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The Theoretic and Pragmatic Aspects of Strategic Management - Research Paper Example

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The paper "The Theoretic and Pragmatic Aspects of Strategic Management" highlights modern concepts of change, and managing the resistance to change in relation to the goal of exemplary leadership and management of the NTPFES. The introduction part of the paper presents a brief outlook in to NTPFES and its Goal 7 People Strategy…
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ORGANIZATIONAL BEHAVIOUR AND CHANGE MANAGEMENT Table of Contents Table of Contents 1 Introduction 2 Framing of the Research 3 NTPFES and Its People Strategy: An overview 3 People Strategy 5 Strategic Management for Obtaining Buy-in from all the staff 7 Viewing Human Capital from individual perspective 7 Viewing Human Capital from Group Perspective 10 Viewing Human Capital from Organization system Perspective 12 Strategic Leadership for Managing the Change 13 Leadership Styles and theoretical perspective of Exemplary Leadership 14 Change and Change Management 16 Managing Resistance to Change 18 Maintaining the Traction 20 Conclusion 21 References 22 Introduction People are exceptionally critical element and perhaps the most valuable as well as powerful assets in an organization since the productivity and organizational performance can be increased up to the highest possible level even without increasing people’s numbers, but with help of strategically managing them. Raw materials, technology, time and any other resources that an organization is rich with may not yield better results if human capital in the organization is not performing well or they aren’t managed effectively. Designing, developing and implementing a unique management strategy to effectively manage human capital and thus bring positive change in the way the organization is running has recently become an extremely important modern concept in the academic and research perspectives of Organizational Behaviour. This piece of research paper examines the theoretic and pragmatic aspects of strategic management, effective leadership and change management in relation to the ‘Goal 7 People Strategy of the Northern Territory Police, Fire and Emergency Services (NTPFES). The organizational and management theories will be applied to Goal-7 People Strategy to analyze how successful was NTPFES in its management, leadership and strategic activities to obtain employee buy-in, manage change and thus increase organizational performance. Framing of the Research The introduction part of the paper presents a brief outlook in to NTPFES and its Goal 7 People Strategy. The Goal 7 People Strategy of NTPFES will be discussed in detail in the second part based on relevant literatures and modern concepts related to the organizational elements of people, process, policy and programs. The third part of the paper will discuss Change Management and leadership strategy and explain how NTPFES has taken strategic measures to obtain staff buy-in and to increase employee performance. NTPFES and Its People Strategy: An overview NTPFES, the acronym for the Northern Territory Police, Fire and Emergency Services, is a government agency committed to work together and develop partnership with other agencies and the community as a whole in ensuring the safe and security in the Northern territory regions. With a mission and vision to continuously ensure a safe and secure NT through the delivering of policing, fire and emergency services to the community. Public safety is its top priority and major concern. By the end of 2010, NTPFES employed 2,023 staff, with an increase of 2% from the previous year. With the mission to ‘keeping people safe’, NTPFES has long been delivering excellent service provisions, community engagement and leadership to ensure the safety and security of the NT regions (Annual Report, 2011). Very recently, NTPFES has introduced its Tri-Service People Strategy with a view to ensure constantly delivering high quality service in response to diverse incidents. The People Strategy it designed comprises of 7 Basic goals with a plan to recruit, develop, improve, retain and support all of its people, in order to make them rich with all the required capabilities, tools, systems and supports programs (People Strategy, 2011). The seven goals of the People Strategy are following; 1) Recruiting and retaining the right people, to ensure placing of right people in the rights place for the right task, 2- Exemplary leadership and Management, so that organizational values and corporate principles can be communicated to its people and thus to bring change, 3- Building Capability through Performance and Learning. In a work setting where employees become knowledge seekers, learners and thus to be self-motivated to become high performers, 4- Delivering a culture of diversity and equal opportunity, so that people in diverse workplace setting get respected, and their dignities as valued. 5- Building a safe and healthy workplace environment, to ensure greater safety and security to the people themselves, 6- Encouraging and innovation and continuous improvement, to help the organization become a high performance working environment 7- People, policies and programs, that are critical elements in people management process and they would serve positive support and advice to the main managers and to make all other managers accountable for the organizational performance (People Strategy, 2011). People Strategy An organization is made up of people, process, systems, technology and so on. the structure and culture within the organization largely influence the people strategy in a firm since they both can determine the success and performance of the organization. As people are most critical elements of an organization, it is highly important the people’s tasks need to be structured in a way that can help the organization achieve its goals. An organizational structure is a system in which job tasks are formally divided, adjusted, grouped and coordinated based on various factors such as market function, product function, areas of operation etc (Robbins and Judge 2011, p. 488). Organizational culture is a system of shared values, people’s beliefs, activities and tasks-related factors that are developed in the organization with a view to influence its members in guiding, shaping and establishing behaviour pattern (Schermerhorn, Hunt and Osborn, 2005, p. 436). Culture is a system of shared values and shared meanings that are held by members of an organization and that distinguishes the organization from others. The primary characteristics of the culture are innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness and stability (Robbins and Judge, 2011, p. 520). Structure and Culture affect people’s ability, opportunity, perception, behaviour, attitudes toward working, high performance etc and therefore management is required to identify and develop most appropriate people strategies that can help people become high performers. An organization will be able to achieve its goals such as profitability and sustainable competitive advantage when it has specific system and program for managing its people effectively. Robbins and Judge (2011, p. 407) highlighted the argument that human capital are the most important assets to an organization, because the knowledge based view of the firm perceives that value creation can be done only when organizations have sufficient know-how to put the intellectual capital to be utilized effectively. Almost all the academicians and researchers in the field of Organizational Behaviour are of the opinion that human capital are the most important assets and therefore they decide whether the organization will be successful or not. According to Schermerhorn, Hunt and Osborn (2005, p. 1), of all the messages and advices on high-performing organization, one message stands above them all, that is ‘ human capital are the most important assets to the organization’. It is because, organizations with positive and progressive human resource practices can gain competitive advantages through the higher productivity and low turnover. Organizations will do best only when its leaders do best in treating its people well, mainly valuing them as valuable assets. The People Strategy of NTPFES is primarily based on the resources view of the organization and NTPFE viewed its people as most valuable assets. John McRoberts, the Commissioner and CEO of the NTPFE, listed the major aims and objectives of the program, that is to align the business objectives with its people strategy so as to ensure developing a high quality and motivated workforce and deliver sustainable results with varying consequences in promotion, recognition, support and career development (People Strategy, 2011) From the academic and theoretical analysis of the People Strategy of the NTPFE, it can be observed that the program underpins the following major areas: Strategic Management to obtain buy-in from all staff, Strategic leadership to implement change and Strategic management for maintaining traction when everybody is busy. Strategic Management for Obtaining Buy-in from all the staff As Bruce (2006, p. 45) noticed, the more inputs an employee can provide about the job he is expected to perform, the more likely he is to buy in to the ideas of the manager for how to do it well. In order to obtain the buy-in from the employees, different managers practice different strategic actions, such as focusing on improving the standard of work, increasing the high performance work setting, giving values to everyone’s opinions, facilitating team work and collaboration etc. Viewing Human Capital from individual perspective Human capital are resources, but most often used and secondary resources. As Robbins and Judge (2011, p. 28) observed, when individuals enter in to an organization, they are like once used by others, as similar to that of a used car. Their behaviour in the new workplace will always be influenced by their experiences and personal or biographical characteristics such as age, gender, and other personality factors. The management is responsible to look at individual characteristics of the newly recruited people and help them get accustomed with the workplace environment in the new organization. The individual behaviour such as ability, values, attitudes etc can be restructured to adjust with the new environment if the management takes strategic actions to influence them. Purcell (2003) developed AMO theory to explain how individual characteristics such as ability, motivation and individual opportunity leads the firm to achieving high performance working. As Gerhart and Barry (2005) explained, ability can be achieved through selective hiring and training, motivation can be obtained through monetary or non-monetary incentives and opportunity can be enhanced through teamwork, suggestions, feedback etc (Kabst and Matiaske, 2005). Selective hiring, training and retaining of the right people Selective hiring, extensive training and retaining right people are key elements to achieving high performance working in an organization. Noe, Hollenbeck and Gerhert (2003) are of the opinion that an organization can be said to achieve high performance working when it has best possible fit between their people, process, technology and programs. Pfeffer (2001) argued that selective hiring, training and higher wages based on performance are critical key indicators for achieving high performance working in an organization. Yalabik and Chen (2008) put forth the same view. According to them, selective recruitment, extensive training, performance based pay system, workplace empowerment and organizational knowledge are some of the highly important elements to achieve high performance working in a firm. Buelens, Kreitner and Kinicki (2002, p. 45) stressed that attracting and retaining competent employees is a competitive advantage. In very recent years, knowledge management has emerged to be an important interdisciplinary approach to the Human Resources Management. Retaining right people in the organization is an effective strategy to ensure keeping an organizational memory, which is an unusual metaphor referring to the storage and preservation of intellectual capital (McShane and Von Glinow, 2004, p. 25). Keeping good employees in the organization is critically important to retain intellectual capital and that is the way to enhance knowledge management, because knowledge management is about creating the knowledge, sharing it among the people and making it useful for overall organizational benefits. Once the right people are selectively hired and they are provided of training and development, the next priority should be given to retain the most talented people, because retaining the right people increase the productivity and overall organizational performance and this is a more powerfully way to obtaining the buy-in from the employees. Newstrom and Davis (2004, p. 139) listed out the seven high performance management practices, that are described by Jeffery Pfeffer. These seven management practices are: 1- Provision of employment security, 2- Selective hiring of most competent people 3- Using self-managed teams, 4- Fixing high compensation on high performance, 5- Making continual investment in employees through training, 6- Eliminating status differences across organizational levels and 7- Providing power to employees through information sharing. Viewing Human Capital from Group Perspective Behaviour of the people in groups in more than the sum or totality of the behaviour of all the individuals who are acting in their own personal ways (Robbins and Judge, 2011, p. 28). There are many factors that influence the behaviour of group. For instance, communication, team work, leadership, power, politics, conflict, organizational learning etc influence the group behaviour. Management is expected to look at these variables and take strategic actions to manage the groups behaviour and lead it to the overall benefits of the organization. Positive Workplace Environment for obtaining buy-in from staff Positive workplace environment is most imperative element to obtaining buy-in from employees and also for ensuring high performance working. A positive workplace environment will be an advantage for employees to get satisfied with their work, to become self-motivated to work hard and to show commitments to the organizational goals. When it comes to the Goal 7 people strategy of NTPFES, delivering diversity and equal opportunity for all employees (Goal- 5) and building a safe and healthy work environment (Goal- 6) are the major two strategic initiatives to enhance positive workplace environment and empower positive attitude of employees towards workplace. Diversity in the workplace refers to all those attributes that happen to be salient to an employer making him think than an employee is different from another individual. Racio-ethnicity, religion, gender, nationality, functional expertise and age are some of the main attributes that create diversity in an organization (Friday and Friday (2003, p. 863). Ciscio (2002, p. 121) stressed that managing diversity is establishing and developing a heterogeneous workforce in a way that the potential of employees can be performed in an equitable work environment, and therefore, no member or group of members gain advantage or disadvantage over others. People in an organizational setting will belong to different ages, gender, class, ethnicity, religion, region, education, nationality, culture and social background. But the human resource managers are expected to manage them all in an equal opportunity stance and no one among them would gain any advantage or disadvantage over any or more of the others. Managing diversity and ensuring equal opportunity among the employees in a workplace have become critical component of improving organizational competitiveness and effectiveness. In order to combat discrimination in the workplace and to foster better diversity, many business and other organizations have recently started greater efforts in identifying, considering and implementing variety of diversity management practices (Hur, Strickland and Stefanovic 2009, p. 501). Viewing Human Capital from Organization system Perspective Robbins and Judge (2011, p. 29) explained that organizational reaches to the highest level of sophistication when both formal structure and the knowledge of individual and group behavior are viewed together. From the perspective of organization system, the organizational behaviour is influenced internal culture, the structure and human resource policies or practices. Organizational culture and organizational performance are closely interrelated. Ogbonna and Harris (1998, p. 274) found that organization’s performance is largely dependant on proper alignment of organizational values. organizational values are basic components of the organizational culture. Barney (1986, p. 656) emphasized that organizations that have rights cultures, right attributes and mangers who are getting right cultures have been found to have achieved sustainable financial performance. When an organization has right culture and its cultural values are properly communicated to its people, the organization will be more likely to influence its people’s behaviour in the following ways; By knowing the organizational culture, people will be able to understand firm’s history as well as present organizational functions, Organizational culture is very likely to foster people’s behaviour in showing commitment to corporate philosophy, Culture is a control mechanism to restructure people behaviour towards desired values, and There can be some sub-cultures in the organization that are found to be increasing effectiveness and productivity (Hellriegel and Slocum, 2007, p. 432). According to McShane and Von Glinow (2004, p. 482), a strong organizational culture and its values are long-lasting and are directly impacting the corporate performance. Culture and related values can be traced back to the beliefs, shared values, general perceptions and mission or vision ideas designed and established by the founders or early managements of the company. When people in the organization behave according to the desired values, its culture contents are most likely to fit the workplace environment. Strategic Leadership for Managing the Change Progressive organizations are those that plan and implement the change successfully and convert it to a long-term profitable aspiration. Bringing a change is more often a bigger challenge in most of the organizational settings, but change always remains to be an opportunity for the organization. Successful organizations in modern times are strategically planning and acting very differently from those of past years. Organizations for both profit and non-profit are greatly being impacted by economic, business, political, governmental and social environments and are therefore influenced to come up with new features, newer ideas and innovative strategies. When it comes to the case of People Strategy of NTPFES, the Goal-2 of the program aims at exemplary leadership and management, with a strategic aspect that the leadership behaviors will be widely understood and accepted across the NNTPFES. At NTPFES, leaders and managers are expected to model the expected behaviors (People Strategy, 2011). Out of various leadership and management styles, the NTPFES aims at focusing on the most significant and exemplary leadership strategy so that the management and leaders will always be successful in implementing corporate change, make positive change in organizational performance and ensure achieving competitive advantages. Leadership Styles and theoretical perspective of Exemplary Leadership Great leaders are the gifted people who make great changes in the business, politics, economics and other major areas. A leader is, as is now commonly believed, both born and made, because many successful leaders haven’t gone through any leadership training courses and similarly many of the successful leaders who completed leadership training have been found to have possessed some inborn leadership qualities. Many of the great leaders are born only and many others are made. But there are successful leaders who are both born and made as well. What makes one great leader? It is perhaps one of the most critical question in explaining various leadership styles. There are different leadership styles, developed by various researchers in the field, such as transformational, charismatic, situational, transactional etc. Charismatic Leadership:- It is the ability, personal quality and capability of a leader who derived leadership authority through some unknown and god-given power or gift to him and his leadership ability seems to be divine. These types of leaders make an emotional zeal and fascination among their subordinates that appeal them towards doing things that he wants them to do (Sashkin and Sashkin, 2003, p. 56) Transformational Leadership:- It is similar to Charismatic leadership, but the difference is that transformational leadership involves special ability of the leader to develop innovative ideas and bring changes to the organization by understanding the needs and personal concerns of subordinates. A transformational leader thus helps his subordinates solve their issues in newer strategies (Daft and Lane, 2009, P. 424). A transformational leader is one who must be able to inspire his followers and bring in enthusiasm and energy to others in order to make them do things that he wants them to do. Transitional leadership:- Transactional leaders are those leaders who clarify their roles and evaluate the tasks-based requirements of their followers, by providing appropriate rewards and meeting their social as well as other needs (Daft and Lane, 2009, p. 424). A transactional leader may perceive his duties, responsibilities and areas of his interests in terms of transaction. Participative leadership: is one in which the leader indulges in decision making and work with others to accomplish certain goals, and he functions as a participator in the task. Situational leadership:- is one in which the leader acts appropriately according to the best situations. Analysis:- The NTPFES aims at focusing on exemplary leadership and management as part of its Goal 7 People Strategy. The leadership behaviour is thought to be widely accepted and understood among the people in the Tri-Service (NTPFES). Among the above mentioned leadership styles, Charismatic is generally found only in greatest people like Prophets, but transformational leadership is one that has been found to be most influencing among the followers. Transformational leadership is one that can make changes and bring positive change in the organizational setting. The leadership style that NTPFES aims at focusing and modeling is therefore transformational so that the leaders will be able to influence on their followers and get them positively involved in the change process too. Change and Change Management Change itself is a strategy, a tool and opportunity that organizations can make use of it to achieve specific as well as general organizational goals. Thompson (1993, p. 697) pointed that change is certainly one of the most significant strategic initiatives that a manager is expected to consider it in volatile organizational environments as a reaction to external threats and challenges or as a proactive effort to seize opportunities and manage the environments. This view highlights that change is an opportunity for managers to help the organization achieve its goals. When the management plans to bring change, most often, the people who are more likely to be impacted of will most probably resist the change and therefore managing the change and its resistance have become central concerns of management in recent years. As Palmer, Dunford and Akin (2009, p. 24) stressed, change management is a systematic management approach that incorporates a number of managerial functions such as direction, planning, coordination, organizing, controlling etc, and involves basic organizational elements like process, people, managerial technique, and strategies. According to a definition given by Jacobs (1997, p. 22), a strategic change is an informed and participative process that result in new ways of doing business activity to lead the organization in to success, for both now and future. Re-engineering, restructuring and innovation are the most important three dimensions of strategic change (Sekhar, 2009, p. 76). Excellence of an organization is equated with the ability to change, because excellent organizations are those that continually innovate, gear to quick changes and conduct regular experiments ((Dobson, et al, 2004, p. 122), and similarly, exemplary leadership is the ability of a manager or leader to continually innovate, gear to quick actions and conduct regular checkups. In order to successfully implement the change, the manager or leader in responsibility of bringing the change is expected possess following abilities and skills, that in turn make him an exemplary leader. Communication skills, that are extremely important within and outside the organization mainly for the change to be communicated to the concerned people in right time and in right manner, Maintaining motivation and facilitating tam works, Administering strategic planning and controlling functions, and Knowledge of the change and facilitating the rationale for change (Paton, Paton and McCalman, 2008, p. 40) Apart from these basic skills and abilities, the manager to be successful in implementing the change must be able to understand employees’ concern about the change, to influence others to motivate them to think positively about the change and get the involved in the change process. More specifically, one of the main challenge in implementing the change will be resistance and therefore an exemplary manager and leader must be able to manage the resistance more effectively. Managing Resistance to Change When a change is being addressed to the people, it is more likely that they do resist it. People’s response to a change may vary. They are commitment, involvement, support, apathy, active or passive resistance, aggressive resistance etc. Getting people involved and supportive to a change is critical to managing the change. It is generally assumed that people inherently resist the change (Saiyadain, 2009, p. 213). It is argued that people do not resist the change for it is simply a change, but rather, they do resist it for the anticipated consequences or expected effects such as job loss, loss of status, loss of pay etc (Dijk and Dick, 2009, p. 144). Some of the factors that may cause increased resistance among the employees are poor leadership, lack of support and trust among the people, lack of management support, lack of reward and recognition, lack of acceptance of employees’ opinions, lack of commitment to change etc (Gilley, Godek and Gilley, 2009, p. 5). It means, ensuring trust and support among the people, management support, reward and recognition etc are highly critical to effectively managing the resistance and thus to implementing the change. It is imperative that the management or leaders in responsibility of change should communicate the change, its purpose, consequences, benefits to the organization and in particular to the people are to be communicated to them. Robbins and Judge (2011, p. 594) listed some of the major strategic measures to manage resistance to change. They are 1- Education and Communication: Managers are to communicate the logic of the change to the people and help them get full facts and details of the change. 2- Participation: In order to manage the resistance, managers can make people involved and participated in the change. 3- Building support and commitment: If the resistance arises out of fear or anxiety, they should be counseled and provided new-skills training so that they wont resist the change. 4- Developing positive relationship: if managers are successful in developing a trust among them, there can be a positive relationship between managers and employees and therefore people will be less likely to resist the change. 5- Coercion: Managers, as a last method, can apply threats or force on the resisters of the change. Analysis: Enhancing exemplary leadership and outstanding management is one of the most important elements to the People strategy of the NTPFES. The main objectives of this strategic approach are to foster greater cooperation and support from the people, obtain buy-in from them, eliminate resistance to change in order to effectively manage the change, create a positive workplace environment where employees can show increased commitments to the organization and so on. Maintaining the Traction From the words of John McRoberts, the Commissioner and CEO of the NTPFES, it is imperative that everybody should be encouraged to get involved with the implementation of the People strategy so that it can ensure maintaining the traction. In order to maintain the traction, as he advised, all of the people in the Tri-Service must take personal responsibility for their work in the organization (People Strategy, 2011). In order to maintain traction as and when all the people are busy with their tasks, the NTPFES has brought various strategies such as Performance Plus that will articulate personnel goals, coaching and guidance and management development opportunities (Annual Report, 2011). The exemplary leadership and management aspirations that the organization is aiming at will be a strategic pathway to attract the people to become supportive and full-time responsible in their duties and tasks. Members of the team in an organization get attracted or their traction can be maintained when they believe that the team or group will help them in achieving their personal goals. At the NTPFES, the Goal 3 of the People Strategy, that is ‘Building capability through performance and a learning environment’, is primarily a tool that can help all the members believe that there are efforts from the management to motivate them and to improve their personal as well as professional skills, and this in turn can help them become attracted to the organizational goals. Conclusion This piece of research paper presented a detailed study on relevant theories and concepts of organizational behaviour in relation to the People Strategy of the NPTFES. It has recently projected, a 5-year long,7-Goal People Strategy, with a view to enhance wider support, consistent and positive commitment from its people towards contemporary people management policies, tools and guidelines. The major elements of the People Strategy are 1)Attracting and retaining the right people, 2)exemplary leadership and management, 3) building capability through performance, 4) Diversity and equal opportunity, 5) Building safe and healthy workplace, 6) Encouraging innovation and improvement and 7) People, Policies and programs. This paper has linked all the above seven strategic measures to the contemporary management and strategic leadership theories and concepts. In order to obtain the buy-in from the staff, selective hiring, extensive training and retaining right people are considered as right strategies. Performance improvement, safe and healthy workplace and other measures included in the 7-Goal strategy of the NTPFES have been considered as effective strategic ways to obtain buy-in from the people. This paper has highlighted modern concepts of change, change management, and managing the resistance to change in relation to the goal of exemplary leadership and management of the NTPFES. Change is an opportunity and a challenge, and therefore it is critical to manage it effectively. When there is a change, it is very likely that people do resist it, and therefore, exemplary leadership is required to build positive environment that people become supportive and involved in the change and all other managerial activities so that there can be greater success in implementing the management projects. References Annual Report, 2011, 2010-2011 Annual Report, NT Police, Fire and Emergency Service, Retrieved from Retrieved from http://www.pfes.nt.gov.au/Publications-and-forms.aspx Barney, J (1986) ‘Organizational Culture: Can it be a source of sustained competitive advantage?’ Academy of Management Review 11 (3): 656-665 Blanchard, P. 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The variations are not too serious and mostly concern the share of attention paid to either technological or human aspect of KM while the key principles remain similar in the modern models of KM: explicit and tacit knowledge, interactive nature of KM processes, increased attention cognitive and motivational aspects of KM.... This paper talks about knowledge management which is a very broad discipline that integrates a number of organisational endeavours and practices used by different organisations in a variety of ways in order to identify, create, represent, and distribute knowledge and thus ensure competitive advantage of the competitors....
20 Pages (5000 words) Essay

Contemporary Training Initiatives of the UK Government

Further discussion in the study will evaluate various theoretical aspects and organisational applications of the different approaches of human resources development such as learning, training and evaluation of training procedure.... The paper "Contemporary Training Initiatives of the UK Government" highlights that the UK government is actively participating in the training and development process of private as well as public organizations to enhance the economical growth of the country....
13 Pages (3250 words) Essay

Analysis of Different Books Covering Different Areas of Communication

The authors have provided a critical appraisal of emerging techniques and strategies of integrating communication as a facilitator of strategic innovation.... The authors argue that the innovation sector demands new standards for international business and needs effective management of innovation to plan, implement, and assess innovation programs (Caywood, 2012:29).... Efficient innovation management is also required to develop innovation capability and organise resources and potential for innovation....
9 Pages (2250 words) Annotated Bibliography

Learning and Development Strategies in Organizations

According to Denisi and Griffin (2005), human resource management refers to the comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce i.... Action learning encourages the cultivation of distinct leadership qualities in business practitioners whereas mentoring is the process of using specially selected and trained individuals to provide guidance pragmatic advice and continuing support in order to help the persons in increasing their competence in carrying out a specified job....
8 Pages (2000 words) Coursework
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