Measuring Effective Management in Business
In
the global market place, business has changed the expectation of its managers. This
paper will look at these changes. We will also ask what are the key metrics and
how can they be measured?
Measuring Effective Management in Business is an expansion of the previous work by the same author entitled Changes in Business Management (Mayo,
2012). In the previous work, an explanation of the topic, a minimal hypothesis,
and brief research method were established. This paper includes a more
substantial hypothesis and research methodology. In addition, a complete
analysis of the research and conclusion are expounded upon to complete the
study of measuring the effectiveness business managers in today's global market
place.
Managers
no longer simply manage employees or processes. They are now required to provide a leadership
aspect to the employees they are responsible for. This requires them inspire, motivate and
challenge employees to work together toward a common goal. In fact, when viewed
from the proper perspective this issue is very complex. Machida and Schaubroeck
present in their article (Machida & Schaubroeck, 2012), "We argue that
the role of self-efficacy in leader development is more
complex than traditionally considered. The article also addresses influences of
a contextual factors and other individual differences on a leader's self-efficacy." (para. 1)
In
times past, managers were responsible for insuring processes, policies, and
procedures were followed. A manager at a
factory that made shirts was responsible to insure policies were followed and
quality products were produced. Now
managers must inspire, motivate and challenge the employees to make quality
products, meet production quotas and insure a low turnover ratio among
employees.
The
element of leadership has been added to the role of manager for three reasons. First, previous experience has shown that
natural leaders are better at inspiring their team to perform at high levels.
Sahertian and Frisdiantara hypothesizes that the (Sahertian, P., &
Frisdiantara, C.. (2012)," relationship-oriented leadership affects
employees' collective efficacy in the organization.".(Para 1) Second, The growing global economy has placed
new pressures on companies to produce a higher quantity at a lower price, thus
a employees must work at peak performance while on the job. Third, recent generations added to the
workforce are working for more than a paycheck. They need a reason to be there and a reason to
work consistently at high levels. Leadership
is required to provide this support. When
describing the leaders that employees are looking for, Shweta asks (Shweta,
2012)," Where are the leaders whom we can look up to? Where are the
leaders who were truly held accountable? Where are our role models?"(Para.
2).
To
be considered for a management position you must display a level of leadership
or you will not be a successful manager. This includes the ability not only manage your
own emotions but the emotions of others as stated by Humphrey as he cites the
following areas of research needed for successful leadership, Humphrey, R..
(2012),
Leaders
use emotional labor to regulate their own emotions and to manage the moods, job attitudes, and performance of their
followers. Researchers need to examine how emotional
labor is related to (i) leadership styles, (ii) leader and subordinate stress
and well-being, (iii) leader
authenticity and character, and (iv) leader effectiveness. (Abstract)
The manager position no longer consists
of managing processes and procedures. You must now effectively manage people.
Explanation
of Topic Selection
This
topic was selected because of the ever changing paradigm in business
culture. While most larger companies
incorporate leadership training in their management training often managers of
smaller companies and recent graduates of lack training in the leadership
aspect. However, leadership qualities
are still expected from managers at every level. This is a source of frustration among new and
younger leaders. From this frustration
has arisen a debate of whether leaders are naturally gifted in this area or if
they can be taught to be good leaders.
Instead this should be judged on a leaders ability to insure that their
employee have a high proximal development, especially as it related to change
in an organization. Franklin argues that (Franklin, J., 2012), " The
construct of having individuals paired with more capable others will be invaluable
to the process of communicating, convincing, and finally the accepting of
change; and should be fully utilized by organizational leaders as they engage
within their Communities of Practice (groups with common goals)" (Conc.) Coupled with a high Zone of Proximal Learning
is the measure of an employees and managers self-efficacy. Bandura writes about
this extensively. He takes the discussion of self-efficacy to a higher level as
he explains, (Bandura, 1988) "Social cognitive theory explains
psychosocial functioning in terms of triadic reciprocal causation. In this
causal model, behaviour, [sic] cognitive and other personal factors and
environmental events all operate as interacting determinants that influence
each other bidirectionally." (pg. 275)
Self efficacy, he believes will be able to show a leaders true abilities
and allow them to effectively lead their team.
Hypothesis
In
today's business culture a traditional view of management in which managers
oversee and monitor people and processes is no longer the standard norm or
considered effective. Successful
managers in business today implore more leadership skills than managerial
skills. McHale emphasizes (McHale, 2012),"the
importance of using a strengths-based approach to motivate and inspire the
team" is a great approach to leadership. Today's managers must effectively inspire,
motivate, and lead teams of individuals to achieve high production and high
quality standards on a consistent basis.
To
find a strengths-based approach that encompasses the complexity of all the
issues managers face Bandura uses self-efficacy to describe all of the
components necessary to measure these areas in his commentary, (Bandura, 2012),
This
commentary addresses the functional properties of perceived self-efficacy
in the context of a set of studies contending that belief in one's
capabilities has debilitating or null effects. It encompasses four
theoretical orientations. These include social cognitive theory
rooted in an agentic perspective, control theory grounded in a
cybernetic model, and trait self-efficacy theory and Big Five theory
based on a decontextualized trait model. Critical analyses of the studies
in question document their failure to fulfill key theoretical,
methodological, analytical, and construct assessment requirements. (Para.
1)
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A
measure of someone's self -efficacy is based in the study of four major Social-Psychology
Theories. The measure of a manager's self-efficacy also includes the measure of
employee expectations. Sahertian and Frisdiantara
state that this is an important factor often overlooked in leadership research,
(Sahertian, P., & Frisdiantara, C.. (2012),
Research
in leadership has not given serious attention to employee expectation with
an emphasis on the mediation of the impact of objectives to behavior. One
important employee expectation is the belief in individuals' capabilities,
which can produce sufficient progress and performance outcomes
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The
hypothesis of this study will conclude that using an appropriate self-efficacy
measurement will provided an effective measurement of a leaders current and
future abilities. A measure of self- efficacy will provide a strengths-based
approach which is suggested as McHale (2012) as essential. It will also address
the manager and employee expectations notes by Sahertian
and Frisdiantara (2012) as significant.
Research
The research in this study will use scholarly journals to
assess the three key areas of change in management previously established. It
will also seek to answer the question, can a measurement of self-efficacy
determine if a manager is currently effective or has the potential to be
effective in a management role? An
example of effective self-efficacy measuring tool is the Leader Self and Means Efficacy used to measure
leadership by Hannah, Avolio, Walumbwa, & Chan,. The (Hannah, S., Avolio, B., Walumbwa, F.,
& Chan, A.,2012), "Leader Self and Means Efficacy (LSME) is
conceptualized as leaders' level of perceived capability to self-regulate their
thoughts and motivation, draw from means in their environment, and act
successfully across a span of leader challenges and tasks in their current
context." (Abstract). We will not look at specific models for testing
self-efficacy. That is not included in the scope of this study. We will focus
on the effects of proper self-efficacy models being used and their results as
an effective tool in measuring a leaders ability and success.
Discussion
The measure of a managers self-efficacy
takes away the pretences and perceptions of the manager. The self-efficacy is a
measure of one's perceived abilities authentically. This is imperative to
establish transparency and effectively measure a mangers self-efficacy as
indicated by Peus, C., Wesche, J., Streicher, B., Braun, S., & Frey, D.
when they state (Peus, C., Wesche, J., Streicher, B., Braun, S., & Frey, D.,
2012), "presenting one's authentic
self to others, as captured in the component of relational transparency also presupposes that one knows one's
values and strengths as well as weaknesses." (pg. 333) A measure of one's
self-efficacy takes this transparency one step further because it goes beyond
the managers self perceptions.
The concern with using other models
such as self-directed success as a measuring tool is the lack of consistency.
This tool measures from a mangers self-perception. It requires the manager to
determine the amount of study, practice, and self learning needed to establish
competency. Bandura establishes the fallacies of this when discussing this
topic he states (Bandura 1988), "If people have had sufficient practice to
convince themselves of their new effectiveness, they apply the skills they have
been taught weakly and inconsistently. They rapidly abandon their skills when
they fail to get the quick results or when they experience
difficulties."(pg. 277) To be successful and to measure success in
managers we must go beyond self-perceptions and self-directed success. Measuring
a mangers self-efficacy has been shown to succeed as a predictor of how a
manger is performing and their ability level. Bandura explains (Bandura 1988),
"People with a strong sense of efficacy focus their attention on how to
master tasks. Those plagues by self-doubts dwell on all the things that can go
wrong."(pg. 280) This is much more than a positive mental attitude as
complex situations arise. When the effects of self -efficacy in managers are
applied to the specific concerns in the current global marketplace they will
produce sufficient differences to offset hindrances to implementation.
Motivating
employees.
A strong self-efficacy maintained by a manger will result
in employees with a greater belief in that manager. The self-efficacy then
multiplies itself in their efforts. Bandura explains this when he states (Bandura
1988)
The stronger the
belief in their capabilities, the greater and more persistent are their
efforts. When faced with difficulties, people who have self-doubts about
their capabilities reduce their efforts and settle for mediocre solutions
or give up altogether, whereas those who have a strong belief in their
capabilities exert greater effort to master the challenge.(pg. 283-284)
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A business owner would benefit greatly from an
investment in a study in the measurement of their managers self-efficacy. This
would result in a manager that is more effective and can also motivate
employees by enhancing their self-efficacy.
Reduction
in costs.
A
concern among business owners in a global marketplace is the ability to reduce
costs. Maximum efficiency is leading cost cutting measure. Sahertian and Frisdiantara conclude that self-efficacy of
not only managers but employees contribute in this area (Sahertian, P., &
Frisdiantara, C. 2012), "Meanwhile, employees' personal self-efficacy
can predict their commitment to the collaboration with the customer.
Relationship-oriented leadership can also directly and indirectly affect
employees' commitment to the organizational mission and the improvement of
effective performance." (abstract) Business owners value employees that
are committed to the mission of their business. These owners pay consultants a
significant amount to insure that they have a direct established mission. This
investment would be increased if all of their employees valued this mission. If
every manager and employee gain improved performance, this would result with
increased production and fewer quality control issues.
Collective efficacy.
High
levels of self-efficacy are desired in managers. In his study, Domsch concluded that the levels of efficacy in leaders
directly affect those they manage directly and indirectly. He studied the
efficacy of elementary principles and the impact on both the teachers and
students at each school. His study found (Domsch, n.d.), " Significant
effects were found in teacher efficacy
means for both enrollment and socio-economic level of schools. Teachers
had higher efficacy in schools with smaller enrollments and lower student
socio-economic levels." Outside factors such as enrollment and
socio-economic levels did not have effect on the study. A leaders self-efficacy
was greater factor in determining the efficacy of the employees and students.
This has such a great impact that Domsch goes on to tell (Domsch, n.d.), "
principal efficacy scores tended to trend positively with student achievement
scores. The study found support for the use of efficacy scales as formative
assessment tools for administrators and teachers." Efficacy scales in this
study showed that the principle or manager raised the overall efficacy of the
entire school.
Conclusion
In the global
marketplace, pressure has increased for business to be more productive and
profitable. As a result, this pressure has been passed to managers with the
business. This paper has established that a predetermining of a mangers ability
can be found in a measure of their self-efficacy. Self-efficacy can be measured
by assessment tools such as the Leader Self and Means
Efficacy and other industry specific efficacy assessment.
A
managers with high self-efficacy can motivate their employees, reduce business
costs, and raise the level of efficacy of their employees. To be successful in
the global marketplace a business investment of studying their managers
self-efficacy would be beneficial to the bottom line of the business. This would also produce a strong business
that could adapt to turbulent marketplace conditions with the ability to adapt
and change as needed to remain profitable.
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