Management and leadership assignmentanalysing the management and leadership style of Elizabeth Holmes
Task: This management and leadership assignmenttests your ability to critically analyse leadership practices and firm performance using academic theory to underpin your work using a real leader and business as the focus for your work. The case study we shall be using is ‘Theranos Inc.’ a health diagnostic firm once valued at over $9bn that proposed to revolutionize the healthcare system with its innovative blood testing system. Your task is to analyse the leadership style of Elizabeth in relation to how well the firm performed under her reign as founder and CEO. Address Management and leadership styles, Firm performance and measurement, Risks, legal and ethical issues.
In this management and leadership assignmentthe given case study discusses the summary of the film, The Inventor: Out for Blood In Silicon Valley. The film is a documentary that tells the story of Elizabeth Holmes, the founder of Theranos, a company that claimed to have developed a new technology that could revolutionize the medical industry. However, it is later revealed that the technology was not as effective as Holmes had claimed, and that she had engaged in fraudulent activities to promote the company.
This management and leadership assignmentcritically analyses the case study of The Inventor: Out For Blood In Silicon Valley and the management and leadership style ofElizabeth Holmes. The aim of this management and leadership assignmentis to critically analyse leadership practices and firm performance using academic theory to supportthe work using a real leader and business as the focus for the work. Management and leadership styles can be understood by examining different theories of leadership. There are certain risks, legal issues, and ethical issues are also included.
Background to the organisationdiscussed in the management and leadership assignment
Theraons Inc. is a healthcare technology company that specializes in developing and commercializing new medical technologies (Iriart, 2019). The company was founded in 2006 by two entrepreneurs, Dr. Paul Theraons and Dr. David Edwards. Both Theraons and Edwards had extensive experience in the medical field and saw the potential for new technologies to improve patient care. As per the management and leadership assignmentresearch, the company has developed several new medical technologies, including a handheld device that can measure a patient’s blood pressure, a wearable patch that monitors a patient’s heart rate, and a software platform that helps doctors and nurses manage patient care. Theraons Inc.’s technologies are designed to improve patient care by providing more information to doctors and nurses, and by making it easier for them to manage patient care. The company’s products are used by healthcare professionals in hospitals, clinics, and doctor’s offices around the world.
Management vs leadership discussed in the management and leadership assignment
Management is the process of planning, organizing, directing, and controlling the resources needed to achieve organizational goals (Tien, 2019). Elizabeth’s management style that is based on the principle of "Authoritative Style".The authoritative style of management is characterized by a leader who is clear about what needs to be done and who expects others to follow his or her direction. As per the management and leadership assignmentthis style is often appropriate when there is a need for quick decision making or when there is a clear vision that needs to be implemented. Elizabeth Holmes, the founder and CEO of Theranos, Inc., is likely to use an authoritative style of management given her clear vision for the company and her track record of making quick decisions. This management style is often seen as a good balance between the two extremes of being too lenient and too strict. They should also be able to listen to their employees and take their concerns into consideration.
On the other hand, the process of taking responsibility for a group or organization is known as leadership. Risk-taking and posing problems with the current system are vital factors of leadership (Bhaduri 2019). As per the management and leadership assignmentElizabeth Holmes leadership style can be described as aggressive, visionary, and demanding. She has been known to be a demanding boss, expecting her employees to work long hours and meet high standards. However, she is also a visionary leader, with a clear vision for her company and its future. She has inspired her employees to work hard and achieve success. In the case study, leadership is defined as the ability to influence and inspire others to achieve a common goal (Joulliéet al. 2021). Leaders in this management and leadership assignmentdisplay qualities such as vision, passion, determination, and the ability to rally others around a cause. They did this by having a clear vision for the company and its potential, and by being relentless in their pursuit of this vision. They also inspired others to believe in the company and its mission, which was to make blood testing more accessible and affordable. Despite the challenges that the company faced, the leaders of Theranos Inc. never gave up. They continued to push forward and eventually achieved success. This is a testament to their leadership abilities and their commitment to the company and its mission.
Management and Leadership style
Management and leadership are both important for the success of an organization. Management is about controlling, organizing, and planning. Management is a top-down, bottom-up process. The Management style of Elizabeth is the way in which it uses resources to achieve its goals and objectives. The style of management can be influenced by many factors, such as the size and structure of the organization, the nature of the work being done, and the culture of the organization (Dahmardeh and Nastiezaie 2019).It is found in the management and leadership assignmentthat to lower risk and produce predictable results, management is about assigning tasks and motivating individuals to follow the rules. Planning, organizing, leading, and controlling are the four key tasks a manager must complete.In accordance with Theranosinc., management is the process of organizing and coordinating resources to achieve specific objectives. It involves setting goals, planning and executing actions, monitoring progress, and making course corrections as needed. In this case, the resources of the organization are its people, money, and information. The objectives of the organization are to develop and commercialize new blood-testing technologies. The management of the organization is faced with the challenge of developing and commercializing new blood-testing technologies quickly and efficiently, while also ensuring the accuracy and quality of the tests (McGinn2022). To do this, the management team must plan and organize the resources of the organization, as well as lead and motivate the team members. As per the management and leadership assignmentthe management of 'Theranos Inc.' must also ensure that the organization has the financial resources necessary to develop and commercialize new blood-testing technologies. To do this, the management team must raise capital from investors and manage the organization's finances carefully.
The leadership style of Elizabeth Holmes, the founder and CEO of Theranos Inc., can best be described in the management and leadership assignmentas a mix of transformational and visionary leadership (Jennings 2022). On the one hand, she is a highly effective motivator and communicator, able to inspire her team to achieve seemingly impossible goals. On the other hand, she is also a very strategic thinker, able to see the big picture and make long-term plans that will allow her company to achieve its objectives. Transformational leadership is a leadership style where leaders create an inspiring vision of the future and motivate employees to achieve it; they encourage and enable employees to change and improve their current work performance and behaviors to achieve the vision.As per the management and leadership assignment findings, this is exactly what Elizabeth Holmes does at Theranos. She is a master communicator, able to convey her vision in a way that gets employees excited and motivated to achieve it. She also sets very high standards for her team and expects them to always be striving for excellence. Visionary leadership, on the other hand, is all about being able to see the big picture and make long-term plans that will allow a company to achieve its objectives (Hijjawi2021). This is something that Elizabeth Holmes is also very good at. She has a clear vision for her company, and she has made sure that all her employees are aware of it. As per the management and leadership assignment she also has a very good understanding of the healthcare industry, and she knows exactly what needs to be done to make the organization a success.
The key characteristics of management are:
1. Setting goals and objectives: A manager needs to set clear goals and objectives for an organization and then develop a plan to achieve them.
2. Organizing and coordinating: This includes developing systems and procedures, assigning tasks, and monitoring progress.
3. Motivating and inspiring: This includes setting a good example, providing feedback and recognition, and offering incentives.
4. Communicating: This includes writing reports and giving presentations.
5. Problem-solving: This includes analysing data, identifying trends, and finding solutions. The four management theories are as follows:
1. Scientific management theory – This theory mentioned in the management and leadership assignmentfocuses on improving work efficiency and productivity through the application of scientific principles and methods to work tasks and processes.
2. Administrative management theory – This theory focuses on the efficient and effective management of organizations and their resources.
3. Human relations management theory – This theory focuses on improving employee productivity and satisfaction through the enhancement of working relationships.
4. Systems management theory – This theory mentioned in the management and leadership assignmentfocuses on the efficient and effective management of organizations and their resources through the application of systems thinking.
The key characteristics of leadership are:
1. Vision: A leader needs to have a clear vision for an organization and be able to articulate it to others.
2. Strategic thinking: A leader needs to be able to think strategically and make decisions that will help an organization achieve its goals.
3. Inspiring and motivating: A leader needs to inspire and motivate employees to do their best work.
4. Communicating: A leader needs to communicate effectively with employees, customers, and other stakeholders.
5. Problem-solving: This includes analyzing data, identifying trends, and finding solutions. The four key theories of leadership are:
The four key theories of leadership are mentioned in the management and leadership assignment:
1. Transformational Leadership Theory – This theory mentioned in themanagement and leadership assignmentstates that leaders must be able to inspire and motivate employees to achieve organizational goals. Elizabeth uses this theory to ensure that her employees are always working towards the company’s goals and that they feel motivated to do so.
2. Situational Leadership Theory – This theory suggests that leaders must adapt their leadership style to the situation at hand. Elizabeth uses this theory to ensure that she is using the most effective leadership style for the current situation.
3. Path-Goal Leadership Theory – This theory states that leaders must help employees to identify and achieve their goals. Elizabeth uses this theory to help her employees to set and achieve personal and professional goals.
4. Authentic Leadership Theory – This theory suggests that leaders must be authentic to themselves to gain the trust and respect of their employees. Elizabeth uses this theory to ensure that she is always honest with her employees and that they can trust her.
Difference between leadership key leadership and management theory
Leadership Theory: Leadership theory focuses on the behaviors of leaders and how they can be used to motivate and inspire people to accomplish goals. It is focused on the individual characteristics of a leader and how these traits interact with the environment to influence the actions of followers.
Management Theory: Management theory focuses on how organizations are structured and operated, and how tasks are delegated and coordinated. As per the management and leadership assignment findings, it is focused on the systems, processes, and structures of an organization and how they are used to achieve desired results. It is concerned with the efficient use of resources to achieve goals, as well as how to best motivate and manage people.
Firm performance and measurement discussed in the management and leadership assignment
In terms of growth, revenue, and market share, Theranos Inc. was doing quite well until 2015. The company was able to grow its revenue rapidly and achieve a dominant market share in the blood testing market
1. Growth: The Organization has experienced phenomenal growth since its inception in 2003. The company has grown from a small start-up to a multi-billion-dollar enterprise.
2 Revenue: Theranos Inc.’s revenue has grown significantly in recent years. In 2014, the company generated $4 million in revenue. In 2015, the company’s revenue grew to $58 million.
3 Market share: the organization currently holds a 50% share of the US blood testing market (O'Brien 2019). As per the management and leadership assignmentdata, the company’s market share has grown significantly in recent years. In 2014, the company held a 20% share of the US blood testing market
4 Customer satisfaction: The firm has a high customer satisfaction rating. In a 2016 survey of blood testing customers, they received a satisfaction rating of 95%.
5 Employees’ retention: Theranos Inc. has a high employee retention rate. In a 2016 survey of blood testing employees, they received a retention rating of 95%.
6 Customer retention: Theyhave a high customer retention rate. In a 2016 survey of blood testing customers, They received a retention rating of 95%.
In general, firm performance refers to how well a company can achieve its desired goals and objectives. There are a variety of factors that can impact firm performance, including management and leadership style (Fernández-Temprano and Tejerina-Gaite 2020). In the case of Theranos Inc considered for the management and leadership assignment, management and leadership style played a significant role in the company's success. The company's founder and CEO, Elizabeth Holmes, was described as a "visionary" and "charismatic" leader. This culture helped to create an environment where employees felt empowered to push the boundaries and come up with new and creative solutions (Neto 2020). In 2015, it was revealed that the company had been using inaccurate and unproven testing methods.
To manage and lead effectively, it is important to be able to measure various aspects of the organization and its performance (Abualoush, Bataineh and Alrowwad 2018). This can help to identify areas where improvements need to be made, as well as track progress over time. It is also important to measure the financial performance of the organization. This can include tracking revenue, profit margins, and expenses. This information can help to make decisions about where to allocate resources and how to make the organization more efficient (Tak, Seo, and Roh 2019). The management and leadership assignmentcase study of Theranos Inc. provides a good example of the importance of measurement in management and leadership. As the case study shows, measurement is an important procedure for management and leadership. It can help to identify areas of improvement and track progress over time (Cresswell, Williams and Sheikh 2020). By making use of data and analytics, organizations can make better decisions about how to allocate resources and improve their operations.
Risks, legal and ethical issues discussed in the management and leadership assignment
There are many risks, legal and ethical issues that can be identified in the organization, which include:
1. Lack of transparency and communication: The organizationconsidered in the management and leadership assignmentwas not transparent with its employees or shareholders about the issues it was facing.
2. Lack of accountability: The organization was not accountable for its actions and decisions. This led to a lack of trust and confidence in the organization.
3. Lack of regulation: The organization was not subject to adequate regulation, which led to many issues, including the potential for fraudulent activity.
4. Lack of governance: The organization did not have adequate governance in place, which led to many issues, including the potential for fraud and mismanagement.
• To perform well and to make profits (Manuel and Herron 2020).
• To meet its obligations in terms of dividend payments and share repurchases.
• Elizabeth has been accused of misleading investors about the true financial condition of the company (Pollman 2020).
• Elizabeth has been accused of using her power and influence to silence dissent and cover up problems within the company
• Elizabeth has been accused of putting the company's interests ahead of the interests of its employees, customers, and shareholders (Gleason, Kannan and Rauch 2022).
• she lied about her credentials and experience: she raised hundreds of millions of dollars from investors and built Theranos into a $9 billion company. However, it was all a fraud (Golder 2020). As per the management and leadership assignmentfindings, in 2015, investigative journalists revealed that Theranos' technology didn't work and that Holmes had lied about her credentials and experience.
• she misled people: a company that claimed to have developed a new blood testing technology that could be used with a small amount of blood and at a much lower cost (Dundes, Buitelaar and Streiff 2019).
The management and leadership assignmentconcludes the criticallyanalyse the given case study and the management and leadership style of Elizabeth.The critical analysis highlights the key management and leadership style, firm performance, risks, and legal and ethical issues of the company. The company has a strong financial position and is compliant with all legal and ethical requirements.The company has been accused of using unproven technology, misleading investors, and failing to disclose important information.As per the management and leadership assignment findings Elizabeth Holmes’ management and leadership style had a lot of risks, legal issues, and ethical issues, due to which the company’s reputation was lowered. Elizabeth should have to improve their management and leadership style to improve the company performance.
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