The use of discrete computer simulation modeling to estimate return on leadership development investment

Organizational leaders seek monetary returns on their investments (ROI). Thus, making decisions to invest in human capital, such as in leadership development interventions, are often difficult due to the lack of research demonstrating monetary returns on leadership development investment (RODI). This study introduces an innovative approach to estimating leadership development investments and expands on previous research conducted by Avolio, Avey, and Quisenberry (2010), which was the first attempt to estimate leadership development RODI using utility analysis. Further, it is a unique study in that it uses computer simulation modeling to generate random distributions of each utility analysis variable to estimate RODI. Computer simulation modeling enables organizations to better estimate RODI for both current and future leadership development programs. Comparisons of RODI methods are conducted. Results demonstrate that potential gains from effective leadership development are greater than previously estimated but potential losses from poorly executed leadership development are also larger than previously estimated.     

HRD as design science

The aim of this study was to explore the evaluation practices of a sample of organizations in England and Wales who had signalled some commitment to training and evaluation by embarking on the UK's Investors in People (IiP) standard. A questionnaire survey was sent to 1,000 firms and usable responses were received from 394 organizations. It was found that formative and delayed evaluations were used less frequently than immediate and context (needs analysis) evaluations. In the majority of cases the responsibility for evaluation was that of managers and the most frequently used methods were informal feedback and questionnaires. Operational reasons for evaluating training were cited more frequently than strategic ones. Information derived from evaluations was used mostly for feedback to individuals and to inform the training process and less for return on investment decisions. There were some statistically significant effects of organizational size on evaluation practice. The results are discussed in terms of their implications for evaluation theory and research and HRD practice and policy.     

ROI: the building blocks for successful global organizations in the 21st century

As organizations move into the 21st century, past measures of organizational performance based largely on accounting and financial statements will be insufficient to meaningfully assess value. Short- and long-term performance will be increasingly determined by three resources: ideas, information, and investment capital, of which only investment capital is measured in traditional accounting and financial statements. Consequently, the 20th century orientation of return on investment needs to be expanded to include and account for both return on ideas and return on information. By focusing on these three measures of ROI the organization will be able to unleash creativity and obtain a sustainable competitive advantage. In this paper it is suggested that organizations should balance their focus on return on ideas, return on information, and return on investment, a ROI³ orientation for assessing organizational performance.     

Finding the niche to reposition leadership in Africa’s developing economies for the global highway: review of literature on leadership development programmes – methods and techniques*

Africa’s developing economies remain in critical need for leadership. This paper asserts that Africa’s new growth opportunities rest with leadership that could champion organizational performance, innovativeness, and good ethics among others. A review of extant literature on leadership development programmes (LDPs) was done to examine possible initiatives that leadership developers can use to influence leadership practices in Africa. This paper proposes that in Africa, LDPs can be used to inculcate authentic leadership practices and enhance networking and acquisition of innovative skills among others. Furthermore, LDPs could target the youth considering them as an investment into tomorrow’s leadership talent pool. The paper suggests that Africa’s niche for the global highway rests in contextualization of LDPs from other regions to Africa’s unique environment.     

Follower transformation as the linchpin of transformational leadership theory: A systematic review and future research agenda

Transformational leadership theory represents a cornerstone in leadership research. Despite an impressive empirical record highlighted by both the breadth of its nomological network and magnitudes of effects, scholars raise serious construct and content validity concerns. In this article, we address a remarkable oversight in the transformational leadership literature. Few studies have assessed the theory assumption that the positive individual, group, and organizational effects of transformational leadership are due to the transformation of followers in specific and enduring ways. We offer a systematic review of empirical evidence related to follower transformation as the conceptual foundation of transformational leadership theory. Findings from this review highlight the radical leap in the evolution of transformational leadership theory from nascent phenomena to mature paradigm. Calling for a return to nascent and intermediary phases of theory development, we conclude with a research agenda aimed at creating a stronger theory, better measures, and more actionable leadership models.     

Advancing the science of 21st-century leadership development: Theory,research, and practice

Leadership development seeks to understand, predict, and intervene effectively in addressing the questions of how individuals develop as leaders and how collections of individuals develop a capacity for leadership. These questions are attracting scholars interested in the factors and processes involved in developing leaders and leadership. Presented in the special issue is a set of state-of-the-science empirical studies and theory development articles representing 21st century leadership development. We also provide a brief overview of issues related to the leadership development field – broadly construed to include individual leader development – that are especially pertinent and where the research evidence is scarce or contradictory. These areas are theoretical foundations of leadership development, practices and methods of development and talent selection for development, accurately estimating return on investment for leadership development initiatives, the role of time in developing leaders and leadership, understanding and remedying biases and inequities in leadership development, and the role of development in mitigating the so-called dark side of leadership. Although we have learned much about leader and leadership development over the past 20 years, there is an ongoing need for more research and theory development especially with respect to identifying causally and practically relevant knowledge able to inform policy.     

Organizational Behaviour and National Cultures

A survey is presented of the degree to which organizational behaviour is found to vary between national cultures. The conceptual framework provided by Hofstede (1980) is used to interpret many of the differences reported. Aspects of organizational behaviour which are examined include classifications of managerial values by national culture, organizational structure, leadership behaviour, negotiation processes and human resource management policies. Some of the implications of the differences found for multicultural management, for career development and for training programmes are then explored. It is concluded that there is an increasing need to prepare managers for multicultural experience and to ensure that evaluations of selection, training and career planning are more firmly grounded than is apparent from the present literature.     

No longer a solo practice: how physician leaders lead

The authors conducted a national study to determine the factors associated with the success of physician leaders. They utilized the Leadership Practices Inventory (LPI) and a demographic survey followed by individual interviews with respondents. Data analysis revealed several implications for the selection, training, management, and career development of physician leaders. The results suggest that: Physician leadership training should have a strong focus on the "human side" of management, including negotiation, organizational "politics," conflict resolution, team building, and motivation. Data management and finance should be a focus represented in the curriculum. Mentoring relationships should be developed as an aspiring physician leader pursues a career shift. Self assessment, including an analysis of style, strengths, best potential organizational fit, and specific areas of strength and weakness should be an integral part of the development of an aspiring physician leader. Screening mechanisms to ascertain a physician's motivation to move toward a full-time leadership role should be developed to ensure appropriate intent. To facilitate this implication, more effective assessment tools need to be developed.     

The effect of investment on unit cost and on profit

This paper investigates the effects of investment decisions on unit cost, profit and return on capital. Its purpose is to propose an alternative formulation to conventional cash flow methods for investment appraisal. This formulation can be combined with a methodology for assessing the short-run effects of management decisions and/or external factors on cost and profit performance measures.     

How leadership matters: The effects of leaders' alignment on strategy implementation

Research has confirmed that leader behavior influences group and organizational behavior, but we know less about how senior leaders ensure that group and organizational members implement their decisions. Most organizations have multiple layers of leaders, implying that any single leader does not lead in isolation. We focused on how the consistency of leadership effectiveness across hierarchical levels influenced the implementation of a strategic initiative in a large health care system. We found that it was only when leaders' effectiveness at different levels was considered in the aggregate that significant performance improvement occurred. We discuss the implications of these findings for leadership research, specifically, that leaders at various levels should be considered collectively to understand how leadership influences employee performance.     

How top management team behavioral integration and behavioral complexity enable organizational ambidexterity: The moderating role of contextual ambidexterity

Little is known about how top management teams (TMTs) make balanced strategic decisions (exploration and exploitation) and spearhead organizational ambidexterity. To address the theoretical call to explore how TMTs can help create ambidexterity, we propose a theoretical model where TMT behavioral integration cultivates behavioral complexity in a TMT that can build organizational ambidexterity. Further, we argue that the relationship between TMT behavioral complexity and organizational ambidexterity is moderated by contextual ambidexterity. Drawing on research in the areas of leadership, TMT, organizational context and ambidexterity, we explore implications for future research.     

NEW TECHNOLOGY INVESTMENTS IN MULTISTAGE PRODUCTION SYSTEMS

The introduction of new technologies in production and manufacturing (such as robotics, flexible manufacturing systems (FMS), and computer-aided design and manufacturing (CAD/CAM)) frequently motivates capital investment decisions. Traditionally, the need for additional capacity has motivated the evaluation of investment decisions which were undertaken based on financial factors such as the net present value (NPV), internal rate of return, taxation, and depreciation. This research integrates investment decisions with operational decisions for the case of multistage production assembly systems. We show that for such systems investment decisions affect not only the financial structure but also production scheduling and material flow in the system.     

Is there potential in assessing for high-potential? Evaluating the relationships between performance ratings,leadership assessment data,designated high-potential status and promotion outcomes in a global organization

While leadership is a critical component of organizational success, organizations need to be more effective at classifying talent based on future potential vs current performance. This need raises the question as to whether the assessment of leadership potential is truly adding value or enhancing the talent review and classification process. Data from 9,784 participants in PepsiCo’s Leadership Assessment and Development (LeAD) program—a multi-trait, multi-method (MTMM) assessment and development process—are used to examine relationships between individual performance, assessed potential, organizationally designated potential, and promotion rates post assessment. Results from the analyses indicate that assessed potential provides unique variance above performance alone in determining process outcomes (i.e., designated potential and promotions), and therefore can be useful for making more informed talent management decisions. The applications of these measures within the current organization as well as limitations of the study and areas for future research are discussed.     

基于产品生命周期的多阶段剩余收益项目决策模型

剩余收益模型（Residual Income Model,RIM）是评估公司权益价值的经典模型,特别地,奥尔森系列剩余收益模型由于可以利用历史财务与会计数据而得到广泛运用。本文在一般剩余收益模型的基础上,运用规范研究、逻辑推理等方法,基于产品生命周期理论,即项目处于产品生命周期的不同阶段时,其净资产收益率不同,在增长期的净资产收益率持续上升,衰退期的净资产收益率持续下降,而成熟期的净资产收益率则围绕行业平均水平波动,从理论上就项目投资价值的评估构建了多阶段剩余收益项目决策模型,并就所构建的多阶段剩余收益项目决策模型进行参数赋值分析。研究结果表明该新构建的决策模型具有较好的理论和运用价值,可以作为一种有效的项目投资决策模型。本文的研究一是拓展了剩余收益模型的应用,从主要用于对公司权益价值的估值拓展至对项目投资决策的评估;二是有利于寻求项目投资决策的价值最大化。     

How to build social capital with leadership development: Lessons from an explorative case study of a multibusiness firm

The organizational impact of leadership development practices is still not fully understood. Research confirms that in some cases effects can be found and in others not. Most of these attempts search for contribution to a company's human capital. A contribution to social capital development remains an unexplored source of variance in understanding how leadership development impacts organizational performance. This paper therefore explores—from a strategic management perspective—how leadership development practices may contribute to social capital development. We chose the strategic context of a large multibusiness firm in which social capital across business units play an important role for competitive advantage. The exploratory case study reveals that: 1) Social capital differs regarding its intensity and develops through stages characterized by contact, assimilation, and identification experiences. 2) Leadership development practices differ in their potential contribution to social capital development stages and should therefore be designed accordingly.     

How power relations structure the evaluation process for HRD Programmes

Centring on the impact of power and politics embedded in the evaluation of training programmes, this study aimed to understand how organizational power relations affect the evaluation process for a training programme. A qualitative case study for the managerial leadership development programme of a Korean insurance company was designed. The HRD practitioners held control throughout the evaluation, and their dominant power was maintained and reproduced by other stakeholders' recognition of their expertise in training and development area. However, due to the structural relationship between the HRD unit and the corporate management, the HRD practitioners perceived themselves as marginalized. Unequal power relations were sustained in the evaluation mostly by stakeholders' self-regulation of their conduct in terms of norms, standards and expectations about their roles. This study found that despite the immense criticism of reaction measures, their continuing use in evaluation could be traced to their meaning as a political bargaining tool.     

Developing the theory and practice of leadership development: A relational view

Organizations are demanding leadership development that is more sensitive to context and supportive of organizational transformation, and critics of current leadership development practices claim they are too narrowly construed to yield meaningful results. Relational views of leadership may be the disruptive idea that helps reconstruct leadership development in ways that meets these concerns. To better understand how these relational views can impact the practice of leadership development, we examined the use a specific relational framework in one leadership development organization. We found that leadership development professionals used the framework to convey a relational point of view on leadership to their participants, to facilitate collective identification and action on leadership issues, to develop leadership by focusing on leadership culture, and to enable the democratization of leadership development. We use these findings to advance a constructive-developmental perspective on the development of leadership development.     

Testing a longitudinal model of distributed leadership effects on school improvement

A central premise in the literature on leadership highlights its central role in organizational change. In light of the strength of this conceptual association, it is striking to note the paucity of large-scale empirical studies that have investigated how leadership impacts performance improvement in organizations over time. Indeed evidence-based conclusions concerning the impact of leadership on organizational change are drawn largely from case studies and cross-sectional surveys. Neither approach satisfies the design requirements for studying the contribution of leadership to performance improvement in organizations. This paper tests a longitudinal, multilevel model of change in distributed leadership, school improvement capacity, and student performance over a four-year period. The results suggest that change in distributed leadership and organizational capacity for improvement make significant contributions to growth in student learning in reading and math.     

多层级领导对员工信任、工作绩效及创新行为的影响模式研究

信任已成为企业和学术界解决组织中管理要素--人--不确定性问题的重要手段.本文基于不同层级领导对员工的不同影响特点,探讨了多层级领导建立员工信任的不同途径,建立了多层级领导对员工信任及创新等绩效的影响机理模型,并通过中国的实际数据及结构方程模型对此进行了初步验证.研究结果为解释组织内复杂的领导与信任现象及提升组织内的信任水平、创新能力等提供了有益参考.     

债务容量与成长期权关系研究

本文利用期权博弈方法,探析投资成长期权如何影响公司债务融资决策问题。在不确定条件下,综合考虑利率、税率、债息和债务的期限结构这些影响融资和投资的重要因素,构建期权博弈理论模型,确定企业的最优债务容量,并运用数值方法给出了债务容量与投资成长期权的回报率之间是非线性的"U"形关系的结论。研究表明,当投资成长期权的回报率较低时,债务容量随着投资成长期权的回报率增加而债务容量减少;当投资成长期权的回报率达到较高水平时,债务容量随着投资成长期权的回报率增加而债务容量增加。从而给出了关于债务容量与投资成长期权之间的内在关系的新理论解释。