Woolworth Management Concept

Topics: Management, Management styles, Leadership Pages: 7 (2427 words) Published: September 27, 2010
Problems with a certain management style

Table of Contents
1.0 Introduction2
2.0 The problems which may result from the management style used 2 3.0 Ideal managerial style for Woolworths – The Company culture 3 3.1 Comparing company managerial styles used, to best suite staff 4 4.0 Recommendations to Roger Corbett’s managerial style 5 5.0 Conclusion 5

1.0 Introduction
This report will analyse a management problem in the case study “The Woolworths’ Management success story” (3) and will identify problems with the previous CEO of the company, Roger Corbett’s management style. This report will argue that the management style used by Roger Corbett during his presences as CEO of Woolworths, may have being extremely successful in terms of growth and profit of the company but among his closest colleagues and front-line staff, his autocratic, uncompromising and conservative management style (3) may have resulted in staff being unmotivated and performing under levels of expectations set out by him. This report will discuss possible solutions to the problem and will talk about the ideal managerial style for any company in today’s world. It may compare Roger Corbett’s management style to his successor Mike Luscombe (current CEO of Woolworths)(3) to help identify the problems and solutions. 2.0 The problems which may result from the management style used

The Autocratic style used by Roger Corbett is referred to as the classical management style. This management style is one of the oldest styles used by leaders and managers, in which they make all the decisions and retain all power and is referred to as a one way communication system(7). Autocratic leaders are known to negatively motivate employees through fear, using front line managers merely to instruct and monitor staff of decisions made by the CEO, leading to resentment, no responsibility or accountability and a lack of experienced middle management. Problems with this management style are:

Firstly, within this style of management, employees are never consulted for their input or ideas. Rather they are simply expected carry out orders and obey command (12). The motivation and performance expected by managers and leaders from staff and subordinates is usually achieved using a punishment and reward system. Secondly, besides the employees, the entry level managers and front line staff are also involved as their only role is to transfer the orders of the top manager to their employees and to carry out supervision. These managers and front line staff have no say in decisions-making. The team's input does not benefit from the creativity and experience of all team members. How have you come upon this knowledge? Should this be referenced or is it personal opinion? Thirdly, the main motivation factor in such autocratically managed companies is fear (14). Employees feel that their effort and abilities are not vital for their employers. When employees feel insignificant to the overall purpose of the company, it may affect the their work in the sense that they will only do and work as hard as what is expected of them and sometime they may do less then what is expected from them reference . This can affect productivity, efficiency and customer service. Furthermore, many employees resent having an autocratic leader and it often leads to high levels of absenteeism and staff turnover (7). Another problem that can arise from an autocratic management style is that all the decision making and power is centralised, putting a lot of responsibility and stress on a single person or management unit. This can lead to many problems like exhaustion and mixed with stress can lead to making the wrong decisions. It may even go as far as effecting physiological behaviour (5). In addition Roger Corbett structured his company according to his management style as a functionally structured organisation (structured according to the different functions, i.e. finance, personnel, distribution,...
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