This case explores the roles of CEO Rudi Gassner and the 9-person executive committee in leading BMG International. BMG International is the international music subsidiary of Bertelsmann, a German company that is the second-largest media conglomerate in the world. In particular, the case describes a 1993 decision that Gassner and the executive committee must make about whether or not to change managers' business plans and bonus targets as a result of a newly negotiate reduced manufacturing cost. Some of the major and important issues discussed include: the complexities of managing and growing a large global business; the tensions between centralized corporate control and decentralized local management in a global organization; the impact …show more content…
Although Gassner sometimes used authoritarian power to impose his decisions; it would be wrong to call him an autocratic leader. This is because in many instances he had used consultation, participation and delegation in making decisions. For example, when he formed the Executive committee his intention was to encourage his subordinates participate and jointly make decisions on strategic issues.
He had also used delegation of authority as means of empowering his subordinates. His decision to appoint Regional Directors with an autonomous decision making authority in their respective region can serve as a good example of delegation of authority.
3) Evaluation of the Executive Committee Meetings
Basically the Executive Committee Meetings (ECMs) are not effective in achieving their intended purposes. This is not to say that they are a total failure and a waste of time since they have brought some unforeseen advantages in addition to partly achieving their objectives. I would like to point out the strengths and weaknesses of these ECMs.
Strengths
The Executive Committee Meetings have helped to create mutual respect and trust among top level executives.
They have helped to prepare clear business plans for each region and country.
Through the periodic performance review of each region, the ECMs have helped to create a healthy and constructive competition among Regional Directors.
The ECMs have created an
For someone to be placed in a position of authority they should have power and
Autocratic leadership, also known as authoritarian leadership is a leadership style characterized by individual control over all decisions and little input from group members. Autocratic leaders typically make choices based on their own ideas and judgments and rarely accept advice from followers. Autocratic leadership involves absolute, authoritarian control over a group. It can also be derived
Delegation is widely acknowledged to be an essential element of effective management (Yukl, G. 1994). Delegation is basically a process of assigning responsibility, sharing authority, and producing accountability in organizations. It is a managerial instrument that allows managers to nurture subordinates to capitalize the subordinate’s potential and ability to meet organizational goals and objectives. As a form of employee involvement in decision-making, delegation describes a category of leader behavior that entails assignment of new responsibilities to subordinates and additional authority to carry them out (Yukl, G. 1998). Managers usually find it easier to speak about delegation of
To improve the efficiency of how the Capital Committee reviews and approves proposals they need to establish a scheduled face-to-face session (perhaps on a weekly basis) to receive and review all CERs. This will give
meetings to debate issues before making a final decision. In handling routine tasks, he was
*Note: the questions are used as a guide for your memo. This is not an “Answer the questions” assignment.
Throughout history autocratic leaders have exercised authority over their countries and the lives of their people. The actions taken out by autocratic leaders have both helped and hurt their countries and the lives their people. Two examples of such leaders are Czar Peter the Great and King Louis XIV.
In an organization, meetings take place on a regular basis. Today’s organizations are built around people, so interaction among team members, inter-team, inter-department etc. are very common. The meetings cost organization in terms of time, money, and manpower utilization. Hence, effort is made to make the meeting process more effective.
Knowledge, skill, and independent decision making. The purpose of delegation was put into perspective when Corazzini et al.
The third change was the added meetings of subgroups. The Executive Committee was broken into two subgroups to facilitate critical thinking (Janis, 1982). The subgroups would meet separately to come up with a policy decision and would then come back together as one to debate and cross-examine each other’s decisions (Janis, 1982).
All of these factors have a direct effect on the relationship between the board and executive management (American College of Healthcare [ACH], 2004). According to the ACH (2004), neither the board nor executive management can be successful without the other, but together they form an organizational dynamic, robust and strong with mutually beneficial outcomes and optimal performance for the organization.
Autocratic leadership, is a style which is characterized by the individual control over all the decisions and little input from group members. These type of leaders rarely accept advice from followers. These type of leaders tend to be bossy and controlling. Failing to consult with other team members in such situations hurts the overall success of the group.
This paper will attempt to show what skills are necessary for effective delegation, and how the managers of the author 's organization uses delegation in his or her management responsibilities. The paper will also attempt to show how delegation could be used more effectively within the four functions of management in that same organization. Through delegation managers combine task responsibilities and the authority needed to carry out tasks in the organization. The author will also discuss some advantages of delegation as well as the issue of poor delegation.
Executive Management – This group generally reflects the highest level of education and experience, and are predominantly English speakers. They tend to be older in age and have a good understanding of technology, but not at the level of an engineer. Members of executive management must fully understand and
Thusly he was a firm believer that in order for the management to work there must be a certain degree of authority given to one person who would be capable of the responsibility of the task at hand and this person must also be fair but firm so that order could be maintained at all times to reduce the risk of the breakdown of the simple principles of the management system. He believed that every employee should receive orders from only one person higher up on the