Using a range of management styles to lead a business
For organisations to develop they require a direction. The people who manage the business provide the direction. Taking responsibility for making decisions and running a business well is a skill. Businesses place considerable emphasis on getting the right people with the right skills into key posts. They need to ensure that these people have the opportunities to develop decision-making skills. Enterprise Rent-A-Car (Enterprise) employs more than 75,000 employees and operates a fleet of cars exceeding one million vehicles worldwide. It has become one of the foremost car-hire companies and is the largest purchaser of cars in the world. Jack Taylor founded the company in St Louis in 1957. The owner had a simple belief: ‘Take care of your customers and employees first and profits will follow.’ This belief forms the foundation of Enterprise’s four key business objectives of: • customer satisfaction • fleet growth • employee development • profitability. These four business objectives link together: • Enterprise does not sell a product. It provides a service – the use of a car. To deliver great service Enterprise needs well-trained and motivated staff. As the company grows, it opens new local offices and creates new opportunities for employees. • Customers expect to be treated in a particular way by a service-orientated business. Enterprise uses its Enterprise Service Quality Index (ESQi) to measure the quality of service it provides. Satisfied customers will come back and give repeat business. They may also recommend the service to others. • This leads to growth of the business and greater profitability. This case study focuses on leadership within Enterprise. It shows how its managers use a range of management and leadership styles to support Enterprise’s focus on customers.
CURRICULUM TOPICS • Leadership • Autocratic style • Democratic style • Laissez-faire style
GLOSSARY Business objectives: the ends which an organisation seeks to achieve by means such as budgeting tools and strategies. Service-orientated: when the organisation’s behaviour is centred on meeting customers’ needs. Repeat business: when customers return to use a company’s services again. Leadership: the ability to inspire others in order to achieve an organisation’s goals.
Leadership and management
Management involves control and organisation to get something done. In the course of business, managers use many different skills. They: • plan and organise people and resources • set and monitor budgets • control operations or services in order to meet customers’ needs. The ability to manage is essential at all levels in the organisation. However, for a business to excel, leadership is vital. A leader is somebody who sets the direction and inspires other people. A leader is able to influence others in meetings or when making decisions. This helps to achieve the goals of the organisation. Enterprise has leaders at all levels of its business, not just senior management. Some people are natural leaders. For example, the captain of a school football team will probably have the ability to influence others. Leaders can also develop through training and education.
E N T E R P R I S E R E N T- A - C A R
Leaders are also managers. For example, an Enterprise General Manager leads a regional group of City Managers. City Managers are leaders of their front-line management employees. Andy Taylor, the current Chairman and Chief Executive Officer (CEO) of Enterprise, was a manager for his father Jack Taylor. He carried out the processes and systems his father set up. Today, Andy leads and manages the business. There are many different management styles. These styles influence how leaders communicate with employees. For example, Enterprise operates an ‘open door’ policy. This enables everybody within the organisation to have direct contact with...