Situational Approach: Training Package for Talent Entrepreneur Development during Pandemic

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Situational Approach: Training Package for Talent Entrepreneur Development during Pandemic

Ummu Umairah Azahari^1*, Nurnadhirah Mohd Zaki¹, Samsudin Wahab^2*

1 Arshad Ayub Graduate Business School, University Teknologi MARA, Bukit Mertajam, Pulau Pinang

2 Centre for Postgraduate Studies,University Teknologi MARA, Bukit Mertajam, Pulau Pinang

*Corresponding Author: [email protected], [email protected]

Accepted: 15 December 2020 | Published: 31 December 2020

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Abstract: Entrepreneurs are risk-takers, multiverse, multi-talented person, diverse people and prepared to venture into uncertainties. These people function efficiently and effectively in various task of managing, assessing risk, supervising the accounts, doing marketing, selling their own products and other tasks. The global outbreak of Coronavirus (Covid-19) to more than 200 countries, including Malaysia has put mountainous pressures on the business sector especially the small and micro-enterprises. In facing such unexpected crisis, the Situational Approach is one of the measures sought by entrepreneurs in understanding the problems and devising effective solutions amidst the prevailing risks. These entrepreneurs take into consideration all the possibilities and opportunities in making calculated and informed decision for the survival of their business. They are open to changes and ready to adapt in ensuring the success of their business during this tough time which makes them a competent and effective entrepreneur.

Keywords: Entrepreneurs, different roles, situational approach, outcomes, competent, effective, talent, development, Coronavirus, Covid-19

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1. Introduction

The general rule in the Situational Approach focuses on leadership in situations and how it is incorporated in work environment.¹ According to situational approach, the two qualities required for leaders or entrepreneurs are being directive and supportive.in accordance to the situations faced.²

The situational approach model is a training model that is intended to enhance the communication between leaders and their underlings. Trainings are essential for leaders to learn the skills of adapting and thriving through numbers of demanding situations.³

For continuous success and sustainability, the aspect of managing the employees’ talent is indeed vital in order to help them grow progressively throughout the years of working and to retain them in the organization to meet the organization’s aspirations and goals. Among the

1 Hersey, P., & Blanchard, K. H. (2000). Management of organizational behavior: Utilizing human resources (8th ed.). Upper Saddle River, NJ: Prentice Hall.

2 Northouse, P. (2013). Leadership: Theory and practice (6th ed.). Los Angeles: Sage Publications.

3 Vecchin, R. P. (1987). Situational leadership theory: An examination of a perspective theory. Journal of Applied Psychology, 72(3), 444-451.

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tasks involved in talent management are providing description of job, setting goals and visions for the employees, appraising employees’ performance, enhancing skills and knowledge, and conducting competency assessment, and executing succession planning.⁴

The talent management aims to scout, develop, encourage and retain employees who are considered to be advantageous and valuable for the organization. Numerous of researches have been conducted in assisting organizations and employees to complementarily function.⁵

To thrive in today’s ever challenging world, entrepreneurs are deemed to be proficient in communicating and connecting with people, leading the companies and people, working in team, solving problems creatively, planning and managing the organization and people, being adaptive and flexible, and thinking critically and methodologically.⁶ In other words, it can be said that entrepreneurs are exercising and organizing a venture prior the production phase.

These people must consciously and comprehensively consider all aspects in making the correct decisions.⁷

Integrating the various learning and devising solution for real life situation are regarded vital in engineering field. The aspect of intellect should be highlighted greatly in order to provide the world of working with numbers of effective and high quality talents.⁸

Nowadays, Coronavirus impacts massively the entrepreneurs as it affects current and future performance of a business. Statistically, the lack of continuity plan in dealing with cricis especially the unplanned ones has led over 75% of the businesses to fall short in just three years.⁹

Quarantelli, Lagadec and Boin (2007) referred the skill of management as providing contingency plans to deal with the current crisis, and the skills of planning as devising required and vital measures for the upcoming consequences.¹⁰

Trainings organized for entrepreneurs should be able to enhance learning experiences of entrepreneurs. Without rising voice, it can be concluded that a good quality of entrepreneurs can be seen when competency training would be applied to teams rather than a single

4 Ramar Veluchamy, 2016, “Talent Management Pattern for HR Professionals” Journal of Applied Engineering Research, ISSN 0973-4562 Volume II , Member I(2016) PP-564-572.

5 Entrepreneurial talent and venture performance: A meta analytic in vestigation of SMEs Katrin Mayer Hauga,Stuart Readb, 1, Jan Brinckmannc, 2, Nicholas Dewd, 3, Dietmar Grichnike, 4a WHU – Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany.

6 Drucker, Р. F. (2015). Innovation and entreрreneurshiр: Рractice and рrinciрles.

7 Henry, Colette, Frances Hill, and Claire Leitch. 2005. Entrepreneurship education and training: Can entrepreneurship be taught? Part I. Education and Training 47: 98–111.

8 Reshetilova, T. (2017). Research рrocess of consumer characteristics of innovative goods. Marketing in Ukraine, 4, 56-63.

9 Qiu, W., Rutherford, S., Mao, A. & Chu, C. (2017). The pandemic and its impact. Health, Culture and Society, https://doi.org/10.5195/hcs.2017.221

10 Quarantelli, E. L., Lagadec, P., & Boin, A. (2007) A Heuristic approach to future disasters and crises: New, old, and in- between types, Handbook of Disaster Research, 16-41.

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entrepreneur. To become a successful entrepreneur, it is important to grasp the core competencies of planning and managing a business.¹¹

2. Literature Review

This academic project is conducted in the way of research. There are many literatures available mainly in the forms of articles, journals and books discussing on the concept of situational approach for entrepreneurs. This chapter encompasses of the general information on leadership, views on the situational approach to leadership and the ways of applying such approach in dealing with the crisis and pandemic.

In understanding leadership, there are many definitions that can be looked at. Basically, it is an activity, function or skill that can be possessed by someone.¹² The skill of leadership ranges from the aspects of organization, social and personal.¹³ As the effect, the quality of leadership will influence and inspire people around to perform task passionately and effectively.¹⁴

People inspired by leadership are purposive, directed and passionate in realizing the goals of the company.¹⁵ Situational approach stresses that leaders or entrepreneurs are ought to be directive as well as supportive in many of the challenging circumstances.¹⁶

It can be generally said that the definitions mentioned above highlight the leadership as the medium of influencing people to work collective and effectively to realize the organization’s objectives. In reality, it can be seen in many of the organizations whereby leaders take charge at inspiring and motivating the subordinates to put their best in accomplishing the missions and visions of the organization.

Herseyand Blanchard¹⁷ were quoted to introduce the idea of SituationalApproach to leadership in the year of1969. The theory suggest that types of leadership should be adapted to the types of events happening as to produce the most significant impact^{. 18}

11 Sethi, R., Smith, D. C., & Рark, C. W. (2001). Cross-functional рroduct develoрment teams and the innovativeness of new consumer рroducts. Cambridge, MA: Marketing Science Institute.

12 Northouse, D. (2011). Introduction to Leadership: Concepts and Practice. 1st ed. Thousand Oaks, USA: Sage Publications.

13 Bolden, R. (2004). What is leadership?. [online] Available at: http://businessschool. exeter.ac.uk/documents/discussion_

papers/cls/what_is_leadership.pdf [Accessed 20 Nov. 2014].

14 Lawson, K. (2009). Successful coaching & mentoring. 1st ed. London: New Holland.

15 Yukl, G. & Van Fleet, D.D. (1990). Theory and research on leadership in organizations. In M.D. Dunnette & L.M. Hough (Eds.), Handbook of industrial & organizational psychology, Second Edition, Volume 3, Palo Alto, CA: Consulting Psychologists Press.

17 Hersey, P., & Blanchard, K. H. (2000). Management of organizational behavior: Utilizing human resources (8th ed.). Upper Saddle River, NJ: Prentice Hall.

18 Rickover, S. Behind the Corporate Veil, (2014). Situational Leadership Theory: It’s Just Common Sense. [online] Available at:

http://sararickover.wordpress.com/2014/08/25/situational-leadership-theory-itsjust-common-sense/ [Accessed 11 Sep. 2014].

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To be an entrepreneur requires a complex set of knowledge, skills,¹⁹ and abilities of making decision, appearing confidence, thinking creatively, pursuing knowledge, fostering relationship, and managing risk.²⁰ Clear communication, potential measurement, and link between current and potential performances are other complimentary steps in managing the talents which is vital in the journey to become entrepreneurs.

Applying the situational leadership theory successfully is a good way of becoming a good entrepreneur. According to the theory, there are various steps of leadership, and these steps of becoming a great leader are learnable. Knowing the steps and ways can also enhance one’s leadership competency and quality.

Entrepreneurship is not a born trait whereby people who are lack of such skill can acquire it through continuous learning. Having great sense of leadership is indeed crucial in becoming entrepreneur as leadership quality can boost an entrepreneur’s confidence and function in the organization.²¹ The seasoned entrepreneurs also continuously learn the leadership theories and strategies in order to enhance their charisma and their function as to further develop their organization and people.²²

In sense of entrepreneurship, having people with good quality of leadership is advantageous as these people spreads the excitement and positive vibes with the company through their acts, words and works which will subsequently influence others around them and promote good image of the organization.²³ Their presence also can attract new talents and new business partners which will be beneficial for the success of the business.

Everybody has dreams and ambitions to achieve in life. Everyone is special in their own way.

Each one has different talents; they can choose their career based on interest or capabilities.

This research aims at highlighting the industrial expectations namely the competencies, talents, behavioral skills among the entrepreneurs.

The core competencies includes accountability, adaptability, ambition, decisiveness, commercial power, assertiveness, conduct, conflict management, controlling progress, cooperation, courage, customer orientation, delegating, discipline,²⁴ energy, flexible behavior, eye on quality, attention to detail, forming judgment, identification of problems issues with management, business orientation, developing employees, independence, insight, integrity, leadership,²⁵ learning ability, listening, managing, negotiation, networking, sensitivity,

19 Creative management techniques and methods as a part of the management education: analytical study on students’

perceptions. Viktoria Ali Tahaa, Juraj Teja, Michaela Sirkovaaa Faculty of Management, University of Presov in Presov, Slovakia

21 Jones, P., Maas, G., Dobson, S., Newbery, R., Agyapong, D., & Matlay, H. (2018). Entrepreneurship in Africa, part 1:

entrepreneurial dynamics in Africa. Journal of Small Business and Enterprise Development, 25(3), 346-348.

22 Bhattacharya M & Bloch H. (2004). Determinants of innovation. Small Business Economics,22(2), 155–162.

23 Richardson, J. (2004). Entrepreneurship and Development in Asia. International Journal of Entrepreneurship and Innovation Management, 4(5), 469 - 484.

24 Ramar Veluchamy, 2016, “Talent Management Pattern for HR Professionals” Journal of Applied Engineering Research, ISSN 0973-4562 Volume II , Member I(2016) PP-564-572.

25 Schumpeter, J. (1961). Theory of Economic Development. New York: Oxford University Press.

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persuasiveness, planning, organizing, presenting, problem analysis, sociability, social awareness, stress management, verbal expression, vision, workmanship, written expression and the most important creativity, initiative and innovative power.²⁶

The art of developing entrepreneurial leaders is one in dynamic synergy with the developing pulse of personal and collective achievement. The growing need and application of social entrepreneurs has arisen both from the needs and opportunities of globalization.²⁷

As individuals who react and seize on the opportunities surrounding them, entrepreneurs surely conquer the fear of risk and failure.²⁸ Ideas are created and learned therefore entrepreneurs should adopt such characteristic and not limit the possibilities and opportunities in creating, exploring and executing new ideas and ventures in order to progressively enhance their business.²⁹ Such knowledge and mindset should be equipped by the educational institutions which shoulder a vital responsibility³⁰ to nurture future entrepreneurs at the university through formal courses and extra-curricular programmes.³¹

It obvious that Coronavirus pandemic has impacted adversely socio-economy of the people around the world which requires strategic recovery plans.³² The most impacted ones are surely the small enterprises which struggle to respond and survive, and are given not much attention regarding their problems. Shops and markets are required to be closed and people’s movements are restricted which force these small business owners to allow their staffs working from home.

3. Objectives

This article is written with the aim:

i) To discuss the idea and the philosophy of Situational Approach for talent development among entrepreneurs.

ii) To identify the nature and the extent of Situational Approach to solve problems.

iii) To examine the strength of Situational Approach and the reasons why Situational Approach is considered necessary for entrepreneurs in leading their teams.

26 Entrepreneurial talent and venture performance: A meta analytic in vestigation of SMEs. Katrin Mayer Hauga,Stuart Readb, 1, Jan Brinckmannc, 2, Nicholas Dewd, 3, Dietmar Grichnike, 4a WHU – Otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany.

27 Harvard Business School (HBS) Working Knowledge. (2016). Skills and Behaviors that Make Entrepreneurs Successful.

hbswk.hbs.edu. Retrieved from:

https://hbswk.hbs.edu/item/skills-and-behaviors-that-make-entrepreneurs-successful

28 McMullen, Jeffery S., and Dean A. Shepherd. 2006. Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. Academy of Management Review 31: 132–52.

29 Zeng, Zhaocheng, and Benson Honig. 2016. How should entrepreneurship be taught to students with diverse experience?

Volume 18: Advances in Entrepreneurship, Firm Emergence and Growth. Edited by Jerome A. Katz and Andrew C. Corbett.

Bingley: Emerald Group Publishing Limited, pp. 237–82.

30Henry, Colette, Frances Hill, and Claire Leitch. 2005. Entrepreneurship education and training: Can entrepreneurship be taught? Part I. Education and Training 47: 98–111.

31 Maritz, P. Alex. 2017. Illuminating the black box of entrepreneurship education programs: Part 2. Education and Training 59: 471–82.

32 Flynn, D. T. (2007). The impact of disasters on small business disaster planning: a case study, Disasters, 31(4), 508-515.

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iv) To highlight the measures under the Situational Approach that can be applied in solving problems among entrepreneurs during pandemic.

4. Research Methodology

This article is the qualitative in nature, whereby the researchers consulted numbers of relevant books, journals, handouts, paper presentations and articles to further explore and explain the Situational Approach as regards to the matter of talent development among entrepreneurs during pandemic. Besides that, the researchers also conducted Internet research by reading many websites about the current pandemic, the Situational Approach and the concept of entrepreneurs. This article briefly discussed the gathered information in qualitative manner.

5. Data Collection, Finding and Analysis

As for this study, the data were collected from the researches and articles by relevant authors.

This article aims at explaining the relationship between training and talent development and the competencies of entrepreneur. Below are the summaries of comparison for the Situational Approach as regard to talent management.

Table 1: Finding and Analysis on Situational Approach: Training Package for Talent Entrepreneur Development during Pandemic

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6. Solutions and Recommendations

This article summarizes the solutions and recommendations for entrepreneurs in delivering better outcomes during the difficult times of Covid-19 crisis. It was found that there is absence of standard system and measures adopted by entrepreneurs in facing such crisis. These entrepreneurs resorted to numbers of continuity and recover strategies especially in the aspects of deliver and marketing in order to maintain the survival and progress of the companies.

The Situational Approach theory is useful for entrepreneurs as it explains the concept of entrepreneurship step by step and which surely helps the entrepreneurs to further understand and master the required knowledge of entrepreneurship and leadership thus improving the personal and company’s performance.

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Some studies suggested that successful organizations and entrepreneurs really understand the need of encouragement and motivation for their employees in driving them to perform their best and remain spirited.

To thrive through this pandemic, entrepreneurs can opt for several effective measures. Here some recommendations on how Situational Approach can help entrepreneurs during the pandemic: -

i) Entrepreneurs manage their business in a crisis situation through two-ways communications.

ii) Provide relevant assistance and supports.

iii) Provide proactive updates for the employees on the crisis management knowledge and strategies.

iv) Enrich the business-related knowledge, skills and strategies in the aspects of online marketing, product development, pricing, and management of customer databases.

v) Entrepreneurs exercise and organize a venture before deciding on the kinds and value of the products to be produced.

vi) Entrepreneurs analyze all aspects of the good and bad prior to making decision.

vii) Entrepreneurs examine the various possibilities and considerations in making calculated and informed choice.

viii) Entrepreneurs communicate wisely with their employees and customers.

7. Conclusion

As a conclusion, there are many advantages and strategies in accordance to the Situational Approach to be employed by entrepreneurs in dealing with the crisis. Amidst the pandemic, many SME companies in Malaysia need to be closed down. This devastating situation can be possibly attributed to the lacks of leadership talent and inability to adapt to sudden change especially in the ways of conducting their business. On the other hand, successful entrepreneurs who innovate and adapt promptly can excel and gain millions during the pandemic.

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Leaders in organization need to always inspire and motivate their subordinates to perform excellently as these people are the essential assets of the organization in realizing its mission and vision. In doing that, the leaders firstly need to get to know their subordinates in terms of their personalities, cultural backgrounds and performance level as these information can help them to understand the different characters and push factors of their people. Leaders must always be in contact with their people and make themselves seen as part of the team. This is what successful leaders and entrepreneurs have been adopting.

References

Bhattacharya M & Bloch H. (2004). Determinants of innovation. Small Business Economics, 22(2), 155–162.

Drucker, Р. F. (2015). Innovation and entreрreneurshiр: Рractice and рrinciрles.

Harvard Business School (HBS) Working Knowledge. (2016). Skills and behaviors that make entrepreneurs successful. hbswk.hbs.edu.

Henry, Colette, Frances Hill, and Claire Leitch. 2005. Entrepreneurship education and training: Can entrepreneurship be taught? Part I. Education and Training 47: 98–111.

Hersey, P., & Blanchard, K. H. (2000). Management of organizational behavior: Utilizing human resources (8th ed.). Upper Saddle River, NJ: Prentice Hall.

Jones, P., Maas, G., Dobson, S., Newbery, R., Agyapong, D., & Matlay, H. (2018).

Entrepreneurship in Africa, part 1: Entrepreneurial dynamics in Africa. Journal of Small Business and Enterprise Development, 25(3), 346-348.

Lawson, K. (2009). Successful coaching & mentoring. 1st ed. London: New Holland.

McMullen, Jeffery S., and Dean A. Shepherd. 2006. Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. Academy of Management Review 31:

132–52.

Northouse, D. (2011). Introduction to leadership: Concepts and practice. 1st ed. Thousand Oaks, USA: Sage Publications.

Northouse, P. (2013). Leadership: Theory and practice (6^th ed.). Los Angeles: Sage Publications.

Ramar Veluchamy. (2016). Talent management pattern for HR professionals. Journal of Applied Engineering Research, ISSN 0973-4562 Volume II , Member I(2016) PP- 564-572.

Reshetilova, T. (2017). Research process of consumer characteristics of innovative goods.

Marketing in Ukraine, 4, 56-63.

Richardson, J. (2004). Entrepreneurship and development in Asia. International Journal of Entrepreneurship and Innovation Management, 4(5), 469 - 484.

Rickover, S. Behind the Corporate Veil, (2014). Situational leadership theory: It’s just common sense. [online] Available at:

Schumpeter, J. (1961). Theory of economic development. New York: Oxford University Press.

Sethi, R., Smith, D. C., & Рark, C. W. (2001). Cross-functional рroduct develoрment teams and the innovativeness of new consumer рroducts. Cambridge, MA: Marketing Science Institute.

Vecchin, R. P. (1987). Situational leadership theory: An examination of a perspective theory.

Journal of Applied Psychology, 72(3), 444-451.

Yukl, G. & Van Fleet, D.D. (1990). Theory and research on leadership in organizations. In M.D. Dunnette & L.M. Hough (Eds.), Handbook of industrial & organizational psychology, Second Edition, Volume 3, Palo Alto, CA: Consulting Psychologists Press.

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Zeng, Zhaocheng, and Benson Honig. (2016). How should entrepreneurship be taught to students with diverse experience? Volume 18: Advances in Entrepreneurship, Firm Emergence and Growth. Edited by Jerome A. Katz and Andrew C. Corbett. Bingley:

Emerald Group Publishing Limited, pp. 237–82.