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8/6/2019 OB 2 - A3 - Individual Case Study
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Case for Critical Thinking - 1
John Symond and Aussie Home Loans: how long can
charisma last?
1. How has John Symonds leadership style changed over the years?
Answer
Earlier, Symonds 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 organizations revenue.
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2. 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, resistance to change was significant. Because of the style of
managing practised by Symond, the employees of AHL had developed a
close relationship with him. The employees found it difficult to move into a
working style which involved less or no direct contact with Symond.
The potential benefits are many. One among them is that the
employees will learn to work more independently and creatively. 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. The second is increased efficiency. There is a limit what one
person can do to manage the whole of an organization. Since, new expertise
added into the organization will boost up the decision making process, it will
result in faster accomplishment of projects. An overall increase in efficiency
and output is imminent in the end.
Change Management, if practised diligently, will enable employees to
overcome the difficulties in facing changes in the organizations operations.
Only in the beginning it is difficult for the employees to cope up with the
change. As time goes by, they easily can adapt to changes and work
normally. What was needed was some time and perseverance. When
employees are taught to persevere, both the organization and themselves
could reach rewards in the end.
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3. 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.coms founderJeff Bezos, who
is also a charismatic CEO. He is known for having a great influence among
his employees of Amazon.com through his charisma. On the other hand,
critics have always complained that Amazon.com needs someone with
greater operational abilities than Jeff Bezos. Experts even suggested that -
like so many founders of the other technology companies have done before,
Amazon.com must find a professionally trained chief executive with a deep
background in operations to take the reins. It is true that charisma alone will
not run a company successfully in the longer term; these CEOs must also
learn the organizations operations well. 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. Injecting new expertise will
not only boost the confidence of the employees, but also improves the trust of
the shareholders, which is more important.
(Source:
http://www.nytimes.com/2005/07/10/business/yourmoney/10amazon.html?
pagewanted=all)
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4. Do you think that these changes and Symonds 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 Symonds policy of doing changes will work well in the
long-term. Any organization can not be complacent in this competitive world.
They have to constantly look out for new technologies and new avenues. In
short, they strive to be innovative. In the case of AHL, many radical new
positive improvements have already been taking shape. The important one
being becoming a broker of the loans provided by other banks. In this way,
AHL has found a new channel of income. 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. These are much-needed
improvements in the fast changing home loans business. In the not so distant
future, AHL will be very successful in its business as a result of these
changes.
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Case for Critical Thinking - 2
McDonalds Australia - building a motivated workforce
1. In what ways does McDonalds motivate and reward its employees?
Answer
McDonalds motivates and rewards its employees by the following
ways. It spends nearly $16 million each year on training its 56,000 employees
across Australia. Over 4,000 managers receive formal training each year. The
opportunity for training and development is perceived as a key motivator for
McDonalds employees. Apart from this, the current CEO of McDonalds
highly encourages his employees to balance between their commitments at
work and home. 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. He also believed that talent and achievement should be
recognized based on merit. High performance is also recognized by badges
recognising seniority and commitment, to opportunities for rapid promotions
both within and between stores. He stressed on identifying and rewarding
high-performing employees especially female employees.
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2. 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. By this way
positive reinforcement can be given to the employees.
I see continuous reinforcement theory being practised in
McDonalds. In this way, employees are recognized and rewarded based on
merit. By this way, the thought that promotion and growth is only possible
through merit commitment and hardwork will diffuse into employees minds.
These reinforced thoughts will influence the employees while they work. It will
act as a guiding principle that forces employees to work with utmost
commitment improving overall productivity of the organization.
The other model that I could imbibe in this case is that of Human
Resource Development training given by McDonalds to all of its
employees. This results in knowledgeable, highly skilled and highly motivated
employees who would only improve the organizations overall financials and
profile.
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3. Provide examples of other rewards that could be provided to
McDonalds staff, including those who serve as crewmembers as well
as those who work in head office.
Answer
Other than the above rewards, McDonalds could also provide
additional rewards to improve employee satisfaction.
I would suggest using the Law of immediate reinforcement. By this
way, all employees ranging from crewmembers to those working in head
office can be given instant rewards. If an employee works over-time, apart
from the wages, he or she can be entitled to have a free McDonald
hamburger, finger fries and a drink. Any praise from the customers regarding
an employees performance and service could be rewarded by providing gift
vouchers. These immediate rewards are more powerful in stimulating
employees to work more with the maximum commitment.
References
1. http://www.nytimes.com/2005/07/10/business/yourmoney/10amazon.html?
pagewanted=all
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