Leadership and Management Development - Coursework Example

Leadership and Management Development LEADERSHIP AND MANAGEMENT DEVELOPMENT Introduction Management and leadership training is a fundamental investment for any firm that strives to be successful. While leaders are involved in motivating and inspiring the workforce, managers are responsible for the planning, organization, and coordination of the organization’s projects. In order for these essential contributors to work effectively towards the success of the organization, they require support and training (Steers et al, 2012: p480). These critical employees must be prepared for the challenging business environment that exists today. Leadership and management development, therefore, should be founded on developing entrepreneurial and innovative leaders and managers for an increasing technology-based world. This holistic approach combines practical application with current theory to focus on the core elements of managers and leaders. For leadership, development enables confidence during decision making in order to aid in overcoming challenges and to capitalize on opportunities. In addition, for managers, integrated teams of management are made more aligned and efficient (Steers et al, 2012: p481). Overall, the main goal of this development is to increase personal effectiveness to build the confidence that managers and leaders need. Management and Leadership Management and leadership are normally considered synonymous with one another, and it is important to note that one fundamental aspect of effective management involves leadership. Leadership has been defined as a social influence process that enables individuals to enlist the support and help of other individuals in completing a specific task (Armstrong & Stephens, 2010: p56). Leadership can also be defined as the organization of a group to fulfill a specific target. Scholars have come up with various leadership theories over the years, including leadership theories, leadership models, and leadership traits, all of which seek to explain leadership-defining traits. Five styles of leadership have been identified reflecting different levels of people orientation and task orientation; directive, consultative, participative, negotiative, and delegative leadership styles. Contingency theories of leadership, on the other hand, posit that the best style of leadership is decided by the situation. As such, there is no “best” leadership style. Finally, the new leadership model contrasts transactional and transformational leadership styles, while also adding new terms like charismatic and visionary leadership (Armstrong & Stephens, 2010: p57). Management, meanwhile, is defined as the coordinating function in the organization that directs individual efforts to accomplish objectives and goals via the effective and efficient use of available resources. This function consists of staffing, organizing, planning, directing, and controlling initiatives to achieve set organizational objectives. Resourcing is also a sub-function of management, which consists of the manipulation and deployment of natural, technological, financial, and human resources (Rothstein & Burke, 2010: p38). Management is incorporated into all the organization’s aspects, and Henri Fayol considered management as consisting of six functions; controlling, coordinating, commanding, organizing, planning, and forecasting. Henry Mintzberg also came up with ten roles that are played by management, which he divided into three categories. The first category was interpersonal roles, such as figureheads, leading, and liaison. The second category was informational, including three roles that were mentorship, dissemination of information, and being a spokesman in and outside the organization on results, policies, and plans. In the decision category, managers play four roles, including entrepreneurship, handling disruptions by taking corrective actions, allocation of resources, and negotiations internally and externally (Rothstein & Burke, 2010: p40). As can be seen, the manager’s job is fluid and may involve the fulfilling of various roles at a go. In an organization, the importance of leadership comes from its role in shaping and creating the culture of the organization, as well as setting the organization’s progressive direction (Ackerly et al, 2011: p577). As a result, management would not have a role to play in the absence of leadership roles with leadership creating the context within which management exists. On the other hand, management ensures the development of effective leadership at every level of the organization to drive future growth. Thus, leadership shapes the future via strong ideas and ideology for the organization, on which the system of management is designed. Executives are said to be leading when they are involved in using inspiration to influence individual employees to achieve a common objective, while they are said to be managing when they drive staffing, organizing, and planning. Where there is no leadership, management lacks clear ends and means, while lack of management means leadership coordination and discipline to achieve the objectives (Ackerly et al, 2011: p578). Therefore, management and leadership are intertwined and inseparable, and the lack of one jeopardizes the other. However, there are important differences between the two functions. First, while leadership provides direction and inspiration to take that direction, management delegates responsibility and authority, as well as lays down the structure of the company’s future (Zhang & Bartol, 2010: p112). Secondly, whereas leadership is focused on motivation, teamwork, relationship building, and listening, management is focused on directing, staffing, organizing and planning. In addition, while managerial authority comes from hierarchical position, leadership authority comes from followers. Fifth, leaders follow instinct as managers follow procedures and policies, while management and leadership are a science and an art respectively in how they carry out their roles. Moreover, while leadership is involved in the organization’s people aspect, management is involved in the organization’s technical perspective. Finally, whereas leadership evaluates personnel in terms of future potential and performance, management evaluates personnel in terms of current performance (Zhang & Bartol, 2010: p112). It can also be said that leadership is proactive, compared to the reactive nature of management. In carrying out its functions, management can be affected by both internal and external factors. One external factor that affects management is the sociological factor. This involves general cultures, personal values, work ethics, and demographic trends and status, which influence the accomplishment of objectives by management to varying degrees (Berce, 2011: p295). For example, an international company faces unique social environments in each country that they operate in, and management must understand these environments as the organization expands. As a result, management can plan for the future by creating products for specific groups of people. Economic and political factors also influence the management function, including such aspects as customers, suppliers, and competitors, which management must study to ensure a dynamic and continual relationship. For an SME, the management must assume that, their organization has output and input, especially when in an open business model. By appreciating the customers, competitors, and suppliers, management, can then make effective decisions. As a result, they can then create products that have time, form, and place utility for success in the market (Berce, 2011: p296). Identifying management and Leadership Needs From the discussion above, it is clear that leadership and management development is critical if an organization is to achieve its objectives successfully. However, prior to any development, it is essential, to first identify development needs for management and leadership. One method of identifying these needs is through the use of professional leadership and management standards. This method identifies four levels of leadership/management. These are; an executive leader, manager of managers, manager of others, and manager of self (Stare, 2008: p266). Every level is given a unique set of responsibilities that need different attitude, focus, time allocation, value set, behavioral set, and leadership and management skills. The standards considered here include driving client value, delivering results, leading change, acting as an owner, working as a partner, and building great teams. Another technique of identifying management and leadership needs is the assessment and development centre. The assessment center refers to a multi-method selection approach that requires a candidate for management or leadership to complete different assessments, which assess their key competencies for their potential roles (Stare, 2008: p268). It provides a clear comprehension of the development needs and strengths of the individual, while evaluating their potential. On the other hand, a development centre focuses on furthering the development of the individuals. Both of these centers have competency profiles that are determined on the basis of their roles, which aid in evaluating their performance for each completed exercise. Competency profiles are tailored to specific functions or organizations and are reflective of the expectations held by the organization for the role (Braddy et al, 2013: p695). The results of the profile are compared to norm groups, and the feedback focuses on the expectations of the organization and the characteristics identified by the organization for their leaders/managers. Finally, psychometric testing is also used in development needs identification and involves aptitude and personality tests, covering analytical ability and logical reasoning. The test measures transactional and transformational competencies related to creative and strategic thinking, deciding and leading, changing and developing, improving and implementing, presenting and communication, and supporting and relating. It allows for the benchmarking of competencies and style against other managers/leaders. The report feedback has various sections covering leadership competencies, situational leadership effectiveness, people vs. task orientation, leadership vs. management style, and leadership level (Braddy et al, 2013: p699). These techniques have both advantages and disadvantages. With regards to using assessment and development centers and their subsequent competency profiles, there are several advantages. First, the measured skills and the techniques content and level are related directly to the leadership/management position, enhancing validity (Pearce et al, 2013: p250). In addition, because it reflects the position’s content, it seen as fair by most employees, while there is little risk of participants being exposed to the exercise before assessment. However, some of its disadvantages include significant initial costs and danger of the results being obsolete if the position or population of participants for which the assessment was made for changes. Moreover, these exercises need time for design, as well as trial, prior to their availability for use (Pearce et al, 2013: p250). Psychometric testing and feedback also has pros and cons. Its advantages include fair and equal treatment of all participants as it is objective and standardized, participants with good skills in interviews do not have unfair advantage, it is fast, it is more consistent, reliable, and free from error, and it allows for prediction of numerous management/leadership performance aspects (Carmichael, 2011: p90). In addition, it also saves costs and time as it can be administered to groups of participants. However, these tests also have disadvantages, such as disgruntlement among internal leadership/management candidates due to similar treatment with external candidates. Moreover, some candidates may undergo nervousness and lead to incorrect results, while some tests are hard to score and require training for interpretation and administration. Finally, initial costs of testing set-up may be high, although not as high as DC, while initial resistance due to misconceptions among candidates may result in poor outcomes (Carmichael, 2011: p91). Identifying leadership/management needs enables the organization to achieve its objectives more effectively. However, various factors in the internal and external environment may influence the technique used by the organization to identify these needs. The organizational environment has unique values that shape relationships with the community, staff, customers, and investors, thus determining the management/leadership aspects required by the organization (Nguyen & Mohamed, 2011: p211). Organizational resources also influence the specific needs of the organization, impacting on the characteristics required in management/leadership and, therefore, the technique used to identify needs. In addition, the size of the organization influences the different roles taken by employees, which are defined by responsibilities and tasks. Thus, the technique used should cover key competencies for different roles. A large organization, for instance, would require assessment and development centers to evaluate potential. Economic and political factors also influence the technique for identifying leadership/management needs. For instance, leaders/managers in international organizations must quickly appreciate new competitors, customers, and suppliers in international markets (Nguyen & Mohamed, 2011: p212). Therefore, they must have creative and strategic thinking skills, as well as change and development handling skills. The best technique in such a situation would be psychometric testing. Formulation and Implementation of Leadership and Management Development Strategies There are various approaches used in the formulation and implementation of leadership/management development strategies. One approach is the formal strategy of management development. Formal approaches are grounded in development needs identification via development centers and performance management, while they may be structured on core competencies that are considered as appropriate for leaders/managers in the organization (Dalakoura, 2010: p437). One of the approaches under formal strategies is on-the-job development through monitoring, counseling, coaching, and feedback on a continual basis by managers, which is related to utilizing performance management processes in the identification and fulfillment of development needs. Development via work experience is another formal strategy that involves action learning, being part of task groups/project teams, job enlargement, and job rotation. Formal strategies can also take the form of external or internal courses, which are delivered in form of a series of modules (Dalakoura, 2010: p437). In addition, structured self-development and e-learning can also form part of the formal learning approach. Informal management development approaches use learning experiences met in the daily work of the managers (Dalakoura, 2010: p438). Every time managers/leaders come across unfamiliar tasks, unusual problems, or move to different roles, they learn and evolve new ways to deal with these situations. In addition, these managers will learn after analyzing their actions to ascertain why and how they failed or succeeded, which is, however, only effective if it can be applied again successfully in the future. Informal or experiential learning is natural to leaders/managers that can unconsciously absorb lessons and processes from experience, prior to retrieving this information in the future when required (Dalakoura, 2010: p438). Formal management/leadership development approaches have several advantages. To begin with, it is possible for large numbers of management/leadership candidates to learn similar processes and information at the same time, while the development training is up-to-date and accurate if it is designed properly (McGurk, 2010: p460). In addition, if formal development is well-designed, it can consist of various methods that conform to principles of adult learning and different learning styles. Also, once managers/leaders are developed formally, they are able to come to speed faster when they begin to carry out their responsibilities. However, formal management development approaches also have disadvantages, including the probability that managers/leaders may leave for jobs that pay better once trained, while the costs of such a strategy could be significantly high. Moreover, formal development of managers/leaders results in loss of work-time and development quality must be of high quality in order to maximize its effect (McGurk, 2010: p460). Informal MD approaches also have their advantages, including the fact that they are less intimidating and more personal for majority of leadership/management candidates. They are also more time-efficient and less costly, while experts on specific subject-matters seem to be more willing to share experiences and knowledge informally (Dalton, 2010: 72). Finally, managers/leaders are less likely to encounter resistance in development as this strategy occurs naturally during the working-day. However, informal MD approaches also have disadvantages, including risk to productivity during peak hours, as there is added need for supervision and assistance. Additionally, there is a risk that misinformation may be passed on, as well as an added risk of poor prioritization, especially if there are cost-cutting strategies in place. Finally, informal approaches lead to inconsistency, as there is poor standardization of procedures and instructions, which results in inconsistent knowledge and skills acquired by potential managers/leaders (Dalton, 2010: 72). Various factors influence the formulation and implementation of management/leadership development strategies. One of them is multicultural factors, especially in international organizations. In such organizations, identification of cultural competencies is important for organizations to embrace diversity fully in the international mobility process (Mabey & Finch-Lees, 2008: p48). While assignments to international positions are taken as development strategies, pre-assignment development is also important as the potential or current managers/leaders should be prepared for cultural differences expected. Formal appraisals, therefore, become important as part of the development program, while implementation of development programs becomes critical in aiding the managers/leaders to absorb the culture shock. Support becomes essential with sponsoring and mentoring arrangements forming a crucial aspect of the international LMD process. Organizational change also influences the formulation and implementation of LMD. LMD must take into consideration the human side of change systematically during formulation as there is need to develop new capabilities and skills, as well as changes in job roles (Mabey & Finch-Lees, 2008: p49). Organizational change also requires that formulation and implementation of LMD assesses the cultural landscape at all levels of the organization, which identifies potential conflicts and readiness for change and integrates these into the LMD strategy (Dries & Pepermans, 2012: p366). External factors like economic factors also have a significant impact with development being directly related to unpredictability and uncertainty in the market, as well as to R&D and investment in innovation. Mostly, the LMD strategy formulation and implementation is dependent on forms of capital investment and internal labor market presence. Finally, competition also impacts on LMD strategy formulation and implementation. While increased competition could negatively affect LMD strategy implementation due to lower margins and the need to cut costs, increased competition could also force organizations to formulate and implement better LMD strategies to tackle the identified inefficiencies (Dries & Pepermans, 2012: p367). Leadership and Management Development Interventions Several interventions that can be used in implementing management and leadership development plans and strategies, including mentorship and coaching. Mentorship refers to a personal developmental relationship where a leader or manager with more knowledge and/or experienced aids in guiding other potential management/leadership candidates, especially those with less knowledge/experience (Jing & Avery, 2008: p69). The latter individual is referred to as an apprentice or mentee. This intervention always has to do with communication, while it is based on relationships. A process aids in the transfer of psychosocial support, social capital, and knowledge that the recipient perceives to be relevant to their professional management/leadership development. Mentoring involves face-to-face informal communication over a sustained time period between personnel with greater relative knowledge/experience. Mentoring aids employees to develop management/leadership skills and talents from the experience of other managers/leaders within or outside the organization. On the other hand, coaching is a more formal method of leadership/management development. It is a development or training process through which the organization’s personnel are supported to attain specific professional competence objectives (Jing & Avery, 2008: p69). This provides the one being coached with feedback regarding their leadership/management weaknesses and strengths, while it is relatively shorter than mentorship and is generally non-directive. It is mostly focused on the development of individual management/leadership skills and consists of both individual and organizational goals. While personal issues may be discussed akin to mentorship, coaching mainly focuses on work performance in leadership/management positions (Jing & Avery, 2008: p70). Mentorship has several advantages, including the ease of acclimatization for employees who are new to the organization or the job. The mentee has the ability to become more productive as potential manager/leader faster when they have a person they can discuss scenarios with, as well as learn about the culture of the organization from (Edwards et al, 2013: p6). Since in this case the mentor is a leader/manager and depend on the mentee’s performance to achieve set objectives, they are motivated to ensure the mentee’s proper development. In addition, mentorship also helps the mentee to get a sense of achievement, particularly from the feedback from the mentor. However, there are also some disadvantages with mentorship, such as the risk of a mismatched pair, especially where the mentee-mentor relationship has been forced. In this case, the mentor may feel that the mentee is impeding their ability to attain set objectives. This can be counter-productive and makes the mentee lack a sense of ownership of the company, which is essential for LMD (Edwards et al, 2013: p6). Finally, where the mentee fails to progress as expected by the mentor, this may lead to frustration. On the other hand, the mentee may feel that he/she is not receiving needed guidance. Coaching has several advantages, including the ability of coaches to offer the employee their full attention and ability to address the most pressing organizational issues. Coaches will also help employees to articulate management/leadership development needs, becoming an unbiased guide in aiding the former understand aspects of their development that prevents achievement of leadership/management needs of the organization (Gold et al, 2010: p38). Coaching also helps to feed the management/leadership pipeline by improving performance and equipping potential leaders/management, particularly to deal with emerging needs of the organization. In addition, it also aids in refining organization culture by highlighting staff responsiveness and flexibility and equipping them with knowledge and skills to respond effectively to situations. However, coaching is more expensive than mentorship, which can be a problem for organizations that are facing financial cutbacks. Also, akin to mentorship, mismatching coaches and potential leaders/managers may be counter-productive, while conflicting goals between the coach and the organization may have a similar outcome (Gold et al, 2010: p39). Moreover, the coach may be knowledgeable but a poor teacher, which may lead to regression of leadership/management abilities. There are various challenges to implementing a mentoring program within the organization in LMD. Lack of planning may doom the program from its inception, especially if there is pressure from the organization to implement such a program. This can be overcome by creating a advance plan that is well defined in order to envision the mentorship program at different stages, as well as to see where potential challenges may arise (Fielden, 2011: p43). Mentorship programs may also lose organizational funding before they end because of non-existent measurements. Even where there is, a feeling that mentorship is successful, lack of defined measurements makes this fact difficult to prove. This can be solved through the definition of relevant and specific measurements during the planning stage, which will identify successes and failures. In addition, some selected mentors may not be willing to mentor, particularly where senior leaders and management are pressured to become mentors on the on the assumption that they have experience and skills needed. The solution for this is to qualify both mentee and mentor personnel prior to matching them by ensuring the program has a process of application, through which competency and skills assessment, as well as commitment levels, are determined (Fielden, 2011: p43). Conclusion In conclusion, leadership and management development involves the planned efforts to enhance the capabilities of learners to manage and lead organization. This involves activities of resource planning, organization, and coordination for management, as well as motivation and influencing employees for leaders. Organizations have different leadership/management needs; therefore, it is important to identify specific organizational needs in order to develop relevant leadership/management development strategies. This is based on conducting formal and informal assessments of prevailing knowledge, attitudes, and skills using such techniques as assessment and development centers and psychometric testing. Following the identification of needs, a strategy has to be formulated and implemented to develop leadership/management that is aligned with the organization’s needs through formal and informal strategies like coaching and mentorship respectively. References Ackerly, D. C., Sangvai, D. G., Udayakumar, K., Shah, B. R., Kalman, N. S., Cho, A. H., Schulman, K. A. & Dzau, V. J. (May 01, 2011). 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