Management and Leadership Issues - Essay Example

Management and Leadership Name Course Lecturer Date It is no doubt that effective management is a fundamental issue in an organizations well being. As noted by Hayes (2012) effective management can cause an organizations performance to increase by 23%. Therefore, it is every company’s goal to ensure that it has proper management and leadership .This is achieved by ensuring that the individuals in management have the required skills, training, experience and understand the vision and the mission of the organization in a diverse manner. Such managers are good in relating well with their employees as well as in planning and budgeting. In return, the organization, through its well able leadership is able to strategize ways of achieving its future goals. However, in effective management undermines the productivity and competitiveness of a company. Consequently the company’s sales, profits and even its going concern are affected. Notably, 56% of the companies that have gone into receivership in the UK are as a result of bad governance by their board of directors Hayes (2012. In effective management is as a result of inadequate management strategies of dealing with future changes in the economy, not involving the employees in decision making and inadequate developing of the labor force skills. This paper focuses on the management and leadership issues that the Vostok oil company is facing currently. The ways of developing its management have been addressed as well the SHRM strategies that the company has put in place. Discussed in depth as well are recommendations for an improved management and the company’s leadership. Less qualified managers is one of the key management issues that organizations face. This means that, the managers professional qualifications do not match with the managerial positions that they hold (Hanna et al 2011). During the selection and hiring process, improper screening of the applicants can result into the recruitment of managers that have the required skills for the vacant position. This is one of the challenges that Vostok Oil Company is facing. This might be as a result of the global inadequacy of individuals with managerial skills and qualifications in the oil and gas industries. Geoscientists, upstream project managers, petroleum engineers as well as financial managers are a challenge to find, especially those that have working experience. Notably, upon the hiring of such qualified managers, the company has a challenge in retaining them due to their high demands pay. In addition, such managers have employment chances in other sectors that are not as harsh and remote located such as the energy sector. Under-trained managers is the second management issue that corporate bodies face. This is more so for the small organizations who find it difficult to cater for their managers training costs (Orr et al, 2007). For Vostok oil, untrained managers are as a result of hiring managers that have inadequate working experience or have no working experience at all. This is because, the individual with the expertise required for operating in the energy sector is rare. In addition, the sector has been dominated by the older generation that has gone or is about to go to retirement. The board of directors therefore opts to hire the fresh graduates and allow them to acquire the skills required by experience. This not only opens a leeway for wastage of organizations resources but the emergence of a work force that is de motivated. This is because the managers have to learn the organizations objectives and their duties by informal means. Another leadership and management issue is inadequate application of skills. This is experienced where managers fail to put into practice what they have acquired in both their professional and job training. Notably, some managers are parochial goal setters other than being strategic. This means that, they are not concerned with research and prefer to have a status quo (Hayes 2012). In addition, such managers accept changes only when they are forced by circumstances and not because such challenges offer them opportunity for organizations growth. This is one of the challenges that are faced by Vostok Oil Company that has got some executives who are unable to plan for challenges that the business can face in future. This is risky for the business since by the virtue of its nature, it is likely to face changes in future due to possible mergers and joint ventures as well as technological changes that will affect the business operations. In such a case, the business might not be able to excel since it requires managers who are willing to scan the environment and develop strategies that will enable them operate with excellence even after such mergers. It is of importance to note that, much can be done by employers in order to improve an organizations management as well as its leadership and in return enhance the company’s performance. As discussed above, one of the challenges of the oil company is acquisition of qualified managers. It is in the company’s greatest interest therefore to ensure that the absorbed workforce is retained. Upon hiring, the mangers undergo a training program. This is important mostly for the employees who have no working experience. Through the training, they are equipped with the knowledge that they need in order to understand the business in which they will be operating. They are not only trained on management functions but with every other operations of the oil company. Through the training, the managers are made aware of the company’s objectives, policies mission and its vision. It is during the training that the newly acquired managers are made to understand on ways in which they can sharpen their leadership skills as well as their supervisory role. Training is equally important for the existing members of staff who have been promoted to managerial posts. This is because such individuals need a development program that will enable them shift from being technical to being strategic (Orr et al, 2007). Oil companies are diverse and in most cases face tough competition. It is due to this reason that Vostak oil has incorporated succession planning in its development program. This is achieved by prospecting the managers future needs such as more drilling expertise as well as enhanced supervisory roles and setting objectives on how such needs will be met .This in return will result into a leadership that is strong and more effective in performance of its duties. Strategic human resource management (SHRM) is a process where the functions of organizations strategic objectives are linked to the human resource functions. The process involves the creation of a company’s vision, mission, goals, and implementation of the set strategies as well as scanning of the business environment. SHRMs main role is to assist the managers in planning for the future needs of the company. This in return assists the company in maintaining a competitive advantage as well as enhancing the company’s innovation capability. Vostok oils objective is to be a leading oil company by maintaining the highest environmental, ethical and technical standards (Nordin, 2002). It is important to note that, exploration of oil and the production process have an impact on the environment. The magnitude of the impact however is dependent on the size of the project as well as the measures that the producing company has put in place in terms of preventing pollution control and mitigation. Vostok oil is working towards development of a management system, adopting of technology as well as engaging in business operations that minimize any negative effects on the environment. The company aims at employing SHRM in adopting an environmental management system that ensures safety and health not only to the surrounding environs but to the workers as well. This is because the employees and the community’s health are at risk of acquiring infectious diseases, illnesses that are waterborne as well as illnesses that are as a result of noise pollution the radiations from the machinery used at the wells. In order to achieve this, the oil company’s management plans to develop better strategies of accident preparedness (Visser et al, 1993). Such policies work towards ensuring that the workers and the environments well being is observed. This will call for development of environmental policies and their documentation to enable such policies to be recognized like the rest of the company policies. In addition, the company’s workers as well as the members of the public should be made aware of their existence by the management. This is after the management has assessed and evaluated the risks that the oil company and its environment are facing (Lerche et al, 1999). However, much of what is put in theory in trying to achieve an effective management is not practicable in the real business environment. In as much as management development is essential for the employee’s growth as well as the organizations performance, most managers when provided with opportunities to develop are resistant. This is as a result of fear as well as their inability to embrace change. They thus do not participate in the development programs in the name of insufficient time. In addition most managers find it hard to accept that they have shortcomings that require them to improve or acquire the required expertise. Another difference between theory and practice is that it is difficult for the employer to measure with certainty the managers needs. This poses a challenge when setting up the objectives of the development program (Hayes 2012). From the above discussion, it is clear that for an organization to be successful in its performance it requires a set of management and leadership that is not only qualified but dedicated to its work. The employers will attain such a work force by first ensuring that the managers who are absorbed in the company have the required expertise. This will be attained by being candid on the professional qualifications that a candidate should hold when seeking a managerial post. In addition, the managerial skills that such a candidate should have should also be certain. Such skills include; communication skills, a good team player, interpersonal skills among others (World Bank, 2008). Secondly, the management should adopt a leadership style that involves the rest of the staff in decision making. This will motivate the workers since they will be made to feel that they are part of the organization. As a result the company productivity level is enhances, thus increasing its sales and consequently its profits (Visser et al, 1993). Contributions from the staff who have worked for the oil company for a longer duration of time are vital since they have experience on what works and does not work for the company. In addition, the managements relations with the other members of the work force is enhance and thereby boosting inter personal relations in the company. The board of directors should set a culture that is performance-based for the managers of the company. This is attained by setting targets for them and issuing rewards or punishment upon their attainment or otherwise respectively. This targets however should be realistic and attainable and in line with the company’s objectives. By doing this, the managers will be compelled to apply their skills as well as conduct research on any environmental changes that are likely to take place currently and in the future. The managers will be in a position to plan ahead as well as put strategies in place to execute those plans. This application of their skills not only enhances the management’s performance but the manager’s experience as well. In conclusion, as organizations works towards ensuring that they meet their targets, maintain a competitive edge as well as expand their products line, they will be required to ensure that they have the proper management and leadership. As discussed above, effective management enhances the operations of the business while an effective one can result into the business experiencing huge labor turnover rates as well as high operational costs. It is clear that the continuity of a business is to some extent dependant on the type and style of management and leadership that it has adopted. However, today’s organizations are faced with managerial issues that require to be addressed in order for the business to meet its set objectives and targets. Having focused on an oil company, one of the major management issues that oil companies are faced with is inadequate skilled managers. This is due to the rare technical expertise that is required to work in such a company. By training and mentoring their less skilled managers, the oil company’s can attain the workforce that they require at managerial levels. However, such managers may resist such development programs due to the fear of failure thus posing a great challenge for such companies. Most of the management development takes place in informal set ups where they are not afraid of being evaluated for performance. Due to the nature of its operations, an oil company is compelled to set environmental policies that will protect both the safety of the workers and the general public. In order to achieve this, strategic human resource management is put in place. This will call for the organization to build a management system that has improved leadership skills that will enhance the company’s performance in the long run (Lerche, 1997). In addition the company will be in a position of facing the strong competition that is globally experienced References Hanna A., Sloman, C., Nell J (2011). 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Environmental management in oil and gas exploration and production, Oxford, Words and Publications. Read More