Management And Leadership Issues at Woody’s Veneer
The investment in any business is intended to increase the income of the investors. Individuals and groups invest their capital because they have an urge to add something to their earnings. Investment has numerous advantages, both to investors and other members of the public. It creates employment and promotes the economic power of individuals and the country (Gomez, Luis, David, and Robert, 2008). However, investments must be safeguarded and well managed to yield the expected benefits. Lack of effective management as well as leadership leads to business failure and financial loss to investors. The investors at Woody’s veneer had a good business idea, but their investment has taken a trend that might lead to loss of their investment. Several issues need to be addressed if the business in the factory must be restored to the normal track.
The simple audit of the business shows that the factory has been losing money, operations cost has been increasing, and the production has been declining. These are clear indicators of poor management and leadership. Lack of effective and strategic management is evident in the factory. Furthermore, effective corporate governance seems to be lacking in the factory. The occurrence of conflicts between the executives, stealing of factory’s products by employees, and lack of cooperation between the managers and subordinates designate the total failure of corporate governance.
The investors’ money is at risk if the issues leading to managerial and operational downfall will not be addressed. The loopholes for money loss must be immediately identified and sealed with long-lasting strategies. Also, the management strategies must be revised as a matter of urgency. Deficiencies in the management are the main causes of what is happening in the factory. Poor communication among the executives and between the executives and employees is one of the consequences of ineffective management. The failure to address the concerns of the employees as well as poor supervision has led to the loss of some products. Additionally, resources mismanagement has significantly contributed to the existence of slacks, resulting in declining production. The investors of Woody’s veneer must open their eyes. The factory is at risk of closure due to managerial and leadership deficiencies. The administration needs to be restructured to save the existing resources and restore normalcy in the business. Long- term solutions to the troubling occurrences that limit the effectiveness of managerial functioning must be sought. In nutshell, immediate actions are needed to prevent further deteriorations of factory’s performance and to save the investors’ funds against increasing exposure to risks.
Differences between management and leadership
Leadership and management are two crucial parts of any organization. They constitute the major pillars of the success of most business organizations. Confusion often arises as to what can be termed as leadership and management function since the two tend to serve virtually the same purposes (Deslanders, 2014). However, various distinctions exist between leadership and management. Management is a process while leadership is the act of leading. Management entails dealing with various things in the organization to facilitate the realization of its objectives. Essentially, management forms a part of factors used in production, which in combination with other inputs support the production activities (Deslanders, 2014). On the other hand, leadership entails the power to utilize individuals’ talents and understanding as well as leveraging the talents of other team members in an organization to effectively accomplish its mission. It involves expressing unique personality to pursue improvements to the work environment. According to Rasim (2008), management sets the objectives and vision of organizations while leadership mobilizes the actions to achieve the set goals.
Effective networking is fundamental to exercising efficient management. The managers should make use of some leadership skills to stimulate networking and improve the performance of their organizations. Thus, the factory management should use the leadership skills to address communication problems. The managers should call the floor workers and ask them to present the problems that make them not to perform well. Since leadership involves an understanding of business challenges and using strategic approaches to solve them, managers should analyze the causes of poor communication between the executives and floor workers to enhance networking. Leadership entails understanding and addressing the weaknesses. Top managers in the factory are very abrasive to other employees. This is one of the causes of poor networking. Therefore, the management should utilize the leadership skills to eliminate the abrasiveness of managers towards floor workers as a way of promoting effective networking.
References
Deslanders G., (2014). Management in xebophon’s philosophy: a Retrogressive Analysis, 38th Annual Research Conference, Philosophy of Management, Chicago, USA.
Gomez, M., Luis R, David B. and Robert L. (2008). Management: people, performance, change, 3rd edition. New York, New York USA: Mc Graw-Hill.
Rasim, S. (2008). The Role of Psychology in Human Resources Management. Europe’s Journal of Psychology, 4(4).
