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Leadership & Management
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OYAGSB UUM2014 Slide 1
Leadership Style and Organizational Effectiveness
The Sony-Ericsson Endeavour1
Presented byHashamuddin bin Yaakob
(900278)
Presented toDr Caroline M. Acosta
OYAGSB UUM
Agenda1. Introduction – What is Leadership?2. Major Leadership issues/decision made in
case3. Effectiveness Leadership decision at the time4. Effect Leadership decision in current situation5. Leadership Lessons6. Conclusion
2014 Slide 2
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What is Leadership ?“The ability to influence a group
toward the achievement of
goals” (Robbins 2003)
2014 Slide 3
Robbins, Stephen. Organizational Behavior. 10th ed. Upper Saddle River, NJ: Prentice, Hall, 2003.
“Management is doing things right, leadership is doing the
right things” (Warren Bennis and Peter Drucker)
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Leadership TheoryThe Evolution of Leadership Theory
1940 1950s 1960s 1970s 1980s 1990s
2014 Slide 4
Trait Theory
Behavioural Styles Theory
Contingency Theory
Transformational Theory
Transactional Theory
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Leadership IssuesIssues Sony Ericsson
• Joint-venture
• Culture• Synergy
Creating a successful JV
Has been able to considerably broaden its platform for mobile communication
Great significance for its future presence in advanced electronics consumer
Concentrate on its future in mobile infrastructure
2014 Slide 5
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Sony Background / Structure1994 Major changes – organizational structure – creation new
company
1966 Organizational structure was done
1999 Strategic organizational change was introduced – four main gateways for hardware
2001 Reform of the headquarter section – created global hubs (entertainment, game, financial service, internet/communication service
2003 Major change – Transformation 601. Clarifying operational structure and
concentrating technology and resources2. Fundamentally reforming operational profit
structure
2014 Slide 6
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Ericson Background / Structure
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An engineering company with limited attention to R&D until mechanical switches were replaced by digital
The situation gradually shifted from early 1960sNew strategy in the early 1980s – embedded in
the Ericsson Information System (EIS) – launched its concept “office of the future”
1988 : new corporate strategy was formulated – focus on telecommunications
Late 1990s : overstaffing problem which existed in many quarters of the company
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Sony – Ericsson Partnership Components
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Ericsson Sony
Staff original numbers in early 2001
3,000 1,500
Market knowledge – telecom operators
Of some importance
Limited
Market knowledge – consumer electronics
Limited Very important
Handset technology
Very valuable Sony did not want to pay
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Sony – Ericsson (JV)
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Late 2000s : formal discussion were held between Ericsson & Sony
April 2001 : Sony introduced major organization reform
Soft Alliance with Qualcomm & Siemens both failed
2001 : serious discussions before start of reorganizing its operations
50/50 JV
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Leadership at the time
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Sony CultureEmphasizes “a spirit of freedom and open-mindedness”Fighting spirit to innovate
Sony’s SpiritAlways sough to create innovative products that inspire
new lifestyles
Life at SonySony aims to create a workplace that inspires
employees to pursue new challenges and grow by realizing their creative and innovative potential
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Leadership decision in current situation
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Sony may adopt the strategic actions as follows:
Maintain The Leader Position in Product Innovation & Quality
Invest in Broadband Network Invest in Internet-Enabled ProductsReinforce Brand Values & Promote a World Class BrandEncourage Dreams
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Leadership decision in current situation
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What Are Sony’s Success Factors?
Visionary LeadershipReligious Zealous to InnovationPioneer AdvantageHuman Capital
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Leadership Lesson
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Leadership TheoryTransformational Leader
1. Leaders stimulate and inspire (transform) followers to achieve extraordinary outcomes
2. Characteristics:I. Leadership is proactiveII. Works to change the organizational
culture by implementing new ideasIII. Employees achieve objectives through
higher ideals and moral valuesIV. Motivates followers by encouraging
them to put group interests firstV. Intellectual stimulation: Promote
creative and innovative ideas to solve problems.
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People will follow a
person who inspires them.
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Leadership TheoryTransactional Leader
1. Leaders promote compliance of his followers through both reward or punishment.
2. Characteristics:I. Leadership is reactiveII. Works within the organizational cultureIII. Employees achieve objectives through
rewards and punishments set by leaderIV. Motivates followers by appealing to
their own self interestV. Management-by-exception: maintain the
status quo; stress correct actions to improve performance
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Subordinates are not
self-motivating
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Leadership TheoryContingency Theory
1. According to the contingency approach of leadership, a single leadership style is not applicable to all situations.
2. Contingency models of leadership styles:I. Fiedler’s Contingency ModelII. Hersey and Blanchard’s situational theoryIII. Path Goal TheoryIV. Tannenbaum and Schmidt’s leadership
continuum
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a single leadership style is not applicable
to all situations
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Leadership StyleResearch done by the consulting firm Hay-McBer Associates (Harvard Business Review, 2000), found six different leadership styles as the following:
1. The coercive style2. The authoritative style3. The affiliative style4. The democratic style5. The pacesetting style6. The coaching style
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Leadership Style-Details
Coercive Authoritative Affiliative
Mode of Operation
Demand immediate compliance
Mobilize people toward a vision
Create emotional bonds and harmony
The style in a phrase “Do what I tell you.” “Come with me.” “People come first.”
Advantage Efficient and effective
Maximizes people's commitment toward organization goal, enhance clarity and flexibility
Drives up trust and flexibility, build up sense of recognition and belonging.
DisadvantageErode flexibility, motivation and responsibilty.
Failed when a leader is working with a team of experts who are more experienced than him
Allow poor performance to go uncorrected, and leaves people rudderless
When the style works best
In a crisis, to kick start a turnaround, or with problem employees
When changes require a new vision, or when a clear direction is needed
To heal rifts in a team/ motivate people during stressful circumstances
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Leadership Style-Details
Democratic Pacesetting Coaching
Mode of Operation Build consensus through participation
Expect excellence and self-direction
Develop people for the future
The style in a phrase “What do you think?” “Do as I do, now.” “Try this.”
Advantage Drives up flexibility and responsibility
Fast pace, focus and result oriented.
Coaching improves flexibility, responsibility and commitment.
DisadvantageEndless meetings and elusive consesus. People end up feeling confused and leaderless
Erode Flexibility and responsibility. Lack of commitment.
Time consuming
When the style works best
To build buy-in or consensus, or to get input from valuable employees
To get quick results from a highly motivated and competent team
To help an employee improve performance or develop long-term strengths
2014 Slide 19
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Conclusion1. This study provides the background for two companies in
telecommunication and how they joined forces in the development of future mobile communications
2. Combination Sony-Ericsson – an ideal international JV3. Major conclusion:
1. Different types of cultural gaps should have been addressed at an early stage
2. Considerable time would have been needed to identify mutual shortcomings and hidden agenda
3. Stated goals should have been more clearly matched with available resources
4. Stated goals should have been more supported by appropriate strategies
2014 Slide 20
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Conclusion“…to create organizational effectiveness and
ensure sustainability, business leaders need to focus their attention on aligning their people, the systems, the structure and roles with the organization’s strategy, while engaging their
employees with their jobs and with the organization.”
2014 Slide 21