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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 focusing 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 their underlying theoretical perspectives. Ideally with appropriate training, it is possible for managers and leaders to develop a successful small scale business.
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 Kotlers 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. Kotlers 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 that 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 Pellerins (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 there 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 likelihood 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 leaders 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 must 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. 5Ps 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 5Ps 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 Purpose. The remaining elements are performance, people, processes, and principles. The 5Ps 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.
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.
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 establish 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 successful goal should ensure that it master a few which should act as guiding principles towards organizational success. References Beaver, G 2003, Small business: Success and failure, Strategic change, 12(3), 115-122. British Standards Institute 2007, The Small Business Guide to Making Standards Work, Retrieved March 13, 2009 from http://www.bsi-global.com/upload/Standards%20& %20Publications/WhitePapers/SmallBusinessGuide.pdf Chartered Quality Institute (CQI) 2007, Small business standard, Retrieved December 1, 2011 from http://www.thecqi.org/Documents/knowledge/small_business_standard.pdf. Chemers, M 2002, Cognitive, social, and emotional intelligence of transformational leadership: Efficacy and Effectiveness, Multiple Intelligences and Leadership, Reggie, RE., Murphy,SE., and Pirozzolo. FJ. (ed). Gordon, A., and G. Yukl, G 2004, The future of leadership research: Challenges and opportunities, Journal of Human Resource Research, 18, 359-365. Howard, L 2006, Small business growth: Development of indicators, Academy of Entrepreneurship
Journal, 12(1), 73-88. Kouzes, J., and Posner, B 2007, The Leadership Challenge, CA: Jossey Bass. Kuratko, F 2007, Entrepreneurial leadership in the 21st century, Journal of Leadership & Organizational Studies, 13(4), 1-11. Luthans, F., Luthans, M., Hodgetts, C. & Luthans, C 2001, Positive approach to leadership (PAL) implications for todays organizations, The Journal of Leadership Studies, 8(2), 3-20. Pellerin, H 2007, Why small businesses fail and what you can do to avoid the statistics, Home Business Articles. Retrieved December 1,2011 from http://www.salespreneuredge.com. Perry, C 2001, The relationship between written business plans and the failure of small businesses in the U.S, Journal of Small Business Management, 39, 201-209. Pryor, M., White, J., & Toombs, L 1998, Strategic Quality Management: A Strategic, Systems Approach to Quality, Thomson Learning. Pryor, M, Anderson, D, Toombs, L, & Humphreys, J 2007, Strategic implementation as a core competency: The 5Ps model, Journal of management Research, 7(1): 3-17. Robbins, S, & Coulter, M 2003, Management, 7th edition, Prentice-Hall. Scheers, L, & Radipere, S 2007, Why are so many managers not managing? African Journal of Business Management, 1(4): 85-89.
such, the recruitment activity can be outsourced to outside agencies but the selection cannot be outsourced and this explains the reason as to why it is advantageous to treat the two items separately. Speaking of the roles, the recruitment and selection process plays a pivotally important role in any organization as far as shaping the performance and effectiveness is concerned. For instance, if organizations are capable of acquiring workers with the requisite skills, knowledge, and aptitudes, then, it becomes obvious that these organizations are capable of making accurate predictions regarding the future abilities of the selected employees/workers. This premise suggests that following an effective and efficient strategy in recruiting and selecting workers enables organizations to avoid undesirable costs such as high staff turnover costs, poor performance among workers, and dissatisfied customers (Raybould, and Sheedy, 2005). Eventually, it engenders a mutually beneficial employment relationship within the organization and it can be evidenced by increased commitment among the involved workers. To this purpose, the recruitment and selection process forms an integral part in the organizational process of leading and managing people and the recruitment and selection process is increasingly important in the strengthening of competitive advantage within that organization.
methods such video interviews, telephones, and internet means. Traditionally, organizations in the UK recruiting industry found it a lot easier to recruit candidates that from the list of job applicants given that the majority of applicants accepted any form of job offering (Mohamed, 2008, p. 498). In the contemporary UK job market, thousands of applicants can apply for vacant job positions but it becomes a difficult task to recruit the ideal candidate. This can be attributed to the different trends and developments that have occurred in the recruitment and selection methods. Increased competition among graduate employers, technological advancements, and socio-economic and political changes are other factors that have led to complexities in the recruitment and selection processes. Keenan (2005) postulate the recruitment and selection process in the UK follows a sequential process referred to as the resourcing cycle.
potential recruits. They might be hold vital information about graduates who can match the available position within the organization and such individuals might not be in a position of responding to normal recruitment methods (Shiona, 2010). This can be attributed to the fact that most of such employees might be occupied in other jobs and might not be actively searching for job placements. However, they might be enticed to look for other available employment opportunities if the right opportunity presents itself along the way. Such a strategy can be encouraged by offering bonuses to employees who provide leads through referrals. Recruitment Brochures, Magazines, and Print Media This involves the use of graduate recruitment literature such as GET Directories, and Prospects of the UK because these brochures are direct targets for most graduates. Organizational recruitment brochures are also availed to participants during graduate recruitment fairs. Other forms that still increasingly in use by prospective employers and companies include advertisement in local dailies and newspaper whereby job adverts are placed on the adverts and targets potential applicants due to the increased velocity of their circulation and area of coverage. Advertisements Although it can be related to the above-mentioned forms of job recruitment methods and techniques, advertisements forms an ideal method that is increasingly utilized by employers to market their job vacancies and openings. Adverts are often placed on local newspapers, and online platforms. Majority of adverts are found on job websites because job seekers frequently visit such websites. Job Databases This involves maintaining a job filling system or job database for prospective employers using resumes and CVs that have been collected over extended periods. Such CVs and Resumes might have been collected from career fairs, manual deliveries, and as well from the companys mail system. Once a job opening avails itself within the organization, the people responsible for recruiting services visit the database and select potential employees from the available list. Employment Agencies Recruiting agencies specialize in the provision of job recruitment initiatives whereby they screen job applicants and subject them to tests relative to the positions they have applied based on their skills and qualifications. The costs of utilizing services from the recruiting agency might be high but they offer the best services in terms of selecting the ideal candidates for particular positions (Roberts, 2005). The long-term rewards are often advantageous to the hiring organization. Internal Recruiting This recruitment method is one of the most essential strategies of filling up available vacancies because the current employees within an organization can be suited to fill up positions that have opened up within their organizations. This employee matching strategy reduces the costs associated with other traditional hiring methods. Hiring employees from within enable a company to obtain increased value in terms of employee relation benefits. Equally noteworthy is the idea that hired employees from within often demand lower compensation as compared to hiring employees from external sectors. Lastly, internal recruiting enables companies to decrease their expenditure turnovers through the provision of advancement opportunities for existing employees. Career and Recruitment Fairs Career and recruitment fairs are often ideal places for promoting entry-level jobs for fresh graduates and as well, for this individuals willing to change their jobs. Responsible organs within many universities in conjunction with respective companies organize majority of recruitment and career fairs. Such places are also ideal for enabling potential employers to collect CVs and resumes to be used in future vacancies.
2008). Presentations and group exercises Presentations involve giving applicants a particular topic and asking them to deliver a presentation on that topic within a given period. On the other hand, group exercises encompass the division of applicants into particular groups and selecting a role-play or discussion from where every member of the group will be expected to contribute. At the end of the exercise, the group should be in a position of coming up with a meaningful project to enable them to acquire marks.
Interests of employers
The interests of employers during the graduate recruitment and selection process vary from employer to employer, and depend on the type vacancy. Within these factors are varied aspects such as skills, qualifications, knowledge, experience, organizational capabilities, team spirit, and resilience, among others. To this purpose, graduates should prepare extensively when called for interviews by being committed to the needs and requirements of the recruitment and selection process. Any misunderstanding should be communicated in advance. According to survey findings from Mohamed (2008, p. 508), employers expectations varied depending on the size and nature of operations within the organization (p. 508). Good transferable skills was more preferred to having excellent academic grades. As such, only 21 per cent of respondents argued that the level of degree qualification was more important as compared the degree subject. However, a large percentage (87 per cent) stated that the degree classification was more important than other factors.
organizations. Journal of Organizational Behavior, Vol. 16 No. 4, 303-317 Mohamed Branine, 2008 Graduate recruitment and selection in the UK: A study of the recent changes in methods and expectations, Career Development International, Vol. 13 Iss: 6, pp.497 513 Raybould, J., and Sheedy, V. 2005, Are graduates equipped with the right skills in the employability stakes? Industrial and Commercial Training, Vol. 37 No. 5, pp. 259-63. Roberts, G. 2005, Recruitment, and Selection, 2nd ed., Chartered Institute of Professional Development, London. Sackett, P.R. and Lievens, F. 2008, Personnel selection, Annual Review of Psychology, Vol. 59, pp. 419-50. Shiona C., 2010 Degrees of fit? Matching in the graduate labor market, Employee Relations, Vol. 32 Iss: 2, pp.156 170 Silvester, J., Aderson, N., Haddleto, E., Cunningham-Snell, N., and Gibb, A. 2000. A Cross- Modal Comparison of Telephone and Face-to-Face Selection Interviews in Graduate Recruitment International Journal of Selection and Assessment. Vol. 8. No. 1. Pp.16-21 Tineke C, & Maddy J, 2008. Global managers career competencies, Career Development International, Vol. 13 Iss: 6, pp.514 537
On balance, I want to say that life at college can become really unforgettable, if you find the right balance between studying, hanging out and self-improvement. With all of this under your belt you will be ready for your future more important stages and will face them prepared.