Analysis of Leadership Styles, Business Ethics & People Management

This report provides a comprehensive analysis of various aspects of people management, including financial ratio analysis, organizational culture, leadership styles, knowledge management, and business ethics. The financial analysis covers gross profit ratio, net profit ratio, operating costs to gross income ratio, direct costs to gross income ratio, return on assets, return on equity, debt ratio, interest cover times, current ratio, and age of debtors. The report also discusses the suitability of Adhocracy culture for Dart Business Consulting, along with the visionary leadership style and consultative management approach. Furthermore, it addresses employee motivation, knowledge management strategies (explicit and tacit), and ethical issues related to business decisions, employing Kantian and utilitarian reasoning. This detailed exploration offers valuable insights into effective people management practices and ethical considerations.

0Running head: PEOPLE MANAGEMENT
PEOPLE MANAGEMENT
Name of the Student
Name of the University
Author note

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Table of Contents
Part A...............................................................................................................................................2
ANSWER 1 ( in S)......................................................................................................................2
Part B...............................................................................................................................................4
Question 2....................................................................................................................................4
Question 3....................................................................................................................................5
Question 4....................................................................................................................................6
Part C...............................................................................................................................................7
Question 5: Knowledge Management.........................................................................................7
Question 6: Business Ethics.........................................................................................................8
References:....................................................................................................................................10

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Part A
ANSWER 1 ( in S)
A.
RATIO CALCULATION
GROSS PROFIT RATIO
=3000/10000*100= 30%
NET PROFIT RATIO
1200/10000*100=12%
OPERATING COSTS TO GROSS INCOME RATIO
100/10000*100=1%
DIRECT COSTS TO GROSS INCOME RATIO
7000/10000*100= 70%
RETURN ON ASSET
1800/10000=18%
RETURN ON EQUITY=1200/6000=20%

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DEBT RATIO=4000/10000=40%
INTEREST COVER TIMES=1800/100=18
CURRENT RATIO= 1000/500=2
AGE OF DEBTORS =(400/1000) *365=146
B.
Operating performance ratios means how much the organisation is using all the resources to
generate sales and cash. The company has a good operating performance.
Profitability means how much profit percent the company is able to obtain by the sales it has
been doing. The company is generating 10 percent of the sales as profit.
Liquidity means how can the company liquidate all the assets easily or if the current assets will
be sufiicient to meet the company’s obligation. The working capital is a meaure of company;’s
working capital and the company’s working capital is 2 which is a good ratio.
C. Yes it’s a business worth purchasing as the company’s ratio are worth it and all the ratio given
are positive and working favourable for the company
D. It should be around $2000

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Part B
Question 2
2a. Considering the business activities and the scope of the consulting company, it can be stated
that in Dart Business Consulting, Adhocracy Culture can be adopted. Adhocracy oriented
Culture is entrepreneurial and dynamic and is most suited for consultancy and management
related businesses. It can further be added here that Adhocracy Culture is a corporate culture that
is characterized by employee and client empowerment and flexibility and the emphasis is given
on the individual initiatives (Naranjo-Valencia et al. 2016). Initially, Adhocracy Culture had
been prevalent only in the hierarchal environments though later it was changed in forms and
structure to accommodate in the modern day organizations. It is suited for business environment
where there are no fixed responsibilities for the people such as in Dart Business Consulting.
2b. Adhocracy oriented Culture would be effective for Dart Business Consulting as it would help
to maintain a creative, integrative and dynamic environment in the company by facilitating
discussions and collaborations. It would also support the consultants to take risks and the leaders
would receive the support to be risk takers and innovators as leaders would be more open to
engage in experimenting with new consultation techniques for providing better suggestions
depending on the market trends and the dynamic business environment (Porcu et al. 2017). The
fact that this culture would promote flexibility and freedom, new techniques can be undertaken
for strengthening the market position for improving competitive advantage among the
competitors.
2c. For developing this kind of culture in the Dart Business Consulting, there would be need for
relaxing the hierarchal structure prevalent in the organization and to render more relaxation in

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the manner in which the consultancy services are provided. Barriers for communication need to
be minimized so that better level of interaction can be possible. Furthermore, there would also be
need for motivating change in the manner in which the managers have been approaching issues
that are brought to them for consultation (Eisend et al. 2016). Such support need to be extended
to the managers and leaders that they can approach issues by taking risk and being innovative in
their approach. Effectiveness of the leadership is required for the success of the culture in the
Dart Business Consulting as this culture is helmed by the efficiency of the leaders.
Question 3
3a. There are various leadership styles that can be adopted in an organization for leading change
and for developing organizational culture that could be effective for the business environment.
The leadership style that can be adopted in the Dart Business Consulting is visionary leadership.
Visionary leadership focuses upon creation and maintenance of a vision that is triggered by
discipline (Taylor et al. 2014). The leader also needs to achieve long term goals through passion
and will. A visionary leader would also be innovative in its approach that is required in the
workplace.
3b. The visionary leadership is required in Dart Business Consulting as the Adhocracy culture is
adopted. Visionary leadership would allow the leader to be innovative and function as an
entrepreneur also who would be willing to take risks and be innovative in approach rather than
submitting to orthodox business techniques (Holten & Brenner, 2015). Thus in this manner, for
adhocracy culture, the visionary leadership would be successful and relevant for the
organizational culture that is adopted. Visionary leadership would also be effective for creation
of new standards and for anticipation of new needs that would be required in the organization.

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3c. As based on the adhocracy oriented culture and the visionary leadership, it can be added that
the management style and approach that would be adopted. The management approach that can
be adopted and would be relevant here would be consultative approach. In this approach to
management, discussion is allowed by the managers to the employees. The leader and manager
in the Dart Business Consulting would consult the issues and the probable solutions that can be
consulted with the employees however the ultimate decision regarding the decision would be
taken by the leader or manager only (Lazaroiu, 2015). In this regard it can be stated that the
decision attempt would be for the fulfillment of the best interest of the client. It must also be
added here that for the success of this management style, loyalty of the employees need to be
secured.
Question 4
4a. Measures need to be adopted for ensuring that the employees support the culture that has
been adopted in the Dart Business Consulting. It can further be added here that for keeping the
employees motivated there would be need for developing effective relationship between the
managers and employees to keep them motivated. Appreciation of their contribution and views
that leads to successful outcomes is also required for keeping them motivated (Kuvaas et al.
2018). For motivating employees, there would be need for re-examining the needs and desires of
the employees so that they feel that they are being given importance.
4b. The approach that can be adopted for the employees in Dart Business Consulting for the
success of the Adhocracy culture is employee appreciation. It is through appreciation of the
employees that they can be motivated to give their opinions that can be productive for the
company (Lazaroiu, 2015). It can also be added here that through appreciation, the employees

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would also feel that they are important and that they would not be affected by the consultative
approach of management. Furthermore, the visionary leadership style would be supported by the
employees.
Part C
Question 5: Knowledge Management
5a. Range of Knowledge
The organization need to consider both explicit and tacit knowledge for higher benefit. For
ensuring the business’s success, it is crucial to have knowledge of conducting critical thinking. It
would be effective in ascertaining the pros and cons of each strategy so that best tactic can be
applied in the business process. On the other hand, it is important to have knowledge about skills
and capability of staff to perform the assigned work. It can help in getting work done in a desired
manner, which can support in fulfilling the organization’s mission and vision.
5b. Managing Explicit Knowledge
For the management of explicit knowledge, the organisation would require to emphasise on job
description. It is useful for making staff understand their job role and guidelines that would
require to follow to attain the set goals. Furthermore, the company can utilise cloud space for
managing information about employees and other crucial elements like training schedule.
Moreover, the manager of the company can easily share them with the responsible authority.
5c. Tacit Knowledge

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One of the tacit knowledge components is related to building critical thinking. Such skill is
shared and made available to all staff by providing training to employees. The senior executives
take the responsibility to ensure that staff utilises their best critical thinking capability at work.
Furthermore, knowledge relating to skills of each staff is shared with co-employees so that they
can support each other at work.
Question 6: Business Ethics
6a. Ethical Issues
The proposal presents significant ethical issue, which may impact the image of the automobile
company in the market. In that relation, it can be indicated that if the organisation provides
information to rival bidding firm then the automobile company would be conducting unethical
means to its shareholders. As a result, the shareholders may lose their trust and may also stop
investing in the company. Furthermore, the other senior executives of the company may not
support the owner if information is shared, which can hamper the organisational culture.
6b. Kantian Reasoning
For deciding the response to the proposal, the automobile company’s owner would require to
consider engaging other senior executives to discuss whether the information related to bid
should be provided or not. This will help in building and managing trust between the executives,
which can result to effective collective decisions.
6c. Utilitarian Reasoning

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For deciding the response to the proposal, the owner of the organisation would require to
consider the possible consequences of sharing information on the organizational future growth,
its image in the market. Furthermore, it would be important to ascertain the financial gains or
loss if information is shared. In that context, it can be mentioned that if providing the information
to other biding company is financially beneficial then it would be effective for the automobile
company to use the capital to build its infrastructure. Moreover, the company can use the
financial assistance for enhancing the business and human resource skills, which can ensure
long-term benefit to the organisation in future. This would enable the owner to determine the
goodness of the response.

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References:
Eisend, M., Evanschitzky, H., & Gilliland, D. I. (2016). The influence of organizational and
national culture on new product performance. Journal of Product Innovation
Management, 33(3), 260-276.
Holten, A. L., & Brenner, S. O. (2015). Leadership style and the process of organizational
change. Leadership & Organization Development Journal, 36(1), 2-16.
Kuvaas, B., Buch, R., & Dysvik, A. (2018, July). Individual variable pay for performance,
incentive effects, and employee motivation. In annual meeting of the Academy of
Management, Chicago, USA.
Lazaroiu, G. (2015). Employee motivation and job performance. Linguistic and Philosophical
Investigations, 14, 97.
M. Taylor, C., J. Cornelius, C., & Colvin, K. (2014). Visionary leadership and its relationship to
organizational effectiveness. Leadership & Organization Development Journal, 35(6),
566-583.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links
between organizational culture, innovation, and performance in Spanish
companies. Revista Latinoamericana de Psicología, 48(1), 30-41.
Porcu, L., del Barrio-García, S., Alcántara-Pilar, J. M., & Crespo-Almendros, E. (2017).
Examining the mediating role of integrated marketing communication on the relationship

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between adhocracy culture and brand advantage. In Advances in Advertising Research
(Vol. VII) (pp. 281-295). Springer Gabler, Wiesbaden.