Situational leadership theory free essay sample

In this report the approaches and methods of PricewaterhouseCoopers of keeping employees its main asset, are analysed and explained. PwC uses internal and external types of recruitment through different programmes, advertisements on its web-site, journals and so on. It uses its unique method of selection including online-application, assessment centres and tests, interviews. It is putting all effort on recruiting its employees by providing trainings, promotion, rewards and professional qualifications. PwC’s organisation culture is based on teams and uses range of team formation approaches as Tuckman’s theory and Belbin Team Roles. According to the Forbes magazine (2012), PricewaterhouseCoopers (PwC) achieved the fifth place in UK’s and America’s Largest Private companies’ rating with labour force of 180,529 employees in the industry of accountancy and business services. It was voted by students as the number one Graduate Employer in the Times Top Graduate Employers survey for the last six years, was given the highest rank out of the Big Four in The Sunday Times Best Big Companies to Work For UK survey, and also was named one of The Times Top 50 Employers for Women for the last three years (PwC Careers, 2013). The objective of this report is to analyse PwC organisation’s human resource management strategy and approach, and to apply theories into practise of real example of existing company with its own HRM plan. Chapter 1: Recruitment, Selection and Retention Procedures 1. 1 Recruitment Recruitment is the process of analysing the availability of vacancies and filling them with right combination of candidates (InterActive World Wide, 2013). Usually, the recruitment process covers stages as: identifying vacancies, internal or external recruiting decision, job analysis of job description and person specification (InterActive World Wide, 2013). . 1. 1 Types of Recruitment. Internal Recruitment at PwC When the job becomes available in PwC they use two types of recruitment methods: internal and external. They start with the internal recruitment method which according to Schermerhorn, (2010), looks for candidates within the organisation, PwC puts a job vacancy announcement at the staff rooms or cafeterias in order to be seen by employees who are interested in the vacancy, it uses its internal newsletter, intranet and Talent Management Strategy – employees interested in switching the job. External Recruitment at PwC Human Resources department uses external recruitment method, outside candidates’ search as states Schermerhorn, (2010), as a second step in recruiting process by posting the job vacancy in the PwC Careers website, also, it uses recruitment agencies, student recruitment programs, for instance with New Castle University, printed journals and electronic as ratemyplace. co. uk and so on (Lindsay, Wickson, Sidwell, 2013; PwC Careers, 2013). PwC uses the most cost-effective way of recruiting and selecting new candidates. . 1. 2 Job analysis Job analysis is a process of gathering and dissecting information about the capacity of the existing job; it is done to state a job description, which is a written assertion of the content of the job, and person specification, which is an analysis of a personality the employer searches for (InterActive World Wide, 2013). 1. 1. 2. 1 Example of Job Description at PwC, (PwC Careers, 2013) 1. 1. 2. 2 Example of Person Spec ification (Model), (PwC Careers, 2013) 1. 1. 2. 3 Example of Person Specification (Table), (PwC Careers, 2013) Skills Essential Desirable Written and Verbal communication skills Team working skills Knowledge of the systems for processing extensive payroll Knowledge of intricate payroll issues Organisational skills Certificate or Diploma in Payroll Management (IPPM/Payroll Alliance) Microsoft Excel skills Skills in supervising teams Skills in setting up new payrolls Customer service skills Experience 1. 2 Selection The following process that goes after recruitment is selection, which filtrates candidates to choose the most appropriate one (InterActive World Wide, 2013). . 2. 1 Selection Methods Job advertisement is where recruitment process ends and selection takes place. It is continued by methods of selecting, used whether isolated or combined, application or CVs, interviews, selection testing and assessment centres In PwC when it comes to selection process, PwC UK uses a variety of selection methods, which do not focus only on academic achievements and experience, for instance, they recruit studen ts with leadership skills and so on. For selection process PwC has several steps: Online form, Online assessments, First Interview, Assessment day, Final Interview, Offer, Pass checks (PwC, 2013). The whole process takes from four to six weeks, which is followed by checks of recent employment and education provided in application (PwC, 2013). 1. 2. 2 Legal, regulatory and ethical issues According to observation based on PwC Careers, (2013), web-site and PwC Recruitment, (2013), as well as PwC Selection, (2013), web-pages PwC meets all legal, regulatory and ethical requirements of UK government regulations. Also, as PwC is a global organisation you have wide international opportunities to move to another country or city, or use Early PwC International Challenge (PwC: Early PwC International Challenge, PwC Careers: International opportunities). Chapter 2: Build winning teams 2. 1 Team definition There are a lot of definitions of team; according to Belbin, (2012), a team is an accumulation of people, where each one plays its own role that is comprehended by the rest of members. However, Robbins, (2009), states that a team works through coincidence and cooperate effectively towards specific objectives. Types of Team There are so many types of teams, which PwC tries to use simultaneously, for instance, problem-solving teams, self-managed work teams, cross-functional teams and virtual teams. The most common types used in organisation are cross-functional teams and self-managed work teams. The first one is used the most at PwC, it involves managing employees from different departments and with common responsibilities in one team: an employee from Deals department could be managed to work with Assurance, Law and Tax departments towards one customer or project (Jackson, Shuler and Werner, 2008). . 2 Motivation 2. 2. 1 Meaning of motivation and Herzberg Motivation Theory Mitchell, (1982), defines motivation as the level to which a person desires and determines to engage in set identified behaviours. According to Kets de Vries, (2001), the most effective companies set values that determine the right conditions for high performance, and so does PwC UK. It always seeks a potential in its em ployees and a passion to drive motivation and get more efficiency from them. According to the Herzberg et al, (1959), motivating factors are promotion, sense of personal achievement, responsibility and recognition, where hygiene factors include salary, company policy and working conditions. PwC uses variety of reward and bonus approaches, for instance, according to Burchell and Robbin, (2010), spot bonuses to the national Chairman’s Award program, which rewards outstanding persons and teams for distinctive service provided to the clients. 2. 3 Building Winning Teams at PwC 2. 3. 1 Team formation theories and implementation PwC considers different team-building approaches which vary according to the department, specific objectives, and customer and so on. Two main methods of Belbin Team Roles, forming teams based on their characters: Plant, Co-ordinator (Belbin UK, 2012); and Tuckman’s team formation theory, which suggests five stages of team formation: Forming, the first stage where team-members get along together with the task; Storming, when places, way of achieving goal in team are argued; Norming, agreement; Performing, effective team operation; and Adjourning, the disbandment of team (Johnson, 2009). PwC UK uses different approaches, however their whole work is centralised over team working, because dealing with customers is an unexpected work, and so they build effective teams to avoid dissatisfaction of a client (PwC Careers: Our people). According to Robbins, (2009), implementation demonstrates a process including interested parties which training and supporting during specific period of time. 2. 3. 2 Conflict resolution Indisputably, each team and group work faces conflicts, however they can be either useful or frustrating. PwC as every global company tries to avoid frustrating conflicts, but burst useful ones, because they are not damaging the whole productivity, but suggest new ideas, involve critical thinking. The way PwC deals with non-effective conflict is simple; it provides its managers and team-leaders with all necessary trainings and seminars, for instance, â€Å"Conflict solutions†, â€Å"How to avoid conflicts† and so on (Weihrich and Cannice, 2010). 2. 4 Diversity at PwC PwC is one of the most diversified companies in the UK, because their value is that people is their greatest asset and also, it is one of the most internationally based organisations with employees in countries (PwC: Annual Report, 2013). According to Hankin, (2005), diversity is a condition of organisational culture with mix of people from different backgrounds, with different culture and traditions, languages, ages, professions and so on. And to make this entire global and large company to work, and work effectively it puts strong emphasis on the diversity. PwC uses three basics: diversity paradigms, its principles and training; by providing these trainings they make sure that diversity is managed effectively within teams, so they can perform to the best of their abilities as a team (Williams, Champion and Hall, 2011). PwC uses white men running diversity program along with Coca-Cola and Georgia Power (Williams, Champion and Hall, 2011). Moreover, PwC was rated as the most female friendly organisation by Diversity Works for London, (2008). Chapter 3: Leadership 3. 1 What is Leadership? Terms leader and manager A term â€Å"leader† does not have a particular definition, it is interpreted variously. According to McFarland (1969) leader is the one who makes things happen which are not happening otherways, however Schatz and Schatz (1986) state that leader is a person who influences people and results around him. Although, manager and leader are correlated, their meanings are different, where according to Rost, (1991), manager uses authority and leader – influence, for employee communication. 3. 1. 2 Theories and Styles of Leadership Cragan, Wright and Kasch, (2008), suggest that there are three types of leadership styles: autocratic, leader is authoritative; democratic leader is communicative; and laissez faire, total freedom for team-members. Furthermore, there are two most used theories of leadership: Trait theory of leadership and Behavioural theory (Fairholm and Fairholm, 2009). Trait theory suggests that character, social and personal features or traits, define successful leaders; whether Behavioural theory believes that a skill of leadership can be learned by anyone. Leadership Model at PwC Relying on observation it can be inferred that PwC uses Situational leadership model, which uses approaches of Directing, Coaching, Supporting and Delegating. PwC leader takes into consideration each member of team if he is an intern or expert, it encourages team-members to help each other and so on. However it is important to mention that no particular style is adopted by PwC it combines and changes according to situation. According to Dowling and Breitfelder, (2010), PwC is the best example of â€Å"in-depth† Global Leadership Development program. PwC uses diversity of which lasts from 2001 until now with Ulysses (Pless et al, 2011) PwC pays a lot of attention to developing leaders for its company. As it was mentioned above, it even sponsors such student organisations as AIESEC through developing potential employees-leaders directly from the university (AIESEC, 2012). There is no particular style adopted by PwC. It tries combining and changing them according to appropriate situation in order for employees and objectives to be motivated. Motivation theory with the style and the leadership model impact employee motivation of PwC. McClelland’s Needs Theory suggests that there are three basic needs of employees: Need for Achievement, Need for Affiliation and Need for Power. These needs can be related to Maslow’s Hierarchy, according to Pattanayak, (2005), Need for Achievement to Self-actualisation Need, Need for Power to Esteem Need and Need for Affiliation to Love Need. As PwC puts its employees as its main asset, it supports Democratic leadership style. PwC’s Democratic style is strongly related to Situational leadership model, as in autocratic and laissez faire environment it would not be effective. Together with style and model it can be inferred that all motivational needs of employees are fulfilled through PwC’s leadership model which involves employee engagement and empowerment. 3. 3 Employee empowerment at PwC Employee empowerment gives information and opportunity to employees for decision-making and working directly with the customers (Ginnodo, 1997). In other words, it is communication between employee and company. Communication is a process of exchanging information between people, which is a principal part of organisational culture; keep employee informed of organisation’s decisions and upcoming events is very important for employee’s condition in company, as it can either motivate or demotivate him. PwC is mainly working with customers that is why it tries to empower as much employees as possible because best knowledge of dealing with customers comes through experience. However, in order to be empowered, employee should have reliable background, achievements or some experience of working in PwC; because managers rely on them to limit the risks. Employee engagement at PwC According to Harter et al, (2002) and Towers Watson, (2008), employee engagement is concerned with involving employees, fulfilling their needs and building relationship between employees and organisation (Holbeche and Matthews, 2012). In other words, employee engagement is delegation, a realisation of outcomes via achievements of others, in other words managers strongly use it as giving tasks and some responsibilities to employees (Burns, 2002). Empowerment or communication, engagement or delegation are not only beneficial for employees, but also for PwC. For instance, they are good motivators, which raises efficiency, brings new and fresh ideas, sometimes they save money, because you don’t pay for extra-responsibilities, they help company to understand who can be a good leader or a manager so it is easier to decide who can be promoted, eventually they build team-based environment and strong organisational culture, where employees trust PwC and vice versa. However, there is the main disadvantage of taking risks, which can lead PwC to lose customers, damage the relationship between them which are paramount. Nevertheless, PwC always tries to use all of these tools, because it is a modern organisation, which main assets are customers and employees. Chapter 4: Performance management and individual assessment 4. 1 What is Performance Management? 4. 1. 1 Performance Management Process Performance management is interpreted variously, however Hendry et al, (2000), describe it more basically as it works for achieving organisational goals through strategic approach of developing individual and team performance. Figure 4. 1 Performance Management Process (Hendry et al, 2000). Performance Management Process involves several steps: Diagnosis personal improvement needs and activities can be presented through SWOT analysis or Skill Audit Evaluation Plan and set SMART goals for individual development Feedback Develop methods for improving those needs identified in a. Dealing with Feedback Identify appropriate method(s) of feedback to ensure quality performance. Improving Performance Develop and evaluate a performance monitoring plan by assessing relevant criteria against each of the deliverables a to d. According to Saks and Hoccoun, (2010), PwC provides a lot of trainings to its managers of performance management and training assessment . Individual assessment at PwC 4. 2. 1 SWOT analysis The first step which helps PwC carry observation is to gain data from individual Skill audits or SWOT analyses of employees. The position of evaluated person is an auditor in Assurance Department in PwC, London, UK. Opportunities Threats Opportunities available Living in London Get professional auditing qualifications Improve team-work skills Threats that could damage ambitions or career prospects Competency Fear of offending Visa problems Put strengths into opportunities Ambitious Put most effort into job Persistent (on my goals) Can achieve best feedback, show competitiveness and get positive references from colleagues Motivate other people Become an efficient manager Nothing can influence decision All long and short-term goals will be achieved Openness Can have great relationship both with directors and colleagues Confident with computer Is capable of doing all tasks with computer Threats which arise because of the personal areas of weakness identified? Competency Fear of offending Feels nervous and not so persistent with defending my opinion and point of view. Visa problems Is afraid of being refused of UK Visa . 2. 2 SMART Goals Each goal set by manager should be SMART: (S) – it particularizes the main aim of the goal (M) – measures appraisal of performance (A) – determines that goal is realistic (R) – determines the necessity of the goal (T) – detects the duration of goal completion 4. 2. 3 Methods for achieving needs Relying onto inferred SMART goals it is indicated th at this employee needs variety of training and development programs, as well as occasion one-to-one interviews. This is the standard PwC model of training which it follows relying onto identified skills and determined goals. This is one of their method of achieving needs (Figure 2). Figure 2 (PricewaterhouseCoopers, 2012). According to Rasche and Kell, (2010), PwC pays a lot of attention to processes for performance and its evaluation, training and rewarding employees, prizing and improving diversity. There is also a Project Ulysess, which is used as a training employees to become leasers. According to PricewaterhouseCoopers, (2012), Narrative Report, PwC uses similar methods of evaluating its employees and board, usually it uses paper questionnaires and one-to-one interviews. Evaluation process is very important to PwC, because when it comes to team formation managers consider mix of skills, experience, knowledge and diversity of each employee (PricewaterhouseCoopers, 2012). Also, line-managers usually set meetings inside each group or department where he highlights main observed weaknesses and strengths, which build the whole picture of the team, and also, the outcomes are shared and are used for the formation of development programmes. 4. 2. 4 Feedback methods PwC uses variety of types of feedback. All employees throughout the year receive spoken and inscribed feedback. And here is appropriate to use spoken as well as written feedback. It will be structured, include specific observations of the PwC behaviours, highlighting strengths and field for development. After that, in order to review this feedback an employee will meet with the coach or line-manager to classify the way of strength improvement and weaknesses betterment. 4. 3 Personal Development Plan (PDP) Personal Development Plan Objectives (original) Objectives (reset) Success Criteria Actions Implementation #1. Improve qualification statement through completing ICAEW professional qualification program Needs to finish professional program in two years Achieve good feedback from managers and team leaders Team participation and impact into customer service have to rise constantly after undertaken actions Being able to deal with more complex payrolls and financial audits Complete syllabus of 14 exams, and pass all of them Learn how to structure audits properly and make reports based on computer applications Achieve more than 50% for each examination taken Will finish qualification program and then work for a year, applying the knowledge in order to perform better and increase efficiency 2. Improve team working skills Needs to improve team-working skills in 2 years Be able to get along with people lightly and detect mutual interests very quickly Avoid arguments during the team work or solve them without aggress Divide capacity of work optimally between team members Buy a book and discover different methods how to communicate with people and work in a team Pass team-building and team-de velopment programs Learn about different types of characters, nationalities and ages of people Help organizing relationships within company and workplace Be able to work in team efficiently and profitably #3. Improve leadership skills Needs to improve skills in 3 years Being able to put forward valuable arguments Suggest possible and convenient solutions to challenges and consider everybody’s opinions Being able to build a team and encourage people to work hard Pass leadership program at PwC and out of the company Prepare a basic strategy how to build respect among workers Read books about biographies, stories of different leaders and famous people Take responsibility of some projects or group assignments Be able to lead teams, bring forward new ideas #4. Improve critical thinking skills Needs to improve skills in a year Being able to analyse situations and adopt to new circumstances very quickly Being able to undertake responsibility in difficult situation and solve it Being able to oversee different solutions and their consequences Being able to evaluate and criticize my own works and actions Take public speaking training, in order to be able to defence own attitudes and ideas Surf in the internet and take different tests about developing critical thinking Buy books with critical tests and tasks Read about people and their bad and good solutions of different situations at work, and what did it make in a result Fulfil the weakness of uncertain speaking and be able to structure responses properly Being able to solve problems quickly, think more diverse and making decisions with better critical observation 5. Conclusion Summing up all the theories, points and examples presented, it can be inferred that PwC has its own unique scheme of Strategic Human Resource Management processes as: recruitment, selection, retention, diversity development; its approaches in employees’ motivation, leadership, team-building and performance management. PwC tries to combine different training, development and management models at the same time, it pays a lot of attention to diversity of company and to ethical and legal regulations in support of disabled employees. It engages and empowers its employees, rewards them and provides as much training and effort to them as possible. That is why it is called the number one Graduate Employer in the Times Top Graduate Employers survey for the last six years.