Creating management leadership for the future: The role of education.

Dr Pamela MathewsSchool of Commerce, Charles Sturt University, Wagga Wagga, Australia

pmathews@csu.edu.au

Mrs Dawn EdwardsSchool of Commerce, Charles Sturt University, Wagga Wagga, Australia

dedwards@csu.edu.au

Paper presented at the British Educational Research Association Annual Conference, University of Glamorgan, 14-17 September 2005

Creating management leadership for the future: The role of education.

ABSTRACT

As businesses approached and entered the new millennium considerable attention was given to identifying the knowledge, skills, abilities and competencies that the manager/leader of the twenty-first century would require (Greenberg, 1998; Shapiro, 1999; Kaydo, 2000; Dimitrijevic and Engel, 2002; Kacena, 2002). The result was a collection of both tangible, measurable skills (eg. knowledge of theories, concepts, financial procedure, etc), and intangible, ‘soft-skills’ that are hard to quantify (eg. commitment, flexibility, adaptability, and vision). All of which suggest that the managers of the future will need to be both managers and leaders. Formal education provides the tangible knowledge and skills required. However, acquiring the intangible ‘soft-skills’ is more difficult. Currently, formal education is unable to develop many of the qualities considered essential for 21st leader/managers.

This paper examines the role of education in the development of future leader/managers and draws upon the ideas and concepts of workplace learning, mentoring and vocational education. How varied approaches can assist the manager/leader to adapt to the current and future needs of the business environment by building a unique, focused programme to develop and meet the specific needs of the organisation, both for the present and the future, will be discussed. Like today’s managers, education must adapt and be flexible.

Keywords: manager, leader, development, workplace learning, mentoring, vocational education and training

INTRODUCTION

An historical perspective of management/leadership education provides a useful background to

how managers and management was, and is, viewed by society. Traditionally, managers/leaders

were viewed as being born not made, and a good broad general education was considered

adequate. However, when the demand for quality managers/leaders began to outstrip supply a

deliberate move was made to prepare people to take up management roles through the provision

of differing forms of management education, including specialist first degrees in management.

Now, with rapid changes in technology, increased globalisation, and diversity; organisations,

management, and the roles fulfilled by managers/leaders are much more complex. The formal

education of managers/leaders has been found to be inadequate for the changing demands of

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modern businesses, and organisations are seeking to add other techniques or approaches to the

development of managers/leaders.

Added to this, the speculation about the requirements of the managers and leaders in the 21st

century (Kakabadse and Mukhi, 1986; McKenna, 1991; McKern, 1996; Greenberg, 1998;

Domeyer, 1999; Shapiro, 1999; Buhler, 2000; Elizer, 2000; Kaydo, 2000) has been considerable,

and answers are still being sought. This paper suggests that the answer may lie within the

organisations themselves; not the formal institutions which have traditionally been relied upon.

Whilst formal university programmes equip graduates with the knowledge and outlook they need

to succeed, the more specific requirements of organisations can only be met internally.

Developing the management/leadership needed for the future is a complex process that integrates

a number of different perspectives on formal and informal learning. It will require organisations’

to engage in internal reflection and critical analysis of their operations and future directions. This

article will first examine the perceived needs of tomorrow’s business organisations, and the

changes experienced by those undertaking management/leadership roles. Second, the concepts of

workplace learning, mentoring and vocational education and training will be discussed and their

contributions to management leadership development examined. Finally, this paper examines the

role of education in the development of leader/managers, and how varied approaches can assist

the manager/leader to adapt to the current and future needs of the business environment.

MEETING THE NEEDS OF TOMORROW’S BUSINESS ORGANISATIONS

Despite the lack of an agreed definition of management and what constitutes effective

management education, most formal programmes offer similar subjects designed to provide the

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required knowledge and skills for the future (Watson, 1993:17). Finding an effective way to

provide this learning has resulted in a variety of different approaches and programmes.

Of particular importance is the relevance of what is taught (Cooper, 1981: Kakabadse and Muhli,

1986; Karpin, 1995; Jones, 1996; McKern, 1996; and Talbot, 1997), and there has long been a

perceived gap between the knowledge, skills and abilities of graduates and the needs of business

and industry (Karpin, 1995). This is due to a variety of factors, but the most fundamental of these

is the changing context within which management takes place. Dramatic changes in the

organisational, economic and technological context have resulted in significant alterations to

managerial work, and therefore in the skills and capabilities needed by managers to be effective

(Worrall and Cooper, 2001). Worrall and Cooper (2001:34) argued that “… processes of change

have brought about an intensification in the nature of managerial work and that this increased

intensification of managerial work has radically changed the skills that managers need in order to

be effective in the changed context in which they operate”.

An examination of literature on the current and future requirements of managers/leaders and

leader characteristics reveals a broad range of knowledge, skills, abilities and competencies

perceived as necessary for the 21st century (Smith and Peters, 1997; Stevenson, 1998; Greenberg,

1998; Shapiro, 1999; Kaydo, 2000; Dimitrijevic and Engel, 2002; Kacena, 2002). The resulting

collection of both tangible, measurable skills (eg. knowledge of theories, concepts, financial

procedure, etc), and intangible, ‘soft-skills’ that are hard to quantify (eg. commitment, flexibility,

adaptability, and vision) suggest that the managers of the future will need to be both managers

and leaders.

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The nature of these qualities makes developing managers/leaders for the future a challenge for

education providers. Formal education, through colleges and universities, provides graduates

with tangible knowledge and skills. However, acquiring the intangible ‘soft-skills’ is more

difficult. Many of these are organisation specific, and may well be tied to strategy, structure,

values and culture. Others are acquired through experience. The required balance of ‘hard’ and

‘soft’ skills has encouraged organisations to look beyond the traditional approach to management

development, and to seek answers though more informal methods of development. By adopting a

cross-disciplinary view of management/leadership education and development organisation’s

benefit from the strengths of various approaches, and can build an integrated programme that

better suits their needs (see Figure 1).

FIGURE 1: POSSIBLE APPROACHES TO MANAGEMENT AND LEADERSHIP DEVELOPMENT

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Formal Management Education

Theories Concepts Models Budgets

Organisations Industry type Structure Strategy

Some Required skills and competencies

Flexibility/adaptability Mobility Commitment Team building Technical knowledge Communication Vision Conceptual ability Relationship building

Forms of training

Mentoring In-house training Self-paced learning Vocational training Workplace learning On-the-job training

TURNING FULL CIRCLE – CHANGE FOR EFFECTIVE MANAGEMENT

As indicated by Worrall and Cooper (2001) the business environment is in a state of constant

change. This ever-changing scenario is reflected in all aspects of society. The more complex the

world becomes, the more necessary it becomes to change roles and retrain to meet changing

needs and demands for skills. Nowhere is this seen more clearly that in the areas of technology

and business.

The broadening of the knowledge, skills and qualities required of managers/leaders reflects the

need for change, and many people fulfilling these roles will undertake a period of retraining, or

refocusing to prepare them for the new roles they will adopt or acquire. The varied nature of the

requirements of today’s and tomorrow’s managers has seen the adoption of a range of different

techniques for managers/leader development; which will become more and more necessary. It

has become obvious that educators need to refocus the courses, content and methods of delivery

that they offer or they will lose out to trainers who are prepared to meet organisational demands

for tailored programmes – for a fee. If manager/leader development is to remain effective it must

be prepared to adapt and be flexible.

DEVELOPING MANAGERS THROUGH EDUCATION

No simple approach will provide the solution to the perceived shortage of effective

leaders/managers. However, better tailored approaches which consider both the organisation’s

characteristics and those of the individual are needed. To this end it is suggested that the broader

conceptual approaches of workplace learning, mentoring and vocational education and training

have a significant contribution to make. Each of these conceptual approaches will be addressed

individually and their potential contribution to management/leadership development examined.

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Workplace learning and management development

Various forms of workplace learning have existed since the beginning of formal and informal

work patterns. Due to the constant change in an increasingly complex business environment

learning in the workplace is a crucial part of any organisation’s planning and development

strategies (Boswell, 1995 and Howell, 1995). Workplace learning involves “the process of

reasoned learning towards desirable outcomes for the individual and the organisation. These

outcomes should foster the sustained development of both the individual and the organisation,

within the present and future context of the organisational goals and the individual career

development”. (Mathews, 1999: 19). If an organisation is seriously "interested in developing the

true capacity of its people" (Rylatt, 1994:15) it must be prepared to closely examine their existing

policies, systems and activities to determine whether they are supporting or inhibiting workplace

learning.

Workplace learning can be formal, informal or incidental, and has a number of features that

distinguish it from other types of learning (NBEET, 1994:11). It is task focused, occurs in a

social context characterised by status differences, is collaborative, and often experience- or

problem focused and is cognitively different from learning in schools (NBEET,1994:11). Of

particular importance is the perception of workplace learning, and the internal and external

factors, as these will direct every aspect of its application in the workplace. Central to this are the

needs of organisations. However, individual, subjective issues such as attitudes, commitment,

motivation and self-image, are also particularly important for any successful learning.

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Clearly workplace learning can address many of the current and future needs of managers and

leaders, and can take many forms – both formal and informal. However, it is not something that

can be done overnight; but a long term commitment by both the organisation and the individual.

As organisations begin to see the benefits of workplace learning activities they will become

increasingly committed to developing more focused programmes to meet their specific

organisational needs, which will help to maintain the momentum.

Management development through Mentoring

A long-standing method of transferring knowledge and understanding within an organisational

setting is mentoring, which has been described by Appelbaum (2000:19) as “a process of

empowering individuals by helping them capitalise on their personal and professional strengths,

giving them the support and guidance to challenge themselves and take risks, and helping them to

find an appropriate and rewarding career path”. Many organisations recognise that learning and

development does not only take place within the boundaries of traditional learning situations, and

mentoring is widely used for staff development, transmission of corporate culture, and

socialisation (Mathews, 2005). A well designed mentoring programme is a valuable way to

communicate, transfer information relating management expectations, issues and problems

associated with equal employment opportunity, high turnover, commitment, job satisfaction, and

employee diversity, because it examines the specific requirements of an organisation.

This belief is widely reflected in the number of private and public organisations that have

introduced formal mentoring programmes over recent years. Increased motivation, skill, self-

confidence and job satisfaction; improved resource utilisation, communication, co-ordination,

networking and support between individuals and units, and greater understanding of corporate

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culture and values have been reported as outcomes from mentoring programmes (Spencer,

1996:24-31). Hansford, Ehrich and Tennent (2003:224) argued that the “evidence suggests that

implementing a mentoring program can be a productive strategic decision for the business”, with

over 90% of companies reporting positive outcomes from mentoring.

The benefits to be derived from mentoring are diverse and have both short and long-term impacts

on the employee and the organisation. However, achieving effective mentoring is often a ‘hit and

miss affair’. In fact, Hansford, et al. (2003:224) have argued that “A spontaneous ‘spur of the

moment’ mentoring program risks at least some negative outcomes”, such as increased staff

turnover, the creation of gender or racial bias, the overburdening of mentors leading to declines in

job performance, control difficulties, financial outlay, and the need for continual evaluation.

Effective mentoring can develop a number of skills, competencies and abilities that are not able

to be addressed through the use of more traditional, formal education programmes. The most

valuable contribution that can be made is the ability of the mentor to identify inadequacies or

gaps in the knowledge, skills, abilities and competencies of their protégés in relation to the

perceived needs of the business. This then allows for the updating of knowledge, managerial

skills, or industry specific knowledge to be undertaken through various channels. In addition,

involvement in a mentoring programme or relationship, introduces leaders/managers to the

necessity of maintaining, updating and expanding specific skills to meet the changing

requirements of their current and future positions.

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Developing managers through vocational education and training

In general, the Vocational Education and Training (VET) sector, although operating under a

number of different names in different countries, occupies a position/offers education and

training programmes that lie between the minimum school leaving standards and the higher

education sector.

Unlike the approaches to learning discussed above, vocational education and training (VET)

addresses the development and improvement of skills and knowledge for the specific purpose of

improving an individual’s capacity for productive work (Smith & Keating, 2003) and is

comprised of courses and qualifications. While not a new concept, recent reforms have resulted

in a resurgence of interest in VET programmes. The focus of the VET system is to produce

people with the skills needed by current and future organisations (such as communication,

commitment, team building, and flexibility). Smith & Keating (2003) believe that VET in

contrast to general or professional education, has a much closer association with industry, job or

task, learning on and off the job, and a skills based approach. VET courses are specifically

designed to improve the individual’s capacity to perform specific jobs or tasks (ie. particular

skills that are needed for a given area of work), and enhance personal and professional

development.

The VET method of learning offers flexibility, consideration of relevant skills needed by the

market, and increased focus of on-the-job training, resulting in formal qualifications and an

improved capacity to carry out productive work. Car manufacturer Ford Australia for example,

believes that their education and training programmes have contributed to the success of the

company, as measured by positive trends in key performance indicators (KPI) (Miller, 1996 as

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cited in Waterhouse et al. 1999:15). The flexibility offered through VET is also a benefit for

many organisations. Training in areas of Occupational Health and Safety, team building, and

conflict resolution for example, can be offered as in-house programmes or through TAFE. This

makes it a very valuable addition to the other management/leadership development approaches

discussed here.

Whilst the VET system does not claim to have all the answers, it is an important and valuable

alternative that provides beneficial training and learning for all levels in the organisation. For

example, courses and qualifications for managers and supervisors include Certificate IV Frontline

Management, and courses and upgrading of skills and knowledge for the general workforce,

might include Certificate in Food Handling. Research conducted by NCVER in 2001 confirms

that VET is relevant to, and is used by, people from all age groups to upgrade their skills and

knowledge throughout their lives and therefore supports the concept of lifelong learning (Smith

& Keating, 2003).

DIVERSITY IN MANAGEMENT EDUCATION

It has been suggested within this paper that equipping managers/leaders with the skills, qualities,

etc. required may best be addressed within the organisations themselves; not the formal

institutions which have traditionally been relied upon. For this approach to be successful,

organisations need to be able and willing to assess and identify their own needs, together with the

required resources and their availability, for meeting those needs. This identification of

organisation-specific needs is very important because (as argued earlier in the paper) no two

organizations - even those in the same industry sector or product/service market (eg. Coles and

Woolworths, IBM and Toshiba, Ford and Volkswagon) have identical needs. The identification

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of tangible, measurable skills (eg. knowledge of theories, concepts, financial procedure) and

intangible ‘soft-skills’ (eg. commitment, flexibility, adaptability and vision) from the

organisational perspective, will need to be considered in relation to the organisational strategy.

From this, the education and training that needs to be undertaken pre and post employment can be

determined and the differences between formal and informal training, tacit and explicit skills

examined. Organizations should use these as key dimensions in investigating the most

appropriate education and training responses.

The next step is to identify the best way to develop these required skills, qualities, etc. A key

issue for managers/leaders is the capacity to perform management/leadership functions in

changing environments, to apply a knowledge of how to do (ie. actual practice), not merely a

knowledge of what to do (declarative, theoretical) (Agyris and Schon, 1996; Field and Ford,

1995). For organisations to capture the benefit of manager/leader development decisions relating

to programmes need to be aligned to the organisation’s strategy and goals. As discussed, this will

require organisations to firstly take stock of their own present and future needs, and then to

consider how to best meet these needs. In so doing it is useful to consider the differences in

approaches and outcomes of the forms of management education and training noted above. For

example:

University in general (primarily undergraduate)

Involves pre-employment formal education(refer to figure 1)

Workplace learning, and mentoring, in general (training that does not lead to a qualification transferable/recognised outside firm)

Involves informal/unstructured learning – at least in a post employment situation. To be effective, this often requires making explicit what is frequently implicit/tacit knowledge of an organisations culture and practice.

Vocational Education and Training (VET) leads to either a skill/competency or qualification.

Is a formal learning experience, usually conducted off-the-job but like workplace learning and mentoring is generally conducted post employment

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The integration of such a broad range of management development approaches, such as those

discussed here, requires a change or amendment to the role of education within the whole

manager/leader development process. Unless attention is given to the new and changing role of

education, education will not be able to deal adequately with the emergence of the tripartite

development structure proposed here. The increased popularity of these different methods of

management development necessitates that attention be paid to the role of formal management

education (ie. undergraduate business degrees), and the growing importance of the VET sector.

Universities in particular need to look at building further associations with the VET providers,

both in terms of the development of more structured, focused programmes that better meet the

needs of organisations and in terms of the role that they might play in preparing people for

workplace learning, or to take on the roles of mentors. Management education is clearly no

longer the exclusive domain of universities and colleges.

CONCLUSION

The current and future requirements of managers/leaders discussed earlier revealed a broad range

of knowledge, skills, abilities and competencies perceived as necessary for the 21st century

manager/leader. The nature of these qualities makes developing managers/leaders for the future a

challenge for education providers. Formal education, through colleges and universities, provides

graduates with tangible knowledge and skills. However, acquiring the intangible ‘soft-skills’ is

more difficult. Management/leadership education needs to be responsive to the changing needs of

organisations, which have become increasingly organisation specific. Hence, there is no universal

education and training solution that meets their diverse needs. Likewise, strategies developed to

address the changing requirements of organisations also need to be diverse and flexible.

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Management today is able to utilise a range of formal/structured and informal/tacit based

education and training approaches, that equip managers/leaders with both formal knowledge and

skills, and problem based skills such as staff counselling and discipline, developing and

managing Occupational Health and Safety programmes, team coordination, conflict resolution

and problem solving, to meet these challenges in the future.

The tripartite manager/leader development approach suggested here is designed to take advantage

of the unique learning and teaching approaches that are an integral part of the different methods

of learning and development. As the range of manager/leader qualities being sought by today’s

organisations is so diverse and the way in which individuals learn and develop is equally varied it

would seem negligent not to make use of what is available; particularly in view of the continued

criticism of universities’ failure to equip graduates with the skills needed by modern business

organisations.

Given the variety of issues and challenges that manager/leaders are required to address in today’s

business environment it is imperative that organisations make use of all resources available to

them to enhance manager/leader development, and the three approaches discussed here are

effective ways that organisations can begin to develop effective development programmes that

meet their specific needs.

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