Flexible Leadership Theory
Abstract
A leader is any person who influences individuals and groups within an organization, helps them establish goals, and guides them toward achievement of those goals, thereby allowing them to be effective (Nahavandi, 2015). Leaders in turn are responsible for the overall success or failure of an organization. Over the years, there have been many leadership theories developed. Flexible leadership theory (FLT) theorizes that businesses implement three key factors to achieve organizational success. These three factors are as follows; efficiency and process reliability, innovation and adaptation, and human relations and resource. Years of research and findings have been combined to develop FLT. These components directly affect a company’s success and lead to happier employees, customer satisfaction, and increased profits. The following case study will assess Costco operations as they apply to FLT.
Flexible Leadership Theory and Costco
Jim Sinegal co-founder and CEO of Costco has a proven track record showing that FTE can lead to the success of an organization. As an upper-echelon leader, he has responsible for the entire organization, with both internal and external focus. His actions affect items such as stock price, stakeholder satisfaction, and overall company performance (Nahavandi, 2015). Costco is a worldwide membership program based company which operates in five-hundred stores, thirty-seven states and eight countries (Yuki, 2010). Their primary focus is to provide quality products at a low price. Efficiency and Reliability
Costco, through many years, has proven itself to be extremely efficient. Efficiency means to decrease costs without jeopardizing quality and safety. Key factors include productivity, operational costs, and cost of sales (Yukl, 2002). Costco has mastered this concept by offering bulk sizes and limiting in store products to reduce inventory costs. Managing inventory is a large concern for organizations. Walmart
A leader is any person who influences individuals and groups within an organization, helps them establish goals, and guides them toward achievement of those goals, thereby allowing them to be effective (Nahavandi, 2015). Leaders in turn are responsible for the overall success or failure of an organization. Over the years, there have been many leadership theories developed. Flexible leadership theory (FLT) theorizes that businesses implement three key factors to achieve organizational success. These three factors are as follows; efficiency and process reliability, innovation and adaptation, and human relations and resource. Years of research and findings have been combined to develop FLT. These components directly affect a company’s success and lead to happier employees, customer satisfaction, and increased profits. The following case study will assess Costco operations as they apply to FLT.
Flexible Leadership Theory and Costco
Jim Sinegal co-founder and CEO of Costco has a proven track record showing that FTE can lead to the success of an organization. As an upper-echelon leader, he has responsible for the entire organization, with both internal and external focus. His actions affect items such as stock price, stakeholder satisfaction, and overall company performance (Nahavandi, 2015). Costco is a worldwide membership program based company which operates in five-hundred stores, thirty-seven states and eight countries (Yuki, 2010). Their primary focus is to provide quality products at a low price. Efficiency and Reliability
Costco, through many years, has proven itself to be extremely efficient. Efficiency means to decrease costs without jeopardizing quality and safety. Key factors include productivity, operational costs, and cost of sales (Yukl, 2002). Costco has mastered this concept by offering bulk sizes and limiting in store products to reduce inventory costs. Managing inventory is a large concern for organizations. Walmart
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