Contents Page
What was it about Remy, Tanya and Jaime that made them successful?
Was there an identifiable skill in recruiting CFOs?
Could the talents of a good finance head be developed through training?
Could CFOs be moved to another region with good results?
Would there be any value in transferring finance people?
How should Novartis help the Finance heads to develop their potential?
Leadership approach taken by CFO Simeon Bolan
What was it about Remy, Tanya and Jaime that made them successful?
Remy was successful because she has a very organized approach to solving problems. Her organized approach to solving problems proves that she knows what she is doing and she is dedicated to solve the problem and its complications. Remy was successful because she allows input of ideas from her subordinates, this builds a good relationship in the company and makes sure that lines of communication are open. Moreover Remy was successful because she made sure that everything is planned. All of her and her group’s activities are properly planned. She always thinks about the big picture and uses this to plan her daily activities. Tanya was successful because she knows what must her group do and how does her group help in the success of the company. Tanya has a clear understanding of the role of her group and uses this to perform according to their roles. Tanya was successful because she carefully used strategies so that Novartis AH in Japan would grow. The strategies helped in lessening Japan’s resistance to change. These strategies helped Novartis Animal Health enter and establish itself in the Japan market. Jaime was successful because like Remy he made sure that line of communication between him and subordinates or managers are always open. Jaime often met with managers from other departments and tries to give them the assurance that the finance group was their partner in achieving Novartis’ goals. Jaime was successful because he made sure that all processes were constantly reviewed and changed to meet the goals of efficiency. He changed processes so that they would perform better and prove their worth to the firm.
Was there an identifiable skill in recruiting CFOs?
One of the biggest challenges for a manager is recruiting new employees (Kulik 2004). Recruiting is a critical first step in the staffing process. But once the company developed a recruiting strategy, the next challenge is selecting from among the interested applicants (Sisson & Storey 2000). If the recruiting efforts are successful, the company will find itself in the luxurious position of being able to select new hires from a pool of interested applicants (Armacost & Jauernig 1991). As a recruiter, one must be concerned about content validity. Content validity describes the extent to which the selection procedure reflects skills and behaviours actually used on-the-job (Boughton, Gilley, Maycunich 1999). Job applicants who take a test with high content validity are likely to see the test as a reasonable way of identifying the best candidates (Little 2006). Recruitment entails processes that make sure that the right person gets hired. In recruiting new CFOs an easily identifiable skill that should be targeted by companies is dedication to the job. CFOs have a tough job of making sure that the firm’s expenses and income is well balanced. CFOs have a great responsibility to maintain a company’s operation through financial management. CFOs need to be dedicated to their job and they should put most of their energies to the success of their group. Dedication entails one to be prepared to do anything appropriate and logical for the company. Dedication also assures the firm that the CFO would not commit acts that will lead to the downfall of the organization. Jaime and Remy from Novartis showed dedication through making sure that lines of communication are open.
Could the talents of a good finance head be developed through training?
Training professionals must remember that training isn’t an event. Training is not something out of a box (Sims 2002). Training is a continuous process linked to all the ways that people are developed: by their job challenges; by their interactions with the people who are in coaching roles with them; by their peers; and by something called training (Sims 1998). It has been said that doing an excellent job is much more satisfying than doing a mediocre job (Gerber & Lankshear 2000). Training professionals need to do everything in their power to provide environments that strive for excellence, not only in training, but throughout the organization (Cheng, et al., 1998). This mandate isn’t just the responsibility of training; it’s for everyone who participates in any training, learning, or development initiatives (Amirault 1992). Achieving organizational excellence is linked to defining values. When training is based on a set of shared values that meshes with the mission of the organization, a culture that is energized and continually driven towards excellence can prevail. Training in the context of an organization’s values becomes much more relevant to all involved (Desai, Eddy & Richards 1999). Training helps a newly hire individual to adjust to his/her job responsibilities, company culture and company policies. Through training, a finance head gets to develop further the talent he/she has. Training enriches the talents of a finance head through prolonged use of their talent in various activities related to their job. Once the finance head’s talent is enriched, he/she can use it to showcase his/her excellence in solving all types of problems for the company.
Could CFOs be moved to another region with good results?
International assignments are also the single most expensive per-person investment a company makes in globalizing its workforce, and unfortunately, most firms are getting poor returns on this investment (Black et al., 2005). In general, people were sent overseas to carry out specific tasks because management felt that the local talent was not up to the challenge. Because of this tactical approach, the strategic implications of the assignment, for the company and the individual, were often neglected (Burke & Cooper 2004). In contrast, leading companies today have developed a more strategic tactic. For them, global assignments serve several important roles: in succession planning and leadership development; in coordination and control; and in technology, innovation, and information exchange and dissemination (Mezias & Scandura 2005). Geographical distance, cultural diversity, and conflicting government demands push firms toward fragmented strategy and operations even while they increase the importance and difficulty of effective coordination and control (Davis & Witte 1996). Policies and manuals can sometimes facilitate coordination and control, but they are subject to translation, interpretation, and differences in execution often caused by local conditions (Haines III & Saba 1999).CFOs could be moved to another region and the company can still get the best out of it. As long as there would be proper communication and coordination there would be problem with the CFOs. The CFOs and the persons they will replace need to know why such change is necessary. The CFOs then needs to be motivated properly so he/she can use his/her talent to attain the best result.
Would there be any value in transferring finance people?
The organizational challenge to a multinational company has always been the integration of activities that take place in different countries (Guion 1998). This task has been the mission of managers responsible for business units and for functions like research and development (R&D) and finance (Galbraith 2000). The organization of every multinational is therefore a blend of units for product lines, country subsidiaries, and business functions (Guzzo & Salas 1995). Different multinational strategies have led to various distributions of power across these three dimensions; changing and balancing this distribution of power remains one of the CEO’s principal challenges (Metcalfe 1998). Additional new complexities are being generated by two changes in the business environment. One is the convergence and realignment of industries. The combinations of new digital technologies, new biotechnologies, and deregulation have blurred the boundaries of many traditional industries (Arvey & Raghuram 1994). Within companies, these traditional industries have been served by business units with clear differentiation among them; when industry boundaries disappear, so do the clarity and boundaries of business units (Walker 1999). Transferring good finance people among various business units may be good at first but doing it often will result to higher stress levels for finance people. Regular transfer of good finance people may not create any relationship between the finance employee and the employees in the other business relationship. It would also ruin any chemistry the finance employee has with the employees in the business units he/she once belonged to.
How should Novartis help the Finance heads to develop their potential?
Once upon a time there were no managerial sciences. Managers managed according to commonsense based on their day-to-day experience. A few of these managers chose to set down the lessons of their experience on paper in the form of codes, principles and laws of management. They intended these to serve as guidelines or even mandatory instructions for future managers to follow (Haus, Heinelt & Stewart 2004). Then one day social scientists started to investigate managerial behavior and organizations. As a result of their researches they concluded that the codes and principles were inadequate because they did not seem to hold up when subjected to rigorous logical and empirical scrutiny (Thomas 2003). The processes of effective management and organization looked to be much more complex and much more difficult to capture in the form of scientific laws and generalizations than the early management writers had thought (Pernick 2001). Formal concepts and tools were important for people but were not sufficient in themselves to yield effective management. Managerial expertise was best understood as a product of certain personal characteristics and experiences and was developed in specialized form in local contexts (Owen 2000).
General Managers relied less on formal processes of planning, organizing, motivating and controlling than upon the pursuit of broad-ranging and informally specified agendas of problems and issues which were pursued through extensive networks of organizational contacts rather than through the formal organization structure (Tracy 1994). One of the best ways that managers can increase the level of motivation among the personnel, team members or subordinates is to be effective leaders. When overall business success is related to leadership qualities and capabilities, it is clear that effective leadership can and does make a difference. Leadership qualities assume great importance in the professional work environment because professionals are highly sensitive to how they are managed. Managers must lead in an environment that is constantly changing (Bernthal & Wellins 2006). Employee commitment is needed to make change work; consequently the people orientation is always an important part of successful change. Professionals may be prone to accept change because of their accomplishment; these same characteristics may actually increase their resistance tendencies (Shell 2003). Leaders need particularly strong skills in communication so that needed change is integrated into a future vision of success and growth for the organization. Additionally leaders need to understand the change process and how people are likely to react to it. Many managers delve into the subject of organizational change without fully understanding the theory of the process involved (Avolio 2005). Leadership is something that is not easily achieved. Some are born leaders others aren’t. Novartis can introduce trainings that would help finance heads to discover their leadership potential and hone it to its best capabilities. Novartis can introduce activities that would help the finance heads know what type of leader they should be. Once a finance head has a clear idea of what type of leader he/she is, it would then be easier for Novartis to help in discovering and nurturing his/her leadership potential.
Leadership approach taken by CFO Simeon Bolan
Bolan said that Leadership is setting the right priorities, putting the right people in the right jobs and creating the environment for allowing them to achieve their objectives. Bolan is using a democratic form of leadership because he allows for the growth of his subordinates. At some point Bolan gave a good idea on how leaders should act. Bolan understood that leaders should know their people, the capacities of their people and the job that best fit the employee. Bolan has the mindset of having the best environment that will help them achieve their goals. On the other hand Bolan was not able to add communicate effectively to his idea of what a leader should have. Decision-making, teambuilding, and communication skills must be strengthened throughout the organization. Leaders accomplish these ends by applying effective interpersonal skills, the creation of meaning, articulating a vision, using symbols to clarify visions, and inspiring followers (Harris 2002). Leaders need to open up lines of communication with the subordinates so that they can share ideas, objectives or policies. Communication is used to reduce the issues the leader and the personnel has. Bolan was also not able to add decision making capability to his idea of leadership. Decision making happens when there is a need for an immediate action due to an immediate situation. Decision making is a leader’s responsibility but he can make use of a process to involve the other members of his group. The process of decision making reduces the weigh of making a decision and helps in enriching a group’s relationship. Like other leaders Bolan still has some few more things to learn about leadership.
References
Amirault, T 1992, ‘Training to qualify for jobs and improve skills’, Monthly Labor Review, vol. 115, no. 9, p. 30.
Armacost, RL & Jauernig, RL 1991, ‘Planning and managing a
major recruiting project’, Public Personnel Management,
vol. 20, no. 2, p. 118.
Arvey, RD & Raghuram, S 1994, ‘Business strategy links with
staffing and training practices’, Human Resource Planning,
vol. 17, no. 3, p. 58.
Avolio, BJ 2005, Leadership Development in Balance:
Made/Born, Lawrence Erlbaum Associates, Mahwah, NJ.
Bernthal, P & Wellins, R 2006, ‘Trends in leader
development and succession’, Human Resource Planning, vol.
29, no. 2, p. 34.
Black, JS, Gregersen, HB, Mendenhall, ME & Stroh, LK 2005,
An integration of strategy, research, and practice,
Lawrence Erlbaum Associates, Mahwah, NJ.
Boughton, NW, Gilley, Maycunich, A 1999, The performance
challenge: developing, management systems to make employees
your organization’s greatest asset, Perseus Publishing,
Cambridge, MA.
Burke, RJ & Cooper, CL (eds.) 2004, Reinventing human
resources management: Challenges and new directions,
Routledge, New York.
Cheng, Y, Gallie, D, Tomlinson, M & White, M 1998,
Restructuring the employment relationship, Clarendon Press,
Oxford.
Davis, JH & Witte, EH 1996, Understanding group behavior:
Consensual action by small groups, Lawrence Erlbaum
Associates, Mahwah, NJ.
Desai, MS, Eddy, J & Richards, T 1999,’Training systems
management implications’, College Student Journal, vol. 33,
no. 4, p. 500.
Galbraith, JR 2000, Designing the global corporation,
Jossey-Bass, San Francisco.
Gerber, R & Lankshear, C (eds.) 2000, Training for a smart
workforce, Routledge, London.
Guion, RM 1998, Assessment, measurement and prediction for
personnel decision, Lawrence Erlbaum Associates, Mahwah,
NJ.
Guzzo R & Salas E 1995, Team effectiveness and decision
making in organizations, Jossey-Bass, San Francisco.
Haines III, VY & Saba, T 1999, ‘Understanding reactions to
international mobility policies and practices’, Human
Resource Planning, vol. 22, no. 3, p. 45.
Harris, TE 2002, Applied organizational communication:
Principles and pragmatics for future practice, Lawrence
Erlbaum Associates, Mahwah, NJ.
Haus, M, Heinelt, H & Stewart, M 2004, Urban governance and
democracy: leadership and community involvement, Routledge,
New York.
Kulik, CT 2004, Human resources for the non-HR manager,
Lawrence Erlbaum Associates, Mahwah, NJ.
Little, DA 2006,’Recruiting & compensating for key
positions in a competitive market’, Management Quarterly,
vol. 47, n0. 3, p. 26.
Metcalfe, J 1998, Evolutionary economics and creative
destruction, Routledge, London.
Mezias, JM & Scandura, TA 2005, ‘A needs-driven approach to
expatriate adjustment and career development: A multiple
mentoring perspective’, Journal of International Business
Studies, vol. 36, no. 5, p. 450.
Owen, H 2000, In search of leaders, John Wiley & Sons, New
York.
Pernick, R 2001,’Creating a leadership development program:
Nine essential tasks’, Public Personnel Management,
vol.30, no.4, p. 431.
Shell, RL 2003, Management of Professionals, Marcel Dekker,
New York.
Sims, RR 2002, Managing organizational behavior, Quorum
Books, Westport, CT.
Sims, RR 1998, Reinventing training and development, Quorum
Books, Westport, CT.
Sisson, K & Storey, J 2000, The realities of human resource
management: Managing the employment relationship, Open
University Press, Philadelphia.
Thomas, A 2003, Controversies in management: Issues,
debates, answers, Routledge, London.
Tracy, L 1994, Leading the living organization: Growth
strategies for management, Quorum Books, Westport, CT
Walker, JW 1999, ‘Is HR ready for the 21st century?’, Human
resource planning, vol. 22, no. 2, p. 23.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment