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Management Case Study Siemens

Autor:   •  September 1, 2013  •  Research Paper  •  1,457 Words (6 Pages)  •  1,785 Views

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The case study relates to how Siemens; a multinational engineering and electronics company, was redeemed from a scandalled riddled controversy through managerial changes in its organization. Its decision to bring in new CEO Peter Loscher has led to drastic improvements in the company's public perception and has redefined its future direction in the industry. Losher's concise and well thought out strategy of restructuring Siemens's business portfolio and management culture has brought them back in direct contention with General Electric as the leaders of its market. This case is a prime example of the importance of leadership in a business and how it is vital to have an efficient leader spearheading the company.

Q1. Peter Loscher's Leadership Styles

From the case study, the introduction of Peter Loscher as CEO has benefitted Siemens's in many ways. His strategically planned corrective actions has rejuvenated the business and has given it new goals to work towards too. It is clear that Losher's leadership style has played an important part in the transformation of the company. Here we will discuss his methods of leadership in further detail.

Based on the information provided by the case study, it is evident that Loscher predominantly practices two forms of Leadership Styles concurrently. They are Autocratic Leadership and Democratic leadership. The Autocratic leadership style relates to the idea that decisions and choices are dominantly controlled by an individual based on their own judgements and little regard for input from other parties. They are independent leaders with clear expectations of the method, timing and implementation of the task at hand. This streamlined business process, with a clear division between leader and follower allows decisions to made quickly and efficiently. Loscher exhibits characteristics of this style in his early tenure as CEO of Siemens. The backlash of the bribery scandal required important decisions to made quickly in order to minimize the damage that it has done. This authoritarian method allowed the implementation of much needed key changes in the company's infrastructure to be done as quickly and smoothly as possible. Although the drawbacks of this style is a lack of imaginative decision making, the crisis allowed the benefits to shine through. Examples of this can be seen in Loscher's decisions such as letting go of the company's once prized mobile-business and the swift replacement of the entire executive suite. It has to be noted however that Loscher did not maintain the Autocratic leadership style for long.

As soon as the dust settled on the bribery case, he began to make changes in his methods of leadership. He began to incorporate the Democratic leadership style. In this style, members of the organization takes more of an active role in participating

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