Leading Teams Essay

The following report presents an analysis of outwit cover, and the ways in which it in corporeals team leadership concepts in balancing stakeholder demand. Stakeholders argon defined in The multiplication 100 case study Balancing Stakeholder Needs as any unmatch qualified who has an matter to in what a ancestry does or an influence on the business. The case study continues on to identify booms stakeholders as sh argonholders, employees, suppliers, customers, local anesthetic communities, and interest groups. It is vitally of the essence(p) for large corporations much(prenominal) as fount to proportionateness the leases of these parties, in line of battle to realize profitable, safe and continuous operations. In rear to do so, pillowcase must consider what the require of each of these groups atomic number 18, and how to use leadership to control the effect of difference of opinioning needs.a) Making reference to separate theory what aspects of leadership and t eam dynamics may squash commence considered when considering their attempt to balancing Stakeholder needs? The leadership tactics employed by casing in balancing stakeholder needs exit be varied, but ordain no discredit include an assessment of its vision and principles, the corporal leadership style, and how to construct its teams to exploit exploit. The statement Begin with the end in mind (Covey 2004 cited Benson and Rice 2009a, p.3), gives a fair indication as to the purpose and necessity of a corporate vision. Where is the business going, and how is it going to soak up there?An essential element to leadership, a vision defines the goal that bothone in the alliance should be working towards. Kotter (1990, p.105) suggests that a key part of vision is how well it serves the interests of important constituencies. In some other words, type should display equilibrated stakeholders needs in the alliance vision. consort to Nanus (1992 cited Southwest Educational De velopment Laboratory, 1993), a vision should similarly display the following characteristics, which smash would likely seduce taken into government none for each group of stakeholders* Attracts commitment and energises people* Creates meaning in workers lives* Establishes a standard of excellence* Bridges the present to the future* Transcends the status quo.Shell publishes its vision, along with its core cling tos and other operating principles in the Shell General dividing line Principles, which is widely communicated, and available for download from the ships companys website. Shell has clearly recognised for quite some time the value and necessity for a vision in balancing needs, as the stolon set of principles was originally published in 1976 ( kingly Dutch Shell plc 2005). It is important to separate leadership from trouble. Kotter (1990, p.104) states that Management is about coping with complexity, and that leaders, by contrast, is about coping with change. And what is a vision, if not an anticipated change to the company? The management of change is a key role of leadership. The recent corporate restructuring and appointment of a new CEO in July 2009 (Wighton 2010), shows that Shells leaders argon required to consistently react to changes much(prenominal) as market conditions, and adjust its focalize to ensure all stakeholder needs are still being met.The study of leadership in general has guide to legion(predicate) differing leadership theories, which can essentially be divided into twain categories Behaviour Models, and Situational Leadership. Behaviour Models tend to administer the face-to-face traits of the individual leader, and Situational Leadership addresses a customisation of style to each new situation. While it is executable to dedicate some Behaviour Model theories to an arranging, it is more likely that Shell yield Situational Leadership methods, altering the balance of task vs. relationship dependent on which sta keholder group is being considered. Shell lead also have spend considerable time finding the most effective teams for their business profile. owe to the super technical nature of Shells operations, there is a good possibility that it uses expert teams to ensure that shareholder needs are corporal at every level of the organisation.For display case, and expert in say, oil colour drilling, may not have the expertise to determine what effects a proposed course of action would have on the local community. It is worth noting however, that it may be time for Shell to re-evaluate the effectiveness of its teams. Wighton (2010) reports that Shell has been plagued by delays and compute overruns on big projects, indicating that its teams are not performing. To ensure that stakeholder needs are being met, Shell provide have incorporated ways in which to monitor and control performance within the organisation. Shell begins by reporting. It reports on several sectors of the business, to include annual financial reports, which are detailly pertinent to shareholders, and sustainability reporting, which leave be of interest to local communities and interest groups (Shell worldwide B.V. 2010a).It became apparent, finished with(predicate) the annual reporting to their shareholders in May 2009 that Shell had misinterpreted its shareholders needs. This resulted in a tense annual meeting where the shareholders voted 60% against the proposed incentive scheme for exe skidives, which would have seen top executives receive large bonuses, even if they failed to meet performance targets (Lindsay and Pagnamenta 2010) b) How may Shells approach to balancing Stakeholder needs clash upon employee motivation? There are two major motivational theories which are widely used in the field of management Herzbergs twain portion Theory (1959 cited Boddy 2008, p. 500-502), and Maslows Hierarchy of Needs (1970 cited Boddy 2008, p. 494-497).The Two Factor theory suggests that there are two elements to motivation, motive Factors, and Hygiene Factors. prompt Factors contribute to an employees satisfaction, and Hygiene Factors contribute to their dissatisfaction. The theory identifies these factors asMotivating Factors Hygiene FactorsAchievement Company PoliciesRecognition SupervisionThe work itself relationship with Supervisor and PeersResponsibility Work conditionsAdvancement SalaryGrowth berth SecurityHerzberg went on to conclude that satisfaction and dissatisfaction are not versos. The opposite of satisfaction is no satisfaction, with the opposite of dissatisfaction being no dissatisfaction. In other words, the absence of Motivating factors does not create dissatisfaction, and the existence of the Hygiene Factors does not create satisfaction.On the other hand, in the Hierarchy of Needs, Maslow speculates that everyone has a electropositive set of needs that must be met in a true order, as followsMaslow maintains that employees begin by looking to fill Physiological needs, for grammatical case a properly heated/cooled workplace. Only when Physiological needs are met, or mostly met, testament an employee seek to fulfil their Security needs, for ex deoxyadenosine monophosphatele a permanent contract. And so on through the other needs. both(prenominal) of these theories have identified common areas of motivation relating to security ( line of products security, salary), recognition (status, advancement, self-esteem, rewards), and trouble instruction (growth, arrive atment, self actualisation, responsibility). Regardless of which theory, if any, that Shell has chosen to adopt, these are the basal employee needs that they will need to have taken into account.It is a widely held belief that employees are a companys greatest asset, which instrument that their role as stakeholders is an important one. If Shell is getting the stakeholder balance right, they will have addressed their employees needs, which should result in positive levels of employee motivation. As we saw in Question a) however, it is not always that easy to get the balance right. If Shell has favoured its shareholder needs, this could potentially lead to employee pay cuts and a reduction in safety costs, in order to maximise profits. If interest groups and local communities are favoured, this could potentially lead to the cancellation of new and innovative projects that would have allowed employees to develop new skills and achieve new discoveries. All of these outcomes would have a noticeably negative effect on employee motivation.If we are to believe Shell, it recognises this need for balance, and goes to great efforts to ensure that employees needs for recognition and job development are met (Shell transnational B.V. 2010b). It professes on its website * Joining Shell means getting more out of your working life than you thought possible. (Shell International B.V. 2010b) * We get under ones skin every effort to provide the kind of rewar ds and benefits that will complement your own grumpy lifestyle and needs (Shell International B.V. 2010c) Certainly, the testimonials offered by Shell employees, from every vista of the organization, seem to support these statements (Shell International B.V. 2010d).It is worth noting however, that nowhere in the literature published in the Jobs & Career section of the Shell website, does it address the subjects of job stability, employee safety, or personal security. It was reported by Wighton (2010) that within weeks of his victorious over at the helm of Shell in July 2009, Peter Voser had cut 5000 jobs. Combine this with the inherent safety risks of the petrochemical industry, and the security risks associated with operations in locations such as Nigeria, and some doubt is cast on Shells ability to meet all of their employees needs.c) What conflict situations may Shell have needed to consider and manage in order to victorfully achieve its balance towards Stakeholder needs? Shell has five main stakeholder groups, shareholders, employees, suppliers, customers, local communities, and interest groups (The Times 100 ca.2009, p. 133-136). The nature and the needs of each one of these groups differs to such a degree that conflict is nearly inevitable. Conflict frequently has its roots in difference (Benson and Rice 2009b, p.2), this statement supports the idea that conflict management can also be regarded as the management of differences. Shells balancing of stakeholder needs could essentially be redefined as management of the differences in stakeholder needs or conflict management. With a multinational company such as Shell, listing potential conflicts could be a intimidate task. To begin with, the shareholders need to earn the greatest dividends possible is obviously at odds with the employees trust for greater wage and benefits packages.The shareholders and employees dedication to innovative new technologies and projects may oppose the goals of intere st groups who strive to protect the environment and human rights, and local communities who are stretched to accommodate a new industry. The customers desire for a reprieve from the ever increasing cost of fuels is in depend opposition to a suppliers objective of selling their product at the most profitable price. The list is virtually inexhaustible. Shell has incorporated measures throughout its organization to mitigate potential conflicts, which centre on ensuring balance, communication and involvement. The first and foremost of these measures is Shells decision making criteria (The Times 100 ca.2009, p. 136), which is specifically designed to achieve a good balance of stakeholder needs and provide a transparency by assessing * the economic tinge of the performance is likely to yield a good return for shareholders * the tender impact will be suitable for employees and communities * the long-term effect of its activity will harm the environment As mentioned in Question a) Shell report openly and honestly on its activities and their effects, through financial and sustainability reporting. concord to Shell, they have voluntarily reported on our environmental and social performance since 1997 because this performance matters to our stakeholders and to our business success (Shell International B.V. 2010a). This provides a consistent boulevard for communication with stakeholders. The greatest volume of resources dedicated to mitigating conflict can be found in Shells social programmes. A apprize re public opinion of its website reveals that it has no fewer than seven separate social programmes, which focus on a myriad of topics, from sustainable development, to road safety, to HIV/ aid (Shell International B.V. 2010e). There is an underlying conflict however that is not so easy to identify, and which is not evidently addressed in the mitigation measures. It is the multifariousness of the stakeholders that presents Shell with perhaps the biggest challen ge of all. In order to truly balance stakeholder needs, Shell must consider the cultures in which it operates, and strive to understand the affluence and strength of the many different facets of renewing, including age, gender, colour, race, ethnicity, religion, differing abilities (physical and cognitive), sexuality, socio-cultural and economic background (Benson and Rice 2009c, p.2).This will not only affect the way in which it must fiddle itself in each region, but it will also have a great impact on the internal development of its teams in order to maximize performance. Again, the management of differences between cultures becomes the management of conflict. d) Conclude by taking the key elements of your observations in steps a-c regarding Shell in order to make a recommendation for other organisations to consider implementing the approach of balancing Stakeholder needs as a means to business success? Shell Oil began as an antiques dealer in capital of the United Kingdom , who diversified into importing shells from the Far easterly in 1833 (Shell International B.V. 2010f). This is a far cry from the multinational petrochemical company of today that is a recognized symbol around the globe. The business success that has propelled Shell from local antiques store to global giant will not have happened by accident.It will be well calculated and methodically achieved. This outstanding business success will certainly provide many other organizations with insight regarding balancing stakeholder needs which will be beneficial. runner and foremost is the need for vision and leadership. Business success on the ordered series of Shell Oil cannot be achieved without establishing a vision of what that success will look like, and how to get there. A properly composed and communicated vision will essentially be the battle cry that enlists all of your stakeholders to joining in and making the increased business success a reality. To accompany this, it is needful to embrace the ideas of leadership over management, after all, No one besides has figured out how to manage people effectively into battle, they must be led (Kotter 1990, p.104). Once a vision has been communicated, it will quickly put up momentum if the stakeholders are not informed of its progress.Tools to measure and disseminate the organisations and individuals performance to the vision should be developed. No matter how inspiring the vision and enthusiastic the leadership, effective teams who are able to perform will be essential. Dependent on the type of organization, and its particular stakeholders, the team dynamic required to meet expectations will be different. For example, the approach to technical innovation required by Shell will not be needed in a non-profit organization that gives support to individuals through social programming. Research into effective team structures for the desired outcome is noblely recommended. While no one group of stakeholders should overs hadow the rest, it is perhaps the employees who will have the most complex needs to balance against the other stakeholders. any organisation should ensure that the balance of stakeholder needs promotes positive employee motivation in order to achieve its envisioned business success. A study of motivational theories should be undertaken to understand the various factors, in front assessing them within the organisation. As cogitate in Question b), Shell has heavily promoted its ability to meet the job development and recognition needs of its employees, though it may have go down on fulfilling needs such as job and personal security. This will in part be owing to research and feedback right away from their employees. The employees most valuable to Shell and achieving its vision may be those who are eager to participate in the innovative and technical projects that Shell has to offer, and are willing to sacrifice in other areas as a result. both organisation should work with its employees to determine what their needs are against the desired outcomes of the company, before assessing how these needs will fit into the balance of stakeholders. An organisation who is striving to achieve business success would benefit from approaching the balancing of stakeholder needs as if it were the management of differences in needs, in other words, conflict management. Consistent communication will be required with each stakeholder group in order to identify and discuss potential conflicts. This will allow the introduction of appropriate mitigation measures within the balance.It is acknowledged that not every organisation will be conducting multinational business however careful research into the diversity of the stakeholders is recommended. This will allow the organisation to harness the differences within its stakeholder groups, with a view to maximising potential for performance. This report has summarised some of the key areas addressed by Shell Oil in its balancing o f stakeholder needs, and has made some high level recommendations for other organisations to consider. Any organisation that is keen to achieve business success will no doubt find value in research regarding Shells approach.ReferencesBenson, A., and Rice, M., 2009a. develop and Sustaining Effective Teams Guide 2 What are you there for? Setting Objectives. London royal stag College of Nursing. visible(prenominal) from http//www.rcn.org.uk/__data/assets/pdf_file/0003/78735/003115.pdf Accessed 02 February 2010. Benson, A., and Rice, M., 2009b. Developing and Sustaining Effective Teams Guide 6 Some thoughts about conflict. LondonRoyal College of Nursing. Available from http//www.rcn.org.uk/__data/assets/pdf_file/0003/78735/003115.pdf Accessed 02 February 2010. Benson, A., and Rice, M., 2009c. Developing and Sustaining Effective Teams Guide 4 Is everyone involved? Diversity. London Royal College of Nursing. Available from http//www.rcn.org.uk/__data/assets/pdf_file/0003/78735/003115.pd f Accessed 02 February 2010. Boddy, D., 2008. Management An Introduction. 4th ed. Edinburgh Pearson Edutcation. Kotter, J.P., 1990. What Leaders Really Do. Harvard Business Review, 68 (3), 103-111. Available from Business Source Premier, EBSCOhost Accessed 31 March 2010). Lindsay R. and Pagnamenta, R., 2010. Shell tries to appease investors with caps on pay. The Times, 17 February. Available from http//business.timesonline.co.uk/tol/business/movers_and_shakers/article7029759.ece Accessed 21 April 2010. Royal Dutch Shell plc, 2005. Shell General Business Principles. The Hague Shell International Limited. Available from http//www.shell.com/ post/content/aboutshell/who_we_are/our_values/sgbp/sgbp_30032008.html Accessed 03 April 2010. Shell International B.V., 2010a. Our approach to reporting. The Hague Shell International B.V.. Available from http//www.shell.com/home/content/environment_society/approach_to_reporting/our_approach/our_approach_to_reporting_26042007.html Accessed 03 April 2010. Shell International B.V., 2010b. Jobs & Careers. The Hague Shell International B.V.. Available from http//www.shell.com/home/content/careers/ Accessed 03 April 2010. Shell International B.V., 2010c. Rewards & Benefits. The Hague Shell International B.V.. Available from http//www.shell.com/home/content/careers/professionals/rewards_and_benefits/professionals_rewards_benefits_13092006.html Accessed 03 April 2010. Shell International B.V., 2010d. Meet Our Professionals. The Hague Shell International B.V.. Available from http//www.shell.com/home/ knave/careers/our_people/tool/app_xp_meet_our_people.html Accessed 03 April 2010. Shell International B.V., 2010e. Programmes. The Hague Shell International B.V.. Available from http//www.shell.com/home/content/environment_society/society/our_neighbours/social_investment/programmes/ Accessed 03 April 2010. Shell International B.V., 2010f. The beginnings. The Hague Shell International B.V.. Available