Marine Works

Limited 2014

Shiva Kirti Garimella

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ContentsBackground............................................................................................................................................2

Leadership and Management Development Program for Marine Works Limited.................................7

The Context.......................................................................................................................................7

Development needs analysis.............................................................................................................8

Training Interventions.....................................................................................................................10

Costing.............................................................................................................................................13

Linking plan to Strategy...................................................................................................................14

Evaluation........................................................................................................................................15

Conclusion.......................................................................................................................................16

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Background

Leadership and Management Development can be defined as a planned and deliberate learning process that helps leaders and managers become more effective in terms of contributing to the business success of the organization. (Armstrong; 2006, Gold et al; 2013, Mumford; 2000) It can be visible, recognized, planned and measurable in terms of output, or even be something that occurs through experience at work and need not necessarily be planned and deliberate. It is therefore difficult to give a generalized definition of Leadership and Management Development to cover all contexts and situations, but the one presented above is widely accepted.

“In England, the Chartered Institute of Personnel and Development’s survey found that nearly 60% of organizations reported a lack of management and leadership skills among senior managers, with 85% reporting that line-managers lack these skills.” (Gold et al, 2013)There therefore is an urgent need here to develop good, effective leaders and managers who can help the organizations function more efficiently.

Leadership involves developing and articulating a vision for an organization. It involves setting clear goals and influencing and helping others to attain these goals by making them believe that the goals are both important for the organization and are also achievable. Management on the other hand involves the implementation of the leader’s vision for the organization by putting plans into practice. (Greenburg, 2011)Effective leadership and management are incredibly important for an organization to achieve success, and just the description of the roles explains why.

Development Needs Analysis (CIPD, 2014)

Before an organization designs a Leadership and Management Development Program, it needs to carry out a comprehensive needs development analysis first. This is done to analyze where the managers presently stand in terms of skills, attitudes and knowledge. This exposes the gaps in skills, and the organization then knows exactly what skills the managers have, and also what they lack, in terms of the organizational strategy and their plans for the future. This gives the organization a starting point for their Leadership and Management Development Program.

Depending on the requirements, a needs analysis can be carried out at the organizational, departmental or individual level. The skills the managers of

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the organization currently possess can be analyzed using any, or a combination of the following methods, depending on the purpose of the program and the context in which the organization is operating-

- Documentation or Pre-existing online data about the managers: The educational qualifications, projects undertaken etc. can be studied. (CIPD, 2014)

- 360 degree feedback/Multi-Source feedback (Gold et al, 2012): Inputs from people in the organization through surveys and questionnaires could be collected and analyzed. The questionnaires and surveys could ask the respondents to rate the managers on a range of skills, both professional and interpersonal. The issue with this is that there is a risk of bias, especially if someone has a grudge against any manager. Also, the manager could ask people close to him to opt to take the survey and give positive feedback.

- Performance Appraisals: This is probably the most common method of analyzing existing skills, gaps and needs on the basis of performance at work as against the job description. This is probably because it’s job performance specific and focuses on those aspects of performance which are clearly measurable. One must have clear objectives in mind while carrying out these appraisals. (Mumford, 2002)

- Assessments: Assessment activities can be carried out with an aim to find out the levels of specific competencies. One must design assessments with a clear eye on the objectives of the needs analysis because these are designed to analyze the levels of specific skills.

Once this is done, the organization can design their Leadership and Management Development Program to specifically target the gaps in skills and also enhance the skills that are already present in their managers.

Approaches to Leadership and Management Development

There are two types of approaches to Leadership and Management Development:

Formal Approaches:

Employees could be sent on training events and courses where learning takes place based on theories and models, normally leading to formal qualifications such as an MBA. Seminars and lectures could be

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organized to impart theoretical knowledge. Consultants or coaches could be brought in for short periods of time to help identify task focused learning opportunities or to help solve problems though guided activity. Relevant reading material like case studies could be provided so the managers learn from what was done in other organizations in similar scenarios. Then there’s role-playing and simulation-based training where, as the name suggests, trainees are placed in different scenarios and tested. There are also cases where managers are sent to a different organization or department to help them learn how to cope in different scenarios and cultures. (Gold et al, 2012; Mumford, 2002: Gold et al, 2013)

Formal methods that are formulated keeping the context in mind are the most effective simply because this enhances the applicability factor to a great extent. They can be used to provide basic or specific theoretical knowledge but may be insufficient for total skill development. Whether leaders can be taught in such a formal manner is debatable and critics argue that formal training is artificial in nature and that it can be difficult to actually translate these skills into application at the workplace. (Beardwell at al 2010; Burgoyne and Stuart, 1991; Roberts and McDonald, 1995; Mumford, 1997)

Informal Approaches:

When it comes to informal approaches to training one can get creative and come up with innumerous ways that cannot be categorized strictly. The interest in using ‘planned’ informal approaches for developing managers has grown. There is no wonder in this as these approaches have proven to be much more effective as they can be set in context more easily and are also cost-effective. (Beardwell et al, 2010)

Mentoring seems to be a common informal method to train employees at any level. Similar to coaching, it involves a superior helping his or her subordinates while on the job. There’s also action learning where leaders and managers try to solve each other’s work-related problems, through informal discussions and follow-up action. Then there are ‘communities of practice’, similar to action learning, with an emphasis on group-learning. As mentioned earlier, organizations could come up with numerous non-prescribed ways of training its employees informally and set them in context easily.

There doesn’t seem to be a very clear distinction between formal and informal methods. For instance, while coaching and mentoring are described as formal methods generally, Beardwell et al (2010), place these in the ‘informal methods’ section. It explains how it depends on how these programs are designed.

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Leadership and Management Development in a Small/Medium sized Enterprise

The principles of LMD might not be universally applicable and the programs that work in the case of large organizations, might not necessarily work in small and medium sized organizations. There, therefore is a need to set them in the context of small and medium sized organizations because the situation and business setting here is different.

SMEs can be classified on the basis of a variety of factors like turnover, the market they operate in etc. A common factor in many SMEs though is that they are owner managed with a strong family link to the business. This results in the organization being developed and managed in accordance with the values and aspirations of the owner/family (Gold et al, 2012). This holds true for the way learning takes place in the organization as well. These companies are less likely to adopt any popular model of Leadership and Management Development and mostly take the informal route. There are quite a few reasons why SMEs opt for informal approaches. They generally plan only for the short-term and make use of short-term measures of performance. This makes it difficult for managers to find time away from work for formally planned training programs. Most learning takes place at work every day through trial and error and observation. If this learning is recognized there is potential for the enhancement of benefit.

Managers in SMEs need to be convinced through clear articulation of the individual and organizational benefits of taking part in a planned development program as they are often reluctant, the shortage of time being a major factor. Once this is done, a number of approaches to Learning and Development can be put forward. For instance-

- Managers could form networks and discuss problems and learn from each other, leading to overall skill development.

- Action learning sets could be introduced where there is centralization of learning while preserving a degree of informality at the same time.

- One-to-one support can be provided to tackle specific issues through coaching and mentoring, and once a coach/mentor gains the confidence of managers, other, more formal methods of learning can be used. Managers need to be allowed time away from work for such formal and planned methods of development.

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Evaluation of LMD (McKenna and Beech, 2014)

The evaluation of training is rarely carried out in an effective manner in an organization. In fact, Anderson (2007) found that about a third of organizations in the UK don’t really expend effort to analyze the effects of training and development on business performance.

There could be various reasons for this. Organizations could be unsure of how to go about the process of evaluation or may not believe it to be worth the time and money. In some cases, they might know how to carry out the evaluation but might not know how to interpret the results and then use them.

Whatever the reason, eventually an organization will need to figure out a way to carry out the evaluation and interpret its results to see if their training and development activities are actually working and to test the reliability and validity of their training program.

Evaluation can be carried out in various formal and informal ways. For instance, follow-up questionnaires could be sent out, formal examinations could be held, the trainees could be asked to take part in role playing exercises etc.

Then there are models or frameworks for evaluating the effects of training, like the one provided by Kirkpatrick (1967), which has become a popular method of evaluating training. The framework consists of the following four steps:- a. Reaction- Responses from the trainees about the training methods

used. What they think about its length, difficulty etc. b. Learning- The extent to which the trainee has picked up what has been

taught and the knowledge he or she has acquired is assessed, usually by carrying out tests before and after the training.

c. Behavior- Here, the extent to which skills that are acquired during training are applied at the workplace with the help of various indicators is measured.

d. Results- Here, the overall impact of this training and organizational effectiveness is evaluated.

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Leadership and Management Development Program for Marine Works Limited

The Context

Marine Works Limited: Based in south-west England

Workforce: 90 employees

Divisions: 3 - Administration, Marina and Engineering

Ownership Structure: Sole proprietorship

Finance: Self-financed - Business being run by investing retained profits and personal wealth of the owner.

Strategy of the Organization: Organic growth strategy - Focused on producing as many products as possible and selling to a large number of people.

The plan: To set up two sites in Cornwall over the next 5 years.

What the plan requires-

- Workforce to be expanded from 90 to 200- Number of managers to be increased from the present 15 to 35

A Leadership and Management Development Program needs to be designed to upgrade the skills of the managers to meet the new requirements and also address the issues the employees have with the managers. The program would focus on addressing the specific managerial deficiencies pointed out by the staff and also look to impart the knowledge and skills the managers should have, to deal with the challenges the expansion of the company would bring. A sum of 25,000 pounds has been set aside for the program.

Training needs of the managers (worked out on the basis of complaints from the employees and the fact that a managerial training program has never been in place):

The managers would need training for the development of leadership skills which encourages employee participation in decision making or which at least gives the employees more of a say in matters related to their work.

They would need training to address the ‘lack of co-ordination between teams’, which translates to, a ‘lack of communication and negotiation skills’.

They would need to be trained how to work effectively as a team.

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Development needs analysis (to be carried out in the order in which they are discussed)

Multi-source/360 degree feedback:

In the case of multi-source feedback, feedback is sought from nearly everyone around the employee. (Gold et al, 2012) The employee’s peers, subordinates, superiors etc., in other words nearly everyone close enough to judge the employee of various measures is asked to provide feedback. Since feedback is coming in from all areas, the issue of bias doesn’t arise and such appraisals are high on reliability.

Questionnaires would be sent to everyone with the respondents being asked to rate the employee, or manager in this case, on various measures of performance and behavior. The questionnaires would be sent online and the respondents would be asked to maintain anonymity.

The questionnaire would ask for a rating on skills, attributes, communication skills, consistency on meeting targets etc., with also a section for comments. The respondent would be asked to mention if he or she is a peer, subordinate or superior, and particular attention would be given to the competency that they can judge more accurately given their status. For instance, superiors would be in a better position to judge skills, and the like.

Performance Appraisal or Interview:

A performance appraisal or interview of every manager would be conducted. (Gold et al, 2012) This is where a person’s overall capabilities and potential are analyzed on the basis of the person’s past and present performance data related to work. While in the case of multi-source feedback there would be collection of opinions from all the people around the manager and would be more general, this performance appraisal would be focused on the work performance of the managers.

The review would include a review of current performance against objectives, reasons for current performance whether good or bad, and the current and future development needs. The managers’ current levels of skills need to be assessed against the requirements of the upcoming job. (Mumford, 2002)

Appraisals in general aren’t very popular. There’s a general air of negativity, and criticism can lead to appraisees being demotivated or defensive. (Meyer et al, 1965)

But this would not be the case here because the managers would know why exactly the performance appraisal is being conducted. One would expect all criticism to be taken positively and prove to be constructive.

Self-Appraisal (Gold et al, 2012):

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The managers would be asked to rate themselves on various factors of performance, their communication skills and how well or not-so-well they connect with their subordinates, supervisors and most importantly other managers. They would be asked to point out particularly what they’re good at and what they aren’t good at, both in the case of work related skills as well as interpersonal skills. They would be given the same questionnaire used in the case of the multi-source feedback.

The disadvantage here could be that they could rate themselves higher than normal. But to dilute this problem, we would have both the results of the multi-source feedback and the performance appraisal.

This is of high-importance though, as getting their point of view for each performance and attitude measure is essential. This appraisal would be given equal weightage as even bias is unlikely here as they would know exactly why this is being carried out.

The most important thing about these questionnaires, whether in the case of the multi-source feedback or in the case of the self-appraisal, is that they need to be set in the context of the organization and not just be borrowed from somewhere. (Mumford, 2002)

Informal Interview:

The results of the multi-source feedback, the self-appraisal and the performance appraisal would be brought together and a ‘final skill document’ of competencies, skills, gaps in skills and other specific issues or comments would be created. This would then be discussed in detail with each manager. His reactions would be taken account of, and if there are any gaps in skills, or if he failed to meet any targets at any point, he would be asked to provide possible reasons, without it seeming like he is being targeted. Also, equally importantly, if he has performed exceptionally well anywhere, he would be asked as to how he went about the process. Wherever the manager has performed well or poorly, it is important to know where and how things have worked or not worked for him. He would then be asked to provide advice for the development program as to what training methods we could use to fill skill gaps or enhance skills. It is important to get the managers fully involved in the program; it would do a great deal of good in terms of how convinced they are of the importance and effectiveness of the program.

The final skill document of every manager, which would include the comments made by the managers and also the advice provided by him/her, would be studied carefully. These would be brought together and the most common issues and gaps in skills would be extracted. The program would be designed to address these issues.

There are two groups of trainees here; those who have been managers for a few years and those who haven’t had any kind of managerial experience. Presuming that both groups have educational qualifications of a similar kind, the only difference would be the existence of tacit knowledge in the case of the people who have been managers. Although this would be kept in mind while designing one of the interventions, the program in general would be universally applicable. This is because a soft-skills training program hasn’t been in existence here.

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Training Interventions

There are two groups of trainees here; those who have been managers for a few years and those who haven’t had any kind of managerial experience. Presuming that both groups have educational qualifications of a similar kind, the only difference would be the existence of tacit knowledge in the case of the people who have been managers. Although this would be kept in mind while designing one of the interventions, the program in general would be universally applicable. This is because a soft-skills training program hasn’t been in existence here.

The focus of the program would be on building leadership skills (with an emphasis on change management) and communication and interpersonal skills , and a great deal of emphasis would be placed on team building, group learning and the like. The training interventions would be majorly learner-centered or androgogical and group-based. In other words they would be group-led, self-directed and participative. (Wilton, 2011)

The specific objectives of the interventions should be worked out on the basis of the gap between the present levels of the skills mentioned above and the desired level. In other words the learning interventions should look to bridge this gap. An evaluation should then be carried out to check to what extent the gap has been filled. The issue here is that the desired level isn’t clear and can’t be quantified. Also, this program wouldn’t have an end date as learning is a continuous process and so the interventions would continue forever.

The training would be carried out at the place of work. Referred to as ‘in-house’ training, it can be set in context more easily and the learning can be applied at the workplace readily. According to a survey carried out by CIPD in 2009, in-house development programs have been rated as the most effective form of training. (Wilton, 2011)

Design of the program:

1. A seminar would be organized at the workplace where all the executives of the company, including the owner would be present. They would explain to the managers in detail, the expansion plan of the company, including their present financial standing, where they see the company once the other two sites are opened and fully functional, how they would go about the entire plan, what needs to be done for this entire plan to be successful, what their roles would be and what the managers’ roles would be etc. The intended training interventions, worked out on the basis of the common issues extracted from the skills documents of the managers and the future roles of the managers, would be explained to them in brief by the HRD director, in the form of an outline. The managers would then be given a couple of weeks to think about the

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interventions. They would be encouraged to discuss the interventions in a group, look for loopholes, possible problem areas etc. They would be given opportunities for this.

2. At the end of the two weeks, on a Saturday, the whole group would be

taken on a day-trip to the country-side. They would then be asked to present their feedback on the interventions and the setting would be completely informal. Their feedback would be given utmost importance. Here, a lot of games and activities would be organized in an effort to bring the whole group together and to help them break the ice. They wouldn’t be activities taken out of any text book. Team based games that aren’t very physically demanding would be a good option. It would be more like a trip organized for university students for instance.

3. A simple prospectus would be printed out explaining the ‘modified program’ in some detail and the benefit of each intervention would be explained, just so that the trainees could refer to them when in doubt.

4. Coaching :

A group of consultants would be brought in to teach leadership skills to all the managers. The managers would be trained in effective change management, adaptability and flexibility. They would also be taught about the importance of employee participation in the decisions and the activities of the company, in the same way their involvement was encouraged actively while formulating the training interventions. They would then be taught about handling conflict situations effectively.

This would be done in three different sessions held at the workplace. The first session would be on change management, and would be held over a day. The second session would be on the importance of employee participation and would also be held over a day. The third session, on avoiding conflict, and handling conflict situations should they arise, would be held over two days and would involve role play on the second day, where situations that could lead to conflict would be simulated.

The sessions would be mostly practical including case studies and the like. They would be learner-centered and would require the active involvement of every manager. Each session would require three consultants because they would be case study and activity based.

5. The next three learning interventions would be carried out simultaneously and would be permanently embedded into the activities of the organization. It would be difficult to work out the costs for these activities and rather pointless to evaluate as the innumerable benefits can’t be quantified or even defined in some cases.

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a. Mentoringb. Action-learningc. Secondments

a. Mentoring :

Five of the most senior managers, those who have been with the company for at least 10 to 15 years would be given the job of mentoring the new managers. They would share the knowledge that they’ve gained through their experience of working at the organization for all these years. The advice would range from advice on personal development, through handling of employees, to even advice on specific work-related issues they could possibly face. This wouldn’t cost the company any money and can be incredibly helpful for the development of the mentee.

Sometimes mentors involuntarily start to control the activities of the mentees and/or mentees start to depend overly on mentors. Care must be taken to prevent this from happening by defining the roles of the mentors clearly. The level of support could be gradually brought down as the mentees pick up knowledge. The mentors could then play the role of a ‘safety net’.

b. Action-learning :

This is based on the theory that leaders and managers learn best by working on real work-related issues as comrades in adversity. (Gold, 2012) The managers from each department would be encouraged to work together in a group. There would therefore be one group per department. They would be encouraged to sit together, discuss and suggest possible solutions to problems faced by fellow managers. Individual and group-related problems would be tackled through advice, and follow-up action based on the advice. The learning that takes place through this process is then reported. Therefore, anyone who faces a similar problem would then have an idea of how to go about the process of tacking it. This process generally involves 5 to 8 people, on the basis of literature (Gold, 2012), but here there would be around 10 managers per department and it wouldn’t make sense to divide them. Also, the literature talks about the need for a facilitator. I somehow don’t agree with this at all, they are managers after all, not school kids who need to be told how to discuss things all the time. He/she would be more of an irritant than a ‘facilitator’.

This would be held once a fortnight for half a day, preferably on Wednesdays in the second half, so it would be like a break from work in the middle of the week. This activity would be immeasurably beneficial to the organization because it would help develop communication and interpersonal skills, it

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would bring the group closer and help in team building. As for ‘group learning’, the activity itself can also be described as group learning.

c. Secondments :

This involves moving managers to different divisions or organizations for temporary periods (Mumford, 2002). Managers in this case would be moved to different departments regularly, where the work culture could be slightly different, giving them opportunities to learn to deal with new and often challenging situations and also pick up new knowledge.

This would also help keep interdepartmental conflicts at bay as managers would understand how things work in other departments. The idea is to bring all the managers together as one group. The people sent on secondments might feel uncomfortable initially but this would be undone by making this a regular phenomenon.

Costing

1. Seminar:

1 day, all managers = 3500 pounds

2. Trip to the countryside:

Travel by coach = 350 pounds Food = 750 pounds

Cost of trip = 1150 pounds

3. Printing out of prospectus:

Cost of printing per copy = 2 pounds

Number of copies = 50

Total cost = 100 pounds

4. Coaching/Consultants:

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Number of Consultants = 3, Number of Days = 4, Cost per Consultant = 300 pounds per dayCost of Consultancy = 3600 pounds

Time spent away from work for the managers = 4 days, Pay per day = 100 pounds, Number of Managers = 35Total cost of time spent away from work = 14,000 pounds

Total cost of Coaching = 17,600 pounds

Total cost of ‘one-time’ interventions = 3500 + 1150 + 100 + 17,600 = 22,350 pounds

Permanent Interventions:

Mentoring Action Learning Secondments

While mentoring and secondments wouldn’t cost anything, action learning, when calculated on the basis of time away from work, would work to about 42,000 pounds per year. But this can’t be treated as a cost or even as ‘time away from work’ and must be treated as a part of work, because this would lead to more efficiency at the workplace and would bring in a collective learning and problem solving culture. Employees working on various projects for clients tend to run into issues all the time and solving these by themselves would take time. If people sit together and solve each other’s issues, how can this be treated as a separate activity from work?

Linking plan to Strategy

In this era of rapid globalization and ever increasing competition, where the social, economic and political atmosphere is changing constantly and rapidly, formulation of a specific business strategy for the long term doesn’t make sense. Linking a Leadership and Management Development (LMD) program to strategy or creating such a program with the ‘strategy’ of the organization as a starting point is even more foolish. Especially in this case the entire expansion is supposed to take about 5 years. The business atmosphere could be completely different by then and any strategy in place would probably be outdated and hence skills developed on that basis would also not match with the required strategy then.

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The strategy of an organization would need to be constantly changed in response to ‘short-term’ business projections (contingency planning). So there would be business projections based on extrapolation of past data and all possible responses to all the possible scenarios would be worked out. Having ‘one specific’ strategy forever would not work. Therefore this LMD plan, which places an emphasis on continuous learning, and change management and flexibility, and which wouldn’t have an ‘end date’ as such, would not be linked to any strategy, which is why the learning interventions are generic. In this atmosphere, the most adaptable organization would be the best, and this can only happen through an adaptable and flexible workforce. This would help them learn how to deal with all kinds of situations.

Evaluation

Since the learning interventions here would become a part of the HR system, the evaluations would also be done continuously and periodically. Since the effectiveness of action learning, mentoring, secondments and coaching can’t be quantified, the evaluations would be an effort to gauge the overall level of enthusiasm in the organization, the efficiency with which all the managers are collectively taking the organization forward and their explicit opinion about the interventions based on the applicability factor.

To evaluate effectiveness, if the methods used in the case of the needs analysis carried out before the interventions began are used again, it would make sense. It would present a clearer picture since the dimensions and conditions of measurement would be the same. The difference in results would then show the effect of the program. The evaluation would be handled by the HRD director.

The evaluations wouldn’t start until the managers have had enough time to implement what they have learnt and have been learning at the workplace, because gathering reactions right after the events, which is the norm, would only get you vague replies. A self-appraisal would be conducted with each manager after about two quarters into the program. He/she would be asked if and how the interventions are helping his/her efficiency at the workplace. If any suggestions are put forward for modifications, this would be taken into consideration. This would be conducted after every two quarters. A multi-source feedback would then be collected after about three quarters into the program, because it takes more time for others to notice the difference in performance. The same questionnaires that were used during the needs analysis would be used here. Thereafter a multi-source feedback would be conducted once a year as this would be more time consuming. A performance appraisal would be conducted once a year and focus more on quantifiable performance, for instance the meeting of targets.

Most importantly:

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The mentors would be asked about changes/improvements in performance if any in numerous informal meetings, perhaps once a quarter.

A ‘group performance appraisal’ would be conducted once a year for every department.

Conclusion

The organization would place the greatest emphasis on flexibility and change management through people, team work and group learning, collective responsibility, inclusiveness in decision making, communication and interpersonal skills. The design of the Leadership and Management Development Program reflects this. Too much is made of the need to evaluate programs in terms of return on investment. Most skills, especially the ones related to leadership can’t really be quantified in that manner. Even if some technical skills can, it’s difficult to separate them from the other factors that could cause an improved performance. If there is a high level of enthusiasm, satisfaction, contentment and a positive vibe at the workplace it can’t really go unnoticed. This is what one should look to gauge through evaluation, once people have had the opportunity to apply the skills learnt. Also, a training and development program shouldn’t ideally have an end date as such. Perhaps the word program mustn’t be used. Instead, every organization must have a learning culture, where learning goes on at all times and at every stage is led by the employees themselves.

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