Significance of Management Philosophy in Organizations
Discuss about the Management Philosophy.
Significance of Management Philosophy
The development of an effective management philosophy within an organization aimed at developing the skills and potentials of the internal people while also empowering, involving and motivating them to fulfill business and institutional objectives spells success for a firm (Tam, 2013). The significance of the management philosophy lies in the fact that the employees of the company could be aligned with the goals and objectives of the organization. The employee need to be made aware of the fact that the employees need to work towards the achievement of the organizational goals. The other importance are as follows:
- It helps in the achievement of the organizational goals: The achievement of the goals is ensured by the use of the management philosophy. The various factors of production organizes the resources in an effective manner, such that the organizational goals could be achieved successfully.
- Optimization of the utilization of the resources: The management philosophy ensures that the physical and human resources are utilized successfully. The employees are aligned and motivated in such a way that the utilization of the resources could be optimized.
- Cost reduction: Another significance of the management philosophy is the cost reduction of the resources, with achievement of high productivity. Thus, the management philosophy motivates the employees to use the minimum resources and yet have high productivity.
- Establishment of equilibrium: The management philosophy encourages establishment of equilibrium in the work culture of the organization. Thus, the significance of management philosophy is immense for any business organization.
The Ascott limited is one of the largest international serviced residences in the world. It is an owner operated with more than 26,000 operating serviced residences. Ascott Limited headquartered in Singapore operates as owner-operators of internationally serviced residential properties. Ascott operates as a multinational organization with its operating bases spread along global markets like United States, European and Middle East countries and also to other Asia-Pacific regions. The total number of operated units along different global regions amounts to 52,000 units (The Ascott Limited, 2017). It spans over 101 cities all around the world, across almost 29 countries. The company Ascott Limited is one of the subsidiaries of the CapitaLand. CapitaLand is one of the largest real estate companies in Asia. The merger and acquisition activity that involves the hospitality and real estate took place from the period of 1984-2000. This merger and acquisition activities in Singapore among the major real estate gave rise to the Ascott Limited. In the year 2014, the company established its 30 years of service in the residency business. The company has been awarded with various prestigious titles, such as the leading serviced apartment brand, the best-serviced apartment company, the best-serviced residency brand.
The mission statement serves as a synopsis defining the strategic direction of a firm operating in a specific industry. The generation of the mission statement ideally contributes in the development of the strategic plan for a long term period of an organization. The mission statement is required to be written in such a fashion where it essentially reflects the activities undertaken by a firm; rationalizes the set of activities conducted by the firm while also indicating the different stakeholders impacted by the activities conducted by the firm. The managers are required to circulate the mission statement thus generated between the different employees in the firm (Winston, 2013)
Philosophy of a firm reflects on the ideology that is required to be undertaken by the business managers in directing the accomplishment of the business objectives and also to the type of treatment required to be offered to the subordinates and the internal members of the organization. Management Philosophy ideally focuses on the development of inter-personal relationships between people belonging to different levels and departments in an organization. Further, the concept of Management Philosophy essentially reflects on the set of core values and beliefs that are put into practice by business managers in the decision making process (Nørreklit, 2017).
Ascott Limited: An Overview
Management Philosophy is evaluated to have considerable impacts on the managerial process and effectiveness of the firm. Research conducted over textile mills has reflected that the existence of a ‘quick profit’ and also altering manufacturing managerial policy potentially affected the morale and efficiency of the employees in the firm. On the contrary, the existence of a ‘product conscious’ and also a sustainable profit managerial philosophy contributed in enhancing the expertise and efficiency levels of the staffs in a firm for generating greater productivity. It is also argued by some management scholars that the existence of short-sighted management philosophies accounts for affecting the productivity and morale of staffs operating in European institutions (Prasad & Negandhi, 2012).
Research conducted over business institutions operating in China reflected that the deployment of western management philosophy had considerable influences on the human resources policies of the firms. It potentially affected the motivation and productivity levels of the Chinese employees in that they failed to effectively understand their roles in the firm owing to the rooting of Human Resources policies to western management philosophies. The managerial philosophy of the Chinese firms is essentially linked to the human resources policies and objectives where it is synchronized with the personal values, attitudes and cultural parameters of the organizational members (Tam, 2013).
Different types of management philosophies are underlined as under.
The above management philosophy ideally focuses on evaluating the manner the power is divided between the higher authority and the subordinate staffs operating across different levels in the firm. It further reflects on the fashion the total task of the firm is ideally divided between the management and the other staffs thereby helping in identifying different job roles and responsibilities and the chain of command in the firm.
The second type of management philosophy essentially focuses on inspiring and motivating the employees in an organization for generating greater productivity and efficiency. Such management philosophies ideally contribute in developing a work atmosphere conducive for employees in meeting the objectives and goals of the firm in an effective fashion (Harte, 2014).
The third type of management philosophies focuses on identifying different types of crisis and dangers that would tend to emerge along the course of conducting the business operations. The management philosophies essentially focus on detecting different critical issues to business and thereby planning in resolving such through deployment of different resources (Poitras, 2013).
The fourth type of management philosophy essentially focuses on evaluation and assessment of relationships of the business institution with its prospective customer base. It thereby aims in evaluating the presence and the use of different customer relationship tools like customer relationship management and transactional marketing applications in the company. Transactional marketing applications are incorporated for enhancing the level of basket size of the customers contributing to revenue and profitability growth while relationship marketing applications are used for enhancement of the relationships between management and employee base in a firm (Matsushita, 2011).
Leadership is identified as an act through which an individual playing the role of the leader contributes in generating an effective and inspiring vision for a future period. Further, the leader is also responsible for motivating and also inspiring the internal members of an organization for fulfilling the visionary objectives. The leader is also required to direct, monitor and render needed infrastructural and knowledge support to the organizational members for adequately delivering and fulfilling the objectives underlined in the vision. Finally, the leader is also required to adequately coach the organizational members for developing their personal expertise and thereby in developing a team to adequately contribute in meeting the vision outlined (Maxwell, 2012).
Mission Statement and Strategic Planning
Trait Theory of Leadership
The trait leadership theory rightly identifies that organizational leader essentially bears certain specific qualities or traits that essentially contribute in identifying an individual as a born or made leader. Certain specific qualities like needed level of intelligence, adequate responsibility, creative and innovative skills are potential traits that are required to be identified in an organizational leader (Rozkwitalska, 2012).
Behavioral Theory of Leadership
Unlike the trait theory of leadership that focuses on identifying leadership attributes of an individual based on mental, physical and also social characteristics, the behavioral theory of leadership aims in identifying the behavioral parameters of a leader. Behavioral theory of leadership ideally contributes in dividing leaders into two specific categories like those involved with internal members and those involved with the organizational tasks (Shi & Wang, 2011).
Contingency Theory of Leadership
Contingency theory of leadership tends to identify that no specific leadership style adequately fits in different situations. Rather, the contingency theory of leadership focuses on identifying different types of leadership styles that would adequately suit the different situations or cases for which they are being undertaken. The Contingency Theory of Leadership reflects on the understanding developed by the leader on a case based framework that ideally contributes in the choosing of needed leadership style (Podsiadlowski, Gröschke, & Kogler, 2013).
Transactional Leadership Theory
Transactional leadership theory focuses on the identification of leadership models that would adequately contribute in addressing transactions conducted between a leader and the subordinate group of followers. The transactional leadership theory thereby requires the leader to rightly communicate, interact and motivate the followers for contributing in the meeting of assigned objectives and tasks (Olsen & Martins, 2012).
Transformational Leadership Theory
Transformational leadership theory requites the business leaders in generating new vision and mission objectives for the organization and thereby in communicating the same to subordinate groups along different departments. The same contributes in motivating and empowering the subordinates to take part in decision making activities and also actively collaborate in addressing of organizational tasks and objectives. Moreover, transformational leadership theories also focus on enhancing the level of trust between leaders and subordinates in the meeting of group objectives (Ferdman & Sagiv, 2012).
The management philosophy of an organization gains needed significance when the same is effectively blended with the people management practices of the institution. The fitting of management philosophy with people management practices of a firm is potentially reflected in the following model.
The optimal fitting of people management approaches with the management philosophy of a firm contributes in the development of team manager where large numbers of internal members are employed for the meeting of increased organizational objectives. The organizational manager is required to effectively communicate the changing mission and vision objectives with the subordinates while also encouraging their involvement in decision making activities. Further, the blending of management philosophy with people management also requires the incorporation of positive reinforcement tools like incentives and also designing of effective training and employee communication programs for building trust (Estrada, 2015).
Different Types of Management Philosophies
The management philosophy and the people management have an intrinsic relation with each other. The people management is dependent on the management philosophy. The management philosophy highlights the philosophy of the business organization. The employees are aligned towards the fulfillment of the mission and vision of the organization, by effective alignment of the management philosophy. Based on the management philosophy, the activity of people management takes place. The people management activities are essential activities. The management philosophies align the employees with the goals of the organization. However, the people management needs to be done such that the employees could adhere to, the management philosophies.
However, if the people management and the management philosophies contradict with each other, then the employees would fail to work towards a particular goal, since the people management and management philosophies would contradict with each other, thus confusing the employees. Moreover, it is essential that the people management in done, such that the organizational goals and the management philosophies are fulfilled. In Ascott limited, people management is done quiet efficiently. The needs of the employees are identified and they are fulfilled in order to adhere to the management philosophies. It is also important to note that, with the use of coaching leadership in the company, it has been easier for the employees, to understand and evaluate their own performances, along with implementing the required improvements.
-Ascott Limited focuses on enhancing the value and experiences gained by customers through generation of quality products and services in the real estate sector.
-Ascott Limited encourages its internal people to work as high performers both as individuals and in groups. The same is conducted based on the generation of potential opportunities in the firm.
-Ascott Limited also focuses on generating sustainable returns to its shareholders spread over a global basis and also to form an effective network of potential investors.
-Ascott Limited’s mission is to focus on promoting social, economic and environmental development of the different communities where it has set up its branches (The Ascott Limited, 2017).
The mission statement of Ascott is as follows: To inspire and enable the development of staff through the spirit of partnership and the implementation of effective human resource practices
The management philosophy of Ascott Limited can be effectively analyzed in terms of the core values based on which Ascott Limited operates.
-The management of Ascott Limited focuses on reflecting and developing mutual trust, dependence and respect between people operating along different levels and departments in the business institution. The development of needed trust and respect between internal people in a firm serves as a fundamental requisite for generating a high performing organizational culture that encourages the growth of diverse teams in the firm.
Further, the management philosophy of Ascott Limited also generates needed significance to the aspect of integrity such that the management body focuses on conducting on what is right and ethical at a given moment and also aims in enhancing and sustaining the trust generated by the stakeholders towards the firm.
The management philosophy of Ascott Limited also focuses on fostering a climate of innovation and creativity such that the same contributes in enhancing the value generation capacity of the firm in the long run. Finally, the management philosophy of Ascott Limited also focuses on pursuing the parameter of excellence and tends to persevere it in terms of conducting the different business activities (The Ascott Limited, 2017).
Coaching leadership practices are followed in Ascott Limited such that where effective coaching is rendered to both existing and new staffs to hone up their skills and efficiencies for dealing with emerging contingencies and situations while focusing on delivering the right quality of customer servicing. The incorporation of coaching leadership approach as an extension of the contingency leadership style contributes in increasing the level of confidence of the staffs while also enhancing the level of collaboration between managers and subordinates (The Ascott Limited , 2017). In the coaching leadership style, the coaching leaders defines the tasks and roles clearly and the follower follows the guidelines. However, the coaching leaders seek suggestion from the followers as well. This leadership style has an open opportunity for the employees to give suggestions along with sharing of knowledge and experiences.
The Ascott Limited group of companies uses the coaching leadership process. They have a wide range of on-job training programs that are job specific. This is also a part of the coaching leadership that is followed in the organization. The coaching leadership is important for the enhancement of the skills of the employees. The newly recruited employees could be inducted into the organizational culture using the coaching leadership. Moreover, the center for excellence of the company also assists the employees to work successfully towards the fulfillment of the organizational goals. The coaching leadership is an efficient leadership method that could be successfully applied in the workplace setting that requires rapid improvement. This style of leadership is helpful in assisting others to enhance their skills. The strengths could be enhanced under this style of leadership since the employees are coached and trained. The weaknesses are worked upon by the employees and mitigated or curbed down by the use of centre of excellence.
The leaders under this style of leadership guide the employees and motivate them effectively. The guidance of the leaders is effective and helps the employees to work towards the organizational goals, along with the development of the required expertise. The leaders are efficient guides and they assist the employees successfully. The attributes of the leaders of the coaching leadership are as follows:
- The leaders provide plenty of feedback to the employees on the basis of their performances.
- There is huge scope of improvement of the employees, based on the feedback given by the leaders.
- The leaders provide tasks and assignments to the employees.
- The leaders provide in depth guidance to the employees.
- The leaders motivate the employees successfully.
This style of leadership has various pros and cons. One of the greatest advantages of this style of leadership is the improvement of results among the employees. Superior performance is also achieved by the employees, with the guidance of the leaders of the coaching leadership style. Moreover, positivity among the employees is also observed. The enhancement in the performance among the employees creates a positive workplace.
However, the greatest disadvantage of this leadership style is the need for time and patience. In order to achieve the desired result, a lot of time and perseverance is required. Thus, in practice, this leadership style might not be as effective as theoretically.
Ascott Limited focuses on the development of its internal people through the development of effective coaching programs that contribute in enhancing their leadership skills and also the productivity and performance potentials for addressing emerging and changing needs of customers with needed confidence. Further, the organizational managers also focus on encouraging the staffs through generation of growth opportunity in the firm and also generating rewards for encouraging needed performances (The Ascott Limited , 2017).
People management is given adequate importance in the Ascott Limited. The people management is an essential activity for the organization, as this would enhance the performance of the employees. However, if the people management and the management philosophies negate with each other, then the employees would neglect their work, as they would be confused to work towards a specific objective. Since the people management and the management philosophies would repudiate with each other. Moreover, it is essential that the people management and the management philosophies work towards achievement of a specific goal. In Ascott Limited, people management is done efficiently, along with aligning to the management philosophies. Thus, the employees are satisfied and they work diligently towards the fulfillment of the goals set by the company and ensures customer satisfactions. The necessities of the workers are distinguished and they are satisfied keeping in mind the end goal to cling to the administration methods of insight. Thus, with efficient and effective people management, Ascott limited has been successful in achieving its organizational goals.
The analysis reflects on the strategic potential of Ascott Limited based on the presence of effective mission objectives aimed at meeting the needs of different stakeholders. It also reflects the existence of effective people management practices at Ascott Limited based on coaching and also generation of rewards and opportunities for internal people. This assignment highlights the importance of management philosophy for any business organization. The management philosophy of Ascott Limited has been highlighted along with the mission and vision that the company has set, to be achieved. The importance of people management in the organization and the relation between the people management and management philosophies have been discussed in details. Various leadership styles that are conventionally used in the business organizations have been mentioned along with the specific leadership style that is used in the company Ascott Limited. The coaching leadership style is used in the company. This style of leadership is used in companies for enhancement of the performances of the employees. In the coaching style of leadership, the needs of each employee are identified and a proper guidance is provided to them in order to enhance their skills. The company has an efficient leadership style and the employee satisfaction of the company is also high. However, if the management philosophies are stated more clearly, then the employees would find it easier to align themselves with the organizational goals. Moreover, people management needs to be done more effectively, such that the company is able to enhance its performances.
Ascott Limited can focus on the incorporation of a 360 degree performance appraisal program for helping in assessing the performance of internal members based on the viewpoints of different internal and external stakeholder groups. The same would contribute in the generation of quality feedback to the internal members while also potentially coaching them to hone up their skills and potencies in areas where they have scored less. It would also help Ascott Limited adequately address its management philosophy associated to generation of service excellence and in enhancing an atmosphere of mutual trust in the workplace. Timely appraisal of the employees, along with offering bonus and incentives to the employees, would enhance the employee satisfaction, along with diligent and hard work of the employees. Moreover, it could also be recommended, if the coaching leadership style could be combined with some other leadership styles, such that the employees might be able to express their innovations efficiently. The recommendations also include the collection of feedback from the employees such that they might give suggestions, for the enhancement of the organization.
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