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• Collective bargaining: With the order of a union leader, the union collectively doing
bargain with the workplace for their work of interest or on some serious points. Collective
bargaining is the main strength of the union leader.
• Workplace safety: Some organization play important role in the training of the union of
their company. With the improve structure and safe environment of the organization, the
union leader is satisfied with the company and then the union also feel comfortable.
• Union leader ensure that the rules are fully followed in the organization. Because union
leader is in the position to follows the rules by the union members.
Example:
Nelligan O’Brien Payne LLP is a company that is provide the software that is specially design
for the union leader. By using this the union made progress for specifying their goals which is
set by the leader and help to make progress. This system also used for the information of
management, guidance of the work and for training purpose.
Environmentalist leaders.
Environmentalist leaders are those who have the ability of change the workplace by seeing the
change in thee environment. They provide the environmentally friendly products, services and
policies. Environmentalist leaders focus is on environment favour products. Environment leader
are those who see the environmental problems in the light of their experiences. They fulfil their
all responsibilities by providing the solution of the environmental problems.
The environmentalist leaders are in the position of making benefits and play the important
functions which are as follow;
• Technological skills: Environmentalist leaders are ability develop the technological skills
like to monitory the situation and work on the problems in technical ways.
• Short term and long decisions: These leaders are ability to make the short-term decisions
related with the environmental business. They are also able to make the long-term
decisions of organization.
• Analysis power: these leaders are better power of analysis the results with the help of their
skills and abilities which is based on their experience. They also provide the policies that
reduced the environmental problems.
Example:
David Orr is an environmentalist leader. He has written many books for providing the solutions
of the environmental issues. The main purpose of his book is to provide the vision of how to
deal with the problems.
Environmentalist leaders or Union leaders.
With the all above knowledge, here is a conclusion that in the organization there is a need of the
union leader for short-term projects because they are that person who can influence the orders
and sometimes they appear in a very powerful position. It is better to have such person in the
organization so that the organization is not suffer any kind of lose in the future.
But on long-term projects, an organization needs an environmentalist leader because they have
many abilities like skills, experience, knowledge etc which are needed for the progress of any
organization. Environmentalist leaders take the decisions with the changing situations and act
rightly.
Q no.03: Should a CEO be allowed to serve on another company’s board of
directors? Why or why not?
A CEO should not be allowed to serve on another company’s board of director. It may cause
many other conflicts and biasness issues that may cause a heavy loss for both corporations.
• Biased Attitude:
If a CEO of a firm will serve as a board of director to other firm he may be biased for his home
organization where he has been working for so long. There is a chance that he may take
decisions that creates a worth of his home company as compared to other organization. If there
is a biased attitude of CEO he may give more attention to his old company and may not be able
to think mutually for the benefits of both companies.
• Fails to accomplish tasks:
While having responsibilities of two companies the CEO may feel more burdened with this
great responsibility and fails to complete his tasks. There is a possibility that he would lack the
ability to handle the issues of both the organizations and may not give proper attention and time
to both the companies in this way both the companies will suffer a loss and will not be able to
deal with the stability issue.
• Lack in loyalty:
If a CEO of a company keeps more affiliation with his old company then he will not be able to
show his loyalty with his new company as a board of director. If he is not loyal to the new
company he may try to grab all the opportunities for his home organization and provide the key
information to his company so that his company can get more success and take decisions that
may not go well with his new company. He may indulge himself in providing all the secured
data and information to his old company so that the company can get more success and
competitive advantage over other companies.
• Lack in Strategic Decisions:
A CEO who is appointed as a board of director in another company may not be able to take
decisions differently or with diversity. For every new problem coming to a company he may
take similar decisions as he has taken previously. If he will not focus on the needs, type of
scenarios and will take decisions without understanding the need of hour then he will ultimately
take wrong decisions which may have work progressively for his old organization but will not
work for the other company.
• Conflict of Interest:
If a conflict of interest arises while working in the other organization then CEO will not be able
to perform his duties well. He will not take decision that will go with the benefits of the
company and he will be only focused towards his own interests and likings. This type of
approach will definitely lead the company to a great loss.
Q no. 04: What would be the result if the only insider on a corporation’s
board were the CEO?
Corporation’s Board of Directors
Board of directors oversight responsibilities that can be measured and boiled down to the four
most important following thing that they must do.
1) Right leader in the place: The first and foremost is to ensure that the right leader in the
place as CEO of the company and that there are robust effective system in place to develop
future leadership for the management succession and CEOs of the future.
2) Integrity and Accuracy: BODs of any corporation have to ensure that there is integrity
and accuracy in their financial reporting and in their financial planning and there are
system in the place to monitor and control the risk, execution of the plans and
compensation,key personnel kind practice and also financial reporting practices.
3) Participating in corporations plans: To participate in the process of forming the long
term strategies of the corporation and to monitor and approve on annual basis plans and
budgeting and also a major capital expenditure.
4) Always be there whenever crises occur: This is the most important one that is to be there
when crises or problems is to occur to make sure that the action are taken carefully and on
time and take right decision for right action that is done for the right reason.
Insider on a corporation’s board
The result and outcome of corporation performance is positive when corporation choose inside
board as CEO. Most of the company prefer to hire inside director as CEO of their corporation’s
board because they are well aware and know the management system of the corporation in
better way. They can control and handle each activity carefully. They perform and take action
according to the culture of the company. Moreover, if the insider on the corporation’s board are
CEO they are more beneficial to corporation as internally hired CEO are cheaper than the
external once and also have less influence on the stock rate/price during company’s transit
period.
If the corporation has stable business and has valuable long term strategic planning, clear the
sense of strategic vision then the inside on corporation board will be the best and good choice
as CEO
Example:
Microsoft is one of the most large business corporation. According to their CEO, Microsoft
have always good experience with their inside board of directors. He said that CEO that inside
on corporation’ board should always hire or choose by the corporation because they are more
familiar with culture and values of their company. The professor Yan Antea Zhang (Rice’s
Jones graduate School Of Business) said, Microsoft always prefer to choice board of directors
from the Inside corporation or business so the chance of error, mistaken cost and other type of
errors could be minimized. Today most of the family companies are introduced in which most
of the members at executive level are family member.
There are 2 most high rated benefits are:
1. All family member are come with same vision and that is to gain profitibility and increase
their personal wealth
2. Make their future generation strong.
What is the result if insider on a corporation’s board will the CEO?
The corporation result could be positive or some time negative. When we talk about their
positive side. Corporation feel comfort to deal with their inside board as their activities and
action are easily assessable.Corporations need Board of Directors so that they fulfil their
responsibility to protect the interest and rights of shareholders. As insider Board of Directors
ensure the reliability and integrity of their annual financial reports consisting of details of
financial as well as operational matters in a best way. Some time result could be negative as
insider board become biased in their decision making and are not focus on the company’s
overall gaols and don’t care of their people and shareholders but care of their personal interest
only.
Q no. 5: Should all CEOs be transformational leaders? Would you like to
work with a transformational leader?
Leader is person who always encourages his employee to work hard, provides them a direction
that how they can accomplish their task effectively and efficiently. Leaders act as the role
model for their people as well as change catalysts and the innovators
Transformational leaders
The transformational leaders are those who motivate their employees, provide them
opportunities to share their ideas or thoughts, provide them a platform where they can easy
communicate and share their problems related work, participate in decision making process so
that they get the maximum output and desire level of the performance. To keep the company
sustained and remain competitive in the changing environment of industries and the markets ,
transformational leader play a vital role as they always inspiring a positive change.
Transformational leadership
Sharing of
knowledge
CEOs of any firm and business corporation should be transformational leader. If the CEOs of
the corporations do not have transformation style of leadership then their organization never
become a learning organization or can achieve their desired result. In transformation style of
leadership leaders actually start to identify, observe and focus on what their employees are
needed and how they get satisfied form their work and environment under which they work.
CEOs should be transformational leader because they can help their people to transform them
into what they want to be. Everyone who work in the particular organization want to be valued
and recognized by their firm. The organizations in which CEOs are not focusing on needs and
wants of their team and employees and do not understand their problems related to work as well
as personnel, are not outperformed organization, employees lose interest in their work, lose
their interest what they can deliver for the organization. CEOs of every organizations want their
employee to put their maximum effort in the work in order to get desire results and objective
but it is not possible if employees are not motivated , are not appreciated and rewarded.
CEOs as transformational leader must keep following points in their mind:
• Provide the opportunity to share knowledge throughout the organization.
• Never discourage or punish for failure.
• Always admire and appreciate the work of their employee so that they never disappoint and
become more motivated.
• As a transformational leader, CEOs continuously evaluate the firm performance and
employee performance either they need improvement or not.
• Make necessary change if required.
• Give them direction and clear the vision
• Make their employees passionate to go and deliver outstanding performance
• Adopt a proactive approach that makes firm’s future better.
CEOs really have to focus at what are their employees want because when CEOs (as
transformational leader) give their employees what they want then the employees have to give
what leaders want in return. For example; Dick Costolo-CEO of the Twitter stated that as leader
you have to deeply care about your people while not worrying or really even caring about what
they think about you. Once an interview Dr. Adnan Chilwan the CEO of first Islamic bank in
the work (Dubai Islamic bank), said that “I called myself as leader but I am not actually if I do
not hav ea team that are working with me. So as CEO we have to behave like transformational
leader. Transformational leader is to look at their people what they want, what type of
knowledge, skills, ability, competencies or a training they required to effectively perform their
task”. With the transformational style of leadership, CEOs of the corporations have to build
strong understanding with his people, have ability to demonstrate what they want to achieve,
how they can do so. CEOs of every firm should have transformational style of leadership so
that they can easily deliver their strategic vision and how to achieve competitive advantages.
Case study
The CEO of the Pepsico, Ms Indra Nooyi is consider one of the most popular and strong female
business leader in the world. She joined the Pepsico in 1994. She set the true example of
transformational leader.She walk barefooted around her office and singing. She actually knew
how to build an environment where everyone willing to perform and enhancing their
productivity. She gave the vision in such a manner so that everyone in the organization achieve
that vision easily and that is to be “Performance with the purpose”, she defined three most high
ranked factors that help them to achieve their vision:
1. Sustainability of human
Nooyi believes that the care of their employees and their customers should be the ultimate
challenges for the CEO. The product and services that company deliver must according to
their customer’s needs and demand.for sustaining the human it is important to understand
the internal and external factors. As Transformation leader CEO must care about every
little thing that could be the cause of failure and success. Nooyi as CEO said that give your
people what they want then they will give you what you want. Pepsico as food beverage
provide the healthier product to their customers and want to increase their revenue of
nutritionist food.
2. Sustainability of environmental factors
Environmental factor is also most important challenging for the CEO, Nooyi ensure that
Pepsico don’t harm natural environment and maintain healthy cooperative environment
where every employee are motivated and are directed toward their objectives.
3. Very person in the firm have to perform
CEO as transformation leader want their employees to help him/her to achieve goals and
objectives. If the CEO of the firm provide supportive culture in which employee feel safe
and comfort regarding their job then they automatically perform with 100% effort. As
happy employee is the productive employee. Ms. Nooyi said that she always tried to
encourage their people and this type of supportive culture groom their mental and
emotional abilities
Work with Transformational leader
Every person want to get appreciation and get reward of their efforts. We always prefer to work
for transformation leader because transformational leader is that person who can lead our
performance at desire level, provide the opportunity in which we can freely discuss ideas and
share our knowledge and accept the changes, provide high level of encouragement, and
continuous evaluate and improve our performance.