Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive

 

Multinational Companies

Employees from different countries have different approaches to company norms and employment. This is as a result of the management culture and beliefs that different people hold. This calls for different leadership styles in different countries depending on people’s management culture. Multicultural education is essential for people holding management levels in multinational companies. It is not necessarily that a company appoints locals to fill the management positions but rather appoints experienced management team. Experience in this case means managers who are able to manage effectively in the country they are appointed. Different leadership styles and skills are required for employees from different countries. While some employees would require flexible working hours, others would wish for tight schedules.

The Middle East employees like struggling to make it in life. They engage in all sorts of jobs. While there is are laws containing bill of rights to protect employees by guaranteeing minimum wages and minimum working hours, the issues of working long hours are overlooked. This means that working overtime in Japan should not necessarily be compensated because the labor laws do not protect it. Middle East workers feel guilty when they are not working. It is argued that Japanese do not have patience with lazy people, people who break promises, and those who do not work to their best. Keeping promises should be ensured through working hard. According to them, poor service is regarded as an individual insult (Mohwald, 2002, p. 13-5).

The Asian workers differ from European workers who view work as a way of reaching a certain goal. For Asians, working is an end in itself and is thus considered as an existential existence. This implies reaching one goal should be a start of the next one. Achieving one goal through working will only mean more working to achieve the next and hence a chain of working hard to achieve more goals. Children are taught in their early ages that they should work hard because this is a virtue. They should therefore help with pleasure and enthusiasm. Asian employees are go-getting and find themselves naturally working extremely hard (Shinohara, 2009, p. 28-31). This way, they provide their clients and their employers with the unsurpassed service.

Some Middle East citizens are well educated with blue-collar employees from Asia matching with engineering graduates in European countries. This is ensured through both education and training once in the job industry. Further, training is essential and is done via apprenticeship-like systems. Trainees are encouraged to ‘learn and steal’ the taught skills from the masters. This is done to make the trainees as competent as the masters and ensure that the employees do their work perfectly. Employees should continuously train in different skills and make sure the understand the trained skills (Deresky, 2011). 

The recommended working hours for Asians are 46.5 hours a week. Initially, the employees were entitled to eight hours on weekdays and four working hours on Saturday. This has changed to off on Saturdays but most employees find themselves working on Saturdays. Additionally, many employees like working overtime with no extra compensation. Even with the promise of three-week holiday for many employees, many do not take their time off but rather continue working. Surveys prove that workers do not have much free time.

While the employees are entitled to paid vacation and holidays, they do not have people to take on their job positions because of the decreasing working age population in the country. It is also proven that with salaried men being used to self-sacrifice and hard work, they are guilty of taking time off when other employees are working. People are only comfortable and relaxed when they take time off for funerals, weddings, and other important events. Taking time off work would make one feel guilty and uncomfortable.

Reference

Deresky, H. (2011). International management: Managing across borders and cultures. Upper Saddle River, NJ: Prentice Hall.

Möhwald, U, 2002, Changing attitudes towards gender equality in Japan and Germany, München, Iudicium.

Shinohara, C, 2008, Equal Employment Opportunity Policies and Attitudes Toward Gender-roles in Japan Since 1985, Minnesota, ProQuest.

 

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive

 

 

Question 1

            Alliances are formed between two or more companies where they agree to share technology, human resource, and financial resources to improve their performance. However, alliances in sensitive areas pose serious challenges to the firms because of the mistrust. Notably, mistrust creates secrecy, which undermines the purpose of the alliance because the involved parties cannot share the important resources to increase profitability. Some Organizations believe that to share their technologies and other resources introduces competition in the business field, which would affect their market share. Although the benefits are numerous, the challenges such as cross-cultural differences, conflicting strategic objectives, goals, and disputes that arise from control and management systems have detrimental effects on alliances. In addition, the failure to collaborate effectively could lead to failure to realize the implementation of the alliance's goals. In highly sensitive areas, the leaders should agree on the resources that the organizations would share and the terms and conditions. In technologically intense business fields such as semiconductors, computers and pharmaceuticals, alliances become a new competition according to the terms and conditions that the initial firms agree to take. Such situations slow down the realization of the benefits of the alliances, which are to enter the global marketplace within a shorter time with fewer challenges.

Question 2

Governments in host countries impose regulations that multinational companies should follow to reduce conflicts. However, the regulations pose some challenges especially if they change regularly. Administrations control the deployment of economic resources by MNC managers hence limiting the autonomy of the MNC strategy. The first challenge affects the strategic freedom of the managers since they cannot implement their policies at will. The second is a challenge to the managerial autonomy as managers try to implement their strategies in their home nations. Host nations impose restrictions on product or market choice, national trade balance, and technology use. Managers also face the challenge to share their strategies with other stakeholders in the same business. In effect, they cannot have a managerial autonomy that leads to a competitive edge for the MNC. In some cases, managers are expected to decentralize decision-making processes, which affect the internal functions of the company. Subsequently, the managers of these organizations have to share their strategies with other firms, which lead to restrictions especially in terms of innovativeness and creativity. However, some leaders choose to develop strategic plans that make some competitive sense and agree with the host government on how to share the strategy (Deresky, 2010).

Question 3

In principle, global geographic structure affects large organizations that are not dominant in a particular region, country, or area. Such organizations create regional CEO who manages a given region as opposed to responding to global leadership. The advantages of the structure include ensuring that each geographical region is semi-autonomous with goals and objectives that do not respond to the entire world. In this manner, a certain region can have the authority to produce a particular set of products especially if they are located close to the raw materials. Alternatively, the region can use the accessibility to cheap labor to perform a mass production of goods that would be sold across the world. Additionally, each group shares responsibility for foreign operations because they have to understand how business is conducted in a given region. At the same time, the regional leadership improves it decision-making processes because it does not have to rely on feedbacks from the headquarters to enact the necessary changes (Deresky, 2010).

On the contrary, the system has disadvantages as regional CEO could opt to champion their unique needs and forget about those of the mother firm. Moreover, it could lead to duplication of work since each region manages its affairs independently. Innately, MNCs want a situation whereby they share experiences from their locations, but the strategy limits the opportunity because each CEO focuses to meet his or her objectives. Subsequently, it affects organizational performance and profitability; thus, limiting sustainability (Deresky, 2010).

Question 4

The role of information systems plays an integral role in the monitoring systems of MNCs. Notably; some organizations could choose information systems, which are incompatible with those of the other subsidiaries, as a result, the management should consider systems that are applicable across the multinationals to improve communication between the different regions of operation. Importantly, the exchange of data between different regions is critical to running an MNC; therefore, the firm should have systems that can process data from different locations even when they are not suing the same software. In this regard, the MNC can adopt different communication channels to suit varying needs that arise in the management of systems. The managers should be responsible for exchanging any necessary information in real time. On the same note, staffing policies differ from one country to the next; therefore, the management of the MNC should ensure that the policies are acceptable in the host country to reduce the chances of legal suits. Furthermore, the firm should ascertain that it expatriates are compensated as per the laws of the host nation (Deresky, 2010).

 

Reference

Deresky, H. (2010). International Management: Managing Across Borders and Cultures: Text and Cases. Upper Saddle River, N.J: Pearson Education.

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive

 

Training and Development of Human Resource Project

 

 

Developing a Leadership Development Training Program for Moller & Maersk (M&M) Group

Human resources are very important assets in an organization. This is not the era in which human resources were considered objects that could be ordered around. All the activities and tasks in organizations are carried out by human resources. Irrespective of the size of the organization as well as the extent of the resources, the organization succeeds as a result of the performance and capabilities of the people who are the employees. It is therefore the responsibility of the organization to maximize the capabilities and performance of the employees through human resource management. The human resource function in an organization incorporates several activities including the staffing needs the organization has and how to fulfill them, recruitment and training strategies to have the top talents, handling performance issues, and ensuring that the human resource practices conform to the stipulated regulations (Ofori,Sekyere-Abankwa&Brquaye, 2012).

Organizations are required to ensure that human resources continue to be productive assets for the organization. This is done through training and development in which the employees are equipped with the necessary skills that will enable them perform their tasks effectively and to satisfactory levels. Training and development program would be of great help in the case of Maersk Group, which is faced with a number of challenges in human resource management. The talent management issues according to Maersk Group that need to be addressed are increased employee turnover, increased employee diversity, internal training and development programs, rehiring previous employees, and hiring experienced employees from the external labor market.

Even with these evidenced challenges, Maersk Group has to have the right talents in the right job at the right time. However, this does not mean that the company should always be losing top talents and hiring new fresh employees from colleges. There is thus need of the company coming up with a training and development program that would help solve the identified human resource issues. Even though there are different ways of ensuring effective training and development programs in organizations, the ADDIE is among the best. This model has five major phases that make the training and development program easy to plan and implement. This is because the training and development program should not only align with the goals of the organization but also with the learning needs of the employees who will participate in the training program.

Assessment

            Even though all employees in an organization are important, there are some who are critical to others because of their indispensable nature. This is based on the fact that some employees are hard to replace and leaving the organization is a big blow. It is easy to replace the junior employees because their assigned tasks are general and less complicated and new employees can easily learn them. This is not the same case for top managers who require not only the knowledge and skills learned in school but also the experience that is earned by working in a certain organization. Such employees are also holding very important positions in the organization that might take long to replace. The greatest challenge faced is when a manager was in the midst of implementing a project that when left incomplete would negatively affect the organization (Alagaraja, 2013). These are some of the challenges Maersk might be exposed to as a result of increased employee turnover. Increased employee diversity is also a great challenge to the organization since if not effectively managed, the organization might evidence conflicts. However, with effective management of employee diversity, Maersk would benefit from the advantages of diversity such as varying skills/ talents.

As a result of changes in technology, there is also need of an effective training and development so that they do not get obsolete. With changes in technology, employees should be trained to be conversant with the applied technologies in the organization. Maersk also requires a hiring, training, and development program that will enable it hire experienced and skilled talents from the labor market. Maersk should be able to hire and retain top talents by matching them with the right jobs. This also requires rehiring previous employees who have maybe left and become more skilled and experienced in the same positions they held or even in higher positions. These are the human resource gaps that the organization should address. The main aim of the developed training and development program is to have the best talents who match the assigned tasks and thus report excellent results.

The training and development should ensure that the organization has very experienced and skilled talents for the first 120 positions. These are the people who are vital to the organization and who ensure that the goals of the organization are met. These are the people who are responsible for matching the tasks assigned to all other employees with the strategic plans of the organization. These positions should be filled by specifying the education, training, and work experience levels. In order to work in the HR field, the chosen candidate should have a bachelor’s degree in HR field, business, or related field. For those filling the top most HR positions, Master’s degree would be considered. Further, the candidate should have work experience of over three years in a related position. One should also be working an equivalent firm and managing over 2000 employees. Additionally, one needs to be qualified in certain skillsincluding mathematical aptitude, HR principles and practices, effective communication skills, strong interpersonal skills, and laws governing HR management.

The tasks of the HR manager include handling all HR issues in the organization including hiring the right talents for each job so that they perform the assigned tasks satisfactorily. The HR manager should ensure that the hired employees are trained to fulfill their learning needs. This is beneficial for the organization as employees would be able to perform the assigned tasks effectively and efficiently, meeting targets and standards. With the training and development, employees would be able to use the applied technology in the organization to achieve the set objectives of the firm through improved performance and productivity. The expected constraints include limitation of non-human resources and a strict timeline. The assessment tools and methods to use are training workshops, group discussions, and registration for formal college education. There are four terminal learning objectives for the case of Maersk namely decreasing employee turnover rates, increasing and understanding employee diversity, increasing rehiring of previous employees, and attracting the best talents from the labor market.

Design

The purpose of this training and development program is to have the best program that would help solve the identified issues. The identified issues are increased employee turnover, increased employee diversity, internal training and development programs, rehiring previous employees, and hiring experienced employees from the external labor market. The program would set the deadline for achieving the set objectives, assign the tasks to be performed in achieving the objectives, and provide the required resources. This will be done as discussed in the learning objectives below:

The Learning Objectives

Decreasing Employee Turnover Rates

Action: Enhancing employee motivation by matching assigned tasks with the level of employee skills through training programs aligning with the current technology

Conditions: Contact employees who are performing poorly in their jobs and complain of job complexity 

Standards: Engage them in training programs to have them fit in their assigned tasks, conduct the training within duration of two weeks

Increasing and Understanding Employee Diversity

Action: Enhancing multiculturalism at Maersk by encouraging employee diversity

Conditions: Contact two supervisors who are in charge of diverse employees and who are complaining of challenges posed by diversity

Standards: Engage the supervisors in a-one week training addressing issues of employee diversity

Increasing Rehiring of Previous Employees

Action: Increasing rehiring of top talents back to the organization

Conditions: Identify five top talents that Maersk is interested in rehiring

Standards: Conduct research within three weeks regarding the best strategies to apply in attracting the previous top talents

Attracting the Best Talents from the Labor Market             

Action: Beating competitors in attracting and retaining top talents from the labor market

Conditions: Changing the hiring system at Maersk to be able to attract the best employees from the labor market.

Standards: Redesigning the training and development program at Maersk.

Training Methods

            The training program will take around three weeks in a classroom form of teaching with each class taking one hour each day, five days in a week. The trainers will be encouraged to research on what they are about to be taught. This will be done through classroom presentation and demonstration. Other training methods are lecturing, discussions, and practice in each of the identified learning objectives. Demonstration by the lecture is the primary training method since the trainer has to go round the classroom, coordinate all the trainers, and use power point slides. Demonstration will also be used during the group discussions that are meant to enhance interpersonal competency. During the demonstrations, the trainers would be involved in practical exercises in the form of performance oriented tests and performance oriented training. This makes it easy for the instructor to measure the learning outcome of the trainers by measuring the level of the learned skill.

Training Materials

  • A proximaprojector
  • A laptop computer
  • Textbooks for research

Lesson Plan

Title: A Training and Development Program Lesson Plan

Description: This lesson plan is required for solving the HR issues evidenced at Maersk

Subject: Training and Development Program

Grade: Senior employees at Maersk

Topic: Reducing employee turnover

Content: Research involving strategies of addressing employee turnover issues

Goals: The senior employees at Maersk would be able to understand the costs of high turnover rates of employees

Objectives: Given the evidenced problem, the trainers would understand the causes of employee turnover and the possible solutions. Through research, the trainers would be able to ensure increase employee satisfaction enhancing retention.

Materials: Projector, laptop, and research books

Introduction: Ask the senior employees chosen as the trainers if they understand any probable causes of turnover rates in the organization and the possible reasons they think would work.

Development: Using the probable strategies used in other organizations to solve the same issues, the instructor would start with it as the starting point.

Practice: The trainers would be involved in a lot of research and share in this in class with other trainers.

Check for Understanding: This will be done with evaluation test at the end of the training program

Closure: Finish up the training up program after three weeks by ensuring that the trainers understand what was being taught

Training Evaluation Criteria

Hands-on skills tests would be used to test the learning level of the students by gauging the training received. This will be before the training program is closed, immediately after covering the set learning objectives. There would also be an evaluation to test the reaction of the trainers, which will be through a questionnaire after the hands-on test. The questionnaire will report the feelings and attitudes of the participants and would also evaluate the effectiveness of the training method. 

Development

After the HR issues faced in the organization are identified and the            learning objectives set, the next step would be the training program of few selected senior employees in the organization to test the planned training and development program that should be applicable to all the employees. The next step would be the implementation process as the tested program is employed in the entire organization. The implementation process would start with identification of the implementation team. This would be done with a project team comprising or organization members as well as the external aid of experts in the field. Maersk would hire the help of a HR personnel expert who would help in implementing the training and development program. He would help to ensure that the learning needs of each employee are identified and addressed appropriately. He would also foresee arrangement of how employees would get time off work to get into formal education to improve their skills and match with advancing technology. The expert would work closely with the HR team selected from the company.

With strategic HR goals aligned with the organization mission and vision, Maersk is likely to succeed. This is supported by Mohammed, Bhatti, Jariko and Zehri (2011)when they argue that human resources are the resources in delivering organizational services. This training and development programs would help the organization with plans to meet current and future human resource needs in order to succeed. Strategic human resource management helps in ensuring that human resource management decisions support the organization’s future direction, which is ensured by having employees who up to date with the current technology. The training and development program implemented at Maersk should also ensure that the organization keeps up in pace with social, technological, economic, and legislative trends that are linked to human resources so that the organization remains flexible and ready for change if the future is not as expected.

            According to Ali(2013),the training and development program should be designed in such a way that it helps in predicting the future human resource management needs after considering the current human resources of the organization, the labor market, and the future human resource environment the organization will be involved in. It is also through the program that Maersk will be able to effectively analyze human resource management issues that are external to the environment. As noted by AlYahya, Mat andAwadh(2013),a training and development program helps an organization determine where it is headed, the human resource strategies required to help the organization get the planned destination, and the skill sets required for the move.

The training and development program should be concerned with different human resource initiatives including of recruitment, talent nurturing, compensation and reward, training and development, and performance management among others. The compensation and reward function would ensure that the organization designs and administers compensation benchmarking as well as competency/ function based compensation strategies. This function should also create benefit programs that attract and make employees committed to their jobs. This package includes salaries, vouchers, bonuses, medical insurance, life assurance, commission, dental plans, company cars, profit sharing, and pensions among others. Through the training and development program, there is right compensation to the right talents at the right time. This implies that employees are assured of adequate compensation for the services they offer to the organization (Alagaraja, 2013), which increases satisfaction decreasing turnover rates. The hard-working employees in this case are rewarded fairly and in an effective manner resulting to motivation and increased performance of the employees. With effective compensation and reward scheme for the company, the training and development program helps in retaining and motivating employees as well as attracting new talents to the organization.

Evaluation

The evaluation of the program would be conducted after the implementation process to measure the success of failure of the program. Using the four Kirkpatrick levels, reactions, learning (retention), behavior (transfer), and organization-level results, to determine the far the program has benefited Maersk. It is expected that the training and development program helps managers work together with the employees to monitor, plan, and review the contribution of the employees to the organization. This way, the organization management is able to set objectives for the employees, assess their progress, and provide continuous coaching/ training and feedback so that employees are meeting their career goals. This function is meant to ensure that employees’ effectiveness is promoted and improved. Further, it would be ensured that the jobs are well-designed, there are clear written jobs descriptions, employees are effectively supervised, the employee training and orientation is comprehensive, and the work environment is supportive and positive (Ofori,Sekyere-Abankwa&Brquaye, 2012).

This program is also a major component for Maersk since it ensures that the organization is able to hire the best talents for any job position in a timely and cost-effective way. The recruitment process according to Anyadike(2013) involves analysis of the job requirements, attracting the right talents for the identified position, screening the probable candidates, hiring the best candidate, and integrating the hired employee to the position and to the entire organization. Training and development on the other hand is noted as a function that betters the performance of individual employees to ensure increased productivity of the organization. Talent nurturing is also an important function for training and development programs and is meant to ensure that the organization has the best talents and these talents are retained in the organization.                    

The reactions of the employees should be positive for the program to be regarded successful. The employees involved in the training and development program should also prove that they have learned what was required as evidenced through their behavior in the work place. The organization-level results would also evaluate the program. With reduced turnover rates and increased retention as well as attraction of the top talents from the top market, it would be evident that the program is effective. 

References

Alagaraja, M. (2013).The strategic value and transaction effectiveness of HRD: A qualitative study of internal customer perspectives.European Journal of Training and Development, 37(50, 436-453.

Ali, A. (2013). Significance of human resource management in organizations: Linking global practices with local perspective. Journal of Arts, Science & Commerce, IV(1), 78-87.

AlYahya, M. S., Mat, N. B., &Awadh, A. M. (2013). Review of theory of human resources development training (learning) participation. Journal of WEI Business and Economics, 2(1), 47-58.

Anyadike, N. (2013). Human resource planning and employee productivity in Nigeriapublic organization.Global Journal of Human Resource Management, 1(4), 56-68.

Mohammed, J., Bhatti, M. K., Jariko, G. A., &Zehri, A. W. (2011). Importance of human resource investment for organizations and economy: A critical analysis. Journal of Managerial Sciences, VII(1), 127-133.

Ofori, D. F., Sekyere-Abankwa, V., &Brquaye, D. B. (2012). Perceptions of the human resource management function among professionals: A Ghanaian study. International Journal of Business and Management, 7(5), 159-178.

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive

cloud based human capital technology

In the course of recent decades, the part of HR has confronted various weights and subsequently is quickly evolving. Due to this, the part of HR is relied upon to give customary operational and staff benefits too suspect, react to particular, and key business needs. As of now, there is a major test that human asset proficient's face and that is the test of addressing business needs utilizing an innovation that is as a part of quick change. Cloud-based human capital innovation applications have presented new channels that can help HR experts change HR to be an administration supplier as well as a corporate counsel. By continually adopting cloud-based human capital applications, it will become easier to deal with ongoing Personnel issues, eliminate inefficient processes, increase profitability, and improve corporate communications.

Investigation

Cloud innovation alludes to a type of processing where numerous gatherings of remote servers are organized with a specific end goal to encourage incorporated information preparing and stockpiling that gives online access to PC frameworks, assets, and administrations. Mists can either be private, open, and crossover. Because of this, it turns out to be clear that human capital innovation that is cloud-based includes the sharing of diverse HCM applications between a few clients.

In the later past, it has turn out to be clear that these common applications have the capability of giving various advantages to all clients that prompts the expansion of business results. Because of this combination, it turns out to be clear that HR offices and IT divisions cannot be isolated any longer in the wake of this innovation that looks to join their capacities to facilitate business needs and operations. Along these lines through these applications organizations will have the capacity to convey better information, increase the value of items and administrations, and in addition be more vital in their business operations. Through these applications and given the way that the innovation is still experiencing significant change then we expect or foresee real changes in administration procedures for ability, hierarchical structure, ways to deal with danger administration, and capital speculation choices.

From this discernment, it is clear that HCM applications that are cloud-based will help CEOs to select and hold the most skilled representatives. This will be based on the grounds that the information they gather utilizing these applications goes about as a type of insight that empowers the scout to survey a man's inward ability given their obligations in light of their intrigues, certificates, and skill. In this way cloud-based, human capital innovation gets more adaptability to the business environment that empowers successive development, improvement of portable access, appropriation of basic achievement components, and parity secrecy that will accompany better social procedures.

Conclusion

Notwithstanding the way that the appropriation of this innovation has its merits, it is essential to guarantee that the procedure of reception is the right one to forestall future difficulties. In addition, it is important to note that the use of these applications will help the senior managers, Suppliers, Customers, and general employees to experience a better business atmosphere because these applications will help to make service delivery easier. Employees will also have more time to do other chores, as their workloads will be reduced. This in turn will lead to increased business efficiency.

 

 

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive

 

The Coca-Cola Company Struggles with Ethical Crises

Leaders are considered the lifeblood of organizations and teams. Leaders are able to rise above hardships by drawing different leadership qualities. A leader is a person who through assigned responsibility or by assuming role of leadership influences and inspires his followers to accomplish the set goals. Such leaders motivate their followers to pursue actions, shape decisions, and focus thinking for the better of the organization. For all types of organizations, good leadership is a developable skill that should be attained over time. It is advisable for leaders to understand the components of leadership (followers and leaders). This is because most organizations’ hierarchical structures require leaders to be followers. Leaders are able to influence their followers by gaining support from people outside their chain of command. Success in this case results from the relationships the leader establishes with the outside parties. Leaders are thus required to build trust through being dependable and honest. Situational and informal forms of leadership are also very important in organizations. Situational leadership ensures that leaders use the leadership style that best fits the situation. Informal leadership is embraced when leaders with technical expertise, knowledge, and experience are allowed to lead in different situations (Odierno, 2012).   

The leadership aspect of effective leaders acts as a multiplier of effects, in which organizations are synchronized and focused, resources are efficiently used, people are motivated and energized, and missions are determined to achieve the desired outcomes. As a result, the organization has a clear purpose, ordered processes, and common methods, accomplishes its missions and sustains itself. It is the responsibility of the leaders to instill courage into the followers to ensure that they are committed to their roles and tasks. Leaders are able to instill courage in others if they are courageous as well. Courage in leaders is shown through the way they make tough calls and decisions (Odierno, 2012). Leaders should not use toxic leadership, which combines self-centered behaviors, motivations, and attitudes that negatively affect the mission, organization, and followers’ performance. Toxic leaders use dysfunctional tactics to unfairly punish, coerce, intimidate, and deceive the followers, which eventually undermines the morale, potential, initiative, and will of the followers to accomplish their tasks (Odierno, 2012). This is detrimental to the organization or team. It is also advisable for leaders from different levels to learn to come together (collective leadership) to synchronize the followers for a common purpose. The research below discusses the types of leaders and ethical issues at Coca Cola.

Effective Leaders

A leader is a person who assumes the responsibility of guiding others to accomplish the assigned task of the team or organization. This does not mean that I consider a leader as a person who should always to be heard. An effective leader is a person who also gives his followers an opportunity to give their suggestions. I consider a leader a person who is able to use participatory form of leadership in which he actively involves all his followers in making decisions. This way, a leader is able to succeed because he has the required support of his followers. I consider this defitnition the best for a leader because I have seen it work for the case of my father who even without a college degree has managed to grow his footwear stores into a mini empire. He has practiced good leadership skills and thus has managed to motivate the employees who feel part of the organization. My definition for a leader is not different from the leader described by Yukl (2013). According to Yukl (2013), a leader is a person who involves all his followers in the decisions and actions taken by the team so that neither the followers nor the leader feel as outsiders to the group. The leader should be a person who can make his followers identify with the group and thus always work towards its success.

As a leader, I have taken the example of my father. I consider myself a person who will never take my leadership power to coerce others. As a leader, I am a person who will offer guidance to my followers. I will involve them in all the discussions affecting the group so that they not only feel appreciated and acknowledged but also identify with the group. I will evidence the qualities of a good leader. According to mansfs, these are being proactive, flexible, a good communicator, respectful, confident, enthusiastic, open-minded, resourceful, rewarding, open to change, interested in feedback, evaluative, organized, consistent, delegator, and initiative. With these qualities, I will have good relationship with my followers and thus ensure that we work as a team towards the same goals.

Transformative Experiences                          

Effective leadership has been influenced by several transformative experiences. One of the greatest experiences is that of my father. I never thought a person can make it to effective leadership without formal education. I initially thought that a leader needs to specialize in leadership and management university courses in order to be effective. However, I have seen my father rise to grow his businesses with the help of his employees who now identify with the organization. I have learnt a lot from him on how an effective leader should be.

I have also had a negative transformative experience that will shape my future leadership style. I watched a close friend of mine lose his business as a result of poor leadership. He had sufficient capital to start and build his business to prosperity. Nonetheless, he conducted himself in a ‘bossy’ manner and this made him lose his flourishing business to his competitors leading to its eventual closure. He never respected his employees and well as the appointed supervisors. He discouraged them at the workplace and gave them the reasons to move to other jobs every time they heard of vacancies. He used his power to coerce his employees to meet the deadlines with unclear instructions since they were not allowed to question his authority and instructions. This led to costly mistakes which led to loss of many of the employees’ jobs. The mistakes made on the order led to loss of customers and eventually closure of the business.

Delineate the ethical issues and dilemmas the company faced

According to Laasch and Conaway (2014), there is a clear difference between ethical issues and ethical dilemmas even though the two terms are repeatedly thought to refer to the same thing. Ethical issues are the issues that require the involved party to choose between the right and wrong. It usually occurs in organizations when they are expected to choose between moral values and organizational goals. On the other hand, ethical dilemmas are the issues experienced when ethics contradict such that it might be ethical to do one thing and still unethical to have it done. Coca-Cola has faced a number of ethical issues and ethical dilemmas in the first few years.

Ethical Issues

There are several ethical issues evidenced in Coca-Cola’s case. One of the greatest ethical issues faced is the contamination scare that started in June 1999 in which around 30 children in Belgian were taken ill after consuming the company’s products. The poorly processed batch of products led to loss of sale revenues as the company was ordered to recall its products. Over 100 people were reported to fall ill in France as a result of Coca-Cola products. A shipment to Poland was also reported to be contaminated with mold. Further, the company took time to make formal comments regarding the issue and thus had a very negative impact on the company’s reputation.  Another ethical issue is the racial discrimination allegations filed by over 2,000 African American employees who felt that they were discriminated against pay, performance evaluations, and promotions. This lawsuit was very costly for the company as it was forced to pay $193 million. Channel stuffing was another ethical issue at Coca-Cola. This involved channeling more purchases to the wholesalers in order to inflate the company’s earnings and thus conceal declining demand or lie that there is high demand. This in turn misleads investors with the current investors investing more or attracting new investors (Jennings, 2014). This happened at Coca-Cola between 1997 and 1999 with extra concentrates channeled to Japanese bottlers to inflate sales and profits.

The trouble with distributors was also an ethical issue faced by Coca-Cola because the company breached the agreement it had with its distributors that Powerade sports drinks could only be channeled directly to commissaries and not to any other organizations such as Wal-Mart. Even though the move was meant to move the company from direct store delivery to imitate the strategy used by PepsiCo to distribute Gatorade brand, it received negative media presentation. This had a great negative impact not only to Coca-Cola but to its partner distributors.The problem Coca-Cola had with unions is also another ethical issue. This came at a time in which eight employees in the company died, 65 were threatened, and 48 went into hiding. The unions argued that the company was not ready to compensate the families of the victims. Even though Coca-Cola refused to take responsibility arguing that only one death occurred in the premise, this incident resulted to negative publicity.The last ethical issue involved coke employees who offered to sell trade secrets. This was done by ‘Dirk’ a very high ranked employee in the company. He offered to sell detailed and confidential Coca-Cola information to PepsiCo. Dirk who was later found to be Ibrahim Dimson from Bronx in New York was getting the information from the company’s international brand director in Atlanta, Joya Williams. This was a big blow for the company since employees are expected to protect intellectual property and not breach confidentiality.   

Ethical Dilemmas

One of the ethical dilemmas faced by the company is that of competitive issues. Coming up with strategies that will help the company increase its market share and maybe dominate the market is beneficial to the shareholders who have invested in the company and thus require higher value for their invested money. However, Coca-Cola being based in Europe requires understanding and implementing the anti-trust laws in the country in which a company should consider its market share when going for mergers and acquisitions. This is the reason the company was denied acquiring Orangina and Cadbury Schweppes because of fear of dominating the French market. The same case was evidenced in Italy as a result of the company’s anticompetitive prices. Coca-Cola was also accused by Virgin and PepsiCo of excessive use of discounts and rebates to gain a large market share.   

Increasing sales of a company is ethical and thus should be pursued. As earlier noted, any profit-making organization should come with any strategies that would help it increase sales and thus remain successful in the market. However, some strategies of increasing sales are unacceptable (Jennings, 2014). This was evidenced in Burger King Market Test in which Coca-Cola entered into an agreement with Burger King to promote Frozen Coke as children’ snack. Customers were to be given free frozen coke after purchasing value meals from King Burger. This was considered fraud after investigation and cost the company a total of $30.54 million. It also led to negative publicity, loss of trust by stakeholders, and criminal investigations among others. 

The issues/dilemmas you identified was the most significant.

The most significant issue was that concerned with contamination scare in which several people fell sick after consuming Coca-Cola products. This ethical issue put the lives of the customer’s at stake and was indeed a great scare

I consider the issue that isconcerned with contamination scare the most significant because of a number of reasons. To start, it is evident that it was not a one-time incident. It started in June 1999 when 30 children in Belgian fell ill after consuming the company’s products. This led to a decision by the Belgian government that all Coca-Cola products be recalled. A similar incident was reported in France after over 100 people fell ill for taking the company’s products. This led to the decision by the government to ban all Coca-Cola products till the problem was fixed. After a short while, Bonaqua shipment to Poland was contaminated with mold. In each of these incidences, the company took some time before making formal comment on the issue. Additionally, upon commenting, the company considered the situation minor instead of acknowledging its severity. This was ignorance on part of Coca-Cola since the incidences had customers’ lives at stake. Further, the report by the media on the slowness to act by the company was detrimental to the company’s reputation. The risk the products had on customers’ health and lives required time to gain the customers’ trust back. This was a great issue that could negatively affect the market share of the company considerably.

The steps Coca-Cola should have taken to prevent the issues you identified from arising in the first place.

There are several ways of preventing both ethical issues and dilemmas from happening.According to Hiduke and Ryan (2013), there are five major strategies in preventing ethical issues. The first strategy involves developing a workplace policy that is based on the company’s philosophy, code of conduct, and the rule of law. All the employees at Coca-Cola should be aware of the policy and be informed that they are accountable for their actions and decisions. This is followed by provision of ethics training to all employees so that they are aware of what is expected of them. There should also be an ombudsperson in charge of workplace ethics responsible for handling ethical issues faced by employees. In addition, Coca-Cola should research and understand the country’s laws before engaging in illegal acts that will land it in problems. Lastly, the company should ensure that the workplace ethics is applied in all the levels of the organization.

As noted by Ferrell and Ferrell (2014), Coca-Cola Company should have prevented the ethical issues faced through a number of ways. To start with, before engaging in any action or decision, the company should ensure that it is legal. The company should consider the actions that were against the antitrust laws before engaging in them and determine the effect this would have before the eyes of the law. The company should also consider the morality of its actions such as channel stuffing and the Burger King Market Test. It should consider how others will react once they learn of the actions taken.

How Coca-Cola responded to the crisis and determine if this was the best possible response or not. 

Coca-Cola responded differently to each of the ethical issues and dilemmas experienced. On the issue of contamination scare, the company was very slow in making formal comments to the problem even though it was repeating itself. In addition, the company considered the issue a minor problem even though it involved the health of the customers. When the company was ordered by Belgian government to stop its marketing campaign, the company still continued thinking that the campaign will help it win consumer trust. This was acting contrary to Belgium’s antitrust laws and was thus not the best response. On the issue of competitive issue, the company did not understand the laws in France on dominance and anticompetitive prices. On the issue of racial discrimination, Coca-Cola responded in a great manner when it created a diversity council and paid for the lawsuit. However, the fact that it denied the allegations was not a good response because they were based on facts that the management had known for long. The same response was evidenced in the King Burger Market Test in which even though the company paid for the lawsuit, it denied the allegations like it always did. The company similarly denied the allegations placed by the unions regarding the families of the employees who got injured at the workplace. Nevertheless, the company had a good response for the issue of channel stuffing. It agreed to the allegations and vowed not to engage in the practice again. The company also created a compliance and ethics office that would verify that the financial reports were accurate. The company also agreed to cut on concentrate stocked by international bottlers.

Best possible response or not? 

Considering how Coca-Cola responded to the ethical issues and dilemmas, it can be argued that it was not the best response from them. When ethical issues are experienced in an organization, the first thing would be to accept responsibility and their severity. It is notable that even though the company paid the involved fines, it did not accept responsibility of any of the consequences. In fact, the company did not agree to any of the allegations made. In addition, it is expected that the company formal comments regarding the made allegations are made in a timely manner before the media draws its own conclusions. Since Coca-Cola acted the contrary, it follows that the made decision was not the best in most of the faced ethical issues.

 

 

References

Ferrell, O. C., & Ferrell, J. F. (2014).Business ethics: Ethical decision making & cases. New York: Cengage Learning.

Hiduke, G. P., & Ryan, J. D. (2013).Small business: An entrepreneur’s business plan. Mason OH: South-Western.

Jennings, M. (2014).Business ethics: Case studies and selected readings. New York: Cengage Learning.

Laasch, O., & Conaway, R. (2014).Principles of responsible management: Glocal sustainability, responsibility, and ethics. New York: Cengage Learning.

Yukl, G. A. (2013). Leadership in organizations. Boston: Pearson.

 

 

 

 

 

 

 

 

 

 

 

 

Subcategories

case study sample