Case report Essay Example | Topics and Well Written Essays - 750 words

Case report - Essay Example As a leader and a manager, James Riady has not been able to completely professionalize the family business. This is a common challenge that faces family owned businesses. The effects of lack of professionalism can be very extreme if not taken care of in time. Smith & Cockburn (2014) argues that the problem of professionalism can only be solved from the top management since it is the source of all power in a business. Whenever the leadership of a business fails to create room for professionalism, it simply means that it is creating room for failure. The importance of professionalism is that it creates a more stable and reliable system of operation and structures that facilitate the incorporation of different expertise. Whenever a business is operated without professionalism, it becomes hard for accountability to be traced back to the leadership and management involved. This is because lack of professionalism creates loop holes for people to make mistakes that might be very harmful to the business. James Riady for a long time has been working based in transformational other than transactional basis. The decisions made by Lippo group were more based on instincts other than detailed analysis. This has therefore given the leader freedom to ma ke major decisions without much consultation among other members of the business. Professionalism if not taken care of, can easily lead to compromise of the ethical codes and standards. When the ethical issues start to rise in a business, the leadership of the business is often put on the spotlight to shun light on the issues. This becomes worse when it is one of the leaders involved in these issues. Professionalism gives a clear line and guideline on how to deal with ethical issues. According to Brooks et al. (2010), firms encourage their employees and the management to operate with the highest level of professionalism by ensuring that they do not violate the ethical issues and codes of