Coal Black Risk Management and Leadership Style - Case Study Example

Contents Background about the company 2 Risk Management 2 Leadership Style 3 Employer Motivation 4 Social & Environment Issues 5 Organization Ethics & Culture 6 Management of Conflict 7 Resistance to Change 7 Exercise the power and politics and implication of leadership style 8 Use of teams 8 Executive Training & Succession 9 References 10 Background about the company Coal Black is a company which is located in Australia and is into mining business. Coal Black has been supplying coal and has large reserves of coal which will serve the country for years. Coal Black is also the largest employer in the district and has been making profits which had made it possible for the company to grow. The company has been recently facing obstacles from the society, environmentalist, conservative, and other groups. Coal Black needs to look towards a strategy which will help to reduce the tension and make it possible for the company to continue operations. The report now looks into the different aspect related to Coal Black from different areas which will help to improve the operations of the company. Risk Management Coal Black needs to have strategies in place which will help to manage risk properly. Coal Black faces risk from the society as it is contaminating the water and environment. For this Coal Black needs to ensure that that the harmful chemicals released while mining are purified to the maximum extent possible. Also steps are taken to ensure that employees who mine have equipments like oxygen caps, gloves and other important substance so that the risk associated with the chemicals reduces. The other aspect that needs to be looked into is ensuring that species are not harmed and even the archaeologist are allowed to gather all information which will ensure that the future working of Coal Black is not hampered. For this Coal Black needs to ensure that while mining the organization consults the archaeologist and the people guarding species so that steps mining is carried out accordingly so that right to life is allowed even to animals. This will ensure that the future working is not affected and Coal Black is able to grow. Leadership Style Leadership is an important aspect of every business and ensures that the leader brings the best out of employees. Leaders have the ability to guide people towards common goal and ensure maximum return for the company. When we look at the CEO of Coal Black we see that he was charismatic as “he was enthusiastic and self confident”. (Jacob, 2008) This can be seen from the fact that he was able to get the job done. This created enemies as he used to take the steps that would allow the work to be done but was not in the correct manner by exerting pressure on the employees. The overall qualities and styles demonstrate that the CEO followed the Fielder model. This is on the backdrop of using all powers i.e. “legitimate power, informative power, personal power, referent power and expert power”. (Jacob, 2008) To ensure that Coal Black ensures proper execution of task it is important to define the mission and vision statement. Coal Black mission is to improve its corporate image by bringing changes in leadership pattern and improving the environment. The vision is to ensure that the company stands out as one which looks after the environment and helps people to generate employment. The strategic objectives that Coal Black needs to have to accomplish it are to ensure that the company set a objective of reducing pollution level, improving the quality of life of employees and bringing a change in leadership style. Coal Black needs to ensure that they are able to deliver services through proper leadership by ensuing that the leader is friendly and liked within the employees. It is also important that Coal Black lays stress on the process to achieve the goals as this will bring harmony and build long term relationship. Employer Motivation Motivation holds a very important place in every organization. Organisation motivates their employees to get the best out of them. Different individuals have different ways to get motivated. Organisation needs to find out this drives and work towards those to achieve best results. Thus, motivation is a continuous process. Coal Black should look towards the following ways to improve employees motivation and ensure that the work in carried out well Coal Black should ensure proper safety equipments and measures so that employees working on the sites feel safe which will motivate them Coal Black should look to bring transparency and equity in the compensation process by having external bodies which decide the compensation according to the work and see that it confirms to labour polices and norms of the unions. Coal Black should ensure proper working environment by having drilling machines, glasses, oxygen masks and other equipments that facilitates mining and helps to motivate employees. Thus, we can say that Coal Black needs to make use of an employee’s intensity in the right direction to achieve the goals. This should be a continuous process as an employee who is motivated remains for a long time with the organisation. (Robbins, Judge, Millet, Waters-Marsh, 2008) This will enable Coal Black to be able to develop and ensure that employees are motivated Social & Environment Issues Coal Black faces both the social and environmental issues and needs to take steps to improve it and ensure proper working environment. Social Issues Coal Black needs to ensure that it continues to provide employment to the local residents. To ensure proper delivery of services the local residents should be trained both on and off the site. Coal Black also needs to ensure safety aid facilities at the site, equipments like drilling machines, hammer, oxygen mask and other equipments which help to ensure that the society is looked after. Environment Issues Coal Black needs to look out towards the environment to ensure “reduction in global warming, reducing contamination in water, and ensure that species are protected”. (Immelt, 2007) Coal Black needs to have a mechanism which ensures that the environment and the society are cared after. Coal Black here should ensure that the harmful gases released in the environment and water is reduced by having a process which reduces the harmful chemicals and prevents human life. Organization Ethics & Culture Organizational Ethics Coal Black needs to be more ethical and ensure that steps are taken which helps to improve the corporate image. Coal Black “needs to have agents who will work on behalf of the principal owner i.e. the shareholders and will be given certain incentive for it.” (Nicholson, 1998) For this Coal Black should ensure that employees are provided with the best drilling equipments. Safety equipments and first aid boxes are in place at various locations. Steps are taken to reduce contamination of water by purifying the harmful gases being released. This will make the organization look ethical and build a long relation with the stakeholders. Organizational Culture The organizational culture at Coal Black shows that the employees have to get the work done by taking every possible step for it. This is making Coal Black put lot of pressure and even look towards ways of accomplishing it. Coal Black needs to ensure that a culture is developed where employees, society and stakeholders are looked after as it will help in the long run. Coal Black can here look to provide employees regular feedbacks about the work and conduct training for them on a regular basis so that the work is better accomplished. Management of Conflict Coal Black needs to manage conflicts which will ensure that the needs of the employees and people are met. This will help to ensure that Coal Black is able to maintain relation between employees, customers, stakeholders and others who are related to the company. Coal Black needs to take steps which creates a win-win style reflects a desire to satisfy for both parties. For this Coal Black needs to ensure that the management understand the problem of each employee singly and solves their problems. The management should set up a committee which addresses the problems associated with the employees and ensure that the problem gets sorted out. This will help the employees to ensure that they are able to create a situation which will help Coal Black to manage the conflicts. Resistance to Change Organizational change is an important aspect of business dealing which helps to keep with the evolving times. It is seen that employees on an individual basis are ready to change but when organization try to themselves on the whole it encounters huge problems which calls for measures to ensure that change is implemented successfully. (Weiner, 2009) Coal Black needs to ensure that they change and bring the necessary changes which will help to improve the environment. Coal Black needs to ensure that the employees are provided with the latest equipments which matches the latest development in technology. The company should also look towards having a purification process in place which helps to reduce contamination in the environment and water. Exercise the power and politics and implication of leadership style The leadership style of the CEO demonstrates that he uses power to influence the employees and ensure that Coal Black is able to accomplish the task in hand. Using the influential nature of working by the CEO has ensured a traditional mechanism which uses the authoritarian style. The CEO needs to take the following steps to bring a change in power management and ensure that there is growth in Coal Black. Coal Black should look towards a way where it is able to transform the manner in which work was conducted by making employees understand the goals. The CEO should look towards providing the best of technology and safety facilities so that employees feel part of the organization and the organization is able to change. Use of teams Coal Black needs to ensure that the leader is able to create teams within the organization which will help to ensure that the work is accomplished and help to improve the efficiency. Teams can be of different types depending on the basis of the requirement of the organisation. Coal Black can look towards a team which looks into safety measures, one which looks into training and development and one which looks after the environment. The leader should ensure that all team members are given equal importance and heard. This will ensure that all the departments are cared after and will result in better decisions as there will be specialization by the different teams in their direction of work. Executive Training & Succession Coal Black needs to ensure that they have a process in place which allows training and promotion of employees for more respectable positions. Coal Black should conduct regular feedback and areas where employees need to work upon to ensure proper execution of duties. Coal Black needs to ensure the following to bring about a change by providing the necessary training for employees. Have both on and off the job training which improves the employees productivity. This should be increased as changing technology brings new equipments so employees should be taught the manner they will use the equipments. References Immelt J, 2007, “New corporate Citizenship report to prevent environment”, Ethics World, US Jacob M, (2008), “Locke’s Goal Setting Theory”, Understanding SMART Goal setting, Mind Tools Ltd Nicholson M, (1998), “Applying Agency Theory and the concept of corporate governance”, http://www.lotsofessays.com/viewpaper/1706098.html (Accessed November 12, 2010) Robbins, Judge, Millet, Waters-Marsh T, (2008), “Organisational Behaviour”, 5th Edition, Pearson Education Weiner B, (2009), “A theory of organizational readiness for change”, Volume 23, issue 3, available at http://www.implementationscience.com/content/4/1/67 (Accessed on November 12, 2010) Read More