Theories of Management and Leadership Development - Essay Example

? Assessment on Management and Leadership Development By: Table of Contents Contents Page numbers Part 1. Introduction 3 2. Leadership – overview, definition 4 3. Theories on leadership 4 4. Management development – description and theories 7 5. Conclusion 9 1. Introduction What makes Management and Leadership Development globally nowadays so important? This question has been asked and thoroughly analyzed, investigated and discussed by management thinkers, management gurus, scholars, practitioners and management authorities at different countries and by different languages and backgrounds. In order to understand the value of management and leadership development, it is important to go to the roots of why and what makes management and leadership development under focus. Do we have the appropriate environment and systems to develop these Leaders? Why do we need success managers and success leaders? And then what makes success managers and leaders. What sort of influence does early childhood on leader's success? What critical channel must leaders follow on their Journey to success? How long will take them? What are the life experiences that contribute to leadership success? What must success Managers and great Leaders do exceptionally very well to become and remain outstanding? So is it education? Is it luck? Is it who knows how? Is it chance? …and so on. Years back when we talked about the old management theories such as the Scientific theory of Fredric Taylor and Henri Fayol – The Science Management concept and even Max Webber in Germany with his concept and theories after the II World War as all military soldiers sent to work in the Civil Service offices as Supervisors, Managers and Department Heads. Unfortunately, these were wrong people at wrong jobs as they keep on practicing the Military rules by passing instruction like Father to Son and Supervisor and Subordinate. Such theories in my opinion have not developed effective management and success leaders, because there were no proper management development centre's or assessment systems such as 360 degree feedback, or key performance indicators (KPI) as of today. 2. Leadership – overview, definition The Common belief that leaders are born has come to be outdated. Continued studies and researches have come to conclusion that leaders are made rather than born. I and based on my analysis, reading and researching belief that yes leaders are made but also are born with certain characteristics, charisma and qualities of proper personalities example if a person is shy, weak, hesitant, negative minded…etc will be difficult to develop him as a leader. Leadership is badly needed for Organizational success, as someone has to take the hard and tough decisions, take responsibilities during crises, lead the way forward. There is a say that one Lion leads thousands of Rabbits better than one Rabbit leads thousands of Lions. Various definitions have been developed for explaining the context of leadership. One of the most known definitions of this type is that of Kotter (1996). In accordance with the above theorist, the leadership should be described as follows: ‘Leadership defines what the future should look like, aligns people with that vision and inspires them to make it happen, despite the obstacles’ (Kotter 1996, p.25 in Wallin 2010, p.26). 3. Theories on leadership Leadership is influencing people to get things done to standard and quality above their norm and doing it willingly. Generally, leadership could be described as follows: lead more, Manage less, empower inspire and energize people and unlock their true potential. Also great leaders make a difference not only to themselves but also to those around them. However great leaders produce great results. In accordance with the theory of Mintzberg, the elements of the leadership can be made clear if the specific framework is explained using a metaphor; in the context of this metaphor, as Mintzberg notes, the leadership should be regarded as an art or craftsmanship (Koivunen et al. 2009, p.169). At the next level, Mintzberg notes that the role of managers in all businesses is likely to incorporate ten activities, categorized as follows: ‘interpersonal roles, informational roles and decisional roles’ (Koivunen et al. 2009, p.169). In the context of the above theory, a successful leader has to be able to develop these activities, even if related to individuals at lower level of the organizational hierarchy. This assumption is based on the fact that a leader has the responsibilities of a manager plus the responsibilities of the business owner – meaning the monitoring of all organizational activities. From another point of view Goleman (2004) noted that successful leaders are likely to be characterized by ‘a high emotional intelligence’ (Wallin 2010, p.26). It is not made clear though whether this characteristic should exist in the short or in the long term; moreover, under certain terms it is possible that the specific characteristic, even if highly developed to a particular leader, is not clearly distinguished. In that case, it would be difficult to evaluate whether a person meets the requirements of a successful leader. In addition to the above theories, the theory of Watson (2002) on leadership should be also mentioned. The above theorist has been based on the view that leadership is related to power. More specifically, it is explained that a leader needs to have the power to impose his orders. Only in this way, the social hierarchy is protected and enforced. Thus, when having to evaluate the effectiveness of a leader (meaning fairness, and support towards equality), the following issues should be explored: a) had the leader the choice to follow a different plan of action – taking into consideration the conditions of the case study, both locally – in terms of time also – and internationally – in case of multinational corporations, b) has the leader the ability to influence the view of employees in regard to the necessity of the measures suggested; c) which would be the participation of the other side (meaning the employees) towards the promotion of the measures/ changes suggested by the leader; in this case, the power of the leader to impose his view, is quite important for achieving organization’s targets. Power, as related to the leader’s decisions, is usually categorized as follows: organizational, interpersonal and societal (Watson 2002, in Marturano et al. 2007, p.129). After reviewing the behavior of leaders – as reflected in management decisions of various types – theorists have come to the conclusion that the behavior of the leader within the organization is quite important for the success of business operations. This assumption is based on the following fact: in organizations where employees are encouraged by the leader – meaning the psychological support to their daily – to be creative, then these employees are expected to develop a high level of innovation; in other words, the encouragement for creativity increases employee innovation (Holman 2003, p.187). In accordance with Western (2007) the traditional role of leader within the organization has been changed; in the same context the requirements of a successful leadership have been alternated. In the past, the success of a leader had to be evaluated using only data related to the performance of the relevant organization. Today, leadership is considered as a complex framework, incorporating not just the skills/ competencies of the leader, but also the environment in which the leadership will be developed – meaning the organizational environment. From this point of view, when having to improve existing management practices, modern leaders should take into consideration the following details: a) successful leaders have not necessarily graduated from a top business school – a trend expanded in the modern market, b) successful leaders should be able to order the necessary changes on their firms’ plans; in order to respond to the needs of such initiatives, leaders should be aware of their firms’ needs and characteristics but also of the management principles as used in all key organization’s decisions. At this point, a radical change on the firms’ existing management practices could be decided, aiming to the support the management development of the particular organizations. On the other hand, the development of practices, which could be used as ‘models of action’, could not help leaders to support their claims – as included in their action. The above assumption is based on the view that the role of a leader is related to the intervention in an existing dispute/ organizational challenge; thus, the decisions taken are expected to be unique (Hunt 1982, p.237). This means that when having to develop a series of leadership practices, the use of well-known (and adequately tested) theories, as those suggested above, may not help towards the retrieval of effective solution. However, it is possible that existing theoretical framework will help to identify effective solutions for critical organizational problems. 4. Management development – description and theories As explained above, the success of leadership is related to a series of factors. The awareness of the organizational environment is a primary requirement for the establishment of effective leadership decisions. At this point, the management development, as a concept reflecting an organization with particular characteristics, should be explained. In accordance with Thomson (2001) management development incorporates a series of management activities, ‘most of which are monetary-related’ (Thomson 2001, p.131). Moreover, Storey (1989) notes that management development is a process focusing to support leaders in the decision-making process (Thomson 2001). However the above explanation of management development process comes to an opposition with the following fact: In order for employees to secure their position in the organization it is necessary that the resources for the support of the leader’s decisions are sufficient. The elements of management development are analytically presented and explained in the study of Mullins (2007). In accordance with the above study, the term ‘management development’ can be used in order to show the level of readiness of the manager/ leader to accept – or to face – a series of changes developed within the organization (Mullins 2007, p.767). From this point of view, it is explained that management development cannot exist without being followed, or else combined, with an appropriately customized training program. Moreover, it is explained that the training of leaders in various organizational issues could be valuable only if combined with the appropriate organizational conditions – meaning the conditions that would best prepare leaders for strong turbulences - in the firm’s internal or external organizational environment. At the next level, reference is made to the most common training programs – in institutions where the management development is promoted, i.e. the Experiential learning or the Action learning, are modes of training used within modern organization; these modes of training can ensure the effectiveness of leadership decisions, since these decisions would have been developed by individuals (leaders) appropriately training on the issues involved. 5. Conclusion The requirements and the challenges of management development and leadership are not standardized. The theories developed in relation to the above concepts proved that the perceptions of theorists on these aspects of management are not similar. Thus, depending on the role of management development and leadership, as this role is developed within a particular sector or market, different theories can be used for evaluating the decisions of entrepreneurs worldwide. The review of the theories developed in the context of the management development and the leadership has led to the following assumption: indeed, the use of theory for designing and promoting strategic business plans can significantly increase these plans’ credibility; however, the level of success of these plans cannot be known in advance. There is always the chance of failure - as in all business projects – but the following exception should be taken into consideration: in organizations where leadership and management development theories are used for developing critical decisions, failures in regard to the success of these decisions are likely to be limited (Koivunen et al 2009, p.169). The existence of data retrieved through similar businesses in the past – as the relevant information is incorporated in the literature published in the particular field, helps to reduce the risks for such initiatives, if they are repeated in the future. Table of Contents Contents Page numbers Part 2 7. Leadership and management in practice – overview 11 8. Practical aspects of Management and Leadership Development – Human Capital management 11 9. Reasons that drove managers globally to employ leadership and management theories when designing their organizations’ operations 12 10.Characteristics of a charismatic leader as they can be identified in modern organizations 13 11. Example of a successful leader 13 12. Women and leadership 15 13. Organizational Management Development – levels of maturity 16 14. Conclusion 18 References 7. Leadership and management in practice – overview The review of existing theories on management and leadership showed the importance of the particular theoretical framework for organizing daily operations of enterprises globally. This fact is made clear through the examples presented above. At the same time, the practical implications of theories related to management and leadership are presented and explained in order to understand the potential intervention between theory and practice for building a successful business. Under certain terms, differences can be identified in the methods used across organizations when having to choose a theoretical framework for supporting their strategic decisions. However, these differences can be considered as justified if taking into consideration the strong dependency of businesses on their social and cultural environment. 8. Practical aspects of Management and Leadership Development – Human Capital management Talking about Management and Leadership Development means talking about people as the most important asset of modern organization. Often, the term Human Capital is used to show the knowledge, expertise and skill accumulated by a person through education and training through a framework or system developed by the organisation to develop its team. In all firms, human capital is of critical importance for the success of the organization, for example, the International Business Machines (IBM) or General Electric, Pfizer Group, HP; these firms have their own systems to develop their teams. The phrase ‘human capital management’ can also refer to the productive capabilities of human beings. Human Capital theory views expenditures in developing people as a investment with valuable returns (Return on Investment – ROI). So, what does it mean to organizations practicing Human Capital Management? Human Capital Management can be seen as a discipline that drives bottom line performance and create value throughout the organization by adopting certain practices. This is why organizations vary from one to another eventhough they are operate in the same industry. Some of these firms succeed and others fail. Probably, the main reason is their leadership type. SAS is an organization where the above phenomenon is clear. 9. Reasons that drove managers globally to employ leadership and management theories when designing their organizations’ operations The business and commercial working environment globally in both sectors, Public and Private, has been altered dramatically in the last 20 – 30 years. It is also expected to become more difficult and unstable during the next 5 – 10 years. Technologies have played major paradigm shifting in business, pace of working life have moved up several gears. Competition, Population growth, political issues and so on, are reasons to admit that Globalization is a reality; Moreover, the fact that globalization affects all organizations cannot be ignored. This impact may have the form of direct competition from other new international entrants in the market place. Globalization forces upon us a culture of benchmarking with the "best in the world", and organizations cannot remain still, but they have to move forward and fly like falcon, otherwise they will disappear in the market. It is for these reasons that organizations do their best to get the suitable leader to drive the organisation. 10.Characteristics of a charismatic leader as they can be identified in modern organizations Every human is possessing ability and capabilities to become a Manager or leader. What makes people to avoid becoming Managers and/or leaders is the feeling of who am I? Less confidence, lack of experience and not taking risk and so on. However, opportunities for people to become Managers or successful Leaders are massive and such opportunities can appear every day. Leadership capabilities can be built gradually by training; Most commonly, this happens when individuals realize that they possess many of the characteristics to be good leaders. In Management there is a statement, which says leaders are born and others are made and I believe it is a combination of both. 11. Example of a successful leader The following story could help to understand the role of leadership and management, as parts of business. I heard the story recently and I think it would help to understand the interaction between leadership and management, as reflected in the activities of modern organizations. One day employees are reporting to duty as normal routine day. At the gate a big sign says: Sorry to let you know that the person who was hindering your progress and Company progress has passed away. Everybody was upset, shocked and wondering, who is he or she? Is it the CEO, The Chairman as everyone think of his/her supervisor? Employees were allowed to go in the room and see the dead body and every one went there, look inside and saw his/her face in the mirror. The CEO came to them and said, it's you and no one else stopping you. You can be the CEO of this company, so do not blame others, but blame yourself. If you cannot make it as a successful leader. According to Mintzberg's theory (1973) he classified the role of any leader by the following three(3) roles: 1. Interpersonal skills: by act as gluing the tams at the organization, liaison between management and staff, linking the organization vertically and horizontally 2. Informational skills: by communication and communicating to all staff and regularly. Weekly management meetings could help to achieve this target; the phone lines should be organized as follows: weekly hotline (one or two hours) with any member of staff calling the CEO office, by electronic mail on monthly basis as news from the CEO office or even informational gathering before each weekend. 3. Decisional skills: by being leading in his/her strategic thinking, entrepreneur, good negotiator and accretive in decision making in particularly during crises. If we apply Jack Walsh principles in his Management style when he was leading the General Electric in reference to Mintzberg theory, Jack used to fire 20% of the workforce every year. These employees fallen in box 4. Mr. Walsh is not firing the low/low because he does not like them or just because they are deadwoods, but he feels, they are not fit for GE and they may make it in different organisation. On the other hand and according to Luthans, Hodgetts and Rosen Kraft there is quiet significant changes of managers and leaders allocation of activities by time. There were more emphasis on people and Human Resource Management rather than the traditional way of managing or communicating and networking. According to their research the allocation on HRM activities have increased from 4% to 44% over years. When I discussed Fredric Taylor theory, he was totally ignoring the human factor and focusing on production only. Today there are successful organizations that have incorporated programmes for responding to the needs of their human capital e.g. McDonald, HP, Microsoft. In the Airline Industry of the Gulf region, there are firms that highly invest on the fair treatment an rewarding of their employee; for example, the Emirate Airline, a firm that is considered as one of the most successful in terms of its human resources management practices and of its strategic management in general; Indeed, the firm has its own taxies, new A380 aircrafts and employees are highly paid; moreover, the firm has the only prestigious Aviation Club in the region for the staff and cabin crew. 12. Women and leadership Focusing on leadership Principles there is no difference between male & female as the gender has no issue, it is the skills, personality and characteristics. In USA as an example with a total workforce of 46% female unfortunately only 2 to 3% are female. The same percentage are noted according International Labour Law (ILL) Women, however need to be supported by building trust and confidence on them, so that they can hit the ground running and achieving results. 13. Organizational Management Development – levels of maturity Burgoyne -1988 has very well classified six (6) levels of Maturity of Organizational Management Development. 1. No systematic Management development total reliance on natural re active and by coincidence. Such organizational management development is progressing very slow and never take the lead. An example I do remember on years back that Iraq was trying hard to invite Airlines to operate to Bagdad. Gulf Air (our country airline carrier) has taken the risk and the led by operating to 3 stations in Iraq. This airline made it's highest profits from these stations during the full last year compared to the other 50 stations they were flying to for the last 60 years. The credit I think goes to the airline CEO Mr. Majali for being proactive, risk taker and firm. 2. Isolated Tactical Management Development i.e. adhoc tactical management activities. We all know that there are three levels of Management as follows: 3. The Tactical level ie (the Middle level) of Management shall not be in Isolation and shall not operate on ad hoc basis but to translate the strategy into to Man over in business during high level of competition and or crises. 4. Integrated and Coordinated Structural and development tactics. To reach the maturity stage of the organizational Management Development has to be fully integrated and coordinated in developing its tactics. 5. A Management Development Strategy to implement Corporate Policy. This can be done through a managerial Human Resources Management Planning and providing a strategic framework for a proper and smooth operations. 6. Management Development Strategy input into corporate policy formation. Management development processes feed into corporate policy decision-making process and by conducting SWOT analysis 7. Strategic Development of the Management of Corporate Policies 14. Conclusion The practical implications of leadership and management can be different compared to their challenges as identified in the literature. However, it seems that common principles are used by individuals at various organizational levels (including the leader but also employees in lower levels of the organizational hierarchy) may be the same, allowing common schedule for facing the relevant challenges. At the same time, there are potentials for measures to be developed in advance – even if their effectiveness cannot be guaranteed in advance. In any case, the reference to examples of similar organizational decisions could help leaders to avoid any major failure when designing critical organizational plans. These examples also indicate the benefits of leadership and management development, as elements of business strategic process. References Holman, D. (2003) The new workplace: a guide to the human impact of modern working practices. Hoboken: John Wiley and Sons Hunt, J. (1982) Leadership, beyond establishment views. Illinois: SIU Press Koivunen, N., Rehn, A. (2009) Creativity and the Contemporary Economy. Copenhagen: Copenhagen Business School Press DK Kubr, M., Prokopenko, J. (1989) Diagnosing management training and development needs: concepts and techniques. International Labour Organization Marturano, A., Gosling, J. (2007) Leadership: the key concepts. London: Routledge Mullins, L. (2007) Management and organisational behavior. Essex: Pearson Education ?homson, A. (2001) Changing patterns of management development. Oxford: Wiley-Blackwell Wallin, D. (2010) Leadership in an Era of Change: New Directions for Community Colleges. Hoboken: John Wiley and Sons Western, S. (2007) Leadership: a critical text. London: SAGE Woodall, J., Winstanley, D. (1998) Management development: strategy and practice. Oxford: Wiley-Blackwell Read More