Topic > Business Management Issues - 789

This essay will discuss three issues within JJs. It's about Joe's centralized power, the conflict between Kurt and Marama, and an ineffective marketing strategy. They will be analyzed, through the theory of law, management, social sciences and marketing, from the perspective of power and culture, to see how the leader exercises power to effectively manage his business and his employees, as power and culture influence the organization. How JJ works and how power and culture contribute to a company's marketing strategy. The first problem in JJ is Joe's centralization of power without delegation to subordinates. The executive leader can benefit from knowledge of sources of power to influence others to achieve organizational goals. Different types of power in the organization bring positive and negative motivations to staff (Bartol, Tein, Matthews & Martin, 2005). Because coercive power emphasizes punishment, staff will feel resistant, work passively, lack enthusiasm, and even undermine the achievement of organizational goals. Staff feedback is legitimized, rewarded, and information power is compliance, so staff will behave obediently and make minimal effort to work. Regarding expert power and referent power, since the powers arise from the admiration of the staff towards the leader, the staff will be willing to work hard and dedicate themselves to organizational goals. Let's take an example of Joe's leader power in JJ. He develops coercive power and intimidates his staff, so his staff refuses to work harder, when there is work to be done. Leadership and power theory suggests that leaders must be able to recognize power plays in the organization and rely on some or all of them effectively to lead employees. A limited company is a separate legal entity existing under the Companies Act 1993. Although a company is owned by shareholders and managed by directors, it has its own identity separate and distinct from that of its shareholders and directors. The company is therefore a legal person, obviously not a human being. Since the management of power is entrusted to directors, the Companies Act 1993 indicates that "a director of a company, when exercising powers or carrying out duties, must act in good faith and in what he believes to be the best interests of the company" (Government New Zealand, nd, para.131). An example in JJs suggests that Joe, as director and CEO of the company, does not treat JJs as a separate legal entity and does not exercise his powers appropriately. Joe is a shareholder in JJs as well as a shareholder in Apex with a 30% shareholding, as Joe gives JJs the replacement of the equipment business for Apex, although Apex's stock is 20% higher than another society.