been trained differently and their work experience may differ. According to Dasborough (2006, p. 163-165) their character traits and motivations are also very varied, and every leader must take into considerations such complexities. According to Schmid; Berdahl and Anderson (2002 p. 27-39; 2005, p.45), different genders also accomplish tasks differently and perceive leadership in different ways. Further, innovation and further research has brought about a set of new styles of leadership. Therefore, a leader is expected to bring harmony amidst of all these complexities (George 2006, p.778; Judge et al 2002, p.768-770) There are several types of leadership styles (Kouzes1999, p.15-12; Pielstick 1998, p.16-20; Bass and Avolio 1994, p.15-25). These include, autocratic and bureaucratic, transformational and democratic styles, participative and people oriented leadership among others. Leadership styles vary from the traditional approach to the modern styles. The traditional leader was formal, and offered the ultimate authority to the organization (Kickul & Neumann 2000, p.25-30) It was further divided into a hierarchical structure, with each leader offering a definite authority. However, times have changed and better styles have come in. The tasks accomplished by the organizations are also complex and the employees are more trained in the modern day. This has made it hard to continue applying the same styles. Rather, many organizations are moving into an era where adjustments are being made as far as leadership is concerned. . The topic of leadership is addressed in the book, Leadership in Organizations (Yulk 2010, p540-543). In this section of the book, the focus is on the case study of Nissan, which took a turn around due to good leadership skills applied in the organization. In specific, the case study focuses on the skills applied Goshn, the CEO of the company. The Case Study Question one Nissan was faced with the problem of efficiency when Goshn was appointed into the company. It had faced numerous losses and a way forward was needed to ensure that closure would be avoided. The processes of accomplishing tasks would have to be reduced to ensure that maximum profit would be realized. Still, the companies, being from different regions were had to adapt to ensure that the way forward was realized. The human resource also had to be influenced towards realization of the company’s goals and objectives. Goshn was appointed into the company, in the year 2000, after the merger between the companies, Renault and Nissan. He had been a leader of Renault since1996. He, at Renault had taken a top most position, and had shown great performance throughout his leadership. The alliance of the two companies happened while he was in leadership at Renault. Upon the merger, he took the position of a CEO. The companies were from different regions, Nissan from Japan while Renault was from France. He has also been a member of board in many other organizations. His leadership skills draw the attention of many organizations in the world. Most of his skills used to bring changes in the organizational style of leadership. This case study would want to focus on his managerial skills and the qualities he professionally applies in the Nissan motor. The Japanese owned motor company turned around in the year 2000, thanks to the newly appointed CEO (Yulk 2010, p. 540-543). In fact, many writers on the subject have referred to him as the turn around specialist. Goshn came in at a point when the company was looking forward to a new direction after its expansive measures it had taken. The alliance between the companies Renault and Nissan made it necessary to have a visionary leader, who would apply managerial skills with professionalism. Carlos Goshen did not disappoint. The success that came with his appointment led to attention from both the media and the corporate world. Everyone wanted to understand how possible it was for company to achieve the goals that were once hard to achieve The first important thing that happened while Goshn was into leadership was his ability to start on a clean piece of paper (Yulk 2010, p540-543). He said that one must look at the organization as a newborn, without pre-conceived opinions and ideas. Rather he chose to start from scratch, as though he had no experience from Renault. He chose rather to start from zero and try to understand the newly formed company. . The man was people-oriented (Yulk 2010, p. 540-543). He would not isolate himself from the rest of the workers. He therefore took his time to listen to people and understand whatever social situations they were going through. Further, he made it clear that he was not out to lead people towards changing Japan. Rather, they were out to help Nissan achieve its goals and objectives. He also made it clear that they would adapt to Japan in every way possible. Often times, he would ensure that the employees would the success of their contributions to the company’s goals (Yulk 2010, p. 540-543). He ensured that everybody felt as a part of the company. People would be encouraged to align their personal goals with those of the company. This way achieving the company’s goals and objectives would be easy. He ensured that everybody felt comfortable in their role. The employees, he declared, were more important than anything else in the company. Such statements would further motivated the employees to achieve their goals and objectives One profound belief by Goshn was that leaders are developed and molded; that leaders are not born so (Yulk 2010, p. 540-543). As a CEO, he felt obligated to develop future leaders. He therefore took his time to study their strengths and potential, and offered leadership towards growth. The ambitious were not ignored, but rather exposed more into spheres of leadership .sometimes he would deliberately send them to the areas of great challenge, having understood that only this would bring the best out of them. One would therefore be allowed to learn through experience, rather than the formal class work or reading materials and books. Question two The effectiveness of Goshn’s type of leadership in a corporate Every leader is faced with one challenge; to gain support from the employees and hence the necessary teamwork to achieve the goals of an organization (Kotlyar & Karakowsky 2006, p. 375-380). Coming up with the direction for the employees is not as important as it is to implement it. It is therefore vital that teamwork is achieved through good leadership. Qualities such as honesty, respect and an understanding individual go a long way in provision of successful leadership. Transformational leadership is the kind of leadership that motivates the employees and gives them the incentives to accomplish the given tasks (Torbert 2004, p.12-27). Some of the ways that this is done is through connecting of an individual’s goal with the goals of the company. The other way in which this can be done is through the ability of a leader to let the employees gain a sense of identity with the company. It is also inspirational for the employees when the leader is able to lead by example. They can easily emulate the values upheld by such leadership. It also creates a value system for the company. Lastly, but certainly not the least, the leader is able to give the employees an opportunity to maximize their strengths (Lord et al 1986, p.34-57). He is able to expose them to levels where they can optimize their ability. This motivates the employees to work harder to achieve both the organizational and individual goals. Such is what Goshn offered at Nissan. In the overall result, the company has one work force, united by the core values, and that is working towards the same goal. The effectiveness of such style of leadership is easier achievement of corporate goals and objectives. Generally, this style of leadership is centralized around four key elements. One is through individual consideration of the need of the employees (Klein et al 2006, p.590). An employer will not assume that the needs of the employees are the same. Rather, he ensures that those differences are recognized, small as they may seem. After this, he will attend to their differences, offering support and guidance at an individual’s level. This way, an employee feels celebrated and appreciated. The second element is that stimulation of the intellectual capacity of the employees. This brings out the creativity that is locked up within the employees, and motivates them to act and do things independently (Miner 2005, p. 12-17; Torbert 2004, p.12-27)) The third aspect is that of inspiring the individual employees to achieve goals (Motowidlo 2003, p.17-23). The leader gives each of them purpose to work and add more effort to the tasks that are assigned to them. The individuals who may have lost the zeal and desire to work for are motivated to live on, and are given a reason to do so. Optimism is also created in the language of the employers so that they are able to see challenges as platforms to learn and grow further in their careers (Borman & Brush 1993, p.1-21). Lastly, he provides a platform for the employees to see the ideal situation. This may include the discipline that they ought to uphold while in the work for. In addition, it may include precision of doing things and the perfect timing in accomplishing goals. This way, the employees are able to compare their actions with those of the ideal situation. Cross-cultural differences can be reconciled in various ways. Leadership must be offered to seal the gaps that seem too obvious (Montana &Bruce 2008, p. 25-39; Zaccaro 2001, p.1-5). The idea is to ensure teamwork prevails in the end. For one, the leadership must recognize that there exist such differences. He or she must do this from a neutral ground. Once a leader is biased in such contexts, the human resource will be divided for a long time (Avolio et al 2003, p 277). The leader should therefore be ready to shed away all the preconceive mentalities of different cultures and groups. Secondly, the leader must be ready to identify withy each cultural background and get better understanding on the same (Morgeson 2005, p.497-498). To do so, he or she will be ready to move on to other steps. In the same line, the cultural backgrounds should be appreciated. The next step would be ensuring that there is a common ground for all the employees (Mumford et al 2000 p.35-65). This is what will give the leader a limelight on where exactly to direct the focus of the employees (Arthur 1988, p.15-20). When all the employees appreciate that there are several things that they share in common, teamwork shall by every means prevail (Wormer et al 2007, p. 1-7). Some of the irreconcilable differences should not be ignored but rather, they should be acknowledged that they exist. Further, the leadership must know how to work with all the unique characteristics of different cultures to the advantage of the organization (Spillane et al 2004, p.3-7; Kozlowski 1996, p.253-291). Carlos Goshn chose to give freedom to the employees to do things the best way they knew how to, yet in consideration of the corporate goals and objectives. Ultimately the organization should ensure that they rise together as a team and as such be flexible, sometimes adjusting to each others culture for the good of the company (Tittemore 2003, p.12-15). Goshn, by example, demonstrated that it was possible to adjust, if only in this way the corporate will succeed. He was able to learn on Japanese language, so that he would effectively lead the company. In the end, the benefits of such were reaped .the once ailing company was now in a different lane of success, challenging everybody around them Question three Character Traits and Skills Goshn was disciplined and morally upright (Yulk 2010, p540-543). The father, a Lebanese, had instilled his core values in him. From childhood, he portrayed great capabilities in leadership. Good performance, together with his curiosity to know more than what was taught, went a long way in assisting him to grow in his career. He made efforts to grow in his career through learning, from either books or experiences in the market place. On being appointed as a CEO, he made efforts to learn the needed languages so that he would adapt into all cultures. Other skills such as training, experience, and the ability to come up with good short and long term goals is of great importance (Torbert 2004, p.12-27). Goshn had a good moral authority, and as such, many people would be proud to associate with him as the CEO of Nissan. He demonstrated beyond reasonable doubt that he was reliable and would lead by example. The training that he had received from the colleges he had attended coupled with experience also enabled him to successful lead the corporate effectively. According to Yulk (2010, p540-543), three principles can be derived from the leadership style that he adopted. One of theses principles was transparency. He applied the principle that whatever every leader says and commands, then he should do the same also. He therefore came out clear on the weaknesses of the company and its financial status. He would actually go to the point of revealing his own financial well-being to the employees. He was convinced that by doing this, it would be easier for the employees to understand the need to move in a certain direction. The second principle was that the execution of the job was supposed to be at 90%, while the rest of the percentage would be on strategy (Yulk 2010, p540-543). He therefore came up with a strategy to ensure that tasks were performed effectively and efficiently. The third principle he emphasized on was that communication was of great importance and should always be enhanced in an organization. The employees were encouraged to share all the problems that they faced while accomplishing given tasks. He therefore ensured that there was free flow of information in all levels of the organization. Question four Leadership Styles He opted for transformational style of leadership (Yulk 2010, p. 540-543). He also applied the principle of charisma and democracy for the better good of the organization. His style was to ensure that all the employees were empowered and given the chance to choose their own path of achieving the organizational targets. Further, the subordinates were allowed to bring in their suggestions on board for discussion. None of them was left feeling that their views were not appreciated. In decision-making, the leader asked for the opinion of the subordinates. He would take his time to listen to all the suggestions of the employees before he conclusive settled for anything major. He also offered laissserz faire kind of leadership (Yulk 2010, p. 540-543). This meant that everybody was allowed to move on with their work without strict supervision. However, he would monitor them at a close distant. He encouraged the employees to adapt their own strategy, which would be aligned to their own circumstances. This allowed people from different cultures to feel comfortable to work in the organization. The style of leadership adopted by the Nissan is a shift from the traditional style of leadership that was hierarchical, exhibiting autocracy (Jung et al 2008, p.587-595; Larson et al 1996, p.315-320). Everybody followed what the leader had to say even though unreasonable. However, such methods of leadership bring in a different aspect into the leadership styles Guastello 2007, p.357). The employees have more chances of expressing their opinions than they did before. The leadership style adopted by a leader also makes the corporate to either be effective or otherwise (Klein et al 2006, p. 590-595). A leader must be ready to adopt the kind of style that is more appropriate for the company, depending on the differing circumstances. Failure to be flexible is directly related with failure. Goshn was a good example of the needed flexibility in a leader, and adopted the very best of them for Nissan. He adopted transformational style of leadership, which turned around the tables for Nissan, placing them on top of other organizations Question five Cross-cultural differences Goshn, from the word go embraced the differences in culture within the organization (Yulk 2010, p540-543). He was able to use this as strength and create a new culture for Nissan as an organization. He did not try to ignore the fact that people were coming from different backgrounds. Rather, he accepted the backgrounds and came up with a distinct and a successful organizational culture. He well understood that it was possible to experience conflict due to the cultural differences. In situations such as these, he understood that people would be prone to doing things their own way and blaming others of different cultures for failures. He therefore ensured that there were teams, working together, though from different cultural backgrounds. Cross-cultural differences is one aspect that is of prime concern to the organizations globally (Zweifel, 2008, p.1-8; House 2004, p.1-7). Many workers may come from different cultures, and as such, it is important to reconcile the differences so that the organization is successful (Peter & Robert 2004, p.301-302). The differences may be so great to the point where the organization is divided along such lines. Everybody may be motivated in their own direction, some doing things very different from the ideal. However, reconciliation of all these differences is possible. At least, Goshn demonstrated this to the whole world. He led an organization that could have been split through these lines. However, his ability to reconcile the difference saved the situation. However, the extremes of the modern styles can be of reverse effect to any given company. Instead of the anticipated success, the company may experience downfall if caution is not taken for example, the leadership may fail to monitor the activities of the employees in the bid to exercise laisserz faire in the organization (George 2000, p.1027-1029). This may be of heavy consequences to the organization, if in any chance; the employees are shifting their focus on other goals other than what is expected of them. Another aspect is that the organizations may fail to have an ultimate authority, bringing further conflict in times major decision making (Howard & Bray, 1988 p.12-45). If a leader is perceived as weak, then it gets to the point where the subordinates will make major decisions without consulting the CEO. This is obviously one sign of a failing company. Therefore, the modern methods of leadership should be exercised with caution. Further research is needed on the best ways of executing leadership roles. Conclusion Many people refer to Goshn when they wish that their corporate excel in the same way that Nissan did. The change that the company was looking for was in one man. Goshn demonstrated the traits of an all-round manager and as such gained a lot of admiration from the social and corporate scene. He therefore stands out as an encouragement for the top-level management to adopt some of his the leadership styles. The change of leadership style is vital, where companies are looking forward to effective and efficient organization. Without a doubt, this is the goal for many companies in the global world. Leadership therefore must be developed and enhanced if at all the companies desire success. The belief that leadership is developed and not meant for specific individual is an important factor worth of consideration. More people such as Carlos Goshn are needed in the corporate world to bring the much-needed turnaround. 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