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Johannes Linden is the Director of the Washer and Dryer division of Fluss, a large Swiss appliance manufacturer. Post deciding the revenue projections and bonus targets for the upcoming year, Linden shares some good news with his leadership team, the Global Executive Committee (GEC): an internal R&D effort to develop cheaper steel for the company's products has finished a year ahead of schedule.
This will translate into a significant (10-15%) reduction in costs across the division for 2011.
When Linden proposes readjusting revenue expectations and sales targets accordingly, he is surprised to find that the GEC does not agree with him. Among other issues, employee bonuses are involved. Linden, with a reputation for being open and knowledgeable yet sometimes intimidating, tries to convince the committee to come around to his way of thinking.
Belief: Complacency is a hurdle to the great opportunities and plentiful challenges of a business environment in an unprecedented flux of Economic and Cultural states.
Too impatient and wanted to infuse aggressiveness in decision making. Open and Collaborative Planner and Executor. Polite, yet firm : One-more-chance-guy. Highly participative. Benevolent - Autocratic
whether or not to change the business plan for each country to reflect these changes. if they should change the bonus targets for FWDs Regional Directors and Country Managers as well.
If
Decide
Targets were to be changed, what would be the New Bonus percentages. [whether based on old targets or new targets]
Define the symptoms of the problem being faced. Cause Effect Analysis Solutions
People are only buoyant because of FWDs profitable position. Management was targeted at just being self- satisfied. Slow decision making. Decentralized structure and Individual Accountability- Missing team work.
Each SBU responsible for its particular market segment. Each Region had separate projections in terms of Profits, Revenues and Market Share.
CAUSES
No need based working by GEC members. No Common Goal among the GEC members. Diverse & Non-overlapping goals of RDs and CMs.
EFFECTS
As far as the Organizational Behaviour model is concerned, FWD needs to adopt a Systems Approach along with Collegial model.
Currently, the partial Custodial and partial Supportive model needs to facilitate this change for better outcomes. Adopt a centralize structure, along with consolidation of business activities.
Motivation:
Redefine the growth needs of the GEC members. Money is an external reward, so it cant stimulate internal motivation. Provide them with a sense of Achievement.
ALTERNATIVES (CONTD./-)
Being the Leader, Linden should define a Common Goal for the GEC.
Self-efficacy of members will increase. Each will contribute depending on his skills. A Team culture would develop. Pschological ownership, passion and organizational goals.
commitment
to
Bonus policies can be integrated with incentives: monetary and non monetary, which would boost up the motivation level of the employees. This would enhance the over all performance of the company.
HOW TO IMPLEMENT
Flexibility is the only strategy for survival and growth for FWD and Lindens team.
Linden being the Leader should Centralize decision making and hold the 9 RDs and CMs as part of a Core Group.
This will instill in them Team Spirit and ignite their inherent passions to make Trade-offs for the Organizational goal. Time frame: 6-8 months. Monitoring: Weekly. Appraisal: 3 months.