This document discusses leadership styles and organizational effectiveness within Sony-Ericsson. It begins with definitions of leadership and an overview of different leadership theories. It then provides background on Sony and Ericsson's structures and cultures prior to forming a joint venture. The partnership combined Sony's consumer electronics expertise with Ericsson's telecom experience. The document evaluates the leadership decisions at the time and how they would affect current situations. It stresses the importance of addressing cultural gaps upfront and having clear, supported goals and strategies for organizational effectiveness and sustainability.

1. Leadership Style and
Organizational Effectiveness
The Sony-Ericsson Endeavour1
Presented by
Hashamuddin bin Yaakob (900278)
Presented to
Dr Caroline M. Acosta
2014 OYAGSB UUM Slide 1

2. Agenda
1. Introduction – What is Leadership?
2. Major Leadership issues/decision made in case
3. Effectiveness Leadership decision at the time
4. Effect Leadership decision in current situation
5. Leadership Lessons
6. Conclusion
2014 OYAGSB UUM Slide 2

3. What is Leadership ?
 “The ability to influence a
group toward the
achievement of goals”
 (Robbins 2003)
“Management is doing things
right, leadership is doing the
right things”
(Warren Bennis and Peter Drucker)
Robbins, Stephen. Organizational Behavior. 10th ed. Upper Saddle River, NJ: Prentice, Hall, 2003.
2014 OYAGSB UUM Slide 3

4. Leadership Theory
The Evolution of Leadership Theory
Behavioural
Styles Theory
Transformational
Theory
Transactional
Theory
1940 1950s 1960s 1970s 1980s 1990s
Trait Theory
Contingency
Theory
2014 OYAGSB UUM Slide 4

5. Leadership Issues
Issues Sony Ericsson
• Joint-venture
• Culture
• Synergy
Creating a
successful JV
Has been able to
considerably broaden
its platform for mobile
communication
Great significance for its
future presence in
advanced electronics
consumer
Concentrate on its
future in mobile
infrastructure
2014 OYAGSB UUM Slide 5

6. Sony Background / Structure
1994 Major changes – organizational structure – creation new
company
1966 Organizational structure was done
1999 Strategic organizational change was introduced – four main
gateways for hardware
2001 Reform of the headquarter section – created global hubs
(entertainment, game, financial service,
internet/communication service
2003 Major change – Transformation 60
1. Clarifying operational structure and concentrating
technology and resources
2. Fundamentally reforming operational profit structure
2014 OYAGSB UUM Slide 6

7. Ericson Background / Structure
 An engineering company with limited attention to R&D
until mechanical switches were replaced by digital
 The situation gradually shifted from early 1960s
 New strategy in the early 1980s – embedded in the
Ericsson Information System (EIS) – launched its concept
“office of the future”
 1988 : new corporate strategy was formulated – focus on
telecommunications
 Late 1990s : overstaffing problem which existed in many
quarters of the company
2014 OYAGSB UUM Slide 7

8. Sony – Ericsson Partnership
Components
Ericsson Sony
Staff original numbers
in early 2001
3,000 1,500
Market knowledge –
telecom operators
Of some importance Limited
Market knowledge –
consumer electronics
Limited Very important
Handset technology Very valuable Sony did not want to
pay
2014 OYAGSB UUM Slide 8

9. Sony – Ericsson (JV)
 Late 2000s : formal discussion were held between
Ericsson & Sony
 April 2001 : Sony introduced major organization reform
 Soft Alliance with Qualcomm & Siemens  both failed
 2001 : serious discussions before start of reorganizing its
operations
 50/50 JV
2014 OYAGSB UUM Slide 9

10. Leadership at the time
 Sony Culture
 Emphasizes “a spirit of freedom and open-mindedness”
 Fighting spirit to innovate
 Sony’s Spirit
 Always sough to create innovative products that inspire new
lifestyles
 Life at Sony
 Sony aims to create a workplace that inspires employees to pursue
new challenges and grow by realizing their creative and innovative
potential
2014 OYAGSB UUM Slide 10

11. Leadership decision in current
situation
Sony may adopt the strategic actions as follows:
 Maintain The Leader Position in Product Innovation & Quality
 Invest in Broadband Network
 Invest in Internet-Enabled Products
 Reinforce Brand Values & Promote a World Class Brand
 Encourage Dreams
2014 OYAGSB UUM Slide 11

12. Leadership decision in current
situation
What Are Sony’s Success Factors?
 Visionary Leadership
 Religious Zealous to Innovation
 Pioneer Advantage
 Human Capital
2014 OYAGSB UUM Slide 12

13. Leadership Lesson
2014 OYAGSB UUM Slide 13

14. Leadership Theory
Transformational Leader
1. Leaders stimulate and inspire (transform)
followers to achieve extraordinary
outcomes
2. Characteristics:
I. Leadership is proactive
II. Works to change the organizational culture
by implementing new ideas
III. Employees achieve objectives through higher
ideals and moral values
IV. Motivates followers by encouraging them to
put group interests first
V. Intellectual stimulation: Promote creative
and innovative ideas to solve problems.
People will
follow a
person who
inspires
them.
2014 OYAGSB UUM Slide 14

15. Leadership Theory
Transactional Leader
1. Leaders promote compliance of his
followers through both reward or
punishment.
2. Characteristics:
I. Leadership is reactive
II. Works within the organizational culture
III. Employees achieve objectives through
rewards and punishments set by leader
IV. Motivates followers by appealing to their own
self interest
V. Management-by-exception: maintain the
status quo; stress correct actions to improve
performance
Subordinates
are not self-motivating
2014 OYAGSB UUM Slide 15

16. Leadership Theory
Contingency Theory
1. According to the contingency approach of
leadership, a single leadership style is not
applicable to all situations.
2. Contingency models of leadership styles:
I. Fiedler’s Contingency Model
II. Hersey and Blanchard’s situational theory
III. Path Goal Theory
IV. Tannenbaum and Schmidt’s leadership
continuum
a single
leadership
style is not
applicable to
all situations
2014 OYAGSB UUM Slide 16

17. Leadership Style
Research done by the consulting firm Hay-McBer
Associates (Harvard Business Review, 2000), found six
different leadership styles as the following:
1. The coercive style
2. The authoritative style
3. The affiliative style
4. The democratic style
5. The pacesetting style
6. The coaching style
2014 OYAGSB UUM Slide 17

18. Leadership Style
-Details
Coercive Authoritative Affiliative
Mode of Operation
Demand immediate
compliance
Mobilize people toward a
vision
Create emotional bonds and
harmony
The style in a phrase “Do what I tell you.” “Come with me.” “People come first.”
Advantage Efficient and effective
Maximizes people's
commitment toward
organization goal, enhance
clarity and flexibility
Drives up trust and flexibility,
build up sense of recognition
and belonging.
Disadvantage
Erode flexibility,
motivation and
responsibilty.
Failed when a leader is
working with a team of
experts who are more
experienced than him
Allow poor performance to go
uncorrected, and leaves
people rudderless
When the style works
best
In a crisis, to kick start a
turnaround, or with
problem employees
When changes require a new
vision, or when a clear
direction is needed
To heal rifts in a team/
motivate people during
stressful circumstances
2014 OYAGSB UUM Slide 18

19. Leadership Style
-Details
Democratic Pacesetting Coaching
Mode of Operation
Build consensus through
participation
Expect excellence and self-direction
Develop people for the
future
The style in a phrase “What do you think?” “Do as I do, now.” “Try this.”
Advantage
Drives up flexibility and
responsibility
Fast pace, focus and result
oriented.
Coaching improves flexibility,
responsibility and
commitment.
Disadvantage
Endless meetings and elusive
consesus. People end up
feeling confused and
leaderless
Erode Flexibility and
responsibility. Lack of
commitment.
Time consuming
When the style works
best
To build buy-in or consensus,
or to get input from valuable
employees
To get quick results from a
highly motivated and
competent team
To help an employee improve
performance or develop long-term
strengths
2014 OYAGSB UUM Slide 19

20. Conclusion
1. This study provides the background for two companies in
telecommunication and how they joined forces in the development
of future mobile communications
2. Combination Sony-Ericsson – an ideal international JV
3. Major conclusion:
1. Different types of cultural gaps should have been addressed at an early
stage
2. Considerable time would have been needed to identify mutual
shortcomings and hidden agenda
3. Stated goals should have been more clearly matched with available
resources
4. Stated goals should have been more supported by appropriate strategies
2014 OYAGSB UUM Slide 20

21. Conclusion
“…to create organizational effectiveness and ensure
sustainability, business leaders need to focus their
attention on aligning their people, the systems, the
structure and roles with the organization’s strategy,
while engaging their employees with their jobs and
with the organization.”
2014 OYAGSB UUM Slide 21