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The Development of Management and Leadership Capability and its Contribution to Performance


The proposition that the economic and social wellbeing of society, and those in it, is
substantially dependent on the effective and efficient performance of organisations of all
kinds, that this in turn depends on adequate or excellent management and leadership
capability, and that this in turn can be learnt and developed, would be accepted by many as
likely to be true in common sense and everyday observation.
It is also the case that organisations of all kinds, Government and Government agencies, and
individuals investing in their own development, in the UK and internationally, behave on the
basis of this belief, through the very substantial investments that they make in management
and leadership education, training and development, and initiatives to support this. Boyatzis
et al (1996) estimate the global investment as $37 billion.
However Porter (2003) in his recent influential report on the British economy is cautious in
being confident that management is a decisive factor in organisational and national
performance. From his largely macro-economic perspective and on the basis of international
comparative economic data he places a lot of emphasis on the business environment of the
company: infrastructure, liberality of economic and regulatory policies, investment traditions
and practices. He positions management capability, and particularly the willingness and
ability to adopt ‘modern management techniques’ as much or more as a consequence of
investment alongside advanced technology and highly skilled labour, than as a likely cause of
making increased investment, up-rating technology, strategic positioning in high added value
trading networks and developing workforce skill levels. This debate has the potential for
being a purely theoretical and philosophical ‘chicken and egg’ debate. However the
empirical contribution to this debate from this study is to assess the evidence that developed
management and leadership capability drives, rather than is driven by, investment,
innovation, lifting workforces skills, and taking advantage of circumstances external to the
firm. This part of the debate is couched largely in terms of the private sector, but similar
principles can be considered to apply to the public and not-for-profit sector in terms of the
efficiency and effectiveness with which they achieve their purposes in the large sector of the
economy that they occupy.
1 84478 286 7
NONE
Management
English
2004
1-101
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