Theoretical Framework for a Management Process
Theoretical Framework for a Management Process
Management process involves a range of activities such as leading, control, planning, and organizing. Analysis of an organizational management, including leadership practices, allows identifying and fixing problems through strengths exploitation. The accomplishment of these tasks requires an attentive approach to the managers of higher and lower levels by conducting interviews and surveys, the creation of focus groups, etc. However, SWOT analysis and Porter’s Five Forces are the most valuable tools not only for the organizational estimation but for identification of leadership competencies, which are critical for success. It is also useful to define how management teams measure the effectiveness of different operational areas. Importantly, the strengths of managers should align with organizational purposes. Therefore, it is essential to review the strategies and practices in order to move the leadership development efforts in the appropriate direction. The main focus of this paper is to provide the analysis of leadership as a primary internal weakness in an organization.
Leadership determines the aspect of strengths. Moreover, different qualities and traits, as well as an approach to people, can lead to the positive outcome. Leadership involves a followership, and, thus, one should consider it while conducting SWOT analysis (Isoherranen, 2012). For example, CEO identifies the value of an organization and explains it to low-level managers and employees (Dayan, 2016). The execution of the set primary goal influences decision-making of teams. Thus, the more real is the goal, the higher are the chances to achieve the success and competitive advantage (Wiley, 2013). Attention to details and iteration can improve the standards of products and services not only in the organization but in the market in general (Dayan, 2016). When those characteristics can serve as strengths provided by CEOs or other executives, being goal-oriented is crucial for the manager. Furthermore, it would help to coordinate the actions to reach success within the short terms (Hill, Jones, & Schilling, 2015). However, the presence of discipline, goal-orientation, and other positive characteristics should be accompanied by communication skill to ensure motivation effectiveness (Leadership Gap Indicator, 2015). In addition, seeking proper individual approach is essential for executives and team leaders (Dayan, 2016). The ability to explain purposes and objectives as well as delegate tasks flawlessly are vital qualities for higher-level workers.
In the current section, the discussion can refer to the issue of leadership as a weakness of the organization in general, and the related weaknesses in particular. An indicator of inappropriate leadership is a lack of motivation, ineffective communication, constant conflicts within teams and between teams and leaders, improper task fulfillment, and other (Wiley, 2013). If the leadership is poor, it means that organization will not be able to achieve a competitive advantage and become successful (Leadership Gap Indicator, 2015). Particularly, low level of motivation and communication can occur due to choosing the wrong leadership style (Dayan, 2016). For example, the authoritative or coercive approach is not effective in the modern circumstances of an organizational behavior and corporate culture. However, it is worth noting that the employees do not properly recognize followership as an important part of leadership. However, it does not deny the fault of the leader who does not have the ability to appropriately guide a team (Isoherranen, 2012). Flexible or situational leadership is a key to success (Wiley, 2013). It is impossible to utilize only one style for all situations. It is important that the leader focuses on the context of the problems and then, finds ways to influence the team.
Regarding the issue of leading, the opportunities do not only occur due to strengths and weaknesses. They often represent some innovations from the outside (Dayan, 2016). If the organization has found the problems of leadership, it can invest in re-training of managers (Wiley, 2013; Leadership Gap Indicator, 2015). Moreover, the weakness of leading can represent an encouragement for the new interesting practices such as an appointment of different employees on the managerial position and measurement performance of the team after a particular period (Isoherranen, 2012). Firstly, it would help to explore the hidden potential in employees. Secondly, it is a corresponding review related to the appropriateness of tasks’ sharing and delegation.
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There are internal and external threats. Moreover, they are beyond control (Dayan, 2016). If leadership is weak in the organization, strong competitors are the first who pose a major danger, especially if their leadership system is developed better (Leadership Gap Indicator, 2015). In addition, improper leading can cause wastage of important organizational resources due to inefficient resource management. Poor leadership means low responsibility at all levels because followers are not sufficiently motivated (Ayub et al., 2013). The gender background of this kind of threat occurs when a woman takes a managerial position, and it can be unacceptable by men, especially who by those who do not acknowledge a leader in the woman. However, there is a risk of conflicts, sometimes not related to the working process.
Controlling is another main activity in the organizational management. Effective means to evaluate control help to regulate the planned actions (Wiley, 2013). Controlling the operational process ensures the efficient execution of pre-determined implementations or other plans (Leadership Gap Indicator, 2015). Moreover, it assists the determination and consideration of various factors able to influence organizational order and strategical steps and allows providing remedial measures in the case of urgency (Hill, Jones, & Schilling, 2015; Wziątek-Staśko, 2015). Furthermore, control helps to delegate duties and authority in a proper way. Thus, the organization develops the involvement of low-level employees through giving the tasks requiring higher responsibility (Ayub et al., 2013). Then, centralization within an organization becomes less effective; consequently, control aids in decentralization through dispersing among several levels of the organization (Isoherranen, 2012). It helps higher-positioned managers to share the authority properly and pay attention to other spheres requiring review and re-consideration (Hill, Jones, & Schilling, 2015). In such a manner, this action simplifies supervision and keeps employees under check helping the improvement of discipline. One should remember that only sufficient control system is able to detect weaknesses and timely take remedial actions.
Planning is another organizational function, which provides many advantages if fulfilled appropriately. Firstly, it helps to set objectives and prioritize them. Secondly, planning helps to minimize major uncertainties. Therefore, to have plan means being ready for unexpected events. Moreover, planning assists coordination due to clear understanding and vision of organizational goals and actions directed to them. Better coordination results in single effort instead of several ones to overcome some problems (Hill, Jones, & Schilling, 2015). Importantly, having the plan moves the company to economies achievement and contributes to controlling actions and processes. Firstly, it provides opportunity for the managers and other responsible employees to allocate resources orderly, thus minimizing their wastage due to proper utilization (Wiley, 2013). Secondly, planning represents a basis for control. In other words, development of the plan pre-determines and provides goals and sets the ground for controlling actions simultaneously (Ayub et al., 2013). Furthermore, the existence of the plan improves employees’ perceptions of the organization because it creates an atmosphere of discipline and order (Isoherranen, 2012). Planning boosts morale in the working environment. It can also contribute to the competitive advantage due to overarching view of the organizational performance, including quality and quantity designs, unexpected occurrences, work extension, reconsideration of aims and objectives, etc. Besides, planning encourages innovations due to the factors mentioned above (Wziątek-Staśko, 2015). In other words, economic approach to resources and high discipline create a decent background for innovations implementation.
Organizing represents a component of a management, which is inextricably connected with the previous ones. It helps to arrange an organizational structure and specialization through dividing work into units. Additionally, following the organizational structure leads to well-coordinated operational process and ensures the development of clear working relationships (Ayub et al., 2013). Along with the clarifications of job positions, it creates a sense of security because actions become automatic and timely. Consequently, all the actions mentioned above provide the efficient administration (Hill, Jones, & Schilling, 2015). Since the organizational growth is completely dependent on sufficiency and consistency fulfillment of objectives, organizing helps to set the formal structure in the working environment, thus diversifying when the organization grows (Wiley, 2013). Moreover, an effective performance creates a basis for new changes. An appropriate coordination provides the space for managers as well as employees to develop their talents, gain additional knowledge, and advance skills.
Porter’s Five Forces analysis aimed at analyzing competitive forces impacting the performance of the organization. On the one hand, it is difficult to predict theoretically the chances of the organizations without a particular context. However, if the primary weakness is leading, any external threat could be fatal. Thus, the risk of new competitors’ entry can be an extremely strong force affecting organizational performance (Hill, Jones, & Schilling, 2015). Considering the macro-environmental forces, one can note that sociocultural factors can cause the largest impact, especially related to norms, values and social responsibilities. The organization with the poor leadership is not able to follow the values of customers because it may not satisfy their demand and production processes (the problem is also reflected in technological and economic factors of the macro-environmental forces). Economic factors also include business cycle. The situation in the analyzed firm can lead to postponed purchases and other similar shortcomings related to monetary and fiscal policies. The most negative impact can be caused by economic situation. The poor leading function of the company would not allow overcoming financial and resource problems. Demographic changes are also dependable; however, the reputation of the organization may impede recruiting of new employees, which also poses a destroying social factor. Competitors can have a better leading system, thus being able to win due to their ability to cooperate within their company and smaller teams (Isoherranen, 2012). As a result, their decisions are quicker, more effective and advantageous. Moreover, competitor’s efficiency in leading would bring more positive outcomes in the innovations implementation because a first-class planning begins with a decent leadership. Undoubtedly, weak indicators of leading function cannot bring sufficient and positive effects. Moreover, the evaluation of technological changes can be conducted in an improper manner. The intensity of rivalry among organizations also poses a high risk of failure to the company with weak leadership (Hill, Jones, & Schilling, 2015). However, if an organization takes urgent actions (e.g. re-training) timely, the chances to improve the performance will grow. Moreover, the legal changes aimed at ethical issues could influence the organization’s internal changes regarding the corporate policies. The bargaining power of buyers is a strong force for the poor leading. Paying attention to the inability to cooperate within a team will result into the lower quality of products and services. Thus, such organization cannot achieve the sufficient competitive advantage to remain in the market (Wziątek-Staśko, 2015). Perhaps, the weakest force to impact the company. Despite the poor leading, the suppliers will provide the organization with necessary items and material till the latter has enough resources for production. The risk of substitution can be impacting for the firm due to the company with a similar profile but better organizing (Wziątek-Staśko, 2015). The better-established leadership can be beneficial for the improvement of a product quality and imitation of competitors.
Regarding the previous SWOT and Five Forces analyses, one can conclude that leading function is basic of any organization. Leadership is a more internal issue and it refers to its sensitivity in relation to the external impacts. If the organization does not change the situation, the losses are expected to be drastic. Firstly, poor leading fractures the rest of organizational functions, including organizing, controlling, and planning simultaneously. Without an appropriate leadership and approach, organizing can be destroyed due to inability to share tasks and responsibilities in a proper manner. It means that nobody will fulfill his or her duties, which represents a cause to conflicts. The same situation will be with the controlling function. The roles and responsibilities can be divided unclearly due to a range of factors, including the most important ones, such as lack of communication and motivation. Planning will be insufficient due to the factors mentioned above. With weak leading, there is a high risk to have many misunderstandings within teams and organization.
The leading function is the most important in an organization. If leadership is strong, it brings many benefits. However, poor leading will always cause negative effects for the organization. This function links to organizing, controlling, and planning and is determining for them. Every company begins from an individual. The lack of communication and motivation can be advantageous for the competitors who have well-developed these qualities. Furthermore, it is impossible to create a fruitful cooperation without a proper leadership because nobody could inspire and encourage employees to execute their duties in the best manner. Additionally, weak leadership results in poor responsibility level, thus drastically worsening controlling function. Therefore, the organization is almost unable to gain even a minimal competitive advantage in these conditions. Five Forces analysis has shown that most of the external factors can influence the performance negatively and even fatal.
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