Skills for Business Leadership Executive

¶ … Skills for Business Leadership

Executive Memorandum dated July 24, 2013

This memorandum describes the significance of the project, the nature of the topic addressed and the importance of the project.

This chapter provides a review of the relevant peer-reviewed and scholarly literature concerning tools and techniques used to practitioners to understand how systems operate and what can be done to improve performance.

This chapter provides an in-depth analysis of the potential factors that could be contributing to the problems that are being experienced by the two struggling team leaders at Sapphire.

This chapter provides a summary of the research and salient recommendations for the team leaders and management at Sapphire Department Stores.

Sapphire Department Stores

"The leading name in quality for more than a century"

Memorandum

July 24, 2013

Senior Management Team

Manager, Business Unit No.

SUBJECT:

Improving relationships and managerial communications

Nature of the Topic

Major department store retailers such as Walmart and Target have been faced with some significant challenges in an increasingly competitive and globalized operating environment in recent years. At the same time, innovations in transportation and telecommunications have redefined the marketplace itself, and growing numbers of consumers are electing to do most of their department store purchases online. These trends have also been matched by a proliferation of social media networks such as MySpace and Facebook that are also redefining marketing best practices. In this environment, it is not surprising that some organizational leaders have failed to maintain pace with these changes, and this is the certainly the case with Sapphire department store's two troubled team leaders.

Significance of the Project. With more than 200 business units and a workforce of 6,500 from 40 different countries, Sapphire is well positioned to model the way in developing ways to improve employee relationships and managerial communications with a diverse workforce.

Nature of the Project. This study analyses the relationship and communications problems Sapphire has been experiencing in one business unit with 30 full- and part-time employees. Following a review of the relevant peer-reviewed and scholarly literature concerning these issues, the study presents a summary of the research and important findings in the conclusion.

Importance of the Project. A growing body of evidence confirms that motivated workers are vitally important and even critical for companies to achieve and sustain a competitive advantage in an increasingly globalized marketplace. As workers are increasingly involved in complex knowledge processing activities, they have developed new skill sets and management practices that defy traditional motivational approaches (Kumar 2011). In this regard, Jamrog (2006, p. 26) emphasizes that, "The combination of job dissatisfaction and demographic trends that predict labor shortages, skill deficits, and fewer workers has all the elements for dramatic changes in the way work is performed, who performs it and where, and the skill sets needed."

Literature Review

Tools and Techniques

Fishbone analysis. Fishbone diagrams (so termed because they resemble the skeleton of a fish -- see Figure 1 below) have been used to good effect wherein decision-makers must take into account a number of hypotheses and perform a number of tests in order to identify the problem (McGraw & Harbison 1999).

Figure 1. Representative Fishbone Diagram

Source: http://www.mycoted.com/mwiki/images/3/3b/Fishbone.gif

According to McGraw and Harbison (1999, p. 292), "When creating these diagrams, analysts should represent the more common hypotheses near the 'head; of the diagram, and uncommon or frequently selected hypotheses near the 'tail.'" to date, "fishbone analyses" have been used for a wide range of applications, including the evaluation of healthcare services and human resources management (Parayitam & Desai 2009).

Root cause. According to Middleton and Walker (2005, p. 37), a root cause analysis "is a systematic method of analysing a specific adverse event to determine what happened, why it happened and what can be done to prevent it from happening again." A root cause analysis is an essential tool for evaluating human resource issues and provides a measure of how well participants understand and comprehend their company's policies and procedures (Schafer 2012).

Skinner's behavior reinforcement theory

According to Todd and Morris (1999, p. 4), "Reinforcement theory is sometimes called 'behavior theory,' 'learning theory,' and 'operational behaviorism,' among other things. It has come to deal with a great deal more than a few experiments on dogs in a frame or rats in a box." During his experimentation, Skinner found that both positive and negative reinforcements can affect behavior, sometimes in truly powerful ways (Todd & Morris 1999). Reinforcement theory is especially salient with respect to employee motivation. In this regard, Luthans (2000) reports that, "A primary activity of any type of leader involves motivating and reinforcing others to encourage superior performance. Put in another way, theories of motivation encourage leaders to tie important outcomes to desired behaviors." Therefore, when team leaders apply reinforcement theory, it is with a singular goal in mind: "To sustain motivation, leaders must demonstrate to employees a close link between performance and rewards" (Luthans 2000, p. 31).

Belbin team roles

During a 7-year period, Belbin and his associates studied more than 120 management teams taking part in competitive business simulations (Biech 2001). An enormous amount of observational data was compiled during these simulations, including a wide range of recorded contributions from various team members (Biech 2001). Based on these observations, Belbin's researchers identified several team-role patterns. According to Biech (2001, p. 87) "It became obvious that each team member had a preferred or natural role, a secondary role (one that he or she was able to assume when necessary), and least-preferred/best-avoided roles." Belbin's original observational studies resulted in eight different team roles, and a ninth role was later identified as well (Biech 2001). All nine roles are regarded as being important to team performance and are described further in Table 1 below.

Table 1

Nine Team Roles Identified by Belbin

Role

Description

Plant

Devises creative solutions to problems.

Coordinator

Interprets objectives, encourages decisions, facilitates appropriate resources.

Resource investigator

Finds useful contacts and resources outside the team.

Monitor evaluator

Discerns opinions, makes insightful judgments.

Implementer

Translates ideas into action and organizes the process.

Team worker

Resolves disagreements; concentrates on diplomacy.

Completer-finisher

Fixes errors; ensures work is complete; meets deadlines.

Specialist

Offers knowledge or skills that others may not have.

Shaper

Challenges others to overcome difficulties.

Source: Adapted from Biech (2001)

The nine team roles described in Table 1 are not necessarily static, and team members may perform different roles at different times. Developing balanced roles within a team serves three valuable purposes:

1. It increases the likelihood of positive contributions from individual members,

2. It decreases the likelihood of destructive conflict among members, and

3. It enhances the team's ability to adapt to changing and unpredictable circumstances (Biech 2001).

Cornell's talent management matrix

The talent management matrix developed by Cornell is set forth in Table 2 below.

Table 2

Cornell's talent management matrix

May be new in job. May be in the wrong job/wrong manager.

Action: Give time for development or needs intervention.

Valued talent, capacity for advancement after further potential has been realized.

Action: Look for opportunities for growth and new experiences.

Capacity for immediate advancement. Potential for senior succession.

Action: Look for opportunities to promote. Give top level assignments. Partner with executives. Reward and recognize.

May be new in job or organization. May have lost pace with the changes in the organization.

Action: Continue orientation. Give time for development. Challenge with clear expectations.

Steady and dependable performers, but capable of more. May not understand changes in the organization.

Action: Challenge, allow opportunities for growth and new experiences.

Capacity for immediate, one level advancement. Consider best track -- Individual contributor, project manager, or general manager.

Action: Look for opportunities to expand role and challenge, reward and recognize. Engage in decision making.

Has reached job potential and is underperforming.

Action: Manage performance, set clear improvement plan, or exit organization.

Steady and dependable and have reached career potential.

Action: Engage, challenge, focus and motivate.

Excellent performer; has reached career potential.

Action: Engage in training others. Challenge, reward and recognize.

Source: Cornell Talent Management Mix (2013) at https://www.hr.cornell.edu/life / career/talent_management_matrix.pdf

Continuing professional development by the Chartered Institute of Personnel and Development

The Chartered Institute of Personnel and Development (CIPD) has more than 135,000 members and is the world's largest chartered human resource and development professional organization (CIPD 2013). The human resources qualifications offered by CIPD are provided in the United Kingdom, Ireland and internationally by universities, colleges and training providers (CIPD 2013). More than 12,000 professionals complete CIPD programs each year to develop their knowledge of human resources best practices (CIPD 2013). In addition, CIPD offers continuing education courses in Business, Leadership and Management Skills as well as Personal Effectiveness and Behavioral Skills (CIPD 2013).

Participative Management Technique

As the term implies, participative management provides employees with the opportunity to take part in the management process (Tsiganou 1999). Although participative management techniques have been used in the United States, Japan, Sweden and Norway with positive results in the past, Tsiganou (1999, p. 123) emphasize that, "Participation schemes in the United States as elsewhere have been caught in the middle of a power struggle and have not taken place without conflict." Nevertheless, the research to date indicates that participative management techniques can provide a major return on the investment. According to Angermeier, Dunford and Boss (2009, p. 127), "Employee perceptions of the extent to which their work climate is participative rather than authoritarian have important implications for critical work attitudes and behavior."

The research to date has confirmed that employees in highly participative work environments outperformed their counterparts in nonparticipative management organizations (Angermeier et al. 2009). For example, a study by Angermeier and his associates found that employees working in participative management settings provided 14% better customer service, committed 26% fewer clinical errors, demonstrated 79% lower burnout, and were 61% less likely to leave the organization than employees in more authoritarian work environment. According to Angermeier et al. (2009, p. 128), "These findings suggest that participative management initiatives have a significant impact on the commitment and productivity of individual employees."

Hawthorne effect

The "Hawthorne effect" is a principle of management that holds that over time, individuals tend to improve their performance when they are observed (Morgan 2009). In this regared, Maccoby (1999, p. 49) advises that, "Managers are taught that this effect is caused by paying attention to workers and listening to their complaints. The theory is that when managers care about workers, attitudes improve and output increases." According to Morgan (2009, p. 162), "Some have questioned the 'Hawthorne effect'; [however], being under observation from colleagues could trigger reflection and lead to some benefits." These observations suggest that the "Hawthorne effect" could be used to its best effect by employing it as an augment to feedback from first-line managers and continuing professional educational and development opportunities (Morgan 2009). This assertion is congruent with the observation by Maccoby (1999, p. 51) that, "Workers are motivated not only by money, but also by a supportive environment. First-line supervisors should be trained to be human relations experts."

Flextime method

Flexible time or "flextime" is currently the most popular flexible work arrangement in the world (Avery & Zabel 2001). An advantage of providing flextime alternatives for employees is that it provides an increase in the amount of family and leisure available to workers. According to Avery and Zabel (2001, p. 39), "[Flextime] gives individuals the opportunity to take care of errands, appointments, and other personal tasks. Employees who are continuing their education through courses and other opportunities can find flextime helpful." In addition, flextime is especially valued by parents with children who are attending school (Avery & Zabel 2001). Interestingly, men appear to prefer flextime for a number of reasons, including providing some personal control over schedules and more time with family without a concomitant reduction in earnings (Avery & Zabel 2001). Moreover, Avery and Zabel (2001, p. 39) emphasize that, "Flextime can also be a morale booster to employees. It gives employees autonomy in selecting their own work schedules and makes employees responsible for getting work done within their own work schedules. Flextime emphasizes efficiency and the completion of projects."

Employee suggestion system

Everyone wants to have their voice heard, and an employee suggestion system provides this opportunity. In this regard, Nelson (2002, p. 12) points out that, "Employees need to know that their suggestions are taken seriously and that they can make a big difference. By carefully reviewing employee suggestions, and quickly implementing those that have merit, management sends a message that employees are valued." Despite the potential cost savings, innovation and improved morale that an employee suggestion program can provide, some companies are reluctant to implement employee suggestion programs because of concerns that the costs associated with the program will outweigh the potential benefits (Nelson 2002). According to Mishra (1999, p. 587), though, "As concern about ways to increase employee participation has grown, many organizations, both service and manufacturing, have turned to an employee suggestion program (ESP) as a key part of their management approach."

Although policies and procedures vary, employee suggestion programs typically solicit ideas and innovations from individual workers or groups of employees (Mishra 1999). With respect to the goal of such programs, Mishra (1999, p. 588) advises that, "It is hoped that employee suggestions will yield cost savings, productivity gains, and higher overall profits, while rewarding participants with monetary compensation, recognition, and the satisfaction of seeing their ideas adopted."

Analysis and Discussion

The foregoing descriptions of the various tools and techniques that are available to the two struggling team leaders at Sapphire makes it clear that there are resources available that can help these leaders, and some are more cost effective than others. For instance, the Hawthorne effect is essentially free, but the Skinner-based incentives that are part of an effective employee suggestion program are not and can even range into the millions of dollars for larger corporations or government organizations, including the military. Between these two extremes exists a continuum of motivational and management improvement regimens that can be used to help these two team leaders become more effective in their jobs. Indeed, it is entirely possible, and even likely, that many of the communication and leadership problems that have been characterized these two low-performing teams relates to inexperience or a lack of training, or both, on the part of the two leaders. Perhaps they were thrust into their current leadership positions and have lingered there while their team members contemplate greener pastures elsewhere. In these cases, Belbin would recommend an analysis of the preferred roles of the team members to identify optimal organizational structures. In these two cases, a superior alternative might be the reassignment of the current team leaders to an alternative position within the team and new leaders assigned.

Certainly, it is always possible to improve the two team leaders' performance by "throwing money at the problem" and sending them both to an unending series of motivational seminars, night classes in management theory and workshops for the leadership impaired, or even the Chartered Institute of Personnel and Development for that matter. Over time, these steps will likely have a cumulative effect on improving the two leaders' performance. Many organizations, though, do not enjoy these levels of resources for addressing team leadership issues of this nature, and a more pragmatic approach may be required. In this regard, Skinner would recommend a negative reinforcement of some sort for both teams until they resolved their communication and performance issues.

Irrespective of the leadership style or motivational approach that is used to help improve performance by the struggling team leaders at Sapphire, there are some known factors that have been shown to consistently influence team leadership effectiveness including the following:

1. Work values between leaders and followers has been found to mediate between leadership and leadership effectiveness;

2. There is evidence that high occupational self-efficacy on the followers' side positively influences the interrelation between leadership and leadership effectiveness; and,

3. Leadership positively affects followers' emotional state (Wolfram & Mohr 2009).

Taken together, the problems that are being experienced by the two struggling team leaders at Sapphire are not unique, but they are important and they detract from the achievement of the company's organizational goals.

Conclusions and Recommendations

Controlling and the Continuity and Success of the Recommended Tools. The two team leaders who are experiencing problems in communicating with their teams fall within the scope of Cornell's talent management matrix as being, "Steady and dependable performers, but capable of more. May not understand changes in the organization." The recommended action for this type of individual is to "Challenge, allow opportunities for growth and new experiences." Clearly, these team leaders are in need of additional training and educational offerings to improve their interpersonal communications skills and to reduce the rates of absenteeism and motivate their team members. For this purpose, the continuing educational offerings from the Chartered Institute of Personnel and Development would be most appropriate. In addition, a root cause analysis should be performed for the two troubled teams to ensure that there are not other factors involved in their poor performances and high levels of absenteeism. In addition, the Hawthorne Effect will likely incentivise team members to improve their performance and cooperation. Likewise, team leaders can identify the preferred team roles of their members by using Belbin's framework, and team members should be educated concerning this approach to ensure their buy-in as much as possible.