THE IMPACT OF HIGH TURN OVER IN LEADERSHIP ON AN ORGANISATION

BY KELVIN SOVI

On November 6, 1986, Sir Alex Ferguson took up as the manager of Manchester United. After a few initial disappointments from players, he came back with a bang when his team won the League Cup during 1991-92 and the Premier League in 1992-93. His team-building tactics, by bringing-in talent from other teams to the Red Devils’ squad showed remarkable results. Sir Alex Ferguson worked with talented players like Dwight Yorke, Ryan Giggs, Teddy Sheringham, Paul Scholes and Ole Gunnar Solskjær and won the memorable FA Cup Final against Newcastle United (2-0) in 1998-99. In that season, the Red Devils’ squad also bagged the UEFA Champions League and the Intercontinental Cup. Under the efficient coaching of Sir Alex Ferguson, Manchester United won the Premier League (10 times), the FA Cup (5 times), the League Cup twice, the FA Charity/Community Shield (8 times), the UEFA Champions League twice, UEFA Cup Winners' Cup and UEFA Super Cup once each. Despite some valleys in Man United’s performance along the way, Sir Alex Ferguson has not received the sack! Similarly, Arsenal’s coach, Arsène Wenger has been with them since 30 September 1996. On the other hand, the Zambia National team has had many coaches in same period and the effect has been disastrous.

But for Colonel Muammar Gaddafi, his long stay in power that saw self deification has resulted in a very sad ending. Libya’s economic progress under his leadership, which should have been the antivirus to the revolution, failed to provide an anchor against the movement. There are still some other countries in the Arab world in whose direction the wind of change is blowing. Leadership is fluid because you never get to know what will knock on your door the next morning. In the political world, the people must have the freedom to change leadership through the ballot box or else they will seek other means.

In this paper, I seek to examine changing leadership in a corporation and its impact on the organization as whole and on the employees. Changing leaders is an important organizational decision which is likely to affect the strategic direction of the organization. In a corporation, leadership changes occur due to:

(a) Increased pressure for reform

(b) Decrease in performance

(c) Changes in share holding

(d) Significant differences of opinion among leaders within the corporation

(e) Voluntary separation

(f) Disciplinary severance

(g) Political environment

It is also true that in corporations managers lose their jobs over very flimsy grounds. If we were to conduct a survey among former CEOs under the title ‘Why I got fired’, we shall discover some very petty reasons.

Changing leadership becomes inevitable sometimes because a leader that has been in office for several years can often become increasingly narrow minded and inflexible about considering other alternatives. The longer a leader is in office, the more time there is to institutionalize power relations. Moreover, leaders who have been in office for a long time may rest on previous accomplishments or become complacent. Organizational reality becomes taken for granted, and it is difficult for organizational members to question the strategic direction.

Rick Wagoner was CEO for 8 years and at GM [General Motors Co] for more than 30. Wagoner joined GM in 1977, has had a senior role in GM management since 1992, and became CEO of the company in 2000. He is considered responsible for increasing GM's focus on trucks and SUVs—at the expense of the hybrids and fuel efficient cars that have become more popular in the last couple of years. But 29 March 2009, the Obama administration ousted Wagoner from GM. According to www.wired.com ,in his address President Obama said Wagoner’s ouster was not a reflection on his stewardship of the beleaguered automaker but "rather a recognition that it will take a new vision and new direction to create the GM of the future." But Considering GM’s stock plunged from around $90 a share to less than $3 a share since Wagoner moved into the corner office eight years ago, maybe the ouster was a reflection of his leadership! Rick Wagoner was replaced with Frederick "Fritz" Henderson as CEO. But just after eight months of Henderson’s leadership, the board determined that the company wasn't changing quickly enough. Hence they opened the exit door for him and he left! Wagoner is fired because a new vision at GM is needed but Henderson was ousted because he was not changing the company quick enough [in eight months?] to get the new vision envisaged by President Obama.

While leadership changes are inevitable, high leadership turnover [where leaders have a very short office tenure] has a negative impact.

Impact on the employees

Usually, when decision makers make changes to leadership in a corporation they do not take into consideration the impact of the change on the employees. They are pre-occupied with making the changes in leadership in order improve performance. They consider less how many times they have changed managers/CEOs. The general workforce remains essentially the same amid changing leadership. In his book on management, Kreitner defines management as process of working with and through others to achieve organizational objectives in a changing environment. This means that leaders do not work in a vacuum. It is for this reason therefore that the impact of leadership change on employees must be considered.

Some of the impacts of high leadership turnover on employees include:

(i) Reduced loyalty. When employees realize that the management team changes abruptly and frequently, their loyalty to the leadership is reduced. Each time there is a change in management team, employees are subjected to change management. They have to understand the new leader(s). But in a corporation where leadership change is abrupt and frequent, employees find themselves with new management before they settle down with the previous change. Inevitably, change saturation occurs leading to frustration, apathy and skepticism on the part of employees. For every new leader, employees begin to tick the calendar to mark predicted exit!

(ii) Disengagement. The elements that define engagement include emotional aspects, like taking pride in working for a company, and rational aspects, like understanding how your job fits into 'the bigger picture'. These elements wear out when employees become disengaged. They become indifferent and begin to put in less. Employees begin to question the seriousness of their corporation and this creates a serious risk for the organization.

(iii) Emotional. Employees can become stressed. Imagine walking to your manager’s office to present a report only to find another new face after one year! Employees can become stressed because of being frequently subjected to different leadership.

Impact on the organization

In an article that examined leadership succession among university presidents, the authors state that ‘’ Strategy researchers have emphasized that the characteristics of the CEO as well as his time in office can affect the strategic direction of an organization (e.g. Hambrick/Fukutomi 1991).’’ When a manager or CEO is replaced, it is theoretically anticipated that the new person will make things better. But no one can effect a new strategy immediately without synchronizing it with existing budget and agreements. A new leader has to understand the problems that the organization is facing, the people with whom he has to work and the legislation governing the business environment. If the new leader has come from outside the organization, he will lack the historic perspective of the organization and will require more time to settle down before he can form his own vision. One thing we must realize is that there is always a dead time when leadership changes occur. Organizational myopia is responsible for frequent change in leadership. Changes are made based on current happenings while ignoring the future prospects. With frequent leadership change come frequent shift in strategy. The end result is that the performance of the organization that is supposed to benefit from change goes down. The corporate world must realize that there is no angel CEOs but fallen human beings!

Image building is important in attracting good workers. However, if people know that an organization has a tendency of frequently replacing its leadership, they will grow cold feet. Most likely, such an organization will always hire leaders that have had the shortest term wherever they have been! Such leaders have one aim- make your money, no matter how short the stay! They are like boxers who chose to fight in a heavy weight championship bout when they fully know that they will not succeed. The only driving factor is that they will have some coins in their pockets. If at all good leaders are attracted, they will voluntarily leave out of frustration. Certainly, this is a bad image for any corporation. One little illustration will drive the nail through:

Chitengi: What are you currently occupied with, Kahuma?

Kahuma: I got myself a new job as Manager- Finance and Planning with Twikatishe Corporation

Chitengi : You would be luck to stay!

Kahuma: Why?

Chitengi: Have you asked anyone about how many folks have been in that job for the last 10 years?

Kahuma: No

Chitengi: To the best of my knowledge, they have had eleven folks in that job for the last ten years!

Kahuma: Goodness me, I wish I had met you earlier.

The final impact really is on the general performance of the organization. The corporate world must realize that there are no angel CEOs or Managers but fallen human beings! Without giving a leader sufficient time to execute his strategy, organizational success cannot be attained. Employee disengagement mentioned earlier, as a result of frequent leadership change, cripples the operations of an organization in a very subtle way. The minimum sufficient tenure of office for a leader should be four years.

Leadership is not like clothes that must be constantly changed, although even clothes are not thrown when dirty but are just washed! So those with the power of the pen must look back and see how many times leadership changes have taken place in their corporation. Leaders who have had the opportunity to finish their tenure of office would attest to the fact that they managed to roll down their vision to the benefit of the corporation.

References

1. R Kreitner Management
2. http://www.allbusiness.com/management/change-management/8900448-1.html
3. http://www.siralexferguson.net/
4. http://www.management-issues.com/2006/8/24/research/employee-disengagement-a-global-epidemic.asp
5. http://www.msnbc.msn.com/id/34227871/ns/business-autos/t/general-motors-ceo-henderson-out/
6. http://www.wired.com/autopia/2009/03/obama-to-wagone/
7. http://www.politico.com/news/stories/0309/20625.html

CORPORATE CRUELTY- ARE YOU GUILTY OF IT? WHAT IS THE MISSING INGREDIENT?

CORPORATE CRUELTY- ARE YOU GUILTY OF IT? WHAT IS THE MISSING INGREDIENT?

No one ever creates a company with intent and design to ill treat his employees. May be some, in their most fallen state of mind, would have such a design. But while such a motive might be farfetched, the practice of some organizations reveals at the heart of it, corporate cruelty. Local government workers in Zambia found themselves working for three or more months without pay , under the leadership of President FJT Chiluba. They went on strike, but alas much to their on dismay, they were still not paid on a monthly basis. You have heard of Small and Medium Enterprises that have gone for more than two or more months without the employees getting paid while the directors stuff their lives with the most luxurious vehicles on the market! Recently, I heard of a small company that had a good contract with a large corporation. But alas, its employees went for months without pay! This cruelty is easier to identify.

However, large corporations [with all their ability to pay] can become cruel. The cruelty stems from the staff hired in management positions. In article on Corporate cruelty, one Chris J Walker wrote ,’’ Wrong people in wrong jobs causes domestic breakdowns, social violence, office politics and personal health breakdown’’. When corporations set out recruit new staff, they look out for the best, be it at the highest or lower level of the organizations hierarchy. No organization sets out to hire cruel employees. In fact, the interview questions reveal a quest to hire good people. The discussions in an interview room that lead to final selection are enriched with noble motives. The reality is that your best hire might sometimes turn out to be the cruelest employee. Your best manager might turn out to be a cruel leader.

Managers have huge influence on the image of a corporation. By and large, the culture of an organization revolves around the philosophies of its management. If an organization is termed to be uncaring, it is because its top management has embraced philosophies that portray an image of not being concerned much with employee welfare. In fact, whatever corporate managers pay a blind eye to, becomes grafted into the organization’s image. Well, you might ask, what really qualifies an organization to be termed cruel?

Firstly, harsh working environment. It is a well known fact that employees spend most of their time at place of work. A harsh working environment constitutes the following:

(a) Abnormal working hours. The human body has a limit and needs rest. But some corporate leaders just don’t fancy an employee resting. Somehow, in their subconscious they seem to classify employees as machines and not people. How else can one explain a dismissal of an employee who fails to turn up for work on the third day after having spent 48 hours at work , without rest, repairing machinery in order to put a plant back on the production line? Fired! Why? Because the 40 hours were considered as over-time and so the third day was his supposed to be normal duty!

(b) Abusive language and shouting. I heard of a manager who could hardly issue instructions without using bad language. He was a bully boss. Whenever, he opened his mouth, there was always an avalanche of unpleasant words. He demeaned his subordinates to the point that they felt they were less human beings! Some leaders just can’t talk in a friendly tone. Somehow, they believe that shouting on top of their voices and bullying their way through will get them results. Virtually, they treat employees like slaves and not people. When a corporation has a tendency to hire such leaders, it only reflects what kind of philosophies top management has embraced. As the saying goes, birds of the same feathers flock together. If they only hire those that will ‘’kick’’ employees to get things done, then they like it that way!

(c) Absence of safety attire. The safety of men is important. In a coal Mine in Zambia, it was discovered that Miners were working in sandals instead of safety boots. At a Chinese owned Mine, an explosion occurred that led to loss of lives because the safety of men was not on that corporations top priority list. Expecting employees to be productive without providing a safe environment is definitely cruel.

Secondly, when there is corporate greed! That’s it, corporate greed! When leaders in a corporation focus on large earnings for themselves and maximize profits by paying lower wages to the general workforce, there is certainly an element of greed. While it is a fact that there are no shops purely for the poor, they imagine that their employees are living far beyond their means when they hear them complain about pay. In a further, quest to maximize profits, some organizations refuse to pay overtime to employees even when they have worked long hours. The story of Pharaoh and the Israelites is a good historical reference. Recall how the Israelites were treated by Pharaoh-‘ You are no longer to supply the people with straw for making bricks; let them go and gather their own straw. But require them to make the same number of bricks as before; don’t reduce the quota.’ Exodus 5:7-8. Others flout statutory regulations relating to pay, with impunity. Strange enough, many in leadership completely forget what they were before they got their promotion.

In an era of much emphasis on corporate governance, ethical conduct must be the bread and butter of corporate leaders. Cruel leadership negates any efforts towards good corporate gonernance.

LEADERSHIP

BY KELVIN SOVI

We all like to think we have some leadership qualities and strive to develop them. We look at leaders in all walks of life seeking to identify which qualities, traits and skills they possess so we can emulate them. Admit it. We all feel a touch of awe when someone has it: the CEO title. The power, the salary, and the chance to Be The Boss. It’s worthy of awe! Or when we hear of a President, Prime Minister- our being naturally shrinks into awe and admiration.

It is said that leadership is infectious! Leaders influence the culture of an organization. Remember the ‘’ New Culture’’ brought by Zambia’s former republican President FTJ Chiluba? The safari suits disappeared from the political scene when he ascended to power. And for the US, there is President Obama’s ‘’ Yes we can’’!

A fundamental question remains "What is the essence of leadership that results in successful management, as opposed to failed management?" At least part of the answer can be found within the word itself. According to one Dr William P. Fisher Ph.D., the word leadership summarises the following traits : Loyalty, Excellence, Assertiveness, Dedication, Enthusiasm, Risk Management, Strength, Honor, Inspiration, Performance.

Indeed, there are some underpinning traits that must be present in a leader, albeit basic.

I wish to add another dimension in looking at the word LEADERSHIP.

Long sight- This is not about the medical condition of Hyperopia (farsightedness). But that a leader must have ability to focus on the future. He should not be myopic when looking at issues. Leaders should be able to see beyond the horizon!

Ear- The art of listening is a must in a leader. Why should a leader have a listening ear? They may not necessarily agree with what is said, or choose to take the information on board if it isn't appropriate and they know better, but by listening to their subordinates, leaders give themselves an opportunity to gain information. Subordinates often know what's really going on behind the scenes at work, and may have firsthand knowledge due to experience about how a business could run more smoothly. Deaf leaders are a danger both to themselves and the organization.

Allegiance- The act of binding yourself (intellectually or emotionally) to a course of action. A leader must have allegiance to the organizations values and objectives above every selfish motive. Leaders in the corporate world must have it- allegiance! Allegiance is key to good corporate governance.

Discernment- The act or process of exhibiting keen insight and good judgment. In its simplest definition, discernment is nothing more than the ability to decide between truth and error, right and wrong. Discernment is the process of making careful distinctions in our thinking about truth. Decision making is a major preoccupation of leaders in the midst of an avalanche of information. Keen insight and good judgment in a leader would save an organization from much trouble.

Energy- Scientists have rightly defined energy as the ability to do work. Leaders must poses energy to function effectively. Leaders must be alive to their organization. Energy makes one to be enthusiastic and purposeful.

Resilience- The ability to recover quickly from change, or misfortune; buoyancy. recovering readily from adversity, depression, or the like. Leadership in testing times can be difficult, frustrating and can breed fear and despondency. Yet we know that challenges shape the leaders of the future. Leading in a good times is easy. Adversity is the crucible which differentiates greatness from mediocrity. A leader must understand that tough times will come and there resilience is an imperative trait when it comes to radiating hope in such times.

Self control- The trait of resolutely controlling your own behavior, motions and desires. Leaders are target of much talk- be it good or bad. They also poses power which if not properly checked, can be used excessively.

Hospitality- Cordial and generous reception of or disposition toward guests. Leaders receive all kinds of guests. The way they treat the guests impacts greatly on an organizations image. It sends a message on what type of relationships .

Integrity- Integrity is the quality of having high moral principles, being reliable and trustworthy. It is also being sincere and being trustworthy. Nothing can guarantee social stability and confidence among people like honest, it is considered one of the basic foundations on which organizations are built; the moment it disappears, distrust and lack of cooperation take its place in the heart of people. In the book of Proverbs in the Bible, wise man King Solomon said ‘’ A good name is more desirable than riches, to be esteemed is better than silver or gold’’

Productivity- At the end of the day, leaders must be productive. A leader should have a track record of producing tangible results, irrespective of the size of what they have been involved in. If one has been productive on a micro level, they can scale up their efforts to macro level.

Whenever you think about leadership, let the traits discussed above should come to the fore:

Long sight

Ear

Allegiance

Discernment

Energy

Resilience

Self-control

Hospitality

Integrity

Productivity

ZAMBIA NEEDS GOOD LEADERS MORE THAN FINANCIAL AID-PART I

Any person opposed to aid in Zambia is viewed as an enemy. Worse still if such a person is Zambian. He will be classified in the most unpalatable terms that the dictionary can offer to the politicians and those that subscribe to the ideology that aid from Europe and the United States is Africa’s right. Some believe that the colonial masters must pay back the proceeds of the scramble for Africa. They further assume that the payback time is not yet over! But the question is: Does Zambia need financial aid? Has the assistance so far provided weaned Zambia from the dependence syndrome? Its worth noting that to date, Zambian leaders are still going on global trotting missions to ask for financial aid. The recent global financial crisis seems also, paradoxically, to have catapulted the begging bow! Some argue that those responsible for the recent global financial crisis have a responsibility to help African countries survive through the economic turmoil.

Looking at the amount of financial aid that Zambia has received, I believe very strongly that Zambia does not need any more financial aid! Donors have made every effort to support our economy, but alas, we are still degenerating! The blame is definetely not on donors but on our leaders , yes on our failed leadership. I believe that Zambia, more than anything else, needs good, faithful and visionary leaders. Is it not flabbergasting and enigmatic to see an Zamibian leaders going round Europe, America and Asia to woo foreign investors by telling them that Zambia has rich natural resources? Have you ever seen a poor man with a treasure who goes out to a rich man to ask him to come and explore the treasure and then in turn give the poor man a little something in appreciation? It sounds ridiculous, but that is what is exactly happening among our leaders!

We are so engrossed in the idea that someone from out there must come and sort out our economic difficulties. The rich natural resources that we have is proof enough that we do not need any more financial aid but a leadership with a vision to motivate its people to exploit the resources. In Zambia, the cry for foreign investment is the politician’s breakfast, lunch and supper. They would rather give tax incentives to foreign investors than indigenous entrepreneurs. We have seen local businesses go down without government help but government is quick to attend to foreign investors! This, to me, presents an inferiority complex on the part of our leaders.

Listening to this years budget presentation by Dr Musokotwane, I hardly saw any plans for economic development. Much of it was just traditional allocations! There was nothing in it to stimulate thinking and action on ordinary citizens. There was no mention of small and medium business enterprises in the budget. Simply put, I couldn’t figure out where we are going as a country in this year's budget- no visionary approach!

You can give a man a lot of money and other resources, but if he has no wisdom to use it in order to wean himself from dependence on aid, you are simply wasting your time!
Lack of good leadership has resulted in aid going down the drain. What we need now, is investment in leadership training among the youths. I should have actually started with a call to leadership training among our current men and women we elected! The executive and parliament should start attending leadership training sessions. I think that pastors with sound biblical teachings can help in leadership training.Perhaps, this might salvage the government from the current underperformance!!!!

ZAMBIANS MUST BRACE FOR HARD TIMES

BRACE FOR HARD TIMES

The current economic climate in the country is indicative of hard times to come. Although, politicians were boasting of reductions in fuel and mealie-meal prices being indicative of a working government, it is clear , at least to me, that the boasting is highly misplaced. Why do I say so? First of all the reduction in fuel is a matter of course because the global price for the commodity drastically plummeted to about $ 40 per barrel. With such a reduction on the world market, we all expected the pump price to reduce. It would have been morally wrong to maintain high pump price under the circumstance. Secondly, the high price of meali-meal was the ruling Party’s own making. How? During the run up to the last presidential bye-election, ruling party increased the maize floor price through Food Reserve Agency to please farmers. The farmers were happy to make more money. Did they expect the price of mealie-meal to remain the same with an increase in maize floor price? That would have been ridiculous! With the euphoria of elections gone, government was now faced with the reality: high mealie-meal price- caught up in their own web! So the only solution for them to escape the wrath of the citizens was to release maize at lower price through the FRA. Do you call this success when a man is simply sorting out the messy he has created?

The dark cloud that hangs over the mining industry will have serious ripple effects. Do not think it will just affect the employees in the mining industry. Take for instance, the closure of Luanshya Mines Plc that has left almost 1,500 workers in the cold. The government has lost a lot of revenue it expected to collect in form of corporate tax and pay as you earn, not just from LCM but also from the contractors that were doing business with LCM. If each employee was contributing an average of one million kwacha in form of PAYE, then government has lost an anticipated monthly contribution of K1.5 billion! The banks that gave out loans to LCM employees have also lost out. There will be a reduction in bank deposits ,in due course. The buying power in Luanshya will reduce and so there will be less spending and this will affect shop owners.

The suspension of operations by Zambian Airways is another case in point. This is not just about an airline suspending its operations. Whatever revenue the government , through its agencies, was collecting from the airline and its employees will be no more.
Even though one minister is quoted to have said the suspension will not largely affect the tourism industry, I think that such a statement amounts to burying the head in the sand!
With the aforesaid, governments revenue from local resources this year will definitely be reduced. And this is where the hard times will set in! Prophet of doom? No. We must begin tightening our belts before another does it! I am wondering what will happen to PAYE and the other government levies in this year's budget. I am waiting to see what Dr Musokotwane’s budget will unveil under the circumstances. A chain reaction is surely coming!

JUST LANDED ON THE BLOG!

I have just become a blogger. I hope to post articles of interesting analysis, by God's grace. To all my Luvale friends, I say : twayenu mutange ha blongo yami, mwane!