Theory on Leadership and Management - Assignment Example

Topic: Theory on Leadership Management Name: Institution: Tutor: Registration Number: Date of Submission: 1. Introduction There has been the need to determine whether people are able to fit into a particular culture of an organization or whether they need to change their work style or leadership to enable the desired cultural transition. These uncertainties have been achieved through the functions of competing values framework and the 4+2 formula. By using CVF, it is possible to organize and create new ideas and human practices as well as a detailed view of the organizations, their outcomes and leadership (Quinn, Faerman, Thompson, McGrath, St Clair, 2011). The CVF can be used for a number of aspects of organization such as personal styles, while the same framework can be used to assess communication, leadership, culture within an organization, major competencies, decision making, determination of financial performance and other functions. An individual can use the language and ideas of competing values to work with others on matters at a number of levels. Organizations that have implemented these values have been able to integrate their functions around common language and framework (Owens and Hekman, 2012). The framework provides distinct tensions and contradictions that are faced by organizations and their leaders in their attempt to navigate complex issues within their organizations. Future successes in business operations are considered to be dependent on the accuracy of models that are currently being used in the market. The understanding of the functions of CFV can be used in a number of levels within an organization to develop strong business strategies for managing business operations. There has also been the argument that there are certain business practices that are most important in distinguishing business winners and losers. It is also argued that there are 8 strategies that need to be implemented by winning companies if they intend to perform well in their business endeavors. These practices are explained by the 4+2 approach. The understanding of these two strategies can be made possible by comparing the ideas illustrated in them. This paper provides a comparison of ideas of the two methods of explaining an effective organization as well as the similarities that exist between them. 2. Differences between Competing Values Program and the 4+2 formula There are many competing opposites that exist between Competing Values Program and the 4+ 2 formula. For instance, the human relations quadrant of CVP puts more emphasis on flexibility and focusing on internal activities of an organization. On the other hand, the 4+ 2 formula puts more emphasis on building strategies based on clear values proposition for the customer and developing it from the outside in. It recommends that strategies should be developed based on customers’ demands, expectations of partners and investors and making clear communication of the strategy within the organization among customers and stakeholders who exist outside the company. Furthermore, the Competing Values Program recommends that creation of value in an organization can be achieved by focusing on expanding options, creation of new ideas, making self-organizations and being adaptable in order to cope with the challenges of the 21st century. The focus is put on activities that are outside the organization by identifying trends, finding innovative ideas and competing for a greater share of the market and growth. On the other hand the 4+ 2 formula requires that value creation should be done by putting more emphasis on internal capability or systems, culture, reduction of costs and making continuous improvements and human development. The other distinction between CVP and the 4+2 formula is that CVP differentiates an orientation toward a focus on internal capability and the integration and unity of processes from focus on external opportunities and differentiation from competition with outsiders on the one hand. On the other hand, the 4+2 formula require that strategy should be built around values that are satisfying to customers and in ways that ensures competition from external companies is managed. It requires that strategy should be built on the ideas of external stakeholders such as customers and investors and puts more emphasis on communicating strategies within the organization and external stakeholders. 2.1. Similarities between the four quadrants of CVF and the 4+2 formula The Competing Values Model has two axes that determine the quadrants. Each quadrant explains one of the four theories of managing an organization. In the Human Relations quadrant, the effectiveness criterion that is emphasized is cohesion and morale. This suggests that values should be placed on human resources and training. This quadrant recommends that the mentor should be helpful and approachable and should involve the engagement of the people by providing empathetic orientation. This is similar to the argument of the 4+2 formula that requires that performance-based culture should be developed by inspiring all employees to perform better and provide rewards for those who perform well and ensuring team work is practiced within the organization. It also requires that a working environment should be created that is satisfying to all employees and company rules should be favorable to employees. Moving horizontally to human relations quadrant is the open systems quadrant that stresses adaptability, readiness, growth, acquisition of resources and seeking of external support as the main factors of success. This quadrant requires that the organization should be task-oriented and focused on work and motivation of members to ensure production is increased in order to attain the stated goals and objectives. This is similar to the third requirement of the 4+2 formula which requires that performance based culture should be implemented in any organization. In this requirement, the employer is expected to create an inspiration for all employees to perform well and provide rewards and praise those who have performed well. This inspires them to work better in their future operations as well as enhancing their loyalty to the organization. It also recommends that the working environment should be friendly and satisfying to all employees. In the lower right side there is the rational goal quadrant that puts more emphasis on criteria such as creation of the right plans, setting goals and ensuring high productivity and efficiency. This quadrant requires that the producer should be task-oriented and focused on producing the right results and motivates members to increase production and achieve the set goals. The director should play the role of planning and setting goals and objectives as well as establishing clear expectations. This has the same implications with the first step of the 4+2 formula which requires that the strategy of an organization should be made clear and values should be proposed to customers. It also requires that leadership should be tuned towards coping with challenges in the market place and the strategy should be based upon customers, partners and investors who should be allowed to make their opinions known and if possible implemented. In the lower left side of the framework is the internal process quadrant. This quadrant stresses on managing information and communication, ensuring stability and control. The coordinator maintains structure, schedules, and coordinates efforts of staff members to logistical and housekeeping matters. This is similar to the fourth requirement of the 4+2 formula which requires that exchange of information should be allowed to enable control of any flaw in operations within the organization. It also requires that strategies should be communicated within the organization among customers and external stakeholders. 2.2. Comment on the areas where these theories can be applied to assist organizations There are many areas of management where the theories of Competing Values Program and the 4+ 2 formula can be applied. This involve areas of management where change need to be effected. Hundreds of organizations need to use these frameworks to diagnose and implement culture change, establish strategies that ensure competitiveness, motivate employees, enable organizational development and change, apply quality procedures, and develop high capacity leaders and so on. The use of these frameworks to assist in implementing change initiatives has resulted into other dimensions. These dimensions are important in bringing improvement in performance and creation of value. The continuum from left to right quadrant of the framework puts more emphasis on innovation, uniqueness, continuous transformation from incremental towards ensuring efficiency, predictability and continuity. This continuum creates a distinction between a focus on new from a focus on the better. A number of organizations have managed to create value by focusing basically on new product development and creation of niches wile other organizations such as Wal-Mart have put focus on rationalizing processes and enhancing the ability of existing services and delivery systems. The continuum that stretches from the lower right quadrant of the CVP to the upper left quadrant separates the emphasis on fast, short-term changes from emphasis on long-term developmental sustained changes in the upper left. The ‘Fast Company Magazine’ has been able to apply this strategy by reducing cycle times and production of value in the fast time frames. The Competing Values Program provides a guide on how quickly we need to act to create values well as the initiative that we need to take to create value. The speed of creation of values separates rapid from short-term value creation while the magnitude of creating value provides a distinction between dramatic transformations from incremental improvement. The 4+2 formula is also sound in ensuring clear communication of organizational strategy among customers to ensure their expectations are exceeded. It also ensures that performance based culture is developed by inspiring all employees to do their best. Organizations that have employees who are not focused on producing high results in their areas of operation can benefit from this management theory by implementing it in their daily management practices. This formula is also sound in ensuring an organization is fast and flat and ensures decisions are made at the right time to avoid bureaucratic structures and behaviors which can result into a lagging business activity of an organization. The implementation of the 4+2 formula also ensures an organization makes good use of its resources by putting the best qualified employees in the frontline places of production such as areas where high profitability is expected. This results into overall improvement of profitability o f the entire organization. 3. The functions of articles on providing informative details to the comprehensive model of leadership provided in Mastrangelo, A. Eddy, E. and Lorenzet, S. 2004, ‘The importance of personal and professional leadership’ The Leadership and Organization Development Journal, Vol 25, No 5, pp435-451 According to Angelo Mastrangelo, personal behaviors of leaders in performing the functions of professional leadership such as demonstration of expertise, building of trust, caring for people and sharing with them and is important in ensuring the success of any organization. In addition, success of an organization is dependent on effective leadership. Effective leaders ensure they engage in professional leadership behaviors such as setting missions, creation of a process accomplishing goals and implementation of personal leadership behaviors such as trust, care for people and behaving in a moral manner. There are many writers whose writings support this illustration. For instance, according to (George, McLean and Mayer, 2007) in their book, Discovering Your Authentic Leadership’, they remind the readers that “Authentic leaders show a passion for purpose, practice their values continuously as well as provide leadership from their heads. They ensure long-term and meaningful relationships are implemented to get the desired results. They have the knowledge of who they are. These authors also conducted a sty on authentic leadership and found that the journey towards authentic leadership is dependent on understanding of the story of an individual’s life. These include getting through experiences and using these experiences to get a better understanding of who they were at their core. They also emphasize those leaders who are authentic were more likely to become effective leaders. According to these authors, authentic leaders must have certain common themes. These include learning fro one’s life experience, understanding authentic self, the practice of knowing an individual’s authentic self, practicing the values and principles, balancing intrinsic and extrinsic motivations, building teams and integrating an individual’s life by staying grounded. It also involved empowering individuals to become leaders. The other writers whose work contributed to understanding the model leadership provided by Mastrangelo is (Drucker, 1994) in his book, ‘The Theory of the Business’. In this book he argues that what underlies the present malaise in current organizations worldwide is that they no longer implement the theory of business. He observes that companies that were initially successful in their operations found themselves stagnating and frustrated in trouble and usually in crisis. He explains that the main cause of almost all of these crises was not as a result of things that were being done poorly and not even as a result of wrong things that were being done, but as in most cases the right things were being done but without fruits. He explains that this paradox can be accounted for by the fact that the assumption on which the organization is built no longer functions. These include the assumptions that create the right shapes for the organization’s behavior, dictate the decisions about what needs to be done and what needs not to be done and create a definition of what the organization regards as meaningful results. These assumptions are what he refers to as the theory of business. These assumptions are about dynamics in technology, about the company’s strengths and weaknesses and what the company gets paid for He recommends that changes should be considered as powerful tools in the ways in which entrepreneurs and entrepreneurial managers think about the success of their business. He also states that preconception of new business as a new theory as a set of assumptions about the future is a significant tool for new and small business planning environment. According to (Ofek and Wathieu,2010) in their book ‘Trends that could shake up your business’ Harvard Business Review, they explain that trends such as those that are regarded peripheral, result into a change in consumer aspirations and attitudes in ways that are not obvious. For instance, it observes that the digital generation has resulted into offering of products that result into instant gratification and enabling multitasking activities. This iis particularly important for a company that sells sports equipment by providing strategies for addressing the effects of trends. They provide guidelines for infusing aspects of trends into category augmentation of traditional products and combines aspects of trends with characteristics of the category to produce radical offerings that result into transcendence of the category. The other strategy that is used to counteract negative effects of trend is development of products and services that retains the values of the category. According to (Goffee and Jones, 2000) in their book ‘Why Should Anyone be Led by You?’ Harvard Business Review, they explain what it takes to be an authentic leader by stressing that bureaucracy is not leadership. They explain that authentic leaders are confident in what they stand for and inspire people to attain extraordinary results. They also argue that great leaders do not only focus on development of character traits but they are authentic by employing individual strengths that engage the hearts of their followers, their minds and souls. They also ensure they are themselves despite the possibility of altering their behaviors to respond to the changing contexts. They also explain how to hone and deploy their specific leadership assets while managing the existing tension at the heart of successful leadership: sowing emotion and withholding it, getting closer to subjects and also allowing them to make their own decisions and maintaining one’s individualism. The book also provides an explanation of how leaders can be attuned to the needs and expectations of their subjects. According to (Owens and Hekman, 2012) in their journal ‘Modeling how to grow: an inductive examination of humble leader behaviors, contingencies, and outcomes’ Academy of Management Journal, they explain that in spite of the argument that humility is significant in organizational effectiveness, there is little knowledge regarding its construct and how some leaders behave humbly while others do not, the effects of these behaviors and factors that moderate the effectiveness of these behaviors. They developed a model of behaviors, outcomes and contingencies of humble leadership by describing humility as a method of leadership where followers are modeled to grow and produce positive results by making them believe that their individual developmental journeys and feelings of uncertainty are allowed at the place of work. They provide a discussion of the roles of emergent humility in leadership models addresses a number of leadership issues such as organizational development and change, the evolution of leadership subjects relations and new paths that engages followers and inclusion of top-down and bottom-up-organizing. References Drucker, P. 1994 ‘The Theory of the Business’ Harvard Business Review, September-October, pp32-41 George, B. Sims, P. McLean, A. and Mayer, D. 2007, ‘Discovering Your Authentic Leadership’ Harvard Business Review, February, pp129-138 Goffee, R. and Jones, G. 2000, ‘Why Should Anyone be Led by You?’ Harvard Business Review, September, pp63-70 Ofek, E. and Wathieu,L. 2010 ‘Trends that could shake up your business’ Harvard Business Review, August, pp125-131 Mastrangelo, A. Eddy, E. and Lorenzet, S. 2004, ‘The importance of personal and professional leadership’ The Leadership and Organization Development Journal, Vol 25, No 5, pp435-451: Owens, B. & Hekman, D. 2012, ‘Modeling how to grow: an inductive examination of humble leader behaviors, contingencies, and outcomes’ Academy of Management Journal, 2012, Vol. 55, No. 4, 787-818 Quinn, R. Faerman, S. Thompson, M. McGrath, M. St Clair, L. 2011, Becoming a Master Manager, Fifth Edition, John Wiley & Sons, Hoboken NJ (ISBN 978-0-470-28466-7) Read More