Case for Critical Thinking - 1

John Symond and Aussie Home Loans: how long can charisma last?

1. How has John Symond’s leadership style changed over the years? Answer Earlier, Symond’s leadership style was more energetic, charismatic and actively participated in managing all activities. He had a constant touch with staff members all over the organization. He involved A to Z in all of the managing activities of the business. He also gave motivational speeches to boost the spirit of the employees quoting his own life experiences to salespeople to stimulate them to work with the same zest that he had during his early days. These were the days when Symond took the decisions using his intuition and experience. This style was more like Management by Wandering Around (MBWA). As time passed, his style of managing his business changed as a result of the need for greater coordination and expertise for Aussie Home Loans. After hearing suggestions from experts, he hired other experienced specialist managers to manage his employees. He realized that instead of relying on pure intuition or “gut feeling”, he should rely on proven expertise on managing when it involved taking many decisions. He could no longer meet his employees regularly. This proved to be a blessing in disguise in the end. This only improved the employees’ ability to work independently. The employees improved their efficiency and thereby improving the organization’s revenue.

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2. There is a limit what one person can do to manage the whole of an organization. Only in the beginning it is difficult for the employees to cope up with the change. will enable employees to overcome the difficulties in facing changes in the organization’s operations. Because of the style of managing practised by Symond. The second is increased efficiency. both the organization and themselves could reach rewards in the end. they easily can adapt to changes and work normally. When employees are taught to persevere. Since. The potential benefits are many. What potential problems can you see arising from the changes made at AHL? What are the potential benefits? Answer Among the potential problems that would arise from the changes made at AHL. An overall increase in efficiency and output is imminent in the end. new expertise added into the organization will boost up the decision making process. resistance to change was significant. What was needed was some time and perseverance. 2 . This will happen once the employees come out of the comfort zone which they had developed over years when Symond had a close touch with all these employees. Change Management. The employees found it difficult to move into a working style which involved less or no direct contact with Symond. if practised diligently. As time goes by. the employees of AHL had developed a close relationship with him. it will result in faster accomplishment of projects. One among them is that the employees will learn to work more independently and creatively.

com must find a professionally trained chief executive with a deep background in operations to take the reins. these CEOs must also learn the organization’s operations well.nytimes. Experts even suggested that like so many founders of the other technology companies have done before. Can you identify other examples of charismatic business leaders who have struggled with the transition as they sought to become large businesses? Answer I can compare Symond with Amazon. They must either learn by themselves or step down for other capable operations managers with good background education and experience in to helm the top slot.com’s founder Jeff Bezos. critics have always complained that Amazon.com through his charisma.com/2005/07/10/business/yourmoney/10amazon.3. It is true that charisma alone will not run a company successfully in the longer term. which is more important. He is known for having a great influence among his employees of Amazon. who is also a charismatic CEO. (Source: http://www. but also improves the trust of the shareholders. On the other hand.com needs someone with greater operational abilities than Jeff Bezos.html? pagewanted=all) 3 . Injecting new expertise will not only boost the confidence of the employees. Amazon.

In short. AHL has found a new channel of income. 4 . These are much-needed improvements in the fast changing home loans business.4. In this way. In the case of AHL. In the not so distant future. Do you think that these changes and Symond’s continued focus on innovation and change will ensure the long-term success of John Symond and Aussie Home Loans? Why or why not? Answer I personally feel Symond’s policy of doing changes will work well in the long-term. They have to constantly look out for new technologies and new avenues. many radical new positive improvements have already been taking shape. AHL will be very successful in its business as a result of these changes. they strive to be innovative. The important one being becoming a broker of the loans provided by other banks. Bold steps like the aim to establish a national network of 200 franchised AHL retail outlets in major shopping centres will only boost its overall revenue. Any organization can not be complacent in this competitive world.

to opportunities for rapid promotions both within and between stores.Case for Critical Thinking . It spends nearly $16 million each year on training its 56.000 managers receive formal training each year.building a motivated workforce 1. The opportunity for training and development is perceived as a key motivator for McDonald’s employees. the current CEO of McDonald’s highly encourages his employees to balance between their commitments at work and home. 5 . High performance is also recognized by badges recognising seniority and commitment. Over 4. He also believed that talent and achievement should be recognized based on merit.000 employees across Australia. One example is that he would switch off the lights after 5:30 PM so that the employees must leave the restaurants to go spend time with their families.2 McDonald’s Australia . Apart from this. In what ways does McDonald’s motivate and reward its employees? Answer McDonald’s motivates and rewards its employees by the following ways. He stressed on identifying and rewarding high-performing employees especially female employees.

2. This results in knowledgeable. I see continuous reinforcement theory being practised in McDonald’s. 6 . employees are recognized and rewarded based on merit. The other model that I could imbibe in this case is that of Human Resource Development training given by McDonald’s to all of its employees. By this way. In this way. These reinforced thoughts will influence the employees while they work. By this way positive reinforcement can be given to the employees. highly skilled and highly motivated employees who would only improve the organization’s overall financials and profile. It will act as a guiding principle that forces employees to work with utmost commitment improving overall productivity of the organization. Which theories of motivation best describe and explain these techniques? Answer Continuous Reinforcement Theory is a reinforcement schedule that administers a reward each time a desired behaviour occurs. the thought that promotion and growth is only possible through merit – commitment and hardwork will diffuse into employees’ minds.

http://www. finger fries and a drink. References 1. Any praise from the customers regarding an employee’s performance and service could be rewarded by providing gift vouchers.3.com/2005/07/10/business/yourmoney/10amazon.html? pagewanted=all 7 . If an employee works over-time. Answer Other than the above rewards. he or she can be entitled to have a free McDonald hamburger. apart from the wages. I would suggest using the Law of immediate reinforcement.nytimes. These immediate rewards are more powerful in stimulating employees to work more with the maximum commitment. By this way. all employees ranging from crewmembers to those working in head office can be given instant rewards. including those who serve as crewmembers as well as those who work in head office. McDonald’s could also provide additional rewards to improve employee satisfaction. Provide examples of other rewards that could be provided to McDonald’s staff.