Business & Management
Maciej Gerard Klimek
Table of Contents
2) Levels of organisations and functions
3) The roles and styles of leadership and management
4) Effects of Globalisation
5) Organisation’s CSR responses
6) Conclusion and Recommendations
Management is about doing things right, and leadership is about doing the right things. Boddy (2017). While managers essentially react to change, exercise their authority and direct groups, leaders lead people by inspiration, create team, communicate their vision, achieve common ground and win over people.
This report discusses the concept of leadership and Management. Levels of organisations and functions. The roles and styles of leadership and management. Effects of Globalisation. Organisation’s CSR responses. Conclusion and Recommendations.
A.Pienkowski, CEO of McDonald’s Poland said: ” world is changing so fast, and we, as a massive brand, are part of that change”.
The world is changing faster than ever in history: the development of new technologies, the collapse of the pass, and current market economy model, globalization; open borders, open markets, outsourcing, or, the global access to social media. All this results in an ever-greater variability of the business environment and requires from the today business ladders and managers a great deal of flexibility, completely new skills and management.
Levels of organisations and functions
The level of management determines the chain of command, the amount of authority and status enjoyed by any managerial position. The levels of management can be classified in three broad categories:
Leading and controlling the company.
The corporate goals, missions and objectives. Determined a detailed action plan and strategies. Establish policies. Organizational structure to conduct the operations as per the plans. Provide overall direction in the organization. assemble the resources. Control effectively the business operations, judge and evaluate the results.
Responsible for implementing policy ; allocating budgets and other resources. The middle level consists of departments, divisions and sections. – To implement the task set by top management. Interpret the policies framed by the top management. Run the organization effectively and efficiently. Coordinate between different departments. Issue the instructions to the lower level management. Motivate the workers and staffs for higher productivity. Report and make recommendations to the top-level management.
Responsible for technical work – delivering service, making products. Control of the operational plans developed by the middle level. direct and guide the workers about the work procedures. Provide on the job training to the workers. Arrange necessary tools, equipment, materials for the workers and look after their proper maintenance.
Like any global organization McDonald also improves towards new technologies improving their already good system, from the top management through divisions to the organizational level. Mechanistic model with elements of organic model at lover level. Introducing new forms of ordering and delivery cooperating in revolutionary organizational forms, e.g. Uber, eat or mobile ordering. Improving at the same time his 36,000 restaurants in over 100 nations already existing- sales points equipping, them with independent ordering by customers. Accelerating the time of already fast forms of buying.
The roles and styles of leadership and management
From decision making, through market reactions to consumer behaviour, psychology is an inseparable element (besides hard economic and statistical tools) that determines the effectiveness of the manager. The future manager can combine the skills of rational thinking with mature intuition and management of own and other people’s emotions.
A modern business organization should be socially involved and act on values that go beyond the horizon of its own benefits. The future belongs to reliable brands that are based on trust, arouse positive emotions and invite the client to cooperate. Striving to maximize profits in the shortest.
Possible time does not work in the long run. The largest companies owe their success to care for a lasting, honest customer relationship, based on mutual benefits. They know how important it is to establish a dialogue and create a relationship resulting from customer identification with the brand. To effectively manage others, you need to skilfully manage yourself, which is why it is so important to work on the development of your own leadership.
Leadership approaches follows in these three theories;
• Trait theories
• Behavioural theories
• Contingency perspectives
The first is based on personal characteristics associated with effective influencing. The second on manager ‘behaviours on two dimensions – initiating structure and consideration. The third one is a combination of the two above depending on the situation – the type of employees, the planned goal and the manner in which the task is completed. Boddy (2014)
Combinations of these three theories in practical use, can be seen in McDonald Poland, where CEO A.Pienkowski applies locally and general for the whole country. His leadership is based on the additional structure of combination and implementation of the four principles of management;
• Rational goal model – characterized by direct goal clarity with productivity accomplishment, aiming at reaching maximal input.
• Internal model process based on stability, control and documentation information management. To achieve stabilization and continue
• Human relation model focused on commitment, morale, participation, openness. This model is particularly contributing to the development of human resources.
• Open system model has been set mainly for innovation, adaptation, growth resources acquisition. Allowing and enabling easier expansion – change. Quinn (2003)
Rational and Internal by paying more attention to controlling, they rely on centralization and integration. We can observe this at the corporate and divisional level, for example based on McDonald’s global structure. However, the Internal and Open system model can also be combined at these levels, but so far more practical we see at the operational level. Boddy (2014).
Effects of Globalisation
The worldwide movement toward economic, financial, trade, and communications integration, with free transfer of capital, goods, and services. Boddy (2014)
In the era of globalization, we see the changes taking place in these theories and their exemplary application. When Leading, planning, organising, controlling in modern management, it has global capabilities we need to pay more attention to the external environment of organization.
Boddy (2014) shows us the model of the so-called PESTEL. Political, Economic, Socio-cultural, Technological, Environment and Legal, i.e. international analysis concept.
A modern leader and /or manager depending on a detailed analysis based on this model can set up new directions with greater confidence and create new trends and opportunities for development or expansion.
At the same time, it can affect positive shifts in economically weak or developing countries. Mr Pienkowski draws attention to these changes on the example of Poland. He continues change to have been initiated by one of the largest American corporations, in almost 400 McDonald stores in Poland, and by continuing with proven models it changes the living way and mentality in a given region. It also gives an example of how you can change with the new spirit of the times, of open borders and open societies (new generation with aces to global education and information) change the theoretical models and go towards combining their dependence on the situation -region-nationality. Also change in the same time the habits and attitudes of community in a specific area.
Like any global organization McDonald also improves towards new technologies improving their already good system, from the top management through divisions to the organizational level Introducing new forms of ordering and delivery cooperating in revolutionary organizational forms, e.g. Uber, eat or mobile ordering. Improving at the same time his 36,000 restaurants in over 100 nations already existing- sales points equipping, them with independent ordering by customers. Accelerating the time of already fast forms of buying.
Providing managers with greater freedom in local decisions adapted to the situation and culture in the region. The majority of global corporations follow a similar approach using the advantages of globalization – expand their markets and propagate their standard, gained from experience in Western economies.
Potential global strategy is created and driven, by the so-called drivers of industry globalization. Markers factor Economic factors. Environmental factor and Competitive factors “No business is immune from international forces, no what is it or how small its markets are. ” (Worthington & Britton, 2015, p. 49)
Alternative business structure can be multinational companies – located in one country and operating in many. Transnational companies – operating in many but decentralized. Global companies – Closely integrated operations across many countries.
Globalization creates new opportunities putting theory into practice. For example, Contingency or situational model Tannenbaum and Schmidt (1973) On the other hand, House (1996). Modern global leaders and their managers have the opportunity it connects and draws appropriate theories depending on the situation of the region. perceived leaders style as on a scale from autocratic to democratic. and on the other hand, use four styles of leadership; Directive, Supportive, Achievement orientated, Participative. In total another one can be applied in countries of Eastern Europe where democratic forms are similar to Western civilization, and others in China, for example, where the political system is less supportive of democratic solutions.
Organisation’s CSR responses
Corporate Social Responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. CSR is a concept with many definitions and practices. Mellahi (2010).
The modern era of CSR, or social responsibility as it was often called, is most appropriately marked by the publication by Howard R. Bowen of his landmark book Social Responsibilities of the Businessman in 1953. Bowen’s work proceeded from the belief that the several hundred largest businesses in the United States were vital centres of power and decision making and that the actions of these firms touched the lives of citizens in many ways. The key question that Bowen asked that continues to be asked today was “what responsibilities to society may businessmen reasonably be expected to assume?”. Bowen (1953)
Much of the early emphasis on developing the CSR concept began in scholarly or academic circles. From a scholarly perspective, most of the early definitions of CSR and initial conceptual work about what it means in theory and in practice was begin in the 1960s by such writers as Keith Davis, Joseph McGuire, Adolph Berle, William Frederick, and Clarence Walton. (Carroll 1999)
Carroll’s four-part definition of CSR was originally stated as follows: “Corporate social responsibility encompasses the economic, legal, ethical, and philanthropic expectations that society has of organizations at a given point in time”. Carroll (1999)
A good example of this we see in, one of the largest global brands McDonald. Economic responsibility is seen as the foundation of all operations in this corporation.
On the example; discussion and solution regarding the minimum wage. McDonald is relaying on employing young people and gives a good example of raising earnings rates for new employees. Being present in 100 countries around the globe is a leader in respecting young people’s rights – new employees and role model for others to fallow.
Also, ethical responsibility is very clearly developed in the McDonald’s organization. Care for a healthy and tasty meal, not just from the business point. They see the negative impact of such non-formal nutrition, changes in procedures were introduced with healthier ingredients. Were removed so-called trans-fat which create obesity, especially in young generation. A new health program was created for the youngest customers, with access to natural drinks and salads. The forms and structure of packaging were changed to less harmful for the environment. All this shows that McDonald not only cares about maximizing profits, but also is ethical responsible for the next generations and for the places in which they/we live.
Conclusion and Recommendations
Running an organization during a period of change -Globalisation process – begins with establishing a direction, a vision of the organization. An inspiring leader convinces people, focuses and engages their attention, creates coalitions of their allies who understand his vision, and strive for its realization. In today’s world, all companies live from the sale of products or services – everyone depends on sales success. A competent leader is definitely able to turn a group of people into an effective team of traders. It is he who unleashes their sales potential, directs and suggests how to always sell and earn more. It is the leader who builds the team, develops its strategy, shows the possibilities. John Welsh, former president of General Electric, said: “I did not direct General Electric, but people.”
Leaders creating effective visions are characterized by the ability of versatile thinking and readiness to take risks. The leader can lead people in the right direction despite obstacles in their path. It appeals to universally accepted values and emotions.
Boddy, D., 2014. Management: An Introduction. 6th ed. Harlow: Pearson.
Boddy, D., 2017. Management: An Introduction. 6th ed. Harlow: Pearson
House (1996) Management: An Introduction. 6th ed. Harlow: Pearson.
Tannenbaum and Schmidt (1973) Management: An Introduction. 6th ed. Harlow: Pearson.