John Chambers (Cisco CEO) - The Role of Decisiveness and Decision Essay

John Chambers ( lake herring CEO) - The Role of Decisiveness and Decision Making - Essay ExampleIn October 2011, Ciscos net income dropped by 8%, while earlier in august this year, the net income had dropped by 36%, although it later on rose by only a small margin of 3.3%. Shareholder value creation is one of the most important strategies in an organization, and should be a priority for a CEO however, Chambers has failed tremendously. According to Rappaport (2006), executives should always make decisions that aim at maximizing value. In addition, at times, it is wiser to return the shareholders cash in dividend form, rather than utilise excess cash in investments that end up being destructive. Therefore, excess cash should be returned to shareholders when the value-creating opportunities are non available. In addition, an organization should focus on the activities that contribute to long-term value in the organization. Decisiveness is one of the major qualities of a successful chi ef executive officer the act of being decided is evident in Chambers such that, despite the rise of Cisco from $1billion to $40 billion followed by the challenges in 2001, Chambers has continued to hang on in the companys leadership. ... argues that the continuous recovery of Cisco can be attributed to the CEOs leadership skills, as he is known as an effective communicator and motivator of employees. Literature Review John Chambers, the Ciscos CEO, has faced both negative and positive remarks concerning his role in the company. The failure to work the public that the companys future earnings are reliable is one of the existing critics. Chambers replaced the top-down decision-making process with the committees of executives. This strategy required most managers to spend their time in committees this absurd system was later on abandoned. According to Geothals, Sorenson, and Burns (2004, p.319), the presence of the correct information leads to informed decisions, whilst decisiveness creates path for timely actions. Nevertheless, inconsistency and failure to fulfill promises in a CEO creates an atmosphere of mistrust from the employees and the customers. Therefore, an open management style contributes to the development of trust, improved chat skills, and listening skills as well. However, ineffective communication leads to poor teamwork due to lack of collaboration, decrease in productivity, and high levels of turnover. Decisive managers are aware that their decisions may not be effective hence, they leave room for modification, and therefore, they do not hesitate to modify their decisions once they realize that their original decisions are not effective. This is evident in Chambers case for instance, when chambers changed the companys top-down decision-making process to managers committee strategy, the new strategy proved ineffective as managers spent most of their time in committees. However, Chambers reconsidered changing the strategy after discovering tha t it did not