Identify The Seriousness Of Derailment Business Essay Example
Identify The Seriousness Of Derailment Business Essay Example

Identify The Seriousness Of Derailment Business Essay Example

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  • Pages: 8 (2010 words)
  • Published: October 12, 2017
  • Type: Research Paper
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The purpose of this paper is to emphasize the seriousness of derailment, its impact on individuals and organizations, and how we can minimize the occurrence of derailment. Due to page limitations, the focus will be on executive level derailment, which has a greater impact on the loss of human capital compared to lower level employees. A derailment chart will be provided to illustrate the main points discussed in this paper. By examining different preventive measures against derailment factors, we will see their importance in implementing them within organizational functions to attract talented individuals and minimize losses. In the introduction, the significance of derailment is explained. Derailment is compared to a train accident, but in this case, it refers to a career development issue related to a manager's path. Executive derailment occurs when managerial employees deviate from their original career pa

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th, causing harm to the organization's overall performance.The original calling path refers to the timeline or potential status when an individual enters the company, works, and becomes promoted to the top management position once they have a significant role in the company. The derailment survey has a long history in corporations worldwide and is monitored by Centre for Creative Leadership (CCL) since the 1970s.

3. Why do people derail?

It is common for individuals to dream of achieving more recognition from their organizations, the people around them, and even society. Therefore, these corporations use promotional tools to motivate and empower the value-added group to positions like senior management because they have the ability to achieve great results based on their successful past records. Research from the past decades indicates that many high-potential directors with a vast accumulation of

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strengths often develop major weaknesses later in their career, especially at the beginning of their managerial path [10]. Usually, derailment behavior arises from the employee after the promotion or when they are required to lead a team. CCL has identified four basic pre-derailment syndromes: problems in structuring interpersonal relationships, inability to meet their own business objectives leading to an inability to meet organizational objectives, inability to develop, shape, and lead a team.

3.1 Problems in structuring interpersonal relationship

Struggling and facing significant opposition to change or adapt to lower versions is common during the passage.
Essentially, there are two classes in which we can categorize leadership within an organization: task/solution-based leadership and relationship-oriented leadership. Task/solution-based leadership primarily focuses on achieving desired outcomes, requiring individuals to complete their assigned tasks on time. Often, managers who struggle with interpersonal relationships excel in task/solution-based leadership, propelling them to higher levels of management.
Interpersonal relationships are defined as bonds or connections between two or more people. The strength of these bonds can be built upon passion, personal appeal, and affinity, which form the basis of effective people management [1]. Those who possess strong interpersonal relationships have an advantage in managing people, as their subordinates and superiors have a preference for them. This leads to smoother operations, objective accomplishments, and enhanced mutual understanding.
In contrast, lacking interpersonal relationship skills can have a significant negative impact on higher-level positions that require a significant amount of relationship-oriented leadership abilities.The text suggests that instability in interpersonal relationships could indicate other problems in managing relationships, such as insensitivity towards others' feelings and being over demanding. Interviews with employees from Fortune 500 companies revealed that many

derailed directors share these common behaviors or backgrounds. These behaviors may stem from their past successes and the use of their accomplishments as tools to further their aspirations. For example, one case from IBM in 2003 involved a derailed director who became a dictator by controlling all the decisions and tasks in his department. As a result, directors with interpersonal relationship problems tend to avoid communication, collaboration, and prefer to work alone. Ultimately, their inability to meet their own objectives leads to an inability to meet the business objectives as well. This could be due to being overwhelmed with work, which also decreases trust from their subordinates due to a lack of authority. In summary, these directors make everyone's lives difficult.It would be a boost if he/she could refer to these records after publicity. However, not all of these directors are able to maintain their previous records as team dynamics come into play and work performance and expectations vary based on each team member's background. Failing to meet personal performance expectations would cause these talented individuals to falter. This is primarily due to the inability to deliver the promised results, which would result in increased pressure and decreased trust from superiors, as well as a loss of motivation and encouragement for their subordinates. Managers would become demoralized and lose confidence in themselves if they are unable to consistently achieve the desired outcome. In addition, those managers who struggle in their relationships with their staff often face difficulties in managing them. They perceive their subordinates as burdensome and are unable to effectively utilize their staff to complete tasks. Consequently, they are unable to form an efficient

team within a given time frame, as the team remains in the forming stage according to Bruce Tuckman's model (forming, storming, norming, and performing stages discovered in 1965).In this current situation, directors would not be able to achieve their expected results as most of the time has been wasted in the storming phase, which is a non value-added phase. Moreover, directors who are promoted to a leadership position would also have to deal with a new boss who has a different style. Some of these derailed directors may become too dependent on their previous manager and struggle to adapt to changes. For example, those who had a rigid mindset would have less flexibility in their decision-making during work. However, when they are transferred and placed under a highly delegated boss, they may lose their way and feel uncomfortable asking questions. Additionally, some directors may only possess a narrow skill set that focuses on one specific area of the business before their promotion. Therefore, it would be extremely difficult for them to lead the entire department as it is completely unfamiliar to them. This unfamiliarity can lead to incorrect strategic decisions and ultimately result in loss of business and even derailment for the director themselves. At an individual level, derailed managers may either resign, underperform, or even worse, get fired by their superiors.Subordinates often bear the brunt of the negative effects caused by derailed directors. These subordinates tend to lose interest in their work, become demotivated, and experience stress due to the actions of their derailed directors. They may also face psychological pressure, resulting in lower productivity, lack of confidence, and high turnover rates [4].

In terms

of organization, the long-term consequences of derailed directors not meeting business goals can lead to significant losses for companies in terms of both financial and human capital investments. The organization's brand may suffer as a result of increased unsuccessful projects. Additionally, when non-value added staff members are retained and talented individuals are moved between positions, the organization loses out on potential talent and incurs additional costs. Research conducted by Devriess and Kaiser in 2003 estimated that the cost of derailment for senior directors can range from $75,000 to $1,500,000 [6].

Data from previous years (shown in Table 1) indicates that organizations consistently face management derailment, resulting in a loss of business opportunities and talents, averaging at 44.5%. This statistic reflects poor top management planning. Moreover, derailed directors tend to mistreat their subordinates and indirectly transfer their negative behaviors to lower levels within the organization. This can cause significant harm to the organization as a whole.According to a survey conducted in 2006, it is possible for inactive and aggressive behaviors to occur. This can lead to interdepartmental competition, which has a negative impact on the business and damages the relationships between departments [7]. In order to address this issue, it is suggested to transform toxicity into a positive solution. One way to do this is through pre-syndromes steps [5.1]. One of these steps is implementing a sequence floor program, where different behaviors, skills, and perspectives are required at different levels of the organization or position. This helps the organization adapt to changing job demands and prevents derailment or loss of focus during promotions. Succession floor programs also allow top management to identify potential individuals who can

effectively manage significant changes in their careers, through frequent observations and feedback from colleagues. Some companies, such as CITIC bank and RBS, conduct stress tests or implement a bonus system that assesses performance and qualities through a quantitative point system. This helps determine an individual's abilities and the appropriate motivational tools to use.Apprenticeships are necessary for individuals who are potential top executives. They must spend a certain amount of time in the position before receiving actual publicity. Once promoted, there is no going back. Apprenticeships provide a trial period for these directors to determine if they can fit into the role. If they show signs of derailment, the company must either train them to adapt or promote them only financially.

5.2 During episodes measures

The RBS has been implementing a mentoring program since 2005. This program has been successful in retaining and improving about 20-30% of potential derail talent. According to Chris Dixon, the current Human Resources in Organizational Effectiveness, the higher the position, the less information is shared with subordinates, as executives do not want their weaknesses easily known. Therefore, by implementing a mentoring program, where mentors are usually top executives, there are more opportunities for them to express their feelings and needs. The reason behind this is simple - top executives hold ultimate power in the organization and you get to express directly. Management training programs are available to address stress levels at work, but rarely do we find workshops that focus on ambition and power control.London Business School conducts a series of leading programmes that focus on teambuilding, balancing aspirations and attitudes, and effective power control. These programmes help executives develop their

own comfort zone when managing relationships without barriers.

5.3 Steps after experiencing derailment

In order to gain insight into the performance of your current succession system, it is important to conduct a derailment feedback session when the employee is willing and ready. Obtaining feedback from these sessions will strengthen the filtering process for promoting the right employees, rather than just those with strong performances. Analyzing this feedback will also help improve the current system. Derailment is not necessarily bad news for the company, as departing employees may provide valuable negative comments on the current system or areas to avoid during talent selection and advancement. This feedback can be used to improve the system. By analyzing the trend of derailment within your organization, you can identify unique factors that contribute to derailment, which cannot be obtained from CCL.

6. Conclusion

Companies should not solely promote employees based on their business performance, but also consider their individual abilities and personality traits.If not, the advertising tools would become a poison to deter investments from your company, which in turn would benefit your closest competitors. The first image below represents the overall image that I presented during my study. As individuals from different departments are attracted to higher management positions, the demand for willing top executives is always greater than the available positions. Therefore, the company implements a series of talent management programs to filter potential candidates and promote them to middle management positions. However, not all potential managers have the ability to reach the highest level due to the aforementioned reasons. Consequently, the company invests in another filter to identify those individuals with true

talent in both people skills and technical abilities. Not all potential derailment managers are filtered out, which may result in derailments in the end. A derailment feedback session at the end will provide information on how to improve the system for more accuracy and strengthen the filter within the talent pool. A series of derailment prevention measures will reduce instances of derailment and improve talent management for the corporation.

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