Wednesday, February 12, 2014

Leaders and Managers



Introduction   

  • Yesterday’s Leaders and Managers
  • Effective Communication with People
  • Helping to coordinate the interface of engineering, marketing, sales and manufacturing
  • Comparisons between Defense Contractor structures and commercial Corporate Structure
  • Tomorrow’s companies
Today’s managers and leaders have not changed very much since Roman times. In the time of Julius Caesar who was known as a great leader. He had an expertise at getting things done. When only 25 years old he had to deal with pirates and was quite firm at having them tracked down and executed as an example. This is an example of many where he was quick to take action in a particular situation. A strong leader takes action quickly when dealing with situations and when he does it instills trust in those under him.  But, he was not good at management. He led with an iron fist when dealing with mundane political issues and had to rely on the advice of his senators and sub-ordinates to get things done according to the laws of the time. Throughout history other men like Genghis Khan who conquered most of Asia was a great leader who was brilliant at military strategy led his troops in great victories over the years of his reign. But he was better suited as a leader, instead of manager because he of autocratic and told his troops and generals what to do.
Today’s generals in our army and marines are considered great leaders like Colin Powell whom many seek his advice for war strategy and guidance for deployment of troops. His personality did make him a good manager. He had good interpersonal skills at inspiring people and motivating them. People respected him due to his extensive decoration and experiences as a Captain in the Vietnam was as a South Vietnamese Army adviser from 1962 to 1963 (Wikipedia\Colin Powell). His role when selected as Secretary of State illustrated his strengths as manager and leader. A good leader projects this image of assurance in decisions and respect for those around him.
Organizations at companies like government have a structure and hierarchy. They direct work but are not always leaders. Bush was considered a leader as president but was ruthless in his autocratic authority. He fired anyone that disagreed with him including Colin Powell. He violated over 35 areas of the constitution for illegal wiretapping. His inability to listen to his expert advisors and upper level managerial staff in the Whitehouse made him a liability. His actions and those of Cheney let this country to its current crisis.
Heads of national and international corporations followed the examples of leadership and ethics the Whitehouse portrayed. Companies ranging from Enron, Ford, Chrysler, AIG, various banks all had corrupt leaders who only thought about short-term profit and outsourcing to increase the profits with no regards to the employees within the organizations. The power that these leaders and top level presidents of corporations had grown with their corporations to the point that it had corrupted them. They lived the high life with no regard to the long term future of their companies. The average salary of CEO’s has increased over the last decade from 40 to 1 time to 300 to 1 that of most workers with incredible bonus each quarter. (Mackey, HBR, 6/14/2009) Power at such levels led to corruption of lack of trust by the corporations when performance fell. The CEO’s as leaders left with very large severance packages.
They gave themselves and executive outrageous bonus’s and raises even though their profits were decreasing and they were forced by stockholders to cut staff. This intensified their poor leadership and managerial skills with their corporation staff. They tried to rationalize by persuasion to their stockholders and employees that outsourcing would help the companies on the whole. Over the last two decades as manufacturing has been outsourced to China many managers helped direct the overseas operations. They were good at managing the operations but didn’t have the persuasiveness to be the corporate leader. The followers of a corporation took direction from the CEO and upper management. Today is the best time in history for students to analyze the failures of many of yesterday’s stable corporations. Many CEO’s or leaders of these corporations failed to listen to the managers under them that the companies were in trouble. Commercial corporations in the effort to reduce manufacturing costs outsourced to China without realize the impact on the American economy. Managers of many corporations that went to China to have thing made at a lower cost often found their products stolen by China when the companies that supposedly had their goods made in China closed. Then a few weeks later a new Chinese company opened manufacturing exactly the same items the closed United States Company made. Corporations in their greed have lost billions of dollars in manufacturing potentials by outsourcing from China to India, Pakistan and Lebanon and lower cost countries.
We have allowed the GNP of this country to shift to billions to China and India with the cutting or elimination of employee training further eroding the competitive edge. We have given away a great deal of our technology and business methodology away to foreign competition. It has had a long term negative effect on our ability to compete globally. Conformity with upper management has led us down that road along with greed for more short term profit.
Many of the upper managers in these companies and boards preferred to go along with whatever the CEO said and were afraid for their jobs to tell the CEO’s that many of the outsourcing decisions would have backlash effects. Rarely do you have leaders that are good managers. I perceive good leaders are those that have visions of how things should be done. They have a flare for inspiration and innovation. Steve Jobs at Apple is an example of an exceptional leader. He has a brilliant insight for ideas to develop new products for Apple. Without Jobs Apple would not have been as profitable as it is today. We have many managers today who can’t “think outside the box”. They think very conservatively form Six Sigma training which I didn’t think was very inspirational. Excellent leaders are those that are risk takers and willing to try something new as an approach for a corporation.
The best company today that is incredibly innovated and treats its employees like people with ideas is Google. They have a unique work environment, where ideas and innovation are nurtured and allowed to blossom. Ideas for new products and ways of doing things are embraced and not condemned for being unique. Leaders and managers at defense contractors think the opposite.
Defense contractors such as General Dynamics, Lockheed, and BAE that I have worked at over the years as a contractor don’t want ideas outside of the way to solve an engineering problem. Their managers don’t want lower engineers involved in any decision making process like a commercial company. The management structure is 10 tiers deep and decisions on such things as buying new software or hardware takes months or years based upon approval from corporate. They don’t produce a commercial product with their own money. They get government handouts from contracts and often have to ask for more money when they go over budget. I have found that the worst managers and CEO’s work at defense companies. The upper management gets very large salaries and bonus. They often don’t listen to their engineering managers when it comes to how long it will take for a project. They underbid how much and how long it will take because they know they can ask for more money later, they are disorganized and provide poor communications to those along the corporate ladder.
Most managers and corporate CEO’s would not survive working in the commercial sector due to the different work environment. Many companies like Lockheed tried to change their corporate structure to adapt to commercial products in the late 1980’s and early 1990’s and almost went bankrupt. They were too top heavy and had managers that were followers and couldn’t think inspirationally like their commercial sector counterparts.
For the managers and leaders of tomorrow to be more effective they have to listen to the needs of the consumers. Change and adaptation is essential for the survival of any corporation. We need effective leaders such as those at Google and Apple to draw up the creativity of their peoples to develop more collaboration amongst all the employees to compete with the global market of tomorrow.
   
References
Yukl, G. (2006). Leadership in Organizations  Pearson Education LTD.
http://en.wikipedia.org/wiki/Colin_Powell

Mackey, J Why Sky-High CEO Pay Is Bad Business, Harvard Business Review, June 17, 2009

http://blogs.harvardbusiness.org/hbr/how-to-fix-executive-pay/2009/06/why-high-ceo-pay-is-bad-business.html
Anonymous. Telegram & Gazette. Worcester, Mass.:Apr 27, 2009. pg. A.5
Glaser, J. E., & Jones, C. (2008, March). Meeting People's needs. Leadership Excellence , 25 (3), pp. 13-14.
Jones, G. R., & George, J. M. (2007). Essentials of Contemporary Management (2nd ed.). Boston: McGraw-Hill Learning Solutions.
Rosen, K. (2008, June 12). The seven types of managers-where do you stand? Retrieved March 1, 2009, from All Business: www.allbusiness.com/company-activities-management/sales-selling-sales/10207093.html














Group Communications and Diversity Today

Corporations today to be successful must be aware of group dynamics, controversy, creativity, and valuing diversity. They are essential elements for companies to survive in today’s fast paced society. (1. Johnson, Johnson 2009). Companies that don’t apply these principles will not survive this major recession. There is a global relationship between all of these principles in the world economy. Failure to acknowledge there importance in today’s society has led to many of the current problems that corporation has to deal with on a daily basis. Greed, corruption and the lack of respect for the employees that make the company have let to our current crisis. In today’s fast paced work of technology news of corporate events are almost instantaneous.
The internet and technology have brought instant communications to everyone in the world. The world is a group environment in which we all live today and exchange products and ideas via the internet. Our world is incredibly diverse with people from all walks of life and culture living together. Our social interactions can now be instantaneous; talking with people on the other side of the planet instantly through such websites as “Facebook” and “Twitter”. People of all different cultures, beliefs and religions can exchange any number of ideas in today’s instant communication. “Companies today have to be innovative and creative to be successful in a global environment due to intense competition and rapid change.” (International Journal of Management Practice. Olney: 2009). the internet is a conduit for this expression of creativity and innovation for today’s corporations.
Less than a hundred years ago, people had to travel for day or months to communicate with someone half-way across the world. When someone wants to decide to buy something or make a decision about some project they are working on in Europe they can instantly contact their office in Chicago via email or cell phone. No longer to we have to wait for the mail to get a letter from a relative or business. Our entire social and business structure today has been enhanced in some ways by this instant communication and instant information on almost any subject or business matter.
How we manage and utilize this new method of information exchange shall help to shape the future of mankind. “This information accumulation can increase our innovation capability in a global environment of intense competition and rapid change.”
Today corporations are conducting research to develop new products. Their engineering group can instantly find all the specification sheets on the vendor’s website. Engineering groups and business’s today can more quickly make decisions regarding design specifications instead of having to wait to receive the specifications in the mail or information from other divisions by “snail mail”.
The decision making process is fast paced due to the changes in global business today. We have a diversity of people with different approaches to dealing with problems or decisions that have to be made in a group organization. Members of the group have different ideas for solving problems can have positive and negative results to the group’s dynamics. When a company is headquartered in the United States and its manufacturing in China it can be difficult to interface with the supplier due to the cultural differences and time difference.
“New players beyond the Chinese, including Japanese and Indian investors, are loosening their past dependence on resources from the rich world. Few North Americans understand the new, powerful corporate linkages between China and India, or even more ominously, between these two giants and Japan, with its superstar multinationals, huge personal savings, trading firms, and sophisticated technologies in electronics, pollution controls, health systems, and autos and transportation. And to these new realities can be added the arrival and influence in Africa of Arab investors and the sovereign wealth funds.” (Ivey Business Journal Online, Jul/Aug 2009)
China has developed different methods of manufacturing that what we are accustomed. There are often debates between suppliers and the corporate headquarters on how a product is made.  It is hopeful the management of both parties is open-minded to new ways of doing business to adapt to the methods the country that the product is outsourcing conducts its business. The concept and final product can create conflict within organizations. When we send drawings for a design from a company to China sometimes we may get back a product that is not exactly the way we envisioned. General Motors Corp. has begun designing interiors in China for Buicks it will sell in the U.S. Alan Taub, GM's executive director of research and development, said both cost savings and the desire to cater to the local market drove the effort to shift product development work to China. (Wall Street Journal Feb 7, 2008. pg. B.1) When engineering jobs are outsourced to other countries you eliminate any group team effort, diversity, or communications within groups because you have taken away the checks and balances of intellectual copyright control. The group dynamics change because you have essentially outsourced the entire company except for the corporate executives who overseas operations. The diversity and controversy aspect of American creativity has been given away to China.
Many times it is due to the language barrier and translations of instructions are not understood. In recent years there has been a breakdown in communication between American companies and their Chinese partners. Products that have contained lead, poisonous children’s products, poisoned dog food, and other items have made their way into the news. Decisions must have been made at the corporate level not to have a sampling of any products for compliance from these overseas vendors. “Foreign corporations shouldn't be able to export their products to our country without following our laws too," said AAJ President Anthony Tarricone. "This bill ensures foreign manufacturers that profit from our marketplace are also held accountable when their products are defective."” (Lawyers USA. Boston: Aug 17, 2009)
The management at many of these manufacturing plants doesn’t comply with our guidelines of safety and environmental issues that we have in place.  Management at these companies often has a dogmatic philosophy of doing things they think is best regardless of what they are instructed to do. We lose control in the manufacturing process due to poor communications and implementation of contract specifications as part of the communication between these different groups. (Industry Week. Cleveland: Sep 2008)
Brainstorming for solutions to these problems will help find solutions to reduce the delivery of bad products if we let things continue due to high profits. Long term bad decisions are made at the corporate level of the autocratic nature by executives who don’t always get feedback from their managers as to the nature of the problem. “China is utilizing social responsibility (CSR) principles and practices to the Chinese stakeholders. Companies usually take one of the following major approaches in their CSR communications: CSR as ad hoc public philanthropy, CSR as strategic philanthropy, and CSR as ethical business practices, Chinese and global companies still present their CSR principles and practices differently because of their different relations with major Chinese and global stakeholders. (4. Public Relations Review, Sep 2009).
 Decisions in corporations today have a great deal to do with making the stockholders happy by higher dividend returns. Majority votes by stockholders have a great deal of influence on business decisions and directions a corporation will take. We have outsourced over forty million manufacturing jobs over the last twenty years. The reduction in manufacturing costs by having our clothing made in China, Lebanon, Vietnam and other countries have increased profits in companies to record levels. Minority control of company’s interests by a few stockholders has alienated many investors. The ramifications of outsourcing so many manufacturing jobs to overseas have negative results. We have lost control of the quality of the product, working conditions for workers in these foreign countries. We can be more vigilant in monitoring work conditions when these manufacturing companies are local.
Many companies such as pharmaceutical companies overseas scramble to give their own employees solid benefits and added expertise -- often by hiring professors away from academia to provide classes, offer training and conduct research -- some companies are looking elsewhere to meet their needs. We are not just sending jobs overseas, now the United States is sending its knowledge, such as engineering and manufacturing methodology as well. (McClatchy - Tribune Business News. Washington: Jan 20, 2008)
There is a long term advantage of reversing outsourcing back to the United States. We can have better control of working conditions, salaries of workers and communications between the various groups of the organizations. There is a reduction in cultural conflicts when products are not outsourced due to philosophical differences in manufacturing techniques. We maintain our global advantages by guarding our proprietary knowledge of how a product or process is made. If we gave China the formula for Coca-Cola, it wouldn’t take long before they came out with a product that would take away all of Cokes sales just as the United States gave away the VCR in the 1960’s to Japan.
Today there is a public outcry to return jobs to Americans. Corporations have a greater group influence on Congress than the people have in recent years. We are a world community with different countries making different products all sent to the United States. There is such a degree of interdependence that when our economy falters it affects all the interconnectivity groups of corporations that have manufacturing plants overseas in turn. Managers of foreign companies have difficulty understanding how we conduct business due to cultural conflict differences.
America has the highest number of patents and inventions than any other country in the world due to its diversity, group dynamics, valued diversity, and constitutional freedoms. But, the overwhelming number of patents is affecting our protection of global intellectual property.
The U.S. Patent and Trademark Office, the agency safeguarding American innovation, is impeding the nation's economic recovery with its unprecedented delays and hurdles in issuing patents, said U.S. Commerce Secretary Gary Locke. John Schmid, The total number of patent applications waiting for approval, now over 1.2 million, nearly has tripled from 10 years earlier.
(Ben Poston. McClatchy - Tribune Business News. Washington: Aug 23, 2009.)
A monotheistic society like China expands and has a very large manufacturing base due to its lack of diversity and communist government. When you have a culture where everyone working together for a common goal and like thinking, there is minimal discussion and debates on projects, they are implemented quickly. China and other countries can steal our ideas for patents and implement them due to the tremendous backlog of patent filings and lack of enforcement by the world community. There is the U.S. Patents and European Patent Organization along with the (WIPO) world Intellectual Property Organization to deal with trademarks, patents and intellectual property. Kraig Hill, Toshiko Takenaka and/or Kevin Takeuchi, CASRIP. Copyrights 2001, http://www.wipo.int/portal/index.html.en Congress is overwhelmed by the current domestic and world situation to understand the engineering and technological ramifications of protection of jobs through patents and technology export. Business ethics are fundamental to the maintenance of social and environmental concerns in business activity. Anonymous. Economics Week. Atlanta: Sep 11, 2009. pg. 46
The power and influence by the lobbyists of these corporations have overshadowed what the people desire. We should have spent those trillions of spending money for small businesses and small companies to provide jobs to all those currently out of work. The legitimate power of Congress has been corrupted by buying favors for corporations. Corrupt and unethical practices of corporations that have influenced congressional decisions have taken away the group power of the people. Limiting or removing all contributions by corporations to elected official will return their representative power to the people. We need to shift the personal in management to those in the areas that deal directly with the people. When there are too many tiers in management effectiveness is reduced. The time for implementation of corporate polices can taken longer and increase costs to the company, such as Congress. They need to restructure themselves more like a large corporation to be effective.
I have worked at many companies where seventy-five percent of the company was management with the remaining personal actually being productive. We are supposed to be implementing programs to put Americans back to work with limited results.
Our transportation system is desperate need for renovation in this country. The train system that was created by South Pacific over a hundred years ago needs an infusion of funds. Our airports need money. All of our airplanes are still using aviation fuel with no planes in development that eliminate pollution into the atmosphere.
Money for the expansion of efficient electric light rails systems is not on a continuous long term basis. There are thousands of bridges across the United States that are fifty to a hundred years old. The conflicts of interest need to be managed in congress to overcome these political differences. Entropy is the process by which everything eventually will turn to dust. This fact applies to all of our bridges, roads, buildings and railway system. Business and labor groups are lobbying congress for a huge boost in infrastructure spending to create new jobs for the economy. This will help the hundreds of failing company’s employee people. (Conkey, Brody Mullins. Wall Street Journal (Eastern edition). New York, N.Y.: Nov 19, 2008. p. A.4)
There are other countries that have long term implementation plans to maintain their infrastructure. We are so top heavy with management degrees we have lost sight of the importance of civil engineers to design new bridges, roads and railway systems. We have a perspective gap between those in the sciences and engineering fields and those in government and the business sector.
We have outsourced most of our manufacturing to China and other countries because of their lenient environmental policies and reduced manufacturing cost. There is a lack of group consultation and group communications with scientists and experts of science. This has affected the profits of these companies and demanded layoffs by these companies. Technology consultation of corporations is increasing today due to executive MBA programs being implemented to teach science and technology classes to all the CEO’s of the fortune 500 companies. China and other European nations are implementing changes to insure their future.
 China has a $400 billion project that is on track due to the unilateral thinking by the government to expand their high speed rail system and employ four hundred thousand people who have been displaced by the thousands of manufacturing factories that have closed due to lower demand of goods worldwide. Other European countries and India have been impacted by this change in economic climate. They are shifting their resources to other business areas such as energy independence with the expansion of solar, wide, and geothermal production to reduce their manufacturing cost of goods.
We have to incorporate into our society blends of theorems and scientific methodology to problem solving. We have to add the functional scientific processes into the management structure process. The authors of books for management degrees are so focused on skills dealing with subjects for a degree ranging from integration of these scenic principles into management for organizations, leadership for organization, to communication in organization, social problems with a scientific understanding. Organizational change, leadership priorities, and practice need to integrate various aspects that the scientific community has used for years.
Service industries comprise roughly 75 percent of the gross domestic product of developed nations. To design and operate service systems for today and tomorrow, a new type of engineer must be educated, one who focuses on services rather than manufacturing. Such an engineer must be able to integrate three sciences-management, social, and engineering sciences-in the analysis of service systems. (Armonk: Jan-Mar 2008)
A bridge of knowledge, communications, and understanding between those in the business world has to be created to increase the group diversity and acknowledgment of scientific knowledge that physicists, engineers, doctors, lawyers and psychologists has to offer to society.
Our world is changing so fast with the introduction of computers and the internet flooding the people of the world with instant information and knowledge on everything imaginable. There needs to be self management of this information influx. It should be taught in schools and with any new computer. Today you buy a computer without a printed operations manual. Senior citizens have partially embraced the internet and computers to have access to the online experience.
Many are reluctant to join these online groups to interrelate with each other. Instant gratification is what today youth demand is. Leisure time for our youth is more important than obtaining a comprehensive education. The fast pace of life and need for acceptance in a youth team environment is one of the most important things to our youth. They fail to realize due to the lack of parental advice, education is paramount to success today. Taking concepts of cooperative learning by students and professionals, and applying this concept to public schools and family environments will help the next generation of youth.
Groups of individuals in the work place and everyday life do not realize that all of us go through similar experiences at different times in life. The lack of effective communication between parents and their children in today’s society have had dire consequences. Because so many parents are both working and trying to keep their homes and jobs that they fail to spend quality time with their children how are plugged into the internet and with their peers.
Taking lessons learned in management classes and applying them to how we deal with raising our children must be carefully considered. The ramifications of how we raised our children fifty years ago and today have had a major impact on society. Children today in the United States are not being marketed by our media that school and education is vitally important for success. Countries such as India, China and Europe support their educational system financially as opposed to the profit driven educational system we have commercialized.
How can we create leaders and managers of tomorrow when only a small percentage of our society who can utilize the system can benefit by our educational system? There are millions of people in the United States that are returning to college due to the high unemployment rate and depression that is now worldwide. When the few have all the power in a civilization, the society has lost its ability of diversity of perspectives of possible solutions to world problems. We have delegated our decisions making to our congressmen and elected officials we have lost our voice for change.
As we increase literacy, there comes increased group creativity and group creation of new breakthroughs in science and technology. As we spend more money in these areas such medicine we will lower our costs of health care and improve human health and longevity.
Developments in nanotechnology, materials engineering, and more efficient methods of energy production, solutions to world hunger and increases in quality of life by lower costs to manufacturing. New agriculture developments shared with other countries to grow food crops will lower the cost of feeding the peoples of the world.
 In time I believe this will increase the living standards of everyone. Developments in these areas will produce new jobs for everyone. We need to establish a sense of moral principles implantation to affect change in our society. The elimination of war and world conflicts, by learning our cultural and ethnic differences, cooperative learning, increased communications between all types of groups in the world and restructured business plans amongst the world’s corporations will bring in a prosperous and productive 21st century.




References
1.      Johnson, D. W., and F. P. Johnson. Joining together: Group theory and group skills (10th Ed.). New York: Pearson. 2009.
4.      Jian Wang, Vidhi Chaudhri. Public Relations Review. Greenwich: Sep 2009. Vol. 35, Iss. 3; p. 199
6.      Kimberly Atkins. Lawyers USA. Boston: Aug 17, 2009.
7.      Jonathan Katz. Industry Week. Cleveland: Sep 2008. Vol. 257, Iss. 9; p. 18 (1 page)
8.      Mark Fagan. McClatchy - Tribune Business News. Washington: Jan 20, 2008
9.      John Schmid, Ben Poston. McClatchy - Tribune Business News. Washington: Aug 23, 2009.
10.  Kraig Hill, Toshiko Takenaka and/or Kevin Takeuchi, CASRIP.Copyrights 2001 by the author and CASRIP, respectfully.
14.  Norihiko Shirouzu. Wall Street Journal (Eastern edition). New York, N.Y.: Feb 7, 2008. p. B.1
15.  Anonymous. Economics Week. Atlanta: Sep 11, 2009. pg. 46
16.  James A Stieb. Journal of Business Ethics. Dordrecht: Jul 2009. Vol. 87, Iss. 3; p. 401 (14 pages)
17.  Christopher Conkey, Brody Mullins. Wall Street Journal (Eastern edition). New York, N.Y.: Nov 19, 2008. p. A.4
18.  Susan Hassler. IEEE Spectrum. New York: Nov 2008. Vol. 45, Iss. 11; p. 9
19.  R C Larson. IBM Systems Journal. Armonk: Jan-Mar 2008. Vol. 47, Iss. 1; p. 41 (11 pages)