Leadership Models in the Companys Brisbane Branch - Essay Example

Introduction Streamlining business operations through the effective and efficient application of management techniques is essential for achieving success and attaining the designated strategic and tactical goals which the company intends to achieve. With regard to the objective of reaching the outlined aims of the organization, it is imperative to maintain a favorable relationship between the employee and the employer otherwise the activities of the business maybe subjected to an the emergence of unfavorable and negative consequences as a direct consequence of any discontentment which may prevail amongst the employees of the business. In the light of the events which have occurred in the Brisbane branch of the firm in a span of six weeks, the scenario behind the resignation of four line managers as a result of inadequate opportunities to participate in the decision making of the business is being considered critically by the company to assess the state of participative management techniques and leadership models in the company’s Brisbane branch. Hence, the purpose of this report is to explore the circumstances surrounding the resignation of the four line managers to better understand the application of the leading and organizing function of management in the firm and present appropriate recommendations for addressing the present issue successfully thereby, reducing turnover rates in the future. Problem Analysis The prevalent issue in the organization is associated with the concept of employee turnover which is demonstrated by the resignation of four line manager’s at the company’s Brisbane branch in the time period of six weeks. According to Jang (2008), the concept of employee turnover can be defined as “the gross movement of workers in and out of employment with respect to a given company”. Moreover, the concept of turnover can be assessed in terms of voluntary and involuntary turnover, which in this case is associated with the former as the employees have willingly resigned from their respective positions (Cascio and Boudreau, 2010). While, the explanation of central causes of employee turnover have often been described by researchers as being unique to the organization or even individual cases, it has already been established that the fundamental reason behind the four resignations which have been received by the company is a consequence of inadequate HR practices. As noted by Jackson, Schuler and Werner (2011), poor levels of job satisfaction and absence of fair opportunities in the workplace can promote a sense of dissatisfaction in employees and eventually transform into turnover. While, it may appear to be plausible to state that employee turnover does not present a critical threat to the wellbeing of the firm’s operations given the nature of the business and the industry in which it operates as it would allow the firm to rehire workers on a relatively short notice, this belief is entirely misleading. As postulated by Liebler and McConnell (2011), turnover is an issue because it triggers the emergence of inefficiencies across business operations by increasing the cost of recruitment and training, most importantly in the case of experienced staff members while negatively impacting the morale of company employees who may be prompted to reassess their position in the firm as a result of voluntary turnover. Thus, it can be concluded that the resignation of four line managers in the company’s Brisbane branch is matter of concern because it poses a critical threat to the company and point towards the fact that the firm must reevaluate its managerial practices to incorporate employees into the process of decision making. Aspect of Management The problem at hand is closely linked with the management function of leading because this aspect focuses upon the ‘people’ element of the business and aims to influence and inspire employees towards meeting the assigned goals and performing to the best of their capabilities for producing desired results (Schermerhorn, 2005). In fulfilling the managerial function of leading, managers must be prepared to understand the demands of their employees, identify the presence of problems which may limit their potential and reduce the existence of such issues to accommodate better performance and satisfactory results. For example, Schermerhorn (2005) presents the example of Deborah K. Holmes of Ernst and Young who successfully responded to the unique requirements of female employees who were exposed to the pressure of managing both work and family life. Thus, as a result Holmes embarked upon a journey to develop a comprehensive campaign to fulfill the demands of women workers under a thorough model to motivate workers at the company and thereby, promote employee retention. Similarly, in this case the company should apply the managerial function of leading to understand that line managers are posed by the need of being granted with decision making opportunities otherwise they may experience dissatisfaction and a sense of being removed from the tasks that they are supervising. Moreover, if the organization becomes prone to a high rate of turnover then this issue has the potential to reduce the company’s prospects of increasing sales by 3% as a demotivated workforce would not be prepared to perform in an effective manner and meet designated goals. Thus, as motivation levels of employees decline the organization’s strategic prospects would also suffer negatively. Furthermore, a demotivared workforce is more likely perform poorly with regard to the provision of customer services to enhance the tactical objectives of the firm. Assessment of Environmental Factors With relation to the impact of environmental factors on the progress of the business, it can be suggested that the competitive forces of the task environment have led to a loss of decision making for the line managers. Griffin (2006) notes that competitors are a part of the larger task environment and therefore, can lead to a long-term effect on business operations even though, it may not be possible to specifically identify how this influence has emerged. Therefore, it is probable that because of the competitor nature of the industry, the management has focused upon adopting a bureaucratic or centralized approach to leadership as a result of which line managers may feel alienated and unable to directly influence decision making. Consequently, this aspect can also be an outcome of the operations of the internal environment which comprises of the owners and senior members of the management amongst others (Griffin, 2006). Therefore, it is probable that as the organization moves forward towards adopting a culture of autocratic or centralized leadership as opposed to a democratic or paternalistic style, this factor may result in an over loss of decision making opportunities on the part of the line managers and the middle management. In a report compiled by IBIS World (2014) on the state of the clothing retailing industry in Australia, the analysis indicates that the industry has been characterized by the presence of harsh economic conditions which have adversely impacted the level of consumer spending while, enhancing the scale of competitive forces at the same time. These conditions can possibly be attributed to the company’s shift in managerial style, for instane, Philips (2002) asserts that it is probable for managers to transform their managerial style in accordance to the scenario or situation. Therefore, the tough industry conditions can be associated with the loss of decision making privileges that the line managers have experienced in the company’s Brisbane branch. Conclusion The presentation of this analysis leads to the development of a conclusion which suggests that the environmental factors which exist in the task environment have led to the adoption of a centralized style of management on the part of the company. Therefore, this centralization of authority is responsible for promoting dissatisfaction amongst line managers who experienced a loss of decision making powers as an outcome of this factor. Moreover, it has also been identified that the company has not been able to understand factors which may be promoting this discontentment in the first place as might have been possible to exercise employee retention had this aspect been previously discovered and addressed successfully. In the given situation it is suggested that the company should focus on enhancing management behaviors and aiding a shift towards a democratic style of leadership. As stated by Daft (2007), democratic behaviors are most effective even in scenarios when the leader is not directly present to supervise the affairs and activities of the team. Moreover, democratic leadership also corresponds with the promotion of participative management techniques across the business through employee engagement and empowerment. Therefore, as it has been identified that the line managers who resigned from their positions recently were dissatisfied by their lack of participation in decision making processes the adoption of democratic leadership would address this issue by developing opportunities for positive interaction between the senior management and employees. Accordingly, this theoretical framework would also correspond with a subordinate-centered style of leadership, where employees are granted with the opportunity to carve ways for meeting their designated goals rather than being dictated the process of task completion (Daft, 2007). Recommendations The report presents the following recommendations for successfully addressing the problem. Promoting the adoption of a democratic style of leadership across company departments. Requesting managers to assign responsibilities to employees while, granting them with the complete opportunity to develop their individual methodologies for attaining the set objectives. Advancing the establishment of an environment where feedback is encouraged and appreciated. Providing periodic progress reports and engaging in problem solving to resolve immediate issues. Allowing the development of two-way communication networks across the firm. Developing a culture of innovation, creativity and inventiveness to successfully address the threat of competition. References Cascio, W., & Boudreau, J. W. (2010). Investing in people: Financial impact of human resource initiatives. Ft Press. Griffin, R. W. (2006). Student Achievement Series: Principles of Management. Cengage Learning. IBIS World (2014). Clothing Retailing in Australia: Market Research Report. March 2014. Accessed online at [26th May, 2014] Jackson, S. E., Schuler, R. S., & Werner, S. (2011). Managing human resources. Cengage Learning. Jang, J. (2008). The Impact of Career Motivation and Polychronicity on Job Satisfaction and Turnover Intention Among Hotel Industry Employees. ProQuest. Liebler, J. G., & McConnell, C. R. (2011). Management principles for health professionals. Jones & Bartlett Publishers. Phillips, A. (2002). Communication and the Managers Job. Radcliffe Publishing. Schermerhorn, J. R. (2005). Management. New York: J. Wiley. Read More