Managment And Leadership Development - Essay Example

MANAGEMENT AND LEADERSHIP DEVELOPMENT Introduction 3 Part One 3 The purpose of management 3 Management Development 4 Leadership and Management Development 5 Leadership 6 Distinction between Management and Leadership 8 References (Part One) 10 (PART TWO) 12 Operationalisation of Management and Leadership Development into Practice 12 Case Study of Toyota 12 Case study of Nokia 14 Case study of Rolls Royce 15 Conclusion 17 References (Part Two) 18 Introduction The past two decades have witnessed an unprecedented change in the management and leadership development concepts. In this globalized world with ever accelerating pace of change only those organizations can achieve long term sustainable growth who can adapt to these changes quickly and efficiently. This pace of change creates a lot of challenges and opportunities for the organizations. Hence organizations today need the vision of leadership and adaptability of the management to capture the opportunities and minimize threats for sustained growth. Management development and leadership is one of the most complex and least understood areas of management. World has come a long way from the bureaucratic management style to the strategic management and leadership. This paper aims at studying the evolution process as well as various theories of leadership and management development. What is the need of it? What are the driving forces behind this concept development? Is there any difference between management development and leadership? A critical literature review will help answering all these questions and developing a sound understanding of leadership and management development. Case studies of three organizations will also be discussed to study the practical application or operationalism of these theories in practice. Part One The purpose of management Management is an organized human activity, a social exercise that involves organizing a number of individuals to achieve a common purpose. Managers are mainly responsible with the ways and means of getting a job done. Hence it can be concluded that management has the responsibility of planning and regulating the organization by designing and implementing proper procedures. Management is also responsible for ensuring the cooperation of employees and team work by guiding and supervising their activities and providing appropriate motivation. Some of the most significant changes in management in the last twenty years have been brought due to world recession. Global recession has increased competition and the importance of marketing. This increased competition has led to the adoption of new management techniques. Globalization and resultant increased competition has put pressure on the management to anticipate change and prepare organizational resources to meet those needs. This philosophy and concept of strategic management permeates and colors every aspect of management activity (Calvert et al, 1995). Management Development Why managers need development and what does it require and how its effectiveness can be increased? Management development deals with the development of both employees and the organization, because both of them are interconnected. In this highly competitive globalized world where organization need to develop and implement strategic goals for sustainable long term growth the need for developing managers has increased manifolds. Strategic goals and objectives require organizations to become learning organizations and foster the culture of learning, to be able to deal with challenges and opportunities present in the environment. Management development is an aspect of this learning culture. Motives for developing a manager can vary in context, but there are general reasons for management development (MD) as well. MD is defined as the identification and release of individual potential so that the growth needs of a manger can be matched with the need of the organization. The two goals career development of an individual and the organizational development are although analytically distinct but they should be molded in such a way that it becomes consistent with corporate needs. Strategic objectives of organization require MD but for its effectiveness mangers also must value it and perceive it as beneficial for them. MD is a planned and deliberate learning process to improve managerial effectiveness (Winterton, 1999). It is popular assumption that MD improves performance and helps in achieving and maintaining competitive advantage. However the critiques of this theory argue that the empirical evidence to support this view is not enough. The methodological tools are relatively underdeveloped with which this hypothesis cannot be tested. According to Mumford the effectiveness of MD can only be judged if effective management behavior is clearly identified and learning process of the individual and the group is also recognized. He argues that MD should not be confused with what manger can achieve and what knowledge he possesses but it should be based on the facts of what he has actually secured (Mumford, 1994). Leadership and Management Development Leadership has always been a popular term and mostly associated with organizations in the context of globalization and rapid change. Recently there has been so much emphasis on leadership that it is often believed that it is done at the expense of management. Is there any difference between leadership and management? The common perception is that management is associated with aspects of organization that are routine activities and steady situation whereas leadership is associated with aspects of organization that are complex, ambiguous and unexpected and hence unprogrammed. Management decisions are based on calculations and sound judgment whereas leadership decisions cannot be so calculated and there are no correct answers for leadership. Simon’s studies on decision making by management and Bennis’s research on leadership further strengthens this point of view. In short, leadership is viewed as an energizing, creative, visionary and transformational activity whereas management is transactional and related to daily routine. The critics of this theory claim that there is no such clear demarcation between management and leadership. Management does not have such a narrow scope as projected; it does covey strategy and creative endeavor. Administration is related to routine and efficiency. They believe that leadership is actually a creative function of the management development. In order to improve economic performance organizations today include management and leadership development in their strategy (Gold et al. 2010). Leadership It has been established that management development is done through training and development and creating a learning culture. Can leaders be developed? In recent times there has been debate over whether leaders are born or these skills can be acquired. Social scientist have attempted to identify the traits, behavior, sources of power or aspects of a situation that makes a leader standout and influence followers to accomplish group objectives. Effectiveness of a leader depends a lot on his following i.e. how the followers follow (Grint, 2010). Hence the two views about leadership are that leaders are born and leadership cannot be taught whilst the counter argument is that leaders are a lot more made than born. Leadership is very vital and its importance is widely accepted. In order to understand fully different theories of leadership we first need to have a clear picture of what leadership is all about. It may sound simple but in fact leadership is a very complex and complicated social process that depends not only on the ways of thinking, vision, creativity, knowledge, skills characteristics and values of the leader but also the followers (Adair, 1995).It not only provides the vision but also the motivation for organizational success. Good leadership is emotional; it compels drives and motivates you to achieve something. It is a continuous process of building and maintaining the relationship between the follower and the leader. In its spirit it is multidimensional which encompasses different skills, vision, process, map, issues, organization levels, cultures, policies, practices and issues. A good leader has to pass the test of time banking on the strengths and minimizing weaknesses while materializing the opportunities and avoiding the threats in the environment without overreliance on any single person or process. Savvy and successful leaders build their own framework based on their skills and capabilities, reflecting self learning and experience and a healthy respect for challenges, opportunities and risks. (Gallos, 2008) Opponents of this theory believe that leadership qualities cannot be taught. A book or a training course cannot teach someone to become a leader just as reading a book on sports cannot make one an athlete. The critics of this theory as suggested by (Allio, 2005) believe that the leadership training programs are not effective at all. He feels that leadership cannot be taught it is something which is natural and innate in a person. He feels that leadership programs only test an individual and strengthen their self esteem but will not instill any skill in them. He is a strong believer of the futility of the training programs and states that there is not much evidence available to endorse the importance or effectiveness of any training program or course in producing or developing leaders. I agree with this point of view but only to the extent that a book or a training course cannot make one a leader but it can help you in identifying the hidden abilities and skill in you, which through some effort and nourishment can be polished. The opponents of management and leadership development also question the linking of managerial capability with productivity. How the effectiveness of leadership and management is benchmarked or evaluated? It is argued that cultivating leadership and management development is a time consuming and expensive. The opportunity cost is very high and usually it is such a lengthy process that time lags are difficult to determine. Hence management development and leadership is not always feasible (Mabey et al. 2008). Importance of leaders and their need always exist but in today’s fast changing and highly competitive world their importance and need has increased manifold. Globalization and the resultant constant, accelerating and unpredictable change demands better leadership. Despite this glaring need most of the organizations instead of encouraging people to lead and learn from their mistakes often ignore it. Very few people possess this talent of leadership, however with careful selection of employees, nurturing and encouragement many people can be groomed to play leadership roles in key positions. Successful and proactive organizations don’t wait for leaders to come but they actively seek people with leadership potential and groom them through experiences and trainings designed to develop that potential. The organizations who intend to grow leaders should give potential leaders the chance to lead. (Adair, 2006) Opponents of this theory believe that leadership cannot be taught hence the concept of developing leadership is not possible. They believe that leaders are born and cannot be made. The turbulent economies of the today’s highly competitive world have not resulted in rapid change only but also the growing uncertainty. This not only enhances the need of leadership but also make teaching leadership more difficult. These turbulent times involve more risk and more opportunities. Leading an organization through such turbulent times is neither simple nor straight forward (Frohman et al, 2008). Distinction between Management and Leadership Leadership and management have many things in common e.g. both involves working with people and influencing them for effective goal management. The basic difference in the situation and the function of the two has already been discussed. The overriding or basic function of management is to provide consistency and order whereas the basic function of leadership is to bring change and movement. The three main functions of management are planning and budgeting, Organizing and Staffing and controlling and influencing; whereas the function of leadership is establishing direction, aligning people and motivation and inspiration. The role of managers is to establish agendas, set time tables and allocate resources whereas the role of leader is to create a vision, clarify a bigger picture and set strategies. The role of managers is to provide structure, job placements and establishing rules and procedures whereas the role of leaders is to communicate goals, seek commitments and building teams and coalition. The role of manager is to develop incentives, generate creative solutions and take corrective actions whereas the role of a leader is to inspire and energize people, empower subordinates and satisfy unmet needs. In short management is mainly about provision, allocation and utilization of resources. Managers cannot be effective and deliver results without effective leadership. Hence although there is distinction between managers and leaders but it is not the case of choosing an either situation. All managers need to be effective leaders to be successful but all leaders do not need to be managers (Armstrong, 2008). It is argued that although leadership and management are different in scope but both of them are necessary for organizational success. If an organization has strong management without leadership it will result in bureaucratic organizational structure and the outcome can be stifling. If an organization has strong leadership without management it can result in meaningless or misdirected change. Successful organizations need to foster both leadership and management (Northhouse, 2010). Organizations that do not invest in management development and leadership activities cannot achieve long term sustainable growth. References (Part One) Adair, J. (1995) Effective Leadership,London: Pan Books Adair, J. 2006, How to Grow Leaders: The Seven Key Principles of Effective Development, London, Kogan Page Armstrong, M. (2008) How to be an even better manager, London: Kogan Page Allio, Robert J. (2005) The Seven Faces of Leadership, New York: Tata-McGraw Hill Calvert, R.E., Coles, D.C.H., Bailey, G.J. (1995) Introduction to Building management, Oxford: Butterworth Heinemann. Frohman, D., Howard, R. (2008) Leadership the hard way: why leadership can’t be taught, San Francisco; Jossey-Bass Gallos, J. (2008) Business leadership, San Francisco: Jossey-Bass Gold, J., Thorpe, R., Mumford, A. (2010), Handbook of leadership and mangement development, England: Gower Publishing Company Grint, K. (2010) Leadership: A Very Short Introduction, New York: Oxford University Press Mumford, A. (1994) Gower Handbook of Management Development, England: Gower Publications Mabey, C., Finch-Lees, T. (2008) Management and Leadership Development, London: Sage Publications Northhouse, P.G. (2010) Leadership: Theory and Practice, London: Sage Publications Winterton R., Winterton, A. (1999) Developing managerial competence, New York: Routledge (PART TWO) Operationalisation of Management and Leadership Development into Practice After studying the conceptual theories about leadership and management development some case studies of different organizations will be discussed to develop an understanding how these theories are actually applied in practice in various organizations. How organizations make use of the various management and leadership programs for their success and growth. Recent study of organizations has proved that if we tie leadership and management development with business strategy it results in sustainable long term growth of the organization. This relationship has resulted in the recent trend of integrating leadership and management development activities and initiatives with the overall strategic objectives of the business. (Giber, 2009) Case Study of Toyota Toyota believes in the philosophy that success starts with leadership. This process mainly starts at the top and mainly carried out by the people in the middle management who supports the value adding employees. But most middle level managers actually assume these positions as a ladder to reach the top. They do not want to be stuck for long at this position. This approach makes things challenging for companies like Toyota who have a long development period for leaders who become experts in the Toyota Production System (TPS). Toyota production system (TPS) is also defined as the lean production system which emphasizes on cost cutting. It utilizes half the human capital, investment in machinery, manufacturing space and engineering hours as compared to mass production system. Toyota production system brought the current Japan economic preeminence. This production system developed by Toyota was followed by many other industries and organizations which brought the economic profits for Japan. Just in time (JIT) production was the rationale behind Toyota production system. The major goal of TPS was cost cutting with sub goals like quality control, quality assurance and respect for humanity in terms of utilizing human resource to achieve cost objective. (Alavudeen & Venkateshwaran, 2008) Toyota has a very different approach of leadership instead of restricting front line leaders to mere supervisory role. They are viewed as a crucial component of the Toyota way. They are expected not only to supervise the team but also mentor every team member in the group. Toyota’s organizational structure is flat without many layers of management. Leaders play pivotal role in success of the company. Front line team leaders at Toyota has three basic responsibilities namely, Support for operations, promotion of the system and leading change. They play an important role in continuous development and implementation of the Toyota Production System (TPS). Leadership is expected to continuously develop people through mentoring and training and development plans to continuously improve performance results. This is the Toyota culture, continuous improvement which is instilled in the employees by the leadership. The effectiveness of a leader is adjudged on the four key parameters namely safety, quality, productivity and cost. It is assumed that performance in these areas mean that the skills and knowledge of the employees are increasing. It reflects the importance of leadership in skill development. Toyota mainly emphasizes the production related leadership and hence has developed Toyota Georgetown production leadership structure. These leaders support various value added activities which are in line with organizational strategic objectives. Toyota uses an “inverted pyramid” model where the leader is at the bottom supporting all the other workers. This shows the importance of leadership development in Toyota (Liker et al. 2006) This leadership model of Toyota discussed above shows the importance of leadership for long term sustainable growth. This leadership and management developed has enabled Toyota achieve its remarkable success in TPS and over all organizational performance. This development program has made Toyota a learning organization and helps foster the learning culture in the company necessary for strategic growth. Toyota especially makes use of the mentorship programs in its management and leadership development programs. This has been made possible because of the support culture at Toyota. Although opponents of the mentoring program believe that it is so subjective and depends a lot on both the mentor and the mentee and the rapport between the two which undermines not only its effectiveness but success rate as well. The success of the mentoring program and the success of Toyota have proved the importance and effectiveness of mentorship programs. Case study of Nokia Nokia is the world leader in mobile communication. It has more than 50,000 employees and net sales of $30 billion. Nokia has two major business groups Nokia Networks and Nokia Mobile Phones. It is the goal of the company to become the market leader in communication and system provider by offering personalized communication technology. It enters new business segments that the company predicts and forecasts will experience fast growth. The management approach of Nokia is called the “Nokia way”. It is based on operational efficiency and organizational competencies in operations. Nokia believes in continuous learning. This learning environment provides opportunity to the employees to develop themselves. Hence management development is emphasized at Nokia. Learning culture encourages employees to take initiative and the associated risk and learn together. This commitment to learning at Nokia means that training and development is not restricted to the formal training class, it goes beyond that. Learning culture at Nokia means that employees not only work for their own development but also support each other in their development. E-learning also helps in personal development of employees at their convenience. The commitment of top management for continuous learning and management and leadership development is depicted by the fact that all the business group presidents are the “owners” of all the leadership and management development programs of the senior managers. These owner themselves contribute in these development programs besides appointing godfather from the management for their valuable contribution. These godfathers not only participate actively but also design program content. These godfathers work in collaboration with the training and development department in imparting continuous learning and leadership and management development program (MLD). Most of these MLD programs are strategic in nature. MLD of Nokia includes various plans such as self development, coaching, learning solutions, management training, training, internal job market and performance management which rewards personal development. Nokia employees have access to various learning opportunities including the training provided at learning centre and e- learning opportunities. Nokia also emphasizes on-job training and job rotation as well for improving management and leadership skills. This learning culture and management and leadership development emphasized by Nokia is an attempt to keep abreast with the fast changing technology of telecommunication. Hence learning and MLD is used as a source of competitive advantage for sustainable growth (Noe, 2007). The case of Nokia further strengthens the view point that supports the importance of management and leadership development programs. It is this philosophy at Nokia which has enabled them to stay ahead from competitors in technology. It requires the vision of a leader and efficient and creative strategy design and implementation of the managers that has enabled Nokia build its Nokia way and earn its place in the market. Through its various leadership and management development plans Nokia has developed such invaluable human capital. Although management development and leadership is required in every industry but its importance exemplifies in the fast changing, technology driven industries such as telecommunication. Case study of Rolls Royce Rolls Royce is a technology leader with more than 36,000 employees in fifty countries. The company has always emphasized on employee development but in 2005 they reexamined their development strategy. It was decided that the talent management which was being done locally within each business unit will be a centralized effort. This shows the importance which Rolls Royce gives for leadership development. Rolls Royce believe in the philosophy that leaders can be developed by identifying the potential talent of leadership at the grass root level and then fostered and developed according to the organizational needs. All the efforts of management and leadership development were thus aligned to achieve maximum organizational effectiveness. According to this new centralized talent management program Rolls Royce hired a stream of young graduates termed as termed as leadership graduates. A pool of such graduate leaders was formed. Succession planning was also done based on this high potential pool. Four key pools were identified namely early career, leadership, senior executive and specialist. Management development and leadership plan was so well aligned that the entry and exit from each pool and potential career path of each and every employee was identified in succession planning. It was done to ensure the personal development of employees in alignment with organizational needs. Talent strategy was revitalized so that individual goals, team goals and strategic organizational goals are perfectly aligned with each other. To keep employees motivated career development plans were promoted and communicated to the employees. All these efforts helped Rolls Royce tremendously in achieving its global focus on leadership development. When the employee is given the chance to choose their own career, it not only keeps them motivated but also flourishes leadership skills in the employees. All the above charted out plan of Rolls Royce for leadership development further strengthens the importance of leadership and management development for organizational success. The company believes in the strength and quality of human capital. They believe that the success of the company is based on all the development plans designed for the employees. It gives the company knowledge based competitive advantage and satisfied and motivated employees for the successful implementation of organizational strategy. According to Kotler organizations these days very commonly ignore the leadership development responsibility of the organizations and employees are left to learn from their own mistakes through trial and error method. The three organizations discussed above proved the importance of developmental programs it has benefitted not only the organizations but all its employees as well. There will always be differing opinions about the importance and utility of leadership development programs but the success of the above discussed organizations has strengthened our view point that leaders are more made than born and organizations should seek to nurture and develop the potential of leadership in their employees for their strategic success. Conclusion After studying the various aspects and views of management development and leadership it is concluded that both of them are necessary for sustainable long term growth of the organization. In this fast changing, highly competitive, globalized world, organizations need to adapt swiftly to the changing environment which can only be done by creating a learning environment in the organization. Learning culture encourages managers to develop their skills and knowledge through training and development and the development of managers should be matched with organizational needs for mutual benefit. Leaders are required to provide the strategic direction, motivation and inspiration for continuous transformation of organizations as demanded by ever changing external and internal environment. The opponents of this theory believe that leaders are born and cannot be trained or made. Although there are differing point of views about leadership development but I believe that organizations should make effort in developing leadership skills in the managers who have the potential of leadership rather than waiting for born leaders. This is also proved empirically after reviewing the three case studies where organizations achieved sustainable growth by emphasizing and investing in management and leadership development activities. Management development and leadership although is necessary for the survival and growth of every organization but it becomes especially more important in technology driven industries. References (Part Two) Alavudeen & Venkateshwaran, 2008, Computer Integrated Manufacturing, New Delhi: Prentice Hall Giber,D., Linkage Inc (2009) Linkage Inc’s best practices in leadership development handbook, New York: Wiley Publications Liker, J. K., Meier, D. (2006) The Toyota way field book: a practical guide for implementing Toyota’s 4P’s, USA: McGraw-Hill Noe, R. (2007) Human Resource Management, New Delhi: Tata McGraw-Hill Read More