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From the management of bosses to the management of leaders
Section 4. Management
Khatuna Bebnadze Melsingovna, Georgia, Gori State University, Professor, Doctor of Economic Scinces E-mail: Khatunabebnadze@gmail.com
From the management of bosses to the management of leaders
Abstract: In the article — "It's time to change senior management to a leadership management" It is said that Traditional time management When the heads of organizations were leaders is now a history. In Current knowledge economy in the foreground The correct execution of the current job. In this work, the organization is not has to be planed by a Boss but it has to be planned by leader. Service provider workers must be thinking of creativly.
Keywords: Management, the Significance of Communication.
In the leading countries of the World a traditional ganizations can be competitive only in case if they are
management has become a history. It was a heredity received from the earlier, industrial society that was already useless. That time, it was sufficient to fulfill one's job correctly, that is, according to the indications of the boss. Now the situation has been changed. In the knowledge economics, when the innovations do represent the bases for competitiveness of the organization, employees are required to fulfill a correct job, instead of fulfilling a job correctly. It means that first the point was to fulfill a job correctly according to the indications of the boss, and now — to fulfill a correct job. A job is going to be done in the both of our cases, in the first case the same as in the second one. The difference is such that in the first case a job is accomplished correctly (according to the indications of the boss) but nobody knows how correct the job itself can be, while in the second case namely the correct job becomes accomplished. As we can see, the difference is great, all the more — it is essential.
So, on this stage — stage of knowledge economics, the employee' is required not only to fulfill his/hers job, in general, but to fulfill it with a creative approach. The new employees have also appeared. They are the employees of intellectual work. In their work there is a participation that is thought to be present, and not — a subordination. Having such employees, it is really possible to achieve the efficient control of the organization, though, only and exclusively on the basis of leadership, and never — by a directive management. Thus, the or-
directed by leaders, instead of bosses.
The leaders inside the organization do aspire to the changes, the innovations, and they are able to involve also their employees into this activity. J. Kotter gives the list of changes and the recommendations for leader attitude on each stage:
1. Inspire the necessity of changes in the minds of employees;
2. Create a team of reform-makers;
3. See the prospective and determine a strategy;
4. Provide the conditions for employees' participation in transformations;
5. Obtain the first results quickly and popularize them;
6. Consolidate the obtained results and deepen the changes;
7. Establish the changes within the corporative culture.
By the opinion of J. Kotter, in the process of leadership it is not admissible to omit any of these stages. The scientist R. Anthony requires 11 personal properties from the leader — accomplisher of changes effectively:
• Smart and goal-oriented activity;
• Aspiration to the progressive changes;
• Admiration for the future;
• Art of inspiring and motivating;
• "Passionate" fidelity to new ideas;
• Capacity of influencing a person by means of inspiration, and "selling dream" to them;
Section 4. Management
• Struggle against the bureaucratic rules inside the organization;
• Aspiration towards the subjugation of altitudes;
• Continuous search for new possibilities;
• Character of a constructor;
• Tendency towards a risk.
There is no unified supposition about leadership, about its essence and its being. According to some scientists, leadership is:
• A process, during which a person is acting upon a collective, in order to achieve the common goal;
• "The relations between a person — initiator of innovations and his/her followers";
• "A behavior of a person that is directing the activity of a group of persons, in order to achieve the accorded goals";
• "A process of directing the activity of an organized group in order to achieve the goal";
• "A capacity of overcoming the limits of the culture, in order to initiate the process of evolutionary changes";
• "A capacity of insight development and its propagating to a group of persons, in order to let them believe in the justice of this sight", and so on.
Following from these and the other various definitions of leadership, we can sketch the common idea that while leadership the leader is the initiator of innovation, and he/she does inspire a collective of the organization to conceive the necessity to realize this innovation. Such an inspiration can be accomplished exclusively by the trust of a collective towards him/her. Without it the collective will not accept the initiative of a person. As a consequence, between a leader of an organization and its collective the trust has to be present. What about the trust itself, it is conditioned by 6 essential factors:
1. Firmness of belief;
2. Character (honesty, justice, respect towards persons);
3. Regardfulness (capacity of demonstrating the care towards personal and professional development of employees and, also, to their well-being);
4. Strong spirit (enough will for defense of own opinion and, in case if it results erroneous, for declaration of this fact);
5. Moderation (capacity of expression of emotions, or of their refraining, at a due time and due place);
6. Competency (high level of professional knowledge, capacity of working in team and of organizing a situation).
Such persons that do possess all these properties do exist in a very low quantity. All the more, according to the
opinion of American scientist I. Adizes, "Such a human being does not exist in the Nature, it is impossible to find all these characteristics united inside the same person all together". The identical consideration is expressed by Russian scientist P. Maslov. By his opinion, "The person of this type begins to seek the followers and to form a team with them namely because they will complete him/her". Maslov does formulate the first-order requirement for a leader of organization — the requirement of perception of the spirit of époque, and he declares that the person with the mentioned property is the first leader, while others that do not own it, even in case of owning any erudition, courage, purpose-drive and all the unique characteristics, — will not be able to become leaders".
This requirement in the science is called "contextual intellect". A person with such property, by means of a "radar" functioning inside his/hers subconscious, does perceive the future events in advance, and does prepare the own organization in order to meet them. The persons like the described above are even less numerous in the Nature. Their quantity, one has to suppose, can be measured in units.
In order to collect an effective team, it is indispensable to use the tests and methodical approaches from the scientific briefcase that do provide the evaluation of personal properties of human beings, for example, "Indicator of Myers-Briggs" or the project of Andrew Morneau "Business Challenges" (their search and use is possible thanks to the service on internet). By our opinion, the selection of staff with the help of such tests will be better than — that based on the intuition, because the personal charm of a human being (charm of smile, charm ofvoice timbre, etc.) does not have any influence upon the test.
For the choosing process of the organizational structure of management of the company the question about optimum use of leader resources does have an importance that is not lower, — thus, the structure must be fitted to the company and to the leader resources of this company. But it is complicate to find the way, how to do this. The specialists share their opinions on the mentioned topic that they were elaborating during ten or more years and collecting at tens and tens of organizations. We do consider that it is necessary to come to know with their concepts and to use them in Georgian practice.
The specialists do advise us that everything begins from the evaluation of leader resources. Often in Georgia and in the other countries the directors of organizations do not appreciate duly the internal staff (in Georgia there is even a proverb with such sense: "The homegrown
Corporate governance and institutional investors
priest does not have a mercy"), and do give the preference to external candidates that they are informed the only positive properties about. Because of it, the directors are used to make a mistake and they do take into the management team a stranger, a person that may be really good but will have some problems during the adaptation process with the team.
As the next step, the specialists do advise us to distribute the tasks between these selected leaders. It is much more effective to distribute the responsibilities within the management group concerning the strategically important tasks, and then the respective persons will be required to work towards their arrangement on a daily basis. Each leader must be given an authorization to take all the needed decisions or to require the fulfilment of his/her tasks from any member of the organization. Also, it is reasonable not to collect the inter-conflicting tasks in front of the same leader, in order to let him/her to resolve them. Such tasks have to be dis-
tributed among the different members of management team, as in such a case the quality of a parallel control is much higher. After the distribution of competence domains, the services existing inside the company must be also distributed among the leaders. Each leader has to receive under own subordination the service that is the most necessary one in order to resolve effectively the problems under his/her responsibility. On this stage it is very important to realize that the distribution of services does not mean the making these services unavailable to other leaders and to their domains of curatorship. Here the discourse is going about the point that such services are cured by a leader that does need them most of all.
So, in the company as well as in the government of a country, a structure of management must correspond to its leader resources. If it will pass in such a way, than even finding the solutions for the most complicate ideas, decisions or problems will become a quite feasible thing.
References:
1. Kotter D. Interview. - URL: http://www.e-xecutive.ru/ca-reer/adviser/553538/index. php?ID=553538
2. Маслов И. И. Менеджмент лидеров, ж. "Финансовый бизнес", - № 1, - 2010.
3. Смит Э. Табу лидерства. О чем молчат капитаны бизнеса, - М., - Вершина, - 2007.
4. Adizes J. Leadingthe Leaders. URL: http://www.executive.ru/knowledge/morldtolist/345274/index. php?ID=345274
Rezart Dibra, PhD Professional Academy of Business Tirana, Albania E-mail: rezartdibra@yahoo.com
Corporate governance and institutional investors
Abstract: Institutional investors operate on the basis of well-defined risk-return criteria. Ownership concentrated among identifiable groups of insiders (e. g. family interests, allied industrial concerns, banks & holding companies) [l].Ownership dispersed among large number of institutional and retail investors. Corporate governance has become one of the most commonly used phrases in the current global business vocabulary. The importance of corporate governance for corporate success as well as for social welfare cannot be overstated. Examples of massive corporate collapses resulting from weak systems of corporate governance have highlighted the need to improve and reform corporate governance at an international level. This paper examines the role of institutional investors in corporate governance and whether regulation is likely to encourage them to become active stewards.
Keywords: Institutional Investors, corporate governance (CG), investors and investment, corporate social responsibility (CSR) etc.
1. Introduction gage with companies and hold the management to ac-
Shareholders — the corporate governance frame- count for its performance. Institutional investors are work is built on the assumption that shareholders en- financial institutions that accept funds from third parties
