HRM Practices and Leadership at Forbes Marshall: A Case Study
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Case Study
AI Summary
This case study delves into the HRM practices of Forbes Marshall, a leading engineering company. It begins with a company profile, including its history, mission, and key operational areas. The study then examines Forbes Marshall's HR philosophy, emphasizing its family spirit, values-driven culture, and commitment to employee well-being. It analyzes specific HR practices, such as recruitment and selection, employee development, motivation, and maintenance, highlighting the company's 4C's model (Competence, Commitment, Congruence, and Cost-effectiveness) and its three pillars of employee engagement: employee development, communication, and CSR initiatives. The analysis also explores the influence of these practices on organizational behavior, emphasizing employee motivation and satisfaction. The study provides recommendations, suggesting further investment in training and development programs, and concludes by emphasizing the company's people-oriented approach and the creation of a positive environment for employees and their families. The case study emphasizes the importance of employee development and motivation and how it affects the company's success.
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Assignment Task 1:
1. Introduction of Forbes Marshall:
A. Company Profile:
Founders: J. N. Marshall, Darius Forbes
Started by J.N. Marshall in 1925 as a trading company.
Expanded by Mr. Darius Forbes into a leading corporate group, manufacturing
advanced engineering products.
A leading multinational engineering company.
Specializing in steam engineering and control instrumentation.
Focused on Process efficiency, Environmental monitoring, Energy efficiency and
utilities Management for diverse sectors.
The first factory for the manufacture of steam products was set up in Kasarwadi,
Pune in 1958.
In 1962 the company entered the control instrumentation business. (Forbes
Marshall, website)
Mission and Vision:
o To become a prestigious and advanced company in the burgeoning world of
technology, pursuing market leadership in the field of steam engineering, process
control and utilities management.
o Committed to growth and extension at international level, aimed to be a role
model organization for customers, society, suppliers and employees.
1. Introduction of Forbes Marshall:
A. Company Profile:
Founders: J. N. Marshall, Darius Forbes
Started by J.N. Marshall in 1925 as a trading company.
Expanded by Mr. Darius Forbes into a leading corporate group, manufacturing
advanced engineering products.
A leading multinational engineering company.
Specializing in steam engineering and control instrumentation.
Focused on Process efficiency, Environmental monitoring, Energy efficiency and
utilities Management for diverse sectors.
The first factory for the manufacture of steam products was set up in Kasarwadi,
Pune in 1958.
In 1962 the company entered the control instrumentation business. (Forbes
Marshall, website)
Mission and Vision:
o To become a prestigious and advanced company in the burgeoning world of
technology, pursuing market leadership in the field of steam engineering, process
control and utilities management.
o Committed to growth and extension at international level, aimed to be a role
model organization for customers, society, suppliers and employees.
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o The core vision and mission of the company is to offer solutions to the customers
in a best quality and innovative way to delight their customers. From the smallest steam
solutions to the most complex Instrumentation systems; from Packaged Boilers to
complex Turnkey systems, that is Forbes Marshall's unending mission called.
Key operational areas:
Steam Engineering
Control Automation
Industrial Automation
Flow & Level transmitters
Water Quality analyses
Control Valves & Steam Conditioning
Emission Monitoring
Vibration Monitoring Systems and Steam Systems
Manufacturing
Industrial Machinery & Equipment
Metals & Minerals
Industrial Instruments
Science and Engineering
Air Efficiency Monitoring
Business Activities:
Forbes Marshall has a number of trained engineers work at an international level to
provide an immediate support of their services on the field to their customers globally. These
expert engineers are allocated in both national and international branches of company. Product
experts in the team are available to attend the critical issues, and also provide assistance
remotely, to help improve plant uptime and productivity.
Expert engineers with the supply team handle issues of product repair. Every product that
comes in to mend, whether with or without warranty, goes through the complete cycle of testing
same as at the time of fabricating a new unit.
A separate team provides assistance to customers for installations specific to pollution
control as per government set norms.
Forbes Marshal conduct annual hardware issues analysis and its maintenance to ensure
effective and efficient operation of systems.
Forbes Marshall number of employees and competitors:
Forbes Marshall consists of 1,440 employees and is ranked 2nd among its top 10 below
competitors:
COMPANY SYMBOL
in a best quality and innovative way to delight their customers. From the smallest steam
solutions to the most complex Instrumentation systems; from Packaged Boilers to
complex Turnkey systems, that is Forbes Marshall's unending mission called.
Key operational areas:
Steam Engineering
Control Automation
Industrial Automation
Flow & Level transmitters
Water Quality analyses
Control Valves & Steam Conditioning
Emission Monitoring
Vibration Monitoring Systems and Steam Systems
Manufacturing
Industrial Machinery & Equipment
Metals & Minerals
Industrial Instruments
Science and Engineering
Air Efficiency Monitoring
Business Activities:
Forbes Marshall has a number of trained engineers work at an international level to
provide an immediate support of their services on the field to their customers globally. These
expert engineers are allocated in both national and international branches of company. Product
experts in the team are available to attend the critical issues, and also provide assistance
remotely, to help improve plant uptime and productivity.
Expert engineers with the supply team handle issues of product repair. Every product that
comes in to mend, whether with or without warranty, goes through the complete cycle of testing
same as at the time of fabricating a new unit.
A separate team provides assistance to customers for installations specific to pollution
control as per government set norms.
Forbes Marshal conduct annual hardware issues analysis and its maintenance to ensure
effective and efficient operation of systems.
Forbes Marshall number of employees and competitors:
Forbes Marshall consists of 1,440 employees and is ranked 2nd among its top 10 below
competitors:
COMPANY SYMBOL

AIA Engineering Ltd. AIAENG
Axtel Industries Ltd. AXTIND
Ingersoll-Rand (India)
Ltd. INGEI
Kennametal India Ltd. KENIND
Mazda Ltd. MAZLTD
Revathi Equipment Ltd. REVEQU
Thejo Engineering Ltd. THEJEN
TRF Ltd. TRFLTD
Veljan Denison Ltd. DENHYD
ARI Armaturen ARI Armaturen
Forbes Marshall locations:
Forbes Marshall is headquartered in Pune, India and has 36 office locations.
Pune HQ, Ahmedabad, Bengaluru, Chennai, Coimbatore, Indore, Jamshedpur, Kochi,
Kolkata, Lucknow, Maharashtra, Mumbai, Nagpur, Navi Mumbai, New Delhi, Pune,
Sahibzada, Ajit Singh Nagar, Secunderabad, Surat, Vadodara, Visakhapatnam, Palo, Alto,
South Salt Lake, Dhaka, Mississauga, Girón, Ahmed El Sharnouby, Jakarta, Nairobi,
Petaling Jaya, Lagos, Colombo, Bangkok, Sharjah, Bakewell, Ha Noi.
B. Aims and objectives:
Analyzing the global HR practices and its implementation in a company to achieve the
goals.
To evaluate the leadership styles and adopting the best one in a company to get fruitful
results
To examine the IHRM functions of a company in its different locations.
C. CRITICAL ANALYSIS:
FORBES MARSHAL HR PRACTICES:
Forbes Marshall is a family owned organization who believe in going extra miles for their
employees Forbes takes pride in its family spirit, culture and employee trust, which it strongly
believes has been the potential strategy in making it an employer of choice in the talent market.
Forbes believes in following values:
Axtel Industries Ltd. AXTIND
Ingersoll-Rand (India)
Ltd. INGEI
Kennametal India Ltd. KENIND
Mazda Ltd. MAZLTD
Revathi Equipment Ltd. REVEQU
Thejo Engineering Ltd. THEJEN
TRF Ltd. TRFLTD
Veljan Denison Ltd. DENHYD
ARI Armaturen ARI Armaturen
Forbes Marshall locations:
Forbes Marshall is headquartered in Pune, India and has 36 office locations.
Pune HQ, Ahmedabad, Bengaluru, Chennai, Coimbatore, Indore, Jamshedpur, Kochi,
Kolkata, Lucknow, Maharashtra, Mumbai, Nagpur, Navi Mumbai, New Delhi, Pune,
Sahibzada, Ajit Singh Nagar, Secunderabad, Surat, Vadodara, Visakhapatnam, Palo, Alto,
South Salt Lake, Dhaka, Mississauga, Girón, Ahmed El Sharnouby, Jakarta, Nairobi,
Petaling Jaya, Lagos, Colombo, Bangkok, Sharjah, Bakewell, Ha Noi.
B. Aims and objectives:
Analyzing the global HR practices and its implementation in a company to achieve the
goals.
To evaluate the leadership styles and adopting the best one in a company to get fruitful
results
To examine the IHRM functions of a company in its different locations.
C. CRITICAL ANALYSIS:
FORBES MARSHAL HR PRACTICES:
Forbes Marshall is a family owned organization who believe in going extra miles for their
employees Forbes takes pride in its family spirit, culture and employee trust, which it strongly
believes has been the potential strategy in making it an employer of choice in the talent market.
Forbes believes in following values:

A strong family spirit
A values-driven culture at the base of their management processes
Early adoption of sustainability initiatives
Introduction of progressive people practices before they became 'best' practices, namely
flexi-timing (especially in a manufacturing context), a retirees program, affirmative steps
for the inclusion of women in the workforce
Taking clear and actionable measures for making people accountable to each other,
including HR
Forbes Marshall HR philosophy enshrines the beliefs:
o An Organization is good when its people are good and efficient.
o People involvement in the tasks they do leads to an employee engagement.
o A world beating organization needs employees with world beating thoughts.
o The worth of honor and respect of an employee is as important as organization is.
There are two strong pillars of the above mentioned philosophy:
1. The Forbes Marshall Family spirit: This aspect of philosophy serves as the core of
their culture. Some practices that encourage this 'spirit' are supporting the education of
the children of their employees, taking initiatives and put efforts to reunite divorced
families, and a strong network of organization members connection to attract an ex-
employee to rejoin. The organization maintains a clear distinction between work-life,
personal-professional.
2. High accountability of both line managers and HR team: Forbes Marshall believes on
not to be a commander, and involve line managers in all people related decisions like
who to hire, when to hire and where to hire. The senior leaders and line managers have
equal rights of involving in HR related decisions and people strategies. HR is also
accountable to add values in their business and all HR issues are being tracked through
Forbes Marshall
Family Spirit
Innovation and
Entreprenuership
Integrity
Value delivery to
customer
members soceity
A values-driven culture at the base of their management processes
Early adoption of sustainability initiatives
Introduction of progressive people practices before they became 'best' practices, namely
flexi-timing (especially in a manufacturing context), a retirees program, affirmative steps
for the inclusion of women in the workforce
Taking clear and actionable measures for making people accountable to each other,
including HR
Forbes Marshall HR philosophy enshrines the beliefs:
o An Organization is good when its people are good and efficient.
o People involvement in the tasks they do leads to an employee engagement.
o A world beating organization needs employees with world beating thoughts.
o The worth of honor and respect of an employee is as important as organization is.
There are two strong pillars of the above mentioned philosophy:
1. The Forbes Marshall Family spirit: This aspect of philosophy serves as the core of
their culture. Some practices that encourage this 'spirit' are supporting the education of
the children of their employees, taking initiatives and put efforts to reunite divorced
families, and a strong network of organization members connection to attract an ex-
employee to rejoin. The organization maintains a clear distinction between work-life,
personal-professional.
2. High accountability of both line managers and HR team: Forbes Marshall believes on
not to be a commander, and involve line managers in all people related decisions like
who to hire, when to hire and where to hire. The senior leaders and line managers have
equal rights of involving in HR related decisions and people strategies. HR is also
accountable to add values in their business and all HR issues are being tracked through
Forbes Marshall
Family Spirit
Innovation and
Entreprenuership
Integrity
Value delivery to
customer
members soceity
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Actions-Timelines-Status tracker which is sent to the management every quarter to
analyze the resolved issues and unresolved ones that require an action and proper
initiatives.
Other HR Practices:
Retirees program – is a successful program being held for the past 17 years in which all
retires employees are invited with their families in this program where an address by
Chairman and multiple sessions by a nutritionist, a dietician, a financial advisor, a yoga
expert, and other health and wellness experts and NGO organizations are held to help
employees to live a better life after retirement.
Annual day celebrations: Annual day celebration is the largest platform organized by
HR where employees, including alumni, and their families are invited. Long service
awards are given to employees with tenures of 21, 35, 30, 35 years in this celebration
program. Every year about 50 people are selected across these categories.
Gender inclusion - Forbes has consistently maintained a 20 percent ratio of female
employees for the past 20 years. It encourages woman involvement in the organization
with equal rights.
Alumni connect – the alumni network record is included in the mailing list of internal
newsletters and are also invited along with their families to the Annual Day celebrations.
COMPONENTS OF HRM IN FORBES MARSHALL:
1. Recruitment and selection: Forbes recruitment process pass through the following
interviews:
Technical Round: To ask questions about Steam Engineering, Hydro-mechanics &
Instrumentation (Specially Valves & Flow meters) to a mechanical Engineer.
HR Round: To check the personal behavior of a candidate, his strength and weaknesses,
background, aspirations etc.
The Director's Round: FM makes sure that each inducted person meets one of the
director's for a one-to-one interview. They ask about long term desires and do you align
yourself with FM values.
2. Development: Forbes Marshall organizes various training programs for their employees,
They strongly believe in capacity building and knowledge enhancement of every segment
within FM. They not only provide trainings to their members, but also have programs for
their customers and students trying to contribute bit to make their country more informed
in the domain they are specialized.
3. Motivation: Forbes Marshall always motivate their employees by trying something new
in workplace. They think that an employee is as good as organization and always respect
analyze the resolved issues and unresolved ones that require an action and proper
initiatives.
Other HR Practices:
Retirees program – is a successful program being held for the past 17 years in which all
retires employees are invited with their families in this program where an address by
Chairman and multiple sessions by a nutritionist, a dietician, a financial advisor, a yoga
expert, and other health and wellness experts and NGO organizations are held to help
employees to live a better life after retirement.
Annual day celebrations: Annual day celebration is the largest platform organized by
HR where employees, including alumni, and their families are invited. Long service
awards are given to employees with tenures of 21, 35, 30, 35 years in this celebration
program. Every year about 50 people are selected across these categories.
Gender inclusion - Forbes has consistently maintained a 20 percent ratio of female
employees for the past 20 years. It encourages woman involvement in the organization
with equal rights.
Alumni connect – the alumni network record is included in the mailing list of internal
newsletters and are also invited along with their families to the Annual Day celebrations.
COMPONENTS OF HRM IN FORBES MARSHALL:
1. Recruitment and selection: Forbes recruitment process pass through the following
interviews:
Technical Round: To ask questions about Steam Engineering, Hydro-mechanics &
Instrumentation (Specially Valves & Flow meters) to a mechanical Engineer.
HR Round: To check the personal behavior of a candidate, his strength and weaknesses,
background, aspirations etc.
The Director's Round: FM makes sure that each inducted person meets one of the
director's for a one-to-one interview. They ask about long term desires and do you align
yourself with FM values.
2. Development: Forbes Marshall organizes various training programs for their employees,
They strongly believe in capacity building and knowledge enhancement of every segment
within FM. They not only provide trainings to their members, but also have programs for
their customers and students trying to contribute bit to make their country more informed
in the domain they are specialized.
3. Motivation: Forbes Marshall always motivate their employees by trying something new
in workplace. They think that an employee is as good as organization and always respect

the dignity of their members which is why its employees find Forbes Marshall “a great
place to work”.
4. Maintenance: The last component of Forbes HR includes the strategies to attract their
employees by providing them a better work place environment. They offer a family
environment to their employees and welcome their families as well in their annual
celebration programs.
4C’s model in Forbes Marshall:
1. Competence: Forbes Marshall analyze how capable their employees are and in what
areas they are lacking so they provide training to their employees to foster them to
perform well.
2. Commitment: The effective HR policies of Forbes Marshall lead to employees’
commitment too. They respect the dignity of their employees due to which employees are
loyal with their work and are committed to their tasks. A non-commanded and family
environment also makes their employees feel satisfied and happy.
3. Congruence: Forbes employees work like a team for a specific goal of offering solutions
to the customers in a best quality and innovative way to delight their customers. To
achieve this, Forbes employees maintain a continuous communication with each other
and give opportunity to everyone to share their ideas.
4. Cost effectiveness: Forbes strategies are designed in such a way that reduce operational
cost and increase productivity so they utilize their tools in a way that decrease their cost.
Eg: Distributing steam at 8 bars instead of 4 bar saves 20% in piping costs, 15% in
radiation loss and 25% in insulation costs (keeping velocity constant at 25 m/s and
assuming a required flow of 1.5 tons per hour).
THREE PILLARS OF HRM IN FORBES MARSHALL:
Forbes Marshall winning strategy for Employee Engagement is based on initiatives taken
along three pillars:
Employee Development: Forbes Marshall adopted a competency-based strategy to
employee development. Firstly, they created an in-house competency model. Sharing
this competency model with unionized members, HR asked for their views but they
received the answers as it’s not going to work. HR did not let up and repeated the
process interventions with the added communication that the intention was more to help
employees grow than to benefit the organization. There were people who underwent the
competency mapping process and training needs identification and experienced
enhanced responsibilities and career growth. Employees' ideas of Competency Mapping
underwent a change and the initiative gained the trust of employees.
Communication: Keeping effective communication channels in consideration, Forbes
Marshall built up their channels for diverse employees, providing internet and computer
place to work”.
4. Maintenance: The last component of Forbes HR includes the strategies to attract their
employees by providing them a better work place environment. They offer a family
environment to their employees and welcome their families as well in their annual
celebration programs.
4C’s model in Forbes Marshall:
1. Competence: Forbes Marshall analyze how capable their employees are and in what
areas they are lacking so they provide training to their employees to foster them to
perform well.
2. Commitment: The effective HR policies of Forbes Marshall lead to employees’
commitment too. They respect the dignity of their employees due to which employees are
loyal with their work and are committed to their tasks. A non-commanded and family
environment also makes their employees feel satisfied and happy.
3. Congruence: Forbes employees work like a team for a specific goal of offering solutions
to the customers in a best quality and innovative way to delight their customers. To
achieve this, Forbes employees maintain a continuous communication with each other
and give opportunity to everyone to share their ideas.
4. Cost effectiveness: Forbes strategies are designed in such a way that reduce operational
cost and increase productivity so they utilize their tools in a way that decrease their cost.
Eg: Distributing steam at 8 bars instead of 4 bar saves 20% in piping costs, 15% in
radiation loss and 25% in insulation costs (keeping velocity constant at 25 m/s and
assuming a required flow of 1.5 tons per hour).
THREE PILLARS OF HRM IN FORBES MARSHALL:
Forbes Marshall winning strategy for Employee Engagement is based on initiatives taken
along three pillars:
Employee Development: Forbes Marshall adopted a competency-based strategy to
employee development. Firstly, they created an in-house competency model. Sharing
this competency model with unionized members, HR asked for their views but they
received the answers as it’s not going to work. HR did not let up and repeated the
process interventions with the added communication that the intention was more to help
employees grow than to benefit the organization. There were people who underwent the
competency mapping process and training needs identification and experienced
enhanced responsibilities and career growth. Employees' ideas of Competency Mapping
underwent a change and the initiative gained the trust of employees.
Communication: Keeping effective communication channels in consideration, Forbes
Marshall built up their channels for diverse employees, providing internet and computer

to all shop floor employees and translating their annual review process helped their
employees to get better understanding of the feedback.
Corporate Social Responsibility Initiatives: Starting from setting up its own CSR Cell
in 1979 followed by allowing the flexible working hours to their employees, Forbes
Marshall is successful in setting them apart in the manufacturing industry. It has a
partnership with several communities, local government bodies and NGOs to perform
social activities.
Influence of Forbes HR practices on organizational behavior:
Employees are self-motivated and satisfied with work environment that makes loyal
with their work.
At Forbes Marshall, they believe that the families of their employees are as worthy as
the members are. They invite the family members of a few employees every quarter so
it creates a strong relationship among employees’ families and organization is built up
that leads to a long stay by en employee.
From above case study, we find the Forbes HR team taking ownership of not just
employee development from a business perspective but also as an extended family in
the true sense of the term.
The 'soft' people-friendly values are balanced and enhanced by a strong focus on
accountability - of line managers, employees, and especially the HR function itself.
Equal involvement of HR and line managers in HR decisions results in choosing best-
fit for their organization and makes line managers feel equal participant in company’s
growth.
Recommendations and conclusions:
In a nutshell, Forbes Marshall HRM practices are more people oriented and create a
happy environment for their members and their families as well. For this, they go through
numerous expenditures as well such as family dinners, annual programs, trips expenses
etc. I would suggest spending more on training and development programs since they use
heavy machineries so employees need an effective training to operate them.
Task 2:
LEADERSHP AND ITS STYLES:
employees to get better understanding of the feedback.
Corporate Social Responsibility Initiatives: Starting from setting up its own CSR Cell
in 1979 followed by allowing the flexible working hours to their employees, Forbes
Marshall is successful in setting them apart in the manufacturing industry. It has a
partnership with several communities, local government bodies and NGOs to perform
social activities.
Influence of Forbes HR practices on organizational behavior:
Employees are self-motivated and satisfied with work environment that makes loyal
with their work.
At Forbes Marshall, they believe that the families of their employees are as worthy as
the members are. They invite the family members of a few employees every quarter so
it creates a strong relationship among employees’ families and organization is built up
that leads to a long stay by en employee.
From above case study, we find the Forbes HR team taking ownership of not just
employee development from a business perspective but also as an extended family in
the true sense of the term.
The 'soft' people-friendly values are balanced and enhanced by a strong focus on
accountability - of line managers, employees, and especially the HR function itself.
Equal involvement of HR and line managers in HR decisions results in choosing best-
fit for their organization and makes line managers feel equal participant in company’s
growth.
Recommendations and conclusions:
In a nutshell, Forbes Marshall HRM practices are more people oriented and create a
happy environment for their members and their families as well. For this, they go through
numerous expenditures as well such as family dinners, annual programs, trips expenses
etc. I would suggest spending more on training and development programs since they use
heavy machineries so employees need an effective training to operate them.
Task 2:
LEADERSHP AND ITS STYLES:
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Leadership is an ability to motivate team to work on achieving a common goal. Leadership in
business is the skill of a company's management to set and achieve challenging goals, take quick
and decisive action when needed, outperform the competition, and inspire others to perform at
the highest level they can.
LEADERSHIP STYLES:
1. Autocratic Leadership style: This style is also known as Leader-centered style
leadership, which is characterized by individual control over all decisions and little input
from group members. Autocratic leaders typically make decisions based on their own
ideas and judgments and rarely accept advices from their followers. Autocratic
leadership involves absolute, authoritarian control over a group.
Research shows that most of individuals dislike this type of leaders and experience more
job stress when being managed by such managers. Leaders with this style take decisions
by themselves, communicate with their followers and expect prompt implementation.
Characteristics of Autocratic Leadership:
o Decisions are centralized
o Leaders are task oriented
o Little or no input from the members
o Focus on daily tasks and provide clear direction
o Discourage creativity and innovative thinking
o Establishes rules and tends to be clearly outlined and communicated
o Makes followers feels like they aren't trusted with decisions or important tasks
o Not involved with long-term goal-setting or career progression
o Provides clear directions and structure to the followers.
Advantages of Autocratic Leadership:
o Helps in quick decision-making especially when we have a task deadline of short
time.
o Offers a clear chain of command or oversight when the process and standards are
set for specific goals.
o Works well where strong, directive leadership is needed.
o Confidential matters are hidden.
o It helps in meeting the targeted dates.
Disadvantages of Autocratic Leadership:
o This style of leaders makes their subordinates unhappy and stressed.
o It creates a negative image of a leader to their subordinates.
o It may hinder on making an effective decision.
o No new ideas are welcomed.
o Employees are not motivated and hence decrease their work dedication.
business is the skill of a company's management to set and achieve challenging goals, take quick
and decisive action when needed, outperform the competition, and inspire others to perform at
the highest level they can.
LEADERSHIP STYLES:
1. Autocratic Leadership style: This style is also known as Leader-centered style
leadership, which is characterized by individual control over all decisions and little input
from group members. Autocratic leaders typically make decisions based on their own
ideas and judgments and rarely accept advices from their followers. Autocratic
leadership involves absolute, authoritarian control over a group.
Research shows that most of individuals dislike this type of leaders and experience more
job stress when being managed by such managers. Leaders with this style take decisions
by themselves, communicate with their followers and expect prompt implementation.
Characteristics of Autocratic Leadership:
o Decisions are centralized
o Leaders are task oriented
o Little or no input from the members
o Focus on daily tasks and provide clear direction
o Discourage creativity and innovative thinking
o Establishes rules and tends to be clearly outlined and communicated
o Makes followers feels like they aren't trusted with decisions or important tasks
o Not involved with long-term goal-setting or career progression
o Provides clear directions and structure to the followers.
Advantages of Autocratic Leadership:
o Helps in quick decision-making especially when we have a task deadline of short
time.
o Offers a clear chain of command or oversight when the process and standards are
set for specific goals.
o Works well where strong, directive leadership is needed.
o Confidential matters are hidden.
o It helps in meeting the targeted dates.
Disadvantages of Autocratic Leadership:
o This style of leaders makes their subordinates unhappy and stressed.
o It creates a negative image of a leader to their subordinates.
o It may hinder on making an effective decision.
o No new ideas are welcomed.
o Employees are not motivated and hence decrease their work dedication.

2. Democratic Leadership style: This style of leadership invites their followers to share
ideas in decision making and thus also called as participative leadership. Unlike
autocratic, they aren’t handing down commands from on high, and instead take a much
more collaborative approach to getting things done since they believe on working
together to achieve an organizational goal.
Characteristics of Democratic Leadership:
o Encourage creativity and innovation
o Adopt group decision making approach
o A leader has final say but group members are encouraged since ideas are
exchanged freely.
o Participative leaders make their group feel like they are the part of a team, which
creates commitment within the group.
o The leader of the group is available to offer guidance and control
o It leads to higher productivity, better contributions from group members, and
increased group morale
o Employees are consulted about what to do and how to do it.
Advantages of Democratic Leadership:
o It creates the chances of effective decision making.
o It makes the followers feel encouraged and motivated in sharing their ideas.
o It builds up a good relationship between followers and their leaders.
o It helps in solving complex problems by getting diverse ideas from team
members.
o It helps in increasing the productivity.
o It brings an innovation and creativity in an organization.
Disadvantages of Democratic Leadership:
o The decision making process is slow since it requires an input from people.
o Lack of secrecy in confidential matters.
o It doesn’t help in crises or in stressed situations.
o Coping with rejections of ideas that may leads to lowering the enthusiasm of an
employee.
o It requires the followers to be literate, well experienced and organized which is
not always possible.
o It can create the conflicts between leaders and its members if the ideas given by
the followers are not acceptable.
Most Conductive Leadership Style in my organization:
Most successful organizations evolve, and their leaders present a mix of leadership styles. They
have autocratic leaders who run manufacturing, quality control and distribution divisions along
with R&D teams supervised by democratic/participative leadership style.
ideas in decision making and thus also called as participative leadership. Unlike
autocratic, they aren’t handing down commands from on high, and instead take a much
more collaborative approach to getting things done since they believe on working
together to achieve an organizational goal.
Characteristics of Democratic Leadership:
o Encourage creativity and innovation
o Adopt group decision making approach
o A leader has final say but group members are encouraged since ideas are
exchanged freely.
o Participative leaders make their group feel like they are the part of a team, which
creates commitment within the group.
o The leader of the group is available to offer guidance and control
o It leads to higher productivity, better contributions from group members, and
increased group morale
o Employees are consulted about what to do and how to do it.
Advantages of Democratic Leadership:
o It creates the chances of effective decision making.
o It makes the followers feel encouraged and motivated in sharing their ideas.
o It builds up a good relationship between followers and their leaders.
o It helps in solving complex problems by getting diverse ideas from team
members.
o It helps in increasing the productivity.
o It brings an innovation and creativity in an organization.
Disadvantages of Democratic Leadership:
o The decision making process is slow since it requires an input from people.
o Lack of secrecy in confidential matters.
o It doesn’t help in crises or in stressed situations.
o Coping with rejections of ideas that may leads to lowering the enthusiasm of an
employee.
o It requires the followers to be literate, well experienced and organized which is
not always possible.
o It can create the conflicts between leaders and its members if the ideas given by
the followers are not acceptable.
Most Conductive Leadership Style in my organization:
Most successful organizations evolve, and their leaders present a mix of leadership styles. They
have autocratic leaders who run manufacturing, quality control and distribution divisions along
with R&D teams supervised by democratic/participative leadership style.

In my organization, the leaders have adopted an autocratic leadership style since we have set
processes, standards and goals which have been communicated with the team. The team is
expected to clear their assigned projects by the end of each day. On the bases of their day to day
performance, appraisals are conducted quarterly. Although, weekly training sessions are held to
educate the team and to give them a clear direction but the projects needs to be done by the
employee himself.
What we do?
In order to give a critical view of leadership style in my organization, Here is a brief view of my
organization working so it makes an understandable about why this leadership style is being
followed. We outsource the different signage, promotional items, banners, vinyl, pylon
signs, monument signs and many other brand depicting products for our clients and get
them install as well where our customer wants. This is a huge set process in which multiple
departments are involved such as survey team, design team, estimation team and production
team.
How Autocratic style is applicable in my organization?
1. Project target dates: Each employee is being assigned with 40-50 projects along with
their expected completion date and the target of an employee is to meet that due date for
our clients. They have to get the product delivered or installed on the client expected date.
The more projects complete on time, the better would be their reviews for appraisals.
2. Centralized Decision making: Most of the decisions are taken by the line managers
along with the directors of operations. There is no involvement of the employees in
decision making; they get informed by their leaders once decision is finalized.
3. No creativity: Creativity usually requires where job nature is related to actual
manufacturing or design something for their customers. In my company, customer
provides their samples and designs by themselves and we create the design based on the
sample and deliver after their approval on the proof we sent to them. So, the chance of
creativity is more likely zero.
4. Task Oriented: In my organization, for any urgent task the tickets are generated for the
concerned person to work upon it with instructions mentioned in the ticket. Each ticket
has a due date by which the ticket owner has to complete the required action. In this
manner, leaders specify the clear commands along with the deadline.
5. Defined rules and processes: Since, we have multiple departments and high
communication is involved with each other so we have set the basic processes for each
department such as survey process, production and installation process, quality control,
invoicing and if there is any issue occurred then we have an escalation process as well to
report and seek help from the supervisors.
processes, standards and goals which have been communicated with the team. The team is
expected to clear their assigned projects by the end of each day. On the bases of their day to day
performance, appraisals are conducted quarterly. Although, weekly training sessions are held to
educate the team and to give them a clear direction but the projects needs to be done by the
employee himself.
What we do?
In order to give a critical view of leadership style in my organization, Here is a brief view of my
organization working so it makes an understandable about why this leadership style is being
followed. We outsource the different signage, promotional items, banners, vinyl, pylon
signs, monument signs and many other brand depicting products for our clients and get
them install as well where our customer wants. This is a huge set process in which multiple
departments are involved such as survey team, design team, estimation team and production
team.
How Autocratic style is applicable in my organization?
1. Project target dates: Each employee is being assigned with 40-50 projects along with
their expected completion date and the target of an employee is to meet that due date for
our clients. They have to get the product delivered or installed on the client expected date.
The more projects complete on time, the better would be their reviews for appraisals.
2. Centralized Decision making: Most of the decisions are taken by the line managers
along with the directors of operations. There is no involvement of the employees in
decision making; they get informed by their leaders once decision is finalized.
3. No creativity: Creativity usually requires where job nature is related to actual
manufacturing or design something for their customers. In my company, customer
provides their samples and designs by themselves and we create the design based on the
sample and deliver after their approval on the proof we sent to them. So, the chance of
creativity is more likely zero.
4. Task Oriented: In my organization, for any urgent task the tickets are generated for the
concerned person to work upon it with instructions mentioned in the ticket. Each ticket
has a due date by which the ticket owner has to complete the required action. In this
manner, leaders specify the clear commands along with the deadline.
5. Defined rules and processes: Since, we have multiple departments and high
communication is involved with each other so we have set the basic processes for each
department such as survey process, production and installation process, quality control,
invoicing and if there is any issue occurred then we have an escalation process as well to
report and seek help from the supervisors.
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6. Quick decision making: Employees are not being indulged in the decision making
process and hence the leader takes the quick decisions on their own and communicates
with the team. Eg: Process changes, tasks allocation and distribution etc.
How does it promote performance?
Based on the nature of work in my organization, the autocratic leadership style helps
company to meet the targeted dates for the clients which consequently makes them feel
satisfied.
Moreover, it helps in motivating employees to do their given tasks since they are given
with the targeted completion date.
Employees are capable enough to get the sudden tasks from their supervisors and done it
on the time since they have clear knowledge of the base process.
Since, there is one man show for each tasks, it helps in identify the individual
performances and the strength and weaknesses of each employee.
There is an absolute control over the employees and their performances are monitored
through their assigned tasks and given dates. It helps to calculate how much projects have
been accomplished by an individual on time.
Each employee is well aware of what he should do, by when he should do and how he
should do to achieve the targeted date since processes is well defined to them.
CONCLUSION: Both styles of leaderships have pros and cons in their own sense. But depends
on the organizational culture and work nature, each style play its own role to achieve the goals
and objective. Apparently and ear pleasuring style is democratic but an autocratic leadership
style also plays a vital role in amelioration of a company’s growth as well as enhancing the
employee capability since their role is independent. In a nutshell, leadership style is depends
upon the situation and work nature for leaders and they adopt the leadership style accordingly.
Task 3:
GLOBAL COMPENSATION AND BENEFITS STRATEGY:
All the multinational organizations have to consider the compensation and benefits planning
globally. Implementation of this strategy domestically to meet the requirements of an employee
is no doubt a great challenge but the potency of this challenge becomes stronger when it comes
to handling it globally with people of different cultures.
Comparison of compensation cost “prior” and “after” the landmark minimum wage law
Based on the given staffing cost data, the cost of an organization before the implementation of
minimum wage law was 9,164,694.18, after the introduction of minimum wage law in Taiwan
the final cost of the organization became 13,017,760.62 which is approx.: 42% increased. After
the hiring of expatriates, this cost was reduced to 12,007,500.34 which are approx.: 8%
decrement.
ACTION PLANS TO CEO:
process and hence the leader takes the quick decisions on their own and communicates
with the team. Eg: Process changes, tasks allocation and distribution etc.
How does it promote performance?
Based on the nature of work in my organization, the autocratic leadership style helps
company to meet the targeted dates for the clients which consequently makes them feel
satisfied.
Moreover, it helps in motivating employees to do their given tasks since they are given
with the targeted completion date.
Employees are capable enough to get the sudden tasks from their supervisors and done it
on the time since they have clear knowledge of the base process.
Since, there is one man show for each tasks, it helps in identify the individual
performances and the strength and weaknesses of each employee.
There is an absolute control over the employees and their performances are monitored
through their assigned tasks and given dates. It helps to calculate how much projects have
been accomplished by an individual on time.
Each employee is well aware of what he should do, by when he should do and how he
should do to achieve the targeted date since processes is well defined to them.
CONCLUSION: Both styles of leaderships have pros and cons in their own sense. But depends
on the organizational culture and work nature, each style play its own role to achieve the goals
and objective. Apparently and ear pleasuring style is democratic but an autocratic leadership
style also plays a vital role in amelioration of a company’s growth as well as enhancing the
employee capability since their role is independent. In a nutshell, leadership style is depends
upon the situation and work nature for leaders and they adopt the leadership style accordingly.
Task 3:
GLOBAL COMPENSATION AND BENEFITS STRATEGY:
All the multinational organizations have to consider the compensation and benefits planning
globally. Implementation of this strategy domestically to meet the requirements of an employee
is no doubt a great challenge but the potency of this challenge becomes stronger when it comes
to handling it globally with people of different cultures.
Comparison of compensation cost “prior” and “after” the landmark minimum wage law
Based on the given staffing cost data, the cost of an organization before the implementation of
minimum wage law was 9,164,694.18, after the introduction of minimum wage law in Taiwan
the final cost of the organization became 13,017,760.62 which is approx.: 42% increased. After
the hiring of expatriates, this cost was reduced to 12,007,500.34 which are approx.: 8%
decrement.
ACTION PLANS TO CEO:

A better compensation plan is one that attracts an expatriate, makes them feel happy without
effecting company’s cost and budget. Following would be the action plans that can be suggested
to CEO based on the given staffing cost data:
1. Home based approach: An approach where we can maintain the purchasing power of an
expatriate in their home country so they don’t feel dissatisfied or underpaid. The first
thing we would need to do is to know the employee’s home country gross income before
any deductions are made.
Then, we need to evaluate what amount the employee would pay the tax and social
security in the home country. This suppositional amount is then deducted from their gross
salary, providing us with a figure that depicts their estimated net salary in their home
country
2. Host country based approach: In this approach, an expatriate is offered a salary of host
country and receives benefits of host country compensation strategies. This approach
would be a cost effective for CEO but it could be difficult for repatriate while going back
to their home country.
3. The Headquarter based approach: This approach takes all assignees into one country
and offers a same pay scale to all employees that are used at the headquarters of the
company. This action plan can help CEO not to think much about setting an expatriate
salary since it would be standardized.
4. Balance sheet approach: In this approach, a company calculates the compensation using
the home country based approach with all the deductions, bonuses, allowances and the
reimbursements. After evaluating the net income, it is then convert into the currency of
host country. Since one of the fundamental goals of a global compensation management
strategy is to take care of the expatriate's current standard of living, creating an equitable
and functional compensation plan that merge the balance and feasibility is extremely
challenging for global companies. To achieve this, many companies adopt a balance sheet
approach. It would be beneficial for CEO to convert an expatriate’s home salary into host
salary and set a compensation plan accordingly.
Hiring Expatriate recommendation to CEO:
Inviting expatriates for international assignments would be easy and better in following
ways:
Variety of skills: For an international business, it might be difficult to find the right
person within the geographical area. Looking for candidates globally will give variety of
skills an organization is looking for with a number of professional and educational
backgrounds.
effecting company’s cost and budget. Following would be the action plans that can be suggested
to CEO based on the given staffing cost data:
1. Home based approach: An approach where we can maintain the purchasing power of an
expatriate in their home country so they don’t feel dissatisfied or underpaid. The first
thing we would need to do is to know the employee’s home country gross income before
any deductions are made.
Then, we need to evaluate what amount the employee would pay the tax and social
security in the home country. This suppositional amount is then deducted from their gross
salary, providing us with a figure that depicts their estimated net salary in their home
country
2. Host country based approach: In this approach, an expatriate is offered a salary of host
country and receives benefits of host country compensation strategies. This approach
would be a cost effective for CEO but it could be difficult for repatriate while going back
to their home country.
3. The Headquarter based approach: This approach takes all assignees into one country
and offers a same pay scale to all employees that are used at the headquarters of the
company. This action plan can help CEO not to think much about setting an expatriate
salary since it would be standardized.
4. Balance sheet approach: In this approach, a company calculates the compensation using
the home country based approach with all the deductions, bonuses, allowances and the
reimbursements. After evaluating the net income, it is then convert into the currency of
host country. Since one of the fundamental goals of a global compensation management
strategy is to take care of the expatriate's current standard of living, creating an equitable
and functional compensation plan that merge the balance and feasibility is extremely
challenging for global companies. To achieve this, many companies adopt a balance sheet
approach. It would be beneficial for CEO to convert an expatriate’s home salary into host
salary and set a compensation plan accordingly.
Hiring Expatriate recommendation to CEO:
Inviting expatriates for international assignments would be easy and better in following
ways:
Variety of skills: For an international business, it might be difficult to find the right
person within the geographical area. Looking for candidates globally will give variety of
skills an organization is looking for with a number of professional and educational
backgrounds.

Time saving: Hiring of expatriate will consume a little time to find the best fit candidate
for the given role. Since, expatriates are motivated and are usually willing for
international exposure, thus a company can find the right candidate in a very short period
of time.
International business strategies: Another benefit of hiring an expatriate is a company
can get the exposure of other international business strategies that comes with an
experience of an expatriate.
Hidden Cost for Hiring Expatriates:
Cost of training: On the flip side of benefits of hiring expatriates, there are some costs
incurred such as training cost. Training of an expatriate will require a lot of time along
with the training expenses like paying for different training software
.
Cost of tickets: When a company hires an employee from another country, it has to
finance the expenses of tickets and visa of an individual.
Accommodation expenses: A company has to make arrangements of an expatriate
residence and they have to pay on behalf of their expatriate employee.
HOFSTEDE FRAMEWORK OF CULTURAL MANAGEMENT:
Hofstede’s Cultural Dimensions Theory which was given by Dutch management researcher
Geert Hofstede in 1980, is a framework which helps in understanding the differences of
culture of different countries and how a business is effected by different cultures and how it
deals with it.
1. Power distance:
for the given role. Since, expatriates are motivated and are usually willing for
international exposure, thus a company can find the right candidate in a very short period
of time.
International business strategies: Another benefit of hiring an expatriate is a company
can get the exposure of other international business strategies that comes with an
experience of an expatriate.
Hidden Cost for Hiring Expatriates:
Cost of training: On the flip side of benefits of hiring expatriates, there are some costs
incurred such as training cost. Training of an expatriate will require a lot of time along
with the training expenses like paying for different training software
.
Cost of tickets: When a company hires an employee from another country, it has to
finance the expenses of tickets and visa of an individual.
Accommodation expenses: A company has to make arrangements of an expatriate
residence and they have to pay on behalf of their expatriate employee.
HOFSTEDE FRAMEWORK OF CULTURAL MANAGEMENT:
Hofstede’s Cultural Dimensions Theory which was given by Dutch management researcher
Geert Hofstede in 1980, is a framework which helps in understanding the differences of
culture of different countries and how a business is effected by different cultures and how it
deals with it.
1. Power distance:
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It defines the extent to which inequality and power is tolerable in the society.
• Low distance: It indicates that a culture encourages company’s structures that are flat and
feature decentralized decision-making responsibility, participative style of management, and
place emphasis on power distribution. It gives equal power to everyone.
• High distance: This culture accepts inequity and power differences,
encourages bureaucracy, and shows high respect for rank and authority.
2. Individualism V/s Collectivism
Individualism culture focuses on attaining personal goals and believes on performing individual
activities while collectivism believes on group working to achieve a common goal.
3. Uncertainty avoidance:
High uncertainty avoidance is characterized by a low tolerance of uncertainty, ambiguity and risk
taking while a low uncertainty culture is something where the tolerance of uncertainty, ambiguity
and risk taking is relatively high.
4. Femininity vs. Masculinity:
This dimension of culture is also known as “tough vs. tender”.
The Masculinity part of this dimension shows a preference in society for achievement, heroism,
assertiveness, and material rewards for success. On the flip side, Femininity part gives preference
for cooperation, modesty, caring for the weak and quality of life.
5. Short term vs. long term Orientation: This dimension includes the extent to which society
views its time horizon. A long term approach focused on future and hence delays the short term
success while short term orientation focuses on near future, involves delivering short-term
success.
6. Restraint vs. Indulgence:
Indulgence refers to the extent to which society allows relatively free environment related to
enjoying life and having fun. While, restraint shows the extent to which a society stifle the life
enjoyment and apply strict rules and social norms.
HOFSTEDE DIMENSIONS IN TAIWAN:
1. Power distance: Taiwan has high score of 58 on this dimension which shows that it is a
hierarchical society in which an organization is seen as reflecting inherent inequalities,
centralization is popular, and subordinates expect to be told what to do.
• Low distance: It indicates that a culture encourages company’s structures that are flat and
feature decentralized decision-making responsibility, participative style of management, and
place emphasis on power distribution. It gives equal power to everyone.
• High distance: This culture accepts inequity and power differences,
encourages bureaucracy, and shows high respect for rank and authority.
2. Individualism V/s Collectivism
Individualism culture focuses on attaining personal goals and believes on performing individual
activities while collectivism believes on group working to achieve a common goal.
3. Uncertainty avoidance:
High uncertainty avoidance is characterized by a low tolerance of uncertainty, ambiguity and risk
taking while a low uncertainty culture is something where the tolerance of uncertainty, ambiguity
and risk taking is relatively high.
4. Femininity vs. Masculinity:
This dimension of culture is also known as “tough vs. tender”.
The Masculinity part of this dimension shows a preference in society for achievement, heroism,
assertiveness, and material rewards for success. On the flip side, Femininity part gives preference
for cooperation, modesty, caring for the weak and quality of life.
5. Short term vs. long term Orientation: This dimension includes the extent to which society
views its time horizon. A long term approach focused on future and hence delays the short term
success while short term orientation focuses on near future, involves delivering short-term
success.
6. Restraint vs. Indulgence:
Indulgence refers to the extent to which society allows relatively free environment related to
enjoying life and having fun. While, restraint shows the extent to which a society stifle the life
enjoyment and apply strict rules and social norms.
HOFSTEDE DIMENSIONS IN TAIWAN:
1. Power distance: Taiwan has high score of 58 on this dimension which shows that it is a
hierarchical society in which an organization is seen as reflecting inherent inequalities,
centralization is popular, and subordinates expect to be told what to do.

2. Collectivism: Taiwan contains a score of 17 in a collectivistic society in terms of close long-term
commitment to the “member” group, where everyone takes responsibility for the members of
their group.
3. Faminity: Taiwan has a score 45 in this dimension, and considered a slightly Feminine society
where focus is on “working in order to live”, people promote equality, solidarity and quality in
their working lives.
4. Uncertainty avoidance: Taiwan has a score of 69 in this dimension and has a high preference
for avoiding uncertainty where people believe time is money and have an inner potential to be
busy and work hard.
5. Long term orientation: Taiwan scores 93 in long-term orientation culture where it maintain
some links with its own past experiences while dealing with the challenges of the present and
future.
6. Indulgence: Taiwan has a very intermediate score of 49 which does not indicate the potential
adoption of this dimension.
CRITICAL ANALYSIS:
Based on the above culture of Taiwan, the following recommendations can be given to
the CEO:
Since Taiwan has a high score of power distance, expatriates should be hired
using headquarter based where the same pay scale is offered to all employees that
are used at the headquarters of the company.
Based on the high score in PDI, hiring of experienced expatriates will need no
further justification and hence can help in crucial decision making.
Expatriates in collectivism culture will enhance the sense of responsibility for the
team members and will promote the long term commitment of employees.
Based on the Feminist culture, there will be cooperation and equality where the
expatriates can improve quality of work and life.
Uncertainty avoidance can help the expatriates to make sound decisions and to
avoid any circumstances that can create trouble.
Expatriates in long term oriented culture will definitely focus on the high vision
while not considering the small profits; their decisions will always be based on
the long term success.
Having strict norms in the Restraint culture, expatriates will never spend time on
leisure activities and hence promoting the work-oriented environment.
commitment to the “member” group, where everyone takes responsibility for the members of
their group.
3. Faminity: Taiwan has a score 45 in this dimension, and considered a slightly Feminine society
where focus is on “working in order to live”, people promote equality, solidarity and quality in
their working lives.
4. Uncertainty avoidance: Taiwan has a score of 69 in this dimension and has a high preference
for avoiding uncertainty where people believe time is money and have an inner potential to be
busy and work hard.
5. Long term orientation: Taiwan scores 93 in long-term orientation culture where it maintain
some links with its own past experiences while dealing with the challenges of the present and
future.
6. Indulgence: Taiwan has a very intermediate score of 49 which does not indicate the potential
adoption of this dimension.
CRITICAL ANALYSIS:
Based on the above culture of Taiwan, the following recommendations can be given to
the CEO:
Since Taiwan has a high score of power distance, expatriates should be hired
using headquarter based where the same pay scale is offered to all employees that
are used at the headquarters of the company.
Based on the high score in PDI, hiring of experienced expatriates will need no
further justification and hence can help in crucial decision making.
Expatriates in collectivism culture will enhance the sense of responsibility for the
team members and will promote the long term commitment of employees.
Based on the Feminist culture, there will be cooperation and equality where the
expatriates can improve quality of work and life.
Uncertainty avoidance can help the expatriates to make sound decisions and to
avoid any circumstances that can create trouble.
Expatriates in long term oriented culture will definitely focus on the high vision
while not considering the small profits; their decisions will always be based on
the long term success.
Having strict norms in the Restraint culture, expatriates will never spend time on
leisure activities and hence promoting the work-oriented environment.

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