Management and Leadership
Part 1: Theory and reviewSection 1: Introduction
There are two major views regarding contemporary management and leadership. The first is the personality perspective. In this perspective, the major influence of the leader is shaped by his power to influence other individuals towards achieving some goals. Therefore, the leader uses special traits that serve as bait and amalgamation for these individuals to work towards some common objectives. The other view is the behavioral aspect. In this case, the leader selects some tools that are directive, participative, and achievement oriented. The basis for selecting these tools is the needs of the organization. By applying these tools, the leader or manager maximizes result from his organization.Section 2: Contemporary leadership versus management
The manager is responsible for the drive and smooth operations. With top management, there is efficiency and also effective management in the organization. In contemporary management, the leader is responsible for the drive, ideas and motivation in order to achieve the goals of his organization. The goal for such a manager is to provide order and also consistency. In addition, the manager plays the roles of budgeting, problem solving, planning and controlling. On the other hand, the leader is responsible for providing the manager with the influence on how to direct the entire organization.
An effective leader does charm her manager towards her manner of thinking and the entire grand scheme. Therefore, the leader serves as the visionary for her manager and the entire organization. Instead of maintaining consistency, the leader creates change and moves the entire organization. The leader seeks both adaptive and constructive change in an organization. In contrast, the manager seeks order and also stability in the organization. However, both functions are intertwined for the wellbeing and success in an organization. They improve the competitiveness of the organization if they are executed successfully.Section 3: Major issues in contemporary leadership and management
A major issue in contemporary management is the adoption of internet based technologies. Starting off with email and file transfers, corporate leaders have had to assess the impact of these technologies on their organizations. These changes are made in contemporary leadership in order to promote the competitiveness of the organizations concerned. One example of these changes and their impacts is the emergence and the resultant application of e-commerce. Leaders in such organizations had to change the nature of their meetings by conducting them online. The emergent business model in this conceptual management style is called the click and brick model. Some managers had to be dropped out of organizations due to their failure to match with the skill requirements in the highly advanced technological environment.
The other major issue is contemporary management is the social impact of reengineering economics. There has been a large number of displaced professionals from their positions. The main contributor to this phenomenon is downsizing. Some managers and leaders have had to reduce their employees’ numbers in the highly competitive and also efficient operating environment. On the other hand, this displacement of professionals has been occasioned by low wages and reduced benefits. Managers have had to reduce wages due to the option of relatively cheap technology, which may be substituted, for this labor.
As a result of contemporary management efforts in ensuring efficiency in organizations, the affected employees have had to reinvent themselves in order to rescue their careers. This is because these managers have the option of selecting highly qualified young generation against experienced but unqualified aged employees. Contemporary management has guidelines for these managers. Leaders and managers are advised to apply modern recruitment techniques such as multistage interviews. With these initiatives, such managers will save their organizations from the inefficiency associated with mismatch between employees and skills.
The third issue in contemporary management is globalization in service outsourcing. In contemporary leadership and management, there are trends of outsourcing some services on a global platform. Managers and leaders have realized that there is a burden in providing costly employee benefits to these employees. With the globalization of some services that would have been provided by full time employees, managers are saving on funds that would have been compensated to full time members of staff .
Another reason for this outsourcing is that it allows for these services to be awarded to highly efficient service providers. A major shortcoming of this contemporary management issue is that it leads to threats of lawsuits and severance payments. Outsourcing proves to be a central management tool that shapes the reengineering in business. It improves competitiveness of companies since it gives them an opportunity to import services at a relatively cheap cost. This conceptual management concept breeds self sufficient organizations which are focused on their core competencies.Section 4: Contemporary theories
There are several contemporary theories in this field. The first theory is the green fiber by Peter F. Drucker. This author has written extensively on management, organizations and conceptual their frameworks. He proposes that principal concepts have to be applied in a realistic manner. Paradigms in conceptual management must be applied in order to meet these requirements. The main ideas of a realistic management concept shape the entire success and implication of the entire process.
The main argument by Drucker is that an organization should have the right organizational structure and the right manner of managing its employees. He argues that these concepts must be taken beyond businesses and applied across organizations in order to promote the progress of entire societies. A critical analysis of this information is that the realistic application will determine the success of the organization. However, the ‘right structure’ is suggestive of a fixed structure in the organization. This implies that there are chances of rigidity in such a scenario.
Another argument is that an organization should be held as a means of assisting individuals concerned with the organization. These individuals should benefit from the joint human activity. Therefore, managers must design a structure that corresponds to their tasks, concrete condition and also concrete time. In adopting a specific organizational structure, it is crucial to have information on the specific advantages and also the limits of specific organizational structures. Its importance is that it will ensure a proper match of the organizational goals with the organizational structure.
With regard to group dynamics, different groups of workers should be treated as partners in the organization. The organization must consider what their employees want. The design of the structure should include these group dynamics and incorporate them into the structure. This will ensure that it adds value to all groups in the organization. In light of technological advancement, organizations have to note the importance of adjusting the structure to inculcate mental productivity in contrast to labor productivity witnessed in the past.
The first section of this critical analysis is based on the argument that the organization should assist the individuals. Despite this factor being a major goal, its fulfillment may frustrate the efforts of the organization. Limiting the organizational structure to the goals may hinder the potential exploitation of the power of the organization. However, matching the group dynamics with the organizational structure implies that there will be coordination and hence success in the organization.
The second theory is the Deming’s 14 points for management focus. This theory outlines management quality. From his concept, managers should introduce an organizational culture where quality is the main concern of all organizational stakeholders. In this case, processes have to be improved to be aligned with this objective and mission. Deming’s argument is that managers should note that their employees may be inhibited from producing some high quality products due to the processes that are developed, implemented and also controlled by the management. For continuous quality improvement, all the processes within the organization must be improved.
Evaluated in the concept of contemporary management, quality improvement should not be left to a single department. This philosophy is customer driven; hence it enhances achieving organizational goals with customer expectations as the top priority. A critical analysis of Deming’s 14 points for management is that these points are effective in contemporary management. Quality is an important aspect of ensuring success and long term sustainability of products. Therefore, management must ensure that they offer quality services in all their business lines.
Another argument is based on the systems approach. It is based on the counter arguments against the scientific and human relations approach. This theory bases its argument on the notion that an organization is a small part of a large system. In order for the management to understand the entire system, it is important that this management appreciates the role played by each system. Skills and also the roles of workers are altered whenever there is a change of the method applied in production.
The systems approach presents a criticism to the scientific approach. Since the scientific approach concentrates on job design, there is a challenge in that it denied workers the expression of their individuality. Instead, it turns them into automatons, only fulfilling the roles of their seniors. However, the systems approach calls for a deep insight into each element. As a result, the interactions between supervisors and their employees have to be analyzed deeply, and the whole organizational structure formed from these reactions.
The other counter argument of this theory is directed towards the human relations approach. The findings are that improvements in the workplace made employees feel valued, hence they improved their productivity. However, there is a counter argument against this theory in that it is highly impersonal. To add onto this, the theory implies that people only have monetary needs in an organization. However, there are other social needs that have to be met in the workplace such as family welfare.
The contingency perspective is another approach on contemporary management. In this case, importance is stressed that there is no single way to manage an organization. This approach lays its foundation on the notion that each managerial issue is uniquely different from the others. Therefore, it has its set of challenges, and internal and external factors. With this knowledge, the management must be aware of a number of contingencies. They include technological changes, demographic shifts, economic conditions and also the cultural factors. The final concern for managers is legislation. Flexibility is necessary to respond to these shocks, and it shapes the success of organizations with this approach.
Part BSection one: Introduction
The company that will be used for this analysis is Virgin Atlantic. This is an airline company which is owned majorly by Sir Richard Branson. Its headquarters is based in West Sussex, England. Since its establishment in 1984, this company has grown to operate in North America, Africa, Australia, Asia and Middle East. As of 2012, this airline company carried 5.4 million passengers. In 2013, it recorded revenue of over £ 2.9 billion. Since contemporary leadership is based on locality and culture, Virgin Atlantic appears to have an appetite for charisma in its leaders. This can be seen from its CEO Craig Kreeger. This CEO has made efforts in expansion and strategic deals and partnership with leading companies. This is the charisma that has paid off.
Virgin Atlantic has a fleet size of 39 while flying to over 34 destinations since 1984. The CEO is credited for this growth and the future plans that he has for Virgin Atlantic. This CEO has influenced his employees towards the mission of Virgin Atlantic. These employees have been working towards achieving the objectives for Virgin Atlantic. However, previous CEOs have contributed to this success through their different approaches. In addition, each of them had different traits, hence shaping the attitude and also productivity of employees.
Contemporary management and leadership have different approaches based on the locality, culture and approach of the individuals who are led. Some individuals may prefer those individuals who are charismatic, and hence these will be their favorite leaders. However, there is a general belief that contemporary management and leadership have to deal with power and influence. In addition, there are issues to deal with goal attainment and the process that is used to achieve these goals. In this light, this leadership and management must revolve around groups. Virgin Atlantic has been concentrating on these issues so as to improve productivity. For this company, contemporary management issues are prime to its success.
There are two major views regarding contemporary management and leadership. The first is the personality perspective. In this perspective, the major influence of the leader is shaped by his power to influence other individuals towards achieving some goals. Therefore, the leader uses special traits that serve as bait and amalgamation for these individuals to work towards some common objectives. For Richard Branson, he has had to influence all the other members of this airline company towards success for the company. The company has been expanding into international markets. This airline company has achieved this growth based on the ability of senior management to influence all the members in this organization to work towards success.
The other view is the behavioral aspect. In this case, the leader selects some tools that are directive, participative, directive and achievement oriented. The basis for selecting these tools is the needs of the organization. By applying these tools, the leader or manager maximizes result from his organization. At Virgin Atlantic, the tools that have been applied are those of motivation. This has impacted on the behavioral aspect of this organization extensively. By maximizing the productivity of its staff members, Virgin Atlantic has managed to deliver value to all of its stakeholders. Section two: Contemporary leadership versus management
At Virgin Atlantic, the managers are responsible for the drive and smooth operations. With top management, there is efficiency and also effective management in the organization. In contemporary management, the leader is responsible for the drive, ideas and motivation in order to achieve the goals of his organization. The goal for such a manager is to provide order and also consistency. In addition, the manager plays the roles of budgeting, problem solving, planning and controlling. On the other hand, the leader is responsible for providing the manager with the influence on how to direct the entire organization. Therefore, Virgin Atlantic stresses the importance of drawing a line between leadership and management. It concentrates its major leadership decisions in its headquarters. On the other hand, managerial decisions in this airline company are undertaken at branch levels.
An effective leader does charm her manager towards her manner of thinking and the entire grand scheme. Therefore, the leader serves as the visionary for her manager and the entire organization. Instead of maintaining consistency, the leader creates change and moves the entire organization. With excellent communication skills, the leader strategizes and aligns people in the organization towards organizational success. The leader seeks both adaptive and constructive change in an organization. Senior management at Virgin Atlantic has been strategizing on areas where efficiency should be improved.
In contrast, the manager seeks order and also stability in the organization. However, both functions are intertwined for the wellbeing and success in an organization. They improve the competitiveness of the organization if they are executed successfully. Adaptive measures have been taken in order to adjust the members of staff of this organization to the requirements in different countries. Constructive change has been executed at Virgin Atlantic so as to gain relevance in contemporary management issues in the airline industry. For instance matters of security and timeliness have been a major concern. Responding to these matters has been a major contemporary step forward. Section 3: Major issues in contemporary leadership and management
A major issue in contemporary management is the adoption of internet based technologies. Starting off with email and file transfers, corporate leaders have had to assess the impact of these technologies on their organizations. Therefore, these organizational leaders have had to reorganize and reengineer their operations in light of these changes. These changes are made in contemporary leadership in order to promote the competitiveness of the organizations concerned. One example of these changes and their impacts is the emergence and the resultant application of e-commerce. This platform changed the needs of organizations by removing the need for a physical establishment. Leaders at Virgin Atlantic had to change the nature of their meetings by conducting them online. Other leaders at this airline company, dependent on their attitudes and capabilities, have combined both the physical establishments and the internet platforms. The emergent business model in this conceptual management style is called the click and brick model. Some managers had to be dropped out of organizations due to their failure to match with the skill requirements in the highly advanced technological environment.
The other major issue is contemporary management is the social impact of reengineering economics. There has been a large number of displaced professionals from their positions in the past at Virgin Atlantic. The main contributor to this phenomenon is downsizing. Some managers and leaders have had to reduce their employees’ numbers in the highly competitive and also efficient operating environment. On the other hand, this displacement of professionals has been occasioned by low wages and reduced benefits. Managers have had to reduce wages due to the option of relatively cheap technology, which may be substituted, for this labor.
As a result of contemporary management efforts in ensuring efficiency in organizations, the affected employees have had to reinvent themselves in order to rescue their careers. Their reentry into the job market presents a tough decision for HR managers. This is because these managers have the option of selecting highly qualified young generation against experienced but unqualified aged employees. Contemporary management has guidelines for these managers. Leaders and managers are advised to apply modern recruitment techniques such as multistage interviews. With these initiatives, such managers will save their organizations from the inefficiency associated with mismatch between employees and skills.
The third issue in contemporary management is globalization in service outsourcing. In contemporary leadership and management, there are trends of outsourcing some services on a global platform. Therefore, some full time employees have turned to be less valued assets than they were earlier. Managers and leaders have realized that there is a burden in providing costly employee benefits to these employees. With the globalization of some services that would have been provided by full time employees, managers are saving on funds that would have been compensated to full time members of staff.
Another reason for this outsourcing is that it allows for these services to be awarded to highly efficient service providers. A major shortcoming of this contemporary management issue is that it leads to threats of lawsuits and severance payments. To add onto this, there are costs associated with the resultant restructuring. Outsourcing proves to be a central management tool that shapes the reengineering in business. It improves competitiveness of companies since it gives them an opportunity to import services at a relatively cheap cost. This conceptual management concept breeds self sufficient organizations which are focused on their core competencies.Section four: Contemporary theories
There are several contemporary theories at Virgin Atlantic. The first theory is the green fiber by Peter F. Drucker. This author has written extensively on management, organizations and conceptual their frameworks. He proposes that principal concepts have to be applied in a realistic manner. Paradigms in conceptual management must be applied in order to meet these requirements. The main ideas of a realistic management concept shape the entire success and implication of the entire process. Managers and leaders coordinate their reactions and behaviors with the concepts of management in their organizations.
The main argument by Drucker is that an organization should have the right organizational structure and the right manner of managing its employees. The Virgin Atlantic CEO argues that these concepts must be taken beyond businesses and applied across organizations. This is meant to promote the progress of entire societies. A critical analysis of this information is that the realistic application will determine the success of the organization. However, the ‘right structure’ is suggestive of a fixed structure in the organization. This implies that there are chances of rigidity in such a scenario.
Another argument by the Virgin Atlantic CEO is that an organization should be held as a means of assisting individuals concerned with the organization. These individuals should benefit from the joint human activity. Therefore, managers must design a structure that corresponds to their tasks, concrete condition and also concrete time. In adopting a specific organizational structure, it is crucial to have information on the specific advantages and also the limits of specific organizational structures. Therefore, the structure design must incorporate the most important elements in the structure. Its importance is that it will ensure a proper match of the organizational goals with the organizational structure.
With regard to group dynamics, different groups of workers should be treated as partners in the organization. The organization must consider what their employees want. The design of the structure should include these group dynamics and incorporate them into the structure. This will ensure that it adds value to all groups in the organization. In light of technological advancement, organizations have to note the importance of adjusting the structure to inculcate mental productivity in contrast to labor productivity witnessed in the past.
The contingency perspective is another approach at Virgin Atlantic. In this case, importance is stressed that there is no single way to manage the organization. This approach lays its foundation on the notion that each managerial issue is uniquely different from the others. Therefore, it has its set of challenges, and internal and external factors. With this knowledge, the management of Virgin Atlantic is aware of a number of contingencies. They include technological changes, demographic shifts, economic conditions and also the cultural factors. The final concern for the Virgin Atlantic managers is legislation. Flexibility is necessary to respond to these shocks, and it shapes the success of organizations with this approach.
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