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Responsibilities of Management

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Dimitrios Champlaie
MGM255 -1203B-02: Management Fundamentals
Phase 5IP, Responsibilities of Management
Instructor: Kimberly Normann

Organizational change occurs when a company makes a transition from its current state to some desired future state. The first thing a company does is diagnose the current state of the organization. This involves identifying problems the company faces, assigning a level of importance to each one, and assessing the kinds of changes needed to solve the problems.

The second rule of order is to design the desired future state of the organization. This involves picturing the ideal situation for the company after the change is implemented, conveying this vision clearly to everyone involved in the change effort, and designing a means of transition to the new state. An important part of the transition should be maintaining some sort of stability; such as the company's over-all mission or key personnel—should re-main constant in the midst of turmoil to help reduce people's anxiety.

The third order of operation is to implement the change. This involves managing the transition effectively. It might be helpful to draw up a plan, allocate resources, and appoint a key person to take charge of the change process. The company's leaders should try to generate enthusiasm for the change by sharing their goals and vision and acting as role models.

The process of planning and implementing change in organizations could be done by minimizing employee resistance and the cost to an organization, while also maximizing the effectiveness of the changing effort. Edward Jones doesn’t require change to remain competitive, but more so to produce or offer the best product and services for their employees to offer to clients. Another reason for change is because of opportunities, it is inspired from either outside resources; technology, laws, current market, economy, or global relationships. Organizational change also comes because of those in executive positions have higher expectations and see the potential in the company. These individuals have visions and recognize the performance gap, and wish to improve in these areas and exceed all levels.

Edward Jones is a partnership, exactly as it was when it was established in 1922; every single one of the company’s employees is eligible to be a limited partner in the rapidly expanding company. Edward Jones has not forgotten over the last 86 years that every employee contribution – on the front line with customers or in the corporate office – can make the company stronger and more successful. (Edward Jones Careers) “There are 5,000 limited partners and 233 general partners, and approximately one-third of the workforce participates.” (MeetingsNet) “Half of all BOAs at Edward Jones are partners that share firm revenue” and in 2007 “the number of BOAs who are limited partners in the firm has more than tripled.” (RegistedRep) Today Edward Jones number of partnership still thrive, and the reason is partnership structure allows employees to keep a long-term focus, It allows them to be much more consistent in the company vision and mission. People feel that this is their firm. “It’s somewhat a matter of pride to be a limited partner of the firm,” says Carla Jones, a limited partner. “I am an owner of the firm, and I get a return on my investment based on the profitability of the firm. In reference to own a piece of Edward Jones Investment firm, where you benefit from the company success is a big deal and very unique in this industry, this is a golden opportunity, especially from an elite and reputable company that is recognized and awarded by such magazines as Fortune, and
Business Week. “Control is the process of monitoring activities to ensure that they're being accomplished as planned and of correcting any significant deviations. Control is important because it monitors whether goals are being accomplished as planned and delegated authority is being abused”. In order to know if you’re strategic plan or change that was implemented is effective and efficient, management must monitor every step on an ongoing basis. Individual mangers and management teams must meet regular and provide helpful information’s to the senior management, reporting progress to date, problems encountered and solutions

This is all part of the control process, in which managers must have a list of performance standards for each of the goals that were initially form in the planning stage. “Then managers must measure actual performance and compare that performance against the goals. If a variance exists between actual and standard, managers must adjust the performance, adjust the standards, or do nothing.” Managers must assure that plan is accurate, timely, economical, flexible, and understandable. This plan must have reasonable criteria, strategic placement, emphasizes the exception, uses multiple criteria, and suggests corrective action. After a change has been successfully implemented, a periodic reassessment should occur to make sure the change is still taking place.
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“A strategic plan represents a long-term vision for the business and is generally implemented by a company's leaders, which includes the board of directors and CEO they hire. A business plan covers the day-to-day operations and management to govern organization, planning, hiring and spending decisions. Successful companies regularly return to and adjust these plans to keep in sync with changing economic and marketplace forces” Strategic plans will give direction, offer a unified vision and correct situations in which employees and managers are following misguided paths’ Strategic plans present a company's future, usually opening with key goals, mission statements and a detailed timeline. They lay out the present state of the company, core values,strategic vision, business strategies, allocation of resources and company structure. They are developed by senior management, who must be guided whenever possible by firm data points, accurate market analysis and practical use of cash. (R.Rimm, 2012eHow Contributor)

In my recent studies on Edward Jones strategic plan, I have grown closely to understand the companies goals; leadership style, mission statement, and culture of this elite investment firm. I have learned so much about this company that I have become an admirer due to their business ethics, structure, and performance that I plan to apply for a summer intern position the in 2013. I believe in their principles, morals, and values. They provide excellent customer service, offer knowledgeable advisors, participate in their local communities, and deliver a honest approach to help individual reach their financial goals. I have also personally made an appointment to receive financial counseling and to discuss investment options with an Edward Jones financial consultant. The company generates huge profits by helping people make long-term investment decisions to promote financial stability and achieve modest, risk-regulated returns. Discovering a niche for the money conscious has served Edward Jones well, they now have more than seven million clients and over10,000 offices that expand through the United States and Canada. The one challenge I found that Edward Jones has experience recently is congruency from office to office. Having 10,000 offices in multiple countries allows more convenient, personal contact for clients, but that strategy also poses problems. Edward Jones must find financial advisors for each one of those offices that can all fit the Edward Jones mold. Since consistency from office to office is extremely important to the company, it is very difficult to find perfect fit employees. One advantage and a major key to what I believe that works well with Edward Jones, is their ability to maintain their public relations and how they approach their clientele. Edward Jones has consistently prided itself as a unique investment service provider by contacting and having face to face relationships with their clients. The company strives to form a trusting relationship between the financial advisor and the client. One of their slogans or quotes are “We like to say that our financial advisors have a good bedside manner.” This personal approach is a main reason for the company’s extensive network of offices throughout multiple countries. Edward Jones wants each and every client to be able to visit a local office in their community if need be. Through establishing a personal relationship with each individual client, Edward Jones is able to build trust. This is extremely important for a financial firm in terms of client retention and attraction, especially during difficult economic periods. If a client feels a personal connection with the advisor there becomes a sense of mutuality. Financial advisors provide the client with gains on their investments and in return, clients refer friends and family. In the last few years the managers at Edward Jones has implemented to the company strategic plan what I call “operation employee’s needs”. Properly identifying what employees want from their workplace, which is compensation, and benefits, this helps increase performance and satisfaction and decrease turnover and the unnecessary costs of offering things employees don’t want. The managers were able to locate, focus, and offer the things that make employees comfortable, loyal, and exceed in their positions. They were able to build relationships with employees and supervisors, while offering great benefits: Compensation/pay, management recognition of employee job performance, a safe and functional work environment, job security, communication between employees and senior management, and also the flexibility to balance work/life issues.

Edward Jones recognizes that the best customer service is built by the best employees and it recruits people who have what it takes to please the customers. Edward Jones Investment firm recognizes that the best customer service is built by the best employees. The company sets demanding standards for candidates, but makes a point to find these candidates in the local communities where they place their branches. In the past, Edward Jones has relied on word of mouth, college recruiting, and catering to underrepresented minorities to seek out fresh talent for the company. Importantly, Edward Jones recruits people who want to build a career with the company and who embody the company values – conservative, dedicated customer care first and foremost. Edward Jones motivates employees by encouraging them to provide hard work and long-term retaining in order to receive great opportunities and advancements. Incentives help make parallel employee goals with the firm’s commitment to customer care –some incentives are based on how well portfolios meet the client’s needs, and Edward Jones actively shares profits with employees when the company succeeds. The company is also well known for giving hard-working employees all-expenses-paid vacations, partnership status and recognition. These offerings encourage employees to dedicate themselves to the customer and to the job. Edward Jones has established a business model that serves as a perfect mediator for the compensation package provided to their employees. Their compensation structure as has reinforced a performance oriented and quality service corporate culture.

There is not much that is needed in the leadership structure; the system they have impended is working, and demonstrates a path to success. The compensation package and benefits provided by Edward Jones creates a highly motivated, satisfied and profitable work force. Through the use of commissions, bonuses and advancement opportunities, Edward Jones is able to motivate employees to form and beat both personal and corporate goals. This motivation is the key to the success and profitability of the company as a whole, and making them a market leader.

Edward Jones has the ability to problem solve, meet the needs of their stakeholders and stockholders, maximize effectively and efficiently, also hire and develop great leaders through training. Edward Jones leaders obtain a Contingency Theory I believe from the information gather thru my research. The leaders in this organization understand how to satisfy customers and get the best out of each of their offices worldwide. That is by linking incentives to valuable behavior and effort, set goals for employees that are specific and difficult, they do not coerce employees to achieve goals, but set goals that are perceived as achievable and equitable by employees, reduces stress caused by boredom and confusion about offer responsibilities that aligns employees’ interests with the interests of the company, and finally eases the stress of balancing work life and home life.

“The combination of investing in less volatile securities and a diversified buy-and-hold approach to investing define Edward Jones as a low-risk, safe investment for clients. This investment style aligns with the company’s customer service approach. Creating a safe feeling for clients reinforces a personal relationship and trust which is key to the success of the company.” Conservative portfolio management has made Edward Jones a profitable company while its competitors have suffered losses; Edward Jones has remained a staunchly conservative brokerage despite the fad of subprime loans and high-risk trading. Now, more than ever, investors are looking for a sure thing and will be more likely to choose more conservative returns with Edward Jones over its struggling competitors.(K.Meyer2012)

Reference:
Edward Jones. 2008. http://www.edwardjones.com/en
Kammeyer-Mueller, John. Compensation Concepts Lecture. October 29, 2008 www.ehow.com (http://media.pearsoncmg.com/pcp/pls/cec/management/lesson www.campus.ctuonline.edu/Classroom/Pages/multimediacoursetext MGM255-1203B-02 : Management Fundamentals www.kammeyer-uf.com/HRmaterials/EdwardJones http://www.ehow.com/info_7974002_role-change-management.

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