Leadership and Information at FridgeCom - Assignment Example

Table of Contents 1. Leadership 1.1 Introduction 1.2 Work Culture 1.3 Work Culture in FridgeCom 1.4 Marxian Alienation 1.5 Middle Management Observers of the System 1.6 Primary Problem: High Rate of Employee Turnover 1.7 Information Management 1.8 Summary 2. IS Solutions and the Human Element 2.1 Introduction 2.2 Data, Information, and the Need for the Human Element 2.3 The Importance of Creating a Corporate Values System and Culture 2.4 Combining IS with Corporate Culture for Solutions 2.5 Summary 1. Leadership 1.1 Introduction The first aspect of an organization that should be examined in understanding the way in which the different styles of leadership and potential behavioral responses have affected the formulation of the situation of company is to examine the way in which the system has been developed. The way the system develops is in direct relationship with the organizational culture that is built around the system. The way that people relate to each other in an environment will determine how they will respond to different circumstances. In looking at FridgeCom, the first way in determining the leadership styles and the potential behaviors will be in understanding the organizational culture and how the structure that has been erected around the organization affects interaction. 1.2 Work Culture There are certain aspects of an organizations work culture that will determine whether it is a weak culture or a strong culture. According to Treveno and Nelson (2010), culture is a set of learned beliefs, traditions and guidance that a group of people will use to unify (151). In creating a culture for an environment, a business is making a social statement about how they wish to be perceived. Some visual examples of this may be the corporation where everyone wears high end suits, despite the lack of a dress code. In this situation, cues have been taken from others within the organization in order to define how behavior should be demonstrated. In creating a system within the defined culture of an organization, the system will need to support the culture that has developed or been defined. As in the example of the corporate business where high end suits have become the norm, it would be expected for the people within the organization to use a sense of formality when doing business with each other and decorum within socialized work realms. In another type of situation, say a hair salon where black attire is a requirement to create a sense of edgy uniformity and the personal style of each individual is otherwise encouraged, the work culture may be less formal and have a different aesthetic to the way in which the employees relate to one another. Organizations are designed in order to control, segregate, exclude and construct hierarchies among the workers which can often create informal divisions along the lines of gender, race, and class (Martin and Jurik 2007, p. 41). Some of these divisions will lead to either weak or strong work cultures within the business. According to Treveno and Nelson (2010), a strong culture will have clearly defined guidelines which are shared throughout the organization in order to direct day to day behavior and operations. A weak work culture will have strong subcultures with different guidelines for each of the various subcultures within the group (p. 151). The first way to understand the strength of the leadership within FridgeCom is to examine the strength of the work culture that has developed within the organization. 1.3 Work Culture in FridgeCom One of the first aspects of the problems at FridgeCom can be understood through examining the way in which the cultures have been created within the company. There is a weak culture on informal levels as some members of management are out of touch with the people who work in labor. Veronica King, the head of HR within the Fridgecom company has a problem with her approach to her problems. According to Doug Statin, a team leader on the floor who can be characterized as a liaison between management and labour, as he is exposed to both sides of the equation, seems to believe that King does not see the employees as people, but rather as issues or problems that need to be solved (Castel and Raidon 2010). In addition, the labor pool was one time comprised of some illegal workers whose existence would suggest a differentiation between the legal and illegal workers, which allows for subculture sets to exist within the company. Therefore, under the terms of the description of a weak or strong work culture, the company suffers from disunity and subcultures with the head of HR responding to the workers as if they were not people, thus putting them into a separate category from management. 1.4 Marxian Alienation When looking at the way in which management and labor relate to one another, the alienation factor that was discussed by Karl Marx can be used to create a criteria assessment. The worry that Marx had about the way in which management related to the laborer was not in the exploitation of the worker, but in the idea that management did not have a concept of the exploitation of the worker. Exploitation is the earmark of labor, their efforts used towards an end and Marx understood this (Gines 2003, p. 231). However, the ownership, which can also be seen as management despite the fact that they are still workers within the system, does not always recognize people for their human condition. Therefore, alienation can occur which leads to dehumanization of the workers as it is being displayed in the perception that Statin has to the work that King is doing. Marx protested capitalism because of the social form of labour when the purpose of production is exchange (Gines 2003, p. 231). The workers become cogs in a system rather than human beings, thus their welfare become commoditized. This separation between the worker and the management team is evident between the perceptions of middle management in comparison to upper management. Middle management, as represented by Doug Statin and Terry Cole, are two important links that are contributing to the problems within the company. As they are between upper management and the workers, their perceptions are invaluable in connecting the two cultures and trying to find resolutions to problems. Unfortunately, neither have the required skills to effectively lead within the company, which may be in fact why they are in middle management positions. 1.5 Middle Management Observers of the System Both Cole and Statin can be seen as observers within the system, exposed to the realities of the problems within the company. Therefore, their insight is invaluable in assessing how the model of the system that is desired by upper management can become the reality. However, a lack of communication skills that is enhanced by poor perception of the social status of Cole means that his observations are not often taken seriously when they are communicated. According to Kushal, (2010) lacking communication skills will leave the perception that a manager is less competent, less capable of being promoted, and overall less qualified as a leader (p. 173). Statin’s observations, on the other hand, are taken quite seriously, but his observations are not empowered towards action, thus all he can do is report and hope that others see his point of view. However, Statin does play the role of the transformational leader as he has been successful in convincing Mike Wilson, the owner and CEO of the company, on actions that he saw as necessary despite his limitations of empowerment. A transformational leader is able to overcome over come limitations and compensate for organizational limitations in order to make change within a company (Storey 2010, p. 65). While the current problem is beyond his scope to repair, he anticipates that it will become his to fix when King has left the organization without successfully fixing their issues. 1.6 Primary Problem: High Rate of Employee Turnover The primary issue that is facing the company is that of a high level of turnover creating expenses and delays involved with training new staff and indoctrinating them into the company culture. King has determined that a great part of the problem is an IS problem in which overall control of the employees should be maintained in a centralized resource. She intends to change the personnel department into a human resources department, thus creating a stronger position from which to guide relations for the employees (Stair and Reynolds 2010, p. 417). However, the true nature of that relationship is designed in personal interaction; not in only creating IS solutions. Therefore, Cole does not see this is a viable solution and believes that more information technology that is not updated properly or is put together at a low budget will cause more headaches than it is worth. The desire to create an HR department is a step in the right direction for solving the problem of employee turnover. According to Aswathappa (2005), human resources management is responsible for helping the whole organization in the process of unifying hiring, firing, and training practices as well as managing employee benefits and payroll issues (p. 5). The development of the work force is centralized, creating a step towards unification of the work culture. While the intent of King to create a singular department is founded in strong theories on how to run a corporation, her solutions are all centered on how to more efficiently bring the information to her, rather than how to disseminate a unifying culture amongst the workers. 1.7 Information Management Impressed with her credentials, Wilson believes that King’s goals are in line with the needs of the company and sees beyond her immediate goals to a broader solution. In this sense, he is exhibiting the traits of a good leader. In managing a business, the information processes are important in making sure that a unified center is established from which all aspects of the business become focused towards the same goals. In creating a higher level of information systems for the company, Wilson sees the potential for increasing efficiency. As he sees beyond the scope of the problems that King has brought to his attention, he is enlisting the aid of two other academically impressive management personnel in order to create a report on the needs to upgrade the information systems within the company. The inability for upper management to pinpoint the problems that are causing high turnover rates is proof that information systems need to be upgraded so that analysis of the problems can be accomplished with decisive efficiency. However, this does not answer the central question; neither does it address the problem at hand. The problem of turnover and what is causing employees to leave their positions after a short employment can be answered with communication between the employees and the management team. While the change in the system and the attempts towards unifying the work culture through information will go a long way towards solving the problems, not consulting those who have hands on experience with the problems through their positions as middle management is a show of poor leadership. However, as Wilson sees the big picture and acknowledges that information systems will eventually create more control and centralized decision making, he is seeing the overall strategy of the company and how this type of solution will affect long term goals. He sees that knowledge management is the way in which to protect the interests of the company (Awad and Ghaziri 2007, p. 46). Knowledge management is defined as the rising of information from the initial origin up through to the top and the efficiency with which that knowledge is managed will determine, to a great extent, the success of the business (Christensen 2003, p. 7). According to Christensen (2003), “Knowledge form describes the way in which knowledge is expressed and stems from the type of knowledge in question and also has consequences for the way in which knowledge exists and how knowledge can be managed and controlled” (p. 39). Wilson has been convinced by the skills with which King has expressed the problems of the company towards creating solutions. 1.8 Summary Overall, Wilson represents a strong leader who sees the company problems from the vantage point of larger goals rather than from the point of view of putting out smaller fires. However, the way in which the culture has developed has created a weakened leadership up to the current point of time. While Statin’s leadership skills are based on experience within the current system, his weakness stems from an inability to act in combination with short-sighted assessment of the situation. However, he is also not wrong in seeing the flaws in the approach that King has taken in line with the Marxian complaint about the capitalist alienation between management and the worker. The lack of vision that Statin has shown is grounded in the lack of understanding the goal of information systems to create an upward flow of information so that the needs of the workers can be met by leadership, as well as the support of the company through the identification of problems early in their inception. Where Statin represents shortsightedness, Wilson is seeing the larger picture towards the future. 2. IS Solutions and the Human Element 2.1 Introduction According to Terry Cole, “The problems facing FridgeCom are purely technical; wasting time on ‘people issues’ just complicates our job as IS developers.” (Castel and Raidon 2010). This statement simplifies the issues and reduces the human labour element to a purely functional part of the business without which the strategies that are developed will be flawed as the multiple needs are not addressed. According to Weiss (2006), information consumes the attention of the recipient. Therefore “A wealth of information creates a poverty of attention” (p. 1005). The issues of labor are defined most often by the need to be heard. Taking focus completely off of the human element will increase the labor relation problems and negate the efforts that are being made toward creating good information systems. The central problem at FridgeCom is that there is an issue that is creating a high rate of turnover. That issue resides within the human sphere and must be addressed through dealing directly with those issues. The IS situation will enhance the ability of the business to respond quickly to issues that are centered on the high turnover, but neglecting the human portion of the problem will create an imbalance in the way that the company is handling the issue. This is not to suggest that an improved information system isn’t going to provide the company with a great deal of information from which to make decisions. According to Secord (2003), payroll and data information systems provide the resources necessary to analyze employee turnover. Creating an understanding of the industry and labour demands are also essential in developing the analysis. When there is a high number of positions available within an industry, turnover rates will increase through competition, while when jobs are scarce, people will be less likely to leave their positions (p. 198). 2.2 Data, Information, and the Need for the Human Element The primary reason that IS is not the only avenue in which to seek answers to the problems of the corporation can be seen through an understanding between data and information. Data is not truly information until it is gathered, organized, processed, analyzed, and delivered. The data does not give any true knowledge until it has been made relevant to the issue for which it is being collected (Samli 1996, p. 44). Therefore, the truth about information is that it is related to the human side of knowledge. Without being able to relate the data, the information has no purpose. Therefore, in creating IS without addressing the human issues, the data becomes a disconnected entity without any true function within reality. According to Dervin’s model of knowledge there are four basic elements of creating knowledge. The first is the situation which defines the context and next the cognitive gap which is the difference between the contextual situation and the desired situation. The third is the outcome, with the fourth and final element being the cognitive bridge which spanned the gap between context and outcome (Detlor 2004, p. 16). Each of these steps in the understanding of knowledge depends on perception by through the human experience. The human element develops the parameters in which the needs of the IS can be established. The IT of the system will provide the way in which the data can be delivered, but the IS will determine which data must be delivered in order to develop good information. Without addressing which issues need to be examined through that system, the entire process is moot. 2.3 The Importance of Creating a Corporate Values System and Culture Cameron and Quinn (2006) discuss the success of several organizations in regard to Porter’s Five Forces. It is suggested that American companies such as Wal-Mart, Tyson Foods, Circuit City, and Southwest Airlines have all succeeded beyond the capacity of most corporations through strong showings in Porter’s Five Forces. Those forces are supplier power, threat of substitutes, barriers to entry, buyer power, and rivalry. However, the success of these organizations can be traced back to one defining element that they all have in common. Each of these organizations has strong, distinctive corporate cultures. It is the values of these companies that have been the common denominator in creating success in industries that are hard won (p. 4). According to Cameron and Quinn (2006), there are four basic culture types in business. The hierarchy culture is designed through levels of status, each level increasing upward in power (p. 37). Cameron and Quinn (2006) state that “The organizational culture compatible with this form is characterized by a formulized and structured place to work” (p. 38). The shareholder model of corporate governance also supports this type of work culture. The problem with this type of structure is that each level is striving towards supporting the needs of themselves, rather than having an overall stakeholder model of corporate governance in which the good of all stakeholders is taken into consideration. The shareholder model promotes only the welfare of owner’s interests, thus creating a lack of loyalty from those on the control side of the equation and propagating an ‘every man for himself’ sense of the work culture. Budd (2006) has said that employee relationships under the shareholder value model creates a preoccupation with short-term financial goals and will deny a meaningful participation by employees or unions in the decision making process, thus negating their stake in the results of business activities (p. 94). Therefore, creating a structure that is based on a hierarchy will more than likely create a structure that is focused on short-term goals rather than long term goals. This structure is most likely indicated in the FridgeCom, the company designed to limit its scope to focusing on the interests of the owners. In creating information systems that will feed information up to management in order to create overall knowledge that can decrease employee turnover is a step towards taking the interests of all stakeholders into consideration when making decisions. However, if the organization becomes designed around market culture, the business will be designed with its focus solely on productivity, results, and profits (Cameron and Quinn 2006, p. 40). While this form still supports the shareholder model of governance, the focus on productivity can put the needs of employees into focus when turnover costs more than providing better benefits and incentives. Clan type organization is defined by a family atmosphere where people share much of themselves with the company. The company benefits from the loyalty that is generated and can often offer less in terms of compensation in exchange for the comfort and security that this type of culture will provide. Success is determined, through this type of culture, through the nature of the internal climate and the fulfillment of those involved. The fourth type of work culture is the adhocracy culture. This culture is designed for post-modern industries that have the need for highly innovative work product with quick adaptation to new opportunities. The power flows from person to person or team to team, no real leadership structure in place. This is best suited for industries with high expected turn-over such as the film industry, software development, and the aerospace industry (Cameron and Quinn 2006, p. 43). 2.4 Combining IS with Corporate Culture for Solutions In understanding the nature of these cultures and their importance in success, the concept that Cole has presented is short-sighted and without an overall understanding of how data that is obtained from the IT is determined through IS and into what form it will be needed in order to make meaningful assessments. Where information solutions are important in facilitating the success of the business and in creating internalized cohesion as information is quickly and easily attained for analysis, it is the corporate culture which will more closely define the success of the business, creating purpose behind the need for data collection and information assessment. What Cole suggests creates a gap between the calculation of information and the understanding of the experiences that the information reflects. The company has developed a weak work culture with subcultures that have differing rules and social guidelines in which to rule behavior. Although creating an information system will provide a great deal of unification, it is not the sole course that must be taken in creating a workable solution to the problem that is occurring within the company. According to Mutch (2008), while a corporate culture does not have to share the same sets of ideas and beliefs, they do have to share the same sets of practices that are guided through mutually understood goals. The relationship of the outside world to the internal culture is the shared unifying experience in which the directed activity will produce results (p. 207). In working toward solving the human issues within the company, FridgeCom must look to their manifestations of culture in order to create an organization that is unified in the goals that they share. Rather than the IS having the primary importance, it is secondary and should work towards facilitating these goals. IS, supported by innovative IT, is important in creating post-modern operations in which so that different departments can be linked in order to create overall understanding about how the activities of one department will affect those of another. Development of IS will mean that input, transformation and output activities can be linked in order to create efficiency. This can be extended to include external resources as well as the internal resources (Boddy and Kennedy 2005, p. 7). As King has proposed, the IS will also streamline and develop human resource operations so that the department will have a higher function in centralized employee relations. This will facilitate the hiring and training activities in order to support the overall development of a corporate culture. However, the most important consideration of the business in creating positive change is still within addressing the development of the work culture. As leadership works towards resolving their biggest current issue which is the high rate of turnover, the development of a culture in which common goals can be spread throughout the company will help to build loyalty so that turnover will decrease. As well, using the IS for data collection so that human resource management personnel can assess the issues within training and employee continued satisfaction will be helpful in resolving this important problem that is draining resources and slowing production. 2.5 Summary The irony of the problems within the company in regard to IS is that Terry Cole does not feel like he can contribute what he thinks about the problems, despite his central position in helping to create the solution. While his statement might reflect falsely the nature of the problems, his input is essential in creating an overall understanding in relationship to the changes that the company intends to make. This human issue needs to be addressed and resolved in order for the success of a system of information to take place. As well, Doug Statin needs to address the issues that have arisen in the relationships between management and the workers that have been adversely affected by the actions of King during her time in her position. Without communicating the realities that middle management is observing and having those human issues addressed, upper management will most likely not successfully transition the company to a unified IS solution. The core problem within the FridgeCom Company is that it has not developed a unified vision under which to unite the whole company. Without creating a values system that will create a focused work culture, the subcultures can tear the fabric of the business, thus making it far less efficient and less likely to retain employees. While leadership sees a goal in which to help solve these problems, the use of IS to support the flow of information must be supported by strategies in which the human element is considered and the issues addressed. As well, the lack of input of middle management must be resolved so that the links between upper management and the work force are repaired. Because Cole and Statin are not fully communicating to their superiors, the loss of information is creating a void through which profit can escape through losses in training costs and employee gaps between hires (McGovern and Shelly 2008, p. 94). References Aswathappa, K. 2005. Human resource and personnel management: text and cases. New Delhi: Tata McGraw-Hill. Awad, Elias M., and Hassan M. Ghaziri. 2007. Knowledge management. Delhi: Dorling Kindersley, licensees of Pearson Education in South Asia. Boddy, D; Boonstra, A. & Kennedy, G., 2005. "Extract from 'Information Systems and Organizations'“ from Boddy, D; Boonstra, A. & Kennedy, G., Managing Information Systems: An Organizational Perspective pp.6-23, Harlow: Pearson Education Ltd Budd, John W. 2006. Employment with a human face: balancing efficiency, equity, and voice. 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