Me as Lowe's CEO - Assignment Example

Considering the four functions of management please describe one planning, one organizing, one leading, and one controlling activity you will engage in during your first year

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Planning is a vital part of management because it forms the foundation for all other managerial functions ("Principles Of Management"). It involves the process of mapping out the pathway towards achieving the organizational goals. Managers need to make decisions, such as what to do, when it should be done, and how to do it, and this is what entails planning. Lowe's plans on shutting down stores to focus attention elsewhere. One planning activity is to determine the areas that the company will focus on after the attention shifts from the closed stores. The company could decide to increase the advertising expenditure for the existing stores as a way of boosting sales.

Organizing entails developing a company structure and ensuring the appropriate allocation of human resources to ensure that objectives are accomplished. Organizing also involves the process of redesigning tasks to ensure maximum efficiency in the accomplishment of tasks ("Principles Of Management"). There are crucial decisions about the roles and responsibilities of jobs, as well as the staff and approach to be used in accomplishing the tasks. One organizing process is to determine how the advertisement expenditure will be distributed for maximum efficiency. Some money could go towards TV advertisements while social media and billboard are also viable alternatives.

Leading is the ability to influence others to take the necessary action using social and informal sources ("Principles Of Management"). If managers are effective in the function of leadership, the employees will be enthusiastic about doing their best to attain the objectives of the organization. Effective leaders need to understand the personalities, emotions, values, and attitudes of their subordinates, to determine the best approach in leading ("Principles Of Management"). As the new Lowe's CEO, I can decide to lead by example. One example is to communicate the objectives of the company, and the reasons for closing the other stores, to the remaining members of staff. This openness will make the staff feel valued, which is motivating.

Controlling involves ensuring that the company performance maintains a specific level of standards. Controlling entails the establishment of performance standards, comparison of the standards against actual performance, and taking any necessary corrective action ("Principles Of Management"). An example of controlling is coming up with a financial budget for daily, weekly, and monthly expenses to ensure that Lowe's does not spend more than it is supposed.

How are both the general and specific environment having an impact on the business

The environment plays a primary role in determining the success or failure of an organization (Eruemegbe 479). Therefore, managers must strive to maintain the proper balance between the environment and the company at all times. Managers must perceive the processes occurring in the environment and respond accordingly by adjusting the internal structure of the organization to ensure survival. The external environment of a business consists of the general and specific parts:

The general environment is made up of non-specific elements that may affect how the company operates. This environment consists of the technological, economic, sociocultural, international, and political-legal (Eruemegbe 485). All these five dimensions have gradual and broad effects on the organization. The technological impact of the general environment on Lowe's is that there are changing shopping trends, which calls for less physical space for products and increased home delivery capabilities (Nassauer). Managers must understand this changing trend and make the necessary inventory adjustments. The strong housing market has also increased the demand for product's from Lowe's, and this is a positive sign (Nassauer).

The specific environment consists of surrounding factors that are likely to have a direct impact on the organization's activities. It consists of elements like customers, competitors, strategic partners, regulators, and suppliers (Eruemegbe 484). The close association between these dimensions and the specific parts of the organization make their effect more immediate than the general factors. The specific environment of Lowe's is affected due to competitors like Amazon and Home Depot who are attracting many customers away from Lowe's (Nassauer).

What steps are you going to take to improve the organizational culture?

The organizational culture is a critical aspect that should concern every manager. Workplace culture is the everyday reality of life in the organization. The culture is what people say, do, treat each other, behave, the customers, community, and various other factors (Hayzlett). People are a company's most valuable asset, and if they are unhappy, it is likely to reflect negatively on the performances. Managers must strive for a workplace culture that helps in retaining and attracting the top employees.

One of the steps to improve the organizational culture at Lowe's is by defining a common language, standards, and values. A culture will be successful if everybody within the organization agrees on the values and language (Hayzlett). For example, the culture of minimizing wastage can be communicated to all current and new employees. Defining the process of minimizing wastage as a core company value will ensure that all employees are aware.

The other step is leading by example. The leader of an organization exerts significant influence on the performance and behaviour of subordinates. Leaders need to be the strongest advocates of the company values to ensure that other peoples follow suit (Hayzlett). If I exercise transparency and honesty in all my interactions, it will rub off on the employees, and they will exercise the same values as well.

Another step is to identify the cultural ambassadors and get their opinion on the current culture. These ambassadors are the biggest cheerleaders of the organization, and their input is significant since they understand how most employees feel (Hayzlett). Understanding how they feel about the current culture will assist in gauging where to make changes, and what to leave intact.

Communicating the organizational values continuously and explicitly will ensure that they are etched in the minds of the members of staff. Communication helps in reiterating, to the employees, the culture, and why it is important to ensure that it is preserved (Hayzlett). Constant communication via newsletters, memos, social media, and other avenues will guide the entire organization's behaviour.

Create a SMART goal for the organization and explain

A SMART goal is an acronym for the qualities that make up an organizational objective. The letters stand for Specific, Measurable, Attainable, Relevant, and Time-Based ("SMART Goals").

The goal is to ensure the success of Lowe's by growing the net income from 7% to 10% in the first year via minimizing wastage, increasing brand awareness, and running discount campaigns to boost sales.

• Specific - the objective should be clear and specific ("SMART Goals"). It is clear that the goal is growing the net income to ensure the success of the company in the industry.
• Measurable - these goals are important because they help in tracking the progress, which helps in improving staff focus and motivation. The goal can be measured by the income percentage and the period it takes to be achieved, which is a 3% increase in income within one year.
• Attainable - the goal must be realistic otherwise it will not make sense ("SMART Goals"). The goal should be something that is doable. Running discount campaigns and increasing brand awareness are powerful motivators to buyers, and hence these strategies can help in achieving this goal. A 3% increase in a year is doable.
• Relevant - the goal should matter to the company at the moment, and it should align with other relevant objectives. Lowe's is shutting down stores so that it can focus on improving the sales in the remaining outlets. This goal, therefore, aligns with the direction of the company.
• Time-Bound - every goal needs to have a timeline by when it will be achieved ("SMART Goals"). The deadline keeps people focused on attaining the goal at all times. Setting a target date helps the organization to avoid over-concentrating on everyday tasks. The goal has a timeline of one year to achieve an increase in income.

What grand strategy will you implement for the company (growth, stability, retrenchment, recovery)?

These are corporate-level strategies that are designed to identify the intended direction of the organization in accomplishing its set objectives ("Grand Strategies"). It is a decision about the long-term plans of the company, and how it will operate. The four grand strategies include combination, expansion, retrenchment, and stability.

As the CEO of Lowe's, I will adopt the retrenchment strategy. This approach is adopted when a company wants to reduce one or more of its business operations ("Grand Strategies"). There is a considerable reduction in the business operations of an organization as managers attempt to pull it out of a weak competitive position that is causing the poor performance. Managers either restructure or discontinue a business operation to revitalize their financial status.

The retrenchment strategy can involve a turnaround, liquidation or divestment ("Grand Strategies"). Lowe's requires the liquidation approach because the decision to close down Orchard Supply Stores, permanently, has already been reached. Liquidation occurs when the assets of the entire company are sold, and it is dissolved as a result. Lowe's has already informed the employees that the Orchard stores will be shutting down permanently (Basch). The move will allow the company to cut down on operating expenses since Orchard was not bringing in a profit. The corporate strategy of running the Orchard subsidiary is not right for Lowe's since it was losing out to competitors like Home Depot (Basch).

Which type of leader will you be, using the Blake/Mouton framework? Why?

Managers need to learn their unique styles to determine areas where they may need to improve or gain things that they may be missing ("The Blake-Mouton Managerial Grid"). The Blake-Mouton grid is based on the behavioural dimensions of concern for people and concern for results.

• Concern for people - the degree to which leaders consider the interests and needs of team members when deciding how to accomplish a task.
• Concern for results - the degree to which leaders emphasize about high productivity and organizational efficiency ("The Blake-Mouton Managerial Grid").

I will be a team-management leader because the approach focuses on the productivity of people and the performance of the organization. Team leaders will prioritize both the needs of their people and those of the organization because focusing more on one will be detrimental to the other. This approach ensures that the employees are involved in decision making to understand the purpose of the organization ("The Blake-Mouton Managerial Grid"). I choose this style because the organization is in dire need of financial and performance improvement. On the other hand, employees are crucial towards achieving the objective, and hence they must be treated with consideration. Such employees will feel motivated since their input and interests are considered. When people have a stake in the success of the company, their needs and the productivity needs coincide ("The Blake-Mouton Managerial Grid"). This leadership style leads to high levels of productivity, employee satisfaction, and motivation.

Works Cited

Basch, Natasha. Amid S...