Nathan and Frank

ESSAY

John Donne- a famous English poet has state in his work that "no man is an island", which means that nobody can live isolating with the rests of the world. It is even right in the business environment where there exists many relationships such as with suppliers, customers, partners....It generates an important thing of how to managing effectively to leaders. To clarify, this essay will give two particular situations of the relationships between Nathan and Frank, and Nathan and Paulo which can be explained by many theories, namely Expectancy Theory, Contract Formation, Transmission Model, Organisational Culture, Power and Leadership, and Employment Relations.

Firstly, the essay begins with the story between Nathan, the new owner of Aroha Resort, and Frank- the liquor supplier. It should be known that Aroha has a long-standing business relationship with Frank, which is the basis they bargain about further discount. The Expectancy Theory shows that an individual tends to pursue expected outcomes in a certain way (Robbins, Bergman, Stagg, & Coulter, 2009, p.615). Applying in this case, both Nathan and Frank have instrumentality or performance-reward linkage. They put high efforts into their performance althought their desired goals are very different. There is no denying that Nathan want to get a reward of financial success while Frank care to maintain his sustained business relationship with Aroha. The outcomes they wish are very important at this time so they deliberate carefully and try to attain them at any price. However, there rises a question of whether they reach what they want or not, Contract Formation will go on.

In the matter of law, contract formation includes enough three essential elements, which are intention to creat legal relations, offer and acceptance, consideration (Hubbard, Thomas, & Varnham, 2010, p.239). In the other words, a contract or agreement is considered valid when its process goes through three stages. The first one is parties have to intend to be legally bound (Hubbard et al., 2010, p.250). Next, one party gives an offer to express their willingness to contract made with the intention (Hubbard et al., 2010, p.250). Finally, another party receives the offer and response their acceptance by outward sign (Hubbard et al., 2010, p.260). Based on the notion of law, Nathan faxes to Frank to enquire about beverages after noticing Frank's invitation to treat (catalogues). The first real offer is given by Frank when he replies via email that beverages are available and he feels happy to give 5% discount if Nathan emails back to him (Centre For Business Interdisciplinary Studies, 2010, p.10). Subsequently, Nathan gives the counter-offer to ask further 5% discount on the top of initial 5% discount and Frank then accepts. Hence, there exists a valid contract of supplying drinkings between Nathan and Frank.

Unfortunately, the agreement above comes to fail because something wrong occurs in communicating between two parties. Before applying The Transmission Model of Communication to clarify this contingency, we should know about what communication is. It is the way the sender encodes a message through a medium and is finally decoded by the receiver (Communicating as Professionals, 2008, p.5). According to The Transmission Model, both choosing the medium of communication and constructing the messages are considered as the best important things, and feedback, besides, is the most effective tool to assess the success of communicating (Communicating as Professionals, 2008, p.11). In addition to, it is advisable that the number of relay points should be minimised to ensure accuracy of conveying messages (Communicating as Professionals, 2008, p.16). Negotiation of Nathan and Frank runs well when they choose fax and email as fast and convenient mediums to exchange the information. Then, the unexpected situation arises when Nathan phones( the third medium) and places an order with another person-Ray, which leads to breaching the contract made before. Clearly, messages are easilier distorted if senders as well as receivers use more mediums and relay points than they are needed.

Another issue given in this essay is conflict relationship between Nathan and Paulo- the chef working in Nathan's restaurant. As can be seen, Nathan and Paulo work in the same resort but they share a weak organisational cultures which refer the system of shared values, principles, traditions