Leadership Issues at Myer
Discuss about the Leadership and Change Management for Financial Outcomes.
Leadership issues is troubling the management of Myer to reach its targeted sales volume. Not only this, lack of effective leadership is lowering the shares price of Myer. It has been observed that ineffective leadership might result in poor financial outcomes. For instance, there has been a declination of 85% since 2009. Its sales volume had seen a drastic dropdown from $2.4 billion to $363 million. From the perspective of (Lozano, Ceulemans and Seatter 2015), lack of stable leadership might result in prevalence of low morale among the employees working at organizations. In case of Myer, employees are suffering from low morale and they are feeling demotivated towards their work. As a result, productivity is getting hampered in the due procedure. In this regard, it can be stated that lack of fruitful leadership is not only lowering the profitability of the respective organization, but also paving the chances for high workforce turnover. In accordance with the opinion of Betancourt et al. (2017), it is seen that ineffective leadership of Bernie Brooks, ex-CEO of Myer had resulted in lowering the prices of shares from $3.76 to $38 c in 2017.
Bolman and Deal (2017) asserted that it is seen that if a company faces problems regarding leadership, then it becomes difficult for the respective business organization to attain the targeted objectives of the respective business firm. In this context, it can be stated that leadership issues of Myer are making it difficult for the managers to attain the specified objectives of the company thereby reducing the overall productivity of the respective organization. In addition to this, employee turnover might increase as a consequence of poor leadership. In this regard, it can be stated that if the leadership is not stable, the it is not possible for a business firm to incorporate change strategy in a proper manner. In this context, Van der Voet (2014) commented that Myer had failed to implement change strategy in its working procedures because of poor leadership. Employees will become confused regarding their job responsibilities if they found that the leader was not at all a good leader (Lewis, Passmore and Cantore 2016). As a result, lack of good leadership is capable of hampering the workflow of the entire organization. This is applicable for Myer.
I have understood that there should be employees need to trust their leader so that they can achieve their career goals. I have noticed that employees working at Myer could not trust their leaders; therefore, they could not meet their targeted objectives. I believe good leadership can aid the organizational employees to perform better thereby increasing the overall productivity of the organization. I can share that good leadership is capable of inspiring the workforce to deliver their best in the organization so that it is possible for the companies like Myer to overcome their leadership issues. In this context, I can share that mutual trust between the employees and leader enables the leader to understand the reasons behind non-attainment of individual goals as well as goals and objectives of Myer.
Impact of Ineffective Leadership on Financial Outcomes
I have gained knowledge that good leadership is capable foot handling any soy of problems that might occur within the teams. I have seen that leader of Myer had failed to tackle issues within the team thereby causing declination in the prices of shares and dropdown in sales volume. I can share that it the responsibility of the leader to communicate the vision t its employees in a clear manner so that it is possible for business firms to attaining the desired outcomes. In other words, I can share that by communicating the vision clearly to its employees, it becomes easier for the leader of Myer to attain the desired outcomes which is related to increasing the sales volume and enhancing the prices of stocks. I have realized that teamwork and leadership are co-related with each other.
I believe that good leaders inspire the team to increase their problem-solving skills rather than solving their problems. In other words, I have understood that a good leader always empowers its team members to sort out their problems rather than giving solutions t their problem. However, I have observed that employees working at Myer do not believe in the words of their leader thereby hampering the overall productivity of the organization. I have understood good leadership makes it easier for the management to retain their employees for a prolonged time span.
This particular theory was created by Thomas Carlyle in 19th century. According to this theory, individuals are either born leaders or they have some traits which makes them a good leader (Pugh 2016). It has been noticed that this theory is generally used for forecasting the fruitfulness of a leader (Lewis, Passmore and Cantore 2016). In other words, it can be stated that trait theory of leadership concentrates on assessing mental, or physical or social characteristics of the person. In this context, it can be stated that the main purpose is to gain an insight on the characteristics of the leader (Daly, Hill and Jackson 2015). It is assumed in trait theory that personal traits of the leader are responsible for achieving success in various circumstances.
It is seen that leader possesses some traits like high energy level, high level of motivation, honesty and integrity (Thomas 2015). In addition to this there are other characteristic features such as high level of self-confidence, tenacity, flexibility, good analytical skills, ability to judge, emotional intelligence, charisma, creativity, openness, etc. these are the qualities that makes a leader stand out from an ineffective one (Sharif and Scandura 2014). It is seen that leaders of Myer do not have such qualities. As a result, declination in share prices and dropdown in sales had taken place. As per the concept of Trait theory, the interests, abilities, as well as personality traits of successful leaders are completely different than that of ineffective leaders. It is seen that good leaders have the ability to undertake quick decisions at times of need (Bolden 2016). According to this theoretical concept of trait theory, leaders possess good communication skills that aid them to share their developed business to the employees and also good communication skills of the leader helps the employees to understand the directions of the leader. It has been found that good interpersonal skills enable the leader to share a strong bonding with the team members. In this context, it can be stated that effective interpersonal skills enable the leaders to share a relationship with its team which is based on mutual trust as well as respect (Gollenia 2016). In addition to this, a good leader possesses emotional stability that helps the individual to control the emotions at times of need.
Importance of Good Leadership for Change Management
It has been noticed that the leader should improve the mode of communication between the him and the employees working at Myer. In this context, it can be stated that communication skills can reduce the chances of miscommunication among the employees. It has been observed that the leader of the respective organization need to adopt an effective marketing strategy that would enable the company to beat its rivals such as David Jones and Kmart. In accordance with the opinion of Bolman and Deal (2017), effective communication can be established by the leader through organizing team meetings. In this context, it can be stated that companies such as Myer can arrange team meetings.
It has been observed that by improving the communication between the employees and the leader, it is possible for the respective business firm to increase the sales volume, which has declined after 2009. However, it is the responsibility of the leader to communicate the vision of Myer to its employees in team meetings (Halkias et al. 2017). In this context I can share that my responsibility is to share my vision with my subordinates. However, these meetings need to be organized by the leader at least twice in a month. Besides, the leader need to improve its communication by allowing its employees to share their opinions in open forums (Van der Voet 2014). I, as a leader would allow my employees to share their viewpoints in open forums. As a leader, I would try my best to improve my relationship with my subordinates. In accordance with the opinion of Hornstein (2015), this approach of the leader would improve the communication between him and the employees. As a leader, this approach would strengthen my relationship with the clients. Apart from this, the leaders need to develop a fruitful strategy in order to sustain its competitive advantage in the existing market. By building an effective marketing strategy, it is possible for the leader to capture a larger market share in the retail market of Australia. As per the trait theory, a leader possesses good communication skills, decision-making abilities. Therefore, it is required for the leader of Myer to build an effective communication plan for strengthening its relationship with its skilled professionals (Johnston and Marshall 2016). I, as a leader should be firm while adopting the economy pricing strategy for its clients. This approach of the leader shows that he is capable of undertaking firm decisions at times of necessity.
Trait Theory of Leadership
I, as an employee can request to my hierarchy for organizing formal meetings. In accordance with the opinion of Sharif and Scandura (2014), formal meetings will help the employees to understand the vision of the business firm. As an employee, these formal meetings will help me to understand the goals and objectives of Myer. In this regard, I can share that formal meetings will motivate me to perform better in the organization as I would get an idea about what I have to do for increasing the prices of Myer’s shares and increasing the sales volume of the respective organization. From the perspective of Gollenia (2016), formal meetings are useful methods, that are used by employers for giving instructions to the employees. In this context, I can share that formal meetings will aid me to understand the instructions of my leader. I, as an employee can request my senior managers for incorporating a communication strategy within the working procedures of the respective organization. In accordance with the opinion of Thomas (2015), communication strategy will enable the management to inform the employees about the vision of Myer. As a skilled professional, I would be able to understand the instructions of my superiors regarding development of marketing strategy as well as pricing strategy. Besides, I would be able to share my perspective in front of my superiors if management considers implementing communication strategies within the environment of Myer. I, as an employee would take this initiative for the increasing the sales volume and enhancing the share prices of Myer. I, as an employee need to request my hierarchy for conducting a personal assessment so that it is possible for me to understand the fact that whether the leader is a good leader or a bad leader.
References
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Daly, J., Hill, M.N. and Jackson, D., 2015. Leadership and healthcare change management. Leadership and Nursing: Contemporary perspectives, p.81.
Gollenia, L.A., 2016. Business transformation management methodology. Abingdon: Routledge.
Halkias, D., Santora, J.C., Harkiolakis, N. and Thurman, P.W. eds., 2017. Leadership and change management: A cross-cultural perspective. London: Taylor & Francis.
Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), pp.291-298.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. Abingdon:Routledge.
Lewis, S., Passmore, J. and Cantore, S., 2016. Appreciative inquiry for change management: Using AI to facilitate organizational development. London: Kogan Page Publishers.
Lozano, R., Ceulemans, K. and Seatter, C.S., 2015. Teaching organisational change management for sustainability: designing and delivering a course at the University of Leeds to better prepare future sustainability change agents. Journal of Cleaner Production, 106, pp.205-215.
Pugh, L., 2016. Change management in information services. Abingdon: Routledge.
Sharif, M.M. and Scandura, T.A., 2014. Do perceptions of ethical conduct matter during organizational change? Ethical leadership and employee involvement. Journal of Business Ethics, 124(2), pp.185-196.
Thomas, T., 2015. Management and leadership for nurse administrators. US: Jones & Bartlett Publishers.
Van der Voet, J., 2014. The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure. European Management Journal, 32(3), pp.373-382.
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