The OSIM International Limited - Leadership - Case Study Example

CASE STUDY: LEADERSHIP By [Student’s Name] [Code + Course Name] [Name of Tutor] [Name of University] [City, State] [Date of Submission] Introduction Leadership refers to that process through which an individual exerts influence over another person, or group of people. In addition, it is the concept of inspiration, motivation and direction, all of which help the group in the achievement of goals and objectives. Effective leaders often carry out the above to achieve goals, while the influence exerted by ineffective leaders does not in any way contribute to the attainment of goals. Instead, their efforts only serve to detract from goal attainment. Beyond meeting goals, effective leaders also increase the ability of an organization to meet its challenges head on, and eventually counter them. Other advantages that come with effective leadership include the ability to achieve a competitive advantage, adapt to a continuously dynamic business environment, cultivate ethical behavior and also effectively manage a diversified workforce equitably and fairly for optimal output (Waddell, Jones and George, 2012, p.172). People tend to accept or follow the influence of a leader because the leaders have the power. Otherwise, it would be very difficult to go and follow a person who has no kind of power over an individual. As Katherine Graham notes, “Nobody ever has as much power as you think they have”. Social influence, on the other hand, is defined as 'change in the belief, attitude, or behavior of a person (the target of influence), which results from the action of another person (an influencing agent)', and social power as the potential for such influence (Bartol et.al, 2008, p. 481) This paper examines the OSIM International Limited, a global leader in branded healthy lifestyle products and its leadership structure as displayed by the company founder and CEO, Ron Sim. 1 .What characteristics of the various leadership styles does Ron Sim demonstrate? From the case study, Ron Sim is portrayed a great leader due to the way he handles the company as well as his team. To begin with, he is intelligent, assertive, treats his employees with trust and respect, is open and honest with them (Davidson et.al. 2009, p. 355). He also strives to ensure that workers are motivated, and that they work hard towards the attainment of OSIM International Limited objectives. In addition to the above, Ron possesses personality traits in the form of originality, skills and abilities, as well as social factors which are in the form of interpersonal skills and sociability (Waddell, Jones and George, 2012, p. 172). Ron is also resourceful, has the drive (achievement, motivation, ambition, energy, tenacity and initiative), leadership, motivation, self confidence, cognitive ability (intelligence) and business knowledge (Bartol et.al. 2008, p.481). Ron is also in possession of some key management skills, which include technical skills, human skills and conceptual skills (Bartol et.al. 2008, p. 14). The above qualities demonstrated by Ron, the founder and CEO of the company are displayed in the manner in which he conducts his day to day activities. To begin with, he is a very successful businessman and entrepreneur, traits which are supported by the successful business that he owns. This has been reinforced by the fact that on numerous occasions, various stakeholders of the corporate world have recognized his business achievements, and for this, he has been able to receive numerous awards and recognition. They include Ernst & Young’s ‘Entrepreneur of the Year’, as well as the Business Times ‘Businessman of the Year’. Prestigious educational institutions in Singapore have also given him various honors in recognition of his business achievements. In addition, Ron assumes total responsibility for his team and this is demonstrated in the way he leads the team through his own actions. He has a hands-on kind of management style and as such, his team follows by example. Being a very successful motivator of his staff members, they always look up to him for guidance and strength. This also demonstrates his prowess at the various human skills mentioned above. The success of his business is solely supported by his initiative, resourcefulness, drive, technical and conceptual skills, intelligence and knowledgeability. These are the leadership skills that come in handy and assist Ron in making major decisions that relate to the running of the business. Such decisions include deciding on new products to introduce to the market, pricing mechanisms, the company’s target market, how to deal with the competition, maintenance of the network of the firm and how to determine the viable locations for investment. In the case study, we have been informed of the three R’s policy that Ron has recently introduced to the company, all in a bid to respond to the competitive and turbulent business environment that OSIM is currently facing. This move proves that Ron is intelligent, assertive, has conceptual skills, planning skills, resourceful and has drive. He responds to the market situation by facing it head-on, and taking steps to ensure that the company gets through the turbulence as opposed to sitting back and waiting for market nature to take its course. 2. What sources of power and influence does Ron Sim possess and apply in his leadership role? Power refers to the capacity of one party to affect the behavior of others, or to influence other people. In most occasions, powers stems from a person’s position in the organization, as well as what the person knows and is able to do. The sources of power and influence that Ron Sim possesses result from his desire to change the organization from within, as well as from outside the organization. Ron Sim’s influence and power stem from the fact that he can manage change. He applies this influence and power to effectively introduce, influence and manage change in the organization. To start with, Ron is a competent manager and leader, as can be evidenced by the character and leadership traits described in question one above. This has put him in an advantaged position where he can scan the internal and external environments of the business, predict future occurrences based on past and present conditions, and consequently make amendments that will prepare the business to face any future unforeseen eventualities. The process begins by identifying a performance gap which the manager identifies by comparing the actual performance with the targeted performance levels. After this, he identifies a desired future by evaluating whether the current situation is what the firm would desire to be, or whether they would desire to grow. This is the process that recognizes the desire for change, upon which the manager must diagnose the problems existing in the business. Problem diagnosis, then gives rise for the development of alternatives that could be used to solve the problems at hand. First, a team should come up with a number of alternative solutions, weigh the pros and cons of each, and then settle on the most appropriate one(s). This is then followed by the implementation which involves putting into action the alternatives that have been agreed upon, whose outcomes are then evaluated against the desired outcomes. This is a procedure that requires an individual able to exercise their power on people so as to manage resistance to change effectively. According to Davidson et.al, (2009), people resist change due to the fact that they lack understanding and trust of the people and organizations they work for. Low trust levels existing between top executives, the management and employees is usually the major cause of misunderstandings and be the major hindrance behind the change as all the parties oppose any steps geared towards change. In the case of Ron Sim, he has cultivated a healthy relationship between himself and the employees and the same has led to trust and honesty in the team. Ron leads his staff members through his own actions, and his employees look to him for guidance and strength. His goal is to promote a positive attitude towards healthy living, which he does by establishing the aspect of trust between his employees and himself (the company), and also the company’s clients and customers (Bartol et.al. 2008, pp. 246-249). 3. Which leadership traits are apparent in Ron Sim’s leadership approach? In your answer provide examples from other leaders who have also shown some of these leadership traits Ron’s leadership approach makes use of legitimate, expert, referent and information power to run the organization. Legitimate power is that kind of power that comes with the hierarchical position in the firm. This power includes all the authority that is vested upon the individual by the organization for the position they hold. By being the founder and CEO of OSIM, Ron Sim automatically assumes legitimate power over the entire company. A leader who exercises this kind of power is Richard Branson, who has legitimate power over the Virgin Group, simply due to the fact that he owns the organization. In regards to expert power exercised by Ron, it refers to that kind of influence that stems from the information or expertise level of the leader. He is an expert in policy making, technical matters, making decisions, handling customers, planning, controlling, and excellent people skills. As such, the workers act as followers to this kind of expertise because they have to seek guidance and follow instructions from him. An example of a leader who exercises this approach to power is a chef who runs a catering company. The chef is an expert in culinary matters and therefore makes all decisions regarding the biggest operation to the smallest detail due to the fact that they are familiar with culinary and food services. As such, his workers look up to him for directions on how to carry out certain processes (Davidson et.al, 2009, p. 353). Referent power is abstract in nature and tends to base its ideology on identification, loyalty, charisma or imitation. In this kind of leadership, the followers (workers) strive to find a characteristic of their leader that they can identify with and feel somewhat identical to them, which often creates a favorable reaction. Ron creates this form of approach when he takes part in the technical aspect of the organization’s job and the workers get drawn to him for this. They realize that he is just a part of them and they develop some degree of loyalty and admiration for him as well as the company (Bartol et.al, 2008, 175-178). Information power, on the other hand, is the kind that comes with accessing and controlling the distribution of information in regards to the operations and future plans that the firm considers to take. Naturally, the management in the firm has more information in its possession when compared to the subordinate staff. As such, they hold much power which can easily be used to influence the workers, either positively or negatively (Raven, 2008, p. 4-8). Ron Sim, by virtue of being the founder, CEO and outright owner of OSIM has this absolute power over the present and the future of the firm. For this reason, he is aware of any future plans that he could have in regards to employees, products, salaries, commissions, distribution network, and any other matters. This gives him power and authority over the employees because he also has the authority to make decisions that concern them as employees (Bartol et.al., 2008, p. 481). An example of a leader who makes use of this kind of power approach is a human resource manager at a firm who has information that relates to the background of all the employees, their personal details, their salaries and all matters that pertain to their lives. 4. Would you describe Ron Sims as more of a transactional or transformational leader? Justify your answer with examples from the case study. The kind of leadership displayed by Ron Simons is more of a transformational kind of leadership. The reason for choosing transformational leadership is due to the fact that transactional leadership involves a sort of an exchange relationship, where both parties influence one another reciprocally in a manner where both derive something that is of value to them. Transactional leaders offer their followers something of value, in exchange for something that they need from them. As such, the relationship between the two is of mutual benefit, whereby the contributions of each party are recognized and rewarded (Kunhert and Lewis, 1987, p.649). On the other hand, transformational leadership has its origins in the individual values and beliefs of a leader towards their followers, and lacks the exchange of commodities or material benefits for either of the parties. Transformational leaders make decisions and take actions out of deeply held individual value systems which include integrity and justice, which they use as their standards of operation. By expressing these standards, they are able to unite their followers and eventually influence their goals and beliefs in a positive way. In this way, performance levels are increased to levels that were previously deemed impossible (Bycio, Hackett and Allen, 1995, p. 470). From the case study, Ron is this kind of transformational leader based on the fact that he recognizes that as a leader, he has an inherent responsibility to his team. A major part of his responsibility is to lead staff through his own actions, with employees looking to him for guidance and strength. As CEO, Sim spends most of his time doing what he preaches to others. His goal is to promote a positive attitude towards his employees by assisting them to realize their potential alongside that of the company. Reference List Bartol, K.et.al, 2008, Management. A Pacific Rim Focus. Sydney, McGraw Hill Bycio, P., Hacket, R.D. and Allen, J.S. 1995. Futher Assessments of Bass’s (1985) Conceptualizationof Transactional and Transformational Leadership. Journal of Applied Psychology. Vol. 80. No. 4. Pp. 468-487 Davidson, P. et.al, 2009, management Core Concepts and Applications. Sydney, John Wiley Kunhert, K.W. and Lewis, P., 1987, Transanctional and Transformational Leadership: A Constructive/ Developmental Analysis. Academy of Management Review. Vol. 12, no. 4: pp. 648-657. Raven, B.H. 2008. The Bases of Power and the Power/Interaction Model of Interpersonal Influence. Analyses of Social Issues and Public Policy. Vol.8, no. 1: pp. 1-22 Waddell, D., Jones, G. and George J., 2012, Contemporary Management. Sydney, McGraw Hill Read More