Leadership and management

1. Contents
Introduction ................................................................................................................................................................2
Leadership, Management &Organisational Issues Causing Low Growth.........................................................2
Leadership issue ....................................................................................................................................................2
Management issues ...............................................................................................................................................2
Organizational issues............................................................................................................................................3
Problems with the Graduate Management Development Programme ...............................................................3
Poor training & development scheme ................................................................................................................3
Poor recruitment & selection processes .............................................................................................................4
Poor remuneration package..................................................................................................................................5
Poor promotion opportunity.................................................................................................................................5
Problems with Management Development and Turnover of Managers ............................................................5
Conflicts in organizational culture......................................................................................................................5
Little management training and development...................................................................................................6
Conclusion..................................................................................................................................................................7
Reference ....................................................................................................................................................................8
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2. Introduction
Experiencing a corporate-level change, any company would often have to face human resource
devlopment issues including high employee turnover rate. Nevertheless, in case of Global
Holidays, the high turnover rate of graduate management trainee program and senior middle
managers needs analyzing in order to identify reasons behind.
Leadership, Management &Organisational Issues Causing Low Growth
Leadership issue
One of the most important causes that lead to poor leadership performance in a number of
companies including Global Holidays might derive from some deep differences between
employees’ expectation and the leadership style of leading people. According to Webb, Darling
and Alvey (2014), the organizational culture connecting employees together tends to be
constructed from leaders’ attempts in directing employees through their leadership style.
Nevertheless, leadership style proves diversified with the most typical representatives such as
transactional, transformational, charismatic, and servant leadership, as stressed by Robbins and
Coulter (2013); therefore, selecting one suitable leadership style for employees seems struggling.
For example, if Global Holidays expects to pursue transactional leadership style, reward,
punishment and standardized tasks would be put at the heart to force employees to maintain their
performance quality. However, Emery and Barker (2007) argued that transactional leadership
style would require a bureaucratic structure and legitimate control that could discourage
employees from exhibiting creativity, freedom and self-interest in their jobs triggering negative
morale, lower job satisfaction as well as decreasing performance. On the other hand,
empowering employees too much through charismatic or servant leadership styles could
deteriorate expectations of employees who need transparent instructions and orders to direct their
tasks into the proper ways.
Management issues
In terms of management problems,there are a variety of factors that cause unexpected results
between managers and subordinates, and management style could be highlighted as one of the
most potential risks. As asserted by Robbins et al. (2015), management style could be
categorized into two main spheres listed as democratic and autocratic styles. Autocratic is so-
called as authoritative management style that encourages managers to use coercive power to
make decisions by themselves without allowing any participation of employees into the process.
The low growth of Global Holidays might be resulted from this power-centralized and
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3. hierarchical management style since the open communication and innovation of employees
would be restricted, that would be likely to cause a high turnover rate, as concerned by Flipova
(2012). If democratic management style is chosen, employees could be empowered to involve in
the decision making process as well as communicating openly with managers to achieve the
mutual consensus. Nevertheless, this action tends to take the company longer time to deliver the
final decision, which is risky for business including service activities of Global Holidays.
Organizational issues
According to Omisore and Abiodun (2014), the organizational low growth could start from the
conflicts among the organization and those conflicts could happen at many types such as task-
related conflict, relationship-related conflict or process-related conflict. Among those, task-
related conflict refers to disagreement of different opinions and viewpoints that leads to opposite
assessment of task contents or forms, which could result in group ineffectiveness and job
dissatisfaction. Relationship-related conflict is triggered due to the serious personality
differences among staff while process-related conflict indicates the opposite opinions or
viewpoints about the role and responsibility of each individual in operate the process.
Problems with the Graduate Management Development Programme
Poor training & development scheme
The high rate of turnover issue for the Graduate Management Development Programme in
Global Holidays might be rooted from the poor contents and process of training and development
section. Normally, in terms of the company’s expectation, the Graduate Management
Development or Management Trainee Programme is designed to attract fresh graduate students
with no more than 2 years of working experience since their minds prove still remarkably fresh
to absorb quickly the organization’s corporate culture, requirements as well as training and
development programmes served for future tasks. On the manager trainees’ side, the most
attracted point of such a programme is identified as the opportunity to learn to grow so fast
through comprehensive including theories and on-the-job training activities covering a variety of
departments to select the most suitable one for their career development.As a result, it is
correctly analyzed that the content and process quality of training and development programme
plays an important role as the motivated factor to determine the behaviors of trainees. According
to Poulston (2008), poor training and development program is ranked at the top reasons for
highly increasing rate of turnover. For example, the ineffective training and development
programme could be reflected through the lack of transparent and detailed guidance for on-the-
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4. job training activities or lack of supports from direct supervisors or mentors who could be
responsible for encouraging trainees to find solutions to overcome challenging assignments. In
addition, management trainees prove critically fresh and energetic; therefore, they always wish to
communicate with the board of management frequently about what they do not understand or
what they expect to contribute values.Their behaviors focus onexhibiting their values to the
organization; thus, if leaders of Global Holidaysfind difficulty in communicating
comprehensively with graduate trainees, they might perceive the undervaluation of the
organization.Faldetta, Fasone and Provenzano(2013) assessed that in the hospitality industry the
organizational supports and continuous exchange between leaders and employees contribute to
form the effective answerfor reducing the high turnover rate.
Poor recruitment & selection processes
It is undeniable that the high rate of turnover phenomenon of graduate management development
programme suffered by Global Holidays might stem from the poor recruitment and selection
processes that have failed to bring back the most suitable and talent choices.Coyle-Shapiro et al.
(2013) argued that recruitment and selection processes play an important role in enabling the
organization to pursue competitive strategic human resource development. The problem of
Global Holidays could arise in either recruitment process or selection process or in both phases.
The company might fail to post the job adverts through efficient channels where there are a pool
of talent graduates available to access. In addition, one of the riskiest reasons leading to wrong
assessment in both recruitment and selectionprocesses, is the perception issue that aims to
mention the ways recruiters identify and interpret information of any candidate based on their
personal senses, as analyzed by French et al. (2011).According to Rees and French (2013),there
are a number of unrecognized mistakes related to interpersonal perception that would affect the
recruitment and selection processes negatively. Firstly, the halo and horns effects would make
recruiters pay attention to a few single negative or positive attributes of candidates to give full
appraisal. Secondly,recruiters might incur the clone effect referring to the situation where
candidates possess similar traits or characteristics with recruiters, which might make some
unconscious influences on hiring decisions rather than candidates’ abilities. In another case,
Global Holidays’ recruiters might be biased for or against a few candidates by early information
through CV screening phaseor somewhere; as a result, they tend to make selecting or omitting
decisionsto thoseprior to spending the next rounds to confirm their bias. Additionally,
stereotypes could contribute to discourage recruiters from assessing candidates’ talents properly
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5. since their characteristics such as nationality, for example, would be ascribed to somewhat social
views or perceptions.
Poor remuneration package
The attractive remuneration package could motivate graduate management trainees to increase
their performance whilst the poor one would make them dissatisfied. Those graduates are
selected because of much huge potential to become middle managers as fast as possible; thus, the
compensation given to them should be transparent and appealing enough to make them feel
comfortable. According to Hameed et al. (2014), apart from salary, some indirect compensation
forms like social security or paid holiday, specific, measurable and achievable incentives and
reward scheme plays an important role in motivating employees to generate the optimal efforts.
Poor promotion opportunity
The current CEO of Global Holidays is the former Finance Director; therefore, financial and
profitable aspects seem to be the most concerning points of the CEO rather than focusing on
promoting human resources. As a consequence, the promotion opportunities for management
trainees might be not as absolutely proper as what those graduates have been promised. Being
operated with 60 managers while the most essential roles are occupied by 5 directors, the
promotion opportunities for graduate trainees are likely to be limited.This issue might discourage
them from continuing the career with Global Holidays. Malik, Danish and Munir (2012)
discussed that job satisfaction is critically positive associated with the promotion opportunity
because it tends to reflect compensation improvement as well as recognition.
Problems with Management Development and Turnover of Managers
Conflicts in organizational culture
The high turnover rate of managers in Global Holidays could be identified to correlate to
conflicts in organizational culture after the buy-out between long-time senior managers and the
new board of management. The majority of managers have worked for Global Holidays in many
years; therefore, it is clear that their loyalty and commitment could not be denied. Nevertheless,
due to a long working time under the old organization culture, these middle managers tend to be
embedded into the used-to-bepolicies, values, processes, leadership and management styles,
reward and recognition scheme or training and development programmes, which prove much
challenging and time-consuming to adjust. In contrast, the new CEO and senior directors might
expect to implement their own new organizational culture features in order to create a new
Global Holidays as they expect. As a consequence, the culture conflicts could be easierto cause
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6. job dissatisfaction and low morale among managers than for lower level employees; however,
the ways how effectively Global Holidays could deal with conflicts seems depend on conflict
cultures. As asserted by Gelfand et al. (2012),there are three forms of conflict cultures in the
organization including dominating, collaborative and avoidant conflict cultures. Dominating
conflict cultures would encourage employees, managers and senior directors to identify the
winners and losers in conflicts rigorously whilst collaborative conflict cultures tend to enable all
members to negotiate with each other constructively to find conflict solutions. Meanwhile,
working in avoidant conflict cultures, all employees and managers are discouraged from
competing directly to solve conflict; instead, they are advised to withdraw to maintain the
harmony environment.
Little management training and development
Given too limited amount of management training and development time and programmes while
training contents prove quite substandard, senior middle managers would be demotivated to
attempt to increase job performance as well as leaving the company after a long period of
dissatisfaction. The Maslow’s hierachy of needs theory (1954) stated that humans
psychologically tend to be motivated by different needs at different time periods and the higher
their social status become, the more complicated their needs are. At the senior management role,
those manangers of Global Holidays would be hardly stimulated by basic physioligical needs;
instead, highly appreciated recognition of the organization could encourage them to contributed
much more energy. One of the most effective methods to show Global Holidays’ recognition is
to deliver attractive leadership and management training programmes in accordance with
challenging tasks so that they could find dynamics to demonstrate their training results.
According to Koselleck (2002), leadership and management development is a time-consuming
proces that requires a lot of attention paid to people being trained, which is demonstrated through
the leadership timeline model. The model asserted if the organization expects to train effective
leaders, they should be placed in questions related to past, present and future. The past aspect
indicates the leaders’ deep self-awareness process of their values, goals , emotions and driving
factors rather than perceptions, as analyzed by Mostovicz, Kakabadse and Kakabadse (2008).
The present area refers to the leaders’ ability to understand others’ emotional responses, goals
and motives in order to self-regulate their reactions and others’ whereas the future section aims
to describe the leaders’ highly motivated purpose that would work as the target for stimulate
them to generate their highest peformance with meaningful passion (Goleman, 1998). In short,
enhancing leadership and management skills for senior middle managers would require Global
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7. Holidays’ board of directors to pay critical attention rather than few ineefective programmes at
the college which maybe discourage them from continuing careers with the organization they
have devoted much attempts.
Conclusion
In conclusion, problems with leadership and management development programmes have been
discussed in accordane with the case of Global Holidays about ineffective training and
development scheme, poor compensation package as well as limited promorion opportunity. It is
recommended directors should spend more resources designing effective leadership training
structures so that they could both retain their talents and to attract the potential employees.
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8. Reference
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 Goleman, D. (1998). What Makes a Leader? Harvard Business Review, Vol. 76, No. 6,
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