Introduction
In any type of organization, leadership and management must always go side by side through which the organization should get the maintenance of its management system. The leadership and management development in an organization is the vital corporate part which is said to be capable of rationalizing the things in the organization as per the purposes. This concept is important just because it enhances the development of necessary skills which can eventually make the enhancement of consistency and discipline within the organization (Armstrong & Taylor, 2014). Therefore, the leadership and the communication activities within the organization are used to motivate the employees along with their proper management. At the same time, management development is the part that covers the cognitive as well as the behavioral skills within the organization. It will also take care of the enhancement of the environmental skills of the organization (Carmichael, 2011).
In the long run, management development can be said to have an impact on the leadership values in the organization. With its development, it carries out the development of the leadership within the employees through training that will affect their attitudes, values, decision-making, and other skills. Similarly, this report involves the part in which there is the study reflected the three types of the case study. The case study is based on the sales department of NovaTek Fibre and Textile Company Limited (Cherry & Jacob, 2015). In this report, the action of an employee studied who was appointed to be the leader. Further, the report will bring out the problems the employee of the organization faces during various types of situations in the organization. Due to this reason, the report includes the real issue involved in the development of the organization. Along with that, it will make the differentiation or separation of the strategic issues from other operational issues (Daft, 2014).
After analyzing the problem behind Turner being the sales manager in NovaTek, there is a rise of many strategic issues that must be identified in the report which is the part of the human resource department. It is just because from the point of view of the human resource manager report must include the possible alternative along with a plan which will help in addressing the issue raised in the organization (Daire, Gilson & Cleary, 2014). Therefore, this report will bring out the part of the issue with which Turner is dealing along with its cause and further with the description of which will provide the details regarding the leadership and management development in the organization. This ideology will provide the particular way through which the organization can go forward (Fernández-Muñi et al., 2014).
Analysis of the Issue
The case study involves the organization, namely, NovaTek Fibre and Textile Company Limited, which deals with the production of high-insulation materials in the market. The insulation materials of the organization are generally of high Ohm value which, in some instances over the market is quite hard to sell (Goetsch & Davis, 2014). The prices of these materials are kept at a higher range irrespective of any of the technical advantages over the competing products. However, on the other hand, it can also be said that the market entry of these materials is also of good value so they become quite successful as per the market. Due to this reason, the market value of the products rises and so does the competition.
This scenario of the market demands more and more products from the company, with the result of which the capacity of the production of the organization that exists is fully sold. Along with that, the company is planning to open a new branch which will deal with more and more production having the production capacity more than the previous one. As per the scenario of the case, Charles Turner has been appointed as the Manager of the Electrical Insulation Material coming under the sales department of the organization (Giacalone & Rosenfeld, 2013). As per the given scenario of the appointment as a Manager, the sales director of the organization expects Turner to make an increase in the number of sales. Turner was mostly expected to sell the most amount as per the extra capacity of the new plant within a year. So it can be said Turner has to make the best of his efforts along with his team to make the continuation of selling as before with more effort.
The sales director along with providing the position of Manager to Turner also provided the part that to manage the “house accounts”. In this situation, Turner can be said to be overloaded with work as with managing the house accounts Turner will have to manage the five essential and very large customers of NovaTek (Kyratsis et al., 2016). These are those customers who can account for up to more than 25 % of purchases of High Ohm products. Due to this reason, there will have Turner gets worried just because out of all the sales in the house accounts were the sales of Bucks Electrical Cables Turner assume that he will lose this part as it makes the customers unhappy generally. Out of all the psychological conditions of Turner about the worries and fear and everything the most important that made Turner worried is the reaction of Fisher. Jim Fisher is one of the employees of NovaTek handling the Northern and Scottish Areas. The profit analysis of the organization very well shows that though Fisher is in his late twenties still he is mostly showing about 44% of the sales of High Ohm materials. At the same time, Turner is showing only 28% which can be said to be before his promotion (Novatek, 2017).
Due to this reason, Turner became quite worried and confused at the time of promotion that why he has been given a promotion in place of Fisher. Though Turner does not know Fisher personally, he only heard about him from his predecessor, Frank Watson in glowing terms. He had listened of Jim Fisher as being a self-confident man who is quite dynamic, intelligent, and brilliant in making relations in the market through which the selling of industrial products becomes easier. It is quite clear in the records of sales in the area of the Northern and Scottish markets (Muethel & Hoegl, 2016). At the same time, while looking over their profile of Turner, It is seen that he is quite thorough in his work and completes his work by being methodical and cautious. Along with that Turner is also quite painstaking. This is likely to be the first major issue of the case study (Parris & Peachey, 2013).
With a cautious nature, Turner makes up to become slow and hesitant. Therefore, by being of such nature Turner analyses all the facts related to the situation and then takes any decision (Thorpe, Mumford & Gold, 2009). Through this, the first issue analyzed became quite true, and gradually Turner found himself to be potential for handling the operational activities rather than handling a team. With this, he doubted himself and his leadership qualities which can be an important issue for the growth of the company.
With the promotion of Watson and Turner getting into the position, the first organizational structure of NovaTek is drawn below:
Figure 1: NovaTek Structure
Source: (Novatek, 2017)
Similarly, the problem raised in this part of the structure is their vacancy for South and Midland Area Manager which, as per the director’s instructions needs to be filled and needs two reports. In this case, Turner has doubts about his skills to make a perfect business report, and along with that, he has a fear for the director as he just only came up with a promotion. So, he does not want to make the director disappointed (Thorpe, 2016).
Hence, Turner decided to seek the help of Fisher in these processes to deal with the situation without any resentment in the new position. Those qualities, Fisher helped Turner with producing many ideas which could help make the report, or in fact, it can be said that Fisher made the report. Also, Fisher took the responsibility of dealing with the clients for some issues with Bucks Electrical Cables. With this scenario, later on, Fisher provided the proposal for the vacancy of Area manager and got promoted to the Area Manager of South and Midland as a result of a good amount of sales. After some time, Turner felt guilty for relying upon Fisher created some distance in their professional relationship (Middlehurst, 2015). The next issue raised here is the reliance of Turner on Fisher by which he formulates the problem and lets the subordinates deal with it. In that case, he maintained a delegation with Fisher and led a trouble-free life which was the major lacuna of being a manager (Novatek, 2017).
In later conditions, the work in the new plant started and there occurred a new organizational structure that again involved the strategic plan of Turner which was not quite of Turner it was of Fisher. Many were newly recruited and were supporters of Fisher, Pamela for North, and Murdoch for Scotland (Goetsch & Davis, 2014).
The third one is for the Midlands area, Colin Blackham, who was an old person who has been transferred from another department. In this structure, Fisher took a wide range of responsibilities through which he proposed to take the responsibility of “house accounts” as well as said that he would keep an eye on the exports (Goetsch & Davis, 2014). In this way, he took control over all vital sections with the consent of Turner. The structure of the organization formed due to such activity is depicted below:
Figure 2: Sales Team
Source: (Novatek, 2017)
As long as this structure is carried out the third issue raised was the strains in the organizations where Blackham criticized Turner regarding the other aspects of Fisher along with his other behavioral aspects. Therefore, the major issue finally rose due to the incapability of Turner which led to the dissatisfaction in the employees such as Blackham (Giacalone & Rosenfeld, 2013).
Further, Fisher proposed a proposal to be the deputy manager which Turner thought to be better to shut down Blackham. It shows nothing but the incapability and mismanagement of Turner in the whole scenario. The major thing that the sales director observed after listening to Turner in detail is only the lack of managerial qualities in Turner which was resulting in various issues related to the employee management and other management processes of the organization.
Literature Review
The concept of leadership management is the part that as described above, handles the leadership factors which will ensure the development of the management of the organization. As per Goetsch & Davis, it is clear from various sources that the leadership and the management must continue their part of responsibility by going hand-in-hand (Goetsch & Davis, 2014). It is not because they both are the same but because they can be said to have some link between each other due to which they can also be considered complementary to each other. If in any condition both are getting separated then the problems will get more tense rather than getting resolved though they both are in different functions.
Many of the literature sources on the management level conditions of many organizations say that the manager possesses the role to make the planning along with organizing and coordinating the employees of the organization as well as other organizational strategies. At the same time, the leader possesses a role in bringing inspiration to the employees by motivating them. Through this, the official environment will eventually get a positive impact. As per Thorpe, Mumford & Gold, and various authors like the book Warren Bennis, it is quite clear that both the role of the manager and leader is vital; however, control the different parts of their responsibilities within the organization. Further, the absence of this creates a situation of heavy chaos in the organization as described in the scenario (Thorpe, Mumford & Gold, 2009). The author likewise says that the manager performs the activity of administration along with having the focus on the organizational structure as well as the maintenance of the organization. On the other hand, the leader of the organization is quite innovative which drives its team to reach out to the prescribed target set by the organization.
As per Thorpe, a leader is always very active in the development and takes it as challenging work to create the work process with a long-term perspective. The manager is in such a position that in the recent market scenario is not there to assign the work but it also to make sure that the real purpose of the task is achieved (Thorpe, 2016). That is the reason the previous condition was something different where the manager is quite a copy who only follows the order of higher authority but in the current situation, it has somewhat changed.
According to Goetsch & Davis, in the current position, a manager will have to make efforts to enhance efficiency with the development of talent along with inspiring results. In other words, it can be said that the manager is the position that also has the function of leading the people to fulfill specific goals along with the increase in the productivity of strengths and knowledge within the individual in the team (Goetsch & Davis, 2014). For example, in one of the cases mentioned in another case study, Stephanie is appointed as the R&D manager of a manufacturing company that is working worldwide but on a small condition, i.e., for ten months only. In that situation, she has to handle the management of 11 people, out of which five are there with her in that office and the rest six, are in a different branch in Munich. Another important part is that Stephanie previously was one of them and she has been recently promoted to this position. Therefore, she has been struggling with an awkward situation of handling her previous colleagues. However, her first role is that of a manager but sometimes she is quite daunted by the situation (Daire, Gilson & Cleary, 2014).
As she has not undergone any type of formal training so she was not quite good in her performance as a manager. Similarly, while considering non-profit organizations, which are regulated with their various services, come under pressure with such kinds of activities. Specifically, the NGOs are the sector where the person working for it faces much pressure during changes in policies or during a demographic change (Daft, 2014). Therefore, any person in place of a manager who is capable of handling such fluctuations can lead to mismanagement within the organization (Cherry & Jacob, 2015).
Likewise in any NGO, the person appointed to be a manager will have the function to address the situation of its finances in front of the government. Along with that, the manager in the NGO needs to search for partnerships for any type of funding shortage. Due to this reason, such people must be appointed who have the perfect capability to handle the whole situation with discipline and who can bring out the solution to the prescribed issue unlike Stephanie and the manager of the NGO (Armstrong & Taylor, 2014). In that situation, the various sources and the literature provide the knowledge to make the provision for the enhancement of such qualities within Stephanie and the manager of the NGO. As a result, they will carry out their role and responsibility as per their requirement.
Assessing the Problems Raised in the Case Study
The detailed study of the case study provided the study in which various issues dealt with the issues of manager and leadership development within the organization. The case study proposed here is the scenario revolving around Charles Turner, the newly appointed sales manager of NovaTek Company.
As an employee, he is quite sincere, cautious, painstaking, thorough, and methodical but after being appointed as a manager he realized that he was quite good at his performance in handling the operations rather than as a sales manager. Who is highly dynamic, intelligent, and brilliant in forming business relationships (Goetsch & Davis, 2014). On the other hand, Turner knew that Fisher is responsible for 44% of sales of the High Ohm as compared to him which is 25%. At the same time after being appointed as the sales manager his cautious nature created hindrances in the production of new ideas and in decision making. Due to that in due course of time, Turner started relying upon Fisher more and more. In the initial phase, Turner doubted his capabilities for this position. And also Turner could not accept the fact that the director appointed him as a sales manager in place of Fisher (Cherry & Jacob, 2015).
The reliance of Turner on Fisher is the major initial problem that raised other problems. Therefore, the case study presented the problems like the lack of managerial capabilities within the person who is selected as the manager. At the same time, the other person in the team has the possible leadership qualities required for the success of the organization. In that case, as proposed in the case study the possible solutions are to have a keen observation of the total situation (Daire, Gilson & Cleary, 2014). Thereafter, these issues are somehow resolved through the addition of philosophical activities within the organization. These philosophical actions will become a foundation for building a strategy to manage the operational activities within the organization.
As per Cherry & Jacob, the establishment of philosophical values will act upon the psychological conditions of the employees through which a business relationship can be judged. It will eventually become the strength of the employees in the position of manager or leader as well as will enhance the leadership or managerial qualities (Cherry & Jacob, 2015). Also through this, the employees like Turner, who has been appointed as a manager but lacks the qualities will automatically get strong psychologically and get to know its lacunas and will try to develop it as per the requirement. The lack of responsibilities of a manager or leader will lead to a chaotic situation within the organization which, in turn, will lead to mismanagement. The case study of NovaTek reflects such a situation.
Conclusion & Recommendation
The report began with an analysis of the specific issues in the case of NovaTek Company. The position of both Turner and Fisher is analyzed throughout the report. The analysis focused on the lacuna in the managerial and leadership qualities of Turner within the organization. As a result, there is a gradual increase of chaos in due course of time which was initiated by Blackham. With time, Blackham got to know the intentions of Fisher. Finally, he burst out in front of Turner regarding the working procedure and intentions of Fisher.
Thus, this report is formulated to provide some strategy that will help the company to go further without hampering its work profile due to mismanagement. As the analysis of the case study suggested that even though Turner lacks the needed qualities of a manager he was still appointed as a manager whereas Fisher has all the qualities of a leader but was still not given that position. In that case, Turner did not carry out his part of the responsibility properly and blindly relied on Fisher for suggestions.
On the other hand, Fisher is quite brilliant, innovative, and helpful yet smart enough to take advantage in the name of the delegation. But Turner is unaware of the situation having his blind belief in Fisher and very willingly accepting the proposals given by Fisher for the development of the company. But within the development, Fisher is also planning for his development. In that situation, if the sales director of NovaTek is noticing any such kind of activities then the organization must need to take serious action to stop these and further continue the growth of the organization. Mostly some of the recommended solutions for these types of issues include the enhancement of the philosophical act which can bring out motivation within the individual for change.
Another recommendation for the human resource of NovaTek is that it can get through Maslow’s Hierarchy of Needs which shows the five different hierarchical groups of requirements or needs of the employees. Like for example, Fisher is only working for having the aim of enhancement of his esteem in the organization. Similarly, Turner is continuing their position to maintain the safety of the position so that he will not face resentment as he doubts his capabilities for being a sales manager of the organization. On the other hand, Fisher is completing his needs by helping Turner in the name of the delegation. Therefore, the application of this theory is recommended for the human resource department to be aware of the needs of the employees and act accordingly in the organization.
Another recommendation is the restructuring of the organization. The case study provided the knowledge that Turner is appointed as the sales manager for NovaTek, while Fisher is working as one of the area managers. Turner is quite good in his profile having the qualities of methodical, painstaking, and cautious while Fisher is quite dynamic, brilliant, intelligent, and sharp in making business relations. In that case, Turner has been appointed as the sales manager for the High Ohm sales but he is quite doubtful of his qualities of being a manager of sales rather he thinks himself perfect for handling operations.
On the other hand, Turner finds Fisher perfect for that position as he has a dynamic personality to deal with clients very smoothly and reach targets. But the sales director does not find Fisher to be eligible just because he is not enough experienced. In that case, the company is recommended to go for restructuring within the organization and assign roles and responsibilities as per their efficiency which will reveal the actual capability of the employees. Therefore, human resources can share these factors and recommendations with the sales director. As a result of which they can collaboratively find out the perfect solutions to take the company business forward without any interruptions.
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