Principle-Centred Leadership - Essay Example

Introduction Business management and operation is always geared at A company that is wanting to attain competitive advantage against rival organizations in the market using their core competence and skills. This paper will address concerns about the importance of leadership and human resources; about the significance about producing quality goods and using good branding; and, about financial management in a new business start-up for a cost-effective business operation. A company cannot operate without competent leadership that could provide proper direction of the company using clear vision, mission, goals, and strategies. The human resource or their staffs, regardless if they are few, is the backbone of its business relations and operations to provide customer services or to relate with the market where the business establishment is present. Good leadership & staff Good leader or good staff? This researcher asserts that organizational management require both: good leaders and staff. Both are indispensable in organizational management and development. Good business leadership optimize human resources too for good decision-makings to professionally engage their commitments to attain business objectives and goals. Both the management and the staff are indispensable in contributing to the enrichment of the organization and for its operational management to reach targeted outcome. Its structure will often provide or contribute potential support to competitive advantage in business management. Both are stakeholders for organizational development and resource generation. Their cognitive abilities and skills are wealth that can be optimized in systematizing organizational management (Covey, 1992, p. 17) Their indispensable mutual assistance in decision-making will also support the business attain a healthy operational condition (Covey, 1992, p. 17) Good leadership is a principle centered-leadership inspired on personal-trustworthiness, interpersonal relational trust, empowerment-sensitive management, and organizational accountability (Covey, 1992). Covey (1992) contended that good business leaders consider all the natural laws, principles and operational frameworks that put virtues and moral responsibility significant in a person’s life, in relations, in contract management and within the core of the organization (Covey, 1992, p. 17). Covey (1992) asserted that effective and efficient leaders adopt on inviolable principles of practicable human nature that are further nurtured by good norms and culture in a society for better social cohesion. Covey (1992) opined that principles are built and nurtured by society and are imbibed in human condition, as well as, in consciousness. Good leaders prefer to adapt on good value system as guidance and direction for better decision-makings, in planning, in enforcing plans, in resolving conflicts, in managing changes, in valuating performances, and in exercising power in organizational development (Covey, 1992, p. 21). This is in correlation to the fact that an organization is not just a simple structure. Its leader must be a representation of great purpose and targeted outcomes rooted from clear planning and execution of coordinated or collaborated tasks to achieve desired outcomes. Covey’s integrated ethical code on business leadership put principles above interests to holistically nurture organizational development toward for a useful institution of the society. Good transformational leaders are therefore essential as managers that could fully assist in the development of a mutually satisfactory business operation and practice that inspire socially acceptable moral imperatives and standards (Covey, 1992, p. 21). Meager capital? Without enough financial capital, a business cannot commence to operate and manage its supply chain. Effective business leadership knows financial management, although meagre, as essential for organizational management because it permeates stakeholders to make accurate decisions pertaining to the use and allocation of resources for strategic business implementation (Mitchell, Smith, Gustafsson, Mitchell, 2006, p. 5-12). The maximization of the intellectual capital too from human resources is significant for business enterprise amid strong market competition. They too deserved to be compensated for the services they rendered in a company in accordance to the labour policy of the country (Mitchell, et al, 2006, p. 5-12). This is an intangible resource in advancing business management and operation to attain competitive leverage in the market. Their knowledge, as source, of organizational strength, is an intellectual capital in the production of wealth or in generating profit (Mitchell, et al, 2006, p. 5-12). Business leaders must be able to put direction in business management and thus, needs to be critical analysts on economic trends specially those factors associated to finance and its use. This is because the management must endeavour to become cost-effective and cost-efficient in its performance management, production, distribution, and marketing in the exchange of investment and human resource development (Carter & Jones-Evans, 2006, p. 1-10). It is also essential in understanding the political and market behaviours. These days, business leaders are dependent on information capital as technologies have elaborately emphasized the significance of information, knowledge and experiences for business operations (Carter et al., 2006, p. 1-10; Deakin & Freel, 2003, p. 165). The market has also transitioned itself from simple dependency on science and technology to an economic system that considered the production of knowledge as primary factor for business management (Carter et al., 2006, p. 1-10). Intellectual capital is considered too as the most valuable asset and hence, business leaders would opt for human resources that have strong cognitive skills and core competence for market research and finance analysis (Carter et al., 2006, p. 1-10). Business is a value-driven undertakings and it provide evidences for third party to analyse in transparency the inflows and cash flows of the organization in a general picture using accounted financial statements and its anent financial ratios to unravel if the organization is in good financial condition (McHugh et.al., 2012, p. 10; Deakin & Freel, 2003, p. 165).. With this, funding partners can benchmark their level of trust and confidence on the financial performance of the organization using its resources (McHugh et.al., 2012). They can also draw some forecasts using the financial records because accounting is about records that are classified, summarized and interpreted financial events and transactions of an organization which comprised financial information needed by donors and funding institutions (McHugh et.al., 2012). Conclusion Good leadership in imperative in business management. For some, they are imbued with qualities that are fundamentally based on values. Their characters are those imbued with such self-awareness that exhibits such intimate knowledge of their inner emotional intelligence. They are sensitive on their strength, opportunities and weaknesses (Pankaew, 2013, p. 1). They can withstand any threats and work with the flow. They know their very selves, their interests, and their capabilities, including their limitations that permeate them with such maximum potential (Pankaew, 2013, p. 1) Good leaders have goals and are self-directed in the use of effective abilities and their power. They are intelligent about the many approaches on how to get things done and they generate energy in the completion of business goals to attain desired business outcome (Pankaew, 2013, p. 1). They have options and they strategize their actions. Good leaders too are visionary and are cognizant of the fact that some goals and outcomes can only be achieved by teamwork and thus, they are cognizant that good leadership can only be applied when there are human resources whom one could group to attain certain goals (Pankaew, 2013, p. 1) Good leaders are peace-loving and are interested in having a peaceful working environment where everyone is contributing their abilities at their best (Pankaew, 2013, p. 1). They have the ability to motivate followers on what to do and coach them in attaining what is best for their selves and for the company (Pankaew, 2013, p. 1). They cultivate others for them to also generate such social awareness by enforcing such emphatic understanding in the vital importance of social networks and its key influences in strategic business management or leadership (Pankaew, 2013, p. 1). Good leaders are inspired too of cost-efficient and cost-efficient leadership. They are knowledgeable on variant model of business and financial management. They are , it’s therefor crucial for entrepreneurs to undertake education and learn the fundamentals of information technology as integral component of business management and to leverage within a rigid business models in the market. Successful entrepreneurs maximize the inseparability of innovation and creativity in running an enterprise. They are likewise considered as great entrepreneurs as they adopt with innovative business practices to offer distinct business leadership in the delivery of services by optimizing information technology to lessen the cost in developing their business presence in the market. They are knowledgeable on the fact that the economy nowadays are driven knowledge-based market and thus, they too responsibly research on goods and products that are needed by consumers. They also use information technology to vigorously advertise goods, products and services online to make economic flow more dynamic, forceful and for entrepreneurial endeavours. Good leaders choose to have good followers, ergo good staff. They rely on their competence to secure its business operations and costumer management (Yang & Guy, 2004, p. 60). They believe that having good staff is essential too, for better financial management and in sustaining the business operation or in expansion. As such, they are able to nurture such financial stability to maintain business efficiency that could position its business interests for growth. Having good staff also improve its business financial situation (Australian Government Initiative, 2013, p. 1). This is essential to attain better financial management and cash flow to efficiently meet the demands of its creditors and define the margin of profits desired from operation (Australian Government Initiative, 2013, p. 1). They recognize that there are many ways of improving their financial situation including the use of professional advice on financial systems or making use of it for staff’s financial training (Australian Government Initiative, 2013, p. 1). As good financial managers, good leaders can obtain additional finance that is significant for business growth (Australian Government Initiative, 2013, p. 1). Regular updates on business plan that support your new goals and objectives to ascertain that the organization is well-prepared in generating more finances, for savings, for relating with potential investors and in accessing opportunities for entrepreneurial government grants (Australian Government Initiative, 2013, p. 1; Wernerfelt, 1984, p. 171). No matter how meagre is the start-up capital of the business, when the leader and its staff the essential of financial management, they will be able to optimize these using the following strategies (WHO, 2013, p 1): a. Financial planning that covers budgeting and targeting expenditures within a certain period, subject for monitoring and evaluation (WHO, 2013, p 1). Through this they are able to evaluate the current resource position, correlate this to service, and plan to determine proper budget (WHO, 2013, p 1). This will drawing up a budget which on how resource will be allocated for entrepreneurial development to attain goals (WHO, 2013, p 1). By setting its target for revenue and match this to expenditures, the company sets too for its financial efficiency and equity (WHO, 2013, p 1). b. Resource allocation - this refers to the budget that will be allocated by the organization to the services, administration and operation (WHO, 2013, p 1). c. Financial management for its operational, monitoring and safeguarding causes (WHO, 2013, p 1). This system ensures that funds are spent and revenues are collected according to their financial blueprint and in accordance to the financial standards on budgeting and accounting (WHO, 2013, p 1). It will also ensure that the organization has excellent internal control measures and regulations are applied to stop financial wastes (WHO, 2013, p 1). d. Evaluation – this refers to the system of review and reporting that will be adopted by the organization to ensure that expenditures for services are properly analysed viz-a-viz equity, efficiency and sustainability (WHO, 2013, p 1). Through this, the organization will be able to craft its strategic plan for financial management (WHO, 2013, p 1). References Australian Government Initiative (2013). Financial management practice, Business.gov.au, p. 1. Retrieved: http://www.business.gov.au/Howtoguides/Growingabusiness/Improvinginternalprocesses/Pages/Financialmanagementpractices.aspx Carter, S. & Jones-Evans, D. (2006). Enterprise and Small Business. Principles, Practice and Policy, 2nd Ed.FT/Prentice Hall, pp. 1-10; 129-151; & pp. 152-175. Covey, Stephen R., (1992). Principle-centered Leadership. Rockefeller center, Foreside, New York, New York. Deakin ,D & Freel, M. (2003). Entrepreneurship and Small Firms 3rd. McGrawHill Educationpp, Maidenhead, Barkshire, UK, pp. 1-35; 165-209. McHugh, J. M., Nickels, W., & McHugh, S., (2012). Understanding Business. 10th Edition. McGraw-Hill/Irwin, New York, US. pp. 1-800. Mitchell, R.J., Smith, J.B., Gustafsson, V., Mitchell, R.K. (2006). Thinking About Thinking About Thinking: Exploring How Entrepreneurial Metacognition Affects Entrepreneurial Expertise. Babson Research Conference, Babson College, Wellesley, MA. pp. 5-12. Pankaew, D. (2013). What is Leadership and What Makes a Good Leader? Search Inside Yourself Leadership Institute, Siyli.org., p. 1. Retrieved: http://www.siyli.org/what-is-leadership-what-makes-good-leader/ WHO (2013). Financial Management: An Overview and Field Guide for District Management Teams, Who.int., p. 1, Retrieved: http://www.who.int/management/Finances4FinancialManagement.pdf Wernerfelt, B. (1984). A Resource-based View of the Firm, Strategic Management Journal, Vol.5, p.172, pp.171-180. Yang , S. and Guy, M.E., (2004). Self-Managed Work Teams: Who Uses Them? What Makes Them Successful. Public Performance & Management Review, 27(3), pp. 60-79. Read More