Recently, a new policy is released by Yahoo. The policy forces managers to rank employees on a bell curve, then those who at the low end will be a tragic. They will get fired by Yahoo. This new policy, as part of Yahoo’s human resources management, has exerted great pressure to Yahoo’s employees.

However, from my perspective, the ranking system is a risky human resource tactic. Employee performance can not be simply evaluated by a curve. Sometimes it does not even follow a bell curve at all. Outcomes vary from different criteria. Though a bit pressure can motivate employees, constantly putting people under great pressure will lower their motivation as well as productivity. In reality, well-performing companies are less likely to evaluate their employees via ranking. They tend to evaluate employee performance comprehensively, which is also more fair to them. Thus, corporate as Yahoo should aim to create its own organizational culture to motivate its employees rather than take advantage of a ranking system which has fallen out of favor.

article source: http://www.businessweek.com/articles/2013-11-12/yahoos-latest-hr-disaster-ranking-workers-on-a-curve#r=most%20popular

According to David McClelland and David Burnham, managers fall to three motivational groups: affiliative managers, managers motivated by the need to achieve, and institutional managers. People in the first group aim to increase their popularity rather than achieve their individual goals. Those in the second group desire to reach their goals and obtain their own recognitions, regardless of what people think of them. However, those in the third group are motivated by power. People in the third group are the most effective and productive. They realize that the fundament of leadership is building power through influence people.

But why are managers motivated most by power? A successful manager usually has a greater need to influence others than a need to achieve personal goal or a need to be liked. Managers are those who lead a team to achieve a team goal. This is why they do not have a strong need to achieve individual goal. In addition, a successful manager should be capable to arrange his subordinates’s work properly. They have to be responsible, focusing on the entire team rather than individual. Thus, those who are motivated by power are more influential.

article source:http://hbr.org/2003/01/power-is-the-great-motivator/ar/1

By costing its impact on the environment, Puma redefines its productivity in the value chain, which creates corporate shared value (CSV). This assists Puma to build a sustainable competitive advantage in the long run, which guarantees it a stable market share. Moreover, the innovative accounting system helps Puma gain a better understanding of scarce natural source, which allows the company to build a more resilient and sustainable business model and better manage its impact on the environment.

article source:http://www.theguardian.com/sustainable-business/puma-value-environmental-impact-biodiversity

In January 2008, WikiLeaks posted stolen documents from Julius Baer, a Swiss bank, with bank records of approximate 1,600 clients. Later in September 2009, WikiLeaks posted an internal report from Trafigura, discussing a hazardous waste spill in Côte d’lvoire. These two cases exerted a tremendous negative impact not only on society, but also the corporate world. Business secrets are not safe enough if only collected by information systems.

The third technology revolution in the 1990’s has brought technology information to the business world. Corporates used to keep their information lived on paper about 50 years ago, which were much easier to manage and protect than they are today. Nowadays, most corporation have their own information systems, which aim to collect and protect all the data of the company. Though it is convenient for companies to use such a information system, business secrets are easy to leak. WikiLeaks is a case in point. This turns out to be a vital issue. Corporations may suffer a giant loss due to the leak of their information. Thus, companies should not over-dependent on their information systems. Security departments and protective systems should be set up to protect the information, in order to decrease the incidence of information leaking.

article source:

-http://www.economist.com/node/18226961

-http://www.economist.com/node/17680643

Adidas has partnered with Grameen Bank, a micro-finance organization, to manufacture low-cost shoes for the poor in Bangladesh. The creative partnership produces affordable footwear for the poor in Bangladesh, which prevent them from hookworm and other parasitic illness. In addition, these shoes are manufactured in developing countries, which also creates job opportunities for the poor. This partnership between Adidas and Grameen Bank are aiming to serve the poor rather than make profits.

By doing so, Adidas and Grameen Bank create a social business model that hold a sustainable economical strategy. They make great contribution to society by providing essential access to health to the poor in developing countries. This innovative partnership is a perfect example that illustrate shared value and corporate social responsibility (CSR). The social business project are catering for social need, not just conventional economic needs. Firms create economic values by creating social values. Thus, by reconceiving products and markets, Adidas succeeded to build a social responsible image towards the public. Moreover, it supports Bangladesh’s local economy indirectly by enabling local cluster development.

However, critics worry that CSR and CSV will become tools for companies that just want to greenwash themselves and enhance their social impacts.

article sources:

-http://knowledge.asb.unsw.edu.au/printer_friendly.cfm?articleid=1208

-http://news.xinhuanet.com/english/2009-11/18/content_12485466.htm

Google is regarded as the best workplace in the world by Fortune’s 100 Best companies to work for. To create a homelike working environment, Google provides its employees with organic food, comfortable offices, child center, and so on. Moreover, it offers mentoring programs and TED talk show to each of its employees. Besides, Google also has its famous 20percent rule which allows its employees get 20 percent of their time to work on their own project.

These are Google’s organizational culture. It represents Google’s values, characteristics and beliefs, all of which shaped the company’s image towards the public. A company’s organizational culture has both internal and external impacts. By providing its employees with a homelike atmosphere and daycare facilities, their motivation are highly improved, which enhances the entire firm’s productivity and its customer satisfaction. In addition, all engineers in Google are allowed to get 20 percent of their time to work on their own project. Thus, the flexibility and freedom provided by Google motivate the workers and keep them in the company. Another vital value of Google is expressed via a motto: “Don’t be evil”. Most of the company’s decisions are made based on this motto, which creates a brand image towards the public. Therefore, organizational culture is also part of marketing.

article source: http://smallbusiness.chron.com/googles-business-leadership-organizational-culture-58108.html

video source:https://www.youtube.com/watch?v=wsnSBhWEyK4

On September 11, 2013, Apple released iPhone 5s and iPhone 5c in California. The release of iPhone 5c actually carves a low-priced product line, which will seriously affect Apples’ existing market share. With the leadership of Steve Jobs before, Apple was concentrating on differentiate their products by three key elements: design, access to content via iTunes and brand prestige. They provided deliberate design electronic devices with high technology, which targeted the high-end market. When these devices were used by icons in various field, public would start to follow the trend. That was how it boosted Apple’s market share.

However, the new low-priced iPhone 5c seems a shift of Apple’s marketing strategy, which is all about market segmentation. According to Porter’s Generic Strategies, Apple is trying to switch from differentiation strategy to cost leadership strategy. The release of iPhone 5c is the product with a relatively lower price, which targets the low-end market. Nonetheless, the strategy shift is risky. It is not only a shift in marketing strategy, but also a shift in Apple’s culture. It may even lead to a decline in its market share, because consumers will not purchase products from a company that is no longer a marvel in the industry. For the same reason, we should also expect that many employees to leave.

You can’t have your cake and eat it too. Every company should focus on its own target market, rather than disperse to the whole market. Otherwise, the loss may outweigh the gain.

http://www.bbc.com/capital/story/20130904-the-end-of-apple-as-we-know-it

Micromanagement is defined as a management style whereby a manager closely observes or controls the work of subordinates. It generally has a negative connotation. Many leadership experts consider it as the No.1 of the public enemy. People usually equate leadership with delegation, which is precisely the opposite of micromanagement. However, many successful entrepreneurs, such as Steve Jobs, Mickey Drexler and Jeff Bezos, are unmitigated, unapologetic, micromanagers.

They are all ambidextrous leaders who are capable to strike a balance between micromanagement and delegation. Micromanagers are required to be experts. Otherwise, their comments may be not credible. However, to be an expert needs time and dedication, but people’s time and energy are limited. That’s why micromanagers must be selective. For instance, Jeff Immelt, CEO of the blue-chip industrial conglomerate General Electric, only intimately know the top 500 executives in the company, because these top 500 people represent the potential of the company.

Last but not least, having a capable team is a precondition for being a successful micromanager. Because of people’s limitation of time and energy, we cannot mind the overall situation and the details simultaneously. So every micromanager needs a strong, trusted backup to assist him in the work.

Although micromanagement seems contradictory to a leader, it actually enables more, but less, delegation.

http://www.bbc.com/capital/story/20131003-in-praise-of-micromanagement

Mass customization is a business model defined by Tseng & Jiao as “producing goods and services to meet individual customer’s needs with near mass production efficiency.” However, this is an ideal definition. No large corporations so far have been made substantial profits by using the mass customization model except for NIKE iD.

NIKE iD is a customizing service launched initially in 1999 by one of the largest sportswear company NIKE. It allows customers to design their own clothes or shoes online, and the customized items will be shipped directly to the customer’s, which is also a direct sale. NIKE iD expands customers purchased from limited choices by providing a limited range of material and colors to develop their unlimited own style items.

Data shows that NIKE’s online community has reached 15 million people, and their market share has increased from 48% to 61% during the same period. In addition, NIKE iD is now 20% of store total revenue, which illustrates that mass customization has become the driver of their revenue.

Forrester’s J.P Gownder concluded that “mass customization is finally the future of products.” As the rapid development of economy, the market of customization is tending to grow. Consumers have a tendency to substitute their purchase from manufactured goods to customized goods.

http://www.crossroadinnovation.com/nike-id

The article’s site:  http://www.economist.com/node/18928406

It was reported that the News of the World broke into the voicemail of a murdered girl, Milly Dowlers, which has exerted a numerous and widespread negative influence in the UK’s media. It would be a stain on the UK’s media history and the News International. It seemed that the News of the World was a habitual criminal who used to hire private investigators to hack into others’ phones. The issue was also concerned with the complete UK’s media world , Rupert Murdoch’s News Corporation, the police and the politicians. Apparently, the newspaper media in the UK was a depressing mess, which was considered rude and excessive.

In this case, the method using by the News of the World is defined as a crime, which concerns to the ethics. This raised a question. What is the appropriate relation between business and ethics? For businessmen, the fundamental incentive is profit, but they cannot be unscrupulous and greedy. Since firms are playing a vital role in the whole society, they are supposed to take the social responsibilities as their duties. Generally speaking, business cannot run out of the law. A successful enterprise is not only about making profits, but also about taking social responsibilities, keeping a good reputation and devoting themselves to the whole society.