Professionalization of Management

Much has been said in the international press of the role that the Ivy Leaguers played as the architects of the recent worldwide financial meltdown. It seems that in light of these developments, the call to professionalize the occupation of management is gaining momentum.

If one were to take stock of the state of modern society from the headlines in most newspapers and television talk shows, one would be remiss not to conclude that we are in an era that could be referred to as the "Democracies of the Corrupt" wherein bribery, coercion, theft and discrimination are the order of the day!

Headlines, feature stories and editorial content of many of our local newspapers are about political corruption, mismanagement at local government levels, bribery in the public and private sector and the lack of accountability by managers and leaders for their own actions.

The release of information by international news agencies is also dominated by stories of corrupt politicians attempting to, or having been caught stealing from their taxpayers funds with an attitude of entitlement. Notice can also be taken of a general culture of greed, dishonesty and avoidance that reigns in the formal sector of the economy.

With the commencement of the industrial revolution came the new phenomenon of “hired” management. This was a strategic decision by stockholders whereby they made appointments in their stead, to direct, control and report on the daily activities of the business. As hinted here, in its original form, management was responsible for the functions of planning, organizing, controlling and reporting, and over the decades as society transformed, the notion of management did so incongruously. Management is now commonly understood to incorporate the challenges of organizational and product or service leadership, sustainability, and having a more balanced approach wherein staff is valued, not as merely an input factor, but as a treasured commodity also known as “human capital”.

Modern theory supported by empirical research confirms the importance of human capital to realize a competitive advantage. Therefore, as the demands on the profession of management grow, so does the ever-increasing level of sophistication and professionalism that is required of a manager in order to be effective, efficient and whose capabilities are sough after in the business world. Why? Because such a manager gives confidence to investors, the markets, policy makers and the public that the results produced under her/his watch, or from the fruit if her/his labor so to speak, is honest, truthful, fair, sustainable, and is considered a valued contribution to the public good, which use of, or consumption, is not harmful.

From the onset, the professions of medicine and the law realized the importance and value of having strict codes of ethics for their members to inculcate themselves with, and to behave accordingly. The severest consequences of failure to adhere hereto could lead to a member “being struck from the roll” so to speak, or in other words, being disbarred. Therefore, having a license to practice revoked, affects a member’s status and earnings.

Within these professional bodies it is the responsibility of boards and committees, consisting of peers, to perform oversight, consider and rule upon disciplinary matters and to undertake review. The larger aim with disciplinary action is to restore, and in many cases increase, the confidence and trust that policy makers and the public have in a profession.

In addition to the requirement of adhering to a code of ethics underpinning conduct, professions are adding annual requirements of continuous professional development (CPD) to be undertaken by members. CPD is to ensure members remain at the cutting edge of their disciplines, are aware of the importance of lifelong learning and constantly update their knowledge and / or acquire new know how in tandem with the advancement in technologies, altering regulations and changes in society.

Considering the “original professions” of medicine and law, accounting and auditing has been a relative newcomer to the scene, and with the spate of corporate financial scandals in the first decade of the 21st century, it is quite understandable that there are many overt attempts to shore up the confidence in this profession and to find improved ways and means of reliably giving assurance of a company’s financial practices and results.

Along a similar vein, but which is a much more meaningful statement than any form of imposed regulation, is voluntary action. In the case of management, what has taken center stage, is the cadres of MBA students and graduates that are signing up to what is called “the MBA Oath”. The MBA Oath, which has been developed by students and alumni of Harvard Business School, is a code of ethics and conduct, and are meant for aspiring or practicing managers that see themselves as “true professionals”. True professionals do not seek ways around or arguments to obfuscate codes of ethics or conduct, as their behavior and adherence thereto, is in the first instance, instinctive shared values!

Therefore, signatories to the MBA Oath are “Professional Managers”, which are set apart from mere managers. In spite of all the negative rhetoric of academics, consultants and anybody who is somebody arguing against the MBA Oath, there is still value to be found. These arguments all seem to focus on management being an open domain and that it should remain so, and that professionalization is impractical because it is practiced by hundreds of millions of employees all over the world. The arguments against the professionalization of management also prove the point of just how difficult it is to be an innovator or “being a step ahead of the class”, how difficult it is to move against vested interest, and how limited their imaginations really are.

I am of the opinion that professionalization of management should start in, and could even be limited to the domain of the formal economy with its large corporations. After all, it is not the small or owner-managed businesses, or in the true sense of the word entrepreneurs, who are the cause of recessions, depressions, credit crunches or call it what you may. The collapse of global markets are precipitated by the individual actions of managers employed in large corporations, and these individuals make their personal business or careers of being employed and managing within big corporations.

As is the case when large corporations wants to hire full-time in-house councils, technicians and advisors in the forms of medics, accountants or legal advisors, whose appointments are almost always subject to proving certification from within their respective professions, so should it be for management. Why Certification? Certification is verification of a person’s proven abilities within a specific discipline or field. It also serves as testimony to the self-discipline expected of a professional to apply a broad foundation of competence in theory, practice and values. Management certification is the sign or mark of a complete and professional manager. It also requires an individual to be skilled in the practical aspects of managing sustainably. This requires greater knowledge of managerial behaviors and skills to accurately diagnose events and effectively implement solutions, and is underpinned by a dedication to lifelong learning.

Professionalism, learning, education, culture, values, ethics and a worldview are all connected. In South Africa the government has called for the formulation of values and standards. After the recent elections in Britain, the newly elected Prime Minister David Cameron stated publicly that his government would strive for the values of fairness, freedom and responsibility. These values were repeated in the Queen’s speech at the opening of parliament. Only sustained dedication to ethical values by management and leaders can correct the current abnormally high occurrence of corruption.