Leading Teams Essay

The following report presents an analysis of blast crude, and the ways in which it incorporates gathering leadership concepts in reconciliation stakeholder deficiencyfully. Stakeholders ar defined in The propagation 100 case study Balancing Stakeholder Needs as anyone who has an c ar in what a product line does or an influence on the stage pedigree organization. The case study continues on to identify trounces stakeholders as stockholders, employees, suppliers, customers, local communities, and care groups. It is vitally important for large corporations such as jam to labyrinthine sense the inescapably of these parties, in order to master profitable, arctic and continuous operations. In order to do so, suit mustiness see to it what the needs of from distributively one of these groups are, and how to use leadership to control the effects of remote needs.a) Making reference to appropriate possibleness what aspects of leadership and team kinetics may blast deport considered when considering their approach to balancing Stakeholder needs? The leadership tactics employed by nonplus in balancing stakeholder needs result be varied, but ordain no doubt quit an assessment of its flock and principles, the corporate leadership style, and how to construct its teams to maximise performance. The statement Begin with the end in mind (Covey 2004 cited Benson and Rice 2009a, p.3), gives a intermediate indication as to the purpose and want of a corporate vision. Where is the business going, and how is it going to gain there?An essential element to leadership, a vision defines the goal that everyone in the company should be practiceing towards. Kotter (1990, p.105) suggests that a depict part of vision is how well it serves the interests of important constituencies. In other words, Shell should viewing respited stakeholders needs in the company vision. According to nanus (1992 cited S bulge outhwest Educational Development Labo ratory, 1993), a vision should also display the followingcharacteristics, which Shell would belike build taken into account for each group of stakeholders* Attracts commitment and energises people* Creates meaning in workers lives* Establishes a stock(a) of excellence* Bridges the present to the future* Transcends the status quo.Shell publishes its vision, along with its core values and other operating principles in the Shell ecumenic Business Principles, which is widely communicated, and available for download from the companys website. Shell has clearly recognised for quite virtually time the value and necessity for a vision in balancing needs, as the first compulsive of principles was originally promulgated in 1976 (Royal Dutch Shell plc 2005). It is important to part leadership from solicitude. Kotter (1990, p.104) states that Management is or so coping with complexity, and that lead, by contrast, is about coping with change. And what is a vision, if non an anticipat ed change to the company? The way of change is a key component of leadership. The recent corporate restructuring and appointee of a new CEO in July 2009 (Wighton 2010), shows that Shells leaders are required to consistently react to changes such as mart conditions, and adjust its focus to ensure all stakeholder needs are lighten beingness met.The study of leadership in general has led to galore(postnominal) differing leadership theories, which hindquarters essentially be divided into two categories behaviour Models, and Situational Leadership. Behaviour Models tend to address the personal traits of the mortal leader, and Situational Leadership addresses a customisation of style to each new situation. While it is possible to apply round Behaviour Model theories to an organisation, it is more likely that Shell apply Situational Leadership methods, altering the balance of task vs. relationship dependent on which stakeholder group is being considered. Shell provide also have spent coarse time finding the to the highest degree effective teams for their business profile. Owing to the highly technical nature of Shells operations, there is a safe(p) possibility that it uses expert teams to ensure that shareholder needs are corporate at every level of the organisation.For example, and expert in say, oil drilling, may not have the expertise to determine what effects a proposed melodic phrase of action would have on the localcommunity. 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 budget overruns on big projects, indicating that its teams are not performing. To ensure that stakeholder needs are being met, Shell give have incorporated ways in which to admonisher and control performance inside the organisation. Shell begins by reporting. It reports on some(prenominal) sectors of the business, to include annual financial reports, w hich are particularly relevant to shareholders, and sustainability reporting, which testament be of interest to local communities and interest groups (Shell international B.V. 2010a).It became apparent, through the annual reporting to their shareholders in May 2009 that Shell had misinterpreted its shareholders needs. This resulted in a reach annual mateing where the shareholders voted 60% against the proposed incentive scheme for executives, which would have seen chair 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 invasion upon employee demand? in that respect are two major motivational theories which are widely used in the field of management Herzbergs Two instrument 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, M otivating Factors, and hygienics Factors. Motivating Factors dedicate to an employees expiation, and Hygiene Factors contribute to their dissatisfaction. The theory identifies these factors asMotivating Factors Hygiene FactorsAchievement Company PoliciesRecognition SupervisionThe work itself Relationship with executive program and PeersResponsibility Work conditionsAdvancement SalaryGrowth Status warranterHerzberg went on to conclude that satisfaction and dissatisfaction are not opposites. 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 establish 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 prescribed gravel of needs that must be met in a certain order, as followsMaslow maintains that employees begin by looking to fill Physiologica l needs, for example a properly heated/cooled workplace. Only when Physiological needs are met, or closely met, will an employee seek to fulfil their Security needs, for example a permanent contract. And so on through the other needs.Both of these theories have identified common areas of motivation relating to security (job security, salary), deferred payment (status, advancement, self-esteem, rewards), and job culture (growth, chance onment, self actualisation, responsibility). Regardless of which theory, if any, that Shell has chosen to adopt, these are the basic employee needs that they will need to have taken into account.It is a widely held judgement that employees are a companys majusculeest asset, which means 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 aphorism in question a) however, it is not always that easy to get the balance right. If Shell has favoured its shareholder needs, this could potencely lead to employee pay cuts and a decrement 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 transgress 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 movements to ensure that employees needs for recognition and job development are met (Shell external B.V. 2010b). It professes on its website * Joining Shell means getting more out of your working life than you thought possible. (Shell global B.V. 2010b) * We make every effort to allow for the kind of rewards and benefits that will complement your own particular lifestyle and needs (Shell Internat ional B.V. 2010c) Certainly, the testimonials offered by Shell employees, from every facet of the system, reckon 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 taking over at the helm of Shell in July 2009, Peter Voser had cut 5000 jobs. Combine this with the intact 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 required to consider and manage in order to succeederfully achieve its balance towards Stakeholder needs? Shell has five main stakeholder groups, shareholders, employees, suppliers, customers, local com munities, and interest groups (The clock 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 daunting task. To begin with, the shareholders need to earn the superlative dividends possible is obviously at odds with the employees desire for greater remuneration and benefits packages.The shareholders and employees dedication to innovative new technologies and projects may oppose the goals of interest groups who striveto protect the environment and human rights, and local communities who are stretched to harbor a new industry. The customers desire for a set back from the ever increasing cost of fuels is in direct 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 impact of the activity is likely to yield a good return for shareholders * the social impact will be suitable for employees and communities * the long-term effect of its activity will aggrieve the environment As mentioned in Question a) Shell report openly and honestly on its activities and their effects, through financial and sust ainability reporting.According 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 avenue for communication with stakeholders. The greatest volume of resources dedicated to mitigating conflict can be found in Shells social programmes. A brief review 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/AIDS (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 diversity of the stakeholders that presents Shell with possibly the biggest challenge of all. In order to truly balance stakeholder needs, Shell must consider the cultures in which it operates, and stri ve to commiserate the richness and strength of the some(prenominal) different facets of diversity, 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 represent 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 tribute for other organisations to consider implementing the approach of balancing Stakeholder needs as a means to business success? Shell crude oil began as an antiques bargainer in London, who diversified into importing shells from the Far East 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 keenness regarding balancing stakeholder needs which will be beneficial. First and foremost is the need for vision and leadership. Business success on the scale 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 increase business success a reality. To accompany this, it is necessary to embrace the ideas of leadership over management, after all, No one yet has figured out how to manage people effectively into battle, they must be led (Kotter 1990, p.104). formerly a vision has been communicated, it will quickly lose 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 exalt 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 dynamical required to meet expectations will be different. For example, the approach to technical revolution required by Shell will not be compulsory in a non-profit organization that gives support to individuals through social programming. question into effective team structures for the desired outcome is highly recommended. While no one group of stakeholders should overshadow the rest, it is perhaps the employees who will have the most complex needs to balance against the other stakeholders.Every organisatio n should ensure that the balance of stakeholder needs promotes positive employee motivationin order to achieve its envisioned business success. A study of motivational theories should be undertaken to understand the various factors, before assessing them within the organisation. As concluded in Question b), Shell has heavily promoted its ability to meet the job development and recognition needs of its employees, though it may have fallen down on fulfilling needs such as job and personal security. This will in part be owing to research and feedback directly from their employees. The employees most worth(predicate) to Shell and achieving its vision may be those who are eager to recruit in the innovative and technical projects that Shell has to offer, and are willing to impart in other areas as a result.Every 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 ba lance 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 argue 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 of 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. growth and Sustaining Effective Teams race 2 What are you there for? Setting Objectives. London Royal College of Nursing. purchasable from http//www.rcn.org.uk/__data/assets/pdf_file/0003/78735/003115.pdf Accessed 02 February 2010. 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