Corporate Governance and Corporate Culture at Magna
Organizations need strong leadership for optimum efficiency. Leadership is identified as a trait which is both inbuilt and can further be attained. With the transient nature of contemporary managers and the ever rising developments in economy landscape, exhibiting effective leadership skills is regarded as highly critical (Choi et al., 2015). The discipline of organizational leadership is fundamentally focused on transferable leadership competencies regardless of any industrial domain or role and responsibilities applicable in managing as well as leading teams (Blomme, Kodden & Beasley-Suffolk, 2015). The following paper will evaluate the leadership and management skills of Magna International Inc, one of the renowned manufacturers in Canada. In addition to this, the paper will explore the threats and obstacles in its external environment of Magna International.
Magna is a company of entrepreneurs which is committed to delivering new and improved mobility solutions. The company believes that strong and determined corporate governance practices are fundamental to fostering stakeholder trust and confidence and significant management accountability. Choi et al., (2015) have revealed that Magna instead of pursuing a conventional mission statement embraces a unique approach by establishing core principles in their responsibilities within their corporate culture. Furthermore there can be witnessed certain uniqueness within the company’s cultural patterns stating that Magna does not have any revenue sharing plans and puts 10% of pre-tax revenues into employee delayed stock plans. Meanwhile Blomme, Kodden & Beasley-Suffolk, (2015) has stated that Magna has been efficiently offering job counselling, knowledge development sessions along with employee assistance programs in order to encourage its employee’s needs and demands of having the most effective fit with the organization. A fair treatment principle promoted by Magna further states that the business organization will only base equal opportunities on the performance level of employees as well as its credentials by sternly disregarding any acts of biasness or discrimination (Magna.com, 2018).
Furthermore, to reinforce the reliability of the employee agreement, Magna has efficiently implemented an individualistic internal hotline accessible to the entire workforce. Through such an efficient internal hotline employees with certain forms of grievances can use this tool to report any form of incompetence of the company (Magna.com, 2018). However in Corporate Constitution, the Magna would require management skills to successfully strive and sustain a minimum profit performance. As per reports by McClintock et al., (2018), Magna’s comprehensive earnings are in $1531 as estimated in 2015. Magna’s management skills further rely on its area of operations management whereby it deals with high quality standards along with quality implementation. Such performance is further based on the level of customers’ expectation as well as automobile market requisites. In such scenarios, Magna’s operation managers employ a wide-ranging set of quality standards for all products with minor differences on the basis of product types, tools and models (Denning, 2016). For example, asccording to Maak, Pless & Voegtlin, (2016) universal quality standards are identified to be practical in relation to the margin of errors as well as quality of raw materials which are used in manufacturing Magna’s automobiles.
Management Skills at Magna
Author stated that the primary objective of Magna is to essentially capitalize on the efficiency of supply chain management by offering resolutions to operational threats and obstacles (Grant, 2016). Such limited accessibility tends to reduce the level of productivity and competence in automobile and part manufacturing. Thus in order to prevent any lack of productivity, managers of Magna has been proficiently implementing strategies which would develop the supply chain management of the company. For example, as per the view of McClintock et al., (2018) programs for transparency as well as cooperation have the propensity to align supplier’s growth and capabilities with Magna’s growth as well as supply needs. Such programs however are incorporated in Magna’s corporate social responsibility (CSR) strategy with suppliers which are considered as a stakeholder group. Meanwhile, reports by (Kowalkowski et al., 2017) reveal that Magna’s supply chain is highly dynamic through a proactive approach. This proactive approach has been addressing several areas of concern which are linked to the factors of external environment in the automobile sector in which Magna operates (McClintock et al., 2018).
Magna with its major business operation in Canada realizes the value of diverse workforce. As per the company, a varied employee base acts as a primary sources of competitive advantages (Choi et al., 2015). Magna’s organizational structure shares a universal characteristic which signifies a support to diversity to create a unified as well as inclusive global cultural pattern. The company according to Blomme, Kodden and Beasley-Suffolk, (2015)efficiently has been positioned among the most varied and diverse automotive business enterprises along with its toughest competitor General Motor. The company has been approaching towards technological innovation in order to accomplish customers’ demands around the world with a range of industry-leading automobiles along with an elevating range of cutting-edge mobility solutions such as car-sharing programs. Choi, Tran and Kang, (2017) have stated that in the global context, organizations can characterize inclusiveness as visible and invisible variations and leadership approaches. Inclusive leadership approach is regarded as an excellence of organizational environment which tends to maximizes as well as control varied talent and skills along with the perceptions of the employee base (Choi, Tran & Kang, 2017). Magna International has been efficiently focusing on establishing a significant culture of inclusion which offers customers, employees as well as community through forms of innovation, talent improvement, and responsiveness and successfully outreach for people who belong to the disability section of the society (Randel et al., 2018).
Relationship between Diversity and Inclusion
Source: (Maak, Pless & Voegtlin, 2016)
However Choi et al., (2015) have noted that through inclusive leadership, the leaders’ role is regarded to be crucial in successfully driving performance in a diverse and inclusive environment such as Canada. Reports reveal that traditional teams which have been created with no specific emphasis or value on inclusion functions at standard levels. Magna as a result due to its inclusive approach experiences elevated threats as well as opportunities. However the company also exhibits high level performance as Magna’s leaders efficiently drives role and performance though inclusive leadership approaches (Blomme, Kodden & Beasley-Suffolk, 2015). Furthermore, essentially focusing on inclusion of Magna International in Canada initiated with efficiently developing forms of cultural agility among the workforce that signifies the ability to efficiently navigate, communicate as well as operate in highly diverse cultural contexts. Booysen, (2014) have further revealed that Magna employees across the company have been engaging in self-driving vehicle design workshops with engineers in order to successfully provide important perspectives on behalf of the disable community.
Supplier Relationship Management at Magna
Political Factor- Magna International recently has been encountering obstacles of governmental promotion of public transport along with other activities. For example, such an external factor tends to encourage customers to use shared transportation such as trains as well as vehicle-sharing programs and potentially reducing Magna customers’ preferences of buying automobiles manufactured by the company (Kowalkowski et al., 2017).
Economic Factor- According to Booysen, (2014) external determinants related to high growth of emerging markets tends to create significant avenues for Magna International operating in the Canadian automobile sector and further extend its areas. For example, Magna can think of expanding its dealership web in other overseas developing markets such as India as well as Indonesia (Javed et al., 2017).
Sociocultural Factors- The socio-cultural factors of Magna creates significant growth avenues whereby the increasing rate of demand for self-driven cars can proficiently leverage growth through sales of such advanced vehicles from the company. For example, ride hailing programs according to Kowalkowski et al., (2017) can enhance customers’ rate of accessibility to highly convenient transportation which can corresponds to a potential decline in target consumers’ preference of purchasing new automobiles from Magna International.
Technological factors- Through technological factors Magna can efficiently emphasize on the value of technological advancement. For example, growing level of implementation of self-driven cars technology tends to offer significant avenues for the company to offer highly competitive Magna automobiles with such great expertise (McClintock et al., 2018).
Environmental Factors- Magna has observed a scope to successfully enhance its hybrid automobiles in order to successfully address the elevating concerns and demands on air quality effects of automotive emissions. Furthermore as per Denning, (2016), Magna International can develop its sustainability improvement reputation along with corporate prominence as well as brand image that is based on the increasing level of interest in the company’s business sustainability.
Legal factors- Magna International in relation to legal determinants indicates to severe emissions regulations as significant opportunities and scopes for the automobile company to improve its manufacturing process (Grant, 2016). For example, integrating advanced as well as emerging safety laws and regulations in product design and manufacturing further ensures high level of compliance and further amplifies the value and significance of Magna International that operates as a renowned automobile company in Canada (Maak, Pless & Voegtlin, 2016).
Conclusion
Therefore from the above discussion it can be stated that several environmental forces could potentially leverage the competence and productivity of Magma as well as its ability to accomplish its mission statement. However while the company has gained success in accomplishing its profits and revenues over time to execute the promises mentioned in the company’s corporate constitution it still remains to witness the approaches Magna will employ to thrive in the automobile sector.
References
Blomme, R. J., Kodden, B., & Beasley-Suffolk, A. (2015). Leadership theories and the concept of work engagement: Creating a conceptual framework for management implications and research. Journal of Management & Organization, 21(2), 125-144.
Booysen, L. (2014). The development of inclusive leadership practice and processes. Diversity at work: The practice of inclusion, 296-329.
Choi, S. B., Tran, T. B. H., & Kang, S. W. (2017). Inclusive leadership and employee well-being: the mediating role of person-job fit. Journal of Happiness Studies, 18(6), 1877-1901.
Choi, S. B., Tran, T. B. H., & Park, B. I. (2015). Inclusive leadership and work engagement: Mediating roles of affective organizational commitment and creativity. Social Behavior and Personality: an international journal, 43(6), 931-943.
Denning, S. (2016). How to make the whole organization “Agile”. Strategy & Leadership, 44(4), 10-17.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Javed, B., Naqvi, S. M. M. R., Khan, A. K., Arjoon, S., &Tayyeb, H. H. (2017). Impact of inclusive leadership on innovative work behavior: The role of psychological safety. Journal of Management & Organization, 1-20.
Kowalkowski, C., Gebauer, H., Kamp, B., & Parry, G. (2017). Servitization and deservitization: Overview, concepts, and definitions. Industrial Marketing Management, 60, 4-10.
Maak, T., Pless, N. M., & Voegtlin, C. (2016). Business statesman or shareholder advocate? CEO responsible leadership styles and the micro?foundations of political CSR. Journal of Management Studies, 53(3), 463-493.
Magna.com. (2018). Home. Retrieved from https://www.magna.com/
McClintock, S. D., Horner, R. M., Krull, B. A., & Pilette, M. T. (2018). U.S. Patent No. 9,937,868. Washington, DC: U.S. Patent and Trademark Office.
Randel, A. E., Galvin, B. M., Shore, L. M., Ehrhart, K. H., Chung, B. G., Dean, M. A., &Kedharnath, U. (2018). Inclusive leadership: Realizing positive outcomes through belongingness and being valued for uniqueness. Human Resource Management Review, 28(2), 190-203.
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