Inncrease Profit Margin

Unit 3 Individual Project

May 13, 2006

Business Management and Leadership

Unit 3 Individual Project

My vision or plan would be to increase profit margins by taking several major steps. First, I would focus on the organizational structure, and second on the outdated product line. I would bring management and employees together in a series of two-way decision-making steps. I would take a series of steps to bolster the employees. Team work groups would be employed in order for the employees to be part of the decision making procedure which has been shown to increase employee morale, increase work motivation, job satisfaction and job performance. New product lines would be determined by investigating and surveying customer needs, the competitions, etc. I would realign the employees according to new product lines (cost and differential advantages), skills and experience.

In this organization decision-making is give attention to with the management, roles are narrowly defined, based on content or functional knowledge, and autonomy is limited. In the traditional matrix some functional expertise is "loaned" to a project manager who is charge of a particular product or service outside the bounds of the organization. The project manager often has some fiscal autonomy and control, which allows him or her to pull resources out of the traditional hierarchy, often in a group or team setting, to work on the project.

In the new organization, individual contributors will be organized into teams around a mission or business plan, which may encompass more than one product or service. Each team member will have a role focus, but the task of cross- functional knowledge and expertise are shared so that team members can constantly assist each other and their customers. Each team member is in a role set, and although there are senior managers, team members and customers (internal and external, sometimes termed partners) will interact on an as needed basis--not by rank or protocol.

In other words, the driving principle in the new organization is the customers and suppliers, the decision criterion is consensus and point of contact, the task is information and the orientation is relational (i.e., helmsperson). Meeting the needs of the customer is where the competitive advantage lies. While the future would be uncertain, it appears that My Company is much more likely to have thriving business in coming years than if it had continued on the same path.

Steps to manage the transition from the old organizational structure to the new

I would manage the transition form the old structure to the new basically by changing my style of leadership. Four polar scales have been identified to differentiate traditional leader from the non-traditional leader (which I would be). They are omnipotence/empowerment, rightness/risk taking, face saving/participation, and co-dependency/development, respectively. Based on these characteristics, the following steps would be employed

I would enable others to act on the job and gain their own knowledge.

Omnipotence / Empowerment. Whereas Omnipotence manages based on knowing more than others, where control is the driving factor. Empowerment manages based on enabling others to act on the job and gain their own knowledge.

I would encourage innovation, especially in ambiguous situations.

Rightness/Risk Taking. Rightness refers to the need to manage based on avoiding errors, with fear of failure as the driving factor. Risk taking refers to the need to manage based on encouraging innovation, especially in ambiguous situations.

I would seek input and reaching consensus.

Face Saving/Participation. Face Saving refers to the need to manage based on maintaining a self-protective positive image, and blaming others is the driving factor. Participation refers to the need to manage based on seeking input and reaching consensus.

I would foster continuous learning.

Co-dependency/Development. Co-dependency refers to the need to manage others because of their inferior abilities, rescuing others in need is the driving factor. Development refers to the need to manage based on fostering continuous learning.

I would manage through role efficacy, with its focus on individual performance; organization structure, with its focus on group performance; and decision making, with its focus on process management. These three areas are essential to my new organizational structure. These emerging roles also require a re-evaluation of the skill set or core competencies of the leader. In the new participatory management role, I would manage the transitions by being competent in the following areas:

*negotiating mutual benefit

*facilitating choice

*joint problem solving

*re-engineering business operations