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International Management Consulting - Literature review Example

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The paper "International Management Consulting" is an outstanding example of a management literature review. Most consultants are normally perceived to be uncouth and driven by the desire to hoodwink firms and obtain cash from services (s) rendered…
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International Management Consulting
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Extract of sample "International Management Consulting"

International Management Consulting Question Management consultancy should be forced to become a stronger profession. Reasons for pro and against consultancy as a profession Response to the question Introduction Most consultants are normally perceived to be uncouth and driven by the desire to hoodwink firms and obtain cash from services (s) rendered. They have been criticized on so many occasions for giving recommendation that don’t bear results to operations of many firms (Gross & Poor, 2008). On the other hand, management consultancy is perceived to be a profession that entails offering knowledge based services on management to clients. It involves a consultant identifying and investigating opportunities or problems, giving recommendation on actions to be executed as well as giving a helping hand in the implementation of the recommendations (Gross & Poor, 2008). However, by digressing a little from those convictions, there are several questions that have been left unanswered on whether management consultancy is a profession (Kipping & Wright, 2012). Resounding debates on management consultancy as a profession have reached stalemate yet no conclusive answer or consensus has been reached. It is an area of inquiry that has stagnated for a longer period of time. It is for this reason that this paper seeks to discuss whether management consultancy should become a stronger profession by incorporating its operations internationally (Madsen & Slåtten, 2013). Overview of theories on management consultancy There are several theories that attempt to illuminate the significant contribution of this concept all over the world. Hofstede &Minkov, M. (2010) explain that some of these theories are the Hofstede cultural dimension theory and Bourdieus theory through the notion of capital and habitus et cetera. Bourdieus vindications of capital and habitus conception dissect objectively and subjectively the thoughts and perception of the social reality as a set of connections and forces that are inculcated in individuals willingly or unwillingly (Bianchini, 2012). These thoughts on social reality entail numerous interpretation acts that compel individuals to come up with lines of action either jointly or individually. Hofstede (2001) clarifies that they are coined to illuminate and explain social inequality in the society today as well as how these inequalities are propagated. This theory helps to nutritiously elaborate the different trajectories of professions across the globe (Segre, 2014). The problems of consultancy According to Brad (2009), Changes in firms or institutions must have support of the employees and the executives for them to achieve the desired results. Workers are usually focused on their daily activities while departments in these firms are focused on the daily operations of the firm. Consultancy tends to compel individuals and departments to the daily operations for the good future thus conflict arises. Dan (2014) argues that consultants neglect working or integrating the existing members of the departments of the organizations in which changes are to be effected. Interestingly, the neglected employees of the various departments are expected to carry on with the implementation of the effected changes. There are more questions than answers how consultancy marries the new techniques with the old system and who supports these changes after the consultants are gone. In addition, firms usually withhold information from the consultants concerning the clients. Ian (2013) further asserts that when this information is not illuminated, the outcome may be skewed and this may be extremely detrimental to the operations of the company. The consultants may design a great business structure but the initial information system may consequently cause behavior to divert back to the old system of carrying out tasks. For the change initiatives to be realized, the changes in the behavior of the employees, system, and process should be incorporated. The company should also integrate the transition plan appropriately. For instant, in an IT firm, the department of the information system is perceived to be an obstacle to changes. Today there is a gap between the company and information system department. The department is usually impelled to minimize cost and optimize how the end users respond to the changes. The changes in computing have been rapidly increasing and become complex with time hence companies have no options but to design short term fixes to conform to these dynamics. It is for this reason that it becomes impossible to design a simple system that is capable of adapting to the changes in the business climate. The limitations of consultancy can be compounded further by too much fear and inadequate creativity (Wood, 2002). More questions have been raise weather the consultancy has readapted from the old structure that existed during the manufacturing age. During the named age, companies produced uniform products in large quantities and operated using an organizational structure that favored the system. However, the structures used during the manufacturing age have been rendered obsolete due to globalization, customization, and information age. Apparently, the consulting firms tend to suffer the similar problem. Besides, firms are normally clouded by how to find solutions to problems that they rarely observe these problems objectively and holistically. The other factor that elaborates what is wrong with consultancy is the inability of firms to choose between consultancy approach or sales/delivery perspective. Consultancy achieves desirable results in situations or environment that is not appropriately defined. On the other hand, sale/delivery technique thrives when the deliverables are appropriately defined and with little customization incorporated. Consultancy (management) as a type of profession Consultants are individuals that ascertain that things in the organization they offer their services to run appropriately and smoothly. Brad (2009) illustrates that they work in tandem with organizations or companies to identify the needs and problems of these firms in order to provide solutions to the problems or opportunities. Their roles are geared towards improving the performance of the organizations. It involves investigations of the problems, overview of the financial statements, providing alternatives and solutions, and giving recommendations through reports. In addition, they assist the management comprehend the implementation of the recommendation as well as make follow ups if the solutions provided are yielding fruits. Consultancy varies from one company to the other and it can be also be specific in instances such as healthcare. David (2009) strengthens the argument that firms that offer consultancy services consider all facets of business such as the marketing, IT, human resource, strategy, technology, legal, public relations, financial or investment, and social media. In most cases consultancy surfaces when institutions are in need of a piece of advice and guidance form an expert without recruiting individual(s). Characteristics of a stronger profession David (2009) points out that the basic elements of a profession are: services that are value oriented for the well being of the society; used of knowledge or information that are skillful and adaptable while services are being rendered; and the decision making and action made is autonomous based on the service given. The decisions made solely depend on an expert’s knowledge. Ian (2013) on the other hand elaborates that a profession encompasses the adherence to codes of conduct (ethics), altruism (devotion for interest not only to others but firms), responsibility of being accountable, trustworthy, and answerable, commitment, intellectual and theoretical (principles of actions deemed professional). Moreover, a profession offers a specialized service backed by knowledge and skills. Problems are dealt with on the intellectual surface and not on the physical aspects. The relationship between a practitioner and an employer or customer is highly confidential. Professions are usually accompanied by some level of obligations to the public since the knowledge is specialized on. Professions are circumscribed within the ethical codes on the relationship with the public, customers and other or similar professions. In addition, it is an occupation in social institutions that provides services to persons or community. Peck (2004) acknowledges that every profession focuses on a particular area of need. The theoretical framework highlighted above stipulates that profession entails making decisions that reflect on the information/knowledge available and should be backed by principles and theories. The other characteristic is that it is organized into association(s) that is professional and there is absolute control of the real work of the profession as well as what surrounds it. Furthermore, there are laid performance standards that have to be met for its admission and continuity especially to the higher levels. Learning institutions are established to not only prepare but also induce the profession. This system for the induction into professionalism promotes public confidence and trust. The practitioners also have the motivation and commitment to offering services in a competent manner (Kashima, 2003). Bianchini (2012) argues that there are different professions around the globe. However, the perceptions concerning these professions vary from one society to the other. There are those that are and have been perceived to be lucrative while others are looked down upon. This has consequently led to social stratification where professionals are classified either consciously or unconsciously by the society into social classes. Education system of various countries is the major contributing factor towards this fractional stratification of professions. Marx relates class inequality with production in that individuals controlling means of production are the elites in the ruling class. This cannot be farfetched. However, the society is so dynamic that some concepts tend to fade or become obsolete over a long period of time (Segre, 2014). Bourdieus suggests otherwise and instead argues that class inequality has a connection with both the symbolic and economic relation by using the notion of capital and habitus. These notions explain how persons synthesize objectives chances at success. Furthermore, these chances are the consequences of economic and cultural background (Madsen & Slåtten, 2013). He references capital as the quantity of products/material, symbolic and cultural goods that an individual posses. The perceptions on various professions as inculcated by the society have been symbolically and culturally created in a manner that guides our behavior and thoughts (Bianchini, 2012). The argument behind this is that cultural products such as the system of education, social values, classification methods and daily life activities create social order which is embedded into peoples’ minds. The resultant effect is the acceptance by individuals on these social differences and hierarchical differences thus unconsciously embracing exclusion (Segre, 2014). Aspects in profession that would help management consultancy become better As per the international guide to management consultancy (2003), consultancy should develop ethical codes of conduct that guides all the various types and ranges of consultancy. This will ensure that there is consistency and structures within which the profession looks up to. In addition, the services of consultancy should be married, synchronized and the different facets specialized to enhance public confidence in future. Just like the structures illuminated that professions are occupational that have a relationship with social institution and for one to be a professional he or she must meet the requisite requirements to be certified into the profession so does the need for consultancy to integrate this aspect. Learning institutions play key role in the induction of profession. For the situation to change, the profession must have the backing of higher learning institutions by developing a well crafted structure for both the induction and continuity into consultancy. Dan (2014) adds that the consultants have the mandate of forming professional associations where they have the control of their work and any issue or situation that revolves around the profession. The criteria for the indulgence into the admission and continuity into consultancy are also prudent into professionalizing it. Issues that might there be in achieving consultancy as a profession Consultancy is a wide and wild area of operation that synchronizing it to encompass all the areas such as strategy, human resource, marketing, and IT among others may prove futile. It is a much diversified field. This is despite the nimbus clouded arguments on management consultancy as a profession all over the world. This line of work has made some progress and big companies such as McKinsey have reaped huge margins of profits in the field. Therefore, there are several factors that have contributed to the success of international consultancy management. One of these factors is that clients are able to evaluate and validate on the internal decisions within the organization. Some specific problems within institutions can be best identified and evaluated from external source. Individuals within the system maybe so used to its operations that they end up lacking the sense of identifying factors that require intervention (Madsen & Slåtten, 2013). Brad (2009) vindicates that the growth of consultancy can be attributed to the ability of consultancy to create the demand in the market arena. Furthermore managers encounter new management techniques thus elevation the dependency on the need for consultancy services. In reference to occupational or profession associations mentioned earlier, Ian (2014) illuminates that these associations are ideal in aggravating for the improvement of conditions under which members discharge their duties. There are legal constraints that sometimes are impediments to consultancy. Occupational law dictates that there are rules and regulations on some specified fields and that services or tasks to be completed are embedded within particular professions. This is an area that requires an improvement in the consultancy field (Larner, 2005). The proponents of professionalizing management consultancy argue that they have a status that is roughly equivalent to disciplines such as doctors, lawyer, and numerous science and art professions. They claim that it can be viewed as a profession since professionals in an organizational setting exhibit high status among employees. This status is associated with certain features such as level or degree of education and individual expertise (Kipping & Wright, 2012). However, categorizing management consultancy as a profession tends to be a hard nut to crack since its status is weak. This is despite all the flouring of activities of management consultancy activities all over the globe. One of the factors that can be attributed to the above is that management consultancy lacks a clear defined widely and wildly accepted academic backing or knowledge (Gross & Poor, 2008). Most consultancy firms recruit individuals from various professions and train them for a shorter duration after which they graduate and become consultants. During these trainings, there are usually no uniform or standardized academic basics as well as well defined programs that are academic oriented. Professional disciplines such as law have meaning and codes of conduct which are taught in a formal educational setting. In addition, greater part of their work involves implementation of advice on temporary job employment. International guide to management consultancy (2003) explains that clients in most scenarios are less dependent on consultants as they have the knowledge and technical knowhow of finding solutions to their problems (OMahoney & Markham, 2013). Admittedly, professionals or other disciplines such as accountants and IT professionals tend to trap consultancy into their respective professions thus capable of rendering management consultancy obsolete. Besides, management consultants have not developed a culture of carrying out development research on their area of specialization (Pinault, 2009). Conclusion The field of consultancy has been expanding over the few decades and it has become very lucrative and attractive. Its practices vary in the international arena due to the differences that diferent countries present. However, on a standardized form there are problems that are associated with the use of consultancy or rather managing consultancy. The consesus on professionalism of this field has never been digressed into completion as sychronizing the field to align itself with the characteriztics of a profession tends to be difficult. Despite the glaring challenges of professionalization of consultancy, there are aspects in the management consultancy that would assist it to become better. Unfortunatley, this may be impeded by the issues that cartail consultancy. Reference List: Bianchini, J. A. (2012). Moving the equity agenda forward: Equity research, practice, and policy in science education. Dordrecht: Springer. Gross, A.C. & Poor, J. (2008). The Global Management Consulting Sector. Business Economic, 43, 59-68. Hofstede, G. & Minkov, M. (2010). Long-versus short-term orientation: new perspectives. Asia Pacific business review, 16, 493-504. Hofstede, G.H. (2001). Cultures Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations: SAGE Publications. Kashima, Y. &Kashima, E.S. (2003). Individualism, GNP, Climate, And Pronoun Drop Is Individualism Determined by Affluence and Climate, or Does Language Use Play a Role? Journal of cross-cultural psychology, 34, 125-134. Kipping, M. & Wright, C. (2012). Consultants In Context: Global Dominance, Societal Effect and the Capitalist System in The Oxford Handbook of Management Consultancy, eds. T. Clark and M. Kipping, Oxford: Oxford University Press, pp. 165-187. Larner, W. (2005). ‘Neoliberalism in (Regional) Theory and Practice: the Stronger Communities Action Fund in New Zealand’. Geographical Research (43) 1: 9–18. Madsen, D. & Slåtten, K. (2013). The Role of the Management Fashion Arena in the Cross-National Diffusion of Management Concepts: The Case of the Balanced Scorecard in the Scandinavian Countries. Administrative Sciences, 3, 110-142. McSweeney, B. (2002). Hofstede’s Model of National Cultural Differences and their Consequences: A Triumph of Faith - a Failure of Analysis. Human Relations, 55, 89-118. Minkov, M. & Hofstede, G. (2011). The evolution of Hofstedes doctrine.Cross Cultural Management: An International Journal, 18, 10-20. OMahoney, J. &Markham, C. (2013). Management Consulting, London: Oxford University Press. Peck, J. (2004). Geography and public policy: constructions of neoliberalism. Progress in Human Geography (28) 3:392–405. Pinault, L. (2009). Consulting Demons, New York: HarperCollins Segre, S. (2014). Contemporary sociological thinkers and theories. Farnham, Surrey : Ashgate The international guide to management consultancy (2003): The evolution, practice and structure of management consultancy worldwide. London: Oxford University Press. Wood, P. (2002). Consultancy and Innovation: The Business Service Revolution in Europe: Routledge. Brad, R., (2009) Twelve Reasons Consulting Engagements Can Fail. Retrieved on 24th March 2015 from: http://www.businessknowhow.com/homeoffice/gonewrong.htm Dan, N., (2014). Lessons in Consulting - The Good, Bad, and the Ugly. Retrieved on 24th March 2015 from: https://www.linkedin.com/pulse/20140502163033-13502-lessons-in-consulting-the-good-bad-and-the-ugly Ian, M., (2013). Why do consulting firms get such a bad rap? Retrieved on 24 March 2015 from: http://www.quora.com/Why-do-consulting-firms-get-such-a-bad-rap David, H, M., (2009). True Professionalism: The Courage To Care About Your Clients & Career.New York: The Free Press Read More
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