Leadership management is a crucial need for the progress of an organization. The success or failure of an enterprise is influenced by the stewardship style of the managers and the approaches they choose to implement in their operations. Yahoo is one of the IT sourcing companies that has faced competition and has demanded a continuous transformation to match the market trends. As a result, Yahoo has suffered a change of the management leaders over years. However, each of the leaders has been associated with the different management styles and have attained contrasting outcomes. Marisa Mayer is one of the renowned Chief Executive Officers (CEO) of the company that became famous for her approach. During her leadership, the company has faced a downfall and has adopted a new culture that do not favor its performance in the market. Thus, in this paper an analysis of Mayer’s leadership will be done.
After her appointment as the CEO of the company, Marissa expressed a determination to improve the productivity and performance of the firm. The board of directors of Yahoo was pleased by the profile of the Mayer and had confidence in her potential of transforming the company. Mayer's approach to leadership was entailed on creating a culture where she would authorize the policies to be followed but they would not to be discussed with employees. According to author Rainey, this form of leadership can be classified as transactional leadership style (2009). Nonetheless, the technique exerts a lot of pressure on employees and deprives them from the chance to express their views and opinions. Therefore, the leaders are left with all the power to make the decision concerning the operations of the company (Leadership Styles, 2013). As a result, this leadership style leads to a weak relationship between the personnel and its leaders.
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Moreover, motivation and commitment of the employees to the mission of the company is lowered. Notwithstanding that, other leadership styles such as transformational and charismatic approaches can be considered to create the unison and stronger elationship between the employees and management (Avery, 2011). A transformational leader seeks various ways to meet the set goals of the firm through the introduction of different change initiatives. Additionally, a charismatic leader follows the culture of a business to ensure that the mandate of the operations is not changed until success is attained. These options of the leadership styles are practiced to make sure that Mayer created a healthy culture for Yahoo and to continue its great legacy. However, the commitment of the enterprise workforce is sustained by the desire of the rewards that were promised by Mayer (Cook, 2013).
Benefits of Mayer’s Leadership Style
Notably, despite the leadership styles that managers choose to practice in their management, diverse experiences are gained in the each of them. According to the research on the training of Mayer in her administration, the transactional style that she selected had both advantages and disadvantages to the firm, the employees, and the management. The following are some of the benefits that were reached through her leadership:
The incentives and rewards. The awards that were given to the employees helped to encourage their productivity and minimize the passively performing personnel in the firm. Furthermore, the workers attained the extra rewards regarding their remuneration and were motivated to enhance their performance and protect their job.
A clear chain of command is ensured. Transactional leadership facilitates a clear structure and order of the protocol depending on which rules are handled. Hence, less confrontation or crisis over the management roles was experienced in the firm. Thereupon, the leadership of the business during the era was easy to execute and follow with the minimal resistance.
Short-term objectives were easy to achieve. In transactional leadership goals are set for the shorter periods where the workforce is encouraged to attain the target before going to the other level. Consequently, progress in the company and the market would be easy to reach. The existence of the control rrewards boosted their employees’ need to work better on all the tasks that are assigned to them. So, the staff works without negligence of some sectors but for the welfare of the entire firm (Barraclough, 2009).
Disadvantages of Mayer’s Leadership Style
Despite the goodness that came with the transactional leadership style at Yahoo, the company did not fare well enough in the market. In fact, the firm has been overcome by other internet providers and has lowered its performance in the web supply market. Therefore, some challenges contributed to this downfall have been traced back to the era of Mayer as the CEO. A number of these disadvantages are described below.
Punishment and rewards do not always motivate people to all the levels of management. Subsequently, some employees benefited from the system while others did not. For example, the low-level employees were satisfied for they attained promotions and salary increment while the top-level management did not achieve the rewards. Under those circumstances, the system created a division in the impact on the employees, especially the top management team. Correspondingly, little development and innovation were realized in the company and the performance stagnated. What is more, the nature of the IT field development demands novelty and continuous development. An unbroken chain of system or culture in a company cannot favor the breeding of ideas for the changes that may be needed to earn a competitive advantage in the market. Thus, the charismatic process of the controlling costs of the company and its innovative atmosphere were required from the workforce but decreased their performance (Yahoo geek goddess, 2014). Additionally, people will not be motivated by the distinct styles of the leadership to work with a company. The reward and initiative programs that came with the style did not attract the attention of the public since it was not unique. Markedly, the company did not have the advantage of attracting new talents and potential customers. Besides, the existence of the similar platform in the market such as Gmail created a competition and divided the market segments.