LEADERSHIP IN BUSINESS

Group Empirical Assignment XO Suki

By: Kevin Pratama Eka Darmadi Lim Eric Ariawan 3094004 3094802 3094808

Class: Y

University of Surabaya Faculty of Business and Economics International Business Networking 2012

Manager Profile:

Name Age Position Date Birth

: Mr. Harry Yohanes. S.E : 29 Years Old : Outlet Manager Xo Suki Galaxy Mall : Surabaya, August 18, 1983

Education Elementary School Junior High School High School University

: Petra Jemursari (1989 1994) : Petra Jemursari (1994 1996) : Petra Jemursari (1996 1998) : Petra University (1998 2002)

Working Experience: 1. 2. 3. 4. 5. 6. 7. Oil Company TOP ONE As a Sales Person - From 2001 until 2002 (Part-time Job) Ice Cream Cocofrio As a Waiter From 2002 until 2002 Ice Cream Cocofrio As a Captain From 2002 until 2003 Surabaya Plaza Hotel As a Kitchen From 2003 until 2005 Surabaya Plaza Hotel As a Chef From 2005 until 2007 XO Suki Galaxy Mall As Supervisor From 2007 until 2009 XO Suki Galaxy Mall As Outlet Manager From 2009 until Now

Company Profile:

X.O Group of Restaurants was established since 2005 at Surabaya and offers several concepts of Chinese Food and Grilled cuisine such as Suki (Steamboat), Grilled, Signature Cuisine and Dim Sum. The segmentation of X.O Group of Restaurants is the middle up class consisting youngsters to family. Chinese Food concept was chosen because it has varied of menus. Besides that, Chinese Food is one of the most favorable cuisines which own the biggest market range in the world, especially in Indonesia. Suki, that also known as Steamboat is the main product of X.O Group of Restaurants because of the health fact. Suki Menu or Steamboat is kind of cuisine which is use boiling as the cooking process so it maintains the healthiness of foods. The

uniqueness about Suki in X.O Group of Restaurants, customers can choose which food they like and then boil it according to their own appetite with two selections of soups such as Tom Yum or Chicken Stock. The self-cooking process will create familial atmosphere during they dine in X.O Restaurant. Theoretical Base: What is Leader? A Leader is someone in authority to lead others to accomplish a goal(s). A leader needs to be able to motivate others to accomplish a goal(s) while at the same time encourage others to work toward their own professional goals. What is Leadership? The ability from a leader to influence group to achievement their goals. The Ability to influence a group toward the achievement of a vision or set of goals Leadership is the art of motivating a group of people to act towards achieving a common goal. MR. Bernard Says: Any person who is more than ordinarily efficient in carrying successful psychological stimuli to others and is thus effective in conditioning collective responses may be called a leader. There is no mention of the characteristics of the group or situation here. What the Leader do? Lead People Influence People Command People Guide People Direct vs indirect leadership Direct involve attempt to influence followers when interacting with them or using communication media to send message to them such as memo, sending email messages, holding meetings with small group of employess, participating activities involving employee such as attending training sessions, company picnics. Indirect Leadership attempt to use memo, email, media, phone to talk and manage their employee

The Nature of Leadership: Leadership - process whereby one individual uses no coercive techniques to influence other group members toward attaining defined group or organizational goals Leadership influence is goal directed - exercise influence for a purpose Leadership requires followers - leadership is a two-way street

Effective Leadership Qualities: 1. Cooperation 2. Drive 3. Decisiveness 4. Dependability 5. Energy 6. Emotional Stability 7. Foresight 8. Fairness 9. Human Relation Skill 10. Imitative 11. Integrity 12. Judgment 13. Objectivity Managers vs. Leader Managers Focus on things Do things right Plan Organize Direct Control Leaders Focus on People Do the right things Inspire Plan Motivate Build

Leadership Style: 1. 2. 3. 4. Autocratic Democratic Laissez Faire Situational

Autocratic Leadership A leadership style characterized by specific instructions to employees regarding what, how, and when work should be done. Micro-management style The leader plans, organizes, controls, and coordinates. Emphasis is on getting the job done without regard for input from others.

Advantages 1. Efficiency 2. Employees know the managers expectations. Disadvantages 1. 2. 3. 4. Discourages employees from thinking about process improvements Employee dissatisfaction Decline in worker performance Does not prepare employees for promotion or possible advancement

When to use the autocratic style? 1. During an emergency 2. Managing temporary employees 3. Managing new employees Democratic Leadership A leadership style characterized by encouragement for employees to share in the decision-making and problem-solving processes. General management style Considers everyones viewpoint in decision making Utilizes team concept in goal setting

Advantages 1. Employees actively involved in decision making 2. Higher employee morale

3. Stronger employee commitment to established goals Disadvantages 1. Time consuming 2. Not everyone likes to participate in decision making. When to use the democratic style 1. Managing employees who are committed to their jobs 2. Managing employees who are interested in more responsibility 3. Managing experienced and well-trained employees Laissez Faire Leadership A leadership style in which minimal direction and supervision is given to workers. Open management style Management shares information Team (or individual employee) is completely responsible for the workload.

Advantages 1. Easy management style to administer 2. Complete empowerment for employees Disadvantages 1. Poor decision making may result. 2. Some employees do not perform well without direction and supervision. When to use laissez-faire 1. Managing experienced, well-trained, and highly- motivated workers 2. Managing home-based employees, outside salespersons Situational Leadership Leadership characterized by shifts in management style as appropriate for individual employees. The management style applied depends on the needs of each employee.

Advantages 1. 2. 3. 4. Management style personalized for each employee Improved communication High employee morale Improved production

Disadvantages 1. Time consuming 2. Difficult to manage When to use situational management 1. Highly experienced manager 2. Manager highly skilled in human relations 3. Employees with range of needs for supervision Democratic leadership is related with the type of leadership of Mr. Harry because when Mr. Harry makes the policy, that policy must according to all employees view point. Mr. Hary cannot make his own policy; the policy must according to the decision of the entire employee in XO Suki. Transactional Leadership The transactional style of leadership was first described by Max Weber in 1947 and then by Bernard Bass in 1981. This style is most often used by the managers. It focuses on the basic management process of controlling, organizing, and short-term planning Transactional leadership involves motivating and directing followers primarily through appealing to their own self-interest. The power of transactional leaders comes from their formal authority and responsibility in the organization. The main goal of the follower is to obey the instructions of the leader. The style can also be mentioned as a telling style The relationship between leader and employee becomes "transactional" -- I will give you this if you give me that, where the leader controls the rewards, or contingencies. The transactional style of leadership is viewed as insufficient, but not bad, in developing the maximum leadership potential. It forms as the basis for more mature interactions but care should be taken by leaders not to practice it exclusively, otherwise it will lead to the creation of an environment permeated by position, power, perks, and politics.

Transformational Leadership Working for a Transformational Leader can be a wonderful and uplifting experience. They put passion and energy into everything. They care about you and want you to succeed. What Transformational Leader do? Develop the vision Sell the vision to the subordinate Find the way forwards Lead the charge

Transactional vs. Transformational Leadership Transactional Leader: Approaches followers with an eye to exchanging one thing for another Burns Transformational Leader: Recognizes and exploits an existing need or demand of a potential follower (and) looks for potential motives in followers, seeks to satisfy higher needs, and engages the full person of the follower Burns

As exactly said by Bass the transactional leaders work within the organizational culture as it exists; the transformational leader changes the organizational culture.

Transactional Leadership: Leaders are aware of the link between the effort and reward Leadership is responsive and its basic orientation is dealing with present issues Leaders rely on standard forms of inducement, reward, punishment and sanction to control followers Leaders motivate followers by setting goals and promising rewards for desired performance Leadership depends on the leaders power to reinforce subordinates for their successful completion of the bargain.

Transformational Leadership: Leaders arouse emotions in their followers which motivates them to act beyond the framework of what may be described as exchange relations Leadership is proactive and forms new expectations in followers Leaders are distinguished by their capacity to inspire and provide individualized consideration, intellectual stimulation and idealized influence to their followers Leaders create learning opportunities for their followers and stimulate followers to solve problems Leaders possess good visioning, rhetorical and management skills, to develop strong emotional bonds with followers Leaders motivate followers to work for goals that go beyond self-interest. In our opinion, the type of leadership of Mr. Harry is related with transformational leadership because Mr. Harry is very care with the employee, Mr. Harry is often to give the motivation to the employee, and also Mr. Harry want to learn from all employee (upper and lower level). TRAITS AND SKILL Traits refer to a variety of individual attributes, including aspect of personality, temperament, needs, motives, and values. Beside that skill refers to the ability to do something in effective manner. The traits and skill are also important to get the success of manager, there have some studies says that traits can predict emergence as an informal leader in groups, some says that traits predict emergence as an informal ledears in group, and also traits can prdict advancement to higher levels of management. In X.O Suki restaurant they also have traits and skill. Traits: 1. Adaptable to the situations Mr. Heri as the manager outlet in X.O Suki have many experience before he becomes outlet manager, such as as sales person in oil company, as waiter and Captain in Ice Cream Cocofrio, also experience to be chef, etc, so he can adapt the situation and his job also not same, waiter, captain, chef, sales, supervisor. For this experience, he can adapt the situation, it is needed to be leader. 2. Coorperative

In the experience that he share for us, Mr heri always active to help other employee, help the job of waiters, captain, and other employee. He want to other employee can learn from him, although right now he is outlet manager but he also active work help other employee, he also serving not sit down like boss, with that the employee can respect him. 3. Self Convidence To be leader, also must have self convidence, with a lot of experience, Mr Heri wants to open his restaurant, not just to be outlet manager but to be owner. Skill: 1. Diplomatic and tacticfull Leader also have a good decision making, In X.O Suki. In the meeting to take a decision, the outlet manager can take decision making not independent, they can make a disscusion so it will be good to the company, also they have a tactic for examle working hours they have shiff, it can make the employee can give 100% contribution to company 2. Fluent in Speaking In the speaking, the leader must have confidence and fluenty, so the employee can understand and respect to their leader 3. Socially Skilled Leader also must to pay attention to society, with the socially skilled can make the employee works more comfortable, and also can make the customers more comfortable and can make the customers loyal to their company. 4. Creative In X.O Suki, the manager outlet given authority by owner to make their restaurant more comfortable and can make the customers eat in their restaurant. Mr heri as a outlet manager in branch Galaxy Mall, he make a promo decision with coorperate BCA Bank such as buy one get one, it can make attract the customers buy and eat in their restaurant. STRATEGIC LEADERSHIP BY EXECUTIVE Leaders is the important things in the company, because the leader is the brain of the company. Such as in XO Suki, Mr heri is the Leader in X.O Suki restaurant branches in Galaxy Mall, so the performance X.O Suki in Galaxy Mall depend on him. It is good or not it depend on the leadership decision and strategy.

How leader Influence Organizational Performance? The managers will choose that the restaurant they want to, it means that it depend on the performance of the manager, if he can do good performance it can also make the employee will do the good things and that also can increase the productivitas in X.O Suki. To do their action, the leader may face many strong constrain. There have two constrain, first is internal constrain, second is external constrain. 1. Internal constrains The leaders disrection can be limited by a variety of internal organizational factors, for example the manager have a great idea but the employee and the finance of that company cannot fullfill the idea 2. External constrains Disrection of the leader include the nature of the organizations prmary product and services and the type of markets in which the organization operates. For example : have a disasters

Type of Leadership: I. Ethical Leadership a. Some aspects of behavior and motives : 1. Honest 2. Trustworthy 3. Altruistic 4. Fair b. Attempts to influence the ethical behavior of others II. Servant Leadership A servant leader must attend to the needs of followers and help followers to be healthier, wiser, and more willing to accept their responsibilities. Servant leaders must listen to followers, learn about their needs and aspirations, and be willing to share in their pain and frustration The servant leader must stand for what is good and right, even when it is not in the financial interest of the organization The servant leader must empower followers instead of using power to dominate them

III.

Spiritual Leadership

Spiritual Leadership describes how leaders can enhance the intrinsic motivation of followers by creating conditions which increase their sense of spiritual meaning in the work. In our opinion, the leadership type of Mr. Harry is related with servant leader because: 1. Mr. Harry wants to learn from the employee, it means that Mr. Hary want to listen the followers, for example, if the employee have some ideas or have some innovations in their job, so Mr. Harry wants to receive and learn those ideas and innovations. 2. Mr. Harry tries to understand the problems faced by the employee, it means that Mr. Harry wants to learn about the needs and aspirations of his followers, for example, if the employee have the problems in their job such as cannot work optimally, have the problems with the other employee, Mr. Harry wants to understand the problems and try to solve those problems.

Functional Work Teams The members of a functional work team generally have different responsibilities, but they are all helping to perform the same basic function. The teams typically continue operating for a long duration of time, and the membership is relatively stable. In a functional work team, leadership responsibilities are usually concentrated in a formal leader, although other group members may assist in performing specific leadership functions. Cross-Functional Teams Cross-functional teams are being used increasingly in organizations to improve coordination of independent activities between specialized subunits. The teams allow flexible, efficient deployment of personnel and resources to solve problems as they are discovered. Self-Managed Teams In self-managed worked teams, most of the responsibility and authority usually vested in a position of manager is turned over to the team members.

Virtual Teams In virtual teams, the members are geographically separated and they seldom if ever meet face-to-face. Most of the communication between members relies on computer and telecommunications technology. In our opinion, XO Suki is more related with Self-Managed Teams because all the responsibility and authority in XO Suki done by Mr. Harry as the Manager and then those responsibility and authority will be followed by all the employee in XO Suki. Mr. Harry as the manager of XO Suki will make the policy which will followed by all the employee in XO Suki. As the manager of XO Suki, Mr. Harry must manage the employee by giving training for them. Mr. Harry must also evaluate the job of the employee and also the condition of the company.

Real Case Sunday, June, 3, 2012 our team decided to interview one of XO Suki manager in Surabaya, His name is: Mr. Harry Yohanes S.E as the Outlet Manager in XO Galaxy Mall since 2009 until now. Before Mr. Harry Yohanes S.E as the Outlet Manager the old leader named Mr. Jimmy Candra S.E teach Mr. Harry, before him ready to be new outlet manager. Impartation from the *old* leader XO Suki Galaxy Mall already has a great outlet leader named Mr. Jimmy Candra S.E. after working for 3 years, Mr. Jimmy Candra promoted form Outlet Manager to Area Manager. Before Mr. Jimmy C, become area manager of XO Suki, means that He must find someone that become his legacy of outlet manager so that time Mr. Harry come to XO, and start his carrier as Supervisor, within 2007 2009 Mr Jimmy teach Mr. Harry to become outlet manager, some of the knowledge that Mr. Jimmy give to Mr. Harry o o o o XO System XO Culture XO Working System XO Characteristic

And within 1 year in 2008, Mr. Jimmy let Mr. Harry to work *alone* for Mr. Jimmy, He want to see the Mr. Harry performance and if he can pass it, he become the next outlet manager, finally Mr. Harry can pass it and become new outlet manager in 2009, as Mr. Jimmy promoted as Area Manager of XO, that hold all over XO in Surabaya.

The Leadership of Mr. Harry Mr. Harry have lot of experiences that he already have, form his previous job, sometimes we can say that Mr. Harry is an Expert, but in the beginning of his leadership, as usual he faced trouble that he never expected before, although the past two years while Mr. Jimmy help him to lead XO, but this time Mr. Jimmy disappear, he must lead XO as his own, here some of the problem that Mr. Harry faced: Decision Making Process Human Resource Lack of knowledge

Decision Making Process As an outlet manager, for sure that Mr. Harry should take control of the whole decision for his outlet, and some of decision cant be decided by his own, some of decision like employee working hour, employee insurance, employee bonus, employee sick permit, or outlet renovation, outlet SOP, Plan for the future, recruiting, training, marketing, promotion, resolving customer complain, etc. How Mr. Harry Solve this problem Meeting with his employee or staff Socialize to his employee (for decision employee) Transpiration with his staff Share with other outlet manager Share with his leader

Human Resource Up to 70% of XO employee only graduated from junior high school or senior high school, means that they have less knowledge, the way of thinking, and also the experience. How Mr. Harry Solve HR problem Training to the employee Evaluation Recruiting

For the training program Mr. Harry have his own training program, to his new employee that dont have lot of experience, one of the training program with this new employee by using the simulation, of daily XO activity like: how to welcome the guest, how to serve the customer, how to arrange the table, how to input the order into computer, After working in XO Suki for 5 years, Mr. Harry has many experiences such as making the policy for the company, managing the employee, etc. 1. Making the policy To make the policy in XO Suki, Mr. Harry must review that policy by himself. All the employee in XO Suki must agree with that policy because that policy is for all the employee needs in XO Suki. Mr. Harry must make the policy which is suitable with the condition of the employee in XO Suki. The policy made by Mr. Harry : a. The employee must come to XO Suki On Time b. Shift system for the employee 2. Managing the employee a. Recruiting There are some types to recruit the employee in XO Suki : - For the chef, waitress, human resource department, marketing department, operation department, and Finance department, XO Suki will make the job advertising in the media. (For the chef, XO Suki will train the chef by itself). - For the security, XO Suki outsource from outside company b. Training The employee must be trained about the product knowledge, operational. From this training, Mr. Harry can know the knowledge of the employee about the product in XO Suki and the ability of the employee in operational process of XO Suki. In training process, the employee must do the working simulation. In working simulation, the employee must do their job, but not in the real condition. From that working simulation, Mr Harry can know the knowledge, ability, and skill of the company in XO Suki. c. Briefing

Every morning all the employee in XO Suki must do the briefing. The function of briefing is to explain what is the main job of each employee in XO Suki. From that briefing XO Suki hope that each employee can understand what is the main job and they can work well.

d. Evaluation Mr. Harry will evaluate the job of the employee and the condition of the company. The function of evaluation is to know the strong, weaknesses, and problems of the employee and company. After know the strong, weaknesses, and problems of the employee and company, Mr. Harry can solve the problems faced by the company and employee, fix the mistakes of company and employee, and make the company and employee become stronger. Next Leader Preparation To find the new outlet manager of XO Suki, there are some methods: 1. Interview In interview session the candidate will be asked about the knowledge of the company, skill, and ability. 2. Background XO Suki will include the background of the candidate as the consideration to recruit the employee because the background of the candidate will influence the attitude and the working process of the employee. The background is include working experience, family, education, etc.