Functions and Responsibilities of Top, Middle and First-Line Managers - Coursework Example

Functions and Responsibilities of Top, Middle and First-Line Managers [Name of the Student] [Name of the University] Functions and Responsibilities of Top, Middle and First-Line Managers Introduction Multinational corporations (MNCs) are managed as integrated and worldwide business systems. Consequently, the foreign affiliates act in cooperation and close alliance with each other. In addition, capital, people and technology are transferred amongst the country affiliates. Moreover, MNCs can acquire materials and manufacture parts, in regions that provide the maximum advantage. As such, MNCs are actually controlled by a single management authority. The latter takes the principal strategic decisions pertaining to the parent and all the affiliates. Despite some headquarters being bi-national, some amount of centralisation of management is essential for ensuring worldwide integration and profit maximisation[Daf10]. Cultural intelligence (CQ) consists of cognitive, emotional, and physical elements that function in conjunction with each other. The cognitive element of CQ entails the learning and observational skills of an individual, and the capacity to identify indicators to understanding. Moreover, the emotional feature of CQ relates to the self-motivation and self-confidence of a person[Daf10]. As such, a manger has to believe in his ability to assimilate into and understand a different culture. Furthermore, difficulties and setbacks are stimuli for working harder and do not constitute a reason for forsaking the task on hand. Considerable stress is associated with working in a foreign environment, and the majority of the managers posted abroad envisage homesickness, loneliness, and cultural shock, due to their being suddenly placed in a culture that has totally different languages, food, beliefs, values, and manner of doing things[Daf10]. BHP Billiton- Australia BHP Billiton, a successful organisation in Australia, has claimed that its strategy was to own and operate massive, low cost, enduring, expandable, upstream assets that had been modified by location, market and commodity. This strategy had been in place from more than ten years, and it had enabled that company to achieve higher margins throughout the duration of the economic and commodity lifecycles for several years. Strictly speaking, its diversified, low cost, tier one asset base had improved the flexibility of its cash flow by diminishing exposure to any single commodity or currency. This had endowed it with a financial performance that was more predictable and robust. As a consequence, BHP Billiton had been investing in and improving its business throughout the different economic cycles[BHP15]. This in turn had provided its shareholders with better quality long term value. BHP Billiton had been contributing and developing communities, economies and industry, across the world, for a century and a half. Billiton’s initial beginnings were in 1860, where it commenced operations in a tin mine on an Indonesian island. On the other hand, BHP began in a lead, silver and zinc mine in Broken Hill, Australia. In the year 2001, BHP Limited and Billiton Plc merged with each other and the new entity was named BHP Billiton. The head offices of these companies were located in Melbourne and London, respectively. All the same, these organisations exist as distinct companies, albeit they operated in a combined manner as BHP Billiton[Aus1412]. Human Resource Policies and Culture A firm with a history and several years of operation generates its own culture that consists of widely shared fundamental presumptions, beliefs and values. These exert a powerful influence upon operations and activities. Several of these beliefs and assumptions are implicit and are treated as being axiomatic by the members of that firm[Fit12]. In addition, the policies related to human resources can exert a definite influence on a firm’s culture. Moreover, organisational performance is affected by culture and this effect can be either negative or positive. Consequently, strategic managers have to strive to manage the culture of their firm to the best of their ability. A culture that is robust can prove to be an inhibitor of change; however, it can supplant supervisory activity and represent a powerful mode of control[Fit12]. In fact, several firms have attempted to replace formal control with cultural control. In such instances, the employees share a common culture that allies their interests with the interests of the firm. Specifically, knowledge workers tend to be at home in such environments. At present, there are several senior corporate managers, who discuss cultural values, such as innovation, high ethical standards, and transparency and lay considerable emphasis upon performance. In several instances it has been observed that the informal culture of the firm proves to be inimical to these values[Fit12]. Moreover, human resource policies have been seen to act as inhibitors of the values being promoted by the senior management. Leadership Model The Leadership Model describes the attributes sought for by a company in its leaders. It constitutes the basis upon which a company develops and rewards its personnel. With respect to BHP Billiton, this company mandates that its leaders have to visibly render themselves and others accountable for adhering to the company values that are enumerated in the Charter. As a consequence, safety has to be of paramount concern, personnel have to be made a priority, and the workforce has to function in an exemplary manner and carry out their tasks with discipline[Aus1413]. The leadership styles promoted, aim to extract the best in others. This is achieved via methods that transcend self-interest, engage individuals at the personal level, contest presumptions and motivate people. The BHP Billiton Way is exemplified in the Foundations for Graduates programme. This organisation intends to develop leadership skills in graduates, and to provide them with people skills and communication skills, whilst making available a forum for developing networks of peers[Aus1413]. Roles of Top Managers In general, the top managers of MNCs are expected to exercise a global perspective. Such managers tend to view the entire planet as one market for taking strategic decisions, resource acquisition, location of the production facility, and advertising and market efficiency. However, the MNC management philosophy could be different in some cases. For instance, certain ethnocentric organisations had been identified by some researchers[Daf10]. Consequently, managers operating in foreign nations have to study the language of such nations. Moreover, they have to acquire considerable information regarding local beliefs, customs, norms, and prohibitions. All the same, such information, by itself, cannot equip the manager to address every possible situation. As such, developing a high level of cultural intelligence empowers an individual to interpret unfamiliar situations and to adapt rapidly to them. CQ constitutes a pragmatic learning mechanism that permits a person to discern information regarding the shared understandings of a culture and to respond to novel situations in culturally suitable ways[Daf10]. For instance, Andrew Mackenzie, the chief executive officer of BHP Billiton, had declared that a committed group of Australians were lending their unstinting support to that company’s production plans. This strategy echoed that nation’s promotion of free markets. He opposed suggestions that BHP and Rio Tinto, the other major iron ore producer of Pilbara were facing defeat in the public relations battle against the higher-cost miners, such as Fortescue Metals Group[Che15]. Role of Middle Managers The avowed objective of BHP Billiton is to increase and develop its diversified portfolio of tier one assets, in order to address the changing requirements of its customers. The products of this company induce contemporary growth, as well as the growth of the future. Its portfolio of growth options stands second to none in the world, and is expected to permit it to continue to generate value for its shareholders[BHP15]. In order to ensure its continued success, BHP Billiton formulated a novel method of working and sharing information. This process induces superlative performance and represents its values. BHP Billiton updates and optimises its working practices continually, and this has enabled it to retain its leading position. The operations of this company are endowed with integrity[Aus1414]. In addition, it takes the correct decisions and works in an ethical manner. Significantly, commitment to health and safety of its personnel, the environment and the communities in which it operates, are of paramount importance for this company. BHP Billiton has always regarded its employees as its most valued asset. It is the aim of this company to employ the best graduates who have the maximum likelihood of developing into its future leaders[Aus1414]. Role of First Line Managers There are several responsibilities, which should be undertaken by managers, according to the Code of Business Conduct in BHP Billiton. These responsibilities are enumerated below. As such, a manager or supervisor at the BHP Billiton has the additional duty of care to comprehend his responsibilities in dealing with Code of Business Conduct issues. Moreover, individuals who supervise others have to possess the following traits. First, consistently demonstrating exemplary conduct. Second, fostering an inclusive culture, wherein employees comprehend their responsibilities, feel comfortable and supported, so that they can highlight lacunae without the risk of retaliation. Third, encouraging and rewarding employees for illustrating Our Charter values. Four, ensuring GLDs, norms and procedures are understood and accessible. Fifth, embedding the Code into the extant processes, such as employment and supply contract, induction and industrial agreements. Sixth, assisting employees to understand the practical applications of the Code. Seventh, recommending or taking the necessary action to deal with issues related to business conduct. Eight, always attending to concerns that are raised[BHP14]. Nine, according respect to the cultures and differing business customs of the nations and communities, in which the company operates, as long as they do not infringe the law of the Code. Ten, making a serious attempt to identify and address the expectations and concerns of all stakeholders, with special regard for those most affected by the operations of the company, and incorporate their views whilst taking decisions. Eleventh, undertaking a thorough investigation of the concerns and complaints and report the results to the relevant stakeholders[BHP14]. Approach to Indigenous Communities In addition, several of BHP Billiton’s businesses conduct activities that are proximate to or upon indigenous lands. These operations accord respect to the indigenous peoples and generate mutually beneficial relationships with them. In addition, they provide opportunities to these people for advancement and inclusion. The employees of this company are provided with cross cultural training; opportunities for participating in cultural events are promoted; indigenous cultural protocols and heritage are respected; and support is provided for education, training, business development and employment. In addition, this company makes a serious attempt to identify the individuals who are connected to the land and use it. This exercise is undertaken with a view to have in place, an efficient community engagement and consultation programme[BHP151]. As such, BHP Billiton develops community investment programmes that are proactive towards the requirements of the indigenous people and situations. This is carried out in an ethical manner that acknowledges the traditional rights and values, and accords the highest respect for cultural heritage. The personnel of the company are provided with specific training and employment programmes. Moreover, it supports the development of indigenously owned businesses. Furthermore, scholarships are made available, in addition to a vast array of training and educational opportunities. As such, this company invests in projects that promote socio-economic and cultural wellbeing, thereby ensuring a better quality of life[BHP151]. In addition, BHP Billiton extracts and processes oil, minerals and gas from its production operations that are chiefly confined to Australia and the American continent. The products of this company are sold across the world, and the primary centres for sales and marketing are located in Singapore and Houston. This company had around 80,000 employees and contractors, as of 30 June 2015. Moreover, during the financial year 2015, this company formed a new company, named South, by demerging some of its alumina, aluminium, coal, lead, manganese, nickel, silver and zinc assets[BHP152]. Furthermore, this company regards the health and safety of its personnel to be crucial for its success. In addition, it accords the very same importance towards the health and safety of the communities, in which its operations are conducted. Moreover, a serious endeavour is undertaken to ensure that an environment that is free of injury, fatality or occupational illness is created, irrespective of the location of its personnel, the work that the carry out, and the nature of their work[BHP152]. Moreover, there are several important concepts of leadership that aid the success of the organisation. These principles are enumerated below with their applicability to the success of BHP Billiton. Principle 1: Alignment This principle, at its most ideal level, reflects the following. First, alignment of employee behaviour with a group of explicit company values. Second, alignment of the mind set of employees with the declared strategic goals of the company, which is frequently referred to as the strategic intent of the firm[Sam99]. For example, the BHP Billiton Charter values of Sustainability, Integrity, Respect, Performance, Simplicity and Accountability are the guiding spirit for the strategic implementations undertaken by this company. This applies to every stage of the commodity and economic cycle. It is the unswerving goal of this company to ensure the safety of its personnel, and to accord respect to the environment and the communities in which it conducts its operations. This commitment towards these values affects every feature of the company’s strategy[BHP152]. In addition, the Charter of this company mirrors this commitment, especially in the values of performance, which translates to obtaining superlative business outcomes by employing its competences to the utmost; and in the values of simplicity, which lays a strong emphasis upon its efforts related to the issues that are most important. BHP Billiton has demonstrated that it achieves success when its personnel commence each day with a distinct sense of purpose and end the day with a sense of accomplishment; when customers, communities and suppliers attach great significance to their association with it; the company’s asset portfolio is sustainably developed and is one of the best in the world; its operational discipline and financial robustness translates into future growth; and when its shareholders are provided with a superior return on their investment[BHP152]. Principle 2: Distributed Leadership The daily operations of the larger companies are seldom supervised by their senior managers. The accountability and responsibility for such tasks is delegated to individuals and work teams. These entities have been provided with enhanced decision making authority, within certain boundaries of control. As such, the senior managers do not manage the short term affairs of the company and instead concentrate upon generating opportunities for the development, growth, and resourcing related to the medium and long term issues[Sam99]. In this manner, the senior managers have assumed the function of strategists and agents of change. It was acknowledged by BHP Billiton that its success was dependent upon a workforce that upheld its values, as well as the communities in which it operated. This company had made it explicit that it would endeavour to recruit employees from the host communities, and thereby induce the high calibre individuals to take up employment with it. BHP Billiton had expressed its commitment towards developing the skills and capability of its employees, as this in conjunction with its tier one resource base served to distinguish it from its competitors[BHP15]. Principle 3: Integration of Effort The leading companies have successfully widened the ambit and scope of the mind set of their employees. In addition to their objectives, performance and responsibility. In this context, it becomes relevant to point out that functional barriers and parochial mind sets have been reduced to a minimum and supplanted by a spirit of cooperation and unity of purpose. Such change is ably buttressed by a superior degree of interaction and interdependency between teams and employees. In addition, firms are frequently restructured to have a value chain and process focus from a functional hierarchy[Sam99]. Principle 4: ‘Out Front’ The term ‘out front’ denotes leading customer requirements, environmental policy and practice, instead of merely providing a response to regulations. It also connotes leading industry standards, leading in the development of supplier partnerships, leading in quality and responsiveness to customer demands, leading in product design and features, and leading in the management of technology. In fact, leaders tend to utilise information technology to a major extent, and this enables them to act at the international level, in addition to making them appear to be global[Sam99]. It is evident that leaders develop international networks, comprehend the holistic image of international business and standardise their operations on the basis of an international yardstick. These individuals are proactive and frequently employ their position of a leader in an industry to promote the interests of their firm. They achieve this by applying industrial norms and practices at a level that cannot be achieved by their competitors, or which their competitors find extremely difficult to imitate. Thus, the possession of the ‘out front’ quality furnishes leaders with the advantages of image and brand value[Sam99]. Similarly, BHP Billiton, followed the international yardsticks in conducting their business operations through international networks. Principle 5: ‘Up front’ The term ‘up front’ denotes the quality of being honest, open and conducting operations with integrity in all the areas. It is the hallmark of the leading firms that they do not assure customers of what they cannot provide. Whenever, such firms are uncertain about their ability to comply with a customer’s request, they inform that customer about their position and provide the reasons behind their inability. In addition, the managers of ‘up front’ companies do not mislead their employees and encourage the latter to convey the truth to them at all times[Sam99]. In addition, the managers of ‘up front’ companies like BHP Billiton do not mislead their employees and encourage the latter to convey the truth to them at all times Principle 6: Resourcing the Medium Term The superlative organisations, whilst adopting the concept of ‘lean and mean’, do not reduce staff strength to the extent that it impairs their development. In comparison to the ordinary firms, much greater attention is devoted towards the long term health of the company, instead of just the short term wealth of the shareholders. [Sam99]. The senior executives of these companies, such as BHP Billiton, possess the vision and fortitude to describe to analysts and shareholders the procedure for improving the future, and their expertise is not limited to optimising the current profits Principle 7: Time Based The leading organisations regard time as a critical element and as a group of measures, including the order to delivery time, product development time or precision. A persistent effort is made by these organisations to curtail time, which is akin to the efforts of several organisations in the 1980s to enhance quality[Sam99]. In addition, concentrating upon reducing time obliges these firms to incorporate outstanding cost, flexibility and quality. In the event of the quality being inadequate, due to the process not being subject to proper control, it becomes an impossibility to manage and reduce cycle times efficiently. As a consequence, emphasis on the compression and management of time requires the organisation to have previously implemented quality improvement process management[Sam99]. For example, popular organisations, such as BHP Billiton strive to improve the quality of the management by applying the above measures. Principle 8: Bias for Action The foremost organisations have proved to be experts at executing ideas and strategy, in addition to being experts in formulating them. Such companies acknowledge that certain issues demand consultation, whereas others demand action, and in this manner have not limited themselves to undertaking consultations all the time. As such, these organisations have developed the capacity to manage change and have adopted the practice of regarding project management disciplines as crucial capabilities[Sam99]. BHP Billiton can be considered as one of the few successful organisations that can adapt change management in a stress-free manner. Principle 9: Learning Focus The employees of a firm should engage in learning as a continuous process, as this is critically important for its wellbeing. The urge to engage in such learning arises from dissatisfaction with processes and performance and the realisation that better knowledge produces betters processes and performance. It is well worth noting that the employees of the foremost organisations engage in the active transfer of knowledge to others[Sam99]. Such employees do not feel diffident by such transfer of knowledge and are convinced that it promotes and preserves the prosperity of their organisation. Principle 10: Discipline The firms adopting best practices do not empower their workforce and then permit them to behave as they please. Such practice, besides being illogical, would culminate in anarchy. Discipline denotes exemplary standardisation of work processes, structured working at the workplace and unfailing commitment towards carrying out tasks in the correct manner and with consistency[Sam99]. BHP Billiton could achieve such outstanding success by adopting disciplinary measures in all spheres of their working. Principle 11: Measurement/Reporting and Publication The companies adopting best practices measure a vast array of financial and non-financial parameters. These firms recognise the fact that corporate value potential is largely hidden. Thus, the financial information represents a mere tenth of the actual state of affairs. The rest of the features include the operational, organisational and technological systems that do not lend themselves to direct observation in the accounts of the company. These aspects of the company have to be measured, assessed and actively managed[Sam99]. The measures adopted, in this regard, by the leading companies, such as BHP Billiton pertain to business goals and strategy, positioning, operational and organisational goals, and external stakeholders. Principle 12: Customer Value The leading companies do not rest content upon discerning the needs of their customers. In fact, such firms endeavour to maximise customer value via their organisational activities. Thus, they create new customer demands; forecast variations in the needs of their customers, prior to their actual occurrence; identify the unarticulated requirements of customers; and leave no stone unturned in the pursuit of serving the previously unserved customers. Such companies, have the capacity to clearly contemplate future opportunities and to express the value propositions that place emphasis upon the provision of outstanding levels of cost effectiveness to customers. This is possible, only when these companies can clearly comprehend why customers purchase from them instead of from their competitors [Sam99]. As a result, these firms make extraordinary efforts to remain proximate to the customer and to have in place excellent customer relationships. Principle 13: Capabilities Creation It is essential for a company to invest in its primary capabilities, as this enables it to achieve, sustain and concentrate on the creation of value for customers and to develop its business. Such capabilities are enunciated clearly, communicated widely, accorded superlative value and deemed to be sacrosanct. As such, the principle of capabilities creation provides direct support to the principle of driving customer value. This is on account of the fact that internal capabilities facilitate the creation of superior order winners that attract and satisfy customers. Moreover, the principle of driving customer value regards the relationship betwixt the organisational boundary and the customer[Sam99]. The principle of capabilities considers the association between the internal operating environment and the organisational boundary. Principle 14: Micro to Macro A major feature of the leading companies is that every member of their workforce comprehends the association between his team based or individual work effort and the overall success of the company. In other words, a common platform of understanding exists between the management and the workforce. This has the outcome of ensuring a close interlinking between the micro and macro activities. At the activity level, such association between the micro and the macro is portrayed as an intimate connection between the critical business processes and the central work processes. This has the result of rendering the activities of the workforce and the management consistent and effectively integrated[Sam99]. Similarly, the success of BHP Billiton can be attributed to its group of organised consistencies, solutions to the temporal and spatial quandaries associated with capitalism, and responses to the requirement to realise the benefits of the production process by employing effective sales strategies. Capital accumulation in this company has been quite successful, and has extended over several economic cycles, since the 19th century. The history of this organisation demonstrates the lasting power and acumen of a large corporation[ONe12]. Paul Anderson, the former chief executive officer of BHP Billiton, made a massive contribution towards the success of this company. In the initial stages of his tenure, his colleagues were sceptical of his policies and values, as they were Australians and he was an American. Paul discerned this negative feeling towards him, promptly. Accordingly he commenced the process of winning their trust and determining the future course of action to be adopted by the company. To this end, he directed the principal officials of the company to describe their background and job role. Moreover, he instructed them to highlight the most pressing issues. Thereafter, he spent an hour with each of these executives and discussed the information provided by them[Sut13]. Thus, Paul relied upon the collective wisdom of the company and formulated a turnaround strategy. The main feature of his strategy was the “charter” that he penned. This document made it abundantly clear that their company was a resources company that could not be transformed into a company that provided services. This charter listed out the aims, values, and procedures for achieving success[Sut13]. Several difficult decisions were taken by Paul, such as the closure of a titanium plant that was making a monthly loss of 10 million dollars, and discontinuing the engineering and IT ventures of the company. In the 1999 fiscal year, this company had lost more than two billion dollars. However, Paul ensured that by 2000, this company showed a profit of $1.6 billion, which increased to $2.2 billion by 2001. Paul had always stressed that ensuring the safety of the employees was indispensable for retaining the international reputation of their company[Sut13]. In addition, this would constitute a major attraction for skilled employees. Conclusion As such, the leading organisations like BHP Billiton possess adequate professional resources to undertake crucial strategic projects. Moreover, the managers of such organisations have the ability to allocate their time to business development, organisational improvement and self-development. Nevertheless, the operations of BHP Billiton are usually of the long term type, and this enables it to construct collaborative community associations. The scope and size of this company enables it to make a significant contribution to the communities in which it operates. It is the aim of BHP Billiton to maximise the socio-economic advantages derived from its operations and to contribute meaningfully towards international economic development. It can be concluded that the managers of BHP Billiton play a crucial role in making their company outstanding and exclusive in the contemporary competitive markets. Recommendations Nevertheless the development of this company is to be accompanied by a minimising of its demands upon the ecosystem of the Earth, via innovation, productivity and technology. In this regard, strong governance procedures, and high standards of ethical and responsible conduct should be adopted by this company. In addition, it has to make an active contribution towards the development of society. As such, the managers, at all levels of BHP Billiton should strive to maximise their management proficiencies, in order to realise the goals and consequently the success of their organisation. 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