Organizational Behavior Dissertation | Assignment

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OrganizationalbehaviorMasters DissertationRKC, March 2018Student ID number:1550809Module name:Intro, Chapters 1-5 - DRAFTAssignment title:Masters DissertationAssignment deadline:Effective number of words used:ContentsChapter 1: Introduction:..............................................................................................................................3Background of the Organization:.............................................................................................................5
Background of Research Topic:...............................................................................................................5Thesis Statement:....................................................................................................................................7Research Aims and Objectives:....................................................................................................................7Research Objectives:...............................................................................................................................7Research Questions:................................................................................................................................8Scope of Research:..................................................................................................................................8Limitations of Research:..........................................................................................................................9Chapter 2: Literature Review:....................................................................................................................10Styles of leadership:..............................................................................................................................10The Public vs. Private sector leader:......................................................................................................11Theories on leadership:.........................................................................................................................14Summary:..............................................................................................................................................18Chapter 3: Methodology:..........................................................................................................................19Data Collection Methods:......................................................................................................................19External and Internal Factors affecting the organization:..................................................................19Leadership Theories:.........................................................................................................................19Personality traits of Managers:..........................................................................................................19Data collection process:.....................................................................................................................19Data Analysis Methods:.........................................................................................................................20Secondary Research Analysis:............................................................................................................20Case Analysis:....................................................................................................................................20Chapter 4: Results:....................................................................................................................................21Organizational Situation Analysis:.........................................................................................................21SWOT Analysis:..................................................................................................................................21PESTEL Analysis:.................................................................................................................................24Leadership Traits Analysis:.....................................................................................................................25Transactional Leadership Theory:......................................................................................................25Transformational Leadership Theory:................................................................................................26Behavioural Leadership Theory:........................................................................................................26Contingency Leadership Theory:.......................................................................................................26Trait Leadership Theory:....................................................................................................................27Great Man Leadership Theory:..........................................................................................................27
O.C.E.A.N Big Five Personality Theory:..............................................................................................28Strategic Decision-making Analysis:......................................................................................................29McKinsey’s 7-S Model:.......................................................................................................................30Chapter 5: Conclusions:.............................................................................................................................33Bibliography:.............................................................................................................................................35Chapter 1: Introduction:The researcher studies the impact of leadership and strategic decision-making on the growth andsustainability of an organization. The success of leadership also depends on the context and the scenarioin which the leader is required to offer his leadership. For example, a manager who has workedpreviously in a public organization and has been an extremely successful leader in the organization
might not be able to offer the same quality of leadership in a private organizational setup and culture.This is implied as the work culture of a public-sector organization is entirely distinct from that of aprivate firm. This occurs primarily due to the separate business motives of public and private sectorfirms. In case of the public-sector organizations the focus of the management is not on the making ofprofits. It is rather based on serving the people of the country with a variety of products and servicesthat will help them in different aspects of life. The idea is to ensure that the services and products thoseare offered to the customers are ethical, fair and just because the people of the country are paying taxesfor various products and services that they are purchasing from different private and public-sectororganizations.The citizens of the country expect that they receive true and fair products and services from the publicorganizations in return for the taxes they are paying to the government. Therefore, the managementpersonnel have the focus to offer the services to the people as per their desired expectations. The publicorganizations do not focus much on the profitability and therefore, the minds of the managers are nottoo much inclined towards profitability and extreme competition. In case of the private sector firms thesituation is entirely different. The primary objective of a private sector firm is to make profits and ensuresustainability. The customer service is definitely important to the private sector establishments howeverit is not the primary focus of the firm as the objective that gains precedence in case of private sectororganizations is the profit-making. Therefore, it is extremely essential for an organization to understandthe impact of the leadership style on offering prudent managerial decision-making. It is always advisablefor an organization to recruit leaders from the same background for ensuring that the leader is able tounderstand the nature of the business and the organizational objectives effectively.The research questions were developed to address leadership. They are divided into the Primary and theSecondary Research Questions.The research focuses on leadership, decision-making, and their impacts on sustainability of anorganization. The research attempts to discover the various traits and characteristics of leadership interms of the ways it differs between the managers in the public and private sectors. The researcher alsoattempted to determine the impacts of leadership traits on managerial decision-making along withfinding out the impact of managerial leadership on the sustainability of an organization. For thisparticular research study, the case of a medical device group has been investigated. The companymanufactures and sells various emergency drugs and medical devices in around the world. Theorganization markets its products across all continents with focus on the US, China and a few otherAsian countries. Three years back, the company has entered into a merger with one of its suppliers andafter that some issues have emerged related to the quality of some of the medical products thoseneeded to be recalled. There was some lack of managerial leadership and effective decision-making thatwas observed following the appointment of a new Chief Executive Officer (CEO). A CEO that wasappointed as the head of the newly formed company.This decision to appoint a new CEO was later on speculated to be non-effective and counter-productivefor the organization. The current CEO belonged to a governmental organization that was a part of thenon-profit seeking sector of the industry. The individual lacked the managerial leadership and decision-
making skills required in a much competitive private sector. Moreover, the CEO was not a person fromthe medical background and was not able to provide an impactful and goal-oriented leadership in thisnewly formed organization. The leadership skills nurtured and developed in the public-sector are quitedifferent than those needed to direct a private sector organization which has more competitive,dynamic, and different work culture. Prior researches have revealed that qualities and traits of leaderstend to differ across the public and private sectors because of several factors like difference in businessobjectives, work culture, employee relationships and others[ CITATION Jon10 \l 16393 ]This makes itchallenging and difficult for a person coming from the public-sector to provide effective leadership in aprivate sector organization. This is the same scenario with the organization referred to in thisresearch.Background of the Organization:The organization referred to in this research study is an enterprise that deals with the production anddistribution of various medical devices and emergency medicines across the world such as the US, China,and many other Asian nations. The medical devices industry is booming across the globe with theunprecedented growth and advancement in technology in this sector and the market opportunities areincreasing every year as the overall market awareness about healthcare products have increased overtime[ CITATION Shi14 \l 16393 ]. The organization has recently undergone a change where it hasentered into a merger and acquisition with one of its American suppliers. This has called for a change inthe management strategies and organizational structure. The new CEO of the organization happened tobe one of the existing shareholders of the company who has been appointed as the CEO based on hiswarm relationship with the current management and good reputation. He belonged to apublic-sectororganization and lacked the experience and expertise to lead in a private sector enterprise. Moreover,he was not from the medical background and therefore, there were some emerging issues related to hisstyle of leadership and organizational decision-making. There have been several issues related to thequality of some of the products sold by the company of late.This has been attributed to the lack of proper management and leadership from the top-levelmanagement under the new CEO that has been responsible for lack of adequate employee motivationand that culminated into some unethical actions taken by some management personnel like purchasingof low quality of raw materials to enhance profitability. Therefore, the research has been undertaken todetermine the areas where the leadership and management under the new CEO has gone erroneousand a number of bottlenecks has emerged. Now, the management is thinking of enhancing the revenuethrough growth in new market segments by reducing overall cost of sales and raising profitability. Themanagement also wishes to optimize the marketing and business development departments by creatinga single marketing department serving across all the different territories of the business. Themanagement has plans to enhance the investment in research and development such that newtechnologically upgraded products might be produced and sold in order to achieve growth andsustainability in the dynamic market environment. The management has also planned for reducing theproduction cost and starting up a new production facility in the US and open up new sales branches inthe Indo-China markets
Background of Research Topic:The research addresses various concepts of leadership, organizational decision-making andorganizational sustainability. The researcher attempted to establish a link between the managementleadership, its impact on decision-making, and the organizational sustainability. This chapter reviews theconcepts in detail.Organizational Leadership:Leadership is one of the key elements that determine the future of an enterprise. Every enterpriserequires effective and strong leadership for achieving optimum effectiveness. Organizational leadershipencompasses human psychology along with prudent business tactics. The leadership that is provided bythe management personnel or the managers within the organization needs to be relevant to the currentbusiness dynamics. Leadership should ensure that it is able to guide and motivate the subordinates intough times of the organization and yet be able to make the business grow and sustain amidst suchcrisis[ CITATION 16P14 \l 16393 ]. An effective leader should be able to implement proper control andcoordination among the group members such that they obey the instructions. In this regard it should beunderstood that organizational leadership is not about dominating and dictating the subordinates. It ismore about offering guidance and direction to the subordinates such that they are able to understandtheir respective job responsibilities and able to achieve their individual goals and objectives along withthose of the organization. Therefore, an efficient organizational leader should be a selfless individualwith the focus on being the mentor, role model and the one that leads from the front. This will inspirethe juniors to look up to him and respect him as an able leader in the organization[ CITATIONMan1715 \l 16393 ].Different forms of Leadership:Leadership in organizational context can vary by type depending on the personality and attitude of theleader. The most popular types of leadership are theAutocratic, Democratic, Transactional,Transformational, Laissez Faire, and Situational.The researcher elaborates on these types later in thispaper.Differences of Leadership in Public and Private Sectors:Leadership traits are found to differ across the private and the public sectors. This results fromdifferences in the goals and objectives of public and private sector organizations. Some of the majordifferences include the strategies such as, for a private sector firm, the emphasis is on generating themaximum possible financial returns on investments for the benefit of the stakeholders[ CITATION Get17\l 16393 ].In the case of the public-sector organizations, the main business motive is to offer variousproducts and services for the benefit of the public. Profitability is not the primary objective of this typeof organization. Apart from this, the private sector organizations are found to have more clearly definedobjectives focused on enhancing profitability as compared to the public-sector enterprises where theclarity of goals and objectives of the employees is much lower[ CITATION Get18 \l 16393 ].This is one ofthe prime reasons behind the form of leadership varying between the private and the public sectors.The other major area of difference between leadership traits in public and private sector organizations is
the stakeholder expectations. In the case of the public-sector organizations, the major stakeholders arethe public or the citizens of the country[ CITATION JDu13 \l 16393 ]. Their expectation is to make themost efficient use of the tax money that they are paying to the government. They expect products andservices designed to suit their needs and demands directly from the government. On the contrary, thereare several stakeholders in respect of a private sector firm such as investors, suppliers, employees,customers, etc.Handling the demands of the stakeholders is much more challenging and requires muchintricate and varied strategy to satisfy the demands of each one of them. Thus, leadership traits andcharacteristics need to differ in case of handling stakeholder needs in case of public and privateorganizations[ CITATION Joh132 \l 16393 ].Organizational Decision-making:Decision-making is one of the key functions of a manager in an organization. Some key strategicdecisions are undertaken by the management personnel. The others must be addressed by themanagers on a regular basis in their respective departments within the enterprise. This decision-makingprocess needs to be done in several phases sequentially in order to ensure that it culminates into aprudent strategic decision in the end. There are seven steps involved in a prudent decision-makingprocess. These steps would be discussed in the literature review.Leadership and Organizational Sustainability:Modern organizational leadership should culminate into achieving long-term sustainability of not onlythe organization but also its various stakeholders. Managerial leaders should play the role of sustainableleaders. It refers to the managerial decision-making and strategies focused on the well-being of thevarious stakeholders such as employees, customers, investors, suppliers, and others. The objective ofthis form of leadership is not restricted to profit making and achieving of personal objectives only, butalso achieving a holistic sustainability for the organization and all its stakeholders. An organizationoperates within the society and community and therefore, leadership should endeavour to ensuresustainability and development of the society, community and environment as a whole. This hasbecome an important aspect of managerial leadership, especially in this era of globalization[ CITATIONLig14 \l 16393 ].Thesis Statement:The thesis statement for the research aims to validate the expected outcomes of the research. For, thisparticular research, the thesis statement is as follows:“Organizational leadership is one of the keyfactors that influence the managerial decision-making in order to achieve sustainability of theenterprise.”Research Aims and Objectives:Research Objectives:The objectives of this research are enumerated as follows:
Identifying the impact of organizational leadership on prudent strategic decision-making;Determining the differences in leadership between a public and private organization;Assessing the difficulties those might be faced by a leader from a public organization to lead in aprivate work culture;Ascertaining the required changed organizational structure to cope up with the changedorganizational strategies; andThe extent to which successful leadership and strategic decision-making can ensureorganizational sustainability.Research Questions:Primary Research Questions:Is it possible for a manager from a governmental sector who has a combination of traits such asautocratic leadership style to provide effective leadership in a private sector organization after amerger?Can a governmental sector manager succeed in adopting the different business motives of a privatesector organization?Secondary Research Questions:The primary research questions has led to the development of the secondary research questions thoseare as follows:What is the best-suited structure for the company to ensure that it regains the lost stability?What are the effective strategies needed to ensure growth and sustainability?What are the effective traits and style of leadership for ensuring that the company is able toachieve the desired targets?Scope of Research:The researcher attempts to identify the impact of leadership on organizational sustainability. The aim ofthe research was to determine the consequences of difference in leadership styles and traits owing tothe variation in the work cultures between public and private sector organizations[ CITATION Jes10 \l16393 ]. The researchtried to identify the major causes of differences in leadership between a privateand public-sector organization. Through the course of the research study it has been identified that