Management Problem Identification

As a consultant chosen by Disney what is is the problem or potential problem as they move into the next phase of business? You have been asked to propose how management might help the company in terms of management concepts as presented in this unit. What management concept/s would you propose to successfully transition this business into the future? In addition, to support this proposal you will need to explain ‘why’ by demonstrating your critical and evaluative understanding of management concepts underlined by the functions of management. 

Walt Disney Company has created a niche in the entertainment industry and is commanding a large market share with the diverse range of products that were created to gather for different needs for different categories of customers globally. The conglomerate is expanse and cuts across the diverse entertainment field. The strategy employed for the expanse growth is acquisition strategy as is evidenced by the acquisition of Marvel Entertainment, Avengers Franchise, and Lucas Films. Despite the expansive conglomerate attributed to the leadership of former CEO, Michael Eisner, there are problems that make the organization at the cross-road and at the brink of tumbling. The former CEO’s critical management style coupled with strong personality created conflict among the shareholders, partners and the board. It is apparent that there are problems in the company that is making some sections to underperform as well as creating friction among the units, the stakeholders, and the board. The report examines the problems that are inherent and encountered in the organization and which bar success; carry out analysis and evaluation based on management functions lacking in the organization and leadership theories and give conclusion In the end, recommendations in relation to the evaluation and analysis established get made.

In view of Giacalone & Rosenfeld (2013), management is a tool that permits organizations to lay strategies for success. Schermerhorn et al., (2014), asserts that management entails setting of strategies and coordination of all activities and with the utilization of resources so as to realize objectives set. In Walt Disney Company, management is under test and set goals are not fully realized.

Michael Eisner’s leadership style was autocratic. Du et al., (2013) asserts that autocratic style of leading bestows all the authority and responsibility to one central point – the leader and there is no question because the boss is final and communication. The direction of instruction emanates from the top and this is the disadvantage of the leadership style as it creates conflict among peers (Amanchukwu, Stanley & Ololube, 2015).

Strategic Leadership

Additionally, there is the problem of control where Job needs to have total control of Pixar, the issues of finances and creation of films to be under Pixa. As per Buble, Juras & Mati?, (2014), the control being a function of management permits an organization to run its activities based on selected leadership style coupled with motivation expected harmoniously. The benefits enjoyed through Pixar made Michael Eisner resist releasing its control as an entity whereas Job perceives that there is no advantage gained from Pixar unless they are in control of the entire section (Keskes, 2014).

Moreover, organizing is another problem seen at Walt Disney Company. The product brands like Mickey Mouse and Winnie-the-Pooh available and active in the organization have remained unchanged for a long time irrespective of the fact that these brands still command over 80% of the customers. The target market for Mickey Mouse and Winnie-the-Pooh are intended for young children. This leaves out preteens who are equally a large market.  Alongside this, the quality of the production is low, poor acting and the scripts are weak. The other products such as Senior Year, Movies High, Bolt, Bedtime Stories among others failed to attract customers and therefore did not meet the set goals.

There is no strategic leadership at Walt Disney Company and it is the cause of the problems encountered. As per Hill, Jones & Schilling (2014), strategic leadership approach is not limited to people at the top only but also geared to cut across a wider range of audience in the organization. Donate & de Pablo (2015) established that a leader requiring high-performance team and organization does not run away from the strategy but try to fill the gap that exists through the provision of a set of habits that require the application of strategic thinking Donate & de Pablo (2015). 

As espoused by Fleeson & Jayawickreme (2015), the trait theory besides the belief that leaders are born with leadership traits as well as others are made to have leading traits, the qualities like creativity and responsibility among others places one in a position of good leader. Hill, Jones & Schilling (2014) augmented that the contingency theory asserts that leadership style has to be based on the situation that is seen at that particular instance because people perform work best when faced with certain situations. It is supported by Renz & Herman (2016) that traits and situations go in tandem and provide a leader with a sense to apply leadership skills based on the perception felt and on the expected reaction of the followers. Goetsch & Davis (2014) drove the point home by asserting that quality management that ensures excellence emanates by the combination of traits and situations at any particular instant in the organization. It is true at Walt Disney Company because the organization has expanse conglomerates and a reputation to enjoy but conflict becomes the center of division, thus deviating from the central focus to fully use the market already captured (Renz & Herman, 2016). The former CEO employed an autocratic style of leading forgetting to focus on strategic leadership (Carter & Greer, 2013).

Transformational

According to Latham (2013), transformational relates to the creation of change in the organization, among the teams and within an individual self. Leaders falling in this category motivate employees to undertake tasks more and above the normal work through setting up challenging tasks with the aim of getting high performance (Breevaart et al., 2014). McCleskey (2014) attribute this leadership style with committed followers who are satisfied. In line with Schein (2015), the transformational Theories argue that solid relationship gets created through the process in which people interact with one another. The interaction that emanates ignites motivation that is intrinsic as well as extrinsic to the leader and followers (McCleskey, 2014). The inspiration from the leader fuels and transforms the followers. The charismatic personality provides a sense of belonging to the followers. The reason is that the rules get guided and controlled by the group and flexible thus creating an identity with the leader and the set purpose (Effelsberg, Solga & Gurt, 2014).

The behavioral theory supports the transformational theory in the sense that leaders act based on behaviors that are seen in the people. Davis et al., (2015), established that a person acting based on the behavior of other people has certain leading skills. A group of people gets controlled based on their behaviors that pertains a particular issue. Schlüter et al., (2017) pointed out that the elements in an ecological system with similar attributes tend to behave and act in the same manner. In view of this, Walt Disney Company’s leadership behavior displayed by the former CEO and Job lacked transformation. Under any circumstances, there was no point of differing over control of Pixar. The former CEO had no idea of transformational and behavioral leadership as espoused by the two theories. It is no wonder that the two leaders Michael and Job lacked flexibility and purpose for the common good of Walt Disney Company. The whole drama led to the deviation of focus causing organization as a function of management to evade their minds (Keskes, 2014).

As espoused by Prasad & Junni (2016), transactional leadership is a style that keeps the status quo; it entails an exchange process in which the followers get immediate rewards that are tangible. Bottomley Burgess & Fox (2014) explain that people get motivated when rewarded instantly. The rewards become a driving force for high-performance thus meeting organization’s set targets. Saeed et al., (2014) supports it by asserting that conflict in leadership styles occur due to lack of rewards and Baloch, Ali & Zaman (2014) augment that the employees increase the commitment to work based on the motivation put forth prior to work. It is therefore clear that transactional leadership require a leader to give reward so as to change the mindset of the employees and make them work (Amanchukwu et al., 2015). 

These are augmented by a transactional theory which stipulates that there has to be a transaction between the employee and the leader so that work gets done (Hamstra et al., 2014). The theory further states that in between the transaction, there has to be a relationship benefiting both parties and it must be positive (Latham, 2014); people endeavor to get full use of good experiences and at the same time avoiding pleasurable experiences and there is associations enhancement between people with similar strengths (Rowold, 2014). The transactional theory anchors well with Leader-Member Exchange Theory.  The latter stipulates that a leader works with associates who get entrusted with responsibility so as to keep the role (Jian, 2015). The trust created between the leader and the associates allow the leader to delegate roles attached with rewards (Breevaart et al., 2015). This enhances creativity among the employees (Gu, Tang & Jiang, 2015).

In relation to the transactional leadership and the situation prevailing in the organization, the aspect of transactional theory which is supported by Leader-Member Exchange Theory is missing at Walt Disney Company. The employees of the organization and particularly Pixar showed that there are not motivated; differed with their leader and demanded total control of Pixar section. In addition, low-quality products coupled with poor acting and bad scripts demonstrate lack of reward and good relationship between the leader and the employees. Furthermore, the impact extends to lack of creativity to change the target market from targeting young children to include preteens in a product that enjoys over 80% of the market share.

Conclusion

Walt Disney Company lacked leadership, control, and organization which are causing conflict and divisions among the managers thereby resulting in the deviation from the initial organization goals. Moreover, these have resulted in lack of brand transformation; target market gets skewed to young children; low product quality; poor acting and bad scripts.

In strategic approach, leaders fill the gap that exists through the provision of a prescriptive set of traits that requires the application of strategic thinking. The trait theory and contingency theory augment each other since it is based on the situation that provides a leader a sense to apply leadership skills based on the perception felt on what the followers will react.

The Transformational Theories argue that solid relationship gets created through the process in which people interact with one another and accelerates motivation. The behavioral theory supports the transformational theory because leaders act based on behaviors that are seen in people.

These are augmented by transactional theory which stipulates that there has to be a transaction between the employee and the leader so that work gets done. Leader-Member Exchange Theory stipulates that a leader works with associates who get entrusted with responsibility so as to keep the position. 

The new leadership has to adopt strategic leadership. As per Hill, Jones & Schilling (2014), strategic leadership approach is not limited to people at the top but also a wider audience in the organization. Fleeson & Jayawickreme (2015) assert that trait theory and contingency theory get based on the situations that are seen in that particular instance within the organization. Traits and situations go in tandem and provide a leader a sense of direction to apply leadership skills for a given situation and avoid conflicts.

There is the need for the creation of change in the organization through application of transformational leadership and motivating employees. McCleskey (2014) attribute this leadership style to committed followers who are satisfied. Schein (2015), as per transformational Theories argue that solid relationship result through the process of transformation (McCleskey, 2014). The behavioral theory augments this by asserting that a leader act based on behaviors that are seen in people. The Walt Disney Company leadership lacked transformation and flexibility and purpose for the common good of Walt Disney Company. 

In order to have everything under control, there has to be transactional leadership style that keeps the status quo and exchanges of immediate rewards. The employees get the commitment to work based on the motivation given. It is augmented by the transactional theory which stipulates existence of transaction and good relationship benefiting both parties (Latham, 2014). Leader-Member Exchange Theory stipulates that a leader works with associates who get entrusted with responsibility that is attached with rewards (Jian, 2015). This enhances creativity among the employees (Gu, Tang & Jiang, 2015). The employees at Walt Disney Company were not motivated and demanded total control of Pixar. In addition, the low-quality products, poor acting and bad scripts demonstrated due to lack of reward and good relationship between the leader and the employees 

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