THEORIES OF MANAGEMENT 14
Inmany cases, remuneration of CEO’s often depends on the size of theorganization, as well as personal performance of the individual.However, some organizations do not follow these conventional rules.Instead, they determine company executives’ compensation rate onother factors such as experience, and availability of labor. As aresult, this essay hypothesizes that the remuneration packages forthe CEOs does not only depend on the size and personal performance ofthe company executive.
Accordingto Theo and Lublin (2014), remuneration for directors in largecompanies is increasing fairly. However, the awards are pegged on thefuture prospects of the business, as well as its present financialposition. Nevertheless, the authors claim that “The Wall StreetJournal`s annual compensation survey” discovered that only a fewCEOs receive very high remuneration. In addition, the compensationfor the topmost executives does neither depend on the size of theorganization nor its performance (Theo & Lublin, 2014). The 2013study was based on the remuneration of CEOs from 300 big US basedand publicly traded businesses. The report asserted that the top 10%of the highest paid CEOs accounted for 23% of the averageremuneration of the average earnings. On the contrary, 30% of theCEOs at the bottom accounted for 13% of the total compensation sum.The leading ten CEOs received compensation of approximately $420million dollars, with the highest values either paid in the form ofstock or cash. The pay increased by a median of 5.5% across thestudy. The increase is similar to $11.4 million and about 75% of theamount was based on the performance level. The report named LarryEllison (Oracle Corp), Leslie Moonves (CBS Corp), and Michael T.Fries (Liberty Global PLC’s) are three highest paid CEOs (Griffin,2013).
Thearticle is associated with the theory of power in the workplace asdiscussed in Chapter 14 of Grisffin’s “Management” book.Griffin (2013) asserts that the compensation level increases as thepower of a person rises. On the same note, the author asserts thatthe power of an individual is directly proportional to productivity,information, and position in an organization. Human resource managerstend to recruit and promote individuals depending on theirperformance level, as well as their experience. The chapter evaluatesessential factors including things that help in attracting skilledlabor. One of these factors includes competitive remuneration. Thehigh paying corporations attract many high skilled and reputablecompany directors with capacity for delivering outstandingperformance within an organization (Theo & Lublin, 2014). Thefact that some organizations allocate high remunerations to theirCEOs than other bigger, and better performing businesses could bepaying their employees, is attributable to the logic of attractingexperienced business executives. In fact, several small businesseswith relatively good performance often set high salary for CEOs toattract experienced professionals who have worked for the big andwell performing businesses. Second, the chapter claims that the humanresource compensation depends on experienced labor supply. In casethere are few skilled company executives that are suitable forfilling a given position, the company management is likely to provideattractive compensation to the CEO position in order to attract andretain an experienced professional (Griffin, 2013).
Insummary, chapter fourteen of Griffin’s book is related with Theoand Lublin’s article on CEO pay hike as both are based on humanresource management in an organization. Theo and Lublin (2014)focuses on the recent considerations affecting remuneration of staffmembers. On the other hand, Griffin (2014) evaluates criticalmanagement theories influencing compensation of business executives.
Theo,F. & Lublin, J.S. (2014). “CEO Pay Rises Moderately a Few ReapHuge Rewards.” WallStreet Journal.
Griffin,R.W., Management(2013) South-Western, Cengage Learning, Mason, OH
GlobalizationProcess Of Toy Company
Manylarge corporate companies often operate at international level. Themain advantage of globalization of an enterprise is market expansion.In addition, it allows distribution of an organization’s resourcesinto different countries, thereby reducing an organization’svulnerability to severe negative effect of a sovereign nation’seconomy that may result from various human or natural factors such aspolitical instability or an earthquake respectively. Severalbusinesses are often willing to expand internationally, but lack ofexperienced personnel obstructs them from executing the plan. Thefollowing essay is a summary of efficient steps that a CEO of anupcoming toy company should consider when preparing to globalize thebusiness.
Thefirst step the CEO of the upcoming toy company should do isinvestigating the condition of the new market. The executive canaccomplish the mission through reading available literature regardingthe potential market prior to starting operation. However, since toyindustry is a quite complex field that may require effectiveunderstanding of population distribution and culture of the people,hiring a local consultant or collaborating with an established brandin a new market improve chances of the new company gaining advantagefast in the international market (Griffin, 2013).
Second,the firm would require hiring an international staffing service. Thestaffing agency will help the organization to meet the employment andremuneration requirements of employees in different countries easily.On many occasions, international companies often experiencechallenges with employees since labor regulations differsignificantly from one country to the other (Griffin, 2013).
Third,the CEO should ensure to create a strong brand and quality productsthat will compete effectively in the international market. Forexample, the toys can be reengineered such that they can speak indifferent languages such as English, Spanish, or French among otherlanguages (Griffin, 2013). The respective language incorporated in atoy should depend on the target market. High quality products, aswell as unique proposition, such as branding and logo, can help inenhancing the quality of the product (Sparrow et al. 20004).
Whenmaking the critical decision of shifting the operation of the toycompany to other countries or continents, the CEO should stress onproduct-specialization. This implies that the executive should onlyshift entire production processes for specific production processesto low-cost regions and strategic places that would facilitateconvenient exportation of toys to distinct consumer markets. Such ascenario facilitates enable different locations to startconcentrating in diverse components, as well as trading in completesupplies (Sparrow et al. 20004).
TheCEO should structure the business such that it would attain valuechain disaggregation. The arrangement is vital for achieving anefficient-supply chain infrastructure. During this phase, the CEOsbegin breaking down production procedures, as well as allocateresources in the most beneficial locations. This implies thatseparate components intended for constructions of the toys can bemanufactured in different locations in the country, and thentransported to a central assembly point (Sparrow et al. 20004). Forexample, a plastic manufacturing department of a toy could be locatedclose to the plastic processing or storage to facilitate convenientaccess to the products. On the other hand, the fabric-manufacturingdepartment may be located in another location that is close to agarment processor. In addition to raw material access, the CEO maydecide to base its operation centers in different locations tofacilitate convenient labor supply (Griffin, 2013).
Insummary, a CEO planning to expand internationally should start byhiring the services of local consultants and international staffingagency. The consultants assist in determining feasibility of a newmarket while staffing agents ensures to promote competent employees,respect local labor regulations. The other key globalizationobjectives include shifting the operation, as well as value chaindisaggregation.
Griffin,R.W., Management(2013) South-Western, Cengage Learning, Mason, OH
Sparrow,P., Brewster, C., Harris, H. (2004). GlobalizingHuman Resource Management.Psychology Press.
Managinginterpersonal Relations and Communications
Collaborationand communication with other employees at work is crucial.Friendships in the workplace have a central role and leads to variousconsequences to both the individual employees and the organization.Good relationships in the organization play a significant role inpromoting productivity through effective supervision, social supportand smooth flow of work. “Personal friendships have no place atwork” is an argumentative statement where some may considerpersonal friendships at work as disastrous, while others argue thatthis may not be bad at all.
First,I strongly agree with this statement that demonstrates how it is wiseto separate personal and professional lives. Generally, personalfriendship has been perceived as delicate and negative aspect withpossibility of liability for parties involved as well as theorganization. Personal friendship more often than not interferes withthe performance, and this has led to many management expertssuggesting that friendship of any kind at work should be set aside.This is for the main reason that it becomes hard to discipline andgive direction to a close subordinate. Therefore, if personalfriendships take priority over performance this may be detrimental tothe organization (Hodgetts & Hegar, 2008).
Onthe other hand, personal friendship can raise claims of favoritismthat can damage one’s careers as well as professional credibility.Alternatively, personal friendship with customers is a bad idea whichincreases the risk of conflict. It is crucial that a customer view amanager as a professional, thus draw strict lines between them.Friendships at work are complicated and can make matters worse orcause tensions. This is because the manager may give advice on issuesthat are job unrelated to a subordinate friend, because of theexistence of blurred lines between them. Simply, personal friendshipat work may break many businesses because it is difficult to separatework-related disagreement from personal relationships (Griffin,2013).
Alternatively,I disagree with the statement because if handled correctly,friendship at work may not necessarily complicate any workingrelationship. As a matter of fact, the closeness may bring morepositive results to the involved parties. The benefits of personalrelationship at work include improved communication and productivitywhere the concerned parties are more likely to understand eachother’s value and ideas. Secondly, positive friendship at theworkplace may create a platform for support during hard times. Evenwhen one is pressured by a difficult project, friends can offersupport and help. Personal friendship can be a tool of competitiveadvantage regardless of favoritism claims, where one can easily bepromoted because of possessing good relationship skills (Hodgetts &Hegar, 2008).
Insummary, personal friendship at work is inevitable since employeesspend most of their time in the office, and over time, they beginforming friendships with each other. These arguments demonstrate howpersonal friendship can be tagged. Initial arguments show that onemust take caution when selecting friends since they can bringcatastrophic consequences at the workplace. On the other hand,another argument shows that friendships are significant and canprovide support and help in some instances (Griffin, 2013).
Forimproved performance, collaboration and teamwork in an organizationis significant. On the other hand, the right balance should bemaintained because of the existence of both the advantages anddisadvantages of having personal friendship at work. According toexperts, there should be a clear boundary set between personalfriendships and professional relationships.
Griffin,R. W. (2013). Management.Mason, OH: South-Western Cengage Learning.
Hodgetts,R. M., & Hegar, K. W. (2008). Modernhuman relations at work.Mason, OH: Thomson/Southwestern.
Generalbehavior refers to regular conduct that people or society mightobserve in order to live in harmony. Students in a classroom alsohave general behaviors that may vary depending on the relationship ofthe concerned persons. For example, the teacher-student relationshipsignificantly varies from student-student relationship. The objectiveof the following essay is describing behavioral norms that we followin our management class.
Inmy class, the instructor has classified us into three independentgroups. Each time we have an issue to discuss, everyone knows thegroup he or she should join. Besides, we have strict ethics that wefollow during discussions. Everyone is supposed to have a notepad forrecording essential points. We have a designated leader for eachgroup, who also doubles up as a spokesperson. In case we needassistance from the tutor, we send the group representative toexplain to the teacher our challenge.
Anothernorm we observe in the management class is switching off phonesbefore the lesson begins. The instructor claims that phones makestudents lose focus from the lectures. Although only a few studentswere often caught browsing or chatting in the social media duringclass time, the instructor claimed that no student would be allowedto take notes or even have a cell phone or tablet switched duringclass time, except when he has stated otherwise. The instructor is sostrict on every student ensuring to switch off the phone such that heexecutes a 10% marks deduction on every student at the continuousassessment tests. The assessment tests are significant as they arecompiled to determine a student’s final score at the end of theyear. The tough punishment has made at least most of the studentscomply with the regulation of switching off their phones and theelectric gadgets prior to the beginning of the classroom (Griffin,2013).
Third,the professor emphasizes on punctuality. He urges us (students) toarrive in the classroom up to an hour earlier than him so that we candigest on the previous lessons. In addition, he normally informs usin advance about the next topic that we will cover in the classroomso that we can familiarize ourselves with the content. On the samenote, the instructor has a habit of getting to the classroom or anyother venue the management class is meeting before the designatedtime. Students who fail to arrive on time are often punished areforced to attend lectures when standing, or in extreme cases thelecturer may deny them permission for getting into the classroom(Griffin, 2013).
Lastly,the instructor believes in written assignments. He does not giveaudio tests since he says that they are not beneficial, and humanmind retains little information when information is disseminatedthrough spoken speech. However, written tests improve mind retention,and it combines physical action, as well as keeps future reference(Hechter & Opp, 2011).
Theregulations are applicable to all the students within the classroomso the instructor can punish anyone if he has evidence that thestudent has breached the code of conduct. The punishment may includeexpulsion out of the classroom for the entire lesson, or in extremecases, a student may lose exam points at the end of the term formisbehaving during the lectures.
However,many students often break the instructor’s norms, and yet escapewithout being punished. For example, some students still chat andsurf social websites during class time, yet they have never beenpunished.
Hechter,M., & Opp, K.-D. (2011). Socialnorms.New York, NY: Russell Sage Foundation.
Griffin,R. W. (2013). Management.Mason, OH: South-Western Cengage Learning.