‘’ A FAMOUS CONTEMPORARY LEADER “ PDF

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MGT420:PRINCIPLE AND PRACTICE OF MANAGEMENTASSIGNMENT 1:‘’ A FAMOUS CONTEMPORARY LEADER “PREPARED BY:PREPARED FOR:AHMAD NIZAM B MOHD YUSOFTABLE OF CONTENTSNAME ANISSA AFRINA BT JULIAZMINMATRIC’S NUMBER 2020477212CLASS AS2012-ANo Contents Pages1 Introduction32 Leader’s background4 - 63 Contents: i) L...

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MGT420: PRINCIPLE AND PRACTICE OF MANAGEMENT

ASSIGNMENT 1: ‘’ A FAMOUS CONTEMPORARY LEADER “

PREPARED BY: NAME

ANISSA AFRINA BT JULIAZMIN

MATRIC’S NUMBER

2020477212

CLASS

AS2012-A3 PREPARED FOR: AHMAD NIZAM B MOHD YUSOF

TABLE OF CONTENTS

1

No

Contents

Pages 3

1

Introduction

2

Leader’s background

3

Contents:

4-6

i) ii) iii)

Leader’ traits and skills Leader’s behaviour Leader’s power

7 8 9 - 10

10 4

Conclusion 11

5

References

INTRODUCTION

2

A leader is someone who directs a group of people toward a common objective. Being a leader does not imply having a position, title, or seniority. Many people believed that if they held a higher position, they would be automatically assigned as a leader. Most people are assigned because of their previous job success rather than their leadership potential. To be a leader, one must be capable of guiding and influencing a group to work in any situation to achieve their objectives. A successful leader would have a vision to build a team and strive to meet goals. To be a leader, they must indicate their ability to lead their group and set a good example that can inspire and influence others to work confidently. This demonstrates that the success of a leader is determined by how well they lead. A team will only be successful if their leader's ability allows them to do so (Morgan, 2020). Finally, a leader must possess all the leadership qualities for their team to be able to meet the company's requirements.

Meanwhile, Professor Kotter defined leadership as the process of bringing the community together to achieve goals, which requires buy-in, communication, motivation, and inspiration. However, it is difficult to make any leadership abilities function if the subordinates refuse to listen to the leader. Leaders must focus on people's capabilities because the style is primarily reliant on the vision-buying team. In a sense, rather than managing operations, leadership must manage individuals and empower them to fulfil the company's objectives.

LEADER’S BACKGROUND

3

Name

Howard Schultz

Born

July 19, 1953

Education

Northern Michigan University (BA) B.A. in communications.

Occupation

 

Businessman Author

Known for

 

Leadership of Starbucks Ownership of Seattle Supersonics

Title

Chairman emeritus, Starbucks

Years active

1986–present

Parents

Fred and Elaine Schultz

Howard struggled to find work after graduation. His first job was going door to door selling office equipment. Given the fact that he receives 50 cold calls every day, Howard

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continues to work because he enjoys interacting with people. Even though Howard enjoys his current job, he has decided to look for alternative opportunities at different organisations to obtain more experience and enhance his skills. After that, Howard Schultz worked for a European firm that produced kitchenware in the United States. Starbucks, a tiny coffee shop in Seattle, Washington, is one of the company's most devoted clients who buys the company's housewares on a regular basis. Howard was on a business trip to Italy with Starbucks in 1983. Even though Starbuck was a small firm with only a few outlets at the time, he found he was selling more coffee makers to them. He had his first espresso at Starbuck as soon as he arrived in Italy. The smoothness of the espresso, the barista who made it, and the café environment all wowed Howard. Howard shared his vision and point of view, emphasising the importance of offering a better environment for customers to enjoy their coffee, as Starbuck's seating was limited at the time. Starbuck's founders, on the other hand, were uninterested in his ideas (Schultz, My Story). Howard Schultz opened his own coffee shop, but it was not doing as well as he had wished. Howard survived on his wife's salary for a year. In 1987, he had three espresso bars called II Giornale because of his hard work and determination. After 2 years successful, Howard Schultz decided to buy Starbucks after finding that the company's owners wanted to sell the store, the roasting factory, and the brand itself due to financial difficulties. After combining the two companies, he was named CEO and Chairman of the Starbucks Coffee Company. He transformed the company into one that generates long-term profit and growth. Starbucks ranked fifth on Fortune's 2018 and 2019 List of the World's Most Admired Companies. In 2018, Howard Schultz formally stepped down as chairman of Starbucks to become chairman emeritus. Until recently, he was known as a driving force behind Starbucks' growth into a global coffee chain with over 23,000 locations in 72 countries (Schultz, Pour Your Heart Into It, 1999).

Founders Zev Siegl, Jerry Baldwin and Gordon Bowker in Seattle, WA on February 1979 Courtesy MOHAI

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Starbucks Coffee Pike Place store in 1987

An exterior of Starbucks in 2020

Starbuck’s Logo

CONTENTS 6

I.

LEADER’S TRAITS AND SKILLS

A leader is someone who finds opportunities and knows when to seize them. To be a leader, it must understand how to communicate and interact with groups to gain group members' trust in order to achieve the company's goals. As a result, to be a successful leader, a leader must possess all the traits and skills listed above.

1. Intelligence Howard Schultz has always emphasised the value of intelligence. Howard Shultz’s initiative to improve Starbucks as a location for the community to enjoy their coffee in a café with a romantic ambience exemplifies this leadership. Howard believes that a simple cup of coffee can bring people together, and he is dedicated to making Starbucks a world-class coffeehouse. Because consumers were unable to sit at Starbucks at the time, and coffee was only available for take-out, Howard addressed his dissatisfaction with the company to the creator, Jerry Baldwin, Gordon Bowker, and Zev Siegl.

2. Maturity

Howard Schultz demonstrated his ability to manage Starbucks during a crisis. A Starbucks had to face many difficulties because of many mistakes in decisionmaking, but Howard always accepted responsibility for his actions. The financial crisis, or the global financial crisis, occurred in 2008, with its effect almost globally. With Starbuck growing bigger, the better their coffee and the better the price. As the price of coffee began to rise, people chose to buy coffee at a less expensive price. Therefore, Starbuck also experienced an economic slowdown in 2008. Howard Schultz is never afraid to admit his mistakes and work to repair the damage. He immediately apologises to the employees and their families for the company's failure to meet their expectations. As a leader, Howard accepted blame and made promises to change the situation they were in at the time (Shezray Husain, 2014).

II.

LEADER’S BEHAVIOUR

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Leadership behaviour refers to the characteristics and actions that contribute to an individual's effectiveness as a leader. Behaviour is the process by which a person guides, directs, and influences their subordinates to achieve the goals of the organisation. When a leader has a vision for an organisation, they will use this behaviour to motivate others to action.

1. Relationship- oriented Style

Motivating, supporting, and developing individuals and teams is the focus of the relationship-oriented style. This type of leadership aims to develop meaningful relationships with its employees to enhance the performance of its employees. This type of management will maintain good relationships between leaders and subordinates (Jonathans and Ling).

Starbucks employees admired Howard Schultz as a great leader, as everyone knows. Therefore, Howard care to his employees. Besides his family, he prioritised his employees. Starbucks was one of the first companies in America to provide health insurance to all its employees, including part-time workers, in 1988, a benefit that was unheard of at the time. As a result, Howard desired to provide better health care to his employees by developing a health-care programme. All of them admitted from the higher to the lower Hierarchy that Howard took great care of their health and care. Thus, Howard was respected by all Starbucks workers (Schultz, My Story). The bond of trust and confidence he developed with the company's employees, according to Howard, is the biggest achievement he is most proud of. Howard Shultz is always concerned about his employees' whereabouts and well-being.

In addition, Howard said that treating employees nicely should not be viewed as an added cost that cuts into profits but as a powerful energizer that can grow the enterprise into something greater (Schultz, Pour Your Heart Into It, 1999).

III.

LEADER’S POWER

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The influence leaders ever have on their subordinates is the leadership power. It can persuade those with authority to follow what the leader demands of them because the leaders are in charge. They must have kinds of powers that can encourage themselves and the team to achieve a goal to be a good leader.

1. Expert Power

The definition of expert power is a base of power derived from knowledge or perception of knowledge so that subordinate will follow an instruction or order. Expert power exists when the subordinate’s trust their leader in handling any problems because they believe that the leader has skills and knowledge compared to themselves (Expert Program Management).

From the beginning of his leadership at Starbucks, Howard already set up his objectives and goals that the company need to achieve. All the employees put all their trust in him because Howard run a coffee shop before. In addition, his coffee shop was a success. Therefore, they believe that Howard might want Starbucks to reach the peak as his coffee shop. Howard makes sure to use his power as efficiently as possible so that he does not make any mistakes, even though when he first became CEO of Starbucks, most of the employees had a smug look of doubters of Howard's dreams. Howard managed to persuade the staff that he had previously worked in their position and shared their passion. As a result, Howard promises that he will not disappoint them and that he intends to build a national company whose values and guiding principles all of them can be proud of.

2. Reverent Power

Referent power defined as the ability of leader to inspires and influence his subordinates to run a business. This type of powers comes from the admirations of subordinates to the leader. Even though it is not the formal power however it can be used as a status that shows the leader as a role model (Expert Program Management).

Howard Schultz proved referent power because of the respect he obtained from his colleagues and employees. They trusted and supported the direction Starbucks was moving in, based on their feedback at the open forums. This can 9

be seen in how well Starbucks is doing now compared to when it first opened. After 5 years leaving Starbucks, he came back as CEO. As soon as he came back, he noticed there were so many changes to Starbucks, not from the interior designs or how the coffee taste but by how terrible morale at Starbucks was. Divisions starts to grow in company. The people were cynical and wary, beaten down and unappreciated. Howard decided to be honest with his staff and share his intentions and excitement with them to solve all of the issues that occurred in the company. Furthermore, he follows the path he set up the moment he walks into Starbucks and delivers on what he promised. This shows that Howard Schultz was a quality leader and many people put their trust in him.

CONCLUSION

As a quality leader, Howard Schultz was Starbucks' key to success. This is due to the power he wields in directing his strategy till Starbucks becomes well-known and multinational. Even though Howard has a different leadership style than other CEOs, he always puts his business first. Howard Schultz prioritised development because he saw engaging, supporting, and developing his followers as the most important aspect of Starbucks. With such leadership skills, it is no wonder that the company has retained its position as the most profitable coffee shop in the world. To conclude, leadership is needed in almost every aspect of life. A door to success is in the good leadership characteristics of a leader is related to the success of an organization. Using Howard Schultz as an example, one must really have to know how to fully utilize their characteristics to be a good leader to increase their future performances. This is because by being the leaders are by far one of the key factors that can drive an organization to either success or failure. Therefore, it can be concluded that a leader is the most important asset in an organization.

REFERENCES

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Jonathans and Ling. (n.d.). Relationship-Oriented Leadership. Retrieved November 15, 2020, from https://jonathansandling.com/relationship-oriented-leadership/

Morgan, J. (2020, January 6). What is Leadership and Who is a Leader. Retrieved 2020 https://www.chieflearningofficer.com/2020/01/06/whatis-leadership-and-who-is-aleader/

Schultz, H. (n.d.). My Story. Retrieved November 11, 2020, from Howard Schultz: from https://www.howardschultz.com/my-story/

Schultz, H. (1999, January 13). Pour Your Heart Into It. Retrieved November 11, 2020, from Google Books: https://books.google.com.my/books/about/Pour_Your_Heart_Into_It.html?id=D1lrAw

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