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Good workplace practices and their impacts David Pardey, Senior Manager Research & Policy The Institute of Leadership & Management.

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Presentation on theme: "Good workplace practices and their impacts David Pardey, Senior Manager Research & Policy The Institute of Leadership & Management."— Presentation transcript:

1 Good workplace practices and their impacts David Pardey, Senior Manager Research & Policy The Institute of Leadership & Management

2 A brief review of management 4.5m managers in the UK; estimate 375,000 in Scotland 1 Approx. 2/3 male: 1/3 female, but: » Majority of new managers are women and are likely to have a degree » Majority of established managers are men and are unlikely to have a degree ( 2, 3 ) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Less than a year 1-5 years 6-10 years 11-20 years 21-30 years 31 – 40 years Over 40 years MaleFemale

3 Whats so good about being a manager 2 ? 1.Being able to make a difference 44% 2.Making change happen 35% 3.Developing others skills 32% 4.The variety of challenges 36% 5.Able to influence people or decisions 29% 6.Helping my team achieve their goals 32% 7.Increased financial benefits 31% 8.The potential for career development 21% 9.Increased level of responsibility 18% 10.Status 11%

4 Four good workplace practices 1.Organisation 2.Systems 3.Management 4.Leadership

5 Good organisation practices Train managers Better to train all managers a little, than a few managers a lot » Good management practice is strongly associated with better productivity, profitability, Tobins Q (asset value ratio), and sales growth. » Poor management practice survives through lack of product market competition; firm age & few new market entrants using better management techniques; and labour market regulation. 4 UK managers lag their colleagues in the US, France and Germany in terms of competence and experience 5 better-managed firms also have a more highly educated workforce, among managers and non-managers alike 6 General ability and variety of experience used to identify future leaders, & in-house training favoured for their development (7,8,9)

6 Good systems practices Measure what matters Most improvement methodologies emphasise the value of measurement and analysis (eg PDCA, Ishikawas 7 tools & techniques, Six Sigma/DMAIC, etc), and of benchmarking against the best Effective skills utilisation means: » measuring productivity (efficiency of resource utilisation and product/service quality) » comparing with best practice » using appropriate improvement strategies to raise standards Far more prevalent in manufacturing than service industries

7 Good management practices From supervision to development Change focus of management role from supervising performance to improving performance through development (9,10) » Better performance management systems (continuous, people- not system-driven) » Use workplace coaching and mentoring » Culture of everyday learning Productivity comparison GBDE Labour DE/GB Ave. bed nights/ house-keeping employee 6.0510.3359% Ave. occupied room/ receptionist 5.839.2663%

8 Good leadership practices Build trust Trust in co-workers and management is a predictor of: » an employees preference for teamwork, » increased engagement, and » lowered employee turnover (11,12) Trust is positively related to task performance and negatively related to stress 13 Trust can: » reduce transactional costs (by obviating the need for excessive controls and regulation), and » promote positive relationships 14 Trust is the product of three broad personal attributes that all managers need to foster: » Ability (understanding their own role and the role of those they lead) » Integrity (honesty and consistency) » Benevolence (openness and fairness) 15

9 References 1.Office of National Statistics (various) 2.What makes managers tick? ILM, 2008 (unpublished) 3.Thomson, A., Mabey, C. Storey, J. Gray, C. & Iles, P Changing Patterns of Management Development Blackwell: 2001 4.Bloom N, et al Management Practices Across Firms and Nations Centre for Economic Performance (LSE) & McKinsey & Co: June 2005 5.DTI ECONOMICS PAPER NO.17UK Productivity and Competitiveness Indicators March, 2006 6.Bloom N, et al Management Practice & Productivity: Why they matter Centre for Economic Performance (LSE) & McKinsey & Co: July 2007 7.Future Leaders ILM, due October 2010 8.Newell H Who will follow the leader? Managers perceptions of management development activities: an international comparison SKOPE Research Paper 51, Autumn 2004 9.Tamkin P et al The Comparative Capability of UK Managers Institute for Employment Studies for Skills for Business, April 2006 10.Prais, Jarvis & Wagner Productivity and vocational skills in services in Britain and Germany: Hotels National Institute Economic Review, November 1989 11.Kiffin-Petersen S., Cordery, J., February 2003, Trust, Individualism and Job Characteristics as Predictors of Employee Preference for Teamwork, International Journal of Human Resource Management, Vol. 14 Issue 1, p.93-116. 12.Ferres N., Connell J., Travaglione A., June 2004, Co-worker Trust as a Social Catalyst for Constructive Employee Attitudes, Journal of Managerial Psychology, Vol. 19 Issue 6, p.608-622. 13.Costa A.C., Roe R.A., Taillieu T., September 2001, Trust within Teams: The Relation with Performance Effectiveness, European Journal of Work and Organizational Psychology, Vol. 10, Issue 3, p.225-244. 14.Kramer R.M., 1999, Trust and Distrust in Organizations: Emerging Perspectives and Enduring Questions, Annual Review of Psychology, 50, p.569-98. 15.Index of Leadership Trust 09 ILM September 2009

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