Management: Leading the People

Recruitment, selection, and retention procedures

Recruitment is the process of finding the best candidate for a certain job within an organization. It comprises job descriptions, advertisement of jobs to attract applicants, shortlisting the applicants, interviewing them, and selecting the best candidate(s). The nature of the recruitment process determines the type of candidates who fill the positions. However, whichever method an organization uses, the result should be candidates who are capable of handling their responsibilities well.

Some common recruitment methods include in-house recruitment, employment agencies, and outsourcing. Each of these methods has its benefits and is suited for particular types of organizations. With the in-house recruitment method, an organization has in place a recruitment manager as a full-time employee.

The manager is responsible for developing the job descriptions and preparing the job adverts. After the advertisement, the recruitment manager does the shortlisting and invites applicants for interviews. The benefit of this method is that it enables organizations to get employees within a short time because the recruitment manager usually customizes the process to the organization, thus making the process fast. The shortcoming of this method is that the recruitment manager may have personal biases when filling the vacant positions.

Other organizations which do not have recruitment managers use employment agencies to get employees for the vacant positions. The benefit of this method is that it is presumed to be free and fair to the applicants. Organizations are therefore guaranteed to get the best candidates for the vacant positions. Through the method, organizations are also able to get all sorts of workers such as skilled, unskilled, full-time, and part-time employees. The method is, however slow, time-consuming, and expensive especially to small organizations.

With the outsourcing method, organizations hire an external consultant to do the recruitment. The method is most suitable for small organizations which cannot do the recruitment. In most cases, the method is preferred when organizations want to recruit talented employees and is commonly used for recruiting Chief Executive Officers (CEOs) and management level employees. It has the shortcomings of taking too long and high costs.

Selection is the process of deciding on the candidate to fill a certain job opening. Some of the selection methods include interviewing, psychometric tests, and referral by staffs. The benefit of interviewing is that it gives an organization the opportunity to assess various aspects of the applicants such as attitude, humor, character, and self-expression.

However, the organization may not get the opportunity to assess other aspects of the candidates such as aptitude, arithmetic skills, and logical thinking, which can only be assessed through the psychometric tests. The shortcoming of the psychometric tests method is that it does not assess the aspects assessed through the interviewing method.

When organizations want to fill a job opening within a short time, the best selection method is a referral by staffs. The reason is that the staffs usually have someone in mind who can fill certain positions in their organizations. However, the problem with a referral by staffs is that the organizations may not get the opportunity to select an employee from a pool of candidates.

Retention refers to the activities done to ensure that once employees are employed, they remain in the same organization permanently or for a long time. The main reason for retention is that the processes of recruitment and selection of employees are not only tedious but also costly and time-consuming.

Some organizations invest in training their employees, and for this reason, they do not like losing such employees since doing so means losing the value of the resources used in the training of the employees. Retention is usually based on motivation theories such as theory X which assumes that employees can work independently without supervision. It also assumes that employees like work and are always dedicated to their duties and responsibilities (Schermerhorn 2010).

Impacts of Legal, Regulatory and Ethical Practices at Renault

The impacts of these practices at Renault may be explained using the concept of Corporate Social Responsibility (CSR). The topic of CSR can be broken down into four main components, namely the ethical, regulatory, philanthropic, and legal components.

The ethical component of CSR comprises the requirements or expectations of any business by the society. Such requirements or expectations include things like doing what is just, fair, and right, using the law as the basis of organizational behavior, avoidance of questionable practices, and doing business in a manner which is above the minimum requirements.

The regulatory component comprises taking care of the interests of the shareholders, investors, and customers, profit maximization, minimization of the costs of undertaking business, and the formulation and implementation of strategic policies which propel the business forward.

The legal component comprises the respect and compliance of business to various laws such as environmental and consumer laws as well as laws which protect employees. The philanthropic component entails giving back to society by a business.

The business may do this in a variety of ways like establishing or supporting programs which directly benefit the society such as health and education programs as well as programs which boost harmonious coexistence of people from diverse backgrounds. These practices are entrenched on organizational ethics theory, which requires organizations to make profits in a manner that does not harm the environment, employees, and the community at large.

Skills and attributes for effective leadership

Effective leadership has to do with the consolidation of resources by leaders of organizations. The idea behind the consolidation of resources is to enable the leaders to attain organizational objectives efficiently using minimum resources. It also has to do with the realization of extraordinary results by organizational leaders through processes which involve all the stakeholders (Bolden, Hawkins & Gosling 2011).

The skills which are essential for effective leadership include networking, conflict resolution, mobilization, and communication skills. Effective leaders also have excellent decision-making skills. The decision-making process is crucial because the success or failure of organizations greatly depends on the type of decisions made by organizational leaders and how the decisions are made.

An effective decision-making process is usually consultative; that is, the leaders consult their followers and other stakeholders. The consultations not only make the decisions effective, but they also reduce resistance to organizational change or restructuring.

When stakeholders are consulted before a decision is made, they can own the changes which come as a result of that decision. Effective decisions are therefore acceptable to all the stakeholders of organizations. The decisions also have lasting impacts as opposed to decisions which are made without consultation and involvement of organizational stakeholders (Gill 2011).

Difference between leadership and management

In a book titled “management,” Schermerhorn defined management as the art of getting things done through people (Schermerhorn 2010). Many organizations have policies, procedures, and guidelines that govern the decision-making process. Managers must understand how to get people to do what they are supposed to do and know what exactly gets done, the results to be achieved, and how best the results can be achieved efficiently.

Wart and Suino defined leadership as the ability of a person to influence other people to do things which they may not do without the influence (Wart & Suino 2012). People with this ability are referred to as leaders and are found in different settings and contexts. In the organizational context, leaders are responsible for planning, coordinating, and controlling organizational functions and activities towards the attainment of organizational goals and objectives (Sims 2007).

Both leadership and management are essential for the success of organizations because they complement each other. Leadership attributes transform managers into leaders and by so doing; the managers discharge their duties in a flexible manner. Such managers also can create a cohesive organizational culture where employees’ loyalty and motivation are greatly enhanced.

As the overall manager of Renault, Mr. Charles Ghosn exhibited management attributes by overhauling the organization’s policies, procedures, and regulations. For example, he introduced the concept of teamwork, which reduced the cost used for the supervision of employees. He also reduced the number of suppliers, consequently reducing the operation costs of Renault by 10% in a span of two years.

As a leader, Mr. Charles Ghosn inspired the employees and managers to dedicate themselves to the success of the organization. He also successfully introduced a flexible organizational culture in the organization. Through the flexible culture, Renault was transformed from a loss-making organization to a profit making and growing organization in a record of two years.

Leadership style adopted by CEO Charles Ghosn

As the CEO of Renault, Mr. Ghosn adopted servant leadership. One of the defining characteristics of servant leadership is the ability of the leaders to listen to their followers. What is more valuable to the servant leaders is listening not talking to others. They pay close attention to what their followers have to say. They then think about how their followers can be assisted to realize their full potential at the workplace. Listening makes the leaders bond with their followers, which enhance teamwork in organizations.

Servant leaders are fully aware of their strengths, weaknesses, biases, feelings, and values. This awareness enables them to serve their followers effectively. The leaders can capitalize on their strengths to bring everybody on board in decision making. They are also able to work on their weaknesses and biases so that they do not affect their ability to serve their followers.

Servant leadership is also about the leaders having a foresight. The foresight enables servant leaders to understand through intuition where the organization has come from, where it is and where it wants to be in the future and how to get there. Servant leaders can persuade and appeal to their followers.

The ability to persuade and appeal to the followers makes the leaders very influential. The ability to influence followers is very crucial, especially in the implementation of organizational change. Through the influence, the leaders can convince their followers to accept the change, and therefore, organizational change is implemented with little or no resistance from the employees.

Servant leadership leads to the establishment of teams which work together. These teams give themselves a social identity which holds them together. The social identity leads to cooperation among the team members in all aspects, which brings forth a multiplicity of ideas about how to undertake the tasks, thus leading to innovation in organizations.

Motivation of staff

Motivation is the process of encouraging or influencing people to behave in a particular manner, which they would have otherwise not behaved without the encouragement or the influence. There are four categories of motivation theories, namely classical, human relations, neo-human relations, and systems theories.

Classical theories include the scientific management theory by Taylor, the bureaucratic theory by Weber, and the administrative theory by Fayol. Human relations theories constitute mainly of the Hawthorns studies by Elton Mayo while neo-human relations theories comprise mainly the Maslow hierarchy of needs theory, MacGregor’s theory X and theory Y, and the hygiene theory by Herzberg. The systems theories constitute human relations, contingency, social-technical, and goal-setting theories.

Among all these theories, the goal-setting theory, which falls under the systems approach is the best suited to describe employee motivation at Renault. The reason is that the organization had experienced a series of loses due to lack of a strategy. The new CEO managed to motivate employees by forming self-managing teams which worked as per their schedules and targets. Teamwork enabled the organization to realize good results in a short time.

Benefits of teamwork

When he became the CEO of Renault, one of his strategies for the organization was the introduction of self-managing teams. Teamwork has a couple of benefits to organizations. Through self-managing teams, organizations encourage employees to work in teams instead of working independently, which enables organizations to benefit from the synergy found in teams.

Teamwork is a necessary condition for employee motivation, which may be intrinsic or extrinsic. Intrinsic motivation comes from the employees and is characterized by the need to achieve good results, passion for work, the ambition to acquire new knowledge, and the need to be successful at the workplace.

Extrinsic motivation arises from things which are external to employees such as appreciation, rewards, increased salaries or wages, promotions, and congratulatory messages. It may be based on the performance of individual employees, team efforts, or the collective success of the organization as a whole.

Teamwork and conflict

A conflict is a form of disagreement between two parties on a particular issue of interest to them. In the organizational context, conflict may occur between organizations or between members of one organization which may involve individual employees and their management or inter-group conflict. Conflict may be substantive or effective. Substantive conflict is usually objective and positive, while affective conflict is usually negative and subjective.

Since conflict may be effective, organizations usually strife to minimize the negative and maximize the positive effects of the conflict. The minimization of the negative effects and maximization of the positive effects of conflict is referred to as conflict management, and it entails developing strategies and establishing systems, procedures, and processes for ensuring that any conflict which occurs in teams of an organization is transformed to an opportunity to implement organizational change.

The teams of an organization set up group norms and rules which guide them in their work. The teams also come up with sanctions for members who break the set rules and norms. This arrangement is considered as the best approach in managing conflict in teams and is preferred by many organizations due to its sustainability.

The integration of management and leadership can also help in managing conflict in teams because once permitted to manage their work and time; employees feel appreciated and motivated to work hard for their benefit and that of the organization.

Effectiveness of teamwork

Working in teams enables employees to generate new ideas which are implemented by an organization, thus increasing employees’ motivation because they feel that the organization values their input. Motivation makes it possible for employees to learn new things from each other and from outside the organization. They also learn new ways and strategies for doing things or improving their operations at the workplace.

Teamwork also enables employees to have group norms, which are informal rules institutionalized by organizations. Norms govern the conduct of employees and constitute what is allowed and disallowed in different organizations. In the spirit of teamwork, employees are also involved in making decisions regarding the products of their work to ensure that the production of new products meets their expectations (Tjosvold & Leung 2004).

Assessment of work performance at Renault

One of the strategies used by Renault’s new CEO to turnaround the organization was a reduction of costs. According to him, a bloated workforce was one of the contributing factors to the stagnation of the organization. He, therefore, considered the reduction of staff as a way of reducing the costs incurred by the organization.

One of the factors used to assess the performance of employees at Renault was the contribution of the work done by the employees to the growth of the organization. The new CEO aimed at ensuring that only employees whose work added value to the organization were retained.

Another factor which was considered in the assessment of the performance of the employees at Renault was their level of education and training. The aim was to have employees who had the necessary qualification and experience in their various areas of specialization.

Planning for development needs of employees

All employees have various development needs depending on their age, sex, level of education, and economic status. The variation of employees’ development needs calls for a strategy in the planning and assessment of their development needs. As a manager, I would plan for the assessment of employees’ development needs by getting their demographic information at the time of employment.

I would also gather information from the employees regarding their aspirations, ambitions, strengths, and weaknesses. I would then develop a training program covering all the areas of training for the employees. After the training, I would evaluate to assess whether there are gaps in the development needs of the employees. I would also appoint mentors and role models to guide the employees and help them overcome the various challenges which they face at the workplace.

Reference List

Bolden, R, Hawkins, R & Gosling, J 2011. Exploring leadership: individual, organisational, and societal perspectives, Oxford University Press, Oxford.

Gill, R 2011, Leadership theory: A critical review, synthesis and redefinition, SAGE Publications Ltd, London.

Schermerhorn, J 2010, Management, Wiley, Hoboken, N.J.

Sims, R 2007, Human resource management : contemporary issues, challenges and opportunities, Information Age Publishers, Greenwich, Conn.

Tjosvold, D & Leung, K 2004, Leading in high growth Asia: managing relationship for teamwork and change, World Scientific, New Jersey.