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发表时间:2014-11-15 11:04:52

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Table of Contents
Executive summary
Introduction
Discussion and Analysis
The changing of Symond’s leadership style
Potential benefits and problems of Symond’s changes
The future of Aussie
Conclusion
Recommendations
References

The Management changes and development of a company

Executive Summary
Human Resource Management is a very important process to a company’s internal system. Aussie Home Loan was used to be a successful company in non-bank home loan market. The CEO of Aussie, John Symond has a charismatic leading style, and the company got a great success by his management. But since 1998, the company encountered a series of problems. After realizing the real and main reason, Symond took a set of changes on his management. This report will give certain appropriate analysis and discussion to the case of Aussie. Firstly, we will review the development history of Symond’s company and how has Symond’s leadership style changed. Consequently, the report will discuss the potential benefits and problems, which engendered by the changes. In the discussion, some related management theories and example would be given to support my views. Lastly, we will give some suggestions and recommendations to the company’s future development.
Introduction
Human Resource Management is a so important aspect in a company’s whole management system. Human Resource is a source of competitive advantage. It helps both individuals and organization to improve their practical competition ability through a series of appropriate measures. Especially, for the company, which encountered many problems that engendered by the managing mess, such measures could help the company realizing its restructure and revitalizing. Like the Aussie Home Loan, the CEO and owner, John Symond established the company and made it used to obtain a significant profit in the business. But as the more and more increasing business and the international expansion, the company faced a series of serious problems gradually. The profits got a surprised drop only in one year. After having cognizance of the main reasons of such problems, Symond took a set of reforming measures and changes in his ordinary management. Accordingly, this report will provide a pertinent analysis to the company’s growth and Symond’s leadership and management. And also appropriate suggestions and comments will be given next. Based on the analysis and discussion, we will draw on the experience of the Symond’s management, including his charismatic leadership style and the imperfect in his reformation. During the analysis and discussion, certain related examples and Human Resource Management theory will be used to support the views that suggested in the report.
Discussion and Analysis
The changing of Symond’s leadership style
According to the introduction of Symond’s company in the information, in the early period of Symond’s company the new location and products demand was in a good business, the profits was consequently more and more increased. This was mainly because of the energetic, hands-on and charismatic leadership of Symond in his practical management.
Firstly, He was in constant contact with staff members throughout the organization, involved in all aspects of managing the business. It was useful to managers to establish a harmony relationship between employers and employees. Elton Mayo (1933), the so-called Father of Hawthorne Studies, suggested that the improvement of a enterprise’s productivity should more depend on the elements which concerns about psychological, emotional and so on. A harmony relationship environment between manager and employers is very helpful to the manager communicate with staff better. Thus, the working activity of employees would be promoted (2002). Secondly, based on good contact with staff, Symond also give motivational talks to salesman that concerns on his life experiences. Salespeople could be motivate by his succeeded experience and encouraged by the manager’s regard and guidance. Such leader measure is also a part of the employee’s career skills promotion.
In addition, on the beginning of the company’s circulation, Symond aggressively used television advertisements and publicity to paint himself as the ‘battler’s friend’ ready to help the mums and dads of suburban Sydney in their quest for a good-value home loan. Although a high-performing manager’s duties are mostly contained the following aspects:
build working relationships with others
help others develop their skills and performance competencies
foster teamwork
create a work environment that is performance-driven and provides satisfaction for workers
Besides of these aspects, how to make a decision that could enable the company stepping into good circulating condition is a very important ability of a high-performing manager. As a top manager, Symond has taken a significant contribution to the starting of the company.
But as the information told us, Symond’s company encountered serious problems since 1998. Although, its business was increased 40 percent in comparison with 1997, Aussie’s profits dropped from $8 million to $4.5 million. It seemed to couldn’t cope with the increasing volume of business and unable to compete with the banks’ hit- back. In conclusions, the most main reasons of these problems are:
1. Its internal systems were not coping with the volume of business.
2. Lack internal expertise to ensure that it retained its competitive edge
3. Symond based many of his decisions on ‘gut feel’ and experience.
4. There is no a cooperated and effective manager team in the management system.
Based on recognizing such reasons, Symond took a series of measures to change the present condition of his company. He realized that Aussie needed greater coordination and expertise. So, he sought the assistance of management consultants to suggest ways of restructuring and revitalizing the company. And hired a number of experienced specialist managers, devolved authority for many operational decision and introduced regular strategic planning conferences. Furthermore, Symond introduced regular employee surveys to monitor employee views and opinions. And new processes were introduced to ensure that all new proposals were considered through appropriate business measures, no longer based on the ‘gut feel’.
Potential benefits and problems of Symond’s changes
All of Symond’s reforming measures aimed to improve the internal system of Aussie’s management. Many of these changes are tally with the main views of some scientific theories, and are helpful to the company’s ordinary operation.
Firstly, the assistance of management consultants is very useful to the company’s restructuring and revitalizing. Strategic human resource management is related to the whole circulation and operation of an enterprise (2002). It links Human Resource to the organization’s corporate and business strategies. Management consultants could give certain scientific and appropriate suggestions to the company’s strategies.
Next, Symond hired a number of experienced specialist managers. Henri Fayol (1916), who developed the ‘General Management theory’, attached his importance to the practical management process and suggested that there were five major functions in managing: planning, organizing, directing, assorting and controlling. So, the spirit of creation and teamwork is very important to the management process and even the employee’s working.
Lastly, new processes were introduced to ensure that all new proposals were considered through appropriate business measures, no longer based on the ‘gut feel’. Frederick W. Taylor (1947) and the couple of Gilbreth all emphasized the scientific management process. All of the manager’s decisions should be made based on scientific theories and operational flows so that the productivity could be promoted expectedly (1968).
These useful measures will enable Aussie’s management tending to scientifically and rationally.
Of course, as the information introduced, the changes are not perfect. Before the changes, Symond kept constant contact with his staff. There is a close relationship between him and the employees. When the ways changed, the top manager no longer has the opportunities and time to communicating with salesmen and employees. Many employees found it difficult to withdraw from their close personal relationships with Symond. It will take a bad effect to the relationship and communication between the managers and employees. According to Mayo’s theory of Interpersonal Relationship,employee’s activity and productivity are mostly decided by the harmony relationship between supervisors and workers and the feeling of worker’s team-belonging.
Another potential problem of Symond’s reforming changes is that Symond remains the public face of Aussie Home Loans, and retains a strong grip on the direction and management of the company, continues to view his role as central and critical in guiding Aussie’s fortunes. It indicated that the manager group would have not enough chances and spaces to bring their abilities into play. As a top manager, Symond should be responsible for the performance of an organization as a whole or for one of its larger parts. That means that middle managers or team leaders should execute most of the duties and responsibilities. The cooperation of the manager team plays a key role in a company’s management (2000). All of the management processes should be paid enough attention.
The future of Aussie
Based on the previous analysis and discussion, the changes that Symond took to solve the problem would improve Aussie Home Loan’s present condition. At first, Symond himself has no shortage of confidence in the company’s future, so all of the company’s managers must also have enough confidence to restructuring and revitalizing the system of Aussie. It is the basic spirit of a cooperated organization in a high-performing company. On the other hand, the assistants of management consultants will ensure the planning and strategy of the company are scientific and effective (1939). Moreover, Pricewaterhouse-Coopers provided accounting expertise to Aussie that concerned the professional skills of the company. The most important change that Symond made is that he hired a number of experienced specialist managers to devolved authority for many operational decisions to lower levels. A group of managers who hold the special knowledge and skills will be best useful to the company’s circulation(2000). The whole process of a company’s management should be responsible for four functions:
planning, organizing, leading and controlling the use of resources to accomplish performance goals. And these four processed must be carried on continually. Every step needed to be designed by professional and scientific means and measures not according to one person’s ‘gut feel’.
Some famous companies in the world had the similar experience like Aussie. For example, Chrysler Motor Corporation, the third largest motor corporation in US, had a splendent history before the ⅡWorld War, but since 1940s because of the technological and human resource problems, it encountered a series of messes. In order to restructuring the corporation, Lee Iacocca,when he became the President of Chrysler in 1978, took a series of reforming measures to change the company’s problems that referred to lacking communication, low-efficiency, disorder and so on. He introduced into a number of finance expertise, constituted a set of internal communication system and also sought the help of a topping advertisement company.
After a three-year effort, Chrysler Motor Corporation got a series of great changes both in its external and internal systems and paid back the numerous debts ahead of the schedule about 7 years.
Conclusion
Aussie Home Loan is the typical one that got into trap because of the problems in management. So the series measures that Symond will ensure the company get rid of the present rattrap and get improvement in the competition with banks. But as view of the introduction of the information, there are also a lot of lacks in Aussie’s management. It needs a systematical and thorough reformation in its management system.
Recommendations
According to the previous analysis to Aussie, the changes in management and any other factors could only help the company get rid of the present condition. Its future development needs a series of systematic reforming measures on its Human Resource Management.
1. Scientific Planning and strategies
It is the first important process of an organization’s management. In times of rapid change, forecasting and planning of total working are key factors in helping an organization achieve its objectives (1995-1999). For Aussie, the managers should consider what are the main and new options in a certain period, and how to lie out its new locations and products. This step includes the staff knowing, job analysis and tasks distribution and so on.
2. Systematic career training for the staff
Training is the process of providing employees with the appropriate knowledge, skill and attitudes to help them perform their current job (2004). The most serious problem of Aussie was that they were not coping with the volume of business, although the business was continually increased. Aussie’s career training for the staff should have a close relation to their opposition and working. They should be trained to hold the professional knowledge and skill that refer to the domain of economic, social, finance etc.
3. Harmony relationship between managers and employees
As the case introduced, Symond paid a great attention to creating a close relationship with his employees. So, he was in constant contact with staff members throughout the organization, gave motivational talks based on his life experiences to salespeople. But it is a part of such step. According to Mayo’s theory of interpersonal relationship, creating a harmony environment in an organization should contain many elements: communication, welfare, workplace condition and so on.
One of the effective measures to improve employee’s activity is that make them to have the feeling of team belonging (2004). Symond did very successful in communicating with the staff. But when he no longer has enough time and chances to directly talk with him, the existing employees would feel uncomfortable to withdrawing the close relationship with the top manager. Therefore, the organization should effort to improve the condition of work environment and the staff’s welfare. Thus, employee will put their best effort to their jobs.
References
Francis J Flynn & Barry M Staw (2004) Lend me your wallets: The effect of charismatic leadership on external support for an organization. Strategic Management Journal. ABI/INFORM Global pg. 309.
Graham L.O’ Neill & Robin Kramar (1995-1999) Australian human resources management: current trends in management practice. Melbourne: Pitman.
Henri Fayol (1916) General and industrial management. translated from the French ed. ( Dunod) by Constance Storrs.London: Pitman. Jay A Conger, Rabindra N Kanungo, Sanjay T Menon (2000) Charismatic leadership and follower effects. Journal of Organizational Behavior.ABI/INFORM Global pg.747.
J. Timms & P. Abell (2002) Undergraduate study in Economics, Management, Finance and the Social Sciences. the London School of Economics and Political Science. University of London Press.
Max Weber (1968) Max Weber on charisma and institution building. selected papers, Edited and with introd. By S. N. Eisenstadt. Mayo, E. (1933) The human problems of n industrial civilisation. New York: Macmillan.
Peter Triantafillou (2000) Work and subjectivity―A review of psychological,sociological and post-structuralist approaches. Department of Intercultural Communication and Management Copenhagen Business School.
Robert Waldersee & Geoff Eagleson (2002) Shared leadership in the implementation of re-orientations. Leadership & Organization Development Journal. ABI/INFORM Golbal pg. 400.
Roethlisberger, F.J. & Dickson. W.J. (1939) Management and the worker. Cambridge, MA: Harvard University Press.
Taylor, F.W. (1947) The Principles of Scientific Management. New York: Harper and Row.
Upper Saddle River (2004) A Framework for human resource management. Pearson Prentice Hall.

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