¶ … Management Project Jennessa Clark

Indiana Tech

2 Brief History and Organization Background

2 Proctor & Gamble History

4 Colgate-Palmolive

5 Situation Analysis

5 External Environment

5 Internal Sociotechnical Systems

6 Problem Diagnosis & Definition

7 Great Man Theory

7 Trait Theory

8 the Managerial Grid

8 theory X and Theory Y

9 Participative Leadership (Lewin's leadership styles)

9 Situational Leadership

9 Contingency Theory

10 Transactional Leadership

10 Transformational Leadership

10 Organizational Leadership Discussion

14 Practitioner Recommendations

15 Overall Research Approach

16 Site and Population Selection

24 Identifications and Evaluation of Alternative Interventions

25 Action Planning

26 Follow-up and Evaluation

28 Work Cited

An Analysis of Leadership Styles Utilized by Procter & Gamble and Colgate-Palmolive and their Role in Contributing to Effective Practices and Profitability

Introduction

This research proposal will focus on two major competitors in the national and international market, Procter & Gamble and Colgate-Palmolive, and the types of leadership that can be found within those organizations. The first step will to compile a list of leadership models that would most likely to be found within these organizations and then develop a questionnaire or interview process to see which models would fit best in the organizations. By identifying the leadership styles that are used in the organizations, it could be useful to the organization to understand leadership models and adapt or improve the current styles of leadership that are used in the business

Brief History and Organization Background

Proctor & Gamble History

Procter & Gamble was established in Cincinnati, OH in 1837 by brothers-in-law William Procter, a candle maker and James Gamble, a soap maker, continuing to this day under the name of Procter & Gamble (Procter & Gamble, 2015). It began as a two-man partnership but by 1859, the partnership had 80 employees and annual sales exceeding $1 million, and then steadily grew through research, innovations and army contracts. In 1890, the partnership ended as Procter & Gamble incorporated to raise additional funds for expansion. In 1900, the corporation begins international sales in England and parts of Asia. In 1915, the corporation began manufacturing outside the United States, in Hamilton, Canada. In 1920, the company began using direct sales, with 450 salesmen selling directly to retailers. In 1930, the first non-family member, Richard R. Deupree, is chosen as company president, and the corporation establishes it first overseas subsidiary by purchasing Thomas Hedley & Co. Ltd. Commencing in 1935, the company expands into Asia by: the 1935 acquisition of the Philippine Manufacturing Company; the 1959 expansion into the Middle East; and the 1973 acquisition of Japan's Nippon Sunhome Company.

In the 1940s and 1950s, the company expands into South America by building or acquiring manufacturing in Cuba, Mexico and Venezuela. In 1954, the company expands manufacturing into France. The company continues its acquisitions, including but not limited to Charmin Paper Mills in 1957 and Norwich Eaton Pharmaceuticals in 1982. The company also continues its geographic expansion, most notably expanding into Eastern Europe through its acquisition of a detergent manufacturer in Czechoslovakia in 1991, obtaining a hiring license in Saudi Arabia and opening Chinese operations in Guangzhou, Beijing, Shanghai, Chengdu, Tianjin, Dongguan and Nanping by 2013. Today, P&G's manufacturing and marketing is represented by approximately 145 nationalities and its stock is traded on the New York Stock Exchange as PG at $82.89 per share (Yahoo!Finance, 2016). Its corporate board of directors has general oversight per Ohio's General Corporation Law, P&G's Amended Articles of Incorporation and Code of Regulations, and the Board of Directors' By-Laws (Procter & Gamble, 2015

Colgate-Palmolive

William Colgate & Company was founded in New York City in 1806 by William Colgate as a candle, soap and starch factory, reorganized in 1875 as Colgate & Company. In 1898, B. J. Johnson Company developed the formula for soap made of palm oil and olive oil, called "Palmolive," which became so famous that the company was renamed Palmolive, and then merged with the Missouri-based soap manufacturing Peet Brothers Company. Palmolive-Peet acquired Colgate Company in 1928, eliminated "Peet" from its name in 1958 and became the current Colgate-Palmolive Company (Colgate-Palmolive Company, 2016). In 1930, the company was first listed on the New York Stock Exchange.

Before and after its incorporation, the company has expanded through multiple product developments, acquisitions and international subsidiaries, including: Colgate toothpaste and Palmolive soap, predating incorporation; acquisition of Hill's Prescription Diet, Hoyt Laboratories, Softsoap, Murphy Oil Soap, Tom's of Maine and the Mennen Company; development of Ajax cleanser, Irish Spring soap, Protex bar soap, Colgate Plus toothbrush and Colgate Total; acquisition of a French subsidiary for fabric conditioner, a Mexican subsidiary...

Today, Colgate-Palmolive concentrates on oral care, personal care, home care and pet nutrition, selling products in 200 countries with annual sales of more than $15 billion (Colgate-Palmolive Company, 2016). The corporation is currently traded on the New York Stock Exchange as CL at $69.91 per share (Yahoo!Finance, 2016). The company's corporate governance is headed by a Board of Directors, with general oversight per New York's General Corporation Law, the company's Amended Articles of Incorporation and Code of Regulations, and the Board of Directors' By-Laws (Colgate-Palmolive Company, 2016).
Situation Analysis

External Environment

As international major players in the Personal Products Industry, Consumer Products Sector, both companies deal with strong competition from Avon, Estee Lauder, Revlon, Coty, Elizabeth Arden, Inter-Parfums, Inc., Unilever, Bic, Church and Dwight Co., as well as many smaller companies (Investopedia, n.d.). External stressors other than competition include multinational laws, taxation, cultures and political systems.

Internal Sociotechnical Systems

The internal sociotechnical systems model considers the relationship of employees and technical systems on the basis of the dynamics between factors such as:

a. Managerial

b. Structural Subsystem

c. Psychosocial and other Critical interfaces.

Problem Diagnosis & Definition

Overview

Leadership is a complex concept and there are a variety of different models that have been developed to try to understand the different styles that can be used. Procter & Gamble and Colgate-Palmolive Company are two competitors that operate in the consumer goods industry. These two companies compete for a huge customer base, which is divided into different segments including hair, personal and beauty care. Colgate-Palmolive Company is one of Procter & Gamble's main competitors in the baby, feminine and family care segment. Since their inception, Procter & Gamble and Colgate-Palmolive have developed to become the two largest household products firms across the globe with increased dividends for more than five decades (Seeking Alpha, 2014). While effective business practices and operations have played a crucial role in the success and increased profitability of these companies, the leadership styles adopted by their management have made the difference.

Research Objectives

This research effort will focus on objectives related to indentifying the leadership style that is used in a paticular organization by interviewing several members from within the organization who serve different roles. The researhc will use different sources and determine whether they are in agreement about the perception of the leadership styles that are present in the organization.

Literature Review

Leadership is one of the most fundamental aspects to running a successful organization and can be considered arguably the largest critical success factor. The literature chosen will assist with the research proposal which will focus on two major competitors in the national and international market, Procter & Gamble and Colgate-Palmolive, and the types of leadership that can be found within those organizations. Leadership is a complex concept and there are a variety of different models that have been developed to try to understand the different styles that can be used.

Over time, a number of theories of leadership have been proposed, including: Great Man Theory; Trait Theory; Behavioral Theories, such as the Managerial Grid, Theory X and Theory Y; Participative Leadership, particularly Lewin's leadership styles; Situational Leadership; and Transformational Leadership (IAAP, 2009). Additional models that are popular in literature include leadership models such transactional leadership, behavioral theory, competencies theory, network theory of leadership and many more

(Turner & Muller, 2005). A brief review of each theory follows.

Great Man Theory

The Great Man Theory is a concept that leaders are born rather than made and that great leaders have traits that other people lack. These leaders "rise to the occasion" in difficult times to overcome difficulties and successfully lead (Web Finance, Inc., 2016). The study of leadership was largely focused on stories of heroic leaders that dominated the discourse before the advent of the leadership theory (Jemsek, 2008).

Trait Theory

The Trait Theory measures consistency in a leader's behaviors, thoughts and emotions. The stability of his/her patterns over a period of time, their differences from those of other people and the way they influence behavior are all studied to reveal leaders and how their leadership works (Web Finance, Inc., 2016). The definition has also been stated as that leaders exercise influence, taking actions that, in one way or another, shape the behavior of people (Mumford, Zaccaro, Harding, Jacobs, & Fleishman, 2000).

The Managerial Grid

A managerial grid is a tool used to plot a leader's appraisal of a task's importance vs. employees' importance. If the employees' importance ranks higher, the leader is more of a team leader, while a higher task ranking may mean the leader is too dictatorial for the "team" concept (Web Finance, Inc., 2016).

Theory X and…