Fundamentals of Enterprise Risk Management - Case Study Example

Student Name: Student Registration No: Course: Programme: Institute: Tutor Name: Date Due: Leadership model and case study COALBLACK MINE Abstract CoalBlack mine is the largest employer in Pictures valley regional Australia. It is adjacent to a town that derives its economic sustainability from the mine, due to the large number of people employed in the mine and the number of commercial activities taking place around the mine. The profits created from the mine are good and the depth of the resources is projected to last a considerably longer period. However, despite this resourceful existence, the mine does not seem to share a good relationship with the adjacent town people due to its activities that somewhat are inconsiderate of a number of environmental and social aspects of existence. Poor environmental records and at large pollution have led to this sour relationship. Of importance to note is the type of leadership that has previously been used in this organization, with reference to sensitivity to employees and the surrounding community’s concerns and welfare. Introduction As a new executive officer of this coal mine, a lot appears to be in store waiting for my intervention if the situation of this mine has to be restored for future profitability. This is in relationship with establishing a working relationship with the employees for the achievement of the company’s goals and objectives. The company has to learn to co-exist with its external environment that includes the surrounding community of people and that of a sustainable recognition of the bio-diversity as an essential component of the company’s rather indirect goal (DuBrin, A., 2010). I will therefore engage in a reform process that not only targets the company’s profitability, but also creating an environmental friendly industry that is a component of a society’s sustainable development, with respect to the identification of bio-diversity as an essential part of that particular development. I will embark on a task of providing the organizational leadership of this company and to transform the image of the company to the wider community in the following frameworks: Risk management This is a leadership framework that is very essential in identifying the possible uncertainties that may scuttle the operation of the company in its pursuit to achieve its set objectives. It involves a broad analysis and the mitigation of such uncertainties through the process of decision making. It entails a larger perspective of identifying the organizational needs in the preservation of assets, reduction of operational mishaps and protecting the welfare and health of employees as well. In its simplicity, a risk describes the severity or probability of loss or accident as a result of operational injuries to workers and the loss of materials or assets. Risk management on the other hand involves a process of identifying such possibilities and constructing a strategy of avoiding injuries to the company employees and protecting against the reduction of profits due to destruction or loss of resources. In this regard, I will seek to maximize the operational ability, conserve and preserve resources and personnel, mitigate or prevent losses while increasing gains, undertake a process of evaluating the possible risks and strategize on how to minimize them, while in the same process work to maximize profits (DuBrin, A., 2010). I will also identify and document the threats to the company’s mining scheme with a view to transform its image to the town people and the environmental hazards. In the same process, I will also identify and document more opportunities for the company and also to the employees and the surrounding community for reasons of re-building their love, confidence and trust in the company as one of the largest employers in the district. This whole risk management process will: i. Identify the risk hazards ii. Examine the extent of risks iii. Establish measures of controlling the risks iv. Define control decisions v. Implement the risk control decisions vi. Carry out risk supervision and review to wind up the whole process. Leadership style I will adopt a transactional and transformational style of leadership, incorporating the democratic I and visionary ideals of leadership, so that: i. I may change the already damaged situation by recognizing employees as the engine of the company and that without them the goals of the company will always remain a milestone to achieve. ii. The relationship between the company and the surrounding community is rebuilt to enhance good working relationship and to create a good consumer base so as to propel the company to the higher level of achievement. iii. I may create a logical and a cohesive teamwork, where everyone feel exclusively inclusive of a production process. Employer motivation It has been identified that the former CEO did worse than better by turning a blind eye and a deaf ear on the concern of employees. It will form my top priorities to inculcate a culture where employees do not only work to earn, but they work to progress in skills and values. Employee motivation in terms of performance appraisal would be enhanced where their hard work is identified and commensurately rewarded (KLIMOSKI, SCHMITT, & ZACCARO. 2001). This may involve giving material prizes, organizing trips for them and creating a framework in which hard work and dedication forms the fabric of job promotion and which is impartially executed. Pay rise may also be involved in this process, to indicate the company’s relentless dedication in promoting and overseeing the welfare of its employees. Social and Environment Social and environmental factors are important aspects of a company’s existence and goals of profit making. The poor relationship between CoalBlack and the community members is due to its insensitivity on the welfare of the animal and plant life, which are the basic environmental component and the people of that community in regard to their health and safety in using environmental resources like water. (HAMPTON, J. . 2009). As the new CEO, I will undertake every possible mechanism to develop a program of restoring the environmental issues because, it is to the best of my understanding that the industry/company should give back to the community no to take everything from it. This applies to the companies strategies in creating and enhancing community development. I will spearhead the construction of conduits that direct the run offs which are of course polluted to a well constructed sewer system to avoid further contamination of the town’s water supply. This will also act as my tool to convince the conservation groups that the mine will be transformed for better. The few available traces of endangered species in the mining site will be well taken care of with a move to create safe grounds for their survival. The likely existence of an aboriginal burial site is indeed a disturbing issue to the community. To help out this wanton situation of affairs, I will direct the construction of a parameter wall just around the area prevalent of the unearthed bones to further reform the environmental conservation program of the company that is to the best of the community. Organizational ethics and culture Ethics describe the organizational accepted code of conduct that every employee from the administration to the lower level are expected to adhere to. Culture denotes the manner or way in which things are done within an organization. First, it will be necessary to create a culture where employees feel as a complete system of a production system. In this way they will be more answerable and handle their duties in more responsible ways. Teamwork within the organization is a very reproductive culture where tasks will be completed regardless of who is absent and present. Time consciousness and regular attendance to employees respective duties is an important code of conduct, where employees apart from respecting one another and those above and below them, they also respect their duties and responsibilities (HAMPTON, J. J. 2009). The company will also have to develop a culture of conducting performance appraisal and reward where is due. Management of conflict It is a popular notion, that in every organization, conflicts must arise. Due to this understanding I am prepared to undertake conflict resolution programs that are in good faith the company’s performance and philosophy. Conflict is to great extent very influential tool of making decisions that are productive within an organization. When employees present different options of varied depth, an informative discussion and research may be undertaken to deliver on the most prolific idea. Because of this, I will be diplomatic in resolving the conflicts after determining the nature of the conflict. Resistance to change A company that is resistant to change is as good as almost dead. We live in a world that grows everyday with new ideas cropping and more innovations aroused. As a company’s CEO, I will not let CoalBlack remain within its status quo, but rather integrate the dynamism of change in a more rational way. Technological advance at the mining or production level will be treated with utmost enthusiasm so as to respond to the ever changing and transforming economic world. If anything, I will not wait for change to come to my desk but rather will seek economically viable changes that have the potential of transcending the company to a higher level of development (KLIMOSKI, SCHMITT, & ZACCARO. 2001). Exercise of power and politics and implication for leadership style It is my vision to successfully lead CoalBlack Company to an unimaginable success scale. I will transform it as I stated in my leadership style. I will integrate the type of leadership where I become the servant before exercising my power as the CEO. I believe this will be an exemplary leadership where I act as the role model of other employees and raise their working and team spirits. Little political outplay that are divisive in nature will however not be tolerated, in order to maintain workplace harmony and peace. The use of terms As a leader I will encourage the use of jargons within the company so as to simplify the understanding of certain aspects of work. These jargons will apply to the terms and conditions that every employee must observe while working for the company. They describe what should be done and what should be avoided. Communication and understanding thus are very important aspects of the company that work best to eliminate the occurrence of many problems which come as a result of lack of communication or understanding with an intention of creating stability and good employer-employee understanding. Executive training and succession Executives of every organization; may retire, quit or dismissed. To avoid putting the company into a state where should any of the fore-mentioned occur then there is leadership black-out, I will develop a pool of leadership succession. This succession plan will help train other competent employees to warm up to any post of responsibility should the above happen. I will undertake this since it is the responsibility of an organization’s senior leadership to groom others for various executive posts. Offsite training or site training may both be applied in this case to equip the employees with not only leadership skills but to also make them advance on their technical skills for reasons of competence (DuBrin, A., 2010). References DuBrin, A., (2010). Leadership: research findings, practice, and skills (6th ed.). Mason, OH: South-Western/Cengage Learning. HAMPTON, J. J. (2009). Fundamentals of enterprise risk management: how top companies assess risk, manage exposures, and seize opportunities. New York, American Management Association. KLIMOSKI, R. J., SCHMITT, N., & ZACCARO, S. J. (2001). The nature of organizational leadership: understanding the performance imperatives confronting today's leaders. 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