A changing business environment presents enormous challenges as managers and employees strive to adapt to new operational procedures. Adjustments are difficult, especially during a business take over, because this could create a conflict between the distinct business cultures of organizations involved. Effective management and leadership are necessary to manage the change process and ensure the organization meets goals such as quality production. In this paper, I review the problems arising from the takeover of 'Retro' by 'Aroma', such as declining sales, and reduced staff and customer dissatisfaction. The paper evaluates the current management and leadership practices, business culture, and quality control, to investigate their contributions to the challenges resulting from the 'Retro' acquisition. I will also make recommendations on how to overcome ongoing problems through effective change management and quality control systems.
Concepts and Functions of Management and Leadership
An understanding of management and leadership roles in an organization is essential in ensuring a smooth transition during takeovers. Although managers and leaders differ in various aspects, they both share the responsibility of fostering collaboration among various stakeholders to promote the realization of organizational goals (Algahtani 2014). Conceptually, a manager holds a position of power in the organization's administrative structure. This role ensures that the company's systems operate efficiently to create an environment in which employees can perform their duties productively. On the contrary, a leader is an influencer who does not have to be in a position of authority. According to Alghatani (2014), while managers create an enabling environment and provide authoritative direction, leaders inspire employees to follow the company's vision with the aim of achieving long-term goals. A manager can provide leadership by creating a close working relationship with subordinates.
Aroma managers failed to provide democratic leadership during the transition process. For example, the business owners only directed a change in the product formulation. Managers instructed production personnel to create new products from the factory floor. This was not effective in stimulating them to adopt the vision proposed by the new business owners. Some employees resigned, while the product's quality diminished leading to customer discontent and the eventual sales decline. The marketing manager exercised autocratic leadership by randomly assigning staff to a commission based selling system. According to Lopez (2014), a manager uses formal authority and status to control subordinates while a leader influences others through visionary behavior. The use of administrative power to align employees with the new business vision failed to produce the intended results because employees were not motivated to follow the new routine.
Business Culture and its Effects
Business culture relates to the established methods that are observed by employees as they interact and perform their duties in an organization, and depends on the core beliefs and practices of the workplace. An organization's culture can have positive or adverse effects on business outcomes. Company customs that promote employee involvement in decision-making and transparent policies experience increased sales and customer satisfaction (Pontefract 2016). This is because the staff in these organizations identify with the company's goals, which enhances their commitment and sense of responsibility towards the attainment of the organization's vision. On the contrary, businesses that do not involve employees in policy formulation are likely to suffer a performance decline due to staff demotivation. This is because the workers perceive managers as impersonal authority figures, and are therefore likely to rebel against official policies.
Aroma's business culture does not appreciate employee contribution in the formulation and implementation of critical policies. For example, managers decide to modify the production and marketing strategies without adequately consulting with employees to explain the new business direction. This caused disagreements between the employer and the workers, causing some of them to abandon their jobs. Promoting effective workplace policies is essential in ensuring employees feel esteemed by the company (Tedla 2016). Aroma should improve its organizational culture by ensuring that employees are enlightened on major changes to existing business practices. The company should encourage workers to contribute ideas towards the new vision, and subsequently implement these views. This model will encourage constant communication between managers and employees, which will improve employee performance because they will understand and adhere to new company policies.
The Role of Management and Leadership Styles
Management and leadership influence the attainment of business goals through various approaches. The use of effective management and leadership styles is crucial in ensuring that employees embrace the company's vision. Techniques that do not promote a favorable working environment will diminish the organization's growth due to decreased employee performance (Lopez 2014). Managers commonly employ autocratic, democratic, and transactional leadership styles. In autocratic leadership, the manager is the only individual responsible for making key decisions. This style does not allow employees to contribute to policy development even if they have ideas that could influence the company positively. Under democratic leadership, workers are free to contribute to the decision-making process, although the manager selects the final policies. Transactional leadership involves an authority-submission dynamic, where workers must follow the manager's instructions to be rewarded instead of punished.
Aroma would benefit if managers exercise good judgment and adopt diverse leadership styles depending on the prevailing circumstances. For example, autocratic leadership is unfavorable in most situations because it encourages the alienation of the workforce from the formulation of major policies. However, this style is essential when the manager has to make quick decisions without consulting, especially under urgent conditions (Amanchukwu, Stanley, & Ololube 2015). Transactional leadership is ineffective because workers perform their duties to obtain a reward and avoid punishment, without a genuine commitment to the company's vision. Democratic leadership will greatly promote the achievement of Aroma's objectives because employees are stimulated to identify with the company's mission.
Management and Leadership Skills
Management and leadership differ regarding the functions associated with the distinct roles. Although managers and leaders aim to influence other people to ensure the realization of business goals, their duties require different skill sets. For example, managers are responsible for the authoritative direction of the company's systems. They, therefore, require technical, creative, and social abilities such as excellent communication skills (Algahtani 2014).This enables them to direct practical aspects of the business such as budgeting and technical production. Social skills are critical in promoting effective interactions in the workplace. Emotional intelligence is the most significant skill that leaders should possess because their roles involve influencing people to adopt specific visions and follow certain courses of action (Lopez 2014). Leaders should also possess positive traits such as integrity, commitment, passion, and creativity. This enables them to inspire a sense of reliability and trust among their followers. Aroma managers should be continually mentored on these skills to equip them with managerial and leadership competence.
Managing Change in an Organization
Change management entails the formulation and execution of regulations that guide an organization's progression to a desired status. This is crucial during processes such as the implementation of new production and marketing practices. Many employees resist the transitional policies introduced by superiors, especially when they view the manager as an authoritative bureaucrat instead of a team player (Fallik 2013). The hallmark of successful change management is the approval of a new business vision by employees. Managers can achieve this through interventions such as effective communication of the change effort, employee involvement in policy-making, and employee training (Zafar & Naveed 2014).
Aroma managers should actively participate in the takeover process to ensure that stakeholders commit to the new business strategy. The owners should effectively communicate the intended change to managers who will then pass this information to employees. The staff should also be involved at every stage of the transition, and their input should be evaluated during the decision-making process. According to Fallik (2013), managers should embrace flexibility and understanding during this stage to encourage workers to keep adapting to fresh modifications. Training increases the workers' confidence in handling tasks and adapting to the changing environment (Zafar & Naveed 2014). Managers should establish a training program for factory staff to equip them with the technical skills required to produce new products.
Maintaining Quality Standards
Quality control entails the promotion of product quality by minimizing factory errors and following established industry regulations. The laws that guide cosmetic standards vary depending on a company's location. Regulatory bodies in the United States (US) and the European Union (EU) oversee the production and marketing of cosmetics in these regions. The EU oversight authority implements policies concerning the safety of products as well as the ingredients used in their production (Basketter & White 2016). Constituent chemicals should be well documented, and they should not cause harm to the consumer. Manufacturers must also provide warnings and instructions for use on the product's packaging (Basketter & White 2016). In the US, ingredients and additives must be approved for cosmetic production (Food and Drug Administration [FDA] n.d.).
Aroma managers should promote the quality of products by implementing mechanisms to oversee the sourcing of ingredients as well as the manufacturing and packaging processes. Production components obtained from various regions should be safe for customer use. Factory staff can ensure this by performing tests on samples to minimize the possibility of producing harmful products (Basketter & White 2016). Managers should establish training programs to instruct staff on the new production methods. They should also facilitate creative meetings among employees to generate ideas on effective packaging systems. The creative engagement of workers promotes organizational unity as all stakeholders strive to produce appealing, useful, and harmless products that will guarantee customer satisfaction.
Developing a TQM System
Total Quality Management (TQM) involves the continual review of all organizational processes so that the business maintains desired excellence standards. This entails the creation and execution of quality policies regarding operations such as production, distribution, and marketing. The primary aim of TQM models is to ensure that the business produces standard products that can guarantee customer satisfaction (Arthur 2017). Quality management unifies a company's operations by encouraging various stakeholders to work together in achieving production efficiency. Effective TQM models also result in lesser wastage of resources and increased sales because cust...
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