Personal Reflection
The managerial act is the pivotal component of a successful business process. Management is generically associated with leadership, but a distinction has to be made between the two. Management refers more to the allocation of resources, to the efficient operation of the machines, to the relationship with the various categories of stakeholders (customers, business partners, purveyors, shareowners and so on), the respect of the deadlines and so on. In other words, management encompasses the technical details and processes of organizational operations. Leadership on the other hand is a less generic concept and it refers primarily to the acts and behaviors by which organizational leaders interact with the employees -- how they communicate with them, how they motivate them or how they involve them in organizational decisions. At the Metro Bank subsidiary for instance, the more stringent need was for leadership, rather than management. The poor morale and performances of the people had to be addressed.
The decision making process is one field in which management and leadership become combined. The managerial side is focused on making the best decision based on processes of adequate information and the implementation of various business tools. Once again, the managerial side of decision making refers to the technicalities of the process. Subsequently, the leadership component of the decision making process is focused on the integration of the staff members within the decisive act.
Power plays a tremendous part in decision making in the meaning that he who holds the power has the ability to implement his decision as the future course of action to be used by the organization. If the leader is an autocratic one, the decision will generically fall on his hands alone and the employees will have to implement it as it comes. If on the other hand, the leader holding the power implements a participative leadership style, he stimulates the subalterns to become involved in the decision making process. The employees are stimulated to speak their minds and to state their opinions relative to the components of the decision. Comparative to this type of leadership, it should be noted that the power should still be held by one individual who has the ability and the right to select a decision based on the available input. In a context in which the decision could be vetoed by any of the group members, the decision making process would be less efficient as the identification of a solution to satisfy all group members is one of the most challenging tasks. Another style is that of transformational leaderships, which not only integrates the employees in decision making, but also stimulates them to implement change and to ask questions in order to themselves develop professionally.
The leadership style through which the organizational management integrates the staff members in the decision making process reveals two main benefits. First of all, it stimulates the motivation of the employees, who feel like important and valued organizational assets. This sense is increased by the managerial desire to pay attention to the opinions of the subalterns. Consequently, higher levels of employee satisfaction materialized in higher levels of employee performances, operational productivity and profitability, and also increased levels of employee loyalty to the employer, which materializes in lowered expenditures with turnover. Secondly, the company benefits from the vast expertise of the employees. As it is already recognized, the staff members are not valued exclusively for their ability to operate machineries, but mostly they are valued for their intellectual capital. This intellectual capital -- when put to good use -- can generate organizational value. Capitalizing on the knowledge and expertise of the employees by integrating them in decision making processes is indeed an example of intellectual capital put to good use.
Marsha Brown implemented a complex leadership style. She did not directly allow her subalterns to become involved in the decision making process, but she did make her own decisions based on employee demands. She first identified the importance of a strong organizational culture to value the employees and then implemented programs to support their professional development. All in all, she implemented the principles of transformational leadership and as such managed to support organizational change.
Once the decision is made, it is crucial for the managerial team to follow through. If they fail to do so, the organizational problems will only deepen. Brown stuck by her decision and implemented several strategic courses of action to reach the pre-established objectives. For instance, she:
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