Team “A” reveals the circumstances regarding the failure analysis of an hotelier and how a CEO leads an organizational change processes to prevent an impending failure of the company. To counterbalance the hotelier business failure analysis, the team discusses the success analysis of Apple Inc. The team identifies each organization’s mission and vision statements with a behavioral theory explanation discussing the success and failure indicators. Research focuses on which specific organizational behavior theories could possibly explain the company’s failure or success, bureaucrat’s roles, and organizational structure and culture. Leading organizational change identifies the most vital areas for change, potential barriers in the changing process, addressing political and power issues, and steps implementing the organizational using the John Kotter’s 8-step plan. Business Failure Analysis
Apple’s Mission statement
Apple does not clearly define a mission statement. According to Farfan (2014), “Apple ends their press releases with a statement that resembles what a traditional mission states is expected to be…Apple commits to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and Internet offerings” (The Mission Statement, Global Vision, and Values of Apple, Inc.). Vision. Tim Cook, current CEO of Apple, does not have a simple vision for the company. During a 2009 interview, Cook mentions several values behind the company leading the vision Cook expects; “We believe that we are on the face of the earth to make great products and that’s not changing, we are constantly focusing on innovating and we believe in the simple, not the complex” (Hull 2012, para. 5). Apple’s Success. Apple’s approach to success bases itself on a redesign by the former CEO in 1997, Steve Jobs. Jobs partners with several organizations such as Microsoft and CompUSA forming a strategic alliance with Apple products.
According to Finkle and Mallin (2010), Steve Jobs states “the reason why his companies have become so successful is because they hire the very best people in the world to work for them; his business savvy, negotiation skills, and propensity to take risks enable him to transform technology into companies that flourish” (p. 38). Apple’s leadership style is a major contribution in the company’s success. Charismatic, inspiring, flexible, receptive and free spirit describe former CEO Steve Job’s; constantly challenging employees and influencing a team environment where individuals can voice ideas (Toma and Marinescu, 2013). Apple’s Successful Behavioral Theories. Two behavioral theories contributing to Apple’s success during Steve Jobs tenure are the top-down creative process and situational “Zen like” transformational leadership style Job’s runs the organization with. Eliminating layers of bureaucracy enables Apple to conform in a transitioning global market possessing pioneering the technology into new markets. Top-Down Management.
During Steve Jobs tenure at Apple, the company incorporates a strong top-down creative process eliminating bureaucracy. This enables information to go directly to Jobs and then filters to sub-teams as specific assignments for completion (Robbins & Judge, 2013, p. 506). This process eliminates a top-heavy culture of management increasing product to market response time. “Organizational behavior theories mirror the subject matter with which they deal, and people are complex and complicated” (Yukl, 2013, p. 15). Situational Leadership. Jobs address the market with a leadership style conforming to market demands. Eliminating a traditional culture of managers within Apple enables Jobs to manage Apple directly and effectively on a global scale. The situational leadership style works for Job’s as the passion toward the company, consumers, and operations are thought of on a global scale. on a cross functional global scale enables the company to adapt to needs and demands on a global scale. Apple’s Organizational
Leadership. Apple’s role of leadership during the Steve Jobs era concentrates on simplification; taking responsibilities end to end; when behind, leapfrog; put products before profit; don’t be a slave to focus groups; bend reality; impute; push before perfection; know both the big picture and the details; tolerate only “A” players; engage face to face; combine the humanities with the sciences; and stay hungry and foolish” (Isaccson, 2012). Management. Apple’s managers posses extensive knowledge about the services and products competitors are providing for the market. This ability enables the organization to formulate new ideas raising the bar for their competitors; Apple takes innovation to a new level. Managers and leadership both seek new ideas taking technology into completely new areas. This in conjunction with a completely lean management approach contributes to extraordinary productivity at Apple (Sullivan, 2011).
Organizational Structure. Apple’s organizational structure is simple. “There are no committees at Apple, general management is frowned upon, and only one person, the chief financial officer, has a responsibility for costs and expenses that lead to profits and losses” (Lashinsky, 2011). Culture. The culture at Apple is very informal and demanding from employees. Rather than a work/life balance many organizations proudly emphasize, Apple makes it clear throughout the organization that it seeks committing, extremely hard-working individuals. An example here on the company website proudly states: “This isn’t your cushy corporate nine to fiver” (Apple, 2014). This reinforcement repeats itself throughout the website instilling a demand for a culture to share an obsession getting every last detail right. “Leave your neckties, bring your ideas” (Apple, 2014). Innkeepers USA
Trust Objectives and Mission
Since its bankruptcy and other acquisitions, Innkeepers USA Trust objectives and mission possess no clear definition. Innkeepers USA Trust was widely known as one of leading owners of extended-stay and upscale hotel properties across the United States. In reference to O a real estate investment trust (REIT), Innkeepers USA Trust owns interest in several hotels in many states. The organization’s focal point at one time is to acquire, develop, rebrand, and reposition hotel properties. This organization’s general purpose, prior to failing, is to acquire and develop real estate investments increasing shareholder profit. Behavior theory predicting Innkeepers, USA Failure
The company’s failures are a result of cutbacks on both business and consumer levels. With decreasing travel, increasing fuel costs, rising energy expense, an abundance of new hotels entering the market, and over $1 billion in debt, Innkeepers USA was forced to file bankruptcy (McCarty & Kary, 2010). Preventing the failure of Innkeepers USA
Let’s look at some of the vital areas needing change at Innkeepers USA. “As property values fall and business dry up during the recession, Innkeeper USA cannot meet financial obligations paying down loans (Aquino, 2011). The organization must restructure and work its way out of bankruptcy. Evolving technology, world cultures, and property employee support need attention in order for the company to be successful. Through the use of evolving technology, the company creates the Hilton performance Advantage system. This system includes a global online service for customers and property owners. Specific customer service sites address every company location throughout the world and staff with employees who are fluent in their native languages. A global e-commerce team and revenue management consolidation center allows property managers to seek guidance from staff specializing in specified sales management and revenue topics. These teams assist with research, strategies, and management needs for individual property owners. Barriers to Change
Technology education is one of the largest challenges. The organization organizational strategies to grow the company back to a profitability and sustainability state. As a result of the recession, most organizations decrease and terminate employee travel to minimize expenses. As a result, opportunities for online growth increase reaching customers on a global scale. Cultural issues need attention. Employees fluent in many languages are made available to assist customers in these cultures improving customer care. Each individual property needs evaluations to assess the needs of the demographics; properties cannot be cookie cutter designs. Employee support services create a cultural balance in the company. Educational support is on line; anytime, anywhere a company employee can receive the guidance they seek without waiting. This results from the installation of newer technologies. Power and Political Issues
As Innkeepers USA Trust struggles with decreasing room revenue, debt burdens, and liquidity constraints, the real estate investment trust finds itself with power and political issues. Two perspectives of power issues in this organization are the finite and infinite perspective of power. The finite perspective of power is the competitive spirit of an organization that spurs productivity and focuses on winning. Through its competition and power perspective, the organization will ultimately diminish returns; in which Innkeepers USA Trust finds itself in this power struggle by oversupplying new hotels while room revenues are stagnate. Understanding Innkeepers USA Trust power and political struggles, issues require the infinite perspective of power and expert power. An infinite perspective of power seeks to understand that winning or losing is not the main issue. The purpose of an infinite power is to sustain. To sustain Innkeepers USA Trust, Learning Team A suggests acorporate strategy approach basing this on skill and knowledge. An example is Apple’s previous CEO, Steve Jobs. Job’s possess expert power. Job’s first hand involvement with many of Apple’s innovations creates a dependency the company relies on propelling innovation. According to Robbins & Judge (2013), expert power is one of the most effective bases of power to influence a company and is positively related to employee’s satisfaction (p. 416).
To successfully implement change within Innkeepers USA Trust, Learning Team A suggests following Dr. John Kotter’s eight-step process. According to Kotter’s process, a majority of organizations fail because they do not take a holistic approach that is required to see the change (Robbins & Judge, 2013, p.586). The team will establish a sense of urgency creating a compelling reason as to the change, form a powerful coalition leading change, create a new vision to direct change, plan for, create, and reward short term wins that move the organization toward the new vision, reinforce the change by demonstrating the relationships between new behaviors and organizational success (Robbins & Judge, 2013, p.586).
In conclusion, there are many factors in consideration when developing and maintaining a successful organization. It’s important to develop a strategy to meet organizational goals. Looking at the success and failures of existing organizations is an invaluable strategy in developing and maintaining organizational victory. Team “A” reveals the circumstances regarding the failure analysis of an hotelier and how a CEO leads an organizational change processes to prevent an impending failure of the company, which specific organizational behavior theories could possibly explain the company’s failure or success, and the organizational change identifying the most vital areas for change with recommendations from John Kotter’s 8-step plan.
Aquino, J. (2011).15 Companies that died in the past year: Business Insider, Retrieved June 24, 2014, from http://www.businessinsider.com/15-companies-that-tanked-2011-3?op=1#ixzz35z4L2CQt Farfan, B. (2014). Apple Inc. mission statement is not very innovative and barely a mission at all. Retrieved from http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Apple-Inc–Mission-Statement.htm Finkle, T. A., & Mallin, M. L. (2010). Steve Jobss and Apple Inc. Journal of the International Academy of Case Studies, 16(7), 31-40. Hull, P. (2012). Be visionary. Think big. Retrieved from http://www.forbes.com/sites/patrickhull/2012/12/19/be-visionary-think-big/ Issacson. W. (2012). The Real Leadership Lessons of Steve Jobss.
Retrieved from: hrb.org/2012/04/the-real-leadership-lessons-of-steve-Jobss/-The Real Leadership Lessons of Steve Jobss – Harvard Business Review Lashinsky. A. (2011). How Apple Works: Inside the world’s biggest startup. Retrieved from: fortune.com/201/08/25/how-apple-works-inside-the-worlds-biggest-startup-2/-How Apple works: Inside the world’s biggest startup McCarty. D. & Kary. T. (2010). Apollo Investment’s Inkeepers USA Trust Files for Bankruptcy in New York. Retrieved June 29, 2014 from:
www.bloomberg.com/news/2010-07-19/inkeepers-usa-apollo-investment-unit-files-for-bankruptcy-in-new-york.html Robbins, S. R. & Judge, T. A. (2013). Organizational behavior (15th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall. Sullivan. J. (2011). Talent Management Lessons from Apple: A Case Study of the world’s most valuable firm. Retrieved from: www.ere.net/2011/09/12/talent-management-lessons-from-apple-a-case-study-of-the-worlds-most-valuable-firm-part-1-of-3/ Toma, S., Ph D., & Marinescu, P., Ph D. (2013). Steve Jobss and modern leadership. Manager, (17), 260-269. Retrieved from http://search.proquest.com/docview/1518528902?accountid=35812 Worlds most admired companies. (2011). Retrieved from http://fortune.com/worlds-most-admired-companies/apple-1/ Yukl, G. (2013). Leadership in organizations (8th ed.). Upper Saddle River, NJ: Pearson /Prentice Hall. Retrieved from: https://newclassroom3.phoenix.edu/Classroom/#/om3.phoenix.edu/Classroom/#/contextid/ (LDR/531)/ context/ cdg/ view/activityDetails/activity/270c6ef7-2f01-4c47-8c71-5ba7a9d19509/ expanded/False