Beers Critical Path Method

Beers Critical Path Method Beers Critical Path Method Introduction Background: This essay analyzes the transformation of a business-unit (Alpha) of a large public sector undertaking (PSU) company Beta. Alpha was set up with an intention of manufacturing x product for y market. Until December 2003, the primary mission of Alpha of about 900 people was the development, support and maintenance of product x, which was developed and implemented using sequential development method (App-2). The clumsy nature of the employed process and bureaucratic structure of the company was resulting into consistent delays into deliveries of low quality and over budgeted products. The unit had not been able to produce cost-competitive product with high-quality. It had been running without making profit for last three consecutive years. In 2004, newly elected governments inclination towards disinvestment of underperforming PSUs forced Beta to mull over the rationalization of its underperforming business-unit. Consistent pressure from the competitive market and senior managers from head-quarter (HQ) inevitably forced head of Alpha to revisit the units structure and processes. It was decided to come up with design and development of product with superior quality and cost competitiveness within a limited budget and time (i.e. Eighteen months). Revisit to the existing process and structure highlighted the major problems, which were due to lack of coordination and participation among functions in addition to sequential product-development methodology. Consequently, management decided to change the existing structure, and adopt concurrent engineering methodology (App-3) to produce x moving forward. Change Analysis Nature and type of change: Nature of change at Alpha can be analyzed by applying TROPICS test (Paton McCalman, 2008). Based on analysis, this change can be located at the Flexi/Grey area of change spectrum. Although time scales, control and sources factors are identified hard, but as a whole, change is inclined more towards soft end of the spectrum. Problem at Alpha can be considered messy as it involves soft complexities due to the introduction of a new working model and process method (Open university, 1985, cited in Senior Fleming, 2006). TROPICS Test (Modeled on source: Paton McCalman, 2008) Dimensions of the change CCP (Content, Context and Process) model (Pettigrew Whipp, 1991), widely used in organizational change analysis, can be applied in this case to understand the changes at Alpha. Although this model was originally developed to analyze private sector organization but later on, its application was extended to other fields and sectors (Pettigrew et al., 1992). Overall framework focuses on what (content), why (context) and how (process) dimensions of the organization change. CCP Framework (Modeled on source: Pettigrew Whipp, 1991) Context (Why): Traditionally, PSUs are considered to have bureaucratic culture (bureaucratic organization-structure and process culture) (Deal Kennedy, 2002). Such culture is generally hierarchy-driven, procedural, regulated, ordered, cautious, and power orientated (Wallach, 1983). The purpose of bureaucracy is to restrict individuals capacity exerting control over decision-making processes and activities (McHugh Bennett, 1999). According to Hofstede (2003), bureaucratic structure is based on rigid rules and processes, and competencies tied to the positions; where employees are accustomed to systemic but precise way of working, which operates on ‘one person, one job basis and require high degree of job specialization. Therefore, business knowledge and skills are owned by individuals; this makes knowledge sharing very problematic. De Long Fahey (2000) argue that the organization culture plays vital role in determining the people and specific business knowledge relationship. Alpha had been facing similar issues; due to the bureaucratic culture, decision-making was traditionally made at the top without much coordination with and participation of functions. Sequential-development approach used is linear in nature, which does not provide tangible results and product visibility until the product development lifecycle end (Martin, 1991; McConnell, 1996). Lack of individuals participation and knowledge sharing, conflict of authorities in conjunction with slow decision-making speed and cumbersome sequential nature of the product development used to induce significant delays in product delivery and implementation, causing low product-quality and high cost-per-product. Fig- can be used to show cause of realized changes using multiple-cause diagram. Multiple-Cause diagram (Modeled on source: Paton McCalman, 2008) Primary drivers for change can be identified by using a classical change management tool, Force-field analysis (Lewin, 1947). Main purpose for using this tool is to understand context (driving forces) and content (objective, goal, and restraining forces) and determine the process (ways to enhance positive factors and lessen negative factors) (Giardino et al., 1994). This tool confirms the nature and type of change at Alpha confirms, analyzed by TRPOICS test. The primary restraining forces indicate that most of the barriers to change involved soft aspects, such as senior management, existing culture and employee related barriers. Field force analysis (Modeled on source: Lewin, 1947) Content (What): Existing situation at Alpha was not conducive for proposed concurrent development approach either. This approach follows iterative process, which calls for authoritative and speedy decision-making activities along with team culture (Cockburn, 2002). However, bureaucracy structure hinders speed (Martin, 1991) and is not suitable for highly dynamic and complex business processes (Carnall, 2003). Crozier (1964, cited in Hughes, 2003) feels that static working patterns and fixed procedures are not beneficial in a dynamic and volatile business environment. Hence Alpha not only required change in product-development process but also to organization structure. Process (How): Changes at unit were managed and implemented using Beer et al.s (1990) critical path to corporate renewal. This six-step planned-change model needs to be executed in sequence to achieve a successful change. The critical path process in the present case was led by unit head with a middle management team. 1. Mobilize commitment to change through joint diagnosis of business problem: Prior to any effective change effort, it is important to have business problem clearly defined . Management should help people in developing a shared diagnosis of the problem (Beer et al., 1990) and realizing the need for change in existing status quo (Richardson Varkoi, 2003). Kotter (1996) describes the need for a powerful guiding coalition with involvement of key members of the organization. The number of such key members can be small to start with, and can gradually be increased as project gains momentum (Borjesson Mathiassen, 2003). At Alpha, initial step taken by the unit head to review the business broadly. Sticking to Lippits ‘golden rule (1959), an external consultant with his assistant was brought in to lead the change, and to develop the guidelines for the change management. External consultant was allowed to form a coalition-team with a senior researcher, five managers from various functions and six key expert employees from units production-department. Team together investigated existing and past product performances, results and artifacts. In order to analyze problems effectively, they also visited and observed many successful manufacturing companies. Through the analysis of their observations, customer satisfaction surveys and previous performance data, team formed a common understanding of the problem. Team recognized the flaw in the existing product methodology and lack of shared knowledge among employees due to which there were consistent and significant delays in product-delivery with poor p roduct-quality. They came up with two page fact sheet to support their analysis. At this point, team began to realize the need for an alternative organization model and development methodology. 2. Develop a shared vision of how to organize and manage for competitiveness: Once a problem is analyzed, coalition should align employees core tasks with vision of the organization, and lead them towards a task-aligned vision with redefining employees roles and responsibilities (Beer et. al, 1990). Objective of such new arrangements is to have better information-flow coordination pattern across all cross-functional departments. Moreover, these arrangements do not encounter much resistance as they do not cause any formal changes in systems and structure such as compensation or titles (Beer et. al, 1990). However, communications is essential to achieve such arrangement (Jones et al., 2004). Developing vision and strategy is generally a messy and time consuming process that results into guidance for future, which is feasible, desirable, flexible, and focused (Kotter, 1996). In order to develop vision, team executed future workshop to focus on democratic and creative idea generation from the participants. Future Workshops, a user-driven and participatory design technique, is used to help participants play an important role in designing vision for future, by actualizing a common problematic-situation (Greenbaum Kyng, 1991). This workshop is normally conducted in three phases: critique, visionary and realization phase (Jungk Mullert, 1986). The participants, at Alpha, consisted of management team and carefully chosen key employees. In critique phase, participants formulated their critical views regarding existing shared values and working procedures. At the end of this phase, participants were asked to prioritize the most important issues considered the barriers for the u nits development. In visionary phase, participants formulated the visions for units future direction, which brought in new suggestions and ideas for business activities improvement. In realization phase, participants identified actions to realize the visions most effectively as a response to critical issues. Relevant inputs gathered from participants of this process can be utilized while preparing overall change implementation plan (Jones et al., 2004). Based on cost-benefit analysis, future workshop and two-page factsheets, team carried out a SWOT analysis and developed a new organization model (refer fig-), along with a new methodology, concurrent development method, for product development and implementation. Intention of new model was to eliminate hierarchal and functional barriers to information sharing; whereas to adopt new product development approach to avoid delays and improve quality along with cost-competiveness of the product. Such organization-level changes do need an adequate support from senior management (Small Downey, 2001). therefore proposal of these changes was proposed to senior management team at HQ. While they were delighted to notice units pro-active and positive steps, they were not convinced with the new approach to resolve the critical issue as existing approach was working very well for rest of the organization. Eventually after few rounds of discussions, they got ready to lend their support and approved the proposal, despite their reservations. New organization model (Cross-functional Teams with their respective responsibility area) 3. Foster consensus for the new vision, competence to enact it, and cohesion to move it along. Beer et al. (1990) feels that just simply helping employees develop a new vision is insufficient to make change successful. Employees need to understand the positive impact of new structure and approach to be committed to that vision. Therefore, it is vital to share and communicate the vision to employees in overcoming resistance to change and developing required competencies to make new organization work. Change process can be successful only when there are clear, concise and realistic change-plan and implementation-plan in place; otherwise process runs at risk of adding further resistance to change (Mathiassen et al., 2005). In order to communicate the vision to all employees, a conference with presentation and discussion was held. Senior management team from HQ along with all the employees, were in attendance. The change-plan with new structure and methodology, and implementation-plan with goals, objective, risks and mitigation plans, training plans, and milestone and measurement plans were also presented. Presence of senior management in the conference boosted the morale and confidence of units management team. Subsequently, internal meetings took place and goals, strategy and vision were circulated. Once new roles and responsibilities are defined, people need to foster the skills to make the new arrangement work. In fact, changes in the relationships due to these new roles, responsibilities will push people towards learning, and foster new attitudes and skills. Changed coordination pattern also increases sharing of information, employee collaboration and participation; this, in turn, reduces resistance level which arises as a result of incorrect information and rumours (Kotter Schlesinger, 1979). Team took the help of human resource team, not only to make sure employees were clear about the changes, and their roles and responsibilities but also to understand the required skills and trainings for the employees. Required trainings were imparted to employees to develop their skills. Beer et al. (1990) advocate replacing those managers who despite all the support and guidance do not want to or cannot change in order to function in new setup. Having said that such decisions can sometimes backfire as not only there is a threat of losing valuable skills and knowledge but also it can make other employees demoralized, that can hamper the change progress. Introduction of new model and development approach caused restructuring resulting into redundancy of staff in small number. Uncertainty created by the situation also made few employees depart during the transition process. Few managers and employees were replaced and few were given promotion. Few key employees including managers, who were very much accustomed to past bureaucratic culture could not find the new working model and culture suitable for them and subsequently, left the organization. 4. Spread revitalization to all departments without pushing it from the top. With a new structure is in place for the unit, departments and functions do have to rethink about their authorities and roles in the organization. Effective interaction between them and new organization structure enables members of team to become effective by letting employees participate actively in team decisions (Beer et al., 1990). At Alpha, where managers of production department looked the most spirited and passionate about the changes, managers of engineering department were more hesitating. They had always been a dominant force at Alpha and these changes were perceived as threat to their authority. In the past, they always shown less concern whether production department could manufacture products based on their design specification. However, with new organization structure and method in place, engineering department had to collaborate with product department in product development activities. This actually forced them to re-visit their approaches to manage and organize their own department, and rethink over their roles. Often when speedy change is required, leaders tend to force the issue throughout the organization; this generally short-circuits change-process. The best way is to let each functions and departments find their own way to the new organization (Beer et al., 1990). In case of Alpha, departments were encouraged to apply general concept of teamwork and coordination to their own situation. For nearly a year, engineering department had to suffer agony in implementing theses concept and accepting the new structure. Decision of their move to new structure was natural; since it was their own choice, team members showed commitment to learn the required attitude and skills. 5. Institutionalize revitalization through formal policies, systems, and structures. In any change process, sequence of activities should be carefully considered as activities suited at one particular time tend to backfire, if initiated little too soon. This is especially applicable to activities related to changes in systems and structure. Leaders should institutionalize changes only when right employees are in place and new arrangements are up and running. Beer et al. (1990) argues that none of formal structure and systems is perfect but employee commit to them, as they work in structure and learn about required interdependencies. If the implemented change becomes part of the culture of organization then it is considered successful (Senior Fleming, 2006). The units revitalization was successful as it enabled employees to change their views about their roles and responsibilities. They actually became convinced that change would bring a difference. This eventually resulted into a striking improvements in value added per employee, gross inventory per employee, scrap reduction, quality, and profits. To their credit, business unit was able to achieve all these without further control system, compensation or restructuring. However, eventually when opportunity came, there were few change were made in the formal organization. For example, vice president of operation was asked to leave organization and that position was eliminated altogether. 6. Monitor and adjust strategies in response to problems in the revitalization process. In order to sustain the benefits of changes and being able to adapt to dynamic competitive environment, an organization should know the effective use of continuous shared monitoring of the change process (Mathiassen et al., 2005). Keeping such measurement criteria provides multiple advantages, such as i) it keeps people, with direct involvement in the change-process, motivated; ii) it gives management a sense of direction in which change-project is moving iii) it also depicts a relationship between achieved result and invested effort. Even after successful change implementation, it is essential to re-examine the original plan regularly and revise it with respect to current circumstances and situations (Senior Fleming, 2006). Stating clear objectives and process measurements criteria explicitly in the implementation plan was very helpful. Measurements were gathered at the end of pilot-study and appropriate process benchmarking was set, after comparison with previous internal and cro ss-industry data. In order to monitor revitalization, several mechanisms were put in place. Internal surveys and feedbacks were introduced to monitor attitude and behaviour patterns. A monitoring team was formed to keep regular watch over the processes and plan for new challenges. This team consisted of managers and key members of respective functional teams and human resource and finance teams. Outcomes and lessons Outcomes: Use of critical path model in present case proved to be an effective way to evoke organization renewal without actually enforcing it. Beer et al.s (1990) believe that employees resistance to changes can be managed effectively through task-alignment approach. This turned out to be a key success factor in case of Alpha. Once core task aligned with organizations vision, employees discovered that new structure and product-development method are more effective. They started willing to accept changes, which otherwise they may have resisted. Adoption of concurrent development method along with change in existing structure, improved not only speed of decision-making but also employee-participation and knowledge-sharing among functions and departments. This enabled company to reduce product-manufacturing and delivery time significantly; this, consequently, improved product-quality and cost-competitiveness and therefore, the profit. The problems associated with the new development method and s tructure is now believed to have eased with increase in employees familiarization of new structure, and development approach. Despite all that, change-project at unit cannot be entirely considered successful. Beer assumes the approach of the changes through critical path model to be always top-bottom. However, the change-project in Alpha was initiated by unit head and carried out by his middle-management team with the help of an external consultant. One of the necessary steps was to gain approval and support from senior management teams of HQ, who was not roped in right from the word go. Negotiations with them caused notable delay in the implementation of the planned changes. The combined effect of not having senior management from HQ directly involved in the coalition, and resignations of senior researcher along with few key members of coalition while restructuring impacted the speed of the changes and its desired results. Although, change-project is claimed to be successful by the management team; but absence significant key performance indicators at the beginning for measuring the success, raise question mark over their claim. In fact, this change-project would be considered a failure if measured against traditional performance indicators, such as cost (in budget) and time (on time). Present study raises a few reservations over the critical path model itself. Basic flaws with this model are the lack of provision for pilot-project, and feedback-loop (iteration) at each stage. Pilot-project is considered to be very handy while implementing new process, which enables people to view new aspects of the process. This approach also gives an idea to people how process will work in actual and assists convincing others, particularly management, about the benefits of new process (Borjesson Mathiassen, 2003). At Alpha, pilot-project approach was employed effectively and it was successful, which convinced senior manager at HQ that the change-project was moving in right direction. Measurements gathered during pilot-project were also helpful in maintaining concentration and sustaining improvements. However, coalition did not realize the importance of feedback-loop at each stage, which caused uncertainty in employees mind, particular during restructuring. This resulted into dep arture of key employees, leaving long-term impact on the unit (Fodor Poor, 2009). Being effective only at organization-level changes, the model either not considered or overlooked specific aspects of concurrent-development approach; this gives rise to need for a more specific and tailored framework to manage such process-level changes. Bibliography Fodor, P., Poor, J. (2009). The Impact of the Economic and Financial Crisis on HRM and Knowledge-Management in Hungary and Slovakia Empirical Research 2008-2009. Acta Polytechnica Hungarica, 6 (3), 69-91. Nadler, D.A and Tushman, M.L. (1989).Organizational Frame Bending: Principles for Managing Reorientation.The Academy of Management Executive,3 (3), 194-204 Paton, R.A. and McCalman, J. (2008).Change management: a guide to effective implementation, 3rded. London: SAGE Publications. Lewin, K. (1947). Frontiers in group dynamics. Human relation, 1, 5-42. Senior, B., Fleming, J. (2006). Organizational Change, 3rded. London: Prentice Hall. Kotter, J. (1996). Leading Change. Boston: Harvard Business School Press. Lippit, R. (1959). Dimensions of the consultants job. Journal of Social Issues, 15 (2), 5-11. Miles, M., Huberman, A. (1994). Qualitative Data Analysis, 2nd ed. New York: SAGE Publications. Richardson, I., Varkoi, T. (2003). Managing for Change when Implementing Software Process Improvement Initiatives. In: European Software process Improvement Conference, EuroSPI 2003. Borjesson, A., Mathiassen, L. (2003). Making SPI Happen: The IDEAL Distribution Effort. [Online] http://www.computer.org/plugins/dl/pdf/proceedings/hicss/2003/1874/09/187490328b.pdf?template=1loginState=1userData=anonymous-IP%253A%253A86.12.199.139 (Accessed on: 07 Mar 2010) Small, A., Downey, E. (2001). Managing Change: Some Important Aspects. [Online] http://downeysmall.com/pdf/iemc2001rp_web.pdf (Accessed on: 06 Mar 2010) Mathiassen, L., Ngwenyama, O., Aaen, I. (2005). Managing Change in Software Process Improvement. IEEE Software. 22(6), 84-91 Jones, J., Aguirre, D., Calderone, M. (2004). 10 Principles of Change Management. [Online] http://www.strategybusiness.com/ (accessed on: 27 Dec 2009), Kotter, J., Schlesinger, L. (1979). Choosing Strategies for Change. Harvard Business Review 57(2), 106-114 (1979) Jungk, R. Mullert, N. (1996). Future Workshops How to Create desirable futures. London: Institute for Social Inventions. Greenbaum J., Kyng M. (1991). Design at work: Cooperative Design of Computer Systems. New Jersey: Lawrence Earlbaum Associates. Beer M., Spector B. A., Spector B. (1990). The Critical Path to Corporate Renewal. Boston: Harvard Business School Press. Pettigrew, A., and Whipp, R. (1991). Managing change for competitive success. Oxford.: Blackwell. Hughes, O. (2003). Public management and administration. London: Palgrave, Macmillan. Pettigrew A., Ferlie E., McKee L, (1992). Shaping Strategic Change The Case of the NHS in the 1980s. Public Money Management, 12(3), 27-31. Wallach, E. (1983). Individuals and organisations: The cultural match. Training and Development Journal, 29-36. Deal T. E. and Kennedy, A. A. (1982).Corporate Cultures: The Rites and Rituals of Corporate Life. Harmondsworth: Penguin Books. McHugh, M. and Bennett, H. (1999). Introducing team working within a bureaucratic maze.Leadership and Organizational Development Journal. 20 (2), 81-93. Carnall, C. (2003). Managing change in organizations, 4th ed. UK: Prentice-Hall. Cockburn, A. (2002). Agile software development. Boston: Addison-Wesley. Hofstede, G. (2003). Cultures and organisations—Software of the mind. London: Profile Books. De Long, D. W., Fahey, L. (2000). Diagnosing cultural barriers to knowledge management. Academy of Management Executive, 14(4), 113-127. Martin, J. (1991). Rapid application development. New York: Macmillan. McConnell, S. (1996). Rapid development—Taming wild software schedules. Washington: Microsoft Press. Giardino A. P., Giardino E. R., MacLaren C. F., Burg F. D. (1994). Managing change: A case study of implementing change in a clinical evaluation system. Teaching and Learning in Medicine, 6 (3), 149 153.

Alice in Wonderland :: essays research papers

www.eReferate.ro -Cea mai buna inspiratie†¦ Alice's Adventures in Wonderland Lewis Carroll Some of the most lastingly delightful children's books in English are "Alice's Adventures in Wonderland" and "Through the Looking-Glass". Here are what Albert Baugh write about them in "A Literary History of England": "Written by an eccentric Oxford don to amuse his little girlfriends, these two world-famous books are the best of all memorials of the Victorian love of nonsense. In them are elements of satire and parody which connect them with a long tradition, but they shot through with a quality distorted logic (for their author was a professional mathematician and logician) which is inimitable and unique." A story may be told either by one of the characters, or by an external narrator. To define by whom the narration is made is to define the point of view that the author has chosen for his story. In "Alice's Adventures in Wonderland" the narrator does not introduce himself as a character. Lewis Carroll uses 3rd person narrative. Yet, everything in the story is seen, heard or thought happens which she cannot sense, or in places where she is not present. This kind of point of view is called selective omniscience, that is the author knows everything, but only through one character's consciousness. Other books in which author uses the same point of view are "Amintiri din copilà £rie" and other novels written by the romanian writer Ion Creangà £. In the end reader is told that everything has been a dream. There are a lot of elements which make up the dreamlike atmosphere. One of Carroll's favourite devices is the pun (play upon words) that is the humorous use of the same word in more than one sense, or of two different words similarly pronounced.

Service Request Sr-rm-022

Hugh McCauley, COO of Riordan Manufacturing has submitted service request SR-rm-022. The service request is to integrate existing variety of human resource (HR) tools into a single integrated application (Apollo Group, Inc. 2011). The new system will provide the organization with a more sophisticated, state-of-the art, information systems technology than what they currently have to better assist the HR department. Before the approval of the project funding, Hugh McCauley will need a detailed project plan that provides some guidance. Completion of the project will complete in six months so utilization of the new system can begin in the second quarter of next year (Apollo Group, Inc. 2011). BackgroundInstalled in 1992, Riordan Manufacturing’s current HRIS system is part of the financial systems package. It keeps track of employee’s personal information; pay rates, personal exemptions for tax purposes, hire date, seniority date, organizational information, and vacation hou rs. Changes to an employee’s information is done through a written change and submitted (on special forms) by the employee’s manager and entered by the payroll clerk. Training and development records are kept in an Excel worksheet by training and development specialist (Apollo Group, Inc. 2011). Applicant information for open positions is maintained by each recruiter. Resumes get stored in a central storage area. An excel spread sheet is used to track the status of applicants.A third party provider manages worker’s compensation. They keep their own records. Individual managers keep employee files because there is no central employee file area. Managers are also responsible for tracking FMLA absences and any requests for accommodation under the ADA. The results of job analyses, salary surveys, and personnel compensation decisions are kept in an excel spreadsheet by the compensation manager. Complaints, grievances, harassment complaints, etc. are tracked by the em ployee relations specialists and are in locked files in their offices.Information GatheringThe information gathering techniques used to development the requirements of the new system will be done through interviews and joint application design  (JAD). Interviews will be conducted on individuals informed about the operation and issues of the current system and needs for systems in future organizational activities (Valacich, George, & Hoffer, 2012). In order for the interviews to be effective certain guidelines must be met. The guidelines that will be included in the interview process are as follows: Plan the interview- Prepare interviewee by making an appointment and explaining the purpose of the interview. Prepare a checklist, an agenda, and questions. Be neutral- Avoid asking leading questions.Listen and take notes- Give your undivided attention to the interviewee and take notes or tape-record the interview (if permission is granted).  Review notes – Review your notes wi thin forty-eight hours of the meeting. If you discover follow-up questions or need additional information, contact the interviewee. Seek diverse views- Interview a wide range of people, including potential users and Managers.  (Valacich, George, & Hoffer, 2012).Interviews will be conducted on employee managers, the training and development specialists, recruiters, and the third-party provider that handles the worker’s compensation, compensation manager, and employee relation specialists. The questions that will be asked during the interview process are as follows:1. What is your name, job title and the department you work?2. What do you need and why do you need it, what system functionality do you need (18 Steps to Selecting a Human Resource Information System, 2002)?3. What results do you wish to accomplish with this effort (18 Steps to Selecting a Human Resource Information System, 2002)?4. What work processes do you wish to change through this selection and what should t he new processes look like (18 Steps to Selecting a Human Resource Information System, 2002)?5. What are the business drivers for the new system, how does this system support the overall needs of the business (18 Steps to Selecting a Human Resource Information System, 2002)?Once the interviews are completed by the analyst team, the interviews will be asked to participate in a joint application design (JAD). The joint application design team will consist of the analyst team, employee managers, the training and development specialists, recruiters, and the third-party provider that handles the worker’s compensation, compensation manager, and employee relation specialists.The primary purpose of using JAD in the analysis phase is to collect systems requirements simultaneously from the key people involved with the system (Valacich, George, & Hoffer, 2012). The JAD will be held at an off-site location in Atlanta, Georgia. Once the team is settled in, the discussion can begin. The in formation that needs to be discussed and agreed on is as follows:1. What type of application are you looking for, standalone PC, networked client/server, or mainframe (18 Steps to Selecting a Human Resource Information System, 2002)?2. What operating system does it need to run on — Windows NT, UNIX, etc. (18 Steps to Selecting a Human Resource Information System, 2002)?3. If it's a database application, what database does your company support, SQL, Oracle, DB2 (18 Steps to Selecting a Human Resource Information System, 2002)?4. How will it connect to remote offices? Does it need to be web deployable (18 Steps to Selecting a Human Resource Information System, 2002)?5. Does it make a difference what language the application is programmed in such as C++ or Visual Basic (18 Steps to Selecting a Human Resource Information System, 2002)?6. Is your IT department planning a major change in technology platforms in the next year (18 Steps to Selecting a Human Resource Information Syste m, 2002)?Project scope is a project management term for the combined objectives and  requirementsnecessary to complete a project (Project Scope, 2013). Project scope is important because it allows the system analyst team to estimate costs and the time required to finish the project. A plan is created for the proposed project for the team to follow. This baseline project plan customizes the standardized SDLC and specifies the time and resources needed for its execution (Valacich, George, & Hoffer, 2012).The team analyst believes that it is in the best interest of Riordan Manufacturing to discontinue the use of their old HRIS system and implement a new one. The old system requires paperwork to be filed and stored in unprotected areas. There are several managers responsible for the safety and protection of pertinent employee information that should be kept in a locked and secure area. ConclusionRiordan Manufacturing has taken the correct steps in implementing a new HRIS system. The g uidelines have been set and a team has been formed to discuss what the new system should include. The next step is to decide on what system to use and how the design should be. What security controls should be set and the tools that will be applied in the terms of data, processes, interfaces, and network.

Leadership and Management in Small Businesses Research Paper

Leadership and Management in Small Businesses Research Paper Outline In the 21st century era, small and large, private and public businesses are all aiming towards economic growth. However, this growth has slowed following emergence of unprincipled leaders whose main aim has been satisfaction of individual needs as opposed to their employees and customers. With such unethical practices, it is obvious that a strong impact has been witnessed in economic growth, which boils down to declining capital investments and unemployment for small businesses. Emergence of economic uncertainty can be traced back to WorldCom and e-business sector failure (Luthans, Luthans, Hodgetts, Luthans 2001). Before the famous 9/11 attack, United States economy was already declining following increased unemployment and reduced consumer spending. This condition was further worsened by the 9/11 attack that resulted in increased uncertainty in economic change (Shaw Shapiro 2002). These changes have challenged the need for leadership and management at all levels of business focu sing on ensuring nothing but absolute success. For leadership and management to achieve these roles, there is need for redefinition from the commonly held perspective. Management and leadership are two terms that are commonly and differently used in small businesses and importantly in rejuvenating a dwindling economy. To some people, these terms are seen as synonyms and hence used frequently and interchangeably. From other perspectives, these words are perceived as two different business approaches. Those identifying these terms as extremes maintain the possibility of an individual being a bad manager and good leader simultaneously. Others have resided somewhere between the terms insisting that while management and leadership inherently presents two different business approaches, it is possible to navigate in both positions for a successful business. In modern business environment, businesses whether small or large- will importantly require effective managers and effective leaders if any operation is going to be regarded as successful. While some perspectives argue that their contributions to organizational success vary, it is conclusively understood that management and leadership will apparently contribute positively towards any business success. For the purpose of this article, management and leadership are understood differently. Whether utilized simultaneously or differently, many businesses will give a precise testimony of significant impacts that leadership and management have on any successful business. Therefore, the main objective here is not to evaluate how the two terms vary, but rather how they contribute to success of small business. This essay will hence understand the fundamental characterizations of management and leadership, the components of effective leadership and management in small scale businesses and thei r underlying theoretical perspectives. Ideally with appropriate training, it is possible for managers and leaders to develop a successful small scale business. Leadership versus management In any small scale business, adopting an entrepreneurial spirit is perceived as critical for economic growth, enterprise growth, and overall nation wellbeing. Therefore in these entrepreneurs, the passion is motivated towards ensuring development of businesses that will outline success. As this business is continually natured, the aim is providing the best services and products at friendly prices that can easily be afforded by their customers. Therefore, without even contemplating on what constitutes leadership and management, business developers embark on a journey that is entirely perceived to be geared towards the overall goal. Ironically, these business leaders or managers hardly possess appropriate expertise, background, and desire of managing their businesses in a strategic manner. Leadership and management are important for success and hence if undermined, these businesses are likely to eventually fall or fail to achieve the overall objectives (Kouzes Posner 2007). Kouzes and Posner (2007) understand leadership as a process that enables a group member to influence fellow members towards achieving a common goal. Further, the same authors explain that while indeed there exists various leadership styles, there are particular leadership components that will inherently exist in all these definitions. These varying definitions will undeniably agree that leadership is a process; it incorporates influence, involves attainment of a well labeled goal, and occurs in a group context. Hence, regardless of how leadership is operationalized, these aspects will undeniably play a contributing role in the utilized theory and definition of leadership. From a different perspective, Kouzes and Posner (2007) argue that management is understood from varying definitions. Conversely, this does not imply that both management and leadership roles cannot be held by one individual, but management is perceived to follow a definition quite different from leadership. Management definition incorporates supervisory, administrative, and executive direction of an organization or group. Therefore, management and leadership are perceived to share numerous similarities. For instance, going by the understanding of Gordon and Yukl (2004), both leadership and management are ways of impacting influence and collaborating with people for achievement of the overall goal. However, management and leadership fields can also be observed to be different. In Kotler’s leadership theory, leadership is an old concept that has been employed in business for many centuries. Management on the other hand is a concept that has been developed over the last 100 years as a result of industrial transformation. Kotler’s perspective is undeniably shared by many scholars when it comes to understanding leadership and management. For instance, according to theorists Nanus Bennis as qtd. by Gordon Yukl (2004), management is perceived to be an approach through which activities are accomplished in such a way that routines can be mastered. Leading hence implies influencing others and development of a vision through which change may be enhanced. Rost (Chemers, 2002) on the other side understands leadership as a relationship with multidisciplinary influence while management is perceived to be authoritarian leadership that is lined towards one direction. Chemers (2002) adds that leadership and management are two different business approaches t hat should be handled by different individuals. Moreover, an overlap exists in the two fields. For instance, when management activities are aimed at assisting employees to achieve organizational goals, this form of management is observed to be operating under leadership. As the leaders are involved in features such as organizing, planning, controlling, and staffing, they are observed to be operating under management. This is a simple indication that these two aspects will undeniably involve interchanging and similar roles and hence can hardly be fully isolated. Literature review In the United States, a larger section of economy is mainly centered on small businesses. In small businesses, leaders have used various approaches that have been employed to enhance organizational positioning in such a way that these business objectives and goals can be achieved (Howard, 2006). Based on the fact that economic condition has been a major concern, this market has witnessed a rapidly changing demand for small business. According to Pellerin’s (2007) perception, small businesses are individually owned and operated, hence hardly dominate in their field of operation. The last three decades have seen United States, among other global nations, witness a dominant development of small businesses (Kuratko, 2007). These small businesses have, in United States, resulted to the GDP growth by more than half, serving as a main source of job creation through incorporation of more than 50 of the workforce. Therefore from studies, it is apparent that when it comes to the economic growth, small businesses are hardly detachable. From the United States Census (2005) statistics, 13.3 million United States organizations were registered as small scale businesses by the year 2004. The small business increase has come as a boost to economic growth and as a means of employment creation. Growth in small businesses has been linked to economic improvement and most importantly creation of new employment. According to Kurakto (2007), small business growth has been attributed to increased competition, profitability, and well framed organization goals. In order for these achievements to be enhanced, Kurakto (2007) has noted the importance of effective leadership. However, this has not always been the case because as earlier highlighted; poor leadership is inherent in many small businesses. Beaver (2003) and Perry (2001) affirms that one of the reasons for failure in much small business is simply because of poor leadership. Based on this understanding, Gordon and Yulk (2004) have mainly targeted their reteach in understanding important leadership skills that affect small scale environment. More than two decades ago, Beaver (2003) analyzed 200 small scale businesses that had recorded bankruptcy. From the study, it was clearly observed that the main reason behind failure of small business was management neglect, and lack of knowledge on leadership. Therefore, if these small businesses have to be successful, it is important to incorporate leadership styles. As Pellerin (2007) observes, the rate of failure in small businesses is high. This author observes that by the end of the third year, the rate of failure hits more than 62% in many small businesses. However, this study does not incorporate another burning issue: management incompetence. Scheers and Radipere (2007) add that within the first ten years of business operation, 90% of small business fail. These authors strongly agree that failure in these businesses is mainly caused by poor skills in management and leadership. As a result, for any economy to be successful, small business have to be competitive and productive (Beaver 2003). For any economic growth, the central role of small businesses can hardly be undermined. For these businesses, leadership and management skills should be understood as main steps towards increased returns. These skills are well incorporated in different theoretical perspectives. From various authors, leadership has been understood differently although the re is a common agreement in these varying perspectives. Leadership has always been perceived to be a process through which one person is able to support and aid others to accomplish common tasks. Through leadership, a way is created through which contribution is enhanced by ensuring that extraordinary things are implemented (Pellerin 2007). In addition, if these leaders have to be successful, they should importantly portray internal control locus. Charismatic leadership Charisma in leadership is highlighted and defined in numerous ways. It is however perceived to be an exemplary character that is natured in an individual person. According to Kouzes and Posner (2007), charismatic leadership is perceived as a behavioral inclination of leaders that result in development of exceptionally strong relationship between leaders and their followers. For these charismatic leaders, Robbins and Coutler (2003) has highlighted three exceptional leadership characteristics which are; expression of high confidence, strong convictions, and dominance in their beliefs. The same authors also add that these charismatic leaders should be able to demonstrate optimism, determination and confidence, and collective ability of accomplishing mission and realizing the vision. These authors arguably add that these leaders are also required to engender trust as well as the ability to take personal risks to prove that their approach is indeed justified. Therefore, there is a high li kelihood of charismatic leaders focusing to develop a clear and distinct group. Charismatic leadership has a high likelihood of being found in emerging and struggling small businesses than in stable and successful organizations. Emphasizing on the importance of this leadership, Kouzes and Posner (2007) have highlighted five important attributes that must be found in any leader to be categorized as charismatic. They are: (1) Articulation and vision; (2) Sensitivity to the needs of employees; (3) Personal risk taking; (4) Sensitivity to the business environment in which the business is operating; and (5) Execution of progressive behavior. Schermerhorn (2005) has summarized charismatic leaders as leaders or managers who are capable of sparking a sense of belonging towards the business. In addition, these leaders have been able to inspire their employees towards a direction in which organizational objectives and goals may be achieved (Schermerhorn 2005). Transformational leadership According to Pryor et al. (2007), transformational leaders are able to impact movement and change in their organization. Such leaders are able to seek ways of altering the prevailing structure while ensuring that people are continuously convinced to support new responsibilities and vision. For the excellent transformational leaders, power and authority is utilized as motivational and inspirational tools to the people they follow and trust. This leadership is hence able to provide energy producing characteristics through which new changes are likely to be generated in a business. Furthermore, these leaders are capable of motivating followers to transcend their individual interests for other combined purposes while at the same time ensuring that these followers are assisted to increasingly satisfy their individual needs. Pryor et al. (2007) have revealed inner transformational leadership characteristics in small business. These characteristics are highlighted to be inclusive of honesty , integrity, and personal values. These characteristics are positively influential to the leader’s behavior. For effective performance, a major ingredient is connection of transformational leadership with life experiences. This inner connection is combined with the resulting behaviors do develop external behaviors through which a business is transformed. For instance, a group vision is produced by a sense of personal involvement. Management models Conventionally, small businesses have been seen to have a low likelihood of utilizing strategic management models in comparison to large organizations based on a number of reasons. They are: (1) Small businesses are in most cases owned at the family level; (2) The leaders in small businesses are in most cases focused on daily operations thereby paying minimal-if any- attention to strategic management systems and management models; (3) Small businesses are mainly less endowed in financial resources that can comfortably be utilized in improving business performance through training; and (4) Competitors at their levels apply similar business approaches, without incorporation of any managerial models and implementation of systems through which improvement can be enhanced. Additionally, entrepreneurs involved in development of small business are hardly interested in development of procedures and processes. On the other side, large organizations obviously incorporate people with a clear understanding of management models by the time they have completed their studies in colleges. Moreover, these organizations have large amounts of finances that can resourcefully be allocated to training. Large scale businesses compete with large business opponents that are competitively and strategically driven. Strategic management approach This approach was initially developed by Toombs, White, and Pryor (1998) with a perception that small scale business leaders or managers incorporate strategic management elements in their business. This ideal incorporates the SWOT analysis together with the vision, mission, objectives, goals, values, competitive advantage, critical success factors, measurement, and feedback. Various theorists strongly insist that strategic management is an important aspect for a small business targeting enhancement of quality initiatives. Numerous authors have mostly insisted that as a result of incorporating various business theories, models, standards, tools, strategies, surveys, and training, it becomes possible for small businesses to be improved. These theorists mainly insist on the need for integrating quality initiatives into the organizations strategic management (Pryor et al. 2007). As a way of creating additional emphasis on this point, Chemers (2002) explain that total quality management m ust be linked to the strategy of a business because most strategies incorporate goals. Chemers also adds that TQM must be guided by a senior team in management and project selection must be based on their importance when it comes to achieving success in a business. Robbins and Coulter (2003) supports the perception above. However, they argue that customer impact must be integrated with strategic management as a way of achieving the desired results. 5P’s model While strategic management theory is perceived to be a model that should be incorporated by business leaders for long term success and survival, this model hardly incorporates the 5P’s model that was established by Pryor (1998). The strategic management model and strategic direction establishment is perceived to be incorporated in one of the five rudiments that should importantly be adopted to enhance a business success. For pneumonic purposes, this business approach has mainly been referred to as â€Å"Purpose.† The remaining elements are performance, people, processes, and principles. The 5P’s model is perceived to have some elements that are similar to those found in strategic management model that has earlier been examined. However, these elements have additional importance besides their individual importance. Moreover, their alignment is perceived to be equally important. Business leadership approaches Trait approach to leadership Trait approach is developed from â€Å"great man† model as an approach through which key characteristics can be identified for successful leaders. This approach is centered on the perception that through this approach, it is possible for leadership approaches to be isolated. Therefore, individuals possessing such traits can be selected, recruited, and installed into the positions of leadership. This theory has resulted in development of numerous traits. After numerous years characterized with continuous research, it is apparently hard to identify consistent traits. Although some traits have been found in various studies, these studies results have been inconclusive. It is possible for some leaders to possess certain traits. However, in case these traits are not present in an individual, this is not sufficient reason to disqualify such a person as a leader. In order to qualify an individual as effective leader, various traits should be processed. Nevertheless, there is a high l ikelihood of some traits to be more frequently observed than others. Some of the commonly observed traits in an effective leader are inclusive of friendliness, technical skills, task motivation, supportiveness to group tasks, emotional control, social skills, intelligence, and general charisma. Behavioral leadership The trait studies results were not conclusive. The inconclusiveness is based on the perception that it is hard to measure traits amongst other things. For instance, it is hard to measure such traits such as integrity, diligence, loyalty, and honesty. This inconclusiveness is what has challenged development of behavioral model. In this model, the focus is based on human relationships alongside performance and output. In McGregor’s theory Y and theory X managers, it is observed that an average individual is more likely to develop an inherent work dislike and will make all efforts possible to avoid working. In theory X, it is observed that this individual characteristic is highly likely to provoke the need for controlling, coercing, or even threatening individuals if they are to be encouraged to make efforts required for organizational goal achievement. Theory X is also based on the perception that an average individual highly prefers being directed as a way of avoiding responsibility. In theory Y, the managers believe that mental or physical effort expenditure is as natural as rest and play. In addition, the managers believe that employees are likely to exercise self-control and self-direction as a way of achieving the objectives that define their commitment. Moreover, the ability of exercising high level of ingenuity, imagination, and creativity in organization problem solution is widely ( as opposed to being narrowly) disseminated in the people and human being potentials. From this theory, it is possible to conclude that theory X leader is more drawn towards an autocratic approach while theory Y leader is more drawn towards a participative style. In the managerial grid, developed through collaboration of Jane Mouton and Robert Blake, the focus has mainly been drawn to managers, employees (people), and task (production) orientation together with a combination of concerns between these two limits. Mouton and Brake model therefore suggest that team management, a major concern to production and employee, is the most effective leadership approach. Situational or contingency leadership approach to business Even as behavioral model is likely to assist management in a business when it comes to development of a specific leadership behavior, little guidance is given in understanding the constituents of effective leadership in varying situations. Undeniably, most modern researchers conclusively agree that indeed there exists no one appropriate leadership style for every manager under all settings. Therefore, development of contingency models was aimed at indicating that the utilized style is dependent upon such aspects as the people, the situation, and business among other surrounding variables. In contingency approach, it is understood that there hardly exists one specific approach through which managers can be able to lead. As a result of situations, varying leadership requirements are likely to be created for a leader. For this leadership situation, the solution is dependent on the factors affecting the situation. For instance, in a high routine environment characterized with repetitive tasks, a comparatively directive management approach it likely to yield best results. However, a more participative approach will be required in a dynamic environment. Building a successful business According to Howard (2006), business performance is perceived to be a multifaceted construct incorporating customer, operational, and financial oriented performance domains. The non-financial measures are inherent in Howard study. This performance measurement approach is incorporated as a result of limitation connected with small businesses financial data measurement. The satisfaction of the owners through performance of business is perceived to be one significant success indicators. Small business success is defined as performance level equal to or exceeding the firms owner expectations. The indicators that have mainly been employed in performance measurement are: profitability, annual earnings, and return on investments. Standards of a small business The small business standards have been developed by Chartered Quality Institute (CQI) (2007) in collaboration with the management consultants. This is a business model that is perceived to be important for managers targeting continuous growth in their business. Designing of the small business standards is aimed to be utilized in various investments that include small and medium size businesses, and micro businesses (CQI 2007). In the places where â€Å"management† term is utilized to imply micro business, it is likely to imply the â€Å"proprietor.† In the standard business model, there are nine main sections: (1) Customer care; (2) Business reviews; (3) Employees and staff; (4) management responsibility; (5) suppliers; (6) processes and work environment; (7) Correction and prevention of services complications; (8) Records; and (9) Documentation. While the standard is mainly perceived to be simplistic in comparison to the 5P’s model and Strategic management model , it incorporates numerous small business management key ingredients. Therefore for small businesses, it is likely to be a good starting point as the business moves towards management and improvement of its organization (CQI, 2007). In relation to the small businesses standards application, one British Standards Institute website has observed that it is possible for real business standards to be achieved by small scale businesses. If this approach is well utilized, it hence has a high likelihood of resulting in: (1) elimination of inefficiencies witnessed when it comes to allocation of already limited resources; (2) improvement of marketing speed and risk reduction; and (3) enhancement of an effective competition with bigger businesses (British Standards Institute 2007). From the general leadership perspective, it is apparent that indeed success or failure in results production will mainly depend on leaders’ character. For these leaders to be viewed as effective, they have to be viewed as essential for the business success. However, the achievement of organizational success will not depend on adoption of similar leadership styles in all organizations. Nonetheless, these leaders will have an influential role on how the organizational goals are to be achieved by the employees in the organization. For this to be enhanced, small business leaders will require advanced understanding of the leadership styles to portray progress and development in achievement of organizational objectives and goals. With small business research, these leaders will be provided with understanding of leadership activities that are necessary for specific position if achievement of organizational objectives and goals is to be enhanced. These businesses will hence have to es tablish working environment for their business; this will be enhanced through leadership style. For organizational effectiveness, leadership will obviously have an important role. If employee empowerment will not be fulfilled in these organizations, there will be a high likelihood of employee dissatisfaction that will undeniably divert from achievement of organizational objectives and goals. Therefore, if a healthy working environment has to be maintained in these businesses, leadership should play an integral role. Conclusion Indeed the theoretical underpinnings evaluated in this article clearly demonstrate need for robust leadership existence in any small business. The failure of these businesses is indeed due to failure to adopt the necessary and fundamental requisites of a successful organization; effective leadership and management skills. This essay is very relevant; for instance in the current economic conditions that desperately require an influential intervention. Leadership hence should be trailed towards ensuring employee satisfaction and effectiveness as a way through organizational success and profitability will be enhanced. Consequently, robust leadership will eventually affect the success and profitability of small business. The way through which this will be enhanced is through incorporation of leadership and management theories analyzed in this essay. These leadership and management hence need to be employee motivation towards adaptation of organizational vision and mission. If these small organizations have to improve their operations, various leadership and management models should importantly be utilized. In fact, the strategic management should be integrated with effective leadership styles. Various models have been highlighted in this article and they are all important in enhancing business success. Although these models cannot be simultaneously used in business, any business striving towards a