August - 01, 2011
Management & Leadership Paper
Tyco International Ltd. is a global company with great diversity and it provides many essential products and services to customers all over the globe. With more than 100,000 employees worldwide, Tyco is a leading provider of electronic security products and services, fire protection and detection products and services, and valves and controls. The company provides thousands of products and services vitally important to customers around the world and their ingenious products range from electronic security and alarm monitoring to fire-fighting equipment and breathing apparatus, water purification and flow control solutions. Despite the weak economic conditions that persisted globally throughout fiscal 2010, Tyco says its teams performed well. They attribute this to being ‘disciplined in cost focus, delivering solid operating results and improving financial strength and flexibility while actively funding a range of targeted growth opportunities. (www.tyco.com, 2011)’ Tyco continued to generate strong cash flow and improved their working capital, finishing the year with $1.8 billion of cash. This enabled them to invest in their businesses, make selective acquisitions and return capital to their shareholders. The company actually completed a $1 billion share repurchase program and authorized a new $1 billion program. It is important to note here that the strong, well planned discipline that Tyco utilized as an organization allowed them to optimize their financial resources, even in a bad economy, so much so that they were able to return capital to share holders and authorize a share repurchase program of up to $1 billion. In a time where most companies are going under due to consumer spending and a weak economy made worse by a prolonged recession, Tyco not only made profits but they managed to make acquisitions thus optimizing their financial resources. Management and leadership at Tyco
One of the main things that Tyco is renowned for is its leadership and strong managers. Often there is confusion about what the difference between the two is. Leadership and management are ‘two opposing styles of employee supervision actively used within today's business world (Bateman & Snell, 2009).’ Management and leadership are both vitally important. To highlight the need for more leadership is not to minimize the importance of management or managers. But leadership involves unique processes that are distinguishable from basic management processes Leadership provides the vision of the end result. It operates in a trust based environment. Leadership creates an accountable team environment by passing the torch of success on to others. Each individual relies on the team for trust, support and enthusiasm to reach their vision. A complete team is much more successful under a unified vision than an individual manager in today's marketplace where the competition is so intense. Whereas management must deal with the ongoing, day-to-day complexities of organizations, true leadership includes effectively orchestrating important change. While managing requires planning and budgeting routines, leading includes setting the direction and creating a clear vision for the company. ‘Management requires structuring the organization, staffing it with capable people, and monitoring activities; leadership goes beyond these functions by inspiring people to attain the vision (Kumle & Kelly, 2006).’ Great leaders keep people focused on moving the organization toward its ideal future, motivating them to overcome whatever obstacles lie in the way. Tyco places a lot of emphasis on training its managers to be good leaders as well. Their bi-annual training has several workshops where they emphasize that being a manager does not make you a leader; that being a...