Guidance Which Is Needed by a New

¶ … guidance which is needed by a new CEO of a multinational firm. Here we explain how any changes in the existing culture of management could benefit not only the manager but the whole firm. We will explain some advantages of this new style which the CEO can take note of in rebuilding the structure of the whole firm.

Different management models

There are many types of management models available which can be adopted by any business firm such as Alignment strategic planning model, Basic strategic planning model, organic or self-organizing strategic model, issue-based or goal-based strategic model and scenario strategic planning model. Although our chosen multinational firm can adopt any of the mentioned models, it is essential that the style of management is properly determined so that the best out of these models is attained. Let's compare and contrast the styles of management.

Autocratic vs. Participative management style

"Any manages who adopts the autocratic style exercises its complete authority over the work group so that things get done in a strict manner" (Thierauf, 1980). The manager here completely takes over the decision making and operation running aspects of the team without considering or seeking any advice from its workers. Certain places might benefit from such style but overall this might foster resentment among the employees of the firm which is damaging for the whole organization. Compared to this, the participative manager encourages feedback and input from its staff and employees. Here the common worker feels that its voice is heard and its opinion matters, it is also seen that in many cases great ideas come from the lower chain of command and this can greatly benefit the firm in whole.

Participation can also encourage the employees to give their best to their organization. It is commonly seen that the multinational firms throughout the globe uses the participation style of management and they even give proper credit to those employees whose feedback helps the firm, this sort of action creates an environment of competition within the firm where every employee wants to surpass the other in performing better. Therefore this style is preferred for our case.

Centralized vs. decentralized decision making

Centralized decision making relies on just one person to make all the decisions and give the firm its direction. Many small businesses often use this type of decision making since the owner is solely responsible for the whole firm's business operations. Decentralized decision making often includes many individuals who are responsible for running business and making business decisions. Here at every level the firm may have some sort of autonomy in making business decisions.

"Centralized style can be very efficient but it is generally seen to work more at any business of small level" (Monin, 2004). The Decentralized style properly utilizes individuals who have variety of knowledge and expertise for running different operations of business. A broad-based team of management helps in ensuring that the firm has knowledgeable managers or directors who can handle different sorts of business situations. It is also seen that the burden of responsibility is shared among many individuals in a decentralized style where the firm has better chances to minimize or avoid any crisis event.

Some of the disadvantages of centralized decision making are as follows, the organization could suffer negative effects from different layers of bureaucracy since in many cases these businesses have many management layers which stretches from the main owner towards the frontline operations. Business owners who are responsible for every decision made in the firm might require more time in order to accomplish these tasks, this could result in the business operations being sluggish. It is because of these and many other reasons that we prefer to have a decentralized style of decision making in our chosen case so that the mentioned and many other problems are avoided.

Formal vs. informal management style

Formal style is also known as dictator or authoritative style and it means that the manager is expecting complete compliance from the firm's employees and other staff personnel. Manager is always to the point with instructions and very direct, it also has tight control over all the projects, situations and jobs. This means that the manager expects the employees to follow its directions to the letter. This might sound very rough but in some cases it has shown to produce good results, here the tough decisions are made in a quick manner and the manager keeps its distance from the employees without knowing them much on a personal level. Formal style may be suitable for businesses of small scale but for those firms which operate on a larger level it is deemed inappropriate.