Management Essentials

Table of Contents

Introduction....................................................................................................................................3
Task 1: Management Practices..................................................................................................3
Task-2: Analysis of Business Challenges.................................................................................7
Task-4: Management competencies development................................................................15
Conclusion....................................................................................................................................19
References...................................................................................................................................20

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Introduction
The contemporary business environment recognizes that visionary leadership and
efficient management are essential components that propel organizational success.
Leadership can be defined as “The process of influencing others to understand and
agree about what needs to be done and how to do it” (Yukl, 2010:26). There are
different types of leadership styles that are identified like authoritarian, transactional etc.
Based on the context and the nature of the sector that the organization is placed, there
is a notion that a particular style of leadership style suits and fits. But for any
organization to succeed there are common traits like vision, ability to lead through tough
times, empathy towards the employees, values and integrity etc. that a leader should
possess and exhibit.

Managing involves using other people's efforts to complete tasks (Mullins, 2016).
Effective management facilitates this process by guaranteeing that the strategic goals
are translated into workable plans, meticulously organized, and precisely carried out.

This report evaluates X Corp.'s current management practices, identifying key areas for
improvement and proposing recommendations to enhance the company’s
competitiveness and success in the technology industry. Through a critical review of the
X Corp.’s mission, values and management practices, the report tries to assess whether
they are all aligned. Further, the analysis of the business challenges for the X corp is
conducted identifying key challenges that the organization is currently encountering.
The potential impact of the emotional intelligence of X Corp.’s managers in promoting
high levels of employee engagement and organization performance is critically
evaluated and presented.

Task 1: Management Practices

In the monograph named The Alignment Factor, Riel defines alignment as “A mutually
rewarding relationship between a company and its values, stakeholders and

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organizational culture that enables the firm to meet its objectives and realize its
purpose" (Riel ,2012, p. xvii) In this section, this report tries to understand and assess
the mission values and the management practices of the X corp.

X Corp.'s organizational identity, direction, and operational style are defined in large part
by its management practices, values, and mission. A comprehensive assessment of
these components allows us to understand, whether or not they are aligned and if
aligned promotes the company's long-term objectives and success in the fiercely
competitive technology sector.

X’s (formerly Twitter) mission statement is to “promote and protect the public
conversation — to be the town square of the internet.” (Pereira,2024).

Musk, who previously described himself as an "absolutist of free speech” opined that
a worldwide free speech platform is crucial, allowing individuals with diverse viewpoints
to express them in an interview at the Cannes Lions International Festival of Creativity
in France (Revell, 2024). Thus, Musk’s vision with respect to X Corp is reflected in the
mission statement of the organization. The main goal of the mission statement is to
establish an open, welcoming community where individuals from all walks of life may
interact, exchange ideas, and have deep conversations. It shows a dedication to
creating an environment where people feel free to express themselves and where a
variety of voices may be heard.

"At X, one of our guiding principles is upholding and honoring user voice. This core
value is a dedication to both privacy and the right to free speech. Additionally,
transparency plays a significant role in this commitment. (X Corp.com; 2024). In keeping
with that, X wishes to openly discuss how they incorporate this fundamental principle
into their decision-making. Every day, employees at X take into account the
organization's fundamental values in all facets of their job, from product design to
responding to legal requests for account information and other tasks.

Since 2012, releasing a transparency report every year, The management's actions
demonstrate the organization's commitment to the values that the company upholds.
Some of these actions include giving people access to their account information,

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sharing clear guidelines about appropriate uses of X's Public APIs and Gnip data
products, and providing in-service notices when content is removed, withheld, or
accounts suspended (X Corp User guidelines, 2024).

Examining the management practices of X Corp after the acquisition reveals a notable
shift in the organization's operational procedures. Musk identified as a "nano-manager,"
in contrast to several executives who were known for being micromanagers (Baer 2015;
Jackson 2022a). Key choices are decided at the executive level in X Corp.'s centralized
decision-making process, which is implemented under Elon Musk's distinctive and
forceful leadership style. Stability is the basic goal of leadership, and organized,
regulated operations are preferred.

The business has increased its emphasis on R&D and innovation. In the past, X Corp.'s
R&D division has concentrated on making small, gradual changes to its current
technology offerings and improving its products (Ordonez & Wash 2022).

Due to the management's activities, opinions regarding employee engagement have

been divided. More than half of the staff have been let go since the acquisition, and
Musk has made it plain what his ambitions are by banning employees from working
from home and canceling corporate meals. A new "extremely hardcore" Twitter that "will
mean working long hours at a high intensity" was the ultimatum that Musk conveyed to
employees (Sander s.d., 2022).

There are numerous definitions that highlight various alignment levels. In order to
improve organizational performance, researchers usually look into how well an
organization fits the external expectations of its surroundings strategically. This is
known as the external alignment perspective. From the standpoint of internal alignment,
academics examine the consistency of important organizational elements, such as the
mission, strategy, culture, and core values of the organization, as well as the processes
and management techniques that unite people, leadership, and systems in harmony to
achieve shared objectives (Sender, 1997).

In the present case, X Corp. has maintained its dedication to safeguarding consumers'
privacy and freedom of speech. Customers' trust has been strengthened by the

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company's transparent communication and business practices. It looks that the
management procedures of the organization effectively include this value. The
organization's values and mission statement were exactly in line with one another.

There are some matters of concern as well that needs to be addressed for the long-term
success of the company. The company’s centralized leadership and traditional R&D
practices are not well aligned with its mission of driving technological innovation. The
layoff of more than half of the employees, scaring away the advertisers, putting high
performance on the remaining employees have brought a trust deficit between the
employees and the higher management impacting the employee engagement towards
the organization, which is one of the key factors for driving innovation (Pereira,2024). To
match management with the objective, a move toward more decentralized decision-
making and an increased emphasis on disruptive innovation are required. Adopt a more
decentralized leadership structure that enables cross-functional teams to decide fast,
encouraging creativity and enhancing responsiveness to client demands.

There is a lack of complete alignment between the mission, values, and management
practices of X Corp., especially when it comes to leadership, innovation, collaboration,
and sustainability. The business must modify its management procedures to better align
with its fundamental values and technical innovation purpose if it hopes to achieve long-
term success. X Corp. may better connect its practices with its strategic aims and
values by decentralizing leadership, increasing its focus on disruptive innovation,
promoting collaboration.

Task-2: Analysis of Business Challenges

In order to stay competitive in the market and draw in an increasing number of users,
many businesses are striving to raise the quality of their offerings. The primary goal of
managerial decisions that include the periods and risks related to earnings forecasts in

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order to maximize the company's performance and sustain it over the long run is
corporate value (Brigham and Ehrhardt ,2014: 118).

Amidst a complicated and unpredictable corporate climate, X Corp. faces significant

problems that have an immediate effect on its reputation, long-term success, and
financial stability. Following Elon Musk's takeover, the company experienced a dramatic
change in its organizational structure as well as other audacious actions from Musk that
had an effect on the firm. The corporation has to work hard to win back advertising, turn
a profit, and strike a balance between free speech rights and long-term financial
viability. This analysis analyzes these issues critically, looks at how X Corp.'s
management skill in creativity and innovation can help with them, and assesses the
changes that need to be made in the decision-making process in order to lessen these
issues.

Challenge 1: Balancing Free speech and bring back advertisers.

Musk's idea of free speech, according to which X Corp should be a platform for all
viewpoints, has caused advertisers to object, arguing that specific kinds of information
should not be allowed to be published on the platform. It is likely that X Corp
management will need to find a middle ground between Musk's ideas about free
expression and the kind of internal regulation that marketers would like to see (Tani,
2023). One of the main problems facing the management is striking a balance between
what Musk views as a potential to develop a more open platform and what we know to
be important concerns for big advertisers, such as brand protection.

Challenge 2: Bringing the organization into profits.

Prior to Musk taking over, Twitter had difficulty matching the profitability of its
competitors, such as Meta and Tik Tok. The business's most recent earnings report was
from 2019 (Shah, 2023). Twitter's advertising revenue accounts for almost 90% of its
total revenue, however the firm has not been as successful in generating ad revenue as
its competitors. Research firm Sensor Tower believes that between September and
October of last year, Twitter's top 10 advertisers spent 89% less, from $71 million to
$7.6 million.

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According to research by Edelman (2018), brands typically steer clear of platforms that
could damage their reputation, and customer trust in businesses is strongly correlated
with ethical behavior. Similar problems have also been seen by platforms like YouTube,
when sponsors pulled out of fear of having their ads placed next to offensive content
(YouTube Adpocalypse). To avoid additional income decreases, X Corp. needs to find a
balance between fostering a safer environment for advertisers and permitting unfettered
speech. concurrently. X Corp should prioritize innovation and diversify its revenue
streams instead of exclusively depending on ad-generated income, as is the case with
Meta's Facebook marketplace.

Competency of creativity and innovation.

X Corp. has proven to be creative and innovative, especially in the areas of user
interaction and platform improvements. But these skills can be used even more to help
it overcome its obstacles. X Corp. can use its innovative powers to develop more
advanced ad-targeting and content regulation technologies in order to get advertisers
back to the platform. AI-driven solutions have the potential to significantly increase the
effectiveness of content moderation, giving platforms the ability to better control content
quality and preserve advertiser trust (Davenport and Ronanki, 2018). By providing
advertisers with more precise control over ad placements, X Corp. may further innovate
by assuring them that their brand won't be connected to offensive material.

Companies can gain from external partnerships and user-generated content to produce
new income prospects, according to Chesbrough's (2006) open innovation paradigm. X
Corp. should investigate new sources of income in order to increase profitability. This
can entail creating paid services or growing subscription-based offerings for consumers
looking for better experiences—like ad-free surfing, access to premium content, or tools
for professional networking. In order to monetarily support unique content offers, the
corporation might also go into joint ventures with companies and content producers,
following the model of YouTube and meta-Instagram.

Competency of Decision Making.

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Although X Corp. has the capacity for innovation, in order to effectively manage its
business problems, its decision-making procedures need to be improved. More
specifically, the organization's decision-making process needs to become more
decentralized and flexible.

Fig 1: Brain toffee problem solving model (Source: www.braintoffee.co.uk)

Applying the Brain toffee problem solving model to the preset case study of X Corp, we
clearly know the problem ad solution for the same, where efficiency in management is
the key. The management has to bring in the best from the employees gaining their
trust and giving them freedom, which makes the decision-making process more agile.

According to Eisenhardt and Zbaracki (1992), decentralized decision-making enables

companies to adjust to changing conditions faster. Employee morale has suffered, and
there has been a lack of creativity and dedication from the workforce as a result of the
bulk of the staff being laid off following the acquisition and centralized decision-making
led by Musk. By include staff members in decision-making and implementing a two-way
communication system, X Crop needs to work on regaining their trust. Deciding quickly

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in reaction to market dynamics would be made possible by decentralizing decision-
making processes for lower-level managers, especially those who are closer to the user
engagement and content moderation teams. X Corporation might address advertiser
concerns and content-related issues more successfully if its decision-making structure
was more flexible.

Task-3: Critical evaluation of the impact of Management Behaviors on

Employee Engagement and Organizational Performance

In the ever-evolving business landscape, organizations must adopt several tactics to

ensure their survival, given the intensifying competition. To attain optimal performance,
active employee involvement is one of the strategies. The definition of "simultaneous
investment of an individual's physical, cognitive, and emotional energy in active, full
work performance" (Rich et al.) applies to employee engagement. In their 2017 study,
Akhtar and Pangil looked at the connection between employee engagement and three
HRM practices: performance feedback, job security, and career advancement.

Establishing a robust and positive corporate culture is crucial in the current competitive
company landscape in order to enhance employee performance (Iskamto, 2021;
Jufrizen et al., 2021). The values, customs, beliefs, and behaviors that define an
organization's identity and methods of operation are reflected in its organizational
culture. According to Adam et al. (2020), an effective corporate culture inspires workers,
gives them clear direction, and has an impact on their decisions and behavior.

One of the things that affects employee engagement is leadership, which also helps to
create a certain organizational culture (Buil, I., Martínez, E., & Matute, J. 2019).
Therefore, the success of every organization greatly depends on the managerial
conduct.

There may be a difference between the company's ideal culture and the culture that
employees truly embrace, even in spite of the fact that organizational culture has a
significant impact on worker performance. This disparity arises when the company's
professed values and the norms followed on a daily basis at work diverge. Employee

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discontent, annoyance, and even poor performance may arise from this misalignment
(Ekosusilo, 2020; Hasibuan & Bangun, 2020).

The managers of X Corp. are encouraging high levels of performance inside the firm
and employee involvement. The ability to identify, comprehend, and regulate one's own
emotions as well as those of others is referred to as emotional intelligence (EI)
(Goleman, 1995). The idea is fundamental to leadership because it affects how
managers engage with their teams, reach decisions, and establish a positive work
atmosphere.

substantial organizational changes at X Corp., led by Elon Musk, including the mass
termination of over 80% of the workforce, increased workloads, and the elimination of
remote work, have had a substantial effect on organizational performance and
employee engagement.

Fig 2 : Goleman’s Emotional intelligence Model-2002.(Source: www.wellable.co)

Applying the above model to X Corp,

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Self-Awareness:

Elon Musk exhibits some self-awareness in his leadership, especially in light of his
status as a well-known public personality and high-profile CEO. His choice to set an
example by putting in long hours and spending the night at the office shows that he
recognizes the importance of motivating staff to be dedicated. His propensity to
minimize the emotional effects of harsh measures (like mass layoffs), however, can
point to a lack of complete awareness of how his actions impact the feelings of his
employees.

Motivation:

There is no denying Musk's intrinsic motivation and determination. His expectations of

top performance from his staff at X Corp. are a reflection of his unwavering pursuit of
innovation and success in those roles. He wants the workers to have a same degree of
commitment, so he sets an example for them by sleeping in the workplace and having a
strong work ethic. For many workers, though, this strategy may be too demanding or
unworkable, which can result in burnout.

Fig 3: Employee of X Corp sleeping in the office (Source: terra.com.br)

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Musk's strong sense of self-motivation and dedication to the business can motivate staff
members to put in more effort. Employees that perform well under pressure may be
more productive and more closely aligned with the objectives of the organization under
this leadership style.

In times of crisis or transition, Musk's leadership style of strong self-regulation facilitates

prompt decision-making. Even though the mass layoffs were traumatic, X Corp. was
able to streamline operations and maybe increase short-term financial efficiency
because of the decisive execution of the layoffs.

Musk's emphasis on exacting standards and unrelenting invention has the potential to
promote an environment where hard effort and creativity are valued. Workers that are
passionate about disruption and technology could be motivated to push the envelope
and give more to the creative projects the company works on.

The sudden terminations coupled with increased demands for job performance have left
many workers feeling anxious and stressed. Research indicates that these behaviors
may negatively affect staff morale and psychological safety (Kahn, 1990). The
remaining workers may experience burnout and worry about their own job security,
which lowers morale. Burnout may result from the expectation that workers "give their
all" and the repeal of laws allowing remote work, especially for individuals who are
juggling personal obligations or were used to flexible scheduling. Elevated stress levels
and an apparent deficiency of assistance could lead to increased employee attrition
rates, as workers look for more harmonious work settings elsewhere.

The management of X Corp. should concentrate on cultivating empathy and emotional

awareness in order to lessen the negative consequences of the layoffs and enhance
employee engagement. It will need compassionate leadership to regain the trust of the
remaining employees. One potential approach to address employee concerns around
job security, work-life balance, and professional growth opportunities is to foster greater
transparency and open communication. Increased employee autonomy in decision-
making can lead to better levels of satisfaction and engagement. By ensuring that
workers feel appreciated and invested in the company's future, participatory leadership

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can enhance performance and retention. Promoting teamwork in the development of
workplace regulations, such the ability to work from home, may be a useful strategy for
raising morale.

Employee engagement, organizational performance, and leadership effectiveness are

all significantly influenced by emotional intelligence. Elon Musk has led X Corp. with
great drive and decisiveness, but there hasn't been much empathy, communication, or
thought for work-life balance. These shortcomings have exacerbated burnout, reduced
employee engagement, and harmed the company's brand. In order to improve
employee engagement and organizational success, X Corp. has to develop a more
emotionally intelligent leadership style that prioritizes empathy, wellbeing, transparent
communication, and collaborative decision-making.

Task-4: Management competencies development

The capacity of businesses to thrive in an environment that is changing quickly in the

last several years is a serious concern. Over 50% of newly established enterprises are
believed to collapse during the first year of operation. According to data from the US
Bureau of Labor Statistics, roughly 20% of newly established businesses fail during the
first two years of operation, 45% do so within the first five, and 65% do so within the first
ten. The survival rate of new firms is only 25% (Kabii, L.K.K. and Kinyua, G., 2023) for
at least 15 years. Organizations adopt business continuity through the development of
their managerial competencies in order to guarantee the continuity of business
operations and become resilient (Denyer, 2017; Viljoen, 2015). An organization's
strategic and short-term roles are fundamentally influenced by managerial
competencies (Birknerová & Uher, 2022). Talents that enhance a manager's
exceptional performance are known as managerial competencies, and they are
significant since they are future-focused.

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This section assesses the management competencies at X Corp using relevant
frameworks and suggest recommendations for developing and nurturing the skills
among the managers at X Corp both present and future to improve the success. The
competencies identified for the above analysis are Managing Stakeholder relationships
and Managing conflict and negotiation.

Managing Stakeholder Relationships

According to Hillebrand et al. (2015), stakeholders are any group or individual that has
the potential to influence or be impacted by the accomplishment of [an] organization's
goals. These individuals and groups include directors, managers, employees, suppliers,
owners, competitors, strategic partners, collaborators, policymakers, community
organizations, and the media. Modern managers and leaders increasingly need an in-
depth knowledge of the urge for a more collaborative and inclusive approach to
negotiating the external environment. Inclusivity can only be achieved by adopting
inclusive management and leadership strategies such as stakeholder engagement
which is why it is an increasingly vital feature of their work in the current business
climate.

A revision of stakeholder engagement is necessary. Nowadays, most businesses agree

that they should interact with their stakeholders. However, most businesses still only
use it as a limited exercise in reputational risk (Business for Social Responsibility,
2023).

Stake holder theory (1984) - Edward Freeman

The Stakeholder Theory of organizational management and corporate ethics, was

described in depth by R. Edward Freeman in 1984. According to him, managing
stakeholders' interests, needs, and points of view should be the company's primary
goal. The organization should be viewed as a collection of stakeholders. It is believed
that a company's managers are responsible for this stakeholder management. The
management team should act as the stockholders' representative to ensure the
company's survival and protect each group's long-term stakes, while also managing the

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corporation for the benefit of its stakeholders to protect their rights and participation in
decision-making.

Fig 4: Freeman Stake Holder Theory (Source: cambridge.org)

Applying the stake holder theory to the X Corp, we can identify the Users of X,
employees of X Corp, the shareholders, the communities that are affected by the
organization.

Musk’s acquisition delivered substantial returns for Twitter stockholders. The agreement
that Musk offered throughout the purchase process has resulted in financial rewards for
shareholders, top executives who have held shares, and other parties.

However, the bulk of the workers was let go as soon as the takeover happened, thus
the employees had to deal with the burnout. As a result of his leadership, the company's
workforce has shrunk by about 80% through a combination of resignations and layoffs.
Additionally, Musk has drastically reduced the company's advantages and privileges,
like as the availability of home internet, training and growth opportunities, and daycare
plans (Banerjee, 2024).

On the user front, Musk has in an interview to New York times, said that he is
committed to free speech and wants to make the twitter a place where every opinion

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has to be counted. This is reflected by the actions of the management, where the
company re-instated the banned accounts from twitter because of some of the
regulations and policies of governments in the name of hate speech and violence. As
per Dyson's (2022) media sources, there was a notable surge in hate speech on Twitter
after the sale was closed, with racist, sexist, homophobic, and anti-Semitic messages
becoming more prevalent. Corporate executives' language towards stakeholders, as
shown in mission and purpose statements, is primarily symbolic and does not align with
their real actions and choices (Bebchuk and Tallarita, 2020).

In order to effectively manage stakeholder relationships, a more balanced approach is

necessary to ensure that these groups' demands and concerns are sufficiently handled.
X Corp. needs to build more solid partnerships and show that it is committed to striking
a balance between protecting brand reputation and allowing free speech in order to win
back the trust of advertisers. Stakeholder mapping can help X Corp. prioritize
relationships and respond to stakeholder issues while staying true to its goal.
Stakeholder involvement and relationship marketing should be taught to managers.
With the help of this training, managers will be able to serve as X Corp.'s point of
contact with stakeholders, forging alliances built on mutual respect and objectives.

Policies that address worker concerns regarding workload, work-life balance, and job
security must be developed by X Corp. Theories of employee engagement, including
Kahn's Psychological Conditions of Engagement (1990), emphasize the value of
availability, meaningfulness, and psychological safety in raising employee engagement.
Rebuilding employee trust necessitates a well-rounded strategy that harmonizes these
groups' interests with the goals of the business. X Corp. may maintain an engaged
workforce and improve financial stability by emphasizing relationship management.

Managing Conflict and Negotiation

Relationships between two or more social entities (people, groups, organizations, and
nations) may become incompatible or inconsistent when they interact with one another
to achieve their goals. The impression of disparities in people's interests is conflict
(Thompson, 1998). As a normal aspect of organizational life, conflict may occasionally

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be required to reach high performance levels. However, it can be exhausting and time-
consuming, especially if a manager or leader is not competent enough to handle it
(Whetten and Cameron, 2023).

X Corp. is faced with a difficult choice between upholding its fundamental principle of
free expression and satisfying the demands of advertisers for more control in order to
protect their brands. Revenue has decreased as a result of this dispute as advertisers
withdraw for fear of their brands being linked to offensive or divisive material.
Negotiations with advertisers are made more difficult by Musk's unwavering stance on
free speech, as they demand more content controls.

As a result of his leadership, the company's workforce has shrunk by about 80%
through a combination of resignations and layoffs. Along with drastically reducing these
benefits, Musk has also slashed funding for the company's training and development
initiatives, daycare centers, and home internet services. Many of its remaining
employees feel like they are disposable and irrelevant as a result of this cost-cutting
(Shah, 2023).

According to reports, X Corp's advertising revenue dropped by 40% in the previous

year. The reason for the same can be , because commercial clients became uneasy
with the platform's shift towards deregulated content. In keeping with Musk's alleged
"free speech" stance, X Corp reinstated previously banned accounts while ignoring a
plethora of obscene, pornographic, or potentially abusive posts. Brands are also worried
about it; General Mills, Audi, Pfizer, and Volkswagen are among the corporations that
are reconsidering their spending (raconteur.net,2023).

It is suggested that transparency will be essential, with marketers receiving

comprehensive information and insights to better understand campaign results. In order
to guarantee that advertisements display alongside appropriate content and comfort
advertisers who may be concerned, brand safety procedures such as increased content
moderation and enhanced filtering should be strengthened. Provide a system of tiered
content moderation that enables varying degrees of content management according on
advertiser requests. By giving advertisers more control over how their ads are

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presented, X Corp. is able to uphold its commitment to free speech while granting
advertisers the freedom to select the degree of content curation that best suits their
brand image.

It is imperative that X Corp's management communicate to its staff that they

acknowledge this and are concerned about their emotional and physical well-being in
addition to their value to the organization. In any successful modern workforce, rewards
and perks are just as crucial as compensation. Training on conflict management should
emphasize cooperative problem-solving and creating a transparent workplace where
staff members feel comfortable sharing their worries. This will lessen tensions inside the
company and assist managers in mediating internal disputes more skillfully.

Conclusion

In order to prosper in the fiercely competitive technological sector, X Corp. needs to

take a more flexible, creative, and employee-centered strategy. X Corp. can position
itself for long-term success and cultivate an innovative and adaptable culture that will
propel its growth in the technology market by putting the advice in this study into
practice.

There is a lack of complete alignment between the mission, values, and management
practices of X Corp., especially when it comes to leadership, innovation, collaboration,
and sustainability. The business must modify its management procedures to better align
with its fundamental values and technical innovation purpose if it hopes to achieve long-
term success. X Corp. may better connect its practices with its strategic aims and
values by decentralizing leadership, increasing its focus on disruptive innovation,
promoting collaboration, and integrating sustainability into its operations.

X Corp. has to enhance its decision-making procedures by implementing data-driven

technologies and decentralizing authority in order to fully leverage these competencies.
With these adjustments, X Corp. will be able to stay competitive, inventive, and flexible
in the rapidly changing world of technology.

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To succeed in the technology sector, X Corp. needs to enhance its management
competencies in dispute resolution and stakeholder relationship management. Ensuring
long-term success requires managing relationships with employees and advertisers as
well as resolving tensions between brand safety and freedom of speech. Through the
implementation of established management frameworks and the provision of manager
training, X Corp. can enhance stakeholder trust, cultivate improved involvement, and
accomplish sustainable growth within a competitive landscape.

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