Identification and Analysis of the Management and Leadership Issues
Organizational partnerships and collaborations are common phenomena in modern businesses. Symbiotic relationships between companies act as resources that are powerful enough to beat competitors. Since no organization is perfect, managers often settle for partners that cover their weaknesses and complement their business objectives. Consequently, the partnership between Cunningham Holdings Limited (CHL) Hospitality, Torres Strait Shire Council, and Queensland Tourism Authority (QTA) is strategic because the individual entities are specialized in different operations. For instance, Torres Strait Shire Council represents the local government which means it will ensure that all activities are in sync with the municipality’s laws and policies. Similarly, QTA enforcement of regulations and standards among all businesses in the state’s tourism industry. The two bodies will benefit CHL by ensuring that the newly developed resort is ultra-modern and meets the required tourism and hospitality standards.
However, business collaborations, particularly those with local authorities and government agencies, are a wicked problem that can hinder the success of CHL’s contribution to the project. Consequently, various leadership and management challenges are bound to arise as a result of the partnerships. The wicked problem, in this case, is closely aligned with the issue of poor communication as identified in CHL’s Organization Culture Survey. The three bodies have independent cultures, standards, and policies. Nonetheless, reconciling all of them is a significant problem because they will present different handling approaches.
The difference in management and leadership styles is the first issue that is likely to be encountered in collaboration. It is essential to understand that the involved organizations all have varying leadership approaches to handling their operations. For instance, most employers in the private sector prefer servant-leadership and democratic management styles because they believe in involving subordinates in company goals and visions directly. On the other hand, government agencies favor authoritarian and transactional leadership methods because the managers often expect unquestionable obedience and rely on incentives such as bonuses to motivate employees. Consequently, controlling a group of independent organizations under a single management and leadership approach will need elaborate communication strategies.
The other significant challenge tied to poor communication that will face the partnership is discrepancies in responsibilities and skills. When different entities are assigned the same task, it is expected that they individually play their roles diligently. However, the problem comes when there are no clearly outlined job descriptions. Additionally, controversies may arise when, for example, Queensland Tourism Authority believes it can better handle a section of the project than CHL. In order to solve such disparities, it is necessary that the leaders representing the three organizations develop a clear communication structure that outlines job descriptions.
Associated Management and Leadership Theories
Systems Management Theory
When selecting a theory that will help mitigate the communication issue arising from the wicked problem, it is crucial to choose one that considers all participants. The systems management approach to collaboration gives an elaborate strategy to the organization and administration of the three companies as a single unit (Kessler, 2017). This ideology equates project and business partnerships to a human body which entails different elements. These components depend on each other and are expected to work in coordination for the larger system to achieve its purpose. Consequently, CHL, QTA, and Torres Strait Shire Council have to be deliberate in communication if they are to build an exceptional tourism and hospitality resort. Systems management theory is based on interrelations, synergy, and interdependence between existing subsystems, which in this case are the individual organizations. Moreover, the ideology applies to the wicked problem because it considers employees as instrumental in the success of a project. It will be important for the collaboration to consider the attitude and roles of workers from the different firms to ensure they are operating as a unit.
Contingency Management Theory
Companies are never the same because they deal with different operations and a diverse workforce. Similarly, it is impossible to identify a single administration approach and apply it to all organizations. The contingency management theory applies to CHL’s case study because it demonstrates several factors to be considered before settling on a management approach. One crucial element to consider is the size of the organization, and in this case, the project involves three distinct corporations, which means their functionalities need to be harmonized (Wright, 2016). Secondly, it will be necessary to select a leadership approach that accommodates employees who have been used to the various organizational cultures. Since the partnership is extensive, the involved managers will have to pick a system that is flexible enough to accommodate everyone.
Bureaucratic Management Theory
It is essential to have a clear communication structure in an organization, mainly when working with different partners. The bureaucratic management theory developed by Max Weber centers its argument on the importance of clear rules of governance and the application of hierarchy in organizational administration (Kessler, 2017). The ideology is well-associated with the CHL’s wicked problem because it introduces a clear chain of command, division of labor, and strict rules and regulations that will all be instrumental if the three corporations are to work together. Since the participants of the tourism project work under different cultures, it is necessary to introduce temporary standards that are to be followed by everyone. However, communication will be important in ensuring all the leaders from the different organizations agree on the new regulations.
Behavioral Leadership Theory
The success of any project depends on the qualities and skills of the manager in charge. Consequently, in this case, the leaders from the various involved organizations play a great role in completing the new tourism and hospitality resort. Behavioral leadership theory suggests that it is not the attributes of a leader that determine their accomplishments but their actions, particularly in challenging situations (Asrar-ul-Haq & Anwar, 2018). As a result, the theory will demand that the representatives of CHL, QTA, and Torres Strait Shire Council be at the forefront in setting examples to the subordinates with regard to their behavior. The leaders’ reaction to the wicked problem of collaboration influences their subordinates’ response toward the same.
Literature Review
The wicked problem CHL is bound to face as a result of their decision to participate in a partnership with QTA and Torres Strait Shire Council is also faced by other organizations. Similarly, there is previously conducted research that has studied the challenges in inter-organizational collaboration and suggested possible solutions. For instance, in her study on the current state of inter-company partnerships, Gazley (2016) identified collaboration in business and projects as a complex phenomenon. Consequently, she suggested a need to simplify the sophistication when modeling the relationships between the involved organizations. For instance, it is imperative that the managers understand that they are in control of the decision-making processes, and therefore, they have the power to discuss their thoughts and make the right choices. Gazley (2016) discourages the use of one-dimensional approaches in dealing with partnerships to integrate activities because they do not accommodate the multidimensional complexity. All participants of the collaboration need to be involved in developing a comprehensive approach to achieving the goals as a unit.
Sustainability is also a key component in achieving project success through joint collaborations. Kwibisa and Majzoub (2018) researched the issues of inter-organizational partnerships in Scania County, Sweden, and realized that successful collaborations are dependent on the stakeholder’s ability to view the problem from different angles before developing a project plan. The focus should not be on the internal benefits of the task at hand but on its contribution to the growth of the community. Kwibisa and Majzoub (2018) also noted that partnerships, particularly those involving local and national government agencies, should be based on strengthening and complementing the participants involved rather than comprising organizational policies. The process of developing the strategies need to be joint, and the subsequent operations parallel to avoid unnecessary conflicts. Mutual continual interaction is vital in ensuring the organizations are in agreement throughout the entire project.
Humans, both managers, and subordinates, are integral to the success of partnerships between organizations. It is imperative that the involved participants share norms. According to Kwibisa and Majzoub (2018), behaviors that encourage reciprocity and trust are crucial in collaborations because the parties involved have to believe that their partners will be faithful to the commitments made. Moreover, it is necessary that the representatives of the organizations are competent and consistent in practicing such values to avoid costly governance mechanisms such as the use of contracts and surveillance (Kwibisa & Majzoub, 2018). However, efforts should be made by all participating entities if the trust should be achieved in the partnership.
The majority of modern inter-organizational partnerships are geared towards corporate social responsibility (CSR). Consequently, Escher and Brzustewicz (2020) conducted research on collaborations that focus on achieving sustainable development goals (SDGs) in 18 companies. The authors noted that partnerships also have adverse effects on individual company operations. For instance, the researchers noted that joint collaborations with public institutions often lead to increased expectations of employees. Primary organizations often want to prove to their partners that they are obliged to set standards and, as a result, affect the morale and attitude of employees. Moreover, for new projects, Escher and Brzustewicz (2020) identified financial implications as another negative impact of inter-organizational collaborations. Companies are forced to train their workers to be fit for the tasks within a short time, which can also cause mental strain.
Consequently, member companies of partnerships should prioritize the needs of employees who will be participating directly in project-related activities. Additionally, Escher and Brzustewicz (2020) suggest that personal bonds among subordinates from all involved organizations and business-to-business relationships should be handled with caution to maintain a positive working atmosphere. Successful joint projects depend on the nature of communication between involved parties.
Partnerships between public and private organizations are of great importance because they address complex societal issues. However, Schruijer (2020) identifies dynamics in such project-oriented relationships that might hinder the achievement of related tasks. The author notes that the differences in the organizations involved, the number of participants, and multiple interdependencies need to be addressed for successful collaborations to take place. Otherwise, tensions might arise among the different sets of employees and make it harder for the leaders to control project activities (Schruijer, 2020). Focusing on simplifying the relationships between everybody involved in the partnerships ensures that the project is successfully completed regardless of any challenges.
Managing Wicked Problems using Theories and Models
Management and leadership theories and models are developed to help mitigate organizational issues and wicked problems. Consequently, how a company integrates related ideologies into its policies and strategies determines its success. For instance, behavioral leadership theories advocate for managers to act as role models because they have the power to influence their subordinates. In collaborations like in the case above, the approach demands CHL leaders be at the forefront. Working with new people and accommodating a different culture is a challenge to workers. Therefore, employees will need guidance and support from managers to navigate through the problems that accompany joint projects. Executives and senior-level managers have to exercise character in developing a working structure that still incorporates the needs of subordinates during the decision-making process. Moreover, communication is critical in behavioral leadership theory because how managers present their ideas determines the workers’ responses.
Similarly, the capabilities of an institution are only as good as the set standards—the bureaucratic management theory in helping CHL manage wicked problems. In order to address any business challenges, it is important for a company to have particular procedures and regulations they can always refer to become make critical decisions. This approach is vital in achieving accountability and responsibility among leaders and also subordinates because everybody adheres to the stipulated directives. Moreover, division of labor as a principle of bureaucratic management theory ensures that tasks are allocated to individuals with the best combination of skills. The strategy will not only enhances efficiency but also prepare its workers to understand their roles and responsibilities during inter-organizational projects. Furthermore, strict adherence to the rules eradicates cases of inequality by ensuring fair judgment and treatment whenever there are internal conflicts. However, CHL should be careful not to use the theory as the only management approach. The technique only allows for one-way communication due to its hierarchical structure, which hinders feedback from subordinates.
Consequently, it is necessary for CHL to assess situations before utilizing a specific leadership and management technique. The contingency approach to organizational administration will help the company a management style based on the circumstances. Wicked problems present challenges that might take time and resources to address, and therefore it is essential for CHL leaders to implement a strategy after carefully analyzing the situation. For instance, working collaboratively with Queensland Tourism Authority and Torres Strait Shire Council might demand a different management style and not the one employees are used to. A delegation approach might be more effective considering two more organizations will be involved in the tourism and hospitality resort project.
Moreover, the contingency management style will also have benefits on CHL’s leadership since administrators get to improve their decision-making skills. Nonetheless, the organization should note that contingency management theory is a complex approach because it is difficult to define or categorize eventualities, and therefore implementing it requires critical reasoning. Additionally, there are few sources available to support the idea that solutions to related situations depend entirely on management decisions.
Recommendations on CHL’s Leadership Development Program
To progress in various company operations, CHL needs leaders that are competent enough to meet the global standards of ethics and sustainability. Most organizations often neglect the essence of leadership development programs (LDP), yet they are crucial in preparing subordinates for future management roles. Therefore, it is necessary to create a plan that will help employees gain the skills essential to progress in their careers. Additionally, the programs promote creativity and innovation, improved team productivity, and high employee morale.
Define the Leadership Needs
The first step in ensuring CHL employees are prepared to be exceptional global leaders is identifying current and future gaps within the management. For instance, it will be necessary to note employees in leadership positions about to retire or leave the company and pinpoint the attributes that will be missed when these individuals are gone. CHL has already established its name internationally, and it is crucial that its position is not affected whenever managers leave. Moreover, it is essential to evaluate CHL’s short-term and long-term strategic plans so that the LDP can be aligned with related goals. For example, if CHL aims at embracing diversity and equality in the workplace, the LDP activities should include these elements. Analyzing internal leadership challenges is crucial in developing ethical managers.
Focus on Developing and not Training
Whereas it is true that leaders are made and not born, it is also important to note that they are not manufactured. Instead, they are natural and developed into individuals who are not only qualified but capable of steering teams towards organizational success. Consequently, CHL must include activities that push participants to learn and grow in the leadership development program. For instance, giving candidates opportunities to make decisions with ethical dilemmas will help them learn how to respond to related situations in the future. The LDP should be more practical than theoretical to ensure the participants learn the skills while executing. Examples of productive leadership development programs include mentoring, job rotations, organizational planning, and project leadership. Additionally, it is important to provide the participants with the proper support through coaching and feedback. CHL employees need to understand that LDPs are molding to be better leaders and not mere organizational activities.
Measure Results
The success of any program is determined by the progress of the participants, which requires assessments. Consequently, before starting the LDP, CHL will need to identify approaches used to measure the program’s impact on employees and the organization in general. For instance, it will be important to note whether peers are convinced that the LDP’s participants are becoming influential leaders. Alternatively, the management can evaluate the effect of the program on workers’ leadership responsibilities. Moreover, CHL should understand that the aim of leadership development programs is to improve employees’ leadership skills to help them perform better and not as a criterion for promotions. Individuals in charge of the LDP should focus on the participants’ abilities by noting their strengths and working on their weaknesses (McDonald & Letzring, 2016). Finally, leaders who are capable of working in ethical and sustainable environments are those who are self-motivated. Therefore, CHL should also use this as a criterion to measure successful individuals in the LDPs.
References
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Escher, I., & Brzustewicz, P. (2020). Inter-organizational collaboration on projects supporting sustainable development goals: The company perspective.Sustainability, 12(12), 49-69. Web.
Gazley, B. (2016). The current state of interorganizational collaboration: Lessons for human service research and management.Human Service Organizations: Management, Leadership & Governance, 41(1), 1-5. Web.
Kessler, E. (2017). Why do management theories say what they do? Toward a management m-theory.Group & Organization Management, 42(5), 598-629. Web.
Kwibisa, N., & Majzoub, S. (2018). Challenges faced in inter-organizational collaboration process. A case study of region Skåne.Journal of Sustainable Development, 11(5), 34. Web.
McDonald, J., & Letzring, T. (2016). Judging personal values and personality traits: Accuracy and its relation to visibility.Journal of Research in Personality, 65, 140-151. Web.
Schruijer, S. (2020). The dynamics of interorganizational collaborative relationships: Introduction.Administrative Sciences, 10(3), 53. Web.
Wright, P. (2016). Making great theories.Journal of Management Studies, 54(3), 384-390. Web.