Leadership and Governance for Organizational - myassignmenthelp

Question: Discuss about theLeadership and Governance for Organizational Culture. Answer: Ways by which the Board of Governance will prevent unethical behavior in the CEO The challenges that a company faces in the present times for a lot of leadership of companies that has made a lot of management and boards decisions to stand out. Abraham Lincoln once said that nearly all men can in one way stand adversity; however, if you want to test a mans character he should be tested with power. This is a clear picture on what the CEO s position can bring out of a man. The CEO position should be the very important where every decision of the company can be exemplified through this position.. a vital position where transparency, accountability and integrity should be of most importance in the context of governance of a company(Schein Schein, n.d.). The image of the companys chief executive can run into deep and heated waters when media security fast picks up a story on compensation or any other crisis in a company that has been mishandled by the CEO and blown out of proportion. This is done in difficult times of the company and the current environment. The CEOs effectiveness and leadership qualities are shown in time of crisis like in this case. The best case examples for this are the BP case study that showed how media scrutiny and CEOs effectiveness can be affected and the second case is the Siemens Case of accountability and the limits that the Chief Executive has(Ybema, Yanow Sabelis, 2011). However, the board of governance can do a lot to prevent bad and unethical practices and behaviors that can be brought by the CEO. Every company requires good governance and corporate management. Regardless of how big or small company is, corporate governance is important in ensuring ethical and professional practices. Corporate governance measures and effective policy decisions should be every board of governance top agenda besides making strategic decisions. It is important for the board of governance to have the best corporate governance policies that are the reference point for dos and donts of the Chief Executive of the company. The other way in which the board of governance can prevent bad behavior is by ensuring that the CEO is well compensated. In many cases for example the Siemens case, accountability was the main issue. CEOs should be compensated well to ensure that they do not engage in fraudulent activities and bad behavior that may lead to a tarnish of the image of the company. The board determines the compensation in most cases of thee Chief executive, in many companies, they are paid the highest with some going to hundreds of millions annual compensation which includes salaries, bonuses and employees share benefit plans if any. This makes the CEO committed and loyal to the work that he has been given(Alvesson Sveningsson, 2016). There is no right level of compensation of compensation according to Fabiani but there is the appropriate level of compensation. The third point in board of governance decision to ensure that there is high integrity that enables sustainable yet long term performance of a company. Ensuring integrity ensure that the CEO is accountable for every decision he makes and that the company will face media scrutiny if the decisions are not good. Media scrutiny dents the image of the company and will affect negatively the performance(Schabracq, 2007). The board of governance should also set the performance criteria of any organization spearheaded by the CEO. For the company to have good business acumen, the board of governance must have the best leadership qualities who know the visions and mission of the company. In enumerating the companys vision and mission, the board of governance should hire the best CEO who strategically understands where the company wants to see itself in short and long term. Performance targets should also not be too stretching that they make the CEO and the management engage in fraudulent and unethical behavior to meet them. Lastly, the leadership is a quality that every CEO should have to direct the company to greater heights and ensure top heavy regulations of the company. How a CEO should lead by example For good corporate governance, the people must be considered. Good corporate governance is about the people in all level that is the board, management, staff, customers and shareholder. The CEO as the focal point of a ticking company should have be the natural born leader who initiates the company commitment to give the best. A good CEO should by all means lead by example. The behavior of the company is synonymous to the character of the CEO. An example will forever be given of Kenneth Lay of Enron and Tony Hayward of BP due to the collapse of Enron and oil spill to the gulf of Mexico for BP. It is right to hold all the responsibilities to the shoulders of one man at the helm since he bares the greatest responsibility for the company. Some people argue that a good CEO can compensate for a bad board decisions but a good board can never compensate for a bad CEO. So the leadership of the CEO should be scrutinized and interrogated for the best decision. Siemens was dogged by many allegation of bribery which had tarnished its name beyond repair. However, one man took over and the effect was largely felt. Peter Solsmenn had worked as a senior manager for GE, but when he was hired to held Siemens a committee was talking all the decisions and accountability was least. Peter changed all this because at GE the man at the helm, CEO, took all the decision(Schabracq, 2007). It was clear that lack of accountability was driven by many people making the decisions. Peter changed all this where he made all the decisions and ensured that Siemens public image was salvaged. Peter once said th at some of the decisions must outright be made by the CEO. CEOs can never relax and are at all times the leaders and role models to lead by examples especially in times of crisis. In leading by example, the CEO must be transparent and all the decision made public to avoid a lot of questions as to why he did that. He will be asked to account for many decisions that were made. The answers presented must be transparent to simultaneously balance to objectives of the company. The first objective is to deliver a very consistent and uniform message as to why a company made its decisions. The second objective is to deliver a message on what the company does to any person with questions. By leading the company, the CEO must leverage on the importance of the employees and their loyalty. The general feeling of any employee of a company is to feel wanted and respected and will give maximum output. If a CEO can do that they will get the best output and will hence make the best out of the employees. Good compensation to employees and the CEO is also part of the company strategy if they have to show loyalty to the company(Schabracq, 2007). A CEO should also set limits for the company to achieve. The employees should note allowed to behave as they will. Stern warnings and actions like suspensions and sacking. Top companies in the world have different ways of dealing with employees in behavioral terms. Some set the rules of engagements on policy issues like expenses and gift policies. It is the role of the chief executive to say this are the rules and they must be followed. The behavior of the employees help set the behavior of the society as they integrate with other members of the society. However, a directionless CEO will not know how to set the rules to the employees and the steps taken to improve the general engagement with the employees. There are various theories of leadership that may be employed by various CEO. The first theory is Authoritarian or dictatorial theory of leadership. In this theory, the CEOs word is final. His word is law and he makes all the decisions in the organization. This has its pros and cons in that there are no question that may derail . it is also called the great man theory. The second theory is the participative theory. This one, the leader allows everyone to participate in leadership and decision making in an organization. Here the employees feel great to contribute and will sometimes give their all in the company due to their sense of belonging attitude. Its con however is that it may take time for a group to decide before making a decision. It requires dialogue and communication before anyone takes a major decision. Other forms of leadership theory include transformational theory, contingency theories, transactional theories, participative leadership, behavioral theories and trait theories(Ashkanasy, Wilderom Peterson, 2013). Leverage of employees loyalty by the CEO Loyalty is everything. Loyalty gives someone a sense of purpose and a sense of belonging. When an employee is loyal to the company, he tends to give extra thus benefiting the company. Loyalty however can be inculcated through the following Organization climate A CEO must make the climate conducive for employees to enjoy their work. It is the business environment of an organization that is observed by the staff and greatly influences the performance and actions of the staff. It is also known as the corporate climate. A CEO may conduct surveys within the organization in order to promote the aspects that enhance a good corporate climate leading to a good job performance. Organizational community Like any other community, organizational community is a set up that makes the organization and the people that make it. For example, in a community the head is the community leader, in an organization the head is the CEO. The management and the staff form the remaining part of the organization community. A good CEO will create a good community in order to enhance loyalty(Driskill Brenton, 2011). Teamwork An organization is a team. A good team forms a very formidable workplace. Many organization work in teams as teams lead to integration, create synergies and effectiveness within the organization. CEO of a company will ensure that there are strong teams that drive the agenda of the organization which includes the vision and the mission of a company to the desired levels. Loyalty is enhanced through team building and building of strong teams(Ashkanasy, Wilderom Peterson, 2013). Diversity Every employee brings a unique and strong character in an organization and that is the sole reason for hiring them. There are different departments within the organization and employees bring in different set of skills to the departments. Diversity in personality and skills creates what the company wants. A CEO should also reward individual skills that are diversified. Cultural diversity and personal traits also lead to different diversity within the organization and are therefore rewarded by the CEO(Mallin, 2016). Flexibility This is the process of blending easily within the organization without hardships or with ease. Many companies demand flexibility from their employees either in their time of work, skills and many other valuable traits that may help the organization. For there to be flexibility, an employee may be required to perform different tasks which are different from the common or usual function. An IT guy may be told to step in the environmental department for a little training in the field. This enhances employee loyalty especially if it is driven the he companys CEO. Organizational culture These are the values, principles and beliefs that govern the organization community. It represents such factors such as the product that the organization is producing, the history of the organization, the market, the type of employees employed, the strategy by the organization, the management style and the vision of the company. The collective values of the company should be the factors that a CEO should put in place for loyalty(Alvesson, n.d.). References Alvesson, M., Sveningsson, S. (2016). Changing organizational culture. London (GB): Routledge Taylor Francis Group. Alvesson, M. Organizational culture. Ashkanasy, N., Wilderom, C., Peterson, M. (2013). The handbook of organizational culture and climate. Thousand Oaks: SAGE. Driskill, G., Brenton, A. (2011). Organizational culture in action. Los Angeles: SAGE. Mallin, C. (2016). Corporate governance. Oxford: Oxford University Press. Schabracq, M. (2007). Changing organizational culture. Chichester, England: John Wiley Sons. Schein, E., Schein, P. Organizational culture and leadership. Ybema, S., Yanow, D., Sabelis, I. (2011). Organizational culture. Cheltenham, UK: Edward Elgar Pub.