Carlos Ghosn’s Management Style

In: Business and Management

Submitted By Reemh
Words 2626
Pages 11
I-Carlos Ghosn’s Management Style

Carlos Ghosn, clearly an extraordinary man with an impressive list of accomplishments already under his belt at a relatively young age. But what is it exactly about his management style that makes him stand-out from other leaders, why is it that so much attention has been showered onto him? In the first part of this report that is exactly what we will try to uncover.

Ghosn truly does have a unique management style, one that is perfectly suited to today’s global economic reality. In our view the following management practices are the ones that have been integral to the success of not only Ghosn’s turnaround of Nissan but also in his previous accomplishments at Michelin and Renault:


What really strikes you as you read and learn more and more about Ghosn is that he truly does not have any preconceptions or stereotypes. Whether he is facing a new and unknown country and culture or a situation within a company, Ghosn’s approach is what he calls “a clean sheet of paper.”

What Ghosn has been able to do so well is transcend what Peter M. Senge describes as “Mental Models” in his article The Fifth Discipline: The Art & Practice of the Learning Organization. As we have seen in the Senge’s article whenever you limit yourself to your Mental Models you reduce you ability to react effectively to changes in the environment.

Senge uses the example of oil companies unable to effectively deal with changes in market conditions following the creation of OPEC because of their own Mental Models in contrast to the success of Dutch Shell under the same conditions because they had institutionalised a process of breaking down Mental Models.
In Nissan’s case, one of its Mental Models was the reluctance to let go of a bureaucratic management structure and the keiretsus (Traditional Japanese supplier/manufacturer…...

Similar Documents

Carlos Ghosn

...The Personality of Carlos Ghosn: $10 Billion Dollar Man 1. Describe Carlos Ghosn using the “Big Five” dimensions of personality. The Big Five: 1. Extraversion reflects the tendency to experience positive emotional states and feel good about oneself and the world around one 2. Agreeableness is the tendency to get along well with others and cooperates 3. Conscientiousness is related to the extent to which a person is careful, scrupulous and preserving 4. Emotional stability describes a steadiness of mood and the ability to withstand minor setbacks, difficulties. Stable persons don’t easily become anxious, nervous, tense or angry. 5. Openness to Experience reflects the extent to which a person is original, has broad interests and is willing to take risks Characteristic Extraversion Agreeableness Conscientiousness Emotional stability Openness to Experience Carlos Ghosn in short Man of action, praised, feels good about himself, self-esteem, selfconfidence, fearless, hardnosed International background, acceptance as leader, listens to people, respected, devotion, motivation and empowerment Careful, scrupulous, follow-up, demanding, comprehensiveness, ready for unforeseeable incidents Risk prone, no step down or retreat Internationality, curiosity, overcoming anxiety, creativity, innovation, bearing huge risk through managing 2 companies In case of Carlos Ghosn it makes sense to start with his openness to experience. From the beginning of his live on he was facing constant......

Words: 1943 - Pages: 8

Management Styles

...Filipino Management Style Philippines: Management style tends towards the paternalistic as is often found in strongly hierarchical cultures. However, managers need to be aware of certain strong Filipino characteristics, which underpin personal relationships within the country. Firstly, people are extremely careful to ensure that others do not suffer embarrassment or any sense of shame (hiya) as a result of their own actions or their inability to meet the expectations of others. It is considered to be very bad behaviour to criticise another in public, as this is the greatest insult that can be given. To be openly criticised in public results in a loss of self-esteem and personal dignity. Any attack on an individual's self-esteem may have to be revenged. Therefore, managers are keen to treat subordinates with respect whilst, at the same time, maintaining the dignity of the position of boss. Instructions will be given clearly and precisely and subordinates will be expected to follow those instructions with little or no discussion. Secondly, relationship bonds run deep in Filipino culture and the manager expects loyalty. In return for this loyalty the boss will look after the interests of those subordinates. It is very much a reciprocal arrangement. __________________________________________________________________________ 5 Types of management Filipino Styles Managers are the one who supervise the store or company. How your Managers Supervise or how they ......

Words: 476 - Pages: 2

Scientific Management Styles with Modern Management Styles

...TOPIC# Compare and contrast scientific management styles with modern management styles Word Count: 1092 words Velko D Savov October 4, 2006 Table of Contents Introduction Management hypothesis………………………………………………....3 Defining of aims in past and present management styles…………….....3 Criticism of theories …………………………………………………..3 Similarities of theories ………………………………………………....3 Past theories applied in present days……………………………………3 Factors leading to a change……………………………………………..3 Past management theories used in present time………………………...3 Theory of past and present management styles………………………..4 Comparison of theories……………………… ………………………..4 Conclusion……………………………………………........5 Bibliography…………………………………………...........6 Velko D Savov October 4, 2006 Throughout this essay, I will be putting emphasis among the different theories from the different scientific and modern management styles. A clear comparison and distinguishment will be contrasted. It will be based upon past and present management hypothesis. Throughout the expansion of scientific management, the main aims were to achieve a developed approach were studies of work and their improvement could have been done. Past theories were strongly focused on the human......

Words: 1439 - Pages: 6

Management Styles

...Leadership Styles and Management: A Look into Different Styles and Theories Jamie McCreery Fort Hays State University Abstract Different leadership and management styles affect and motivate individuals differently and directly impact successfully achieving organizational goals within the group. This paper discusses the different styles seen as well as the theories, characteristics and pros/cons of each style and theory. Keywords:leadership style and theory, management What is leadership? Leadership has been described as "a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task" (Wikipedia, 2014). Leadership skills are considered to be of highest importance when looking for quality management personnel (Wolniak, 2011). By employing managers who are successful in influencing and motivating staff companies are successful in achieving objectives defined by the organization (Taleghani, Salmani, Taatian, 2010). Varying countries, cultures, conditions, and expectations all weigh heavily on the success of individual groups (Taleghani, Salmani, Taatian, 2010). Leadership and motivation styles vary from person to person, that is why it is essential for managers to know and understand their leadership style and how their particular leadership affects their workplace. Leadership is influenced by many things that is......

Words: 1611 - Pages: 7

Management Style

...Enci Shao Motivation & Management Style Maslow’s hierarchy of needs is an interesting way of analyzing the motivation of people to work. According to Maslow, there are five needs: physiological, safety, belonging, esteem, and self-actualization. Physiological needs are the most basic ones of food, water, sleep etc. In a work context, providing pay to an employee allows them to pay for these necessities. Safety needs are the next level of needs and consist of security of health, property, employment, etc. Providing long-term employment without prospects of arbitrary lay-offs provides security. Belonging needs consist of friendship, companionship, etc. Having friendly co-workers can provide for this need. Esteem needs regard respect from others, self-esteem, etc. Rewarding a higher status on a long-term and productive employee can satisfy this need. Finally, self-actualization needs refers to the possibility of realizing someone’s full potential. An employee becoming the best employee of the factory can feel this need satisfied. As pointed out before, people have several different needs, and to some degree, companies can provide for to each of them. The ability of a company to satisfy these needs will ultimately enable it to be retain the best workers and make itself as a place where people want to work and stay for the long-term. Regarding management styles, an interesting concept somehow related to the Maslow’s hierarchy of needs is the theory of X and Y......

Words: 407 - Pages: 2

Management Styles

...Defining Strategic Management Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management. First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Next, leaders must make strategic decisions. These decisions, broadly speaking, address two basic questions: What industries should we compete in? How should we compete in those industries? These questions also often involve an organization’s domestic as well as its international operations. And last are the actions that must be taken. Decisions are of little use, of course, unless they are acted on. Firms must take the necessary actions to implement their strategies. This requires leaders to allocate the necessary resources and to design the organization to bring the intended strategies to reality. As we will see in the next section, this is an ongoing, evolving process that requires a great deal of interaction among these three processes. Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm...

Words: 592 - Pages: 3

Management Style

...Management Style Rachele Stokes HCS325/ Health Care Management Kristin Schmidt Management means someone who is in charge of a group of employees that oversees the daily tasks. They show interests in the ideas of their employees and take their concerns to heart. They make sure that the work gets done but not at the expense of their employees personal well being. A manager is someone who the employees can go to if they have a problem and want to be heard and taken seriously. A good manager has the ability to be kind and understanding to their employees’ needs and concerns. They can do their job and make sure the company is going where it needs to do without being impersonal. They make sure that their employees know that they can come to them for any reason and will not be judged. A poor manager only focuses on their work and does not care about their employees. They do not want to be bothered they just want to do their work and make sure that the company is running smoothly. The management style that a person has says a lot about the kind of person they are. Those who are more focused on their work and getting it done, seem to only want to make sure things are organized and stay that way. Those who are more open seem to be a more out going person and are concerned about others. Some managers that concentrate on work are able to leave work and be a different person at home. My management quiz relieved that I am a synthesizer manager....

Words: 382 - Pages: 2

Management Styles

...| Management Style Essay | Arkisha Robinson | HCS/325 | 11/17/15 | Shirley Seward | Define Management Managers is a person who has power and responsibility, they make decision and oversee a facility. A manager can management a range from one individual to an organization small or large, there are managers who is a manager of multinational companies. A manager, make sure that the company or companies are running smoothly, and the rules are being followed. They deal with many people, and they control things, people or both. Good Manager Qualities In order to have a good manager qualities, they have to tap into talents and resources. This is done in order for them to bring out the support and best in other people. An outstanding manager makes sure he/she evokes possibility in others. Creativity separates competences from excellence. Creativity helps captures people’s attention, it helps pull the pieces together. Structure helps set parameters, limitations, and guidelines in the workplace. A stellar managers knows how to work in a structure environment, and they will not let the structure impinge upon the project or the process. A manager is committed in making sure their team and the project is successful. Poor Management Qualities Poor manger qualities is a manager who does not care about their work or the employees. Manager with poor management qualities, they always have to be in control, they are stubborn when they feel they are right. They like......

Words: 488 - Pages: 2

Management Style

...As you may know, different management styles are required in different parts of the world. It is important to choose the right management style for each situation, which is a key to success for an organization. All managers use a management process which consists of planning, organizing, leading and controlling. So they have to perform many roles in an enterprise. What they can do with various situations will totally depend on their style of management. A management style is an overall method of leadership used by a manager (Lessem et al, 1999). This essay will first demonstrate different types of management styles, and then discuss three key factors that can influence management style, with reference to Japan and America. Each of the management style below has its unique features and if they will be well understood and used, they can give scope to maximum effect in the specific field. In daily management, there are usually four management styles. The first is autocratic management style (Wallace et al, 1988) which also called instructive management style. In instructive management style, managers give instructions to the subordinates or teams about what to do, how to do, when to do in every possible way without getting any opinion or suggestion. The management behavior module is: I come to decide what you would do. It might save time when making decisions, but it could lessen the motivation of the staff. Autocratic management style may be suitable in circumstances when a......

Words: 1293 - Pages: 6

Management Styles

...Management Styles Trishma Samlal HCS/325 01/25/2015 Mosunmola Adeyemi Management Style There are several different types of management styles, which can determine your outcome. Autocratic, Laissez-faire, democratic and bureaucratic are all different managerial styles. From my quiz results I displayed a democratic type of management. I allow employees to make contributions to the decision-making process even thought I have final say in the choice. I offer clear guidelines and explain how procedures should be followed. The majority of my employees are satisfied, skilled at their jobs and motivated to perform. This is because of this management style, as it promotes creativity and diversity in the working Management Management can be defined as a business organizing, planning and delegating guidelines and policies to meet specific goals. Management has been defined as the process, comprised of social and technical functions and activities, occurring within organizations for the purpose of accomplishing predetermined objectives through humans and other resources (Longest, Rakich, & Darr, 2000). According to Thompson, Buchbinder & Shanks (2012), “Healthcare management is the profession that provides leadership and direction to organizations that deliver personal health services, and to divisions, departments, units, or services within those organizations.” Page 1). Qualities of a Good Manager Every organization has a goal of having a manager that can perform......

Words: 797 - Pages: 4

Management Styles

...Essay: Management Styles Describe the style of the manager you identified using the power dimension models described in the video. Describe one incident where the manager you identified used power to accomplish the organization's goals. Management styles vary within organizations. In some situations, more than one type exists within the same organization. This is classified as situational or contingency management, which can be beneficial due to the fact that different circumstances arise causing the need for flexibility (Management styles explained, 2011). Corporate culture typically dictates the method that is used. The style of one manager, the owner, Harry, within my current workplace would be considered a mix of autocratic and persuasive. He meets with upper management to discuss decisions that need to be made and once a conclusion is reached, it is up to each department manager to explain it to his or her staff. This represents one-way top-down communication. Other than upper management, he rarely asks for staff participation. There have also been times when he announces decisions to the company as a whole. In doing so, he “sells” the idea by using tactics to convince everyone that it is within the best interest of the company and employees. Both of these management styles can have good and bad results for our company. It seems that people have gotten used to the corporate culture that exists so it has not affected turnover. However, there have......

Words: 472 - Pages: 2

Management Style

...Management Style HCS/325 April 4, 2016 Lisa Jones Management Style Every manager has a unique management style when it comes to handling employees. Managers play a major role in building a bond between employees. Using a management style, managers can formulate strategies to ensure all employees come together as a single unit. It is ultimately the manager’s responsibility to make sure that employees are content with their job obligations to ensure self-fulfillment and a stress free workplace. Managers must understand the employees and must fight hard to fulfill his or her expectations. What is Management? Management can be defined as the act of getting individuals to work together to accomplish goals and objectives utilizing obtainable resources effectively and efficiently. Management is the driving force of the business. In today’s society, businesses are highly competitive and rely on an effective, efficient, competent, and capable manager to bring success to the organization. It is through management that company activities are well organized and carried out effectively. Without a constant flow of managers to guide organizations, society would not improve or exist from a professional stand point. Establishing managerial and employee communication is key. This ensures efficiency in the workplace. Good and Poor Qualities of a Manager There is a variety of qualities that determine if a manager is good or bad at his or her job. There are......

Words: 593 - Pages: 3

Management Styles

...Management is the process of dealing with or controlling things or people.” The quiz I took online is from the Management Center and it showed me all the qualities as far as strengths and weaknesses I have as a manager. Qualities of a good manager are delegation, organization, assertiveness, and leadership. The quiz I completed showed how I managed people as well as myself. When it comes to managing my teams work delegating is highly important and I ensure that the results match what I am looking for. It is always good to look for results but coaching to good results play a major role in getting there long term. Being able to manage people is also vital. The questions I answered showed that I am headed in the right direction when it comes to managing my employees or others. Good qualities that lead up to that is providing regular feedback on a daily or weekly basis and addressing issues constructively right away. As a manager you have to be able to manage yourself as well. Being able to use your time effectively and exercising authority well will lead to the right path in managing. Good managers focus on quality and patient safety especially in the health field patient safety is one of the top priorities. A poor quality of a manager are someone who turns to yelling to look for results and does not coach employees to earn results. Managers who are more controlling instead of allowing their employees to develop is also a bad trait. Someone who does not have guidance, and does...

Words: 439 - Pages: 2

Management Style

...Management can be described as ‘getting things done through people'. This means that there must be a manager to control and motivate these people or human resources. While there are many different styles of managers and management techniques the management theories are most important. Management theories describe certain behaviours that are renowned for achieving the goals of the business. The four main management theories are classical-scientific, behavioural, political and contingency. These all have various styles, outcomes and have many similarities and differences when put into practice in a business environment.  The Classical-Scientific theories of management developed in the late 19th and early 20th Century. Most of the workforce was inexperienced and uneducated so they had little managing experience. Democracy was not fully developed so as a result most owners and managers ruled with an ‘iron hand' and rarely consulted employees. Though from these roots many different management techniques and styles sprouted which would form the basis of management today. These include Hierarchical structure of organisation, Division of Labour, and Autocratic and Authority styles of management.  Hierarchical structure of organisation is the tradition form of organising a business. This can be best displayed in a shape of a pyramid, with the owner, CEO or Board of Directors at the top. This top level of management is concerned with planning organising and controlling. They are......

Words: 1212 - Pages: 5

Carlos Ghosn

...Master in Management Organizational Behavior & Leadership Case #2: The Personality of Leaders The Personality of Carlos Ghosn: The $10 Billion Man Read the following dossier of article extracts and answer the final questions. 1.- “The $10 billion man” Feb 24th 2005, The Economist Having turned round Nissan, Carlos Ghosn is about to run Renault as well It is said that he could add $10 billion to the market value of Ford or General Motors with a stroke of his pen. But Carlos Ghosn is not about to sign up as chief executive of either firm. Instead, in May, he will become the boss of Renault, France 's second-largest carmaker, while continuing to head Nissan, Japan's number two car firm. To ease the transition, this week he named Toshiyuki Shiga as Nissan's chief operating officer. Although Renault and Nissan have cross-shareholdings and a deep alliance, their relationship deliberately stops well short of outright merger. Perhaps that is why it has been so successful, avoiding the integration pain that has marred, for instance, DaimlerBenz's takeover of Chrysler. In his book, “Shift: Inside Nissan's Historic Revival”, published in English last month, Mr Ghosn says that the strength of the alliance “can be found, on the one hand, in its respect for the identities of the two companies, and on the other, in the necessity of developing synergies.” Certainly the benefit has flowed both ways since the Franco -Japanese deal was done in 1999. First, Renault......

Words: 3968 - Pages: 16