Leadership & Ethics for Managers Unit 3 IP Research Paper

Leadership & Ethics for Managers Unit 3 IP - Research Paper Example The leader member exchange theory refers to the relationship built due to time pressure by leaders with the small group of followers. These members make in-group are highly trusted, get high privileges and have unbalanced attention of leader as compare to others that fall into out-group category. Relations of out group followers are formal with the leader and based on formal interaction; out-group members do not gain the reward that are controlled by the leader and have a smaller amount of leader’s time. In history when the relationship between leaders and provided followers begun leader categorized their followers into two groups â€Å"in group† and â€Å"out group† and stability seen in such relationships over time. Leader Member exchange model has been introduced in order to reward in-group employees that are most trusted and close to the leader and punish those who fall in out-group and not close to the leader (Liden, Wayne, & Stilwell, 1993; Wayne, Shore, Bo mmer, & Tetrick, 2002). It has been encountered that there is no such procedure through which leaders chose their in-group member, but they choose on the basis of similarities in characteristics of personality, attitude and demographic or it can be said that on a higher level of competence (Duchon, Green, and Taber, 1986). It has been found that leaders have differential attitudes among followers and members fall into in-group do the hard work, have a rating in higher performers, describe high level of satisfaction with their leaders and engage in citizenship behavior at work (Gerstner, & Day, 1997). Workers that are included in the in-group are more engaged, reliable, trustworthy and hardworking as compare to out-group members. In-group and out-group differences bring favoritism and create dissatisfaction among the members of out group. It has been found that favoritism has a damaging impact and costly

Chapter 9 & 10 Assignment Example | Topics and Well Written Essays - 1500 words

Chapter 9 & 10 - Assignment Example Question # 2: P&G has now realized the importance of the social media and already shifted its advertisement budget towards social media. The company needs to increase its budget for social media such as face book, twitter as this media has great influence in the mind of people. P&G should also involve in social causes to attach customers emotionally towards it and to build strong brand images. For that purpose, It can offer scholarships to needy and meritorious people, and help needy people. Question # 3: The world is facing economical crises and the buying power of the consumer is reducing which can be worst in future. This is a significant situation which might affect P&G badly. Moreover, the R&D and marketing cost of P&G is increasing with the passage of time which can be problematic for the company as the world is now searching new techniques to reduce cost. In addition to that, increasing competition in FMCG industry is also the major risk which P&G can face in the future. Case 2: McDonald’s Question # 2: The core brand value of McDonald is its high quality food for customers with speed and convenience. Initially, McDonald was offering quality Hamburger but it expanded its menu with other dishes like Happy Meal, Big Mac, Egg, McMuffin etc. The company started expanding its business domestically as well as internationally due to its premium quality of food. However during 1990s company lost its direction i.e. high premium food. It focused to further expand its network of restaurants. It was not focusing to train employees properly and thus customer faced poor services and started losing the interest from the company. The company realized this situation and refocused its 5Ps and adopted the policy to offer different dishes for different region according to their culture and environment. Through this plan McDonald refocused on food and service quality. It also started offering healthy food due to the increasing concern of customers regarding obesity. I t also included ice-cream and coffee in its menu. Question # 2: McDonald should not change its strategy because the strategy worked well for it. It has refocused on its core values which it lost and had negative response from consumers. Therefore it will be a great risk for McDonald to change its strategies. McDonald has expanded its menu and added great varieties in it. Though its core product was Hamburger but it included new food to attract new segments of the market. Moreover, they have included healthier food in the menu and offer to health conscious people at a premium price. The strategy to offer different food for different markets according to their culture and environment has also worked in favor of McDonald. In addition to that, $1 menu was also the marvelous strategy of McDonald which targeted lower income people and teenagers. Question # 3: McDonalds might face several risks in the future. It is a multinational company which can face treasury risk due to the variation i n US Dollars against major currencies. Global instability in the economical crises might also affect McDonald’s business. Another greater risk that it might face is the entrance of new players in the market. The living standard of the people is increasing and they are going to more delicious and quality food. Therefore, the