OL 645 Article Anaysis Performance Management

docx

School

Southern New Hampshire University *

*We aren’t endorsed by this school

Course

645

Subject

Management

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by ctomblin89

1 3. Executive Summary Project Phase I: Imagine your company is planning and strategizing for the future and that you have been asked by the executive team to brief them on the state of the risks and opportunities in the industry. Prepare a 2- to 3-page analysis of the Executive Summary by Ernst and Young Business Pulse 2013, along with a review of the Modules 1-5, your textbook, and other research. Your analysis will help the top executives create a comprehensive strategic plan that includes risks and opportunities that could impact employees and other stakeholders. Make sure your paper clearly addresses the following questions: • What are the top legal, safety, environmental, and financial risks and opportunities identified? • What situations are influenced by society, culture, politics, health, safety and security? Connect to Federal and State laws when appropriate. • In the global market, what are challenges businesses face when identifying risk for forecasting?

2 Introduction/ Article Summary Crisis management is defined as “a series or processes to identify, study, and forecast crisis issues, and set forth specific ways that would enable and organization to prevent or cope with a crisis” (Kash & Darling, 1998). Kash and Darling also discuss preventative strategies a business can take such as “strategic forecasting, contingency planning, issues analysis, and scenario analysis”. Also discussed are the four stages of a crisis. The first stage of a crisis is the Prodromal stage where the signs that there is a problem begin to show themselves. The second stage is the acute stage where the problem reaches a point where it needs immediate attention. In the third stage known as the chronic stage, the problem is clear and ever present. The last stage in a crisis is called the crisis resolution stage and is an attempt to solve the problem. Preventative or Intervention of a Crisis In business, failures and bankruptcies are not the intended result of a research and development project and do not generally happen overnight. However, they are more often caused by the lack of attention given to symptoms of a crisis more than any other reason. These symptoms can alert the executives that there is a problem that needs to be addressed. Some of these symptoms include “slipping market share, losing strategic synergy and diminishing productivity per man hour, as well as trends, issues and developments in the socio-economic, political and competitive environments” (Kash and Darling, 1998). Nike In June of 1997, Nike redesigned its Summer Hoops brand of basketball shoes which had the word air written in flaming letters. There were complaints by the Islamic-American Relations which stated that the logo resembled the Arabic word or God or Allah. Global boycotts of the company’s products were threatened. Nike apologized and recalled 38,000 shoes as well as

3 discontinued the entire line (Brindley, 1997). Even though Nike spent a lot of money to create the shoe line, they did not look forward ensuring that any controversies could withstand the scrutiny. McDonalds This is an example of the Prodromal stage of a crisis. At McDonalds, an elderly woman spilled a cup of hot coffee in her lap and caused severe financial losses for the company and tarnishing the company’s image. The company did not pay attention to the symptoms of the problem before it happened to prevent this crisis from occurring. Many customers complained about the temperature of the coffee being too hot before this incident happened. Intel Intel is the maker of computer chips. In this situation, the Pentium chips were proving unreliable on certain calculations. At first, Intel first said that they were not going to recall the chips. However, after the problem had reached the acute stage, the company decided to initiate the recall. Accusations were made that the Pentium chips were not as fast as stated. The company then apologized and recalled the unreliable chips. The examples set by all three of these companies show interventional means of dealing with a crisis (Kash & Darling, 1985). The companies involved did not see the symptoms of the crisis until it happened and then just reacted to the issue instead. There was no prevention because the symptoms were ignored. If the three companies would have planned for worst case scenarios, they could have averted all these crises. In the case of Nike, when looking at the key issue, if the issue was addressed proactively instead of reactively, the risks would change because more time would have been taken to research all the possible pros and cons of bringing out this design on this product line. The

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 company took an interventional approach to managing this risk. The design would have been seen my research groups and someone could have caught the fact that the fiery letters symbolized the Arabic word for Allah. At that point, the design could have been changed before 38.000 pairs of shoes were sold and had to be recalled. The problem with Intel was corrected as well and was preventative in nature when company took control of the situation and took action to control the damage that was created. This did not lessen the losses incurred by intel, but there were ethical decisions made by the company on hoe to handle this situation in a way that was best for the company. Mc Donald’s took an interventional approach to managing this crisis and could have saved itself a lawsuit and financial loss by listening to the warnings that were being given before the cup of hot coffee spilled on an elderly lady when the coffee was too hot. Customers had to be complaining but were the complaints getting to upper management in the company. And if upper management did here about the complaints, they were not looking at the financial risks to the company for their indifference. Leadership Approaches and HR When it comes to a collaboration with HR in dealing with financial risks, there should always be open communication and discussions on what to do in a crisis. The HR department should be key in the development and training of an emergency plan for when a crisis should arise. In addition to communication with HR and having a plan in place, there should also be a variety of leadership styles used to resolve the issue (Martinuzzi, 2019). The seven styles of leadership are autocratic, authoritative, pacesetting, democratic, affiliative, coaching, and lassiez- faire.

5 The Autocratic leadership style is also known as the do-as-I-say style where the leadership thinks they know more and can make better decisions on their own without input from the rest of their team (Martinuzzi, 2019). The authoritative leader is a visionary who engages and energizes their team and sets the expectations. The leader who is a pacesetter sets high expectations on his or her team and gets things done quickly. This is also known as the do-as-I- do form of leadership. The democratic leader shares any information that will affect the work of his or her team. This leader is known as the participative leader and a spirit of teamwork and cooperation. The affiliative leader fosters a work environment that is collaborative and is a people-come-first leader. This leader opens the door for his or her team to connect on some level. The coaching leader is one that everyone has the power to lead and fives little direction to his or her team, allowing them to see and utilize their own talents and abilities. The Laissez-Faire leader is detached from his or her team and is better at leading a group of self-starters or experienced employees. Ethics Implications Many people look the company’s brand and their reputation on how they handle crises in the past. They take into consideration the company’s transparency, communication, and accountability. It is for this reason that ethics should be the at the center of every crisis, and executive leaders should ensure that ethical implications and actions are considered, especially during times of crisis. In doing so, a company can protect itself, and its reputation and increase employee engagement by creating an ethical work environment. This is done by fostering honesty, integrity, strong foundation, and values and leading by example, this should be revisited regularly and revised as needed (ECI, 2021).

6 Conclusion There are many things that can cause a company to have a crisis. When that happens, both the executive management and HR need to have a plan of how to handle it so that the company is not hurt by it too much. This means that the crisis that could come out of any decision made should be planned for in advance to try to prevent it from happening in the first place. As stated previously, people look to the brand of the company and its reputation for handling crisis in the past to trust how they will handle one in the future. If they are handled ethnically, both the customers and the employees will understand that the company is strong and will provide stability for their employees. A company that has a crisis management plan seems to recover more quickly when there is a crisis than a company that does not have a working plan in place (Ionos, 2020). Their crisis management plan should have a great public relations plan, fast action, and a comprehensive communication plan. With these things in place, the company can protect its assets reputation and brand.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 References Kash, T. J., & Darling, J. R. (1998). Crisis management: Prevention, diagnosis and intervention. Leadership & Organization Development Journal, 19(4), 179-186. doi:http://dx.doi.org.ezproxy.snhu.edu/10.1108/01437739810217151 Martinuzzi, B (16 October 2019) American Express. The 7 Most Common Leadership Styles (and How to Find Your Own). Retrieved March 14, 2021, from https://www.americanexpress.com/en-us/business/trends-and-insights/articles/the-7-most- common-leadership-styles-and-how-to-find-your-own/ ECI (2021) Five Ways to Reduce Ethics and Compliance Risk. Retrieved March 14, 2021, from https://www.ethics.org/resources/free-toolkit/reducing-risk/ Ionos (24 April 2020) Crisis communication plan: every company needs one. Retrieved March 14, 2020 from https://www.ionos.com/startupguide/grow-your-business/crisis- communication-plan/ Tomblin, Cynthia (October 2, 2022) Southern New Hampshire University

OL 645 Article Anaysis Performance Management

Related Documents