Management Skills and Inclusive Leadership Approach of Magna International

The paper evaluates the leadership and management skills of Magna International Inc, one of the renowned manufacturers in Canada. It explores the threats and obstacles in its external environment of Magna International. Magna has been promoting efficient management styles along with an inclusive leadership approach which enhances the company’s growth and profitability in the automobile sector.

Running head: INTRODUCTION OF MANAGEMENT
INTRODUCTION OF MANAGEMENT
Name of the Student: KIRANDEEP KAUR
Tutor Name: JEFF KAWALILAK
COURSE - MGMT1101
Name of the University:
Author note:

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Executive Summary
Business domain in recent times has been undergoing rapid and advanced technologies of
production along with new interest of consumers. Organizations operating in varied domain
however tends to encounter several forms of challenges and opportunities. Such challenging
determinants leverage managers to adapt new management styles and promote specific
leadership approaches which will facilitate companies in attaining greater degree of success. The
following paper provided inclusive insights of the way Magna International that is recognized as
one of the prominent automobile companies in Canada has been promoting efficient management
styles along with an inclusive leadership approach which enhances the company’s growth and
profitability in the automobile sector.

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Table of Contents
Introduction......................................................................................................................................5
Discussion........................................................................................................................................5
Magna’s Management Skills.......................................................................................................5
Magna’s Adoption of Inclusive Leadership Styles......................................................................7
External Environment Analysis...................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

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Introduction
Organizations need strong leadership for optimum efficiency. Leadership is identified as
a trait which is both inbuilt and can further be attained. With the transient nature of
contemporary managers and the ever rising developments in economy landscape, exhibiting
effective leadership skills is regarded as highly critical (Choi et al., 2015). The discipline of
organizational leadership is fundamentally focused on transferable leadership competencies
regardless of any industrial domain or role and responsibilities applicable in managing as well as
leading teams (Blomme, Kodden & Beasley-Suffolk, 2015). The following paper will evaluate
the leadership and management skills of Magna International Inc, one of the renowned
manufacturers in Canada. In addition to this, the paper will explore the threats and obstacles in
its external environment of Magna International.
Discussion
Magna’s Management Skills
Magna is a company of entrepreneurs which is committed to delivering new and
improved mobility solutions. The company believes that strong and determined corporate
governance practices are fundamental to fostering stakeholder trust and confidence and
significant management accountability. Choi et al., (2015) have revealed that Magna instead of
pursuing a conventional mission statement embraces a unique approach by establishing core
principles in their responsibilities within their corporate culture. Furthermore there can be
witnessed certain uniqueness within the company’s cultural patterns stating that Magna does not
have any revenue sharing plans and puts 10% of pre-tax revenues into employee delayed stock
plans. Meanwhile Blomme, Kodden & Beasley-Suffolk, (2015) has stated that Magna has been

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efficiently offering job counselling, knowledge development sessions along with employee
assistance programs in order to encourage its employee’s needs and demands of having the most
effective fit with the organization. A fair treatment principle promoted by Magna further states
that the business organization will only base equal opportunities on the performance level of
employees as well as its credentials by sternly disregarding any acts of biasness or discrimination
(Magna.com, 2018).
Quality Management
Furthermore, to reinforce the reliability of the employee agreement, Magna has
efficiently implemented an individualistic internal hotline accessible to the entire workforce.
Through such an efficient internal hotline employees with certain forms of grievances can use
this tool to report any form of incompetence of the company (Magna.com, 2018). However in
Corporate Constitution, the Magna would require management skills to successfully strive and
sustain a minimum profit performance. As per reports by McClintock et al., (2018), Magna’s
comprehensive earnings are in $1531 as estimated in 2015. Magna’s management skills further
rely on its area of operations management whereby it deals with high quality standards along
with quality implementation. Such performance is further based on the level of customers’
expectation as well as automobile market requisites. In such scenarios, Magna’s operation
managers employ a wide-ranging set of quality standards for all products with minor differences
on the basis of product types, tools and models (Denning, 2016). For example, asccording to
Maak, Pless & Voegtlin, (2016) universal quality standards are identified to be practical in
relation to the margin of errors as well as quality of raw materials which are used in
manufacturing Magna’s automobiles.
Supply Chain Management

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Author stated that the primary objective of Magna is to essentially capitalize on the
efficiency of supply chain management by offering resolutions to operational threats and
obstacles (Grant, 2016). Such limited accessibility tends to reduce the level of productivity and
competence in automobile and part manufacturing. Thus in order to prevent any lack of
productivity, managers of Magna has been proficiently implementing strategies which would
develop the supply chain management of the company. For example, as per the view of
McClintock et al., (2018) programs for transparency as well as cooperation have the propensity
to align supplier’s growth and capabilities with Magna’s growth as well as supply needs. Such
programs however are incorporated in Magna’s corporate social responsibility (CSR) strategy
with suppliers which are considered as a stakeholder group. Meanwhile, reports by
(Kowalkowski et al., 2017) reveal that Magna’s supply chain is highly dynamic through a
proactive approach. This proactive approach has been addressing several areas of concern which
are linked to the factors of external environment in the automobile sector in which Magna
operates (McClintock et al., 2018).
Magna’s Adoption of Inclusive Leadership Styles
Magna with its major business operation in Canada realizes the value of diverse
workforce. As per the company, a varied employee base acts as a primary sources of competitive
advantages (Choi et al., 2015). Magna’s organizational structure shares a universal characteristic
which signifies a support to diversity to create a unified as well as inclusive global cultural
pattern. The company according to Blomme, Kodden and Beasley-Suffolk, (2015)efficiently has
been positioned among the most varied and diverse automotive business enterprises along with
its toughest competitor General Motor. The company has been approaching towards
technological innovation in order to accomplish customers’ demands around the world with a

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range of industry-leading automobiles along with an elevating range of cutting-edge mobility
solutions such as car-sharing programs. Choi, Tran and Kang, (2017) have stated that in the
global context, organizations can characterize inclusiveness as visible and invisible variations
and leadership approaches. Inclusive leadership approach is regarded as an excellence of
organizational environment which tends to maximizes as well as control varied talent and skills
along with the perceptions of the employee base (Choi, Tran & Kang, 2017). Magna
International has been efficiently focusing on establishing a significant culture of inclusion
which offers customers, employees as well as community through forms of innovation, talent
improvement, and responsiveness and successfully outreach for people who belong to the
disability section of the society (Randel et al., 2018).
Relationship between Diversity and Inclusion
Source: (Maak, Pless & Voegtlin, 2016)
However Choi et al., (2015) have noted that through inclusive leadership, the leaders’
role is regarded to be crucial in successfully driving performance in a diverse and inclusive
environment such as Canada. Reports reveal that traditional teams which have been created with

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no specific emphasis or value on inclusion functions at standard levels. Magna as a result due to
its inclusive approach experiences elevated threats as well as opportunities. However the
company also exhibits high level performance as Magna’s leaders efficiently drives role and
performance though inclusive leadership approaches (Blomme, Kodden & Beasley-Suffolk,
2015). Furthermore, essentially focusing on inclusion of Magna International in Canada initiated
with efficiently developing forms of cultural agility among the workforce that signifies the
ability to efficiently navigate, communicate as well as operate in highly diverse cultural contexts.
Booysen, (2014) have further revealed that Magna employees across the company have been
engaging in self-driving vehicle design workshops with engineers in order to successfully
provide important perspectives on behalf of the disable community.
External Environment Analysis
Political Factor- Magna International recently has been encountering obstacles of governmental
promotion of public transport along with other activities. For example, such an external factor
tends to encourage customers to use shared transportation such as trains as well as vehicle-
sharing programs and potentially reducing Magna customers’ preferences of buying automobiles
manufactured by the company (Kowalkowski et al., 2017).
Economic Factor- According to Booysen, (2014) external determinants related to high growth
of emerging markets tends to create significant avenues for Magna International operating in the
Canadian automobile sector and further extend its areas. For example, Magna can think of
expanding its dealership web in other overseas developing markets such as India as well as
Indonesia (Javed et al., 2017).
Sociocultural Factors- The socio-cultural factors of Magna creates significant growth avenues
whereby the increasing rate of demand for self-driven cars can proficiently leverage growth

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through sales of such advanced vehicles from the company. For example, ride hailing programs
according to Kowalkowski et al., (2017) can enhance customers’ rate of accessibility to highly
convenient transportation which can corresponds to a potential decline in target consumers’
preference of purchasing new automobiles from Magna International.
Technological factors- Through technological factors Magna can efficiently emphasize on the
value of technological advancement. For example, growing level of implementation of self-
driven cars technology tends to offer significant avenues for the company to offer highly
competitive Magna automobiles with such great expertise (McClintock et al., 2018).
Environmental Factors- Magna has observed a scope to successfully enhance its hybrid
automobiles in order to successfully address the elevating concerns and demands on air quality
effects of automotive emissions. Furthermore as per Denning, (2016), Magna International can
develop its sustainability improvement reputation along with corporate prominence as well as
brand image that is based on the increasing level of interest in the company’s business
sustainability.
Legal factors- Magna International in relation to legal determinants indicates to severe
emissions regulations as significant opportunities and scopes for the automobile company to
improve its manufacturing process (Grant, 2016). For example, integrating advanced as well as
emerging safety laws and regulations in product design and manufacturing further ensures high
level of compliance and further amplifies the value and significance of Magna International that
operates as a renowned automobile company in Canada (Maak, Pless & Voegtlin, 2016).
Conclusion
Therefore from the above discussion it can be stated that several environmental forces
could potentially leverage the competence and productivity of Magma as well as its ability to

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accomplish its mission statement. However while the company has gained success in
accomplishing its profits and revenues over time to execute the promises mentioned in the
company’s corporate constitution it still remains to witness the approaches Magna will employ to
thrive in the automobile sector.

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References
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of work engagement: Creating a conceptual framework for management implications and
research. Journal of Management & Organization, 21(2), 125-144.
Booysen, L. (2014). The development of inclusive leadership practice and processes. Diversity at
work: The practice of inclusion, 296-329.
Choi, S. B., Tran, T. B. H., & Kang, S. W. (2017). Inclusive leadership and employee well-
being: the mediating role of person-job fit. Journal of Happiness Studies, 18(6), 1877-
1901.
Choi, S. B., Tran, T. B. H., & Park, B. I. (2015). Inclusive leadership and work engagement:
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Denning, S. (2016). How to make the whole organization “Agile”. Strategy & Leadership, 44(4),
10-17.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
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Magna.com. (2018). Home. Retrieved from https://www.magna.com/
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