Business Management Classical Management in the Haier Group. Essay

Introduction and problem identification Page 3 Potential problem Page 3 Discussion Page 4 Transactional Leadership Page 4 Transformational Leadership Page 5 Conclusion Page 7 Recommendations Page 7 References Page ...

Introduction and problem identification Page 3 Potential problem Page 3 Discussion Page 4 Transactional Leadership Page 4 Transformational Leadership Page 5 Conclusion Page 7 Recommendations Page 7 References Page 83 Introduction and Problem Identification Haier is one of the biggest electronics and household appliance company in the world. It is the world’ s number 1 white goods brand (Haier, 2017), with a 10.2 per cent market share (Schermerhorn et al, 2017). Zhang Ruimin assumed control as manager in 1984 and has revitalized the company from near bankruptcy and transformed it into the success it is today (Haier, 2017). Ruimin did so through implementing the OEC management control system, a management style that requires every employee to have a 1% increase on productivity compared to the previous day (Schermerhorn et al, 2017). A potential leadership problem however, was spotted in the Classical Management in the Haier Group case study. A potential problem in the Haier company is where focus is primarily maintained on individual performance and incentives, resulting in a poor teamwork culture. This can be linked back to the management functions of leadership; where leadership is the process of communicating, motivating, encouraging and inspiring employees to accomplish business goals (Schermerhorn et al, 2017). An example of this principle is evident where employees are monitored and expected to have a 1% increase on their daily production rate. It is a problem because it creates an unhealthy competitive nature within the company which can lead teamwork to suffer (Schermeronhorn et el, 2017). As employees become more concerned about their individual performance, they retract away from other co-workers. Furthermore, employee incentives then become primarily dependent on their individual performance as opposed to cooperating with other employees to accomplish business goals. In the long run this affects the company dramatically, leading co-workers to fall behind in their production, employees being self-driven as opposed to company driven, production rate can fluctuate in the company and ultimately a loss of company funds. This report investigates transactional leadership as well as transformational leadership to analyse how these two theories of leadership have impacted the competitive nature at the company. Furthermore, a recommendation best suited for the poor teamwork culture will be provided to effectively increase teamwork and production rates within th Conclusion Emphasis on individual performance and incentives can potentially create a competitive workplace culture where teamwork is lacking. This is due to the excessive use of coercive power to influence and encourage individual performance. Relying heavily on the principle of transactional leadership to increase productivity is not very effective for the company. Especially, with having employee wages linked to market performance. Therefore, the leadership theory collapses if employees are not able to reach the 1% increase in productivity, resulting, in a competitive workplace nature where teamwork suffers. Recommendations Emphasis on the importance of teamwork needs to be addressed on a weekly basis. By doing so, employees are reminded that all their wages are depended on how the market performs. Additionally, the impact of transactional leadership cannot be overlooked and should still be practiced in the workplace because it encourages employee performance. Transformational leadership however, needs to be further reinforced to encourage and inspire employees (Gregory A, 2006), because it motivates employees to not only perform to benefit their individual incentives, but for the benefit of the company (YouDe D, You-Yu D, Kuan-Yang C, Hui-Chun W, 2013). More importantly transformational leadership needs to be reinforced because it inspires and communicates organizational commitment with all employees (Afshari L, Gibson P, 2016).8 References Afshari Leila, Gibson Paul, 2016, Leadership & Organization Development Journal: How to increase organizational commitment through transactional leadership, p507-519, retrieved from http://www.emeraldinsight.com.libraryproxy.griffith.edu.au/doi/full/10.1108/LODJ-08-2014-0148 Bousbia Ali. Brahim, 2016, THE EFFECT OF TRANSACTIONAL LEADERSHIP ON EMPLOYEES PERFORMANCE – CASE STUDY OF 5 ALGERIAN BANKING INSTITUTIONS, p7-20, retrieved from, http://hy8fy9jj4b.search.serialssolutions.com/?ctx_ver=Z39.88- 2004&ctx_enc=info%3Aofi%2Fenc%3AUTF- 8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3A mtx%3Ajournal&rft.genre=article&rft.atitle=THE+EFFECT+OF+TRANSACTIONAL+LEADERSHIP+ON+E MPLOYEES+PERFORMANCE+%E2%80%93+CASE+STUDY+OF+5+ALGERIAN+BANKING+INSTITUTIONS &rft.jtitle=Economic+Review+%3A+Journal+of+Economics+and+Business&rft.au=Ali+Bousbia+Brahi m&rft.au=Ognjen+Ri%C4%91i%C4%87&rft.au=Tomislav+Juki%C4%87&rft.date=2016-05- 01&rft.pub=University+of+Tuzla&rft.issn=1512- 8962&rft.issue=2&rft.spage=7&rft.epage=20&rft.externalDBID=DOA&rft.externalDocID=oai_doaj_or g_article_4c1314f0fee34eaaa9e31a0f119cb243¶mdict=en-AU Cherry Kendra, 2017, What Is Transformational Leadership? How Transformational Leadership Inspires, retrieved from, https://www.verywell.com/what-is-transformational-leadership-2795313 Clark Donald, 2015, Leading, retrieved from, http://www.nwlink.com/~Donclark/leader/leadled.html Gregory A, Aarons, 2006, Transformational and Transactional Leadership: Association With Attitudes Toward Evidence-Based Practice, retrieved from http://search.proquest.com.libraryproxy.griffith.edu.au/docview/213075046?pq-origsite=summon Groysberg B, Polzer J, Elfenbein H, 2011, Too Many Cooks Spoil the Broth: How High-Status Individuals Decrease Group Effectiveness. Organization Science, p722-737, retrieved from http://dx.doi.org/10/1287/orsc.1100.0547 Groysberg B. Lee, Abrahams R, 2010, What it takes to make 'Star' Hires Pay Off, p 57-61, retrieved from http://search.proquest.com.librabryproxy.griffith.edu.au/docview/224966000/abstract/DB99E306E 77F4A8DPQ/1?accountid=14543 Haier.net, 2017, CEO Profile, retrieved from http://www.haier.net/en/about_haier/Leadership/introduction/ Heintel P, Zowen R, 2017, Reflecting Power and Consultancy From Supporting Herosim to Enabling Distributed Leadership'. Challenging Organisations And Societ, p389-404, retrieved from http://www.narcis.nl/publication/RecordID/oai:hbokennisbank.nl:avanshogeschool:oai:repository:s amenmaken.nl:smpid:52227 Ingram David, 2017, Transformational Leadership Vs. Transactional Leadership Definition, retrieved from http://smallbusiness.chron.com/transformational-leadership-vs-transactional-leadershipdefinition-13834.html Martínez-Córcolesa Mario, Stephanou Konstantinos, 2017, Linking active transactional leadership and safety performance in military operations, p 93-101, retrieved from, http://hy8fy9jj4b.search.serialssolutions.com/?ctx_ver=Z39.88- 2004&ctx_enc=info%3Aofi%2Fenc%3AUTF9 8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3A mtx%3Ajournal&rft.genre=article&rft.atitle=Linking+active+transactional+leadership+and+safety+pe rformance+in+military+operations&rft.jtitle=Safety+Science&rft.au=Mart%C3%ADnezC%C3%B3rcoles%2C+Mario&rft.au=Stephanou%2C+Konstantinos&rft.date=2017-07- 01&rft.issn=0925-7535&rft.eissn=1879- 1042&rft.volume=96&rft.spage=93&rft.epage=101&rft_id=info:doi/10.1016%2Fj.ssci.2017.03.013&r ft.externalDBID=n%2Fa&rft.externalDocID=615017550¶mdict=en-AU Mind Tools, 2017, Transformational Leadership, retrieved from, https://www.mindtools.com/pages/article/transformational-leadership.htm Mulla R. Zubin, Krishnan R. Venkat, 2011, Transformational Leadership: Do the Leader’s Morals Matter and Do the Follower’s Morals Change?, retrieved from http://journals.sagepub.com.libraryproxy.griffith.edu.au/doi/pdf/10.1177/097168581101700203 Patiar A, Wang Y, 2016, The effects of transformational leadership and Organizational commitment on hotel department performance, p586-608, retrieved from http://dx.doi.org/10.1108/ijcgm-01- 2014-0050 Pieterse Nederveen Anne, Knippenberg Van Daan, Schippers Michaela, Stam Dann, 2010, Transformational and transactional leadership and innovative behavior: The moderating role of psychological empowerment, p 608-623, retrieved from, http://www.jstor.org.libraryproxy.griffith.edu.au/stable/41683931?pqorigsite=summon&seq=1#page_scan_tab_contents Prasad Bhaskar, Junni Paulina, 2016, CEO transformational and transactional leadership and organizational innovation: The moderating role of environmental dynamism, p1542-1568, retrieved from http://www.emeraldinsight.com.libraryproxy.griffith.edu.au/doi/full/10.1108/MD-11-2014- 0651 Reiley P.J, Jacobs R.R, 2016, Ethics Matter: Moderating Leaders’ Power Use and Followers’ Citizenship Behaviors, retrieved from, https://link-springercom.libraryproxy.griffith.edu.au/article/10.1007%2Fs10551-014-2416-0 Rutherford J, 2017, Monitoring teamwork: a narrative review, p84-94, retrieved from http://dx.doi.org/10.1111/anae.13744 Schermerhorn, J. (2016). Managment 6th Asia-Pacific Edition (1st ed., p. 37). Hoboken: John Wiley. Simons Greg, 2015, Perception of Russia's soft power and influence in the Baltic States, p 1-13, retrieved from, http://hy8fy9jj4b.search.serialssolutions.com/?ctx_ver=Z39.88- 2004&ctx_enc=info%3Aofi%2Fenc%3AUTF- 8&rfr_id=info%3Asid%2Fsummon.serialssolutions.com&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3A mtx%3Ajournal&rft.genre=article&rft.atitle=Perception+of+Russia%27s+soft+power+and+influence+ in+the+Baltic+States&rft.jtitle=Public+Relations+Review&rft.au=Simons%2C+Greg&rft.date=2015&rf t.issn=0363-8111&rft.eissn=1873- 4537&rft.volume=41&rft.issue=1&rft.spage=1&rft.epage=13&rft_id=info:doi/10.1016%2Fj.pubrev.2 014.10.019&rft.externalDBID=n%2Fa&rft.externalDocID=607793000¶mdict=en-AU Study.com, 2017, Personal Power: Definition & Types, retrieved from http://study.com/academy/lesson/personal-power-definition-types-quiz.html10 You-De Dai, You-Yu Dai, Kuan -Yang Chen, Hui- Chun Wu, 2013, International Journal of Contemporary Hospitality Management, p760-778, retrieved from http://www.emeraldinsight.com.libraryproxy.griffith.edu.au/doi/full/10.1108/IJCHM-Dec-2011-0223