Changing working patterns Case Study

Introduction-Lloyds TSB Group Lloyds TSB Group is one of the UKs biggest organizations. It employs over 66,000 people in the UK and in 27 countries worldwide. The business serves around 16 million customers, operating in a range of financial markets. These include personal and private banking, corporate banking, insurance and mortgages. Lloyds TSB operates on a global scale and competes within rapidly changing markets for the delivery of financial services to personal and business customers. These customers expect a wide range of services to be available 24 hours a day and delivered with first-class customer service. In order to remain ahead in this demanding market, Lloyds TSB has put in place a range of innovative human resource management policies to ensure Lloyds TSB is a great place to work and that its staff are happy, motivated and committed to giving the highest levels of performance to the organization and its customers. In 1998, the Group conducted research with employees, which showed that one of their main concerns was being able to balance a demanding job with outside commitments, such as family life, hobbies and leisure activities. This led to the Group
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designing and introducing a unique flexible working policy, called Work Options, a year later. This allows staff to structure their working arrangements in a way that helps them to achieve a better work-life balance. This policy gives all staff the right to request a different working pattern from the standard 9.00 a.m. to 5.00 p.m. working day. Lloyds TSB is widely recognized as one of the best employers for providing flexibility for its staff. By following this flexible approach, Lloyds TSB is able to attract, appoint, motivate and retain the best staff available, which in turn keeps customers happy and keeps the organization at the top of the financial services field The business case for flexibility Flexible working is not merely of benefit to staff; it makes excellent business sense too. Lloyds TSB believes its ability to deal effectively with the need for flexibility strengthens its position as an employer of choice and enables the Group to deliver levels of service that differentiate Lloyds TSB from its competitors. Customers benefit by getting to deal with a professional, friendly, wellinformed and enthusiastic person. In an increasingly competitive market place, where retailers, supermarkets and other companies can also offer financial services, Lloyds TSB
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needs customer service excellence around the clock to stay competitive. Lloyds TSB developed its own flexible working approach in 1999 to help attract and retain the best staff. The Groups own leaver surveys (questionnaires completed by people leaving the business) showed that flexibility was a prime reason for them joining initially. This is supported by a national survey which showed that flexible working was a more important factor than pay for graduates in choosing an employer. Flexibility and motivation Employees need motivation and commitment. Research shows that people are more productive and experience less stress when they have control over the hours they work. Therefore, flexible working helps Lloyds TSB to gain the long term commitment and motivation of well qualified and experienced staff. It is far more expensive to recruit and train new staff than to retain existing ones.

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Jo is an Assistant Manager, Process Design in Group Operations. I have two children and my husband is self employed. I work from home five days a week. I have been able to continue my career with the bank and deliver 100% commitment. Flexible working generates cost savings too. Traditional work patterns usually involved fixed hours between 9.00 a.m. and 5.00 p.m. Work beyond these hours was paid by employers at overtime rates, e.g. time and a half or more, driving up staff costs. By introducing flexibility, Lloyds TSB has been able to extend staff cover at no added cost. In todays world, people with busy lifestyles require financial services at any time. Peak customer demand does not follow a traditional 9.00 a.m. to 5.00 a.m. working day either. For Lloyds TSB, flexible arrangements permit it to offer its employees personal benefits to suit their own lives and deliver a more complete service to customers. Both parties win.

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Work-life balance Achieving a healthy work-life balance is important to the Group as well as to its staff. For staff, the pressure of a career set against a background of family responsibilities can be difficult to manage. Sickness and absenteeism often increase when these pressures become too much. Research shows that people who are free to concentrate on their job without conflict with other commitments are much more efficient workers. Assistant Manager Mark has been able to work flexibly for five years. I have joint custody of my daughter. Thanks to flexible working I can play an active part in her upbringing. For me, this is one of the key benefits of working for Lloyds TSB. I work a variable fortnight, starting at 9.30 a.m. some days and finishing at 4.30 p.m. others. Managers at Lloyds TSB are encouraged to measure every staff request for a flexible work pattern against this sound business background.

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Flexible working patterns - reduced hours There are various patterns of flexible working available. These can be selected by individuals to suit their own personal lifestyle and outside responsibilities. Some patterns affect the number of hours worked within the standard working week of 35 hours. Reduced hours is a simple model, otherwise known as working part-time. Two other flexible patterns, Job Sharing and Term Time Working are particular types of reduced hours. Term time working is where an employee with school age children identifies how many weeks of the year they wish to work. This varies according to local school term dates, usually amounting to 38 or 39 weeks per year. In some areas the staff recruitment market is very competitive. Some branches have attracted new recruits by offering term time employment, together with seasonal cover over school holidays.

Job sharing is where two members of staff share one job role. The business gains because they have two people combining their experience, skills and creativity into one role. Recent research showed that 70% of managerial job-share teams were 30% more productive than full time colleagues.
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Annette and Angie are Customer Service Managers at Lloyds TSBs Wisbech branch. As Annette says, We have job shared for nine years now. We cover a full working week between us with handover meetings every Tuesday morning. We talk about any issues that have arisen. We are very different characters and react in completely different ways to problems. However we find our skills complement each other well. The bank benefits because it wouldnt get this from just one person. Flexible working - alternative patterns Other, more creative, working patterns enable employees to continue to work full-time but in patterns that suit the business needs as well as theirs. Compressed working Compressed working allows staff to work a standard week or fortnight within a shorter time scale. One way of doing this is to work a couple of longer days a week, then take time off to match personal needs. Debbie works in IT Service Delivery in Cheltenham & Gloucester. I have worked a compressed week for five years. This means I can pursue the two hobbies I love, scuba diving and genealogy. I feel motivated, enthused and energised about my role in Lloyds TSB. I take my non-working day when it suits both me and the
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branch. My manager knows I will get the job done. It has transformed my work and my non-work life! Using compressed working allows Debbie to enjoy her leisure time and at the same time Lloyds TSB gains a motivated and loyal staff member. Variable hours Variable hours allows management and staff to arrange working hours that serve both the needs of the business and the personal needs of staff. Management gains the capacity to organise cover that can match customer demand. A full 35 hour week is done but instead of fixed 9.00 a.m. to 5.00 p.m., staff can agree to start and finish at other times.

For example, married couples working for Lloyds TSB can set up work patterns to meet their family needs. Mike and Jane work for Commercial Banking Finance and UK Retail Banking Finance. They work alternative shifts, 8.00 a.m. to 4.00 p.m. and 10.00 a.m. to 6.00 p.m. (variable). We have two children aged nine and twelve, explains Mike. Jane works from home on Mondays and from Tuesday to Friday we arrange between us to work either early or late. This way,
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one of us is always around to take the children to school or be here when they come home. Lloyds TSB still has the expertise and the skills of both Mike and Jane, spread over longer hours. They have their careers and know that their children are safe and well. Conclusion Lloyds TSB was ahead of the game when it came to introducing flexible working patterns.The Group was aware that economic and social changes meant that people often live complex lives in and outside of work. Far-sighted management at Lloyds TSB saw the benefits to the business of recruiting and keeping excellent people, who would be willing to build a career in the Group. It also understood that it needed to strike the right balance between individual needs, professional requirements and working patterns to achieve competitive advantage. Good human resource management is about nurturing and developing people. In a service industry like banking and finance, great customer service is the cornerstone to achieving high levels of customer satisfaction. Great customer service depends on having staff that are motivated and committed to the organization. Work Options has helped to build an effective, happy and motivated workforce. Only by doing this can Lloyds TSB continue to attract and retain the best talent and maintain a world class financial business.
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Financial information in decision making Case Study

Introduction- CIMA Business CIMA works with some of the worlds leading businesses and provides a professional qualification in management accounting. CIMA is the Chartered Institute of Management Accountants. It supports over 164,000 members and students in 161 countries. Management accounting plays a vital role in a business. Management accountants look forward and use financial information to help a business make key decisions about its future. This demonstrates the value of the qualification in supporting business.

CIMAs qualification is the leading management accounting qualification in the world. CIMA-qualified members work in both the public sector and private sector, in commercial and not-for-profit organizations. CIMA updates its qualifications regularly to take account of the changing needs of employers, students, managers and businesses. CIMA stakeholders include its own students, qualified members and major employers. It supports students
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and members through all stages of their careers, with a focus on lifelong learning. CIMA works to maintain the highest standards that businesses want. Its training provides CIMA members with the necessary skills to manage some of the worlds most successful businesses. CIMA members may lead the finance function in any organization or work in roles outside finance. They have roles in top management leading companies like Norwich Union, Cadbury Schweppes and Nintendo. Financial Accounting Financial accounting refers to the figures, balances and accounts that a business must produce to demonstrate how the business is performing. In a small business, such as a sole trader or partnership, these accounts may be quite simple. However, they still need to be accurate. This is so that the business owner/s and the tax authorities have clear information about the costs and profits of the business. Once a business becomes a limited company, there is a legal requirement to publish certain figures. These include:

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balance sheets, showing a snapshot of what a business owns and owes at a specific point in time profit and loss account, showing the profit or loss the company has made in a specific period of time in public limited companies, the cash flow statement, showing where cash has come from and how it has been spent over the past year

Financial accounting tasks Financial accounts relate to the past performance of the business. They give an important baseline of financial information for managers. However, this information is also publicly available to anyone else, including competitors, suppliers, government and investors. Managers need to be able to see how the business has performed in the past to enable them to look to the future. The main tasks for financial accountants are:

keeping accurate records such as ledgers, books and accounts ensuring invoices are raised and bills paid checking and monitoring spending and balances

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Management Accounting

Management accountants look ahead - they focus on forecasting and decisionmaking. They use information to advise on how the business can move forward, for example, should a company buy another, should it invest in new equipment. Management accounting involves using the internal financial information available to managers, as well as that information which companies must publish by law. This contributes to forward planning, reviewing and analysing the performance of the business. Management accounting is fundamental in strategic planning. When a business is looking to make a strategic decision, for example, whether to develop a new product line, acquire another business or expand into other countries, the CIMA trained management accountant can provide advice. They can use a number of tools to assist decision-making. These include ratio analysis, budgets and forecasts (such as cash flow and variances).

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Management accounting tools A ratio is one variable measured in terms of another, for example, how many girls are in a class compared to the number of boys. Ratio analysis is one tool in the strategic decision making process. Management accountants use ratios along with other internal business data and publicly available information to assess aspects of a companys performance. The main ratios used in management accounting are:

efficiency or activity ratios, including liquidity - these show whether the business is able to pay its debts. They look at whether the assets of the company (its buildings, land equipment) could repay any debts. gearing- shows the long-term financial position of the business. It can show balance of funding in a business i.e. how much money is from loans (on which it needs to pay interest) and how much is from shareholder funds (on which it needs to pay a dividend to shareholders). More money from loans carries more cost and therefore more risk. profitability or performance ratios - show how well a business is doing. They relate to the business objectives, which might be to make profit or obtain a return on investment, or collects its debts quickly.

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It is important that management accountants look at all the relevant ratios when making a decision. Management accountants need to be able to produce accurate analysis, correct forecasts and a detached and professional overview to a companys performance. These contribute to the future success of a business. Other tools available to a management accountant include:

cash flow forecasts which look at likely future flows of costs and revenues. The business uses these to plan expenditure and to see where it might need to borrow. Budgets, which are financial plans for the future. They help the business to see where it will incur costs and where revenues will come from. They are particularly important in helping to co-ordinate the different parts or activities of a business. Variances which show the difference between what was forecast to happen (in a budget) and what actually happened. The reasons for these differences can then be analyzed to show why the variance occurred. Management accountants can then see how the business can build on positive variances or avoid negative ones in future. Investment appraisal helps to decide whether a particular investment is worthwhile or not. It looks at the costs of
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investing, for example, in a new factory or processes and at the likely financial returns. Business strategy Strategic decisions are major decisions taken at the highest level of management in an organization by the Chief Executive, Directors or Board members. They determine the direction of the business over future months and years. They have greater and wide-reaching consequences than the tactical decisions (such as changes to factory layout or processes) or operational decisions, such as increasing the number of staff on a product line, made by junior or middle managers. These affect the day-to-day running of the business. Business strategies enable a business to grow and to strengthen its position in the market. If a business wants to grow it can do this by:

organic growth - developing the business from within. This can be by either growing more or different products within its own market. Alternatively, it can be by developing new markets. This could be through various routes, for example, new products and new geographical markets, such as overseas or new distribution channels. Inorganic growth - joining with other businesses through take-over or merger.

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Benefits of strategic decision making Management accountants help a business make strategic decisions by:

identifying and collecting key information measuring and interpreting information analyzing information communicating findings joining with other managers to plan changes monitoring, measuring and controlling progress

The tools of management accounting help support the policy of a business. Strategic, long-term decisions involve the future direction of the business. If the forecasts and decisions are right, the business will grow and succeed. But if a business makes poor decisions, it may fail. For example, a business may decide to invest in new technology to improve the efficiency of production. If it has analyzed the benefits properly, the investment will lead to growth and more profit. However, if the business has not evaluated all factors and the technology is untested, it may not give a return on investment.

CIMA strategists in practice CIMA qualified management accountants can reach high-level and well-paid jobs in many well-known companies.
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Management accountants are responsible for key areas of the company, helping in strategic decisionmaking. Matthew Parker is the Retail Finance Manager at Topshop, one of the seven key brands of the Arcadia Group. Arcadia is a young and very vibrant company. People are passionate about what they do and that comes through in their jobs. For Matthew it provided a passport to a job with variety and challenge: With CIMA youre getting involved in the strategic management within the business you have the chance to influence and suggest ideas to key decision makers. A CIMA qualification is almost a commercial toolkit that gives you a way of breaking information down and looking at investment decisions to make sure what is the most profitable. I know its a clich, but no two days are the same. Ill sit down with the regional controllers and area managers at the beginning of a financial half and well discuss the plan and then that strategy gets passed on to the decision making body. I just dont think in many other accountancy roles you get such a level of variety and input, which makes it fantastic.

Gajen Ganandran is a financial analyst with Aviva, which owns Norwich Union. Aviva is the world's fifth largest insurance
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group and the biggest in the UK. Gajen has a degree in computing but realised early on in his career the importance of understanding financial data, so he undertook a CIMA qualification. Since then he has travelled to New York and the USA and is hoping to take up an opportunity with Aviva to work overseas, ideally in Singapore. Tom Pearce is Finance Director of Nintendo UK the global leader in interactive entertainment. Tom did his A levels in business studies and accountancy. He then took a degree in accounting and finance. From his first job onwards, Tom set about improving his qualifications through CIMA. Tom works in an office full of the latest Nintendo gadgets and games, including the successful Nintendo Wii. From his experience of working within a business, Tom decided that he did not want to be a traditional accountant. I wanted to apply my skills to a commercial setting. I chose CIMA because it was recognised globally and the most geared to the business environment. In the same year that Tom qualified with CIMA, he was offered the role at Nintendo, starting the UK side of the Japanese company from scratch. In a short time he became Financial Director, responsible for decisions affecting sales of over 600 million.Sharon Bhachu found CIMAs support invaluable in her job at Cadbury Schweppes. She is a CIMA Training Co-ordinator and one of the key players in the relationship between Cadbury
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Schweppes and CIMA. Cadbury Schweppes is a CIMA Training Quality Partner. Sharons job includes the evaluation of new product ranges, deciding on promotions and working on seasonal ranges for Easter and Christmas. She even decides which products should go into a selection box. Im loving every minute working with current brands and developing insight for the future. Financial accountants maintain a business balances and accounts. They keep the business records legal and financially stable.

Management accountants focus on forecasting. They have an exciting and forward-looking strategic role in many different types of organizations. They use various tools, such as ratio analysis and investment appraisal, to identify, measure and analyze the financial performance of a company. Many CIMA-trained management accountants are at the heart of top businesses in a wide variety of roles, including financial analyst or finance director. They contribute to decision-making across the organization. The analysis they provide is vital in taking a business forward.
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Recruitment and selection Case Study

Introduction-Tesco Company Tesco is the biggest private sector employer in the UK. The company has more than 360,000 employees worldwide. In the UK, Tesco stores range from small local Tesco Express sites to large Tesco Extras and superstores. Around 86% of all sales are from the UK.

Tesco also operates in 12 countries outside the UK, including China, Japan and Turkey. The company has recently opened stores in the United States. This international expansion is part of Tescos strategy to diversify and grow the business. In its non-UK operations Tesco builds on the strengths it has developed as market leader in the UK supermarket sector. However, it also caters for local needs. In Thailand, for example, customers are used to shopping in wet markets where the produce is not packaged. Tesco uses this approach in its Bangkok store rather than offering pre-packaged goods as it would in UK stores.
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Tesco needs people across a wide range of both store-based and non-store jobs:

In stores, it needs checkout staff, stock handlers, supervisors as well as many specialists, such as pharmacists and bakers. Its distribution depots require people skilled in stock management and logistics. Head office provides the infrastructure to run Tesco efficiently. Roles here include human resources, legal services, property management, marketing, accounting and information technology.

Tesco aims to ensure all roles work together to drive its business objectives. Tesco needs to ensure it has the right number of people in the right jobs at the right time. To do this, it has a structured process for recruitment and selection to attract applicants for both managerial and operational roles. Workforce planning Workforce planning is the process of analyzing an organizations likely future needs for people in terms of numbers, skills and locations. It allows the organization to plan how those needs can be met through recruitment and training.
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It is vital for a company like Tesco to plan ahead. Because the company is growing, Tesco needs to recruit on a regular basis for both the food and non-food parts of the business.

Positions become available because: jobs are created as the company opens new stores in the UK and expands internationally vacancies arise as employees leave the company when they retire or resign or get promotion to other positions within Tesco new types of jobs can be created as the company changes its processes and technology

Tesco uses a workforce planning table to establish the likely demand for new staff. This considers both managerial and nonmanagerial positions. In 2008/09, for example, Tesco calculates that to support its business growth there will be a demand for around 4,000 new managers. The planning process This planning process runs each year from the last week in February. There are quarterly reviews in May, August and November, so Tesco can adjust staffing levels and recruit where
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necessary. This allows Tesco sufficient time and flexibility to meet its demands for staff and allows the company to meet its strategic objectives, for example, to open new stores and maintain customer service standards. Tesco seeks to fill many vacancies from within the company. It recognizes the importance of motivating its staff to progress their careers with the company. Tesco practices what it calls talent planning. This encourages people to work their way through and up the organization. Through an annual appraisal scheme, individuals can apply for bigger jobs. Employees identify roles in which they would like to develop their careers with Tesco. Their manager sets out the technical skills, competencies and behaviors necessary for these roles, what training this will require and how long it will take the person to be ready to do the job. This helps Tesco to achieve its business objectives and employees to achieve their personal and career objectives.

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Job descriptions and person specifications An important element in workforce planning is to have clear job descriptions and person specifications. A job description sets out:

the title of the job to whom the job holder is responsible for whom the job holder is responsible a simple description of roles and responsibilities

A person specification sets out the skills, characteristics and attributes that a person needs to do a particular job. Together, job descriptions and person specifications provide the basis for job advertisements. They help job applicants and post-holders to know what is expected of them. As they are sent to anyone applying for jobs, they should:

contain enough information to attract suitable people act as a checking device to make sure that applicants with the right skills are chosen for interview set the targets and standards for job performance

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At Tesco these documents are combines:

Job descriptions and person specifications show how a job-holder fits into the Tesco business. They help Tesco to recruit the right people. They also provide a benchmark for each job in terms of responsibilities and skills. These help managers to assess if staff are carrying out jobs to the appropriate standards. Skills and behaviours

Tescos purpose is to serve its customers. Tesco's organizational structure has the customer at the top. Tesco needs people with the right skills at each level of this structure.
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There are six work levels within the organization. This gives a clear structure for managing and controlling the organization. Each level requires particular skills and behaviors.

Work level 1 frontline jobs working directly with customers. Various in-store tasks, such as filling shelves with stock. Requires the ability to work accurately and with enthusiasm and to interact well with others. Work level 2 leading a team of employees who deal directly with customers. Requires the ability to manage resources, to set targets, to manage and motivate others. Work level 3 running an operating unit. Requires management skills, including planning, target setting and reporting. Work level 4 supporting operating units and recommending strategic change. Requires good knowledge of the business, the skills to analyze
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information and to make decisions, and the ability to lead others. Work level 5 responsible for the performance of Tesco as a whole. Requires the ability to lead and direct others, and to make major decisions. Work level 6 creating the purpose, values and goals for Tesco plc. Responsibility for Tescos performance. Requires a good overview of retailing, and the ability to build a vision for the future and lead the whole organization.

Tesco has a seven-part framework that describes the key skills and behaviors for each job at every level in the company. This helps employees understand whether they have the right knowledge, skills or resources to carry out their roles. Attracting and recruiting Recruitment involves attracting the right standard of applicants to apply for vacancies. Tesco advertises jobs in different ways. The process varies depending on the job available. Internal recruitment Tesco first looks at its internal Talent Plan to fill a vacancy. This is a process that lists current employees looking for a move, either at the same level or on promotion. If there are no
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suitable people in this Talent Plan or developing on the internal management development programme, Options, Tesco advertises the post internally on its intranet for two weeks.

External recruitment For external recruitment, Tesco advertises vacancies via the Tesco website www.tesco-careers.com or through vacancy boards in stores. Applications are made online for managerial positions. The chosen applicants have an interview followed by attendance at an assessment centre for the final stage of the selection process. People interested in store-based jobs with Tesco can approach stores with their CV or register though Jobcentre Plus. The store prepares a waiting list of people applying in this way and calls them in as jobs become available. For harder-to-fill or more specialist jobs, such as bakers and pharmacists, Tesco advertises externally:

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through its website and offline media through television and radio by placing advertisements on Google or in magazines such as The Appointment Journal

Tesco will seek the most cost-effective way of attracting the right applicants. It is expensive to advertise on television and radio, and in some magazines, but sometimes this is necessary to ensure the right type of people get to learn about the vacancies.

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Selection

Selection involves choosing the most suitable people from those that apply for a vacancy, whilst keeping to employment laws and regulations. Screening candidates is a very important part of the selection process. This ensures that those selected for interview have the best fit with the job requirements. Screening In the first stages of screening, Tesco selectors will look carefully at each applicants curriculum vitae (CV). The CV summarizes the candidates education and job history to date. A well-written and positive CV helps Tesco to assess whether an applicant matches the person specification for the job. The company also provides a job type match tool on its careers web page. People interested in working for Tesco can see where they might fit in before applying.

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The process Tesco uses to select external management candidates has several stages.

Assessment centres A candidate who passes screening attends an assessment centre. The assessment centres take place in store and are run by managers. They help to provide consistency in the selection process. Applicants are given various exercises, including teamworking activities or problemsolving exercises. These involve

examples of problems they might have to deal with at work. Candidates approved by the internal assessment centers then have an interview. Line managers for the job on offer take part in the interview to make sure that the candidate fits the job requirements.
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Conclusion Workforce planning is vital if a business is to meet its future demands for staff. It allows a business time to train existing staff to take on new responsibilities and to recruit new staff to fill vacancies or to meet skill shortages.

Tesco is a major international company with many job opportunities, including management, graduate, school leaver and apprentice posts. Tesco needs to have people with the right skills and behaviors to support its growth and development. Tesco has clear organizational structures, detailed job descriptions and person specifications. It provides user-friendly ways of applying for jobs and a consistent approach to recruitment and selection. This means it can manage its changing demand for staff.

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Using a range of management styles to lead a business

Introduction-Enterprise

For organizations to develop they require a direction. The people who manage the business provide the direction. Taking responsibility for making decisions and running a business well is a skill. Businesses place considerable emphasis on getting the right people with the right skills into key posts. They need to ensure that these people have the opportunities to develop decision-making skills. Enterprise Rent-A-Car (Enterprise) employs more than 75,000 employees and operates a fleet of cars exceeding one million vehicles worldwide. Jack Taylor founded the company in St Louis in 1957. The owner had a simple belief: Take care of your customers and employees first and profits will follow. This belief forms the foundation of Enterprises four key business objectives of: Enterprise has become one of the foremost car-hire companies and is the largest purchaser of cars in the world.

customer satisfaction fleet growth

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employee development profitability

These four business objectives link together:

Enterprise does not sell a product. It provides a service the use of a car. To deliver great service Enterprise needs well-trained and motivated staff. As the company grows, it opens new local offices and creates new opportunities for employees. Customers expect to be treated in a particular way by a service-orientated business. Enterprise uses its Enterprise Service Quality Index (ESQi) to measure the quality of service it provides. Satisfied customers will come back and give repeat business. They may also recommend the service to others. This leads to growth of the business and greater profitability.

This case study focuses on leadership within Enterprise. It shows how its managers use a range of management and leadership styles to support Enterprises focus on customers.

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Leadership and management

Management involves control and organisation to get something done. In the course of business, managers use many different skills. They:

plan and organise people and resources set and monitor budgets control operations or services in order to meet customers needs. The ability to manage is essential at all levels in the organisation

However, for a business to excel, leadership is vital. A leader is somebody who sets the direction and inspires other people. A leader is able to influence others in meetings or when making decisions. This helps to achieve the goals of the organisation. Enterprise has leaders at all levels of its business, not just senior management. Some people are natural leaders. For example, the captain of a school football team will probably have the ability to influence others. Leaders can also develop through training and education.

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Leaders are also managers. For example, an Enterprise General Manager leads a regional group of City Managers. City Managers are leaders of their front-line management employees. Andy Taylor, the current Chairman and Chief Executive Officer (CEO) of Enterprise, was a manager for his father Jack Taylor. He carried out the processes and systems his father set up. Today, Andy leads and manages the business. Flexibility There are many different management styles. These styles influence how leaders communicate with employees. For example, Enterprise operates an open door policy. This enables everybody within the organisation to have direct contact with senior managers. This might be through meetings or having lunch in the same dining area. The CEO Andy Taylor is following the values set by his father by making opportunities for employees to meet and talk to senior managers. This shows an informal style and a lack of hierarchy. Enterprise puts a high value on teamwork and open communication between employees at all levels. Enterprise employs motivated individuals with the potential to become good leaders. Managers have their own preferred management style. Some prefer an autocratic style where they tell employees what to do and how to do it. Others prefer a democratic style where they
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help their team to discover solutions to problems for themselves. However, the management style must change to fit the circumstances. Some decisions must be made at the highest level. For example, a manager would need to give immediate instructions on a health and safety issue or in a fire. However, if changing an office layout, the manager could leave the team to investigate and decide on the solution for themselves.

Leadership as a competence When recruiting, Enterprise looks for leadership qualities in candidates. It considers leadership to be a core competence. It recognises that the skills and capabilities to lead others are essential for business growth. Recruits learn how to run parts of the business. The focus is on making decisions that improve customer service. General managers are empowered to make decisions covering a region. Branch managers have the authority to deliver good customer service locally. Each local branch operates like a small business. Managers make decisions that support the needs of their customers. Front-line
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management trainees are encouraged to use the best management style to suit different customers.

Autocratic style

An autocratic style of leadership is when a leader makes a decision alone. The leader conveys the decision to staff and they have to work within the scope of that decision. For example, in order to deliver good customer service, managers instruct all staff to follow Enterprises guidelines for dealing with customers. Douglas McGregor in 1960 used the terms Theory X and Theory Y to identify two very different forms of management style:

A Theory X manager tells employees what to do and supervises their work. This involves using strict controls within the business. This reflects an autocratic style. In contrast, a Theory Y manager believes employees want to do well. The manager provides individuals with the
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opportunity to take control of their work. They can contribute towards solving a problem or issue. This helps motivate them to do better. Enterprise needs its employees to use their skills to deliver high levels of customer service. This means an autocratic management style is inappropriate in daily routines. A branch manager sets the standards for the team but encourages team members to be flexible and responsive to each customer. This ensures that customers get the service they expect. However, there are many examples of autocratic style in use at Enterprise. These relate to issues which affect the whole organisation or which are central to the business. For example:

Andy Taylor insisted all branches use ESQi, the customer satisfaction measure, because it met the business objective. In order to gain commitment to using the process, employees had the prospect of promotion when
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they achieved high scores. This was a big motivator for staff. When the Senior Vice President of European Operations at Enterprise decided on the companys diversity programme, employees were clear that this decision was compulsory and not an option. The Vice President of Corporate Communications for Enterprise established an environmental committee. Its aim was to influence the behaviour of the whole organisation by reducing waste and improving its carbon footprint. As the industry leader, Enterprise attempts to set high standards when it comes to the impact of rental cars on the environment.

Democratic style

In contrast to the autocratic style, Enterprise uses democratic decision-taking in many parts of the business. Everyone has the opportunity to contribute ideas to the decision. There are two types of democratic decision-making:
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1. persuasive democratic management here the leader makes the decision first and then persuades employees that he or she has made the right decision 2. consultative democratic management this involves the group contributing to the decisionmaking process, with the leader making the final decision The team is central to delivering good customer service. The consultative approach helps Enterprise achieve this business objective. Autonomy Enterprise operates through an extensive network of local offices. Branch managers and their staff need to make decisions to meet the changing needs of customers in a fiercely competitive market. Each office operates with a large degree of autonomy. This means that, in many areas of operation, local offices have the power to govern themselves and make changes without referring to senior management. They use different management styles with customers on different occasions. Examples of incidents they may have to deal with include:

a car has been in an accident and a customer needs a hire car urgently. Local managers take a consultative approach to understand the issues and find the right solution for customers who might be upset or worried.
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a customer wants a vehicle for a weekend break. Branch staff will be more authoritative in recommending a specific vehicle to suit their needs. This helps to satisfy this customer and ensure repeat business.

Ownership and motivation This independent approach enables Enterprise employees to have ownership of many of their activities. This acts as a motivator for staff. In 1943, Abraham Maslow, looking at motivation, identified a hierarchy of needs for individual employees. Everyone has needs for water, food, warmth and safety. These have to be met before a person can move on to fulfilling their higher needs.

When employees are empowered to make decisions, this improves their sense of worth and self-esteem. It also helps them to use creative skills within their role and motivates them to perform better. Making decisions at a local level helps to
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meet customers needs and enables individuals to take a pride in their job. This recognises that employees are motivated by factors other than financial ones. These include praise, recognition or having more responsibility. Enterprises emphasis is on satisfying customers to grow the business. It also rewards hard work. To increase motivation, employees who achieve high levels of customer satisfaction have the opportunity of promotion. In addition, staff who perform well or who make the biggest improvement are recognised through the Enterprise newsletter or by membership of the Enterprise Elite Club. This reinforces self-esteem. Laissez-faire Employees in a local branch have a sense of ownership for many of their activities. At the same time, they have the support and career structure of a large multinational company. Derived from the French meaning leave alone, this is a loose leadership style. It allows employees to carry out activities freely within broad limits. It differs from the democratic style in that individuals are able to behave independently and make their own decisions, rather than coming together on an agreed course of action.

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Small entrepreneurial teams manage and lead local Enterprise offices. These teams are decentralised and make many decisions on their own. This shows a type of laissez-faire structure.

However, this management style has drawbacks. Some employees might not be able to motivate themselves or make the right decisions alone. Therefore individuals within Enterprise teams work to corporate guidelines for dealing with customers. Staff also receive regular training and feedback. Corporate responsibility Many Enterprise branches contribute to regional and corporate decisions. For example, Enterprises Jack Taylor Founding Values Award demonstrates the laissez-faire approach. This is part of Enterprises corporate responsibility programme.

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Each region manages and participates in community projects. These may involve, for example, working in a nursing home or gardening for the elderly. If the region wins the award, it is free to use the money as it chooses. In 2007 the winning region in South East England received a grant of 10,000 to use for community projects in its area. As part of Enterprises commitment to conservation, it has planted 40,000 trees in Scotland and is committed to planting 50 million over the next 50 years. All these activities enable employees to use their ideas in a creative way. Conclusion Management is about getting things done. Leadership is about achieving goals by creating a direction for a business and inspiring employees to take initiative and make the right decisions. Enterprise managers need the skills to motivate, lead and influence others. Enterprise aims to employ people who can take on a leadership role and help to grow the business for the longer term. Its management and training programmes help to provide employees with the skills necessary to lead others. This case study illustrates that within a business, there are leaders at different levels within the hierarchy. Depending upon the circumstances, leaders will use different leadership styles.
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By developing leaders who are able to make decisions at a local level, Enterprise can respond more closely to customer needs within a competitive service industry. Its high levels of customer service provide it with competitive advantage over its rivals.

Argyro Tzitzi : argyro.tzitzi@aiesec.net

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