Oracle Corporation: A Profile of Power, Influence, and Dominance - Case Study Example

Leadership is normally associated with power, influence and dominance. Any successful leader uses the power bestowed on him, the influence he possess and dominance in the particular field to remain ahead of others. Many successful business leaders who are highly celebrated today have used these tools effectively since they have understood the power of influence. This Case analysis of Larry Ellison, the CEO of Oracle Corporation will examine the forms of interpersonal power used, how the forms of power used relate, whether the power is used effectively and the influence tactics used. The analysis concludes by showing the importance of power and influence to any form of leadership that is success oriented. Introduction Oracle Corporation is a Multinational company based in the United States which has been in existence for over thirty five years. It deals mainly with the development and production of computer software and hardware. It is the leading producer of computer software and it seeks to maintain this position through the strategies it adopts (Ries, 2013). In 2013, the corporation sold over 3000 engineered systems and reported revenue of thirty seven billion dollars. Larry Ellison has been the CEO of Oracle Corp since its inception in 1977 until recently when he announced he would be stepping down. He has seen the organization rise to be the leading in the industry and the success of Oracle Corp is largely attributed to him. He has enjoyed a lot of success as the leader of the corporation and was recently declared by the Forbes magazine as the world’s sixth richest person and third in America. Of key interest is his use of power, influence and dominance to remain relevant in the industry. Analysis Larry Ellison uses expatriate, information and interpersonal power in his leadership to exert influence on those who follow him. He possesses information, which his competitors do not have and knows the sectors to invest in and the ones not to invest in. He is quoted saying “Oracle wants to be the leader in communication billing, utility billing and core billing” (Nelson & Quick, 2013) .This expertise has always enabled him to venture into new business opportunities ahead of his competitors especially in acquisitions and takeovers, most of which have been successful. One of his most successful acquisitions was the Sun Microsystems in 2010, which enabled him to expand the production of Oracle Corporation tremendously and be far much ahead of his competitors. Furthermore, Ellison applies legitimate interpersonal power and dominance; since he is revered in business circles, he has often used that opportunity to expand his corporation in indirect takeovers. When Hewlett Packard fired Hurd, Ellison after condemning the act hired him to work in Oracle. He then moves on and starts criticizing Hewlett Packard’s products saying they are inferior and slower compared to his products. This served to make the impression that the products of his corporation were superior and thus winning many customers. These faces of power used by Ellison explains the strategies he normally preferred to use in management and decision making and his strong visionary power that enables him to always believe that his organization was the best in innovating and developing quality products. This is supported by the visionary leadership theory that argues that leaders who are able to create realistic and credible visions and have strong passion towards achieving the vision are always successful (Borkowski, 2009). Larry Ellison’s application of power makes one to ask the question, “Does he use his power ethically?” Many people have raised this concern but it has not been clear whether his use of power was ethical. The manner he portrays his competitors is impolite, he uses words that directly bring the impression that their products are bad. It can be argued that it is a form of strategy to dominate the market and exert influence over the potential customers but when critically compared with the rules of ethics, it is clear that such actions are unethical. Business ethics requires one to respect the products and the decisions made by one’s competitors in business and they do not in any way allow one to maliciously and falsely distort the public image of another organization. (Daft, 2006) Larry Ellison employs inspirational appeal to influence his employees and his strong desire to succeed has always had a strong impact upon his employees. He clearly understands that not everybody will agree with the methods he uses but believes nobody will deny any good result (Miller, Williams & Hayashi, 2007). Workers always perform effectively when they can draw inspiration from their leader since the leader inspires them to be more committed in their work. This has been the case in Oracle Corporation where many employees of the organization have been reportedly quoted saying that Ellison is the best CEO. This positive attitude towards their leader stems from the fact that they view him as their role model and want to be associated with him. This desire consciously or unconsciously makes them to dedicate themselves to their work and hence better results. He has also used lateral influence upon his competitors to remain top in the industry. Overtime his competitors have come to develop the perception that Larry is among the best in the computer and software industry. This has been attributed by the great success he has enjoyed over the years as the chairman and CEO compared to his competitors. From a critical perspective, Ellison uses the power, dominance and influence he has over the computer industry effectively, considering that he used his power and influences to attain his organizational goals. This is in all dimensions upwards, downwards and horizontal and he does not neglect any single aspect of his influence. This is important for any manager as he is able to directly or indirectly control the rest of the industry towards attainment of his objectives. The workers, competitors and any other person in an industry are usually important and have a role to play. (Lussier, 2008). Ellison seems to have known the concept and capitalized on it and this has largely contributed to his dominance in the sector. The tactics used by this successful manager and billionaire and his business behavior at large are worth to be emulated by any person who wants to excel in his career. Recommendation The use of power, influence and dominance by any leader determines largely his success, if used effectively and ethically the three tools lead to success. Power enables the leader to exert the right influence to those following him whereas dominance is usually a result of power and influence. Therefore, corporate and political leaders should use their influence effectively. If all CEOs embrace these principles, the output of their firms will increase immensely leading to robust growth in the world economy and consequently solving most of the world’s current problems such as unemployment and inflation. Similarly, if political leaders used these tools well most of the crises being experienced in most of the countries pertaining leadership would be solved. References Borkowski, N. (2009). Organizational behavior, theory, and design in health care. Sudbury, Mass: Jones and Bartlett Publishers. Daft, R. L. (2006). Organization theory and design. Mason, OH: Thompson-South Western. Lussier, R. N. (2008). Management fundamentals: Concepts, applications, skill development. Mason, OH: South-Western/Cengage Learning Miller, R. B., Williams, G. A., & Hayashi, A. M. (2007). The 5 paths to persuasion: The art of selling your message. London: Kogan Page. Nelson, D. L., & Quick, J. C. (2013). Organizational behavior: Science, the real world, and you. Mason, Ohio: South-Western. Ries, S. (2013). OCA Oracle Database 11g Database Administration I: A Real-World Certification Guide. Birmingham: Packt Pub. Read More