Jarrow Ltd Leadership Style Analysis

Relationship management

Relationship management is where the constant relationship maintained within the employee and employer, this absorbs employee and employer working together to share responsibility; sharing responsibility called co-determination. The connection between employee and employer cover up fairly large topics, among them the most appropriate discussion is lack of information sharing, due to Jarrow ltd revolves mainly around employer not working together with employee.
In accordance with Jarrow Ltd,
Mr.Javins owner of Jarrrow Ltd plus owing 30% ownership, which made him as the chief executive of Jarrow Ltd. Using the post he has, he completely ruled against and bullied most of the main decisions of the company, which are hardly

Hence, there are some theories created by looking at strong leaders who were there in before 20th centuries. Theories such as;
Trait theory means people have certain quality or behavior that makes them a better leader.
Behavioral theory shows how leaders behave, sub parts of behavioral are;
Autocratic; where only the leader makes the decision without discussing with others.
Democratic; break the walls between the employee and employer and make any decisions by discussing with all.
Laissez faire; leader will not involve when making decisions, workers make decisions.
Contingency theory is where leadership style changes according to the situation.

According to the Mr.Javins,
He’s at present following autocratic leadership it may advisable when making quick decisions, where less weight given to the subordinates. But it’s not a suitable method to use in a limited liability company which planned to moves to IPO. Since the IPO has more power towards employees than senior

ARR AND NPV
Accounting rate of return (ARR) is the average profit you expected from an investment;
(Average annual profit/ total value of investment)= ARR.
Net present value (NPV) determines the value of a project whether to accept or to reject it.

According to the scenario; it stated Mr.Javins sometimes used ARR method rather than NPV, since he preferred. This cause conflict with finance team because,

ARR is uses profits rather than cash flows, profits affected by non cash items. Therefore, ARR over estimate the profit (higher profit) and ARR don’t count time value of money plus it doesn’t adjust to risk too.
On the other hand NPV is better because, it take count the time value of money and it consider cash flow plus it adjusted to risk also.

However,
NPV difficult to calculate and difficult to find accurate discount rate of return which take time leads to high cost.
But, Finance staffs have better knowledge on finance than Mr.Javins as they specialized in finance. So Mr.Javins should consult with them when making any financial decisions to get accurate