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LEADERSHIP AND

MANAGEMENT

FROM: Ali
TO: PROF. SIR. WAHEED SHARIF  ResearchWork08072021-01
Table of Contents
Leadership and management.............................................................................................3
Question No.01. Critically discuss leadership and management of following
organizations:..................................................................................................................... 3
1) British petroleum.......................................................................................................3
2) Vodafone.................................................................................................................... 3
3) British telecom...........................................................................................................3
4) Microsoft....................................................................................................................3
5) Samsung.....................................................................................................................3
6) HP............................................................................................................................... 3
7) Dell............................................................................................................................. 3
8) Saudi Aramco.............................................................................................................3
9) Berkshire Hathaway...................................................................................................3
Critical Discussion of Leadership and Management of following organizations:...........4
1) British petroleum..................................................................................................4
The impact of management and leadership style on strategic decision in case of
British petroleum.......................................................................................................4
The impact of selected theories of management and leadership style on BP strategy
................................................................................................................................... 4
Leadership strategy that support organizational direction........................................5
Appropriate methods to review current leadership requirement.............................5
British Petroleum’s development of leadership skills for a specific requirement......6
BP’s leadership framework........................................................................................7
Report on the usefulness of methods used to plan the development of British
Petroleum’s leadership..............................................................................................7
................................................................................................................................... 8
2) Vodafone..............................................................................................................8
Introduction...............................................................................................................8
Leadership and Management of Vodafone................................................................8
3) British telecom....................................................................................................10
4) Microsoft............................................................................................................12
5) Samsung.............................................................................................................18
The solution for continuous improvement...............................................................19
The solution for skill management...........................................................................20
Team Leadership......................................................................................................20
Organization culture.................................................................................................21
Individualism............................................................................................................21
Task-oriented...........................................................................................................21
Conclusion.................................................................................................................... 22
6) HP....................................................................................................................... 23
2 Strategy analysis for the company HP.......................................................................23
2.1 Current challenges of HP....................................................................................23
2.2 HP’s organizational complexities........................................................................24
2.3 Leadership approach of HP’s senior management.............................................25
7) Dell......................................................................................................................26
Situational Leadership..............................................................................................26
Michael Dell Biography:...........................................................................................26
Michael Dell’s Leadership style:...............................................................................27
8) Saudi Aramco......................................................................................................29
Leadership Development.........................................................................................29
Expectancy Theory...................................................................................................32
Discussions, Conclusions and recommendations.....................................................34
Limitations and Recommendations..........................................................................35
9) Berkshire Hathaway INC.....................................................................................36
The Management of Berkshire Hathaway INC.........................................................36
Leadership style of Berkshire Hathaway/CEO of the Company-Warren Buffet........37
References.......................................................................................................................39
Leadership and management
Question No.01. Critically discuss leadership and management of
following organizations:
1) British petroleum
2) Vodafone
3) British telecom
4) Microsoft
5) Samsung
6) HP
7) Dell
8) Saudi Aramco
9) Berkshire Hathaway
Sol.No.01.
Critical Discussion of Leadership and Management of following
organizations:
1) British petroleum
The impact of management and leadership style on strategic decision in case
of British petroleum.
People work together with the leader and the community, certainly the level of their
commitment to the organization, depends on the management style. The bigger the
organization the more complicated it is to achieve the necessary level of co-operation.
To improve the style of management can by itself increase the efficiency of operating;
get better results obtained, the way in which assets are being used, by about 25%. The
results to be achieved by improving the style of management are therefore very
considerable from the point of view of a good return and satisfaction to the
stakeholder’s overall change company’s strategic decision.

According to case study, British Petroleum implicated in the Gulf of Mexico oil spill to
cut costs and save time which is contributed to the disaster. BP hadn’t sufficient controls
in place to make certain safety. There are specific risks is identified include;
1. Defective design for the cement used to seal the base of the well.
2. That seal identified as a problem although was “incorrectly judged a success”.
3. Workers are failed to identify the first signs of the near future blow-out.
“We have a leadership style that probably is to directive and doesn’t listen sufficiently
well,” Tony Hayward, Chief Executive Officer of BP. “The top of the organization doesn’t
listen hard enough to what the bottom of the organization is saying.”
It is certain that stakeholder’s reaction, interest, delegations, depends on leadership
style, behave and the style of management. They have changed the CEO of BP. This is a
great impact of the business profit and strategic decision.
The impact of selected theories of management and leadership style on BP
strategy
Transformational leadership
Transformational leadership means a leadership move towards which causes modify in
persons and social systems. It’s created valuable and positive change in the supporters
with the end goal of developing supporters into leaders and enhances the enthusiasm,
confidence and performance of his supporters through a range of mechanisms. Simon is
a man of action and determined to refocus BP’s core performance. He introduced 1-2-5
Project and as a leader, he determined to start this strategy which could save the big
business and enabled him to achieve recognition from his workers and therefore it
would be easier for them to trust on his strategies.
Transition Leadership
Transition leaders are liable for gains support from and assurance of others, takes
responsibility, provides positive feedback to others, builds relationships with consumers,
upper class and scheme team members, inspires and motivates, provides clear path,
creates opportunities for little wins. Angolan Leadership Development Programme
(ALDP) is the example of transition leadership and management style. BP and Tana
Holness the BP Angola L&D Manager has implemented this style.
Leadership strategy that support organizational direction
Transformational Leadership in a Transnational Organization
According to case study BP is a transnational organization and need to be changed into
transformational leadership. In BP, Robert Horton’s and David Simon’s leadership styles
in the situation of the turmoil of the oil industry in the past 25 years and the roles the
leaders played in the transformation procedure at British Petroleum. The two men’s
goals were nearly one and the same, their individual style determined failure for one
and achievement for the other. In this case address issues of transformation, general
and business cultures in a transnational organization.
Appropriate methods to review current leadership requirement
Hayward described a typical direction and control organization that is excessively fixed
on cost-cutting and consumed with fire combating. His frank explanation demonstrated
his aspiration to change BP’s leadership theory from a transactional theory into a
transformational theory. Year 2010, Hayward’s own leadership style came under
inspection when BP’s flash in the Gulf of Mexico killed 11 employees. Hayward was in-
charge over the last 3 years and had a leadership style dissimilar than BP’s business
culture. He unsuccessful to create positive change linked to cost-cutting, safety, and
ecological sustainability. So, he established resilient leadership by protecting his
business and ethical leadership style for taking the definitive accountability, his
occupation.
Corporate social responsibility is a form of corporate self-regulation included into a
business model. CSR strategy functions as an integrated, self-regulating method
whereby business monitors and ensures its active observance with the strength of the
law, moral values, and global norms. Main goal of CSR is to embrace accountability for
the company’s activities and cheer an optimistic impact through its performances on the
environment, customers, workers, communities, shareholders and all members of the
public sphere. Moreover, CSR-focused businesses could proactively encourage the
public attention by encouraging neighborhood growth, expansion and voluntarily
eliminating practices that damage the public sphere, despite of legitimacy. It is the
planned enclosure of public interest into business decision-making, the core business of
the company and the honoring of a triple bottom line and that is people, planet, and
profit.
British Petroleum continuously strives to be a force for good quality and strength for
human improvement in every country it works. In parallel, BP enthusiastically pursues
superiority in all operations. Superiority is founded on accountability and starts with
liable operations that support safety and integrity, diminish the impacts to the
environment and offer a healthy and safe work environment for its workers. Thus, CSR
method is essential for BP future grow BP counts itself among the world’s innovative
and progressive companies. BP believed that long-term prospect depends on their first-
class ecological and social performance and superiority in all operations. Its represents
the way BP do business. Responsible operations and development for the long-term
common benefit of all parties and this is the method to current leadership requirement.
British Petroleum’s development of leadership skills for a specific
requirement
Angolan Leadership Development Programme (ALDP) and BP’s leadership framework
are the plan to develop of leadership skills.
BP Angola had to set up its own development programme and taking place the Angolan
Leadership Development Programme (ALDP) in 1999. Good plan must change leader
and benefit for the company. To develop leadership skills ALPD is the best method for
future. Like this programme if BP work all over the world, they can improve leadership
skills and fulfil all goal.
The most appropriate coach can help understanding the individual’s challenges and
knowledge of each coach as well as their strengths. Face to face coaching made most
excellent use of the time obtainable given the organizational pressures of the instant
and development plans for illustration stakeholder management and delegation, are
also include as the programme evolved.
To supporting an individual’s development, this is a demanding feature of the agenda as
all participants but principally team leaders are under tremendous pressure preparing
for “first oil” Recognizing that buy-in is critical to achievement of the project and that
they understood the role in partnering with the trainer and the learner in offering
feedback alongside development plan objectives and performance.
BP’s leadership framework
Strong leadership as well as high performance depend on having a straightforward and
dependable view of what leadership means during BPs varied businesses. Therefore,
stick to a single, ordinary management structure, with a obvious and purposeful set of
expectations. Leaders in BP will
1. Value expertise, e.g. by developing competence in the team.
2. Energize people, e.g. by encouraging teamwork, giving and receiving open feedback.
3. Act determinedly, e.g. by setting a clear direction and considering tough decisions
through.
4. Deliver results, e.g. by driving safe, reliable and efficient operations and continuous
improvement.
This framework is used right through BP to help select, assess, develop and reward
leaders.
Report on the usefulness of methods used to plan the development of British
Petroleum’s leadership
Angolan Leadership Development Programme (ALDP) is very important to develop
leadership skills all around the world. By I-coaching BP can develop
1. Effective leadership positions,
2. Stakeholder management,
3. Influencing skills,
4. Performance management,
5. And feedback skills
6. Remove argument between the pressures to perform in the day to day and the
pressures of the leadership programme.
7. Three ways of review sessions between the Team Leader, Coach and Participant get
extensive logistical challenges and gain more value from face to face coaching.
8. It will increase confidence as a leader.
9. It develop the truth of taking ownership, individual accountability and emotional
growth
10. To take challenge, ability to see others from different point of view and influence
though acknowledging and in respect of difference.
11. To enhance the consciousness of existing leadership style and its link to the
leadership behaviors which reproduce the organization’s core ethics & leadership
capability structure.
12. To discover the current strengths and growth requirements as leaders and also
improve the motivation and self-confidence.
13. To increase capabilities to complete different teams and to deliver results from part
to part others.
14. To enhance skills to control pressure, balance individual and professional life.
15. To maintain existing team leaders to develop coaching, leadership style and grow
leadership development challenges across the organization.
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2) Vodafone
Introduction
Vodafone Group plc is multinational telecommunication company headquarters in
London. It was founded in September 1991 by Ernest Harrison and Gary Whent.
Vodafone has expanded all over the world in its 27 years of telecommunication.
Vodafone is operated in 25 countries and has 47 further countries. Vodafone is the 4th
largest mobile network in the world with number of customers as of 2018. The
Vodafone Global Services is one of the divisions of Vodafone Group plc which provide IT
services to 150 countries. The Vodafone have 111,556 employees as of 2018. The
management and leadership of the manager and the leader of Vodafone are discussed
here.
Leadership and Management of Vodafone
Following is the details of Leadership and management of Vodafone:
Role of Manager of Vodafone
A manager of a Vodafone plans, market and coordinate for achieving the business goals
of the organization. The manager directs the activities to others in Vodafone groups plc.
The manager performs their activities at various levels with different names such as
project manager, functional manager and general manager. The managers are
responsible for making the important decisions and policies of the Vodafone Groups plc.
The manger has various skills to perform the jobs he should be good with physical,
mental, moral, educational, technical experience. They know how to communicate with
workers in every level of the organization. They have the relationship with various units
of organization. The manager in Vodafone Groups plc has to undertake different
functions from planning to controlling. The manager has the knowledge of business
environment and various problems of the organization. The manager takes important
decision in appropriate time for the benefits of the organization. The manager is a good
listener and reacts quickly to the situation. The Vodafone manager of the Vodafone
deals with many people of the organization sometimes outside of the organization. They
analyze systematically before taking a decision daily. The manager involves in motivating
its workers and also firing the workers. The manager signs some of the legal documents
as the head organization.
The manager has positive attitude and self-confidence which motivates him and other
workers of the organization. The manager of the Vodafone performs all business
activities to the growth of organization.
Leadership role of Vodafone
A leader plays different roles within the teams and the whole organization. A leader
performance and the potential is identified with the achievements and growth of the
organization. A leader creates the value for the bottom line employees, employees of
the organization, the organization, investors and the customers of the organization. A
leader influences his team members and other employees with good attitude in every
situation.
A leader working in Vodafone Groups plc should analyze every data to make decision
and support bottom line metrics. The leader should be concise in providing the
guidelines to the employees about the strategy and direction of the organization. A
leader engages with the team and relates deeply with the colleagues. A leader listens to
the ideas of his team members which is important to achieve the business goals of the
organization. A leader vision should have the ability to articulate the vision of the team
and guide the employees to understand the objectives of the organization.
A leader of the Vodafone shares his objectives to achieve the business goals. A leader
communicates with every employee and manager in the organization.
A leader of the Vodafone drives for the company’s strategy, plans and the business
objectives.
Limitations of decision making and operational management by a manager and a
leader
The leader and manager plays important role in the contemporary business
environment of the Vodafone. A leader goes for the new possibilities in the organization
process. The manager of Vodafone is to maximize the output of the organization
through his performance. The workers of the organization are always loyal to the leader
because of their relationship with them. A manager should know how to lead a team
and manage them in a right path to achieve the organization business objective. The
Vodafone formal authorities are the managers who manage the people and other
business activities of the system. The employees of the Vodafone gave power to the
leaders who fulfilling what they need. The leaders have no power to reward the
employees for the work whereas the manager rewards the employees to complete the
goals. The Vodafone telecommunication network is built with successful leaders and
managers to reach the business objectives.
The leader is responsible for all the strategies implemented on the system and make
sure that it is effective in reaching the objectives of the organization. The leader and
manager are supposed to work together in the business environment to reach the
development and revenue of the company. The leader and manager have cooperation
in working together and guide the employees to reach the goals. The manager trains the
employees with professional and personal skills for the effective management. The most
important skill of the manager is time management. The manager assigns different task
to different department of the company to complete the process within time. The
leader influence and motivates the employees to complete the task within the time. The
leader arranges the training programs to the employees to complete the task of the
organization. The leader and manager have good communication with every employee,
suppliers, stakeholders and the consumers of the Vodafone.
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3) British telecom
Following is the role of leadership and management of British Telecom:
Introduction
British Telecom, a European provider of telecommunication services, serves 29 million
business and residential customers in the United Kingdom alone. The past three years
have represented a tumultuous time for British Telecom, as organizational governance,
regulatory initiatives and technological innovation have completely driven the
restructuring of the organization. Paul Reynolds, CEO of British Telecom Wholesale,
presented “Growth Through Transformation” at the 21st Century Communications
World Forum in London. He said, “We are facing the fourth major wave of innovation in
our industry and it will require change on a massive scale. There are real opportunities—
and threats. However, we at BT believe the risk of doing nothing as the economic and
technical sands move beneath our feet is even greater. We’re aiming high. Our goal is
moving BT from an incumbent telephone company to a networked IT services and
solutions company fit for the 21st century. Embracing the IP future requires large scale
investment and adoption of new skills, organizational challenges and new behaviors.”

Leadership and Management

(Alliance News) - BT Group PLC on Monday said it will create a new technology unit,
Digital, focused on next-generation services for the telecommunication firm's
customers.
London-based FTSE 100 company BT Digital will lead the company's digital innovation
agenda effective April 1 and will focus on developing and quickly delivering innovative
products, as well as platforms and services for "key areas such as healthcare and data".
Harmeen Mehta will join BT from Indian telecommunications provider Bharti Airtel in
order to lead the new unit. She has been named as BT's chief digital & innovation officer
and will report directly to Chief Executive Philip Jansen and as a member of the
executive committee.
BT named Howard Watson as chief technology officer and also announced the
formation of a non-executive technology advisory board consisting of "recognized
industry experts" that will meet three times per year.
Members include Daniela Rus, director of the Computer Science & Artificial Intelligence
Laboratory at MIT, and Wendy Hall, who co-founded the Web Science Research
Initiative in 2006 alongside Tim Berners-Lee and Nigel Shadbolt.
Mike Sherman, chief strategy & transformation officer, will leave BT after three years
with the firm.
BT Chief Executive Philip Jansen said: "The creation of BT Digital will enable us to focus
on the areas where we can have the greatest impact, delivering digital platforms that
bring together best-in-class services for our customers, and fully embracing new
technologies such as AI and machine learning."[ CITATION htt2163 \l 1033 ]
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4) Microsoft
Following is the Leadership and Management of Microsoft:
Management and Leadership in Microsoft
Management and leadership are two significant components of a healthy organizational
culture. The organizational culture, such as the work place settings or set-ups of small or
big companies, could not function without the theories and applications of management
and leadership concepts. While these two ideas are interchanged or differentiated, it is
undeniable that the organizational culture depends so much on an effective, relevant
and beneficial understanding and implementation of management and leadership.
Creating and maintaining a healthy organization culture needs adherence to the
standards of shared respects, convictions and theories of how the top to bottom
members of a company need to behave and work. Hence, with an aim and role to
recognize how companies work and evaluate how things are being done, management
and leadership are indeed important in developing and sustaining a healthy
organizational culture.
An effective effort to evaluate and apply management and leadership in a healthy and
powerful organization is to make Bill Gate’s Microsoft Corporation as an example. The
advent of Microsoft has introduced the importance of the Windows Software in the
information technology industry and to the organizational culture in general. Microsoft
was regarded as a company because the company’s technical as well as managerial and
leadership efficiency has influenced and dominated the IT business. Hence, the
manifestation of management and leadership to the organizational society of Microsoft
Corporation is a worthwhile understanding that clearly presents the two concepts.
Management and Leadership, An Overview
 While in most instances they are perceived to be similar, management and leadership
are definitely two varying ideas. According to Blair (1996), leadership is only one of the
many attributes and assets of a powerful and successful manager. Since the primary
purpose or objective of management is to capitalize on the productivity of a company by
using administrative or managerial application, managers need to organize, plan, control
and direct the personnel (Blair, 1996). Hence, leadership is only one significant factor of
the directing role of a manager. However, since management is not tantamount to good
leadership, it is necessary for a manager to have a formal power in order to confidently
exude effectiveness in his or her managerial style or way. In essence, this has made
management the most essential part in an organizational culture. This is because it is
through such component that the company’s mission, vision and overall position are
determined (Blair, 1996).
Leadership, on the other hand, is not necessarily required in an organization. There are
instances where a leader is not significant in a self-directed and self-motivated
company. This is for the reason that having a leader may turn out to be detrimental to
the organization rather than an asset or that the groups within the organization
perceive a leader’s style to be domineering. Due to the established idea that a leader is
not a required member of an organization, leadership then is also regarded as a mere
advantage but not a necessary component of management. Additionally, management
is normally composed of experienced people who have reached their status in the
company through hard work and expertise. The manager knows how things work in the
organization basically because he or she has knowledge of every layer of an organization
including its technical aspect. A leader, in turn, is someone who was only designated to
guide other personnel because his or her fresh concepts were recognized by the
management or the company. However, this does not necessarily mean that a leader is
well-experienced nor has the wisdom to push for the expected or eventual growth of
the organizational culture (Brail, 1996).
In a healthy organizational tradition, management characteristics such as an
authoritarian or transactional manner, a work focus to have things done and a
comfortable background in life are essential. Likewise, leadership features such as the
charismatic manner of inspiring people to follow, a work focus on the people and an
attitude that is risk-seeking are what the culture expects from designated leaders
(Changing Minds Organization, n.d.).
Online Management and Leadership
            Bateman and Snell (2007) discussed how management and leadership are
manifested in today’s modern world that is influenced by the power of internet. Calling
it the new competitive landscape, the two authors said that the concepts of
management and leadership are affected by the modifications and advancement of
online communication technology. They added that the internet as a means of
communication alters the manner the thoughts and actions of managers and leaders.
These changes are proven in the way they design strategies to leading and encouraging
the members of the organization. The two clarified that managers still manifest the
general characteristics such as being strategic, powerfully interpersonal and with high
regard to personnel. However, these attributes are transferred and are applied to the
Internet world (Bateman & Snell, 2007).
The two further wrote on the nature of Internet business where many online
organizations come and go, with some die naturally while others survive and eventually
achieve stability in the industry. Bateman and Snell also presented several online
companies especially how their respective organizational managers and leaders exert
efforts to keep abreast with the technological and financial challenges. Aside from this,
they likewise mentioned Microsoft Corporation’s management and leadership styles or
implementation. In particular, how the organization and its main strategist Bill Gates
used techniques such as outsourcing, downsizing of employees and merit system were
also mentioned by Bateman and Snell. These strategies, the two said, are significant
managerial and leadership strategies that made Microsoft Corporation survive and
dominate the software business. They added that the said techniques also enabled
Microsoft Corporation create and maintain a healthy organizational culture (Bateman &
Snell, 2007).
Difference Between Management and Leadership
In discussing the difference between management and leadership, Bateman and Snell
wrote that the philosophy of leadership is characterized by the lack of decision-making
which is a function attributed only to management. This is because while the primary
function and obligation of leaders are to influence or encourage people to follow, the
nature of the roles and responsibilities of organizational manager, who are tasked to
strategize for the company and ensure that things are done, set them apart. As such,
the function of managers also includes efforts to ignite high performance level among
personnel in order to create and maintain a healthy organizational culture and
eventually benefits the company in general (Bateman & Snell, 2007).
Management and Leadership in Microsoft
In the organizational culture of Microsoft Corporation, management and leadership are
two equally important components for the success of the company. Although the two
are differentiated in nature, the management, which is headed by the company’s main
operator Bill Gates, exercised his full authority over the company and the overall status
of the organization. Being at the helm of the company, Gates is not only the main man
behind the management’s decision and overall operation but also acts as the primary
technical expert of the company. In fact, as Microsoft’s top manager or Chairman, Gates
has also promoted the company’s President Steve Ballmer as the new Chief Executive
Officer or CEO. Despite this development, Gates remains to be Microsoft’s Chairman but
assumes a fresh position as the Chief Software Architect. Industry experts and Microsoft
personnel noted that the new title of Gates will allow him to continue his foremost
concern as well as enable him to enjoy while working and excel at his expertise at the
same time (Reh, n.d.).
Additionally, Microsoft’s management depends on its leaders who function in support to
the general benefits of the company. With a general mission and values to assist people,
industries and other sectors worldwide to achieve and realize their respective
technological full potentials, (Microsoft Corporation, 2008) Microsoft Corporation is by
far the concrete example of how management and leadership complement each other
in a healthy organizational culture. Also read about "Contemporary theory of
management"
The Microsoft management and leadership reshuffle was made as an effort to activate
more the company as it ignites its development and competition with other fast growing
rival companies such as Google (Lohr, 2005). In maintaining the healthy and competing
organizational culture of Microsoft Corporation, the company’s previous seven industry
units, which were broken into three divisions, are now headed by executives each
carrying President as their titles. The purpose behind this management and leadership
reorganization is in order to push additional decision-making within the mainstream
businesses of the company. In effect, this means that Gates and Ballmer are now
delegating more power or authority to the people under them or what are called their
chief lieutenants. With the more identified positions as well as roles and responsibilities,
the organizational managers and leaders of Microsoft Corporation now portray the roles
of exploiters. Hence, the company’s managers and leaders are faced with a function to
exploit the company’s development chances and limitations for the coming years. This is
particularly when Microsoft Corporation introduces an array of new services and
products such a fresh version of the Windows software operating system, an
improvement of the company’s Office productivity suite, developer materials and the
new generation of Microsoft’s video game console (Lohr, 2005).
Additionally, the move which was tagged as the combination of services and software
expertise of Microsoft Corporation specified the roles and responsibilities of the
company’s managers and leaders. These include managers and leaders who have been
long in the company and those who have just taken in from other companies. These
managers and leaders include the founder of software technology now acting as the
company’s chief technology officer who will have an overall supervision of the software
and services techniques of the company. Lohr noted that the reshuffle addressed the
problem of having managers and leaders who will be in charge of the deep technical
requirements of Microsoft. The company recognizes the fact that it is significantly
essential to have superior managers and leader to lead the company in the software
industry. The organizational managers and leaders of Microsoft Corporation, therefore,
are tasked to push the technology and service agenda of the company (Lohr, 2005) You
can also read about relationship between power and leadership
Management Functions
The management of Microsoft Corporation has effectively exemplified the four
functions of organizational managers such as to organize, plan, control and direct the
personnel of the company. This management functions have enabled the software giant
to create and maintain a healthy and competitive organizational culture. Freifeld (2007)
has written on the reasons behind Microsoft Corporation’s management and leadership
advantage. The authors said that what makes the company’s managerial and leadership
edge is the uniqueness of their functions and the company’s approach. The company’s
level of intentionality which has determined and guided all the undertakings and
activities of the company was specifically noted. In citing the experience of Matthew
Jacob as one of the first leaders of Microsoft, Freifeld wrote that there is nothing
ritualistic in the managerial and leadership program and strategy of the company.
Hence, it is neither a management for management’s sake nor leadership for
leadership’s sake. This is because all that the Microsoft managers and leaders do are
based or grounded in a business context (Freifeld, 2007).
It was further explained that the beginnings and workings of the company’s fresh and
evolving managerial and leadership improvement approach result to a scenario that
pictures the approach as a machine-like strategy. It is depicted as a cautiously
engineered system which a specific role not only to bring out or build organizational
managers and leaders who are just in the company for generic purpose only. The
managers and leaders of Microsoft Corporation are people who are able to develop
their personnel who, in turn, can make the company exactly the type of organization it
wants and perceives to be (Freifeld, 2007). Hence, the management of Microsoft
Corporation functions as a planner when it set a specific goal which is to maximize the
technological potentials of people and organizations worldwide. Aside from this, the
management has effectively performed its other functions such as organization, control
and directing of personnel.
Management and Leadership Strategies
Aside from the approach of blending technological expertise and service, other
Microsoft Corporation’s techniques such as outsourcing, downsizing of employees and
merit system have benefited the company. These strategies are proven to have work to
the advantage of not only Microsoft but other industries as well. This is because today’s
modern world demands and requires for such techniques in order to survive their
respective businesses. The outsourcing done by the company allows its personnel to do
other tasks as their jobs as transferred to others thus the eventual downsizing was
justified. Additionally, the said strategies have paved the way for the company to
enhance its merit system which recognizes the deserving employees of the company.
This, in turn, resulted into more benefits for all the members of the company thereby
benefiting the company in general.
Conclusion
The importance of management and leadership in creating and maintaining a healthy
organizational culture is undeniable. This has been proven in the case of Microsoft
Corporation which was able to influence and create an impact to the software industry.
Due to the fact that the company’s manager and leaders live up to their positions, the
benefit extended to the whole organization. In fact, the company was able to emphasize
the need for management and leadership to complement each other. In essence, this
has determined that management’s efficiency works for the company’s leadership profit
which, in turn, supports the management and leads the people to right path.
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5) Samsung
Following is the Leadership and Management of Samsung:
Samsung Leadership
Samsung electronics is technology based large scale organization. Samsung Electronics
is one of the largest mobile selling companies in the world after Apple. Samsung
manufactures products and appliance which makes the survival of people easier such as
Mobile phone, juicers and many more. Samsung is a large scale organization, so they are
facing with many issue and challenges. Due to these issues, Samsung is facing a drop in
their productivity and products but the most important employees of the company are
not satisfied. So, I identified that Samsung is facing different types of issues which are
skill management among the employees, Lack of motivation and the most crucial issue
of this organization is the turnover of the employees. Detail of these issues is explained
in the following paragraph. So, according to my opinion, these internal and external
issues of the organization are solved with the help of leadership. Every organization
needs a leader who has an ability to lead the group. For executing the vision there must
be need of a definite plan and strategy. So, according to me, a leader of the organization
has followed a certain leadership style for the betterment of the working environment.
So, the recommended styles of the Samsung are Transformational Leadership,
Transactional leadership, and Team Leadership. So, in this assessment, there is a brief
discussion about how these leadership styles are best for the solving the issues which
are faced by this organization. Moreover, there is also a brief discussion about the
advantages and disadvantages.
The solution for continuous improvement
Issues and Challenges
The organization faces different types of issues and challenges in the workplace. It can
be internal and external. Samsung New Zealand contains a lot of problems in its
workplace such as employees are leaving the organization and production of defective
products. These issues are internal as well as external. So, these issue and challenges are
explained as follows:
Skill Management
Samsung is mainly an electronics company because the majority of their products are
based on electronics. As we all know for technology to compete in the market it must
consistently be developed and innovated. For example, smartphones, Robots.
Therefore, advancement in technology leads to a change in technology after a certain
period of time. So, Employees are facing difficulty with change in techniques which
result in a change in working style. It means they have to learn and take knowledge
about the new change in the workplace. Because the company needs to adopt that
change immediately to march the market needs. So, those way employees feel more
stress and demotivated.
Lack of motivation
The second main issue which Samsung is facing nowadays is Lack of motivation.
Information Technology (I.T) is changing by the day and it is very crucial to work on it.
Because in the workplace of Samsung, employees have to work on radars and in digital
slabs such (Silicon chips). There is a change in working style after a while because of
advancement but all the work remains the same. So, they have to practice the same
work day after day. This practice makes them feel bored which result in stress. So, that
is the reason they feel a lack of motivation in them.
Turnover of employees
The most important issue of Samsung is that their most experienced staff is leaving the
company. They are leaving the company because they are not satisfied with the service
provided by the management. Moreover, they feel unhappy with the less productivity of
the company. In addition, with, in the technical workplace younger employees have
great attitude and knowledge about technology and electronics. So, in other way old
employees are feeling inferior and young worker superior.
The solution for skill management
The main solution for skill management is that employees must be given proper and
regular training from the skilled and experts technicians about the change in working
style due to the change in technology. By getting the training they can do their work
easily and quickly. This training can be formal and informal.
Motivating the employees
Employees must be provided by Rewards and recognition in the workplace. These are
very little things but it works like a magic. By providing rewards and recognition to
employees they feel themselves part of the company and come back to work with
enthusiasm. The organization must find just the best person in term of performance and
provide certification like an employee of the month and employee of the year.
Personality development sessions or Personal Growth Sessions
The main motive of personal growth sessions or personality development sessions is
providing self-motivation and ability to overcome social and internal obstacles (Conger,
1993). In the company personality development sessions must be the arrangement. So
that old employees can feel better with the motivation speech given by from the guest
speaker and does not consider themselves inferior.
Team Leadership
Teamwork becomes more effective when there is a common goal. Samsung should
follow this leadership style because teamwork is very important for the organization.
Moreover, assigning work to the group is more valuable then assigning to an individual.
The advantage of this leadership style
1. More Effectiveness
Team leadership is more effective in the presence of a leader. It is very beneficial for the
organization for sales proposes. Team leader provides training to the staff and provides
training about the conflicts which should be happened at the time.
2. Direction to the employees
Team Leader is like a navigator for the ship. In other words, team leader shows the best
way to get the things done. He can pair the best person with each other to get the best
output.
Disadvantages of Team leadership
Team Leadership includes working in a team alongside leading the team. This is a
disadvantage for this leadership is distraction between the team members. While
leading the team, the leader must have frank enough with the members. So by doing
that there is a chance of chit chatting and other possible distraction can be faced by the
team by working in a closed environment or in close structure.
Employees are the backbone of the organization. They must have treated well by
managers and leaders of the company.
Using leadership styles in the workplace can change the working environment of the
workplace. After getting informal training for Artificial Intelligence (A.I), software and
training of virtual intelligence (V.I) employees of the organization are self-motivated and
have more confidence in their work in the workplace. Moreover, they are more focused
and able to think about new innovations. After getting personal development sessions
employees feels more attached to the organization. In other words, they feel
themselves a part of the organization and have a clear vision about the future of the
company and they have believed they will reach the height of their career within this
organization. Because now they want to leave the company and try their best to
maintain the market value of the company.
Organization culture
Organization culture is a style of employees in an organization. It includes their behavior
and their relation with others in the organization. The cultural dimension which properly
fits under the workplace of Samsung is Individualism and Task oriented.
Individualism
The issue derived from this cultural dimension is a hunger for getting independence.
Individualism like looking after yourself and ignoring other people need on the side.
Samsung is also facing this issue because managers and higher authorities are not
teaming up with other employees. It can say that there is ego issue in the company.
Task-oriented
In task-oriented dimension members of a team does not private (personal) problem.
Their only motive is to get work done in the given time. In Samsung, managers and
leaders are not taking ethical leadership seriously because they just want to get their
work done. It is also a kind of transactional leadership.
In New Zealand, all the business has to follow the guidelines of the treaty of Waitangi.
Treaty of Waitangi is a treaty signed by the British crown and the Maori chief. The
principles of this treaty are Protection, Participation, and Partnership.
According to my perspective, Samsung is not following all the principles of the Treaty of
Waitangi because the principle of protection means the organization needs to protect
the Maori environment and give their best to save their land. But on the other hand,
Samsung is making more and more powerhouses and damaging the land of Maori
people by creating pollution. Moreover, this principle can also be followed if they will
prove employment to Māori people. But there are very less Māori are employed. In
order to fulfill the requirement of the second principle of the treaty of Waitangi,
Samsung is socializing with people in order to generate awareness about cancer and
other harmful diseases. They try to involve all the people of all tribes of New Zealand.
So, that is why they follow this principle. Samsung does not follow the principle of
partnership because they don’t have any partnerships policy.
I personally like Transformational leadership style because transformational leadership
style is more people oriented. Transformational leadership style changes the lifestyle of
the subordinates. They are more connected with their leaders and Managers because
they feel their leader more charismatic and attractive.
Conclusion
To summarize, Samsung is a large-scale organization which manufactures digital
products such as smartphones and other appliance which makes the like of humans
easier. The identified issues of Samsung are Skill Management and a lack of motivation
among the employees because of high work pressure and changes in technology. For
this issue, recommended leadership styles are Transactional Leadership, Transactional
Leadership, and Team Leadership. All these leadership styles can help the organization
to maintain the position of the company in the market. There are some advantages and
disadvantage of the styles such as transformational leadership because it enthuses
temporary motivation and provides a false vision to the employees. Moreover, cultural
dimension plays an important role in the organization. Individualism and Task-oriented
is the best cultural dimension of the organization. In Samsung individualism is a very
important issue among the leaders and managers because independence is an issue for
the employees. Moreover, according to the Principles of the Treaty of Waitangi, all the
companies of New Zealand must follow its principles. Samsung is following just one
principle of the Treaty of Waitangi “Participation”. In the end, I can say that
transformational leadership is the best leadership style according to my perspective. In
this leadership style employees feel more connected to their company.
[ CITATION htt2168 \l 1033 ]

6) HP
Following is the Management and Leadership of HP:
The company Hewlett Packard (HP) is an international acting technology enterprise with
the focus on manufacturing software, hardware and services to individual clients,
corporations, governmental and education sector (cf. HP Inc. 2017: I; HPE Ent. 2018: 3.).
HP had a widespread product line starting enterprise standard servers, computing
devices, networking products, software and IT-consulting services (cf. Glassman / Zell /
Duron 2005: 10.).
Today, HP is structured into two separate companies. HP Inc. is focused on the former
hardware product line (computing products, printers, etc.) and the Hewlett Packard
Enter- prise (HPE). HPE’s strategy is to use “capabilities focused on technology, people
and eco- nomics to enable customer’s digital transformation” (HPE Ent. 2018: 2.). The
current share prices of the two HP companies show high volatility in the share price (cf.
Yahoo Finance 2019; Yahoo Finance 2019a.).
In 2012, no spin-off was conducted and HP was one IT company. HP struggled with
internal structures, significant internal clashes of culture and finding a path to future
success. All of these issues are related to a lack of leadership and change management
skills within the enterprise (cf. Goleman 2011: 3.; Cook / Macaulay 2004: 5).
How could a successful strategic turnaround of HP could be structured and
implemented?
In answering this question, the focus lies on change management and leadership
theories for a successful transformation. The paper is mainly structured in two parts:
Chapter two describes the current state of HP in 2012 taking the dimensions of
challenges, organiza- tional complexities and leadership issues into account. Based on
that insights, a fitting trans- formation plan is derived by using modern leadership and
change management tools.
2 Strategy analysis for the company HP
2.1 Current challenges of HP
In 2011, HP struggled with declining financial performances which was expressed by
19% lower profits and losing market share (cf. Bandler / Burke 2012: 1-2.). This lead to
an in- creasing investor pressure on the company to perform better in the short term.
Simultaneously, HP had to deal with an intensive competition with a strong innovation
ca- pability (cf. Bandler / Burke 2012: 3.). However, HP showed a significant lack of
innovation (cf. Economist 2015). This lead to a vicious circle because HP was also not
able to build up innovation capabilities caused by talent hiring issues (cf. Economist
2015.). This resulted in the need for external acquisitions, but significant investments
could not be financed (cf. Hall 2017). Furthermore, HP had to decide which strategy it
wants to follow. The hardware fo- cused strategy faced a declining market share. The
combination of short term pressure from the investor base and the need to reconfigure
internal capabilities and the strategy made a challenging general condition for HP.
Further disturbances like ongoing law suits against HP (TomorrowNow case) averted to
focus on important decisions.
2.2 HP’s organizational complexities
Modern technology companies established a new form of organizational structure: The
agile organization. An agile organization consists of a network of smaller teams which
are strongly customer-centered. The employees of the different sub-teams are all
committed to one predefined vision (cf. Nadella / London 2018: 5.). Furthermore, it
operates in fast de- cision and learning cycles so that the ability of quickly reconfiguring
structures and strate- gies toward value-creating opportunities is possible (cf. Aghina et
al. 2017: 3.).
However, HP did not establish the required culture and structure to cope with similar
chal- lenges of the modern companies.
HP’s culture is poisoned. HP’s employees were preoccupied with internal conflicts and
power rivalries. Cross-functional collaboration was not accepted (cf. Bandler / Burke
2012: 1-5.). Overall, the culture was damaged by a significant lack of trust between
employees and directors (cf. Bandler / Burke 2012: 13.).
Simultaneously, HP established an efficient and cost-saving driven internal structure.
Even trash pickups were cut (cf. Bandler / Burke 2012: 4.). This Taylorism management
approach was successful in an environment that was stable and predictable. McKinsey
defines this kind of organization as “organizations as machines” (Aghina et al. 2017:3.).
There was a strong hierarchy and efficiency management rationale established and the
business units were clearly silo-thinking driven which led to dramatic misalignments of
the business units. For instance, HP printer software could not be run on HP computers
(cf. Bandler / Burke 2012: 11.). Modern companies are structured like an organism
(flexible and responsive) with strong leadership as the core (cf. Aghina et al. 2017: 5.).
HP showed a significant gap in terms of an environment fitting structure and culture
which was simultaneously poisoned by internal conflicts.
2.3 Leadership approach of HP’s senior management
Good leadership is directly interrelated with the success of a strategic transformation
pro- gram (cf. Kotter 2000: 60.). The former CEO Leo Apotheker wanted to take HP
towards more software business with focus on big data analytics (cf. Bandler / Burke
2012: 10.). As described in the case, the transformation failed. The leadership approach
of HP is evaluated in five dimensions of failure:
( 1) Not Establishing a Great Enough Sense of Urgency
According to Kotter, the first leadership fault in a transformation is to not seed sufficient
urgency for the change in an organization. Only motivated and committed people can
achieve successful change (cf. Kotter 1996: 4.).
Apotheker did not communicate the urgency in a way that the organization was
committed to the change. The process was “messy and contentious” and even senior
management participants were not aligned to the new strategy (cf. Bandler / Burke
2012: 10.).
(2) Not Creating a Powerful Enough Guiding Coalition
It is essential to build up a change coalition that supports the efforts. This is a process of
a growing fan base of the future state after the transformation (cf. Kotter 2000: 62.).
Apotheker was clearly committed to his own vision for HP and did not seek for different
perspectives (cf. Bandler / Burke 2012: 13.). Kotter says that a transformation need a co-
alition throughout the hierarchy and it has to grow from the senior management down
to the employees (cf. Kotter 1996: 6.). The coalition growth stopped at Apotheker and
an opposi- tion gained participants which finally stopped the change.
(3) Lacking a Vision
The vision of a leader for the company plays a key role in producing change. It helps to
align and inspire large numbers of people dealing with the company (cf. Kotter 1996: 7.).
Apotheker derived a strategy of how to develop HP further, but never defined a clear
vision. The strategy could have been the right one, but the main reason why it was
confronted with resistance was that no one saw a clear vision. A transformation without
vision leads to in- compatible projects and finally to failure (cf. Kotter 2000: 63.).
(4) Not Removing Obstacles to the New Vision
To achieve a high amount of committed people, obstacles have to be removed.
Obstacles can be the structure, compensation systems or middle management directors
who want to stop the proposed change (cf. Kotter 1996: 10.).
HP’s hierarchical and silo-focused structure is not able to vastly change. Apotheker
started with dictating the strategy without reconfigure the internal structure of HP.
Apotheker and his team did not show any supportive or inspiring approaches to
convince the directors to follow his strategy. Apotheker did not realize that fear is one
of the most important feelings in a process of change (cf. Kotter 2000: 65).
(5)  Not Systematically Planning For and Creating Short-Term Wins
People of an organization have to see short-term wins to believe in the long-term
success (cf. Kotter 2000: 65.). Apotheker’s short-term performance was insufficient and
lead to doubts (cf. Bandler / Burke 2012: 10.). The occurrence of leaks show that the
employees did not believe in the strategy and felt confirmed that HP does not follow the
right path. Resistance was built up.
[ CITATION htt2169 \l 1033 ]

7) Dell
Following is the leadership and management of Dell:
Situational Leadership
When people follow leaders because they inspire them, these leaders are known as
transformational leaders. These leaders with vision and passion and can achieve great
things. They motivate people to follow them by their charisma which moves peoples’
enthusiasm and accelerate their energy. Such leaders have a great big picture and
influence followers to see it and work toward achieving their goals. The opposite type of
leaders is transactional leaders who motivate people by reward and punishment. They
are more work oriented and they put clear work structure for people to follow. This type
falls under the leaders who rely on a system of rewards and taxes. When they are
choosing the leader of the group must be set to follow the rules and do what is required
from the leader without discussion, to get in the end the rewards.
Michael Dell Biography:
Michael Saul Dell is the founders, the chief executive officer and the chairman of Dell
Inc. He was born on 23/02/1965 in Houston, USA. He is married with 4 children living in
Austin, Texas in the USA. He is ranked 44 of the richest people in the world with a net
worth of around USD 14.6 billion. (http://en.wikipedia.org/wiki/Michael_Dell)
Michael Dell’s Leadership style:
When Mr. Dell started his own business, he had limited management experience. As his
business started growing sharply, management skills became necessary to drive his
company toward success. Vision is not enough at this stage. This is why he brought his
Lee Walker who was a venture capitalist who provided him with the required
managerial and financial experience. Mr. Walker was Dell’s mentor and helped building
his confidence to become a polished executive. Mr. Dell turned into a charismatic leader
as his knowledge of all parts of the business grew and he motivated people by gaining
their loyalty and respect.
 Mr. Dell used to hang out with his engineers in the early days of his company. He
was known as a shy person. People who worked closely with him described him
and “likable young man who was slow to warm up to strangers.” (Successful
leaders, 1999)
 His experience made him a public speaker as he is known to speak in a quiet
reflective manner. He motivates people with his charisma and aggressiveness.
 His successful leadership is a result of four main strengths:
 His goal was clear and he stayed focus on it.
 He has a strong innovation sense.
 He is a hard worker with a great understanding of his responsibilities. He is
known of his good balance between work and life (family).
 He has powerful vision for the future with a unique business’s philosophy.
Dell’s manages his company directly as a CEO for 20 years where he was known as a
warm guy with good characters for making his staff feel like part of a team. After he
dropped out and Mr. Kevin Rollins become the CEO, Mr. Kevin kept and emotional
distance from staff. In 2007, the board of directors of Dell Inc. agreed that Mr. Dell is
required to glue the team again. He is back as the CEO and changed his way by
introducing a new leadership board. He delegated power and share decision making.
Mr. Dell brought Mr. Kevin on board when the company expanded to have multi
product in multi geography locations to help him manage the company. They started a
new leadership approach of having two CEO’s in one company. Even though there is risk
of conflict but fortunately, it worked well with them.
Dell said: “Lots of places. I’m helping set business strategy and providing clear
performance objectives for the different parts of the business”. He also said “I’m selling
Dell all the time to lots of people: customers, investors, employees.”
Analyzing Dell’s management style showed different ways of leadership. He was
autocratic in his early life where he makes decisions. He became participative when he
started sharing management, first when he started the two in a box style where two
CEO in board leading the company, and second when he introduced the leadership
board after he returned to CEO position in 2007.
The way Mr. Dell changed his style to fit the conditions of his organization showed that
he is following the situational leadership style. However, his style was more affecting
people by his characteristics rather than his way of decision making. People working
with Dell have a sense of loyalty to him. He managed the company since its inception
and was successful leader where everyone liked him. When he left for 3 years,
employees, performance got affected and Mr. Dell came back to gather the team back.
Such charisma and effect on people proves that Mr. Dell is a transformational leader
who guide people by charisma and inspires them to follow his goals.
Characteristics of Dell make him effective Leaders. Following a transformational
leadership style gave him credibility, resulting in the trust and confidence of his people.
Keeping the promises and follows through on the commitments was part of Dell’s
qualities. Dell makes sure that the actions are consistent with the wishes of the people
leaded. He has a clear idea of what others value and what they can do.
Michel Dell creates a trusting and open climate, to help others to be successful and to
feel empowered. He also tried to encourage members to do more. Michel Dell showed
the followers that they aren’t just the figurehead or decision maker. Members respect
leaders more when they show the willingness to work alongside them. They avoid
phrases that cause resentment, reluctance and resistance. For instance, instead of
saying you have to do something, effective leaders request or recommend that
members do something. Characteristics of a Successful Leadership are the person others
choose to follow, provide vision for the future, provide inspiration, make other people
feel important and appreciated and last but not least behave ethically. (Leader Skills,
1982).
Dell has no fear of admitting what he is incapable of. Whenever he misses any skills, he
gets someone capable to the board to help him managing the business. This made him
successful and allowed him to gain experience from those people.
[ CITATION htt2170 \l 1033 ]

8) Saudi Aramco
Following is the management and leadership of Saudi Aramco:
The principles of great leadership are timeless but the challenges orientation such as
globalization, technological advancement, and generational gap are renewed. The
challenges become more complex as leaders have to adjust their leadership approach to
suit with the diverse workforce coordination. Leader development is oriented toward
increasing the individual’s ability to perform in the recent position. Leadership
development integrates the individual within the organization’s social systems,
strategies, and goals (Olivares, Peterson, & Hess, 2007). Burns (1978) noted that leaders
are often categorized according to traits and behaviors, but that leadership preparation
is an organizational development process that requires training specific to an
organization. Brungardt (1997) stated “the study of leadership has been a major
scholarly activity over the last 100 years” (p. 82). Barker (1997), who said “leadership
training has become an industry” (p. 348), supported Brungardt’s statement and
challenged the efficacy of leadership training in view of the training models that were
being used to develop leaders.
Leadership Development
Northhouse (2007) stated, “Leadership is a process through which an individual
influence a group of people to attain common goals”.
Leaders now do not rely upon their legitimate power to persuade individuals to do as
they are told but they take an interest in an interaction with their subordinates or they
raise and widen the interest of their subordinates.
Allen and Hartman (2008) observed that billions of dollars have been spent on
leadership development programs every year, even though “little academic work
connects the theory of leadership development to the interventions used in leadership
development programs” (p. 10). Evidence is also lacking on whether leadership
development has led to advancement that fills the growing need for leaders. Thus, it is
important to increase the understanding of leadership attributes and work styles that
are possessed by successful presidents.
Although this study has investigated leadership positions at a Mid-level, understanding
leadership attributes for positions remains applicable on several levels. The literature
has revealed that there are similarities in leadership development programs, even when
the targeted participants are different (Avolio & Gardner, 2005; Inman, 2009; Knight &
Trowler, 2001; Robinson, Sugar, & Miller, 2010). The landscape is littered with a variety
of ideas on the best way to develop leaders, and college administrators must pick
through them to decide which would have a useful application in their respective
institutions.
When defining leadership development, the distinction between leader development
and leadership development should be made. McCauley and Van Velsor (2005) defined
leader development as directed toward expanding individual capacity, whereas Day
(2001) defined leadership development as directed toward expanding organizational
capacity. Burns (1978) also separated the definition of leadership from the definition of
leader. Leaders were defined by traits and behaviors, whereas leadership was defined as
a process that existed within a context. Even though the definitions were separated,
Burns maintained that, as distinct entities, neither approach can be as singularly
effective as it would be if it were integrated and understood in the context of the other.
The leader offers leadership and leadership is offered by the leader, requiring both the
leader and the leadership to receive due consideration. Brungardt (1997) supported the
distinctions in leaders and leadership; he said that all leadership theories could be
categorized under five general approaches. These approaches included trait, behavioral,
situational, power-influence, and transformational.
Recognizing that different types of individuals pursue leadership development, this
literature review limited the exploration of leadership theories to the trait and
transformational categories. The reason for this is that trait theory addresses the
individual leader’s capacity for leadership according to identifiable characteristics, and
transformational theory reoccurs in the literature as a leadership development program
focus when determining and designing program content (Benezet, Katz, & Magnusson,
1981; Davis, 2003; Hawkins, 2009; Isaac, Zerbe, & Pitt, 2001). Trait theory further
identifies differences and similarities in leaders, whereas transformational theory
further specifies how leadership can be defined. Addressing both leader and leadership
is consistent with the distinctions made by Burns (1978) and Brungardt (1997).
Early trait research conducted by Stogdill (1948) and Mann (1959) identified
differentiating characteristics for those who were leaders, as did later studies by
Gardner (1989). As one of the earliest subjects to be researched under the topic of
leadership, many trait models exist.
These models emphasize the personal attributes of leaders and how combinations of
traits, motives, and skills can predict leader effectiveness. Although there have been
many studies aimed at identifying the common characteristics of effective leaders
(DeRue, Nahrgang, Wellman, & Humphrey, 2011; Kirkpatrick & Locke, 1991), no
definitive predictors have been solidified. Further research revealed that trait theory
could not identify leaders in all situations because it did not consider the context
requirements for particular traits. The presence of particular traits could indicate the
propensity for leadership, but not accurately predict whether individuals possessing
those traits would end up as leaders (Davis, 2003; Kirkpatrick & Locke, 1991). The trait
theory of leadership was founded on the belief that leaders have natural abilities and
attributes that are well aligned for leadership. The assumption was that leaders were
born and not made, allowing individuals to create expectations around their leadership
propensity. Once identification of traits did not prove to be a successful predictor of
effective leadership, researchers shifted, in the 1950s, to study the actions of leaders.
Actions were analyzed according to what leaders did with the personal traits, skills, and
motives that they possessed. The significant difference between these new behavioral
models and trait models was that behaviors can be learned whereas traits are innate.
Within the framework of expectancy theory, one aspect of this study sought to
determine to what participants attributed their leadership success. It was interesting to
discover what traits or behaviors participants identified as important to their success, as
these may serve to reveal how leadership programs can or do serve individuals in their
career advancement. Transformational leadership is often used as the theoretical
backdrop on which many leadership development programs have been successfully
modeled (Ardichvili & Manderscheid, 2008; Benezetet al., 1981), because it views the
leader as the change agent who, either before or after undertaking leadership
development training, can inspire or motivate followers.
Heavy criticism of leadership models during the 1980s led to a leadership gap because
of what was defined as the “performance-cue effect.” When times were good,
leadership was deemed effective, but when times were bad, then leadership was
blamed even if the leadership during both periods was similar. This resulted in a
new type of leadership, labeled “charismatic leadership,” eveloped by Conger and
Kanungo (1987). Based on the Greek word meaning special or divine gift, charismatic
leadership relies on the effect the leader has on followers. Follower commitment stems
from the relationship with the leader, which is one aspect of transformational
leadership. Bass (1985) noted that follower commitment is significant to challenging
organizational goals. The transformational leader presents these goals as a compelling
vision that appeals to followers’ value systems, allowing the leader to then incite
positive feelings toward a new vision. Change occurs when followers reevaluate their
behavior options and become committed to supporting the espoused vision of the
leader. Signaling change, transformational leadership addresses the need for action and
many contemporary scholars, including Bennis and Nanus (1985), Kouzes and Posner
(2007), and Covey and Merrill (2006), have presented the leader as a catalyst for
change.
Medina observed that transformational leadership has become a dominant theme in
leadership studies. The leadership development program under study for this
dissertation has been grounded in transformational leadership theory. Participants in
the study provided information about whether this type of training prepared them for
leadership roles within their institutions.
Expectancy Theory
Expectancy theory (Vroom, 1964) assert on the premise that individuals would execute
of action that resulted in consequences that they believed were likely to occur. The
expectancy theory of motivation provides an explanation as to why an individual
chooses to act out a specific behavior as opposed to another. This cognitive process
evaluates the motivational force (MF) of the different behavioral options based on the
individual’s own perception of the probability of attaining his desired outcome.
Expectancy refers to the “effort-performance” relation. Thus, the perception of the
individual is that the effort that he or she will put forward will actually result in the
attainment of the “performance”. This cognitive evaluation is heavily weighted by an
individual’s past experiences, personality, self-confidence and emotional state. The
degree of effort individuals put toward achieving the outcome would depend on how
much they value the outcome. Being able to predict how much effort individuals would
exert and how much they valued particular outcomes would help to identify the degree
of motivation individuals would direct toward particular outcomes.

Expectancy theory is based on four assumptions (Vroom, 1964). One assumption is that
people join organizations with expectations about their needs, motivations, and past
experiences. These influence how individuals react to the organization. A second
assumption is that an individual’s behavior is a result of conscious choice. That is, people
are free to choose those behaviors suggested by their own expectancy calculations. A
third assumption is that people want different things from the organization (e.g., good
salary, job security, advancement, and challenge). A fourth assumption is that people
will choose among alternatives so as to optimize outcomes for them personally.

The expectancy theory based on these assumptions has three key elements:
expectancy, instrumentality, and valence.
A person is motivated to the degree that he or she believes that:
a) effort will lead to acceptable performance (expectancy),
b) performance will be rewarded (instrumentality), and
c) the value of the rewards is highly positive (valence).

Leaders should try to increase the belief that good performance will result in valued
rewards. Ways of doing so include: measure job performance accurately; describe
clearly the rewards that will result from successful performance; describe how the
employee’s rewards were based on past performance; provide examples of other
employees whose good performance has resulted in higher rewards. In essence, leaders
should link directly the specific performance they desire to the rewards desired by
employees.
Mathibe (2008) used the expectancy theory assumption that people make decisions
based on their expectation that a particular behavior will lead to a desired outcome–to
show the need for balance between employee needs and institutional needs. A synergy
between employee needs and institutional needs was believed to create more
productive tendencies. Identifying goals and clarifying their meaning forges a shared
understanding between the individual and the institution. When individuals know and
understand what is expected,
Mathibe (2008) stated they would be motivated to achieve. In referring to the possible,
as opposed to the actual, the unlocking of potential required identifying what an
individual needed in the form of communication, workload allocation, job standards,
and degree of involvement in decision-making. As is consistent with expectancy theory,
individual perceptions and needs vary and the degree of empowerment offered through
the aforementioned essentials required personalization in order to achieve successful
outcomes. This would allow effort to be directed toward achieving the goals or
expectations without abdicating responsibility or relationships.

Mathibe used the equity element to replace Vroom’s (1964) definition of valence.
Whereas valence was determined to be the value placed on an outcome, Mathibe
believed that a failure to balance the inputs and outputs of individuals acted in the same
way. For example, if something is not valued, the motivation to achieve it will be low,
just as individuals are not motivated to pursue a course of action if they believe the
outcome to be unfair. All of the preceding elements lead to performance, using
expectancy theory to predict that employees would be motivated when they believed
that putting in more effort yields higher levels of performance.
Discussions, Conclusions and recommendations
This study was conducted to examine whether participants from the mid-level
administrators, who successfully completed comprehensive leadership development
program subsequently applied for and assumed leadership positions in their
organizations.
The subject was examined by adapting a conceptual framework from Vroom (1964) that
revealed whether individuals
(a) expected to attain,
(b) believed they were capable of attaining,
(c) valued attaining leadership positions in their institutions.
Based on this results of this study, it can be concluded that the findings of this study can
categorized into three top that were common to all participants in the study. These
topics deal with the design of leadership development programs, participants and their
experiences, institutional involvement, and evaluation of the program.
The findings from negative associations were supported by evidence from the research
(Allen & Hartman, 2008; Griffin, 2003) which indicated potential complications and
shortcomings with leadership development programs, participant preparation, and
institutional involvement would hinder individuals from pursuing leadership
opportunities. As a result, participants with negative associations were less likely to
pursue leadership opportunities than those with positive associations. Although this
may not seem surprising, it indicates that there are practices that could be changed to
improve the likelihood that leadership development participants would later pursue
leadership opportunities. Linking the findings from this study with those from existing
research helps to understand whether participants in leadership development programs
go on to pursue and attain leadership positions. Participants believed what they learned
from the program was relevant to their work environment, and if what they learned
were applied to the workplace, improvements would occur. Unfortunately, most
participants feel that their institutions are not supportive or interested in adopting these
practices.
According to the theoretical framework from Vroom’s (1964) expectancy theory,
individuals will exert effort if they believe they are capable of achieving the outcome
and if they value that outcome. In the case of participants who have attended
leadership development training but are either not sure what the institutional
motivation is for sending them or did not indicate that they desire a leadership
opportunity, the desired outcome is unclear. These participants may still indicate that
they enjoyed the experience, but according to Vroom’s theory, the participant is willing
to work harder toward the goal of pursuing leadership opportunities if participation in
the program is initially aligned with an institutional and personal goal. The first step to
rectify the problem of unclear participant expectations is communicating to potential
participants the reason they are being asked to consider attending the leadership
development program, and they should accept the invitation only if they are interested
in pursuing the possibility of assuming a position of leadership.
Limitations and Recommendations
The limitations identified from purposeful participant selection and data collection
methodology were considered when determining the trustworthiness of the study. All
participants were from institutions in Aramco and all attended the same leadership
development program. This may lead to questions about the generalizability of the
study findings.
Additional research into the study of leadership development program participants is
needed. Such a study could explore whether participants are more effective and
efficient at their jobs, have adopted different philosophies, or have had shifts in attitude
or understanding as a result of the training. For example, it is possible that people who
have received the training will be more sympathetic to and supportive of what
administrators are trying to do than people who did not receive training, who may have
difficulty seeing some issues from an administrator’s point of view.
A further recommendation would be to conduct a comparative analysis of the ways in
which participants are selected to attend leadership development training. A final
recommendation would be to engage participants in determining what sort of
institutional support participants would like to have after they receive the training.
[ CITATION DrI08 \l 1033 ]

9) Berkshire Hathaway INC.


Berkshire Hathaway Inc. is an American multinational conglomerate holding company
headquartered in Omaha, Nebraska, United States.
Berkshire Hathaway traces its roots to a textile manufacturing company established by
Oliver Chace in 1839 as the Valley Falls Company in Valley Falls, Rhode Island. Chace had
previously worked for Samuel Slater, the founder of the first successful textile mill in
America. Chace founded his first textile mill in 1806.[ CITATION htt019 \l 1033 ]
Warren Buffet is the CEO of Berkshire Hathaway INC, which owns more than 60
companies, including insurer GEICO, battery maker Duracell and restaurant chain Dairy
Queen.
The Management of Berkshire Hathaway INC.
Berkshire Hathaway is known to many as the investment vehicle of Warren E. Buffett. To
some extent, this reputation is well founded, given the investment success that the
company has enjoyed under his leadership. Less attention, however, has been paid to
the management success of Berkshire Hathaway.
By 2008, the array of companies that Berkshire Hathaway owned was unique in its
diversity. It included insurance operations (GEICO, General Re, Berkshire Hathaway),
manufactured housing (Clayton Homes), wholesale distribution (McLane), regulated gas
and electric utilities (MidAmerican), and many specialty finance, manufacturing, service,
and retail companies. Even more unique was the operating structure that the company
employed to manage these operations.
It was a model based on extreme decentralization of operating authority, with
responsibility for business performance placed entirely in the hands of local managers.
While many public corporations implemented strict controls and oversight mechanisms
to ensure management performance and regulatory compliance, Berkshire Hathaway
moved in the opposite direction.
The company had only two main requirements for operating managers: submit financial
statement information on a monthly basis and send free cash flow generated by
operations to headquarters. Management was not required to meet with executives
from corporate headquarters or participate in investor relations meetings; nor was it
required to develop strategic plans, long-term operating targets, or financial projections.
Instead, local managers were left to operate their businesses largely without supervision
or corporate control.
Vice Chairman Charles T. Munger described the Berkshire Hathaway system as
“delegation just short of abdication.” Many of the company’s operating principles were
in stark contrast to those generally employed by most public corporations. Company
shareholders would have to decide for themselves whether these operating principles
posed a risk to long-term performance or whether, contrary to expert opinion, they
were a source of competitive advantage that could be sustained in the future. (Note:
This case reviews only the operating principles that govern Berkshire Hathaway. The
company’s investment principles are not discussed, other than the extent to which they
are based on a common philosophical approach).
[ CITATION htt2171 \l 1033 ]
Leadership style of Berkshire Hathaway/CEO of the Company-Warren Buffet
The leadership style of Berkshire Hathaway is known as Laissez-Faire Leadership.
Warren Buffett, the CEO of Berkshire Hathaway and one of the world’s wealthiest
people, is widely considered one of the most successful investors of all time. He is
known for making shrewd and profitable business decisions and for being a suburb
manager (Sorkin, 2011).  It comes as some surprise then that Mr. Buffett employs a
“hands-off” management style, which has worked extremely well for him (Stern).  This
style of leadership is referred to as Laissez-Faire, or delegative leadership, and often
leads to low productivity levels (Cherry).
The characteristics of this style of leadership are:
1. Leaders provide little guidance.
2. Followers have complete freedom to make decisions.
3. Needed resources are provided by leaders.
4. Followers are expected to solve problems themselves (Cherry).

In Buffett’s case, however, this oft-maligned leadership style has had positive effects; by
allowing his managers full autonomy, he has created an atmosphere where his
employees feel confident and motivated by their extreme latitude (Stern).  In Berkshire
Hathaway’s 2010 Annual Report, Buffett states,” We tend to let our many subsidiaries
operate on their own, without our supervising and monitoring them to any degree.
Most managers use the independence we grant them magnificently, by maintaining an
owner-oriented attitude (Stern).”
 
The Laissez-Faire style can work if followers are motivated and highly skilled, but quite
often, this is not the case (Cherry).  Followers that are not highly skilled, competent, or
good problem-solvers often end up failing at their tasks or not meeting their deadlines
(Cherry).   It would seem that Mr. Buffett has the ability to choose highly motivated and
capable managers who thrive in a results-oriented environment.  By choosing whom to
place his trust in wisely, he is able to afford them the autonomy that they need to be
successful.
[ CITATION htt2172 \l 1033 ]
[ CITATION htt2173 \l 1033 ]
[ CITATION htt2174 \l 1033 ]
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