Leading and Managing in Global Environment: Final Report A2

This report delves into the concept of the Halo Effect as defined by Rosenzweig, summarizing key arguments from selected chapters of "The Halo Effect" and explaining its relevance in management practice. It further explores the ability of public companies with distributed ownership to simultaneously achieve financial and social goals. The report analyzes the contributions of the Halo Effect within organizations, providing examples to illustrate its impact. The report also discusses three different topics: managing financialized firms, the social context of business, and business ethics, to determine the capability of public organizations to achieve both financial and social goals. The analysis incorporates insights from the course readings, offering a critical perspective on the challenges and opportunities faced by companies in balancing profitability and social responsibility.

Leading and Managing in
Global Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Summarisation of key arguments in relation to the concept of Halo effect as defined by
Rosenzweig.............................................................................................................................2
Contribution of Halo effect in management practice within the organisation.......................3
Explanation of the concept related to three different topics and determining the power of
public companies with distributed ownership to achieve both financial goals and social goals 6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Change is continuous in all the business organisations irrespective to their nature and
size. The factors that bind the organisation to made changes in their existing operations are
known as external. All these factors are out of the control of an organisation and majorly covers
the aspects like political, technological, social, legal etc. It is the duty over the management of an
organisation to accept all the changes and implement within the organisation in appropriate
manner (Lopez and Wise, 2015). The role of management is not limited to the aspect of
implementing changes, they must have to focus over determinants like leadership which aid in
leading organisational operations towards positive direction. The two different objectives are
analysed with the help of this report. First is about understanding the role of Halo effect in
management practice of an organisation. Second is related to determination of public
organisation with distributed ownership ability to attain financial and social goals.
The aspects which are covered in report includes understanding of the concept of Halo
effect in accordance to Rosenzweig and the contribution of Halo effect in perspective of
management within an organisation. Also, defined three different topics such as managing
financialised firms, social context and business & ethics for determining the capability of public
organisations with distributed ownership to achieve both financial and social goals same time.
MAIN BODY
Leading and managing change is the important concept from the point of view of all
organisations prevails under different industries all over the world. Change is the term that define
as occurrence of new aspect regarding of performance of work (Lawrence, 2015). In
organisational context, this will brings an obligation upon management to accept the same for
improvement of functioning. The practice of accepting change is known as management practice.
This is the wide concept which is not limited to the aspect of implementing change but also
includes guidance to employees for support in functioning of their functions. So, the aspect of
management includes identification and implementation of new methods of working and
innovation along with providence of guidance to employees for performing functions in
adherence to accepted changes. The different kind of common areas in relation to them changes
are identified by management includes empowerment of staff, training, quality approaches, new
technology etc. The main benefit associated with this aspect is related to improvement in internal
1

abilities of an organisation for attainment of overall objectives. The another major benefit
attained through the acceptance of this concept is about competitive advantage in market.
Changes due to presence of factors under external environment have direct impact over the
functioning and performance ability of an organisation. Each and every organisation is not able
to accept all the changes present in market due many reasons like internal capabilities, lack of
knowledge, lack of resources etc. So, the one who is taking care of all the changes and adopt on
timely basis will be able to get competitive edge.
In respect to normal functioning of management, thy have the duty to adopt the practices
or strategies which provides edge to their operations and enables their easy identification in
market (Komives, 2016). The lots of practices in respect to this are adopted on regular basis
includes branding, promotion, marketing, communication, creation of Halo effect etc. All these
techniques provides an opportunity in creation of separate image of an organisation in market
where all the consumers attract towards their offerings. Also, these will persuade the behaviour
of consumers to buy their products and stick with their brands.
The concept covered under this report is also considered as one of the effective
management practice which provides an opportunity in creation of positive image of an
organisation in market known as Halo. This practice includes usage of positive impressions of a
person, company, brand and product in one area to positively influence others opinion or feelings
present in other area. This concept is wide in nature due to its scope of coverage. This is also
known as cognitive bias. The detailed description in relation to this topic along with application
over practice of management is present below for determining the extent of impact upon
organisation.
Summarisation of key arguments in relation to the concept of Halo effect as defined by
Rosenzweig
The different arguments presented in respect to the concept of Halo under various
chapters by Rosenzweig are presented below:
 As per the author, the concept of Halo effect not walks around the behaviour of person.
The major focus under this is provided over the treatment of person by other individuals.
 In accordance to the view of the author, Halo effect creates the way for mind in respect to
creation and maintenance of a coherent and consistent picture. This will definitely further
contributes in reduction of cognitive dissonance. To present this concept the example of
2

president Bush was given by author. Here, the approval rating of Bush was increased
even after adherence of bad economic policies. The reason behind the same was
considered as Halo effect because voting was provided by considering general aspects
instead of special policy (MacKian and Simons, 2013).
 Aper the view of author, Halo effect is created in the situation of positive experiences
ascertained by consumers from specific product line of brand. This will creates the
perception that all the other product lines of brand are equally qualitative in nature This
will correlates the brand strength with loyalty and contributes in development of brand
equity.
 As per the view of author, commonly this is used by the organisations through
capitalisation of their all strengths. In this regard, they focus over increment of the
marketing of their successful products. This help in improvement of their visibility and
brand strength that further contributes in improvement of the sales of other products and
services of an organisation.
 Author also stated in the chapters that successful impact of this creates the perception
which is difficult to break through any type of third party interferences. The power of this
impact enables the organisation in building themselves as leader in front of the industries.
 Author widens the concept and mention about the creation of Halos impact through
corporate culture followed by an organisation (Jones and Harris, 2014). This concept is
explored as adherence of effective culture and application of all the rules and standards.
This will provides an opportunity in formulation of effective presence in front of different
stakeholders. The positive experiences in this area by stakeholders creates the Halo effect
and contributes in improvement of the overall image of an organisation. The direct
impact of same in future will be determined upon sales and profitability towards positive
direction.
Contribution of Halo effect in management practice within the organisation
Halo effect is also known as Halo error. It is one of the type of cognitive bias. This
concept is about attainment of benefit from positive expressions present in one area through
influencing the behaviour of others present in some another area. The working nature of this
aspect is not just limited to the point of whole organisation but each and every different attribute
is covered includes brand name, product and person. This is totally opposite from the concept of
3

Horn effect. Under this, negative perception in one area is perceived by others same in another
area that diminishes the viability of subject (Leadership Skills, 2019).
The example which help to clear out the meaning of Halo in relation to person, when
individual saw the good photograph of any person who is attractive, well groomed and properly
attired then automatically assumed about their preferences, ideology, aspirations and social
perception in positive manner. In overall nature, this concept is covered under the determinants
of psychology. This is so because associated positive quality creates the positive perception
regarding the whole image of substance. This will definitely help in improvement of image in
such areas also where having no identity. The benefit is ascertained the manner that any negative
news not easily diminish the image because considered as mistake.
While taking in respect to the organisation, this concept can be used in many respects.
The manger of an organisation uses for the purpose of appreciating employees enthusiasm
(Fragouli and Ibidapo, 2015). The benefit of same is ascertained in the manner of good
performance and higher engagement towards the organisational activities. Even, many other
aspects will be justified that further aid in higher motivation includes higher recognition &
responsibilities, friendly environment etc. There are many other aspects and points in relation to
which this psychological concept is used within an organisation includes creation of brand
strength, brand loyalty and brand equity. Marketing and promotion is the important function of
an organisation to improve their sales and brand name in market. The Halo concept is used by
the many big organisations to attain success in market. The number of benefits that can be
attained by these organisations through successful acceptance and application of this concept
includes;
 This will provides an opportunity in continuous development of brand loyalty along with
repeat and loyal customers.
 This will also aid the organisation regarding establishment of themselves as leader of
industry.
 This will help in development of the working performance of employees along with their
engagement.
 This will also help in development of positive working culture and high motivational
environment. Here, all the employees are perform work with integrity and harmony for
attainment of organisational goals.
4

For clear depiction of the concept, application is presented below through ascertainment
of the different sector organisational examples (Shore, 2014). This will clearly help to
understood the usage regarding management practice and attainment of different benefits defined
above;
Apple is the organisation working under the electronics sector. This is one of the
successful organisation exist in all over the world. The management of this organisation is
profound that enables them to achieve such significant position in market. One of the basic and
common function performs by management is related to branding of product in market related to
an organisation (Halo Effect. 2020). In this respect, Apple management uses the concept of Halo
and ascertain benefits regarding success of all segment products in market. Organisation provide
major focus over branding of their product iPhone in market. They hire the professionals in
proper demonstration of the features and benefits associated with product. This effort of the
organisation turns into the result with the higher amount of sales of iPhone in market on their
launch day. This creates the positive perception and behaviour in the mind of consumers towards
the quality and reliability of this organisations product in market (Bloxham, Ehrich and Iyer,
2015). This generates the Halo effect and enables the organisation in creation of positive value of
their different products exist in market. The impact of same ascertained positive in a way where
sales of iPod and Apple Mac was simultaneously increased. There are many other benefits
attained by Apple through the effect of this concept which are defined above in general. In
relation to the Apple, various amount of attained benefits are presented below:
 Increment in goodwill and branding. Also, able to attain the position of worlds largest
organisation among all the different sectors.
 Presence of highly capable employees whom are able to perform every type of function
in any situation.
 Development of the culture of innovation. This enables the organisation to produce the
highly innovative and quality products which are effective fulfilment of all consumer
needs.
 Able to attaining high customer base in all different product categories of an organisation.
 Continuous improvement in productivity and profitability of an organisation all product
ranges.
5

Explanation of the concept related to three different topics and determining the power of public
companies with distributed ownership to achieve both financial goals and social goals
Public companies with distributed ownership are those which borrow money from market
through issuance of their shares (Stanleigh, 2013). The persons who hold such shares are called
as the owners of an organisation in accordance to the amount of shares held by them. The interest
and power of such owners is also ascertained on the basis of number of shares hold by them
within the organisation. These organisations are working for the purpose of attaining both
financial and social goals. The basic reason behind attainment of both aspects will be
ascertainment of long term sustainability in market. In this regard, organisation has to follow the
different aspects properly like management of financialised firm, fulfilment of social context of
firm and implementation of business & ethics principles. All the three different aspects are
varied in nature and help in successful completion of different activities associated with financial
and social determinant.
Social context of firm is the area which covers the activities related to providence of
benefits to society. In respect to the public organisation, must for them to provide products and
services which are beneficial for society (Al-Haddad and Kotnour, 2015). Also, they have an
obligation regarding providence of extra ordinary services on the name of CSR that help
different sections of society in varied nature. As compared to private, public organisations are
more obliged from the government side to carry operations which are optimally beneficial in
nature for society. There are many public organisations operate business in UK. The main aim of
these organisations is to build such products and services that satisfy the requirement of
consumers in all nature i.e. quality and price. On the other hand, on the name of CSR they have
to carry additional activities which are beneficial in nature for environment and society. This will
help in future regarding attainment of social objectives. The different public companies operates
in UK includes Tesco, SainsBury, M&S, H&M etc. The different activities which are performed
by M&S to fulfil their social objectives along with CSR obligation includes;
 Charity and community funding donations: Here, donations are provided to charitable
organisations by local stores on the basis of the issues present in local community.
 Clothing and equipment: M&S also donates the returned clothes and business surplus to
the charity named as Newlife. Also, generate the funds through recycle of the garment
and donate the equipments for disabled children's.
6

 Food: M&S also donates the food items to the charitable institutions. This process is
handled by the store manager.
 Major disasters: This organisation also contributes towards the minimisation of negative
impact of major disasters. In this regard, they use their local links and provide help to the
individuals of society (CSR activities of M&S, 2019).
Performance of all the social activities with earning profit justifies the interest of all the
stakeholders. So, this resultants into attainment of their support along with organisational social
objectives.
Business and ethics is another term that has huge contribution towards the attainment of
both financial and social objectives. Public companies have wide operations along with business
activities in all over the world. In this case, important for them to implement common business
policies and ethical standards. This will not only help in controlling the operations properly but
further aid in maintenance of same culture in all different workplaces (Leadership Skills, 2019).
The further benefit associated with this aspect ascertained in the manner of developing same
quality products. To support this description example of H&M is considered that depicts how
adherence of business and ethics contributes in attainment of both financial and social goals.
This is manufacturing organisation in clothing sector and provides the product in all over the
world. To maintain the same kind of standards, quality, and working culture common ethical
principles are implemented and adhered by an organisation. These different code of ethics persist
in H&M are presented below;
H&M has zero tolerance policy against corruption and demand the compliance of all the
rules and regulations along with own business principles. This restricts the business partners of
organisation to profit gift to any of their employee. All the employees of an organisation
irrespective to their nature and post needed to sign the code of ethics and provides commitment
for their compliance too. H&M also follows the Whistle-blowing procedure (Code of ethics
applied by H&M, 2019). This allows the confidential reporting of potential breaches. The
benefit of these ascertained by an organisation in the manner of maintaining same quality of their
products at all different workplaces along with competent workplace environment. This
resultants into attaining continuous higher sales which help to grab financial objectives. On the
other hand, satisfaction of employees with customers help to attain social objectives.
7

Managing financialised firms is important factor that help to grab the both objectives
financial and social. Majorly, the benefit ascertained will be related to financial aspect of an
organisation. Agency theory has major focus over profit maximisation of an entrepreneur along
with value maximisation of the value of manager. Diminishing value of shareholder impacts
capability to earn profit. The aspect of aligning interest of manager and shareholder aid to attain
each and every kind of objectives as mentioned above (Alavi and Gill, 2017). This help in
attainment of economic value along with risk adjusted return on capital. Usage of same in public
organisation help to higher returns along with support of all.
CONCLUSION
It has been concluded from the above report that Halo effect has positive impact over the
organisation in development of their overall brand image in market. The concept of Halo is much
widen and not covers the good quality of products but other areas related to organisation are also
considered. Application of same over organisational employees, structure and corporate culture
help to strengthen the overall brand. It is possible for public organisation to attain financial and
social goals with shared ownership. The way help an organisation in attainment of same includes
adherence of business and ethics principles, social context of firms and management of
financialised firms. In complete manner, this will provides an opportunity in attainment of
complete business goals.
8

REFERENCES
Books and Journals
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model
for successful change. Journal of Organizational Change Management. 28(2). pp.234-
262.
Bloxham, R., Ehrich, L. C. and Iyer, R., 2015. Leading or managing? Assistant regional
directors, school performance, in Queensland. Journal of Educational Administration.
53(3). pp.354-373.
Fragouli, E. and Ibidapo, B., 2015. Leading in crisis: Leading organizational change & business
development. International Journal of Information, Business and Management. 7(3).
p.71.
Jones, M. and Harris, A., 2014. Principals leading successful organisational change: Building
social capital through disciplined professional collaboration. Journal of Organizational
Change Management. 27(3). pp.473-485.
Komives, S. R., 2016. Leadership for a better world: Understanding the social change model of
leadership development. John Wiley & Sons.
Lawrence, P., 2015. Leading change–Insights into how leaders actually approach the challenge
of complexity. Journal of Change Management. 15(3). pp.231-252.
Lopez, P. and Wise, D., 2015. Leading Change for the Implementation of Common Core State
Standards in Rural School Districts. Education Leadership Review of Doctoral
Research, 2(1), pp.47-56.
MacKian, S. and Simons, J., 2013. Leading, managing, caring: understanding leadership and
management in health and social care. Routledge in association with The Open
University.
Shore, D. A., 2014. Launching and leading change initiatives in health care organizations:
managing successful projects (Vol. 213). John Wiley & Sons.
Stanleigh, M., 2013. Leading change. The Journal for Quality and Participation. 36(2). p.39.
Online
Leadership Skills. 2019. [Online]. Available
Through:<https://www.skillsyouneed.com/leadership-skills.html>.
Halo Effect. 2020. [Online] Available through: <
https://www.psychologytoday.com/us/basics/the-halo-effect>.
CSR activities of M&S. 2019. [Online]. Available Through:
<http://fashiongear.fibre2fashion.com/brand-story/mands/corporate.asp>
Code of ethics applied by H&M. 2019. [Online]. Available Through:
<https://hmgroup.com/sustainability/vision-and-strategy/CodeofEthics.html>
9