Leadership Essay Example | Topics and Well Written Essays - 1750 words

Leadership - Essay Example It is through the varied yet complimentary leadership paradigms that these CEO’s bring to the organization that constitute SAP’s primary outlook. In addition, there is an overarching resistance to change throughout the organization. While SAP is centrally located in Waldorf, Germany the company has become an international entity, with substantial leadership entities in the United States, Switzerland, Asia-Pacific, and various regions within the Americas. To some degree there are substitutes for leadership operating within the organization. SAP has developed a highly competitive atmosphere, wherein employees are encouraged to develop a number of hobby projects. In these regards, the substitute for leadership consists of this entrepreneurial environment. In terms of a substitute for the seven layer managerial structure, to some degrees this hierarchical structure is necessary as the high number of employees and expansive nature of the company necessitate a complex organiz ational structure. Still, it is noted that there is inefficiency in this structure in that it locates individuals with their manager rather than those whom they actually work with. 2. The type of followers SAP says it wants are â€Å"self-managing, professional employees who create opportunities to fulfill their potential and maximize their value to the organization† (‘Case Study’, pg. 8). SAP currently has instituted a number of measures to reduce their employee attrition rate. In these regards, there is a strong emphasis on promoting employees from within the organization. The company also does not make a regular practice of firing employees whose skills are no longer needed; instead they have made a practice of tailoring career paths for employee development, encouraging employees to work in different areas of expertise. The company also encourages flexible working hours, casual dress styles, as well as long hour meeting times in the cafeteria for employee net working. The company also developed an employee development management culture. Perhaps most importantly the company offered salary levels above the average for the expected work, as well as profit sharing opportunities. In addition they have developed opportunities for employees to gain stock options through an American based program. In all it seems that the company has taken adequate HR measures to stem the employee attrition rate. Rather than developing furthered measures, with the exception of greater stock options, it seems the main attrition problem is linked to the company’s organizational culture and leadership qualities. In these regards, one would need to make deep structural changes that would possibly alter company progress and efficiency. 3. There are a number of notable elements related to the structure at SAP. It seems that the most notable element relates to the seven layer management structure the organization has in place. While the case study indicates tha t the managerial structure was a needed response to the company’s increasing size during the internet boom, there are also a number of elements related to it that have been indicated to be problematic. For instance, â€Å"one of the consequences of this focus on management was that people may be located with their manager rather than being co-located with those they actually work with†