The Corporate Governance Article Example | Topics and Well Written Essays - 2000 words

The Corporate Governance - Article Example In civil-law countries, company law consists of statute law; in common-law countries, it consists partly of the ordinary rules of common law and equity and partly statute law. Two fundamental legal concepts underlie the whole of company law: the concept of legal personality and the theory of limited liability. Nearly all statutory rules are intended to protect either creditors or investors. There are various forms of legal business entities ranging from the sole trader, who alone bears the risk and responsibility of running a business, taking the profits, but as such not forming any association in law and thus not regulated by special rules of law, to the registered company with limited liability and to multinational corporations. In a partnership, members "associate," forming collectively an association in which they all participate in management and sharing profits, bearing the liability for the firm's debts and being sued jointly and severally in relation to the firm's contracts o r tortuous acts. All partners are agents for each other and as such are in a fiduciary relationship with one another. Limited-liability Companies or Corporations The company or corporation, unlike the partnership, is formed not simply by an agreement entered into between its first members; it must also be registered at a public office or courts designated by law or otherwise obtain the official acknowledgment of its existence. Under English and American law the company or corporation is incorporated by filing the company's constitution (memorandum and articles of association, articles or certificate of incorporation) signed by its first members at the Companies Registry in London or, in the United States, at the office of the state secretary of state or corporation commissioner. THE LEGAL FRAMEWORK GOVERNING BRITISH [companies overview] In Britain, the vast majority of companies are incorporated under the Companies Act 1985. The Act creates a distinction between private companies and public limited companies. Only a tiny fraction of companies incorporated in Britain are registered as public limited companies.Nevertheless, from a corporate governance perspective, they are of primary importance. A private company cannot apply to have its equity traded on a stock exchange, and debates about corporate governance in the United Kingdom have focused almost exclusively on companies that are publicly quoted. In the United Kingdom, most public companies that have their shares quoted for trading have been admitted to the Official List maintained by the Stock Exchange and are known as "listed" companies. A listed company is obliged to comply with the Listing Rules of London's Stock Exchange (commonly referred to as the "Yellow Book").The Yellow Book regulates the conduct of key transactions and imposes substantial disclosure obligations on listed companies.

Peugeot Case Essay Example for Free

Peugeot Case Essay * Introduction Through this final assignment I will explain how the French company Peugeot, can introduce it hybrid car the 5008 hybrid HDI. I choose an hybrid car for different reasons. The first one is that I think that hybrid cars are going to know a better future than electric cars. In effect, this is a huge change for people in general and they are not used to that way of driving and consuming. Offering an electric car is too radical and making hybrid cars, combining fuel and electricity is a good way to make a transition. This is why I choose to makes it on hybrid car. Secondly, I choose the 5008 hybrid HDI because is one of the biggest car that Peugeot is offering, and as we know American people are more likely to use biggest vehicles than in France. Finally I choose Peugeot for the reasons explained bellow. The company is also known as the Group PSA. Actually PSA is the biggest car company if France and have for main competitor Renault the second biggest group in France. The company has extended and sells their products to different region in the world like in Asia and Latin America. With all the ecological issues within the car industry the car industry, companies have the obligation to find alternatives to the CO2 problems, but also because innovation is always recommended no matter the industry. This is why Peugeot presented in 2009, its new car the Peugeot 5008 HDI Hybrid. Nowadays, Peugeot is not very present in United States, and this new product could be an opportunity for them to enter this market. Through this assignment, I will answer the question of the case by explaining the reasons to export, but also by studying the competition present in the US market and all the potential risks that the company has to avoid. Finally I will end the final by making the marketing plan that Peugeot could adopt in order to enter the market. Why Peugeot should export the 5008 HDI hybrid? Many reasons make that Peugeot want to invest in the US market. But even if they already have an international experience due their presence in Latin America and Asia, they have to be careful because the US market has its own specificity. Their new hybrid cars could be a huge opportunity to enter this market. In effect, hybrid cars are becoming more and more appreciated in the US market and people like this kind of car. The American market is such important that it gives more or less the trend of sales for the coming years. Since 2001, the market never stops growing and the forecast for the next year seems to be good as it is show on the graph below: As we can see, the increase has been constant through the years and will don’t stop until 2015. Those forecasts seem to be excessive but in fact they are quite true. In August 2012, a study has been made by an American website â€Å"hybridcars† and it shows that the number of sales has increased looking at the previous year. In august 2012, 249,311 of cars have been sold which represent an increase of 63.2% looking at the number of sale at the same period. As we can see the increase is extremely important, and when we look at the total number of sales of all cars, it makes more important the increase. In effect, the increase of all the vehicles at the same period is â€Å"only† about 14.0%. I say only because there are 50% of gap between all the type of cars and hybrid cars. This enormous increase is also due to the fact that the US government is helping people who want to buy an hybrid car by creating incentives. This incentive is made by giving a tax credit. The  credit is not fixed and it is calculated in function of the State where the car is bought and also about the brand of the car. Those tax credits are quite important because it goes from $900 to $3500. Each state have its own program, like in New York, they have the â€Å"Clean Pass†. All those points show that Peugeot should enter in the US market. The forecast that we have seen are very encouraging, and other factors should help hybrid cars in general, like the environmental issues. Something that also shows that hybrid cars are â€Å"trendy† is that in many movies or tv shows we can see hybrid cars, and the most used one is the Toyota Prius which is like the muse of hybrid cars and that we have seen in the tv show â€Å"Desperate Housewife† or â€Å"South Park†. Peugeot should try to surf on that new wave, but everything is not going to be so easy and Peugeot is going to face several barriers. Economic and political barriers that impact the export. The car industry is an industry that is facing a lot of legal issues. In France for example, car that are polluting and that have an important CO2 emission are going to be taxed, but security law and regulations are also numerous. When you want to enter in the US market you have many things you have to be careful about. Concerning the product in itself for example the company has to obtain a certificate which is called the CBP clearance. If car companies want to obtain that CBP certificate that says that you are not bringing weapons or drugs, you have to be conformed to the Environmental Protection Agency and the Department of transportation. If you want to bring cars in the US, your cars have to answer to those norms as described by the official American website www.cbp.gov , â€Å"Imported motor vehicles are subject to safety standards under the Motor Vehicle Safety Act of 1966, revised under the Imported Vehicle Safety Compliance Act of 1988; to bumper standards under the Motor V ehicle Information and Cost Savings Act of 1972, which became effective in 1978; and to air pollution control standards under the Clean Air Act of 1968, as amended in 1977, and 1990.† In general, cars that are manufactures outside the US have to be in good standing with the US safety regulation, bumper and emission standards. Still with the CBP website, taxes are also established for the importation of goods. For autos, the importation tax is about 2.5%, and duty rates are based on price paid.  All those elements, Peugeot have to take them into account and adjust their production and prices following those rules. But those laws specific to the US market are not the only problems that Peugeot can face. In effect, the international competition can be also a huge issue. Peugeot, a strong international competitiveness. To make a good study of the international position of Peugeot in comparison to its competitors I will first make a study of the macro environment, following by the study of the meso environment. To make the study of the macro environment it is advocated to use the Porter’s Diamond. * The factors conditions: Actually, this is one of the most important things for the company because they are not present in the United States and they don’t have any infrastructures and if they want to produce their car, they will have to invest a lot in that. Concerning the human resources, United States is a huge country with many people that are already trained to this kind of industry and they are very competent in that industry, so this would be a strong advantage for Peugeot. * Demand conditions: I think that the demand in the American market is quite important. As we have seen in the first part of the final the demand for hybrid cars is increasing, and we are talking about a huge increase of 63%. * Related and supporting industries: All companies are focused on what the consumer is expecting, it means making economies. A lot of companies were developing and making research on electric engines in aim to reduce the consumption of gas. The car industry has done the same and developed new cars with both engines with gas and electricity. Those industries working in the new raw materials and fuel are in the center of a lot of other industries because they want to reduce their cost. * Firm strategy, structure and rivalry: I will develop this part in the following parts and in the Porter’s 5 forces. * Government: In a general aspect the US government is making efforts to promote the Hybrid cars, by allowing the different states to make incentives and making a tax credit to people who are buying hybrid cars. But Peugeot is a foreign company, and as we have seen they are a lot of laws and standards that foreign companies have to respect if they want to integrate the US market. * Chances: Looking at a general aspect Peugeot have good chances, because of the global warming and the fact that people don’t want to spend so much money in gas and that they want to reduce their cost. This is a chance because if they can produce a good car it is going to be the future and people will buy it. They have to make huge efforts in Research and development in aim to be competitive, because they are not the first one that want to be present in USA. In effect, Toyota and its famous Prius are present in the US market for many years, so Peugeot have some delay looking at them. Now I will use the Porter’s 5 forces for Peugeot to make the study of the meso environment. * Threat of New Entrants: I clearly think that the industry won’t see another competitors coming. The market is actually saturated and it count really big companies that can develop their product development and can invest in research and development which cost a lot and that new entrants could not support. So for the moment Peugeot will have to face actual competitors. So we can say that the threat of seeing new entrants coming is very low. * Bargaining power of suppliers: Peugeot is one of the biggest companies in France and in Europe, and to be at the top of such region they need to have a very good relationship with their suppliers. But what makes the quality of the car is the quality of the raw materials, this is why it gives a huge power to their suppliers. * Bargaining power of customers: I think that the power of customer is very high. This is mainly due to the substitutes that are offered to those customers. Train, bus, plane all those alternatives are offered to the customer, this is why they have a lot of power, because if Peugeot want to keep them they have to listen to them and do what they want. More of that they have a lot of competitors, and the customer is looking for the best product at the lowest price and he is helped by the development of internet where he can have access to different companies staying at home, but also where they can post their comment on a product. This is why the power of customers is high. * The threats of substitute products: They are a lot of different substitutes, on a local way and on a more national and international way. When I say local I think about bicycles for example and when talked about national or international I talked about buses train and plane. But even if they are numerous that doesn’t mean that they are powerful, because even if environmental problems are present nowadays, people prefer use hybrid cars rather than carpooling for example. So we can say that the power of substitutes is quite low. * Rivalry among existing competitors: The car industry is a very hard industry with a lot of different competitors. Following the International crisis and the environmental issues all the companies have adopted the same strategy by developing hybrid cars to answer to the new demand. Some of the big competitors have disappeared like General Motors, but in Europe, Volkswagen is leading everything and they have a huge potential of growth because they can invest in research and development. So we can clearly say that the existing competition is very high. If we look at the whole 5 forces, the car industry is a very strong industry with strong actors which are closing the entry for new competitors and where actual ones have to be more and more innovative and invest a lot in R D. The influence of culture in the marketing strategy. To have a quick view of the culture of the USA, we can use the study of Hofsted. You can see below the difference between the USA and France: * Power distance: Comparing to France, the US score is low (40), and this is mainly due to the premise â€Å"liberty and justice for all†. This also involved the fact that superiors in a company are more attainable for employees than in France, the information easily shared and employees are more frequently consulted to take decisions. * Individualism: When we look at that score we can see that the American has one of the highest score possible (91). It means that everything is based on the personal performance but also that employees are self-reliant and promotion for example is made looking at your previous result. But this also means that we expect from American people to be very autonomous very young. * Masculinity: The American score of 62 is quite elevated regarding to the French score. Again it means that American people tend to display and talk freely about their â€Å"successes†. American people â€Å"live to work† in aim to earn money and rewards. This is an important point for Peugeot, because as we have seen in the diamond description they don’t have any building or employees, and this could be a very good opportunity. * Uncertainty avoidance: The score of 46 is also a very good news for Peugeot. This means that American people have a good acceptance for innovations and a strong willingness of testing new things and new products. American people tend to be more tolerant of ideas or opinions from anyone and allow the freedom of expression. * Long-term orientation: Both of the countries have a short term oriented culture. It means that companies perspectives are based on short term with profit and loss statement made on a quarterly basis. This is why we ask employees to have quick results. We can also use Hall’s communication context, to try to identify and define the American culture. I think I can say that USA is a  low context culture. In general American people prefer to communicate on situation and are more oriented on their daily life. They mostly communicate within their out-groups in a broad and diffuse way. In general they communicate only on what is necessary. This is one of the main difficulties for the company is to adapt their product to a culture unknown for them. They have to succeed in doing the cross-cultural management and create and make coordination from this cross-cultural management. Which market entry? They are many ways for Peugeot to enter in the US market, they are all different, they have all their advantages and drawbacks. But in those times, where everything needs to be done very quickly, some choices are more relevant than others. Importing could be a good solution quick but also complicated in a sense that it would be expensive because as we have seen there are taxes to make enter cars into the US, more of that they will have to find a distributor in the USA and they will lose some of their power in distributing their cars. I think the best, the easiest and the quickest way is to make and create a franchise system. They are many advantages of creating a franchise. First you will use workforces of the country where you want to be in, and those people already know how their market is working and are things are doing in their country, you don’t have to spend such time looking for information and local people are more aware of those cultural differences. Secondly, you don’t have to change your brand name, it will only cost you few trainings that you have to provide to the employees. It is also very benefic because you can make pay the people that want to make a franchise with your brand some royalties, but in return you will have to give them communication support, you have as I told it before to trained the employees and you will have to keep eyes and see if the franchisee is not doing things on its own. In general, companies like this kind of market entry because they can keep some control on the franchisee, and because they received royalties which are between 1 and 20%. They are other risk that Peugeot don’t have to forget also. It is the fact that the franchisee will pay with delay or won’t pay at all. Another recurrent issue of the franchise is that the franchisee can use the knowledge taken from the franchisor and  use it on its own after that. It is a problem of intellectual property. What about an acquisition? Making an acquisition could also be a good type of market entry, because of some advantages like: * Quick entry: it allows acquiring resources and competencies in a new market very quickly. * Market power: it also gives you more market share if you make an acquisition with a competitor, you will take its market share and it will help you to be bigger. * Market penetration: it also allows you as in this case to enter in a new country or market. * Gain of competencies and resources: you will also earn some knowledge and knowhow from the new company and you will improve your productivity. But it has also some disadvantages: * Cost of acquisition: acquiring another company could be very expensive and specifically if we talk about a hostile takeover. The price depends on the size of the company, their market shares, their resources and other many things. * Managerial issues: the company that you are acquiring may have different way to work, different business culture and it can create tensions between the two entities. * Unrelated diversification: a company can make different acquisition, an horizontal and a vertical one. The company has to be careful and see if the company that it acquire has relation with its industry to make the acquisition easier. * Management of workforces: when acquisition happened it is not unusual to see people fired and it can create tensions within the company or strikes like in France. The International Product Life Cycle: The international product life cycle has some particularities. The IPLC is divided in 4 phases. In general, during the first phase, it is the US exportation that dominates the global market. But when this phase is ending, the next 3 phases see the producers from other developed countries becoming more and more important. Those countries first established their production and sale their product only in their own market, but in a second phase they go to third country market and finally integrated the US market in the last phases. If the US market is very strong in the very first phase is for some  reasons we have seen previously. In effect, the important market size, the acceptance for innovation, the R D resources and the well-developed marketing information system, make of the US market a very good market to launch a new product. So if we looked and follow what we have seen just before we would be in the fourth part of the international product life cycle, but because we are talking about an innovation in a very well-known market and industry we can talk about a new product so we would have been in the first phase, but in this first phase we already have seen companies from countries different from the US like Toyota, exporting and developing the Hybrid market in the US. I think the Hybrid car market is not at the maturity phases and it will reach in the future more customers. Effects of the exchange rates and inflation: In effect, the exchange rate is an issue that Peugeot have to consider if they want to make business in another country. The device in the US is the USD (United States Dollar) while in France it is the â‚ ¬, which is good in fact, because it will cost less for the French company to invest in the US. We should have a quick look at the fluctuations of the exchange rate of the two devices since the beginning of the year: As we can see, the exchange rate has fluctuated a lot with a minimum of 1.21 and a maximum of 1.34. Even if it seems to be a small change, in reality it represents a huge amount of money due to the big quantities of possible product sold. Peugeot has to take into account those fluctuations, but the consequences are less important that if would have been in the other way passing from dollars to euros. They still have to be careful and to anticipate those changes in aim to invest at the right moment. This is also very important, because the whole euro zone knows some bad times due to the economic crisis, this is why it could be interesting for them to invest in a country in a more â€Å"stable† country. Personal selling: First of all, before adapting its way to communicate and sale its product, the French company has to define its target. Because it stills an innovative product, the final consumer should have an higher income’s average and should be from the high-middle and upper class. Also the majority of people  that are buying hybrid car are people about 55 years old and older. They are also people that are aware and that are concerned about environmental issues that the planet is facing and that what to contribute to its safety, but also that think that they are going to save money because the price of the fuel is going to increase. When you want to sell a product in United States, you have to take into account many factors. First that they see themselves as the best business men and having the biggest companies of the world and that foreign companies are inferior. But American people are also expert of cross-marketing which means that they like to promote their product on different support like blogs, website, banners, tv adverts†¦ The use of technology is also important and using them is very important when you want to sell your product to an American consumer. Finally, American people love to have humor on their advertising. But contrary to France, they prefer to make humor on situations of the everyday life and not on the people. More of that when you want to communicate in the US, you have to be careful with the fact that this country have a lot of different ethnics within it. They are people coming from South America that are latinos but they also have a strong black community which have a lot of power, so you have to communicate to each of them. Making communication and selling products in USA is very different from selling in France and Peugeot again has to adapt to that issue. But with the principal Idea of making a franchise in the US it will be easier to adapt their communication to their customer because they will have employees from the US and that understand the American culture. International marketing controls: I think that if Peugeot what to be successful in the US, they will have to constantly make marketing controls. The different points we have been through this final are part of the control that Peugeot have to make. Make studies about their competitors, use the Porter’s 5 forces and Porter’s diamond, making a SWOT analysis, making a PEST analysis, controlling their financial management with the money they have invested in R D for example, controlling the fluctuation of the exchange rate and studying the international product life cycle, all those elements are tools that all companies have to be careful about. A good marketing strategy is established in a long term vision by preventing changes or at least adapting their  strategy as soon as possible by finding the needs of the customers. * Conclusion: Exporting a new product to another country is something difficult for many reasons. The very first one is because of the cultural differences between the countries. But the cultural differences are not the only issues; there is also the way that the Peugeot want to enter the American market. But I think that the company should do it, because as we have seen through this final, USA is a good country for innovative product but also because it is a huge country with a lot of potential consumers. Being present on the American market could also be a good start for the company to be durably present on such powerful market where a lot of innovations came to. But if they are aware of that, it means that other companies from other countries are also aware of it, so if they want to be successful they have to take a quick decision and to take the risk to do it, because as many business men say, the biggest risk is not taking any risks. * Bibliography: * â€Å"Peugeot 5008, le monospace by Peugeot† , Forum-Peugeot.com, 2012, Web, http://www.forum-peugeot.com * â€Å"Policy Priorities for advancing the U.S. electric vehicle market†, Deborah Gordon, Daniel Sperling David Livingston, Carnegie Endowment, September 2012, Web, http://carnegieendowment.org * â€Å"Importing a Motor Vehicle†, CBP- Securing America’s Borers, August 2008, Web, http://www.cbp.gov * â€Å"Importing vehicles and engines into the U.S.†, EPA-United States Environmental Protection Agency, Web, http://www.epa/gov * â€Å"United States vs France† National culture, Geert Hofstede Cultural Dimension,2012, Web, http://geert-hofstede.com * â€Å"Top 10 tips for selling products in the United States†, Bill Decker, Denver Business Journal, June 2011, Web, http://www.bizjournals.com * â€Å"2012 Hybrid Cars†, Hybridcars, March 2012, Web, http://www.hybridcars.com * â€Å"July 2012 Dashboard†, Hybridcars, Augus t 2012, Web, http://www.hybridcars.com * â€Å"Hybrid market Forecasts†, Hybridcars, September 2006, Web, http://www.hybridcars.com * â€Å"Hybrid car tax credits: incentives fade into Memory†, Hybrids, February 2011, Web, http://www.hybridcars.com * â€Å"Hybrid and Plug-in Incentives and rebates – Region by Region† Hybridcars, March 2010, Web, http://www.hybridcars.com * â€Å"Profile of hybrid drivers†, Hybridcars, March 2006, Web, http://www.hybridcars.com * â€Å"Boursorama EUR/USD Spot†, Boursorama, December 2012, Web, http://www.boursorama.com

Chickens Essay examples -- Factory Farming, Arsenic, Pasturing

As a kid you grow up learning new things, you ask questions and you hope that in return you get answers. A question that is often asked is ‘what came first, the chicken or the egg, or how is our food made?’ Many people find answers for things that they don’t know about, but what one doesn’t know might be better for them. What I can tell you is how chickens are raised and the many different ways that they are brought up. What I cant tell you is what came first, the chicken or the egg. I can tell you the difference from a chicken that was brought up in a factory farm from a chicken that was brought up in your back yard. There is a big difference from a factory chicken from a back yard chicken, such as the type of food they are fed, or their living space. Chickens are fed foods that have chemicals in them that can get into the human body. They are also tortured when they are brought up in factories because the chickens are kept in cages where there for four of them will be stuffed into one cage. Chickens are clipped on their feet and beaks so that when they are in a stressful situation they will not peck at the other chickens when they are all in the same cage. Chickens are carried from one factory to another in a truck where over half of the chickens die. The government call these facilities Concentrated Animal Feeding Operations or CAFO’s. The (EPA) otherwise known as the Environmental Protection Agency defines a CAFO as the â€Å"new and existing operations which stable or confine and feed or maintain for a total of 45 days or more in any 12-month period more than the number of animals specified† in categories that they list out. Also there will be no grass or other vegetation in the confined areas. Factory farming mainly began a... ...es and fats. Pasturing is also a cost-effective and healthy way to raise chickens. It is both good for the environment and the chicken itself. Chickens that are brought up on a farm have a better life and their meat is healthier for the consumer. If you go out and buy chicken from a store, you have no idea what kind of process that meat has been through or what has been added to it. You could be eating something that could get you very sick or even kill you. Factories should have law and those laws should state that artificial growth is illegal and not healthy for our food. If every person in the world took a step back and realized how our everyday food effects our lives or the environment around us we might find better ways to make a profit. So the next time you go to ask a question about where something comes from, you might want to think twice about it.

Apple Case Study

Please divide Apple's history into periods and trace the changes in business models that took place over these periods. Apple history is explained in the case history from 1972 – 2006. Apples history is described below, reflecting on the changes In Business Model (how the company generated revenue). The Beginning years, 1976 – 1 985: Apple was founded In 1976 and they built a computer circuit board named the Apple l. Within span of 4 years they went to PIP with the help of Venture capitalist Markup, Jar. Its original business model was based on selling a computer that could e used straight out of the box with a closed platform.In 1981 IBM introduced a Microsoft's DOS operating system and it's an open system and easily cloned, whilst a lack of compatible software on Macintosh (Mac) made net income fall 17%. Steve Jobs was removed from his operational role by the board. Jobs left Apple to find a new company NeXT. The sculls years, 1985-1993: In 1985 John Sculls was appoin ted as CEO. Sculls was an operations and marketing expert from Pepsi. Scull's strategy was focused on taking Apple into the corporate world, which he did successfully, making Apple a well-known brand name.During the Sculls years Apple was able to monopolize on the â€Å"love affair† for Macs by selling at a premium. In 1990 Sculls changed the business model to sell their computers at lower prices to get more market share, while also delivering new ‘hit products' every 6-12 months. Apple embarked on a Joint venture with MOM to create a new operating model, multimedia applications, etc. Sculls also reduced headcount by 10% and moved much of the manufacturing to contractors. Sculls also made himself Technology officer despite having no skills In this area.He was then relinquished of his duties In 1993. The spindled years, 1993 – 1995: Spindled was an engineer and had successfully headed Apple Europe and changed the business model once more to focus on education and publishing. He killed the plan to put the SO on Intel and instead he would license other companies to produce MAC clones. He focused on international growth I. E china. Spindlier business model also focused on the fact that the new operating model would save the company. Like Sculls, Spindled had to slash costs but Apple still had problems.In first quarter of 1996, apple reported $69 million in losses and more layoffs and Spindled was replaced. Amelia years, 1996 – 19971 ND a high pricing / differentiation strategy and slash payroll. Amelia wanted to turn apple back to its premium price differentiation strategy. He cancelled the next generation Mac SO, which had already cost $mom in R&D. Instead apple would acquire Next along with Steve Jobs. Amelia brought NeXT and brought Jobs as an advisor. Apple still suffered financially and Amelia was forced out. Steve Jobs became the temporary CEO. 997- Steve Jobs era: Steve Jobs re-joined the company in 1996 after Apple acquired NeXT. He made several drastic changes; investment into Apple, a commitment to develop core reduces, ended the Mac licensing program while buying the assets of the leading clone maker, consolidated the product ranges, and launched the Apple website to sell products directly. Jobs' business model turned the company around. He agreed that Microsoft would invest in core products for MAC ii office. Also he rationalized product range from 15 to 3, research projects by 70% and reduced staffing and outsourcing.Comment on what you learn about business model and business model change from this case. When evaluating Apple's business model, it's useful to think in terms of the pre-1996 era and the post-1996 era. Apple has always been and continues to be a manufacturer of computers and electronics with a focus on complete hardware and software integration. Prior to 1996, the company focused almost exclusively on personal computers in the Macintosh line, with the occasional foray into innovative produ cts like the Newton.When Steve Jobs re-joined the company in 1996, that mission evolved beyond personal computing into products like the pod, phone, and pad. Apple is positioned well for the future, and it's not a company that's willing to settle for current success. Unafraid of centralization, the company continues to churn out Phones that make the pod look like a hobby, as well as the pad Mini that unashamedly steals market share from its big brother. Notoriously secret, the company reveals little about the product pipeline, but it's believed that Steve Jobs has left a product roadman for more than a decade.How do other theories of strategy such as capability theory fit with this story? Apple was unable to maintain any strategy over this period since every CEO inconsistently changed the business model and strategy of Apple. Apple's most important resources and capabilities are Steve Jobs, and the integrated system of hardware and software hat the firm has developed and successfull y marketed to derive value. Steve brought Apple back to tremendous success following a decline in relevance and heads the continued creation of billions of dollars of value.While Apple's designers, programmers, and engineers each represent key resources, the ability of the firm to exploit their abilities to create their entire software/hardware ecosystem is the firm's Apple Stores – Retail Locations The introduction of Apple stores has provided the company with an important physical presence to act as both a sales location and an advertisement. Apple tops any retailers in in-store sales, generating $4,032 per retail square foot per year, beating other retailers like Tiffany & Co. At $2,666 and Best Buy at only $930.Relationship with Moms Apple has outsourced all of its manufacturing processes to MEMO partners in China, like Foxing and Hon.. Ha Precision Industry while focusing on design internally. The relationships between Apple and their MEMO partners are very close to prov ide Apple with excellent service and high quality products. Industrial Design Capability Apple's incredible industrial design capability is a function of their innovative design names, led by Jonathan Eve, senior vice president of industrial design, and the firm's parameterization of design and outsourced production.Talented Software Development Teams Apple's software developers are carefully selected and talented programmers. They've produced industry award winning software and the highly regarded iterations of Macintosh SOX operating system. Tailored Hardware/Software Systems One of Apple's most important capabilities is their ability to develop and build highly integrative systems with software designed specifically for the hardware it runs on. Apple Case Study A. The PC industry is much older than the MP3 player industry. As it is an older market, its structure is also more consolidated with only a few builders accounting for the majority of the market. On the other hand, the first MP3 players only surfaced less than ten years ago. While Apple’s Ipod may dominate the market, there are much more MP3 player manufacturers compared to PC manufacturers.Another difference between the two industries is that PCs tend to be commodity products as opposed to MP3 players which are seen as lifestyle or luxury products. This means that PCs for the most part are considered disposable items, especially to bulk buyers like firms or educational institutions. As such, value for money is a premium for PC manufacturers and the trend for the industry is to have better products per new generation at a lower price.Compare this to MP3 players which are for the most part used for personal entertainment. The popularity of the Ipod has cemented the MP3 player as a fashion accessory in addition to a consumer electronics product. Consumers also tend to be more concerned with the form of their MP3 players as opposed to the form of their PCs.Both industries are also experiencing the trend of convergence with PCs having more and more features oriented towards entertainment and MP3 players having more features geared for productivity. Additionally, the cellphone is also encroaching on both products. Smartphones are slowly gaining more PDA and laptop like features. These same devices are also starting to gain more and more entertainment features with newer models coming equipped with the ability to snap pictures and play music.B. Apple products have always been known for its innovation, ease of use and high price. One could say that while PCs in general are a commodity product, Apple computers are marketed like luxury items. Apple computers look better than the competition, are easier to use than the competition, and cost more than the competit ion. As opposed to its PC competitors who used different strategies to be able to offer the lowest prices possible, Apple’s offerings have always been about function and form first, cost second.Apple’s initial foray into the MP3 market touted ease of use as its main strategy. The Ipod featured a thumbwheel that simplified the access of thousands of songs stored in the player. The Ipod’s ease of use was essential to its adoption by newcomers who were unfamiliar to MP3. Secondly, ITunes was very innovative in the way that it simplified the process of legally obtaining music over the internet.Apple made possible a new distribution method for music through ITunes wherein the customer can access exactly the tracks he wants, anywhere in the world and the music is delivered directly to him. Lastly, the success of the Ipod has allowed Apple to leverage its brand strength as a key strategy for the Ipod. Apple successfully marketed the Ipod as a lifestyle accessory and a successful marketing campaign has made an Ipod (not an MP3 player, an Ipod) a must have.C. One key strength for Apple has been its brand. Successful products in the past have infused the Apple Brand with the values of ease of use, innovation and style. This is best seen through the cult of Apple fanaticism with Apple devotees preaching the values of Apple products to their peers. Like whole foods, the Apple brand has formed its own following that serves to promote the values of Apple products.While marketing strength may be a great strength of Apple, their culture of innovation allows them to maintain a lead over their competitors in terms of ease of use and new features. The key to Apple’s innovation is their focus on satisfying the needs and uses of the customer as opposed to simply cramming their products full of gadgetry.This is best seen during the years before Apple switched to Intel processors. While relegated to using the antiquated PowerPC processor from Motorola, Ap ple was able to maintain interest in their computers by innovating on the software side, coming out with the much acclaimed OS X operating system and its succeeding incarnations.Apple PCs have also been known to be better in design related applications. Macintosh computers are seen by many to be better suited for creative applications such as image processing, music creation and video editing. Apple itself has invested heavily in these areas with their free, pre-installed versions of these types of programs being far better than the offerings of their competitors.Lastly, Apple’s policy of being tight with its technology has allowed it to keep a high level of control over products associated with Apple products. Unlike other PC manufacturers whose technology is available to all OEMs, Apple technology is shut out to third party manufacturers. For the most part, Apple controls who makes Apple peripherals.While this limits the expansion of Apple and keeps the cost of its peripher als high, it has allowed Apple to maintain a high level of quality for its peripherals and its own products as their computers are less likely to crash due to shoddy third party products.

Building the Emotional Intelligence of Groups

80 HARVARD BUSINESS REVIEW By now, most executives have accepted that emotional intelligence is as critical as IQ to an individual's effectiveness. But much of the important work in organizations is done in teams. New research uncovers what emotional intelligence at the group level looks like-and how to achieve it Building the Emotioncil Intelligence of Groups W by Vanessa Urch Druskat and Steven B. Wolff HEN MANAGERS EIRST STARTED HEARING ABOUT the concept of emotional intelligence in the 1990s, scales fell from their eyes. The basic message, that effectiveness in organizations is at least as much about EQ as IQ, resonated deeply; it was something that people knew in their guts but that had never before been so well articulated. Most important, the idea held the potential for positive change. Instead of being stuck with the hand they'd been dealt, people could take steps to enhance their emotional intelligence and make themselves more effective in their work and personal lives. Indeed, the concept of emotional intelligence had real impact. The only problem is that so far emotional intelligence has been viewed only as an individual competency, when the reality is that most work in organizations is done by teams. And if managers have one pressing need today, it's to find ways to make teams work better. MARCH 2001 81 Building the Emotional Intelligence of Groups It is with real excitement, therefore, that we share these findingsfromour research: individual emotional intelligence has a group analog, and it is just as critical to groups' effectiveness. Teams can develop greater emotional intelligence and, in so doing, boost their overall performance. Why Should Teams Build Their Emotional Intelligence? No one would dispute the importance of making teams work more effectively. But most research about how to do so has focused on identifying the task processes that distinguish the most successftil teams-that is, specifying the need for cooperation, participation, commitment to goals, and so forth. The assumption seems to be that, once identified, these processes can simply be imitated by other teams, with similar effect. It's not true. By analogy, think of it this way: a piano student can be taught to play Minuet in G, but he won't become a modem-day Bach without knowing music theory and being able to play with heart. Similarly, the real source of a great team's success lies in the fundamental conditions that allow effective task processes to emerge-and that cause members to engage in them wholeheartedly. Our research tells us that three conditions are essential to a group's effectiveness: trust among members, a sense of group identity, and a sense of group efficacy. When these conditions are absent, going through the motions of cooperating and participating is still possible. But the team will not be as effective as it could be, because members will choose to hold back rather than fully engage. To be most effective, the team needs to create emotionally intelligent norms -the attitudes and behaviors that eventually become habits-that support behaviors for building trust, group identity, and group efficacy. The outcome is complete engagement in tasks. {For more on how emotional intelligence infiuences these conditions, see the sidebar â€Å"A Model of Team Effectiveness. ) at more levels. To understand the differences, let's first look at the concept of individual emotional intelligence as defined by Daniel Goleman. In his definitive book Emotional Intelligence, Goleman explains the chief characteristics of someone with high El; he or she is aware of emotions and able to regulate them-and this awareness and regulation are directed both inward, to one's self, and outward, to others. â€Å"Personal competence,† in Goleman's words, comes from being aware of and regulating one's own emotions. Social competence†is awareness and regulation of others' emotions. A group, however, must attend to yet another level of awareness and regulation. It must be mindful of the emotions of its members, its own group emotions or moods, and the emotions of other groups and individuals outside its boundaries. In this article, we'll explore how emotional incompetence at any of these levels can cause dysfunction. We'll also show how establishing specific group norms that create awareness and regulation of emotion at these three levels can lead to better outcomes. First, we'll focus on the individual level-how emotionally intelligent groups work with their individual members' emotions. Next, we'll focus on the group level. Andfinally,we'll look at the cross-boimdary level. Working with Individuals' Emotions /(†¢// Kasper, head ofher company's customer service department, is naturally tapped tojoin a new cross-functional team focused on enhancing the customer experience: she has extensive experience in and a real passion for customer service. But her teammatesfind she brings little more than a bad attitude to the table. At an early brainstorming session, Jill sits silent, arms crossed, rolling her eyes. Whenever the team starts to get energized about an idea, she launches into a detailed account of how a similar idea went nowhere in the past. The group is confused: this is the customer service star they've been hearing about? Little do they realize shefeels insulted by the very formation of the team. To her, it implies she hasn't done her job well enough. Three Levels of Emotional Interaction Make no mistake: a team with emotionally intelligent members does not necessarily make for an emotionally intelligent group. A team, like any social group, takes on its own character. So creating an upward, self-reinforcing spiral of trust, group identity, and group efficacy requires more than a few members who exhibit emotionally intelligent behavior. It requires a team atmosphere in which the norms build emotional capacity (the ability to respond constructively in emotionally uncomfortable situations) and influence emotions in constructive ways. Team emotional intelligence is more complicated than individual emotional intelligence because teams interact 82 When a member is not on the same emotional wavelength as the rest, a team needs to be emotionally intelligent vis-ci-vis that individual. In part, that simply means being aware of the problem. Having a norm that encourages interpersonal understanding might facilitate an awareness that Jill is acting out of defensiveness. And picking up on this defensiveness is necessary if the team Vanessa Urch Druskat is an assistant professor of organizational behavior at the Weatherhead School of Management at Case Western Reserve University in Cleveland. Steven B. Wolff is an assistant professor of management at the School of Management at Marist College in Poughkeepsie, New York. HARVARD BUSINESS REVIEW Building the Emotional Intelligence of Croups A Model of Team Effectiveness better decisions, more creative solutions, higher productivity study after study has shown that teams are more creative and productive when they can achieve high levels of participation, cooperation, and collaboration among members. But interactive behaviors (ike these aren't easy to legislate. Our work shows that tbree basic conditions need to be present before such behaviors can occur: mutual trust among members, a sense of group identity (a feeling among members that they belong to a unique and worthwhile group), and a sense of group efficacy (the beliefthat the team can perform well and that group members are more effective working together than apart). At the heart of these three conditions are emotions. Trust, a sense of identity, and a feeling of efficacy arise in environments where emotion is well handled, so groups stand to benefit by building their emotional intelligence. Group emotional intelligence isn't a question of dealing with a necessary evil-catching emotions as they bubble up and promptly suppressing them. Far from it. It's about bringing emotions deliberately to the surface and understanding how they affect the team's work. It's also about behaving in ways that build relationships both inside and outside the team and that strengthen tbe team's ability to face challenges. Emotional intelligence means exploring, embracing, and ultimately relying on emotion in work that is, at the end ofthe day, deeply human. articipation, cooperation, collaboration trust, identity, efficacy group emotional intelligence wants to make her imderstand its desire to amplify her good work, not negate it. Some teams seem to be able to do this naturally. At Hewlett-Packard, for instance, we learned of a team that was attempting to cross-train its members. The idea was that if each member could pinch-hit on everyone else's job, the team could deploy efforts to whatever task required the most attention. But one member seemed very uncomfortable with learning new skills and tasks; accustomed to being a top producer in his own job, he hated not knowing how to do a job perfectly. Luckily, his teammates recognized his discomfort, and rather than being annoyed, they redoubled their efforts to support him. This team benefited from a group norm it had established over time emphasizing interpersonal understanding. The norm had grown out of the group's realization that working to accurately hear and understand one another's feelings and concerns improved member morale and a willingness to cooperate. Many teams build high emotional intelligence by taking pains to consider matters from an individual member's perspective. Think of a situation where a team of four must reach a decision; three favor one direction and the fourth favors another. In the interest of expedience, many teams in this situation would move directly to a maMARCH 2001 jority vote. But a more emotionally intelligent group would pausefirstto hear out the objection. It would also ask if everyone were completely behind the decision, even if there appeared to be consensus. Such groups would ask, â€Å"Are there any perspectives we haven't heard yet or thought through completely? † Perspective taking is a team behavior that teamwork experts discuss often – but not in terms of its emotional consequence. Many teams are trained to use perspectivetaking techniques to make decisions or solve problems (a common tool is affinity diagramming). But these techniques may or may not improve a group's emotional intelligence. The problem is that many of these techniques consciously attempt to remove emotion from the process by collecting and combining perspectives in a mechanical way. A more effective approach to perspective taking is to ensure that team members see one another making the effort to grapple with perspectives; that way, the team has a better chance of creating the kind of trust that leads to greater participation among members. An executive team at the Hay Group, a consulting firm, engages in the kind of deep perspective taking we're describing. The team has done role-playing exercises in which members adopt others'opinions and styles of interaction. It has also used a â€Å"storyboarding† technique, in 83 Building ttie Emotional Intelligence of Croups which each member creates a small poster representing his or her ideas. As team members will attest, these methods and others have helped the group build trust and increase participation. Regulating Individuals'Emotions Interpersonal understanding and perspective taking are two ways that groups can become more aware of their members' perspectives and feelings. But just as important as awareness is the ability to regulate those emotions-to have a positive impact on how they are expressed and even on how individual team members feel. We're not talking about imposing groupthink or some other form of manipulation here-clearly, the goal must be to balance the team's cohesion with members' individuality. We're simply acknowledging that people take their emotional cues from those around them. Something that seems upsetting initially can seem not so bad – o r ten times worse depending on whether one's colleagues are inclined to smooth feathers or fan flames. The most constructive way of regulating team members'emotions is hy establishing norms in the group for both confrontation and caring. in a meeting where one team member arrived angry because the time and place of the meeting was very inconvenient for him. When another member announced the sacrifice the man had made to be there, and thanked him, the man's attitude turned around 180 degrees. In general, a caring orientation includes displaying positive regard, appreciation, and respect for group members through behaviors such as support, validation, and compassion. Interpersonal understanding, perspective taking, confrontation, caring-these norms build trust and a sense of group identity among members. And all of them can be established in teams where they don't arise naturally. You may ask, But is it really worth all the effort? Does it make sense to spend managerial time fostering new norms to accommodate a few prickly personalities? Of course it does. Teams are at the very foundation of an organization, and they won't work effectively without mutual trust and a common commitment to goals. Working with Group Emotions Chris couldn't believe it, but he was requesting a reassignment The team he was on was doing good work, staying on budget, and hitting all its deadlines – though not always eleIt may seem illogical to suggest that an emotionally gantly. Its leader, Stan Evans, just got a promotion. So why intelligent group must engage in confrontation, but it's was being on the team such a downer? At the last major stanot. Inevitably, a team member will indulge in behavior tus meeting, they should have been serving champagne -so that crosses the line, and the team must feel comfortable much had been achieved. Instead, everyone was thoroughly calling the foul. In one manufacturing team we studied, dispirited over a setback they hadn't foreseen, which turned a member told us about the day she selfishly decided to out later to be no big deal. It seemed no matter what hapextend her break. Before long, one of her teammates pened, the group griped. The team even saw Stan's promostormed into the break room, saying, â€Å"What are you dotion in a negative light: â€Å"Oh, so I guess management wants ing in here? Get back out on the floor-your team needs to keep a closer eye on us† and â€Å"I hear Stan's new boss you! The woman had overstepped tbe bounds, and doesn't back this project. † Chris she got called on it. There were had a friend on another team no hard feelings, because the woman knew the group valued Inevitably, a team member will who was happy to put in a good word for him. The work was inher contributions. indulge in behavior that crosses herently less interesting â₠¬â€œ but hey, Some teams also find that a at least they were having fun. little bumor helps when pointing out errant behavior. Teasing Some teams suffer because someone who is habitually late they aren't aware of emotions comfortable calling the foul. or meetings, for instance, can at the group level. Chris's team, make that person aware of how for instance, isn't aware of all it has achieved, and it doesn't acknowledge that it has fallen important timeliness is to the group. Done right, coninto a malaise. !n our study of effective teams, we've frontation can be seen in a positive light; it's a way for found tbat having norms for group self-awareness-of the group to say, â€Å"We want you in-we need your conemotional states, strengths and weaknesses, modes of intribution. And it's especially important when a team teraction, and task processes-is a critical part of group must work together on a long-term assignment. Without emotional intelligence tbat facilitates group efficacy. con frontation, disruptive behavior can fester and erode Teams gain it both through self-evaluation and by solicita sense of trust in a team. ing feedback from others. Establishing norms that reinforce caring behavior is often not very difficult and usually a matter of concenSelf-evaluation can take tbe form of a formal event trating on little things. When an individual is upset, for or a constant activity. At Sberwin Williams, a group of example, it may make all the difference to have group managers was starting a new initiative that would require members acknowledge that person's feelings. We saw this higher levels of teamwork. Group members hired a con- the line, and the team mustfeel 84 HARVARD BUSINESS REVIEW Building the Emotional Intelligence of Croups sultant, but before the consultant arrived, they met to assess their strengths and weaknesses as a team. They found that merely articulating the issues was an important step toward building their capabilities. A far less formal method of raising group emotional awareness is through the kind of activity we saw at the Veterans Health Administration's Center for Leadership and Development. Managers there have developed a norm in which they are encouraged to speak up when they feel the group is not being productive. For example, if there's a post-lunch lull and people on the team are low on energy, someone might say, â€Å"Don't we look like a bunch of sad sacks? With attention called to it, the group makes an effort to refocus. Emotionally competent teams don't wear blinders; they have the emotional capacity to face potentially difficult information and actively seek opinions on their task processes, progress, and performance from the outside. For some teams, feedback may come directly from customers. Others look to colleagues within the company, to suppliers, or to professional peers. A group of designers we studied routinely posts its work in progress on walls throughout the building, with invitations to comment and critique. Similarly, many advertising agencies see annual industry competitions as a valuable source of feedback on their creative teams' work. Croups are most creative when their members collaborate unreservedly. People stop holding back when there is mutual trust, rooted in emotionally intelligent interactions. Regulating Group Emotions Many teams make conscious efforts to build team spirit. Team-building outings, whether purely social or Outward Bound-style physical challenges, are popular methods for building this sense of collective enthusiasm. What's going on here is that teams and their leaders recognize they can improve a team's overall attitude-that is, they are regulating group-level emotion. And while the focus of a team-building exercise is often not directly related to a group's actual work, the benefits are highly relevant: teams come away with higher emotional capacity and thus a greater ability to respond to emotional challenges. The most effective teams we have studied go far beyond the occasional â€Å"ropes and rocks† off-site. They have established norms that strengthen their ability to respond MARCH 2001 ffectively to the kind of emotional challenges a group confronts on a daily basis. The norms they favor accomplish three main things: they create resources for working with emotions, foster an affirmative environment, and encourage proactive problem solving. Teams need resources that all members can draw on to deal with group emotions. One important resource is a common vocabulary. To use an example, a group member at the Veterans Health Administration picked up on another member's bad mood and told him that he was just â€Å"cranky† today. The â€Å"cranky† term stuck and became the group's gentle way of letting someone know that their negativity was having a bad effect on the group. Other resources may include helpful ways to vent frustrations. One executive team leader we interviewed described his team's practice of making time for a â€Å"wailing wall† – a few minutes of whining and moaning about some setback. Releasing and acknowledging those negative emotions, 85 Building the Emotional Intelligence of Croups the leader says, allows the group to refocus its attention on the parts of the situation it can control and channel its energy in a positive direction. But sometimes, venting takes more than words. We've seen more than one intense workplace outfitted with toys – like soft projectile shooters-that have been used in games of cube warfare. Perhaps the most obvious way to build emotional capacity through regulating team-level emotion is simply to create an affirmative environment. Everyone values a team that, when faced with a challenge, responds with a can-do attitude. Again, it's a question of having the right group norms-in this case, favoring optimism, and positive images and interpretations over negative ones. This doesn't always come naturally to a team, as one executive we interviewed at the Hay Group knows. When external conditions create a cycle of negativity among group members, he takes it upon himself to change the atmosphere of the group. He consciously resists the temptation to join the complaining and blaming and instead tries to reverse the cycle with a positive, constructive note. One of the most powerful norms we have seen for building a group's ability to respond to emotionally challenging situations is an emphasis on proactive problem solving. We saw a lot of this going on in a manufacturing team we observed at AMP Corporation. Much of what this team needed to hit its targets was out of its strict control. But rather than sit back and point fingers, the team worked hard to get what it needed from others, and in some cases, took matters into its own hands. In one instance, an alignment problem in a key machine was creating faulty products. The team studied the problem and approached the engineering group with its own suggested design for a part tbat might correct the problem. The device worked, and the number of defective products decreased significantly. Building Norms for Three Levels of Group Emotional Intelligence Group emotional intelligence is about the small acts that make a big difference. It is not about a team member working all night to meet a deadline; it is about saying thank you for doir)g so. It is not about in-depth discussion of ideas; it is about asking a quiet member for his thoughts. It is not about harmony, lack of tension, and all members liking each other; it is about acknowledging when harmony is false, tension is unexpressed, and treating others witb respect. The following sidebar outlines some of the small things tbat groups can do to establisb tbe norms that build group emotional intelligence. take them down a notch. And what was with that name, anyway? Some kind ofinsidejoke, Jim guessed. Too bad nobody else got it The last kind of emotional intelligence any high-performing team should have relates to cross-boundary relationships, just as individuals should be mindful of their own emotions and others', groups should look both inward and outward emotionally. In the case of the Bugs, This kind of problem solving is valuable for many reathe team is acting like a clique – creating close emotional sons. It obviously serves the company by removing one ties within but ignoring the feelings, needs, and conmore obstacle to profitability. But, to the point of our cerns of important individuals and teams in the broader work, it also shows a team in control of its own emotions. organization. It refused to feel powerless and was eager to take charge. Some teams have developed norms that are particularly helpful in making them aware of the broader organizational context. One practice is to have various team members act as liaisons to important constituencies. Many Jim sighed. The â€Å"Bugs† team was at it agair. Didn't they see teams are already made up of members drawn from different parts of an organization, so a cross-boundary perthat while they were high-fiving one another over their impressive productivity, the rest of the organization was paying spective comes naturally. Others need to work a little harder. One team we studied reahzed it would be imfor it? This time, in their self-managed wisdom, they'd deportant to understand the perspective of its labor union. ided to make a three months'supply of one component. No Consequently, a team member from HR went to some changeover meant no machine downtime and a record low lengths to discover the right channels for having a union cost per unit But now the group downstream was swamped with inventory it didn't need and worried about shortages of member appointed to the group. A cross-boundary perspective is especially important in situations where a something else. Jim braced himself for his visit to the floor. eam's work will have significant impact on others in The Bugs didn't take criticism well; they seemed to think they were flawless and that everyone else was just trying to the organization – for example, where a team is asked to Working with Emotions Outside the Group 86 HARVARD BUSINESS REVIEW Building the Emotional Intelligence of Groups Individual Interpersonal Understanding 1. Take time away from group tasks to get to know one another. 2. Have a â€Å"check in† at the beginning of the meeting – that is, ask how everyone is doing. 3. Assume that undesirable behavior takes place for a reason. Find out what that reason is. Ask questions and listen. Avoid negative attributions. 4. Tell your teammates what you're thinking and how you're feeling. Perspective Taking 1. Ask whether everyone agrees with a decision. 2. Ask quiet members what they think. 3. Question decisions that come too quickly. 4. Appoint a devil's advocate. Group Team Self-Evaluation 1. Schedule time to examine team effectiveness. 2. Create measurable task and process objectives and then measure them. 3. Acknowledge and discuss group moods. 4. Communicateyour sense of what is transpiring in the team. 5. Allow members to call a â€Å"process check. (For instance, a team member might say, â€Å"Process check: is this the most effective use of our time right now? â€Å") Seeking Feedback 1. Askyour†customers†howyou are doing. 2. Post your work and invite comments. 3. Benchmark your processes. Cross-Boundary Organizational Understanding 1. Find out the concerns and needs of others in the organizati on. 2. Consider who can influence the team's ability to accomplish its goals. 3. Discuss the culture and politics inthe organization. 4. Ask whether proposed team actions are congruent with the organization's culture and politics. Norms That Create Awareness of Emotions Norms That Help Regulate Emotions† Confrortting 1. Set ground rules and use them to point out errant behavior. 2. Call members on errant behavior. 3. Create playful devices for pointing out such behavior. These often emerge from the group spontaneously. Reinforce them. Caring 1. Support members: volunteer to help them if they need it, be flexible, and provide emotional support. 2. Validate members' contributions. Let members know they are valued. 3. Protect members from attack. 4. Respect individuality and differences in perspectives. Listen. 3. Never be derogatory or demeaning. Creating Resources for Working with Emotion 1. Make time to discuss difficult issues, and address the emotions that surround them. 2. Find creative, shorthand ways to acknowledge and express the emotion in the group. 3. Create fun ways to acknowledge and relieve stress and tension. 4. Express acceptance of members' emotions. Creating an Affirmative Environment 1. Reinforce that the team can meet a challenge. Be optimistic. For example, say things like, â€Å"We can get through this† or†Nothing will stop us† 2. Focus on what you can control. 3. Remind members of the group's important and positive mission. 4. Remind the group how it solved a similar problem before. 5. Focus on problem solving, not blaming. Solving Problems Proactively 1. Anticipate problems and address them before they happen. 2. Take the initiative to understand and get what you need to be effective. 3. Do ityourself if others aren't responding. Rely on yourself, not others. Building External Relationships 1. Create opportunities for networking and interaction. 2. Ask about the needs of other teams. 3. Provide support for other teams. 4. Invite others to team meetings if they might have a stake in what you are doing. MARCH 2001 87 Building the Emotional Intelligence of Groups design an intranet to serve everyone's needs. We've seen gaining the confidence of outsiders, adopting an ambasmany situations in which a team is so enamored of its so- sadorial role instead of an isolationist one. lution that it is caught completely by surprise when othA manufacturing team we saw at KoSa displayed very ers in the company don't share its enthusiasm. high social skills in working with its maintenance team. It recognized that, when problems occurred in the plant, Some of the most emotionally intelligent teams we the maintenance team often had many activities on its have seen are so attuned to their broader organizational plate. All things being equal, what would make the maincontext that it affects how they frame and communicate tenance team consider this particular manufacturing their own needs and accomplishments. A team at the group a high priority? Knowing a good relationship chemical-processing company KoSa, for example, felt it would be a factor, the manufacturing team worked hard needed a new piece of manufacturing equipment, but seto build good ties with the maintenance people. At one nior management wasn't so sure the purchase was a pripoint, for instance, the manufacturing team showed its ority. Aware that the decision makers were still on the appreciation by nominating the maintenance team for fence, the team decided to emphasize the employee safety â€Å"Team of the Quarter† recognition-and then doing all benefits of the new machine-just one aspect of its desirthe letter writing and behind-the-scenes praising that ability to them, but an issue of paramount importance to management. At a plant safety meeting attended by high- would ultimately help the maintenance team win. In turn, the manufacturing team's good relationship with level managers, they made the case that the equipment maintenance helped it become one of the highest prothey were seeking would greatly reduce the risk of injury ducers in the plant. to workers. A few weeks later they got it. Sometimes, a team must be particularly aware of the needs and feelings of another group witbiin the organizaA Model for Group Emotional tion. We worked with an information technology comIntelligence pany where the hardware engineers worked separately from the software engineers to achieve the same goalWe've been discussing the need for teams to learn to faster processing and fewer crashes. Each could achieve channel emotion effectively at the three levels of human only so much independently. When finally a hardware interaction important to them: team to individual memteam leader went out of bis way to build relationships ber, team to itself, and team to outside entities. Together, with the software people, the two teams began to coopthe norms we've been exploring help groups work with erate – and together, they achieved 20% to 40% higher per- emotions productively and intelligently. Often, groups formance than had been targeted. with emotionally intelligent members have norms like these in place, but it's unlikely any group would unconThis kind of positive outcome can be facilitated by sciously come up with all the norms we have outhned. norms that encourage a group to recognize the feelIn other words, this is a model for group emotional intelings and needs of other groups. We saw effective norms ligence that any work team for interteam awareness at a could benefit from by applying division of AMP, where each it deliberately. Nee seen many situations manufacturing team is responsible for a step in the manufacWhat would the ultimate in which a team is so enamored emotionally intelligent team turing process and they need one another to complete the look like? Closest to the ideal of its solution that it is caught product on time. Team leaders are some of the teams we've there meet in the morning to completely by surprise when seen at IDEO, the celebrated understand the needs, resources, industrial design firm. IDEO's and schedules of each team. If others in the company don't creative teams are responsible one team is ahead and another for the look and feel of products share its enthusiasm. is behind, they reallocate relike Apple's first mouse, the sources. Members of the faster Crest toothpaste tube, and the team help the team that's behind and do so in a friendly Palm V personal digital assistant. Thefirmroutinely wins way that empathizes with their situation and builds the competitions for the form and function of its designs and relationship. even has a business that teaches creative problem-solving techniques to other companies. Most of the examples we've been citing show teams that are not only aware of but also able to influence outThe nature of IDEO's work calls for high group emosiders' needs and perspectives. This ability to regulate tional intelligence. Under pressure of client deadlines and emotion at the cross-boundary level is a group's version of budget estimates, the company must deliver innovative, the â€Å"social skills† so critical to individual emotional intel- aesthetic solutions that balance human needs with engiligence. It involves developing external relationships and neering realities. It's a deep philosophical belief at IDEO 88 HARVARD BUSINESS REVIEW Building ttie Emotional Intelligence of Croups that great design is best accomplished through the crerelationships with those individuals and groups. On disative friction of diverse teams and not the solitary pursuit play at IDEO is a curious model: a toy truck with plastic of brilliant individuals, so it's imperative that the teams at pieces on springs that pop out of the bed of the truck IDEO click. In our study of those teams, we found group when a button is pressed. It turns out the model comnorms supporting emotional intelligence at all three levmemorates an incident that taught a variety of lessons. ls ofour model. The story centers on a design team that had been working for three weeks on a very complex plastic enclosure First, the teams at IDEO are very aware of individual for a product. Unfortunately, on team members' emotions, and the Thursday before a Monday they are adept at regulating A team can have everything client deadline, when an engithem. F or example, an IDEO deneer was taking it to be painted, signer became very frustrated going for it-the brightest and it slipped from his pickup bed because someone from marketand exploded on ing was insisting a logo be apmost qualified people, access to 70 mph. The team the road at was willing plied to the designer's product, to work through the weekend to which he felt would ruin it visuresources, a clear mission – but rebuild the part but couldn't finally. At a meeting about the prodish it without the help of the still fail because it lacks group uct, the team's project leader outside fabricator it had used picked up on the fact that someemotional intelligence. on the original. Because they thing was wrong. The designer had taken the time to build a was sitting off by himself, and things â€Å"didn't look right. The project leader looked into the situation and then initiated a negotiation that led to a mutual solution. IDEO team members also confront one another when they break norms. This is common during brainstorming sessions, where the rule is that people must defer judgment and avoid shooting down ideas. If someone breaks that norm, the team comes down on him in a playful yet forceful way {imagine being pelted by foam toys). Or if someone is out of line, the norm is to stand up and call her on it immediately. If a client is in the room, the confrontation is subtler- perhaps a kick under the chair. Teams at IDEO also demonstrate strengths in groupfocused emotional intelligence. To ensure they have a high level of self-awareness, teams constantly seek feedback from both inside and outside the organization. Most important, they work very closely with customers. If a design is not meeting customer expectations, the team finds out quickly and takes steps to modify it. Regulating group emotion at IDEO often means providing outlets for stress. This is a company that believes in playing and having fun. Several hundred finger blasters (a toy that shoots soft projectiles) have been placed around the building for employees to pick up and start shooting when they're frustrated. Indeed, the design firm's culture welcomes the expression of emotions, so it's not uncommon for someone – whether happy or angryto stand up and yell. IDEO has even created fun office projects that people can work on ifthey need a break. For example, they might have a project to design the company holiday card or to design the â€Å"tourist stop† displays seen by visitors. Finally, IDEO teams also have norms to ensure they are aware of the needs and concerns of people outside their boundaries and that they use that awareness to develop tWARCH 2 0 0 1 good relationship with the fabricator, its people were willing to go above and beyond the call of duty. The lighthearted display was a way for teammates to show the engineer that all was forgiven-and a reminder to the rest of the organization of how a team in crisis can get by with a little help from its friends. Where Do Norms Come From? Not every company is as dependent on teams and their emotional intelligence as IDEO. But now more than ever, we see companies depending on teams for decisions and tasks that, in another time, would have been the work of individuals. And unfortunately, we also see them discovering that a team can have everything going for it-the brightest and most qualified people, access to resources, a clear mission-but still fail because it lacks group emotional intelligence. Norms that build trust, group identity, and group efficacy are the key to making teams click. They allow an otherwise highly skilled and resourced team to fulfill its potential, and they can help a team faced with substantial challenges achieve surprising victories. So how do norms as powerful as the ones we've described in this article come about? In our research, we saw them being introduced from any of five basic directions: by formal team leaders, by informal team leaders, by courageous followers, through training, or ft-om the larger organizational culture. (For more on how to establish the norms described in this article, see the sidebar†Building Norms for Three Levels of Group Emotional Intelligence. â€Å") At the Hay Group, for example, it was the deliberate action of a team leader that helped one group see the importance of emotions to the group's overall effectiveness. Because this particular group was composed of managers 89 Building ttie Emotional Intelligence of Groups from many different cultures, its leader knew he couldn't assume all the members possessed a high level of interpersonal understanding. To establish that norm, he introduced novelties like having a meeting without a tahle, using smaller groups, and conducting an inventory of team members'various learning styles. Interventions like these can probably be done only by a formal team leader. The ways informal leaders or other team members enhance emotional intelligence are typically more subtle, though often just as powerful. Anyone might advance the cause, for example, by speaking up if the group appears to be ignoring an important perspective or feeling-or simply by doing his or her part to create an affirmative environment. Training courses can also go a long way toward increasing emotional awareness and showing people how to regulate emotions. We know of many companies that now focus on emotional issues in leadership development courses, negotiation and communication workshops, and employee-assistance programs like those for stress management. These training programs can sensitize team members to the importance of establishing emotionally intelligent norms. Finally, perhaps more than anything, a team can be influenced by a broader organizational culture that recognizes and celebrates employee emotion. This is clearly the case at IDEO and, we believe, at many of the companies creating the greatest value in the new economy. Unfortu- nately, it's the most difficult piece ofthe puzzle to put in place at companies that don't already have it. For organizations with long histories of employees checking their emotions at the door, change will occur, if at all, one team at a time. Becoming Intelligent About Emotion The research presented in this article arosefromone simple imperative: in an era of teamwork, it's essential to figure out what makes teams work. Our research shows that, just like individuals, the most effective teams are emotionally intelligent ones-and that any team can attain emotional intelligence. In this article, we've attempted to lay out a model for positive change, containing the most important t3'pes of norms a group can create to enhance its emotional intelligence. Teams, like all groups, operate according to such norms. By working to establish norms for emotional awareness and regulation at all levels of interaction, teams can build the solid foundation of trust, group identity, and group efficacy they need for true cooperation and collaboration-and high performance overall. 9 Reprint R0103E To order reprints, see the last page of Executive Summaries. To further explore the topic of this article, go to www. hbr. org/explore. (A^^l^ j-iywi 1 â€Å"I'm in a rut They throw the ball, I bring it back. They throw it again, I bring it back again. What's the point of it ail? † 90 HARVARD BUSINESS REVIEW

Competitive Advantage and Globalization

Competitive Advantage and Globalization When a company is oriented to globalization strategies, it focuses on overcoming the national barriers in market and industry with references to coping with financial and cultural issues. Today, it is possible to speak about the company’s competitive advantage when the company can operate successfully globally and according to the trends associated with the globalization processes.Advertising We will write a custom report sample on Competitive Advantage and Globalization specifically for you for only $16.05 $11/page Learn More Fortune 500 firms develop their globalization strategies basing on the local success which once was achieved with the help of the effective use of the firm’s resources. That is why, it is possible to state that the resource-based competitive advantage is the necessary factor for promoting the Fortune 500 firms’ globalization strategies. Competitive advantage is the ability of the company to implement unique and eff ective strategies which provide the significant advantage over competitors within the industry (Barney, 1991; Barney, 2001). Basing on the modern globalization trends, it is necessary to note that competitive advantage should be supported with references to following the principles of sustainability. Moreover, the company’s capacities are assessed referring to the customers’ interests in the brand. As a result, the Fortune 500 firms create their competitive advantage with the help of the internal resources used. Barney distinguishes between the physical capital resources, human capital resources, and organizational capital resources (Barney, 1991). To succeed within the market, such companies as Google, Toyota Motor, Microsoft, and Wal-Mart focus on using the valuable and rare human capital and organizational capital resources as the main forces. Less attention is paid to physical capital resources because they are more imitable. The success of the company is in develo ping the unique strategy or approach in order to win the advantage (Barney, 1991). That is why, the Fortune 500 firms work out globalization strategies basing on the resources which are difficult to imitate or substitute. The strong and effective organizations as well as quality employees are perceived as the internal strengths of the Fortune 500 firms. Operational Barriers to Success To operate successfully within the highly competitive environment, companies should concentrate on improving their strategies in order to propose new opportunities, services, and products for their customers. As a result, successful companies should orient to the further movement and be progressive in comparison with their competitors (Gopalakrishnan, Kessler, Scillitoe, 2010).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Being at the path to their success, the company can become challenged by a lot of difficulties or barriers associated with the problems in the company’s advertising, production, communication with customers, organization, or culture. Moreover, the progress of the company is often based on using innovation in technologies and organization. Focusing on the barriers to adopt innovative practices and processes, it is possible to determine three preventive factors. Barriers to innovation can be discussed as factors which prevent the company to adopt and implement innovative practices which can significantly improve the production process or organization’s structure and strategies. From this perspective, the discussed barriers prevent the company from the further progress within the market where competitors can use innovation actively. Nevertheless, it is possible to examine barriers from the positive point because the implementation of innovation is often associated with significant risks, and the focus on barriers help the company develop the mo st adequate and appropriate variant of implementing the definite innovation in the process. Three barriers are the lack of budget, the improper planning and forecasting, and the individual factor. Thus, in spite of the fact that the company is oriented toward developing and creating the advantageous value, the implementation of innovation cannot be realized because of the lack of the necessary budget. The problem can depend on the inability of the senior management to distribute the financial resources appropriately in order to focus on the long-term goals and gaining more profits because of implementing innovation successfully (Russell Taylor, 2010). The change of priorities in distribution of the resources can contribute to overcoming the discussed barrier. The next barrier is the improper planning of the innovation implementation into the company’s processes. To guarantee the effective implementation of innovation, it is necessary to develop the detailed plan. Strategic m anagers can fail while developing the appropriate plan because they focus on the immediate positive results and benefits (Russell Taylor, 2010).Advertising We will write a custom report sample on Competitive Advantage and Globalization specifically for you for only $16.05 $11/page Learn More Furthermore, the implementation of innovation is associated with significant shifts and changes within the company. The fear of changes and impossibility to forecast the outcomes prevent companies from implementing innovations successfully. That is why, managers can overcome the barrier focusing on planning as the extremely significant stage in the implementation process. Furthermore, it is important to pay attention to the individual factor as the significant barrier to adopt the innovative practices. Employees as well as managers can reject changes without references to their necessity and advantages because of needs to change approaches, to train to use new technolo gies or schemes of work, or to work following new requirements and standards (Gopalakrishnan, Kessler, Scillitoe, 2010). To overcome the barrier, it is necessary to concentrate on the additional training for employees and on providing the information about clear benefits of implementing innovations which can change the traditional working processes. References Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650. Gopalakrishnan, S., Kessler, E. H., Scillitoe, J. L. (2010). Navigating the innovation landscape: Past research, present practice, and future trends. Organization Management Journal, 7(4), 262–277. Russell, R., Taylor, B. (2010). Operations management: Creating value along the supply chain. USA: Wiley.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More

Leadership and Management in Further Education The WritePass Journal

Leadership and Management in Further Education Abstract Leadership and Management in Further Education Abstract1. Introduction1.1   Rationale1.2   Research Aims1.3   Research questions1.4 Research Objectives1.5  Delimitations1.6  Ethical Issues/Permission 2.  Literature ReviewSummary3. Research Methodology3.1 Research designFocus GroupSemi–structured interviewsElectronic questionnaire4.   FindingsFormal Support  College PoliciesInduction and Probation Performance Management Reviews and AppraisalStaff Development and Training (SDT)Informal SupportConclusion4. RecommendationsReferencesRelated Abstract The aim of this assignment is to carry out a study into the support that managers at College X receive to enable them to feel a sense of satisfaction and value in their contribution to the college and its performance. The assignment reviews academic literature, on formal and informal mechanisms of support including induction, probation, performance management reviews, appraisal, and staff development together with informal methods such as peer support. The reviews, together with the use of primary research, seek to identify if the support offered to staff in college X enables them to feel as valued as the students, the education and training of whom is the core business of the institution. Analysis of the primary research has revealed that the College Executive together with the Governing Body is committed to ensuring effective support is available to managers in an integrated and meaningful way. In so doing ensuring that the performance of the individual and the college continually develop and improve. The main recommendations are that the performance management reviews and staff development support are firmly embedded into the college culture. This will ensure that strategic and operational level managers possess the skills required to effectively respond to the internal and, more importantly, external changes demanded of them whilst enabling them to develop a sense of achievement and job satisfaction. 1. Introduction 1.1   Rationale Further Education Institutions (FEI) have been charged by Welsh Assembly Government (WAG) through DCELLS and Estyn to ensure and make as their main priority that effective learner support mechanisms are in place to enable the learner to learn and succeed in a nurturing, safe and supportive environment. The research for this module will focus on the parity College X bestows on its managers, in respect of its responsibility to nurture and support them to achieve satisfaction in a similar way to its learners. In particular the use of formal and informal support mechanisms: their availability, deployment and level of effectiveness. The term ‘mechanisms’ is used to encompass the College policies and procedures that guide the manager and their teams to work effectively, the processes such as feedback on the performance of managers and the development and recognition required to create a sense of a job well done. According to Locke and Lathen (1976 cited in Tella, Ayeni Popoola) ‘job satisfaction is a pleasurable or positive emotional state resulting from appraisal of one’s job or job experience’. Estyn suggest that ‘Effective college leadership also requires that staff at all levels with leadership and management roles make an important contribution and understand, and are committed to their job roles’ ( Estyn 2010 p 33) in order for this to happen the use of support, training and feedback are required.   Support and feedback are ‘essential to the working and survival of all regulatory mechanisms found throughout living and non-living nature, and in man-made systems such as education system and economy’ (Business Dictionary seen 23.3.2011) so should be key to the continual improvement in the institution. 1.2   Research Aims To identify the effectiveness of the support mechanisms available in College X and how these impact on the performance of both strategic and operational level managers to positively increase their work effectiveness and sense of job satisfaction. To analyse the informal and formal methods of feedback, recognition and reward available to all managers to meet the needs of the institution, their personal needs and that ‘support and challenge them to do their best’ (ESTYN 2010 p 35). To examine the use of staff development as a tool for supporting continual improvements in the performance of strategic and operational managers and ultimately the performance of College X.  Ã‚   1.3   Research questions   What types of mechanisms are available in the college and to what extent managers are aware of and use these to give and receive support? To what extent does the senior management team create and maintain an environment that encourages individuals to feel valued by the institution? How does the use of feedback and recognition impact on the improvement of personal performance and accomplishment? How effective are staff development opportunities to support the strategic, operational and personal effectiveness of managers? 1.4 Research Objectives To identify the types of support available to all strategic and operational managers and their effectiveness in creating job satisfaction. To analyse the effectiveness of the performance feedback managers receive from their superiors. To assess the level of understanding managers have about their individual performance and its contribution to the college performance.   To evaluate the effectiveness in the provision of support offered through the use of learning and development opportunities.   To identify the processes by which outstanding performance is recognised. 1.5  Delimitations This research is practice based and has used College X as the only institutional focus. Should other researchers wish to use the information or primary evidence questions, anonymity and confidentiality must be assured. 1.6  Ethical Issues/Permission Permission was sought and granted by the Deputy Principal who has overall strategic responsibility for all staff development, performance management and quality. Full consent was given by participants in respect of collecting evidence through primary sources. Anonymity and confidentiality was assured by the author and the use of an electronic survey ensured only information on the responses was collected and not that of the respondent. No ethical policies or institutional regulations have been breached during the research of this assignment. 2.  Literature Review Whilst there are many management and psychological theories relating to job satisfaction and the concept of the positive effect of supportive relationships, the size of the body of literature available limits the author to use only some of the major theories as a starting point. The identification of what support is and how it effects job satisfaction is key to the content of this investigation, Soonhee suggests ‘that participative management that incorporates effective supervisory communications can enhance employees job satisfaction’ (Soonhee p1 seen 24.3.2011). The use of management texts, theories, reports and web based materials together with College X’s policies has resulted in a greater understanding in the assumption that ‘management support is seen as a key variable in the psychological well-being of employees.’ (Weinberg Cooper 2007 p160) and therefore need effective mechanisms by which they can support and be supported. Support can be given formally through policies and, as suggested by Everard and Wilson, ‘Recruitment, appraisal and training are three activities which should not be seen in isolation from each other but as part of a comprehensive approach to developing a proficient, well motivated and effective staff’ (Everard Wilson 2004 p 93). Informal and emotional support and feedback ‘may increase individuals confidence in their ability to deal with the challenges that confront them’ (Wainwright Calnan 2002 p 64) and ‘a well done or an objective signed off as completed can enhance the motivation to perform well in the future’ (Torrington Hall 1995 p318). ‘More and more companies are realising that while they cannot offer a cradle to grave security blanket, they have a responsibility to create an environment that nurtures the individual’s ability to grow and thrive’ (Couillart Kelly 1995 p 255). Maslow’s ‘hierarchy of needs’ addresses an individual’s base needs such as safety and security. In a work environment these can be clean work areas, positive personal relationships and sufficient work time.   The use of effective supervisory support can increase ‘self esteem’ needs through recognition, attention and confidence building. And the creation of ‘self actualisation’ can to some extent be achieved through the encouragement of individuals to be creative, demonstrate and utilise their innovativeness. Oldham and Cummings in 1996 (cited in Soonhee p 1 seen 24.3.2011) ‘found that employees produce the most creative outcomes when they work on complex, challenging jobs and are supervised in a supportive, non-controlling way’. To some extent Maslow’s classifications are similar, to the hygiene and motivation factors of Fredrick Herzberg’s two factor theory. As with Maslow, certain basic needs or Hygiene factors such as salary, status, working conditions, policies and psychological support have a direct effect on how a person functions within an institution. Herzberg’s motivational factors are therefore ‘ those aspects of the job that make people want to perform and provide people with satisfaction e.g. achievement at work, recognition and promotion opportunities’ (Kaur Kainth p 7 seen 25.3.2011). Recognition and reward should also be stimuli of job satisfaction, Steers and Porter in 1991 ‘identified the distinction between Intrinsic and Extrinsic rewards – extrinsic arising from an individual’s own sense of satisfaction and from financial benefits (pay, health support) and intrinsic – between the individual and system wide rewards such as pride in the organisation’ (Steers and Porter cited in Gess 1994 p 87). However within the current financial Further Education (FE) environment, extrinsic factors may be limited by college accountability for the use of publicly funded finances. Couillart and Kelly state that ‘whether held implicitly or explicitly, consciously or subconsciously each person has adopted a unique mental system of rewards. And whether informally consistent or not, that reward system is what motivates one on a day to day basis’ (Couillart and Kelly 1995 p 241). This suggests that employees can develop extrinsic and in trinsic rewards though their own and their institutions Mission, Values and Vision. Torrington and Hall suggest that ‘planning the training, development and resources necessary for employees to achieve their objectives is imperative. Without this support it is unlikely that even the most determined employee will achieve the performance required’ (Torrington Hall 1995 p 317). Managers, like students need the opportunity to learn and become proficient in the acquisition of new skills. Therefore, a key function of management is to ‘ develop an ability to help individuals recognise their needs for development and facilitate the professional and personal development needed’ (Murgatroyd Morgan 1992 p 146). The use of formal support mechanisms such as Performance Management Reviews (PMR) enable line managers to guide their subordinates to undertake development however ‘ a systematic and structured approach to identifying individual needs implies that there should be an equally structured approach to responding to those needs’ (Oâ₠¬â„¢Connell 2005 p 175). Policies are another form of support available to the manager. Mullins suggests that they ‘clarify the roles and responsibilities of managers and other members of staff and provide guidelines for managerial behaviour’ (Mullins 1985 p 301). Thus they enable a manager to be supported by institutional procedures and respond quickly without having to consult superiors as to the actions they take. This is a form of empowerment and implies a level of trust which has ‘been identified as one of the keys to successful management and indeed positive relationships at work’ (Weinberg Cooper 2007 p 162). The use of informal methods of support can be equally successful in developing job satisfaction, ‘supportive peer relationships at work are potentially more available to the individual and offer a number of benefits’ (Torrington Hall 1995 p 429) including ‘ accessibility, empathy, organisational experience and proven task skills’ (Cromer 1989 cited in Torrington and Hall 1995 p 429). Peer and team meetings also allow managers ‘ to have their say in an impartially led session, thus permitting emotion to be expressed’ (Weinberg Cooper 2007 p 170) Summary The use of formal and informal support enables the manager to work effectively as an individual, as part of a team and organisation. The need for College X to continue to develop responsive support mechanisms that parallel those given to learners is imperative. Senior managements need to ensure that whist the support mechanisms such as appraisal and staff development are in place, the basic physical and psychological needs of security, safety and satisfaction are addressed. 3. Research Methodology 3.1 Research design The use of a case study based on the real working application in College X is the most effective method of undertaking this small scale research. It presents an opportunity to focus on relevant aspects of the formal and informal mechanisms used to support managers at both strategic and operational levels ‘†¦ with a view to providing an in-depth account of events, relationships, experiences or processes’ (Denscombe 1998 p 32).   The research methodology centres on the involvement of managers and the mechanisms by which they are supported and how these affect levels of effective performance and job satisfaction. The primary sources of evidence come from a focus group, semi-structured interviews and the use of an electronic survey. The use of the qualitative responses from the focus group and semi-structured interviews contribute to the main bulk of the findings. Each group or individual was interviewed in privacy without the line-manager present to allow for a free and frank discussion, was shown a diagram illustrating the interaction of support systems (Appendix 1). All responses are anonymous and no information from the research sources was distributed or discussed with other participants. Focus Group The use of a focus group with six middle/operational level managers enabled the views of both academic and functional areas across the college to be identified. The managers were specifically selected, as they all have very different job roles and specifications within the college, and were therefore able to reflect on the different types of support they needed and received in respect of ‘clarity of performance goals and standards, appropriate resources, guidance and support from the individual’s manager’(Torrington Hall 1995 p 316). Each manager selected contributes to different facets of the strategic plan and where possible each has a different line manager so a possible correlation could be identified in respect of how management techniques and personality affect the support given – no formal measurement tools were used to identify this quantifiably. The participant’s views were given freely and no prompts were given by the interviewer, this all owed for a free discussion to take place. The results of the discussion are noted in bullet point form in the appendices. Semi–structured interviews Semi-structured interviews were held with the Human Resources (HR) officer; one of the two Vice Principals (VP); two of the four Faculty Directors (FD) and Clerk to the Corporation (CC) (Appendix 3). The findings from the interviews give an insight to the way support and job satisfaction is seen from the perspective of the Governing Body (GB) and how this is cascaded through the College Executive (CE) to the strategic and operational management levels. The questions used for the VP and FD were the same as those used in the focus group (Appendix 3), primarily to identify if there were any differences in the perception of support and job satisfaction across managerial levels. The HR officer (HRO) interview (appendix 4) identified formal college policies and processes in respect of support and job satisfaction. The HRO is currently tasked with reviewing the PMR and is therefore aware of some of the issues being researched. Electronic questionnaire The electronic survey (Appendix 5) was sent to twenty four cross college managers at operational and strategic levels after interviews to prevent prompting. Twenty responses (83%) were returned. As the group of respondents is small, actual numbers not percentages are used. The questions have been formulated as statements to identify the level of understanding felt by the participants, in relation to whether they agreed or disagreed; there is no neutral response as all participants have involvement with the college support mechanisms. The questions used were arranged in sequence from induction through to job satisfaction because ‘ order inconsistencies can confuse respondents and bias the results’ (Mora 2010 p1). Summary The use and responses from the primary research methods enable the author to identify some of the positive aspects and potential issues of management support within College X and to what extent they have in providing a level of job satisfaction to its managers. This together with the literature review will enable a greater understanding of the mechanisms used to ‘respond to the new needs of employees and the environmental changes of the organisationand that which executive leaders and managers should confront to facilitate participative management’ (Soonhee seen 24.3.2011). 4.   Findings ‘When a Master governs, the people are hardly aware that he exists. Next, best is the leader who is loved. Next, one who is feared. The worst is one who is despised. If you don’t trust the people, you make them untrustworthy. The Master doesn’t talk, he acts. When his work is done, the people say â€Å"Amazing: we did it, all by ourselves!† (Lao Tzu, translated by Mitchell 1999 p16) The findings of the primary research and literature review seek to identify if the support mechanisms used by the college do in fact enable its managers to gain a feeling of satisfaction or achievement in their job roles without impinging on their sense of autonomy. Formal Support   College Policies College policies available on the intranet should give managers instant support in respect of specific issues and procedures. However, to address them they are not always aware that policies exist or how to use them. When a policy is introduced training should be given which as one interviewee responded is â€Å"meaningful and enables line managers to have a clear understanding of the support offered†, this in turn allows them to take ownership, and, for example, no middle managers interviewed were aware the college had a Stress Management Policy, a vital document which would have been useful as several of them have current issues with â€Å"stressed staff†. Induction and Probation College X provides all managers with a range of policies and processes that should offer effective cycles of support through the ‘ three key aspects of effective performance planning performance; supporting performance and reviewing performance’ (Torrington Hall 1995 p 317). Formal approaches to the giving of support provide a balance that encourages managers to feel confident and trusted to make the right choices within the confines of college procedures and ‘yet underline the feeling that there is not a stigma in asking for help’ (O’Connell 2005 p174).  Ã‚  Ã‚  Ã‚   When participants were asked about the formal processes of induction and probation the responses showed that although the processes were informative and well organised, there were limitations in the effectiveness of ensuring a new post holder felt adequately prepared to undertake their job effectively. These responses may in part be due to the lack of formal standardisation in the way line managers (LM) conduct the induction of new staff. Each adapts the process to suit their sections perceived priorities. Some have very supportive methods e.g. one manager gives new staff a memory stick with guidance to policies and procedures and a list of frequently asked questions. HR arrange a termly focus group to help new appointees, and these according to the HRO could be more timely as they often fail to be of use especially to new managers who have to react to rapid change usually brought about by external demands. The personality of the LM also affects induction and probation, several of the interviewees said their LM had been extremely supportive and that a â€Å"good working relationship had been established†, this was illustrated in the questionnaire responses to question 5.    The use of probation periods should allow an open platform for discussion however managers found difficulty discussing negative aspects partly because of fear of grievances being taken out against them. Where there is a conflict of interest, HR will try to match up managers who have the right approach for that subordinate. Performance Management Reviews and Appraisal PMR and appraisal should be the formal drivers of support in an institution, ‘an effective appraisal should not produce surprise: it should be an honest summative statement ’ (Tranter 2000 p 152) which ‘ offers a number of potential benefits to both the individual and the organisation’ (Mullins 1985 p 639). The PMR used in College X is currently under review as the GB feels there should more analysis of data and dovetailing of appraisal and staff development in the process, a view shared by several interviewees. The CE also recognise that the current provision/policy is not fit for purpose mainly because of the ‘one for all’ documentation which does not reflect the range of activities, duties and responsibilities staff. The questionnaire responses for 6 and 7 identify that PMR is not universally seen as a positive and constructive experience although it gives a positive sense of well being and satisfaction. The current PMR is an annual process; all interviewees felt this was ineffective as it was â€Å"difficult to remember and recognise performance across the year† and the idea of a phased or continual review based on both quantative and qualitative data would be more effective. There were however concerns that constant review could result in the ‘Big Brother’ effect and managers would lose their autonomy. The HRO tasked with reviewing PMR suggested â€Å"there is a need to incorporate appraisal and general performance into the Performance Policy†. As a result of the suspension, managers felt they have had to self evaluate relying on externally set performance indicators; these include Tribal Benchmarking, External Audits, Quality Development Plan (QDP) and the Self Assessment Review (SAR).   Formal feedback is essential, as suggested by Herzberg for increased motivation and ‘ for finding ways of challenging and renewing the work of a team so that it can continuously perform at increasingly high levels and transform its work from being acceptable to outstanding’ (Murgatroyd Morgan 1992 p 151). Therefore to ensure managers are challenged and perform effectively the development of a new policy tool is seen by the GB as key to ensuring adequate support is identified and appropriately given. The responses for question 12 indicate that almost half the respondents do not receive the encouragement and challenge to explore learning and new skills that could positively influence their job satisfaction.    Appraisal is an effective method of communication, especially in relation to strategic objectives and innovation; it can act as a sounding board for managers to propose the changes needed for team and personal performance, Interviewees, especially at senior levels, felt this mechanism was important however the â€Å"lack of opportunities due to workloads could be frustrating because of the limited time to talk – this is not a criticism, just that everyone is busy†. All interviewees felt a sense of loss because of the suspension as they felt it was as important a means of support for their teams as it was for them. PMR enables the work and innovation of managers to be formally recognised, and the CE and GB encourage feedback of good practice to be formulated as resolutions which are rolled out across the college. Middle managers (MM) questioned felt that although work was recognised by their LM but they felt disheartened when it was not always passed on the senior management.   According to HR there should be a formal and consistent vehicle to notify staff of a job well done. The GB do send letters congratulating staff and commendations are minuted. O’Connell suggests ‘we valued the ‘individual’ member of staff and thereby made him or her ‘feel valued’ (O’Connell 2005 p 157). At a recent prize giving ceremony the Principal thanked staff publicly for their hard work as ‘senior management need to recognise, celebrate and reward quality improvements’ (Torrington Hall 1995 p 303). This act made all managers feel proud to be a member of the college. Staff Development and Training (SDT) ‘The job holder is uniquely placed to understand his or her needs, although support and training are likely to be necessary’ (Wood, Barrington Johnson cited in Goss 1994 p 75). All managers in the college participate in development and training much of which is self motivated. One interviewee commented that they had received more SDT in the first six months of working at College X than they did in their previous employment of twelve years. The GB fully support staff development and have taken the decision to keep the SDT budget high for 2010-11. However they want the college to develop a more synergised approach to SDT by linking the needs of the strategic plan directly to PMR. Question 9 implies that there does need to be more focus on SDT via the PMR, thus supporting the GB’s strategic direction. Interviewees of all levels stated that no external development opportunity was rejected however there appears to be little evidence of how reports on training effectiveness and its methods of utilisation within the college are recorded and distributed, one suggestion for this was the use of SharePoint. SDT targets are set for each unit or school in the college. Most managers felt there was little initial training in operational management skills. It has been proposed that when the new PMR policy is introduced all new management appointees should have to undertake formal training in leadership and management skills, in line with Institute of Leadership and Management (ILM) criteria. Informal Support The majority of interviewees agreed that â€Å"their peers gave them a sense of companionship and support that really helped them in the college†, however others felt isolated due to the nature of the post. The introduction of a mentoring programme could alleviate this by ensuring all managers have the same level of security and collegiality.   FDs felt they rarely meet as a group and when they did â€Å"it tended to be due to crisis management, but it does allow us time to talk†. Informal and flexible support that was not rigidly monitored, i.e. an open door policy gave the majority of interviewees and questionnaire participants a sense of positivity and support. All participants emphasised the need for Away Days – planned time when ‘   effective teams will stop working and review the quality of their ways of working (Murgatroyd Morgan 1992 p 145) enabling those involved to reflect as a group on past performance and develop new initiatives. The concept was introduced by the CE as an opportunity to involve all managers in the development of the college strategic plan. The most recent event enabled the CE and GB to give managers a strong sense of psychological support and security in troubled transformational times and established a shared mission, vision and values (Appendix 6). Summary Through examining key issues it is evident that a well structured management support system is necessary in order for those involved to feel confident and valued and fulfil the performance targets set internally and externally.   The development of the new PMR, appraisal and induction processes together with a more integrated approach to SDT should enable managers to function to greater effect. The CE and GB are clearly aware of the need for proactive rather than reactive systems. The last staff satisfaction survey had a disappointing response of only 23.5%. Hence, the GB tasked the Principal, HR and Chair of the HR Committee to identify ways of increasing participation in future, as it is a key indicator of how the college is viewed as well a measure of job satisfaction amongst its employees. Effective PMRs, development and training, attention to the emotional and physiological needs of being valued, trusted and empowered should therefore create ‘ confidence, loyalty and ultimately improved quality in the output of the employed’. (www.emeraldinsight.com seen 23.3.2011). Conclusion The aim of this assignment was to identify the effectiveness of the formal and informal support mechanisms available to all managers of college X. And if the psychological, social and development needs of employees are supported to the same extent as that of its students. From the results of the primary research it is evident that the available support does enable managers to carry out their day to day job roles. However this is not consistent across the college and the experiences of managers varies greatly, as one interviewee said â€Å"if you open me up I will have the college name through me like a stick of rock† illustrating the feeling of well being and genuine job satisfaction created by good support†. However at the opposite end of the spectrum, another commented â€Å"there is no incentive – when you do introduce something innovative someone higher usually takes the credit and gets recognition†. Students have a plethora of support including; course tutors, learning coaches, counselling and financial support. To some extent this research does suggest that the majority of managers do have comparable support from their superiors, use of HR expertise and staff development. It is not sufficient to just have those resources, it is how their effectiveness contributes to the improvement in performance of the managers they support.   Managers at all levels receive feedback on strategic or operational targets and indicators that is the priority although much of the feedback is ‘ad hoc’ and not recorded although many managers liked this informal approach. Ensuring feedback is regular and consistently applied coupled with finding the appropriate time and arena is proving to be a more difficult aspect to resolve. The autonomy given to managers by the CE permits them to carry out their duties in a way they see fit, as one interviewee said â€Å"I’m paid to do the job, not continually ask what is to be done†, another commented â€Å"trust is absolutely a positive aspect, although there is no direction from my line manager, I feel empowered†.   Trust and value in the individual’s judgement is seen by the majority of managers as implicit for the mature and positive work environment at college X. The current support mechanisms are suggested by interviewees, as somewhat inadequate and outdated in respect of the feedback and development they need to undertake the roles and performance demanded of them in the fast changing climate of FE. Fletcher suggests that ‘ all systems have a shelf life – perhaps changes are required to the system to renew interest and energy ’ (Fletcher cited in Torrington Hall p 327) and it is evident that the GB and CE are pro-actively committed to creating an environment where all supportive systems are integrated, have meaning in their relationships and recognise positive contributions from the individual employee and their effect on the performance of the institution as a whole. 4. Recommendations At the end the focus group and interviews, all participants were asked what changes they would like implement so as to create a more supportive work environment which promotes job satisfaction. Many of these concur with the findings of the research undertaken. Develop a system of mentoring and continue more effective induction and probation periods, which is timely and enables new managers to have first hand guidance and support in respect of college procedures and procedure thus enabling them to undertake their duties effectively from the very start.   Improve lines of communication in respect of the recognition and distribution of good practice by developing greater use of peer groups so that managers of all levels do not work in isolation benefit from the support of others. And increase the use of ‘away days’ to inform, give direction and feedback to strategic and operational managers thereby engaging everyone in the improvement of performance in college. The anonymous data and findings collected for this research should, with the permission of all interview and questionnaire participants contribute to the current review of the PMR and appraisal processes. Introduce effective methods of development and training to ensure all managers are aware of and confident in the use of procedures identified in college policies, this has been identified by the GB as a priority. Establish through a skills audit or needs analysis a programme of management training for the next academic year in relation to actual issues such as conflict training, people management and motivational skills thereby ensuring their subordinates are effectively supported and managed. Develop a system that enables the information and knowledge gained from development and training events is available for circulation amongst managers and appropriate measures are introduced to ensure value for money and positive outcomes in performance. Use the findings of this report to act as a foundation for further research and literature review in preparation for dissertation. References Couillart, F. J. Kelly, J. N. (1995) Transforming the Organisation. New York. 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