ISSN 1822-6760.

Management theory and studies for rural business and infrastructure

development. 2012. Nr. 2 (31). Research papers.

A COMBINED APPROACH FOR DETERMINING MANAGERIAL

ACTIVITIES
Guna Civcisa

Riga Technical University

Success and sustainability of organization is closely related to the professional skills of person at the highest level. Entrepreneurs have to develop various professional skills by him/her-self.
The aim of this research is to develop approach to determine the most important activities to be implemented by a person at the highest level of an organization. Analysis is conducted by comparing
three systems and models in field of quality management: ISO 9001 Quality management system
standard, the EFQM Excellence Model and Malcolm Baldrige National Quality Award. Literature
review, document analysis and qualitative research methods, such as comparative analysis and interpretation, have been applied to identify three types of managerial activities. This article distinguishes management, leadership and governance activities through the combined approach presented here. In the result, nineteen key activities have been identified and developed based on steps
of created approach. The set of key activities can be used for self-assessment, as well as for extended capabilities for professional growth of person at the highest level. The article also covers design of approach which consists of several steps and tasks.
Key words: approach, governance, leadership, management, person at the highest level,
quality management systems/models.
JEL codes: M100, M120, M190.

Introduction
People in charge of enterprises are interested in being successful and effective.
One of the most important success factors are good professional skills. It is more likely
that business is going well if an organization is led by skilful and energetic person.
How to find out the most valuable skills that could ensure more success for entrepreneurs? If there would be only one ideal success story or plan for possible course of actions in the world, everyone could apply it. Unique ideal formula does not exist. It is a
reason why entrepreneurs have to develop various professional skills by him/her-self.
In practice, there are different management systems and organizations are
using them for various purposes and motives. Each entrepreneur has an individual
style for managing enterprise. Success and sustainability of enterprise is closely related to the professional skills of the person at the highest level. It is possible to continually improve any knowledge and skills, and managerial abilities are not exception,
therefore, the combined approach presented in this article would be useful for entrepreneurs.
The aim of this research is to develop an approach to determine the most important managerial activities to be implemented by a person at the highest level of an
organization. Such approach can be helpful to master and to expand top-level managers professional abilities for managing an organization. The objectives of this research are: 1) to select acknowledged management systems according to research crite36

ria, 2) to identify and to analyze the most important managerial activities within selected management systems and 3) to develop descriptions of identified managerial
activities.
Literature review, document analysis and qualitative research methods, such
as comparative analysis and interpretation, have been applied to identify managerial
activities appropriate for a person at the highest level. Research limitations this paper does not include evaluation measures of managerial activities performance, collection and analysis of empirical data. Literature review and theoretical views related
to different management styles is not discussed in this article. The expected results
are descriptions of activities reflecting a variety of abilities needed for a person at the
highest level of an organization.
Systems and Models in field of quality management
Various systems and models are widely used and recognized tool for continuous improvement of organizations performance. For this research, six specific criteria
for the appropriteness of systems and models have been defined by the author and are
listed in the next chaper In of this article. Discusion of all the worldwide known systems and models are not in accordance with objectives of this article. In the result,
three different globally recognized systems and models (hereafter management systems) in field of quality management are discussed and analyzed.
The ISO 9001 Quality management systems Requirements standard (ISO
9001) is one of the ISO 9000 family standards developed by technical committee
ISO/TC 176 of the International Organization for Standardization (ISO, 2008). The
ISO 9001 standard is being used for implementation and certification of quality management system in organizations. The European Foundation for Quality Management has created Excellence Model and organizations in Europe are using it to compete for the European Quality Award. The EFQM Excellence Model (EFQM) is based on nine criteria and also could be used as a practical tool for self-assessment and
as a structure to develop the management system in an organization (EFQM, 2003a).
The Malcolm Baldrige National Quality Award (MBNQA) is the Quality Award in
the United States of America managed by the National Institute of Standards and
Technology (NIST). The MBNQA consists of the seven Criteria for Performance Excellence Categories. In addition, the MBNQA could be used as tool for understanding, managing and improving performance of an organization (NIST, 2008). Selected systems and models have common feature, they could be used in any
organization, regardless of its size, sector and scope.
Methodology of the research
The first step in development of the approach requires identification of appropriate sources for information on activities carried out by a person at the highest level
of organization. The worldwide known and acknowledged management systems were
selected for such purpose. These management systems were chosen based on listed
criteria:
1) appropriate for small enterprises;
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2) without restrictions regarding on sector;

3) importance and activities of leadership is explained;
4) internationally recognized;
5) periodically reviewed;
6) used and/or known in organizations in Latvia.
Following management systems met criteria mentioned above: ISO 9001 standard, the EFQM and the MBNQA. According to chosen criteria the approach is developed mainly for small enetrprises, but it is appropriate for enterprises, regardless of
sector and size.
In order to develop the second step of approach, it is necessary to conduct analysis of terms used for persons at the highest level, as well as to identify managerial
activities being implemented by these persons within selected management systems.
Such analysis provides to highlight the similarities and/or differences among these
systems. The ISO 9001 focus on typical management activities and the term top management is used, but in EFQM cannot be found the term top management in contrast of the term leader (Civcisa, 2007a). In the MBNQA, leadership and governance activities can be found and person who leads an organization at the highest level is
called a senior leader. Before inter-comparison of management systems, it is useful to
understand how they are built. The fundament of all three selected management systems is principles. Titles and quantity of the principles differ among these systems
(Table 1).
Table 1. The principles and concepts of management systems

ISO 9000
Customer focus
Leadership
Involvement of people
Process approach
System approach to management
Continual improvement
Factual approach to decision making
Mutually beneficial supplier relationships

EFQM
Results orientation
Customer focus
Leadership and Constancy of Purpose
Management by processes
and facts
People development and
involvement
Continuous learning, innovation and improvement
Partnership development
Corporate social responsibility

MBNQA
Visionary leadership
Customer-driven excellence
Organizational and personal learning
Valuing employees and
partners
Agility
Focus on the future
Managing for innovation
Management by fact
Social responsibility
Focus on results and creating value
Systems perspective

The ISO 9000 quality management systems family standards are based on
eight quality management principles (ISO, 2005). The underlying principles of
EFQM Excellence Model are eight as well, but they are called the Fundamental concepts of Excellence. The MBNQA Criteria for Performance are designed in accordance with the eleven Core values and Concepts.
Many similarities can be found in principles and concepts of the Quality
Awards models and the quality management system. Differences between manage38

ment systems can be small or large depending on comparison approach; however there is more synergy than conflict between these principles (Hoyle, 2006). The eight
concepts of EFQM as well as ISO 9000 principles are correlating and the form of expression is very similar (Wade, 2000&2003). Very close linkages within principles
are found, but the most significant difference is that, contrary to the ISO standard, the
criterions in the EFQM cover all principles (Mnsted, 2002). When EFQM and
MBNQA are compared, similarities in the criteria and differences in the approaches
and definitions can be found (Vokurka, 2000). The ISO 9001 and MBNQA are useful
for understanding organizational management and these systems share the same conceptual basis (Doezema, 2000). Researcher (Anttila, 2007) suggests applying those
management principles and concepts (ISO 9000, EFQM and MBNQA) that better fit
to business needs because their contents are very similar to each other, just titles and
phraseology is different. In all three management systems, the individual principle
(concept) is being established relating to activities of the person of highest level in an
organization. The principles of management systems recognize the key role of leadership (Russell, 2000).
The next task is to compare activities related to the person of highest level in
more detailed manner. This is done by inter-comparing corresponding chapters and
criteria of the management systems. Such approach is used, for example, to characterize the relationship by comparing sections of the ISO standard against to the items of
the MBNQA criteria (Richards, 2004). The comparative analysis of the Quality
Awards is used to find similarities in the criteria (Vokurka, 2000), as well as to find
the linkages between analyzed systems and contribution of the ISO 9001 to EFQM
(Russell, 2000). The comparative analysis can be found not only in scientific articles,
but also in descriptions of practical experience, for example, the relationship between
the EFQM nine criteria and the ISO 9001(2000) clauses has been identified by the
Siemens ICN (EFQM, 2003b).
According to previous research experience, in the third step of the approach,
the relationship analysis between the criterion parts 1a. - 1.e. of the first criterion of
EFQM and the sub-sections 5.1.5.6. of the fifth section of ISO 9001 is carried out.
In the same way the analysis is conducted for the items 1.1.1.2. of the leadership category of MBNQA and 5.1.5.6., and the criterion parts 1a.1.e. of the first criterion
of EFQM and the items 1.1.1.2. of the leadership category of MBNQA.
The final step of developed approach includes identification of key activities
for the person at the highest level. A content of the corresponding criterions and sections of ISO 9001, EFQM and MBNQA was investigated. The three types of activities have been identified management, leadership and governance. Briefly they are
presented below. Management includes the usage of appropriate tools to ensure that
the organization is able completely to achieve its objectives. Main activities of management are determination of aims and responsibilities (Civcisa, 2007b). Leadership
includes structures and mechanisms for effective communication, as well as for development of organizations vision, values and ethics (EFQM, 2003b). Governance includes the approval of strategic direction; the evaluation of the chief executives performance and also accountability for managerial and control actions within an organization (Civcisa, 2007b), (NIST, 2008).
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There is a need to evaluate importance of identified managerial activities by

measuring level of their performance in practice. Developed approach will be tested
in several small and medium sized manufacturing enterprises in Latvia. For the detailed analysis and evaluation of managerial activities by using survey based on selfassessment methodology is recommended.
Results
Nineteen key activities have been identified and developed based on steps of
created approach (see Figure 1). All the key activities are divided in three groups depending on type of activity. The types of activities are defined: management, leadership and governance. Each activity is indicated by the symbol (according to type of activity and by number of activities of each type) and brief description of activities is
given in Table 2.

M2
M3
M4

M5

M6

M7

Creation of the quality

policy
Selection of methods
for customer satisfaction measurements
Definition of responsibilities for people

Leadership activities

Symbol

M1

Management activities

Symbol

Symbol

Table 2. Key activities for the person at the highest level

L1

Involvement and encouragement of people

G1

Responsibilities to the
society

L2

Provision of sustainabiliG2
ty to an organization

Attraction of independent advisory body

Communication on development directions of

an organization
Capability for rapidly
changes, analysis of internal and external environment

G3

Performance evaluation
of the chief executive
and member board

G4

Establishment of system
for strategy implementation

Promotion of people potential and growth

G5

Anticipation and dealing

with concerns of society

Establishment of organizational structure and related mechanisms

G6

Development of ethic
and behaviors model

L3

Review of objectives
and assessment of perL4
formance
Balance of resources
to ensure the effectiL5
veness of an organization
Appointment of management representative to establish the
L6
quality management
system
Observation of the statutory and regulatory
requirements

Governance activities

The proposed approach enables to combine solutions from various

management systems in order to collect the widest possible range of managerial
activities for the people at the highest level that can be used for extended capabilities
for professional growth. The step by step development process of combined approach
is shown in Figure 1.
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Figure 1. The combined approach for determining managerial activities

When people at the highest level of an organization should or need to improve
his/her abilities, the new initiatives could be taken from the management systems.
The selection of the most appropriate management systems is carried out in the first
step of combined approach (step 1 in Figure 1). In the second stage, the analysis is
made through the used terms and principles (step 2 in Figure 1). Integration of findings that have been obtained during comparison of managerial activities implemented by person at the highest level is done at third stage (step 3 in Figure 1). In the
fourth (the last) stage of approach, descriptions of management, leadership and governance key activities have been developed (step 4 in Figure 1). Each stage of
combined approach consists of several (three or four) tasks. The tasks of combined
approach are explained in Table 3.

Analysis
Synthesis

Selection of systems

Step 2
Step 3

Step 1

Table 3. Tasks for implementation of the created approach

To develop criteria for evaluating the appropriateness of management systems
within the identified needs/scope
To identify the existing management systems in accordance with the required
needs/scope
To assess the selected management systems according to criteria
To select the most appropriate management systems
To determine used terms and their interpretations in management systems to
designate person at the highest level
To evaluate the guidance in the management systems for activities taken by
the person at the highest level
To compare the principles of management systems and to identify their interrelationships and similarities
To identify links between the principles and the sections and the criterion of
management systems
To determine the corresponding sections and criterion in the management systems to compare activities for person at the highest level
To carry out a comparison between activities implemented by person at the
highest level
To define the types of activities for person at the highest level (M-L-G)

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Interpretation

Step 4

To develop key activities for person at the highest level and to classify them
by types of activities
To review and to adjust key activities of person at the highest level by considering specific needs/scope
To develop detailed descriptions of activities (criteria) for assessment by
measuring importance and performance

One can find the illustration of implementation of combined approach step by

step and task by task.
Conclusions
1. The article is aimed to theoretical development and detailed structure of
combined approach for determining managerial activities, which consists of several
steps and tasks. Proposed approach is appropriate for enterprises, regardless of sector
and size.
2. The analysis does not lead to the development of new types of activities, but
activities described in management systems are analyzed in a synergistic way.
3. The term management is mostly used both in literature and in practice to
describe activities to be implemented by the person at the highest level. The comparison analysis of the management systems (ISO 9001, EFQM and MBNQA) concludes
with definition of three types of activities. These activities are leadership, governance and management.
4. The approach of a set-apart analysis of activities gives a possibility to define and to outline the key differences between leadership, governance and management activities. Nineteen the most important key activities of the person at the highest
level of an organization are determined according to steps and tasks of the created
approach.
5. The set of key activities can be used for self-assessment, as well as for extended capabilities for professional growth of person at the highest level.
6. The linkages between principles of management systems have been studied
in general and similarities are found.
7. It is found that three types of managerial activities differ each of other, the
research results show that some of activities have close, some low, but other do not
have linkages.
References

1. Anttila, J. (2007). New principles, tools, and infrastructures for quality management in
modern changed business environments // 10th QMOD Conference Proceedings. Quality Management and Organizational Development. Our Dreams of Excellence.
2. Civcisa, G. (2007a). A comparison of terms leadership and management within quality
systems // Economics and Management-2007. International Scientific Conference Proceedings.
Riga.
3. Civcisa, G. Janauska, J. Mazais, J. (2007b) Harmonized Leadership, Governance and
Management Methodologies // Presentation at International Conference International partnership
for innovation: challenges and opportunities. Baltic Dynamics 2007, September 915. Riga.
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4. Doezema, D. (2000). Enriching ISO 9001 with the Baldrige Criteria // ASQs 54th
Annual Quality Congress Proceedings.
5. EFQM (2003a). EFQM Assessing for Excellence. A practical guide for successfully
developing, executing and reviewing a Self-Assessment strategy for your organization. Brussels:
European Foundation for Quality Management.
6. EFQM (2003b). EFQM Excellence Model. Small and Medium Enterprise Version.
Brussels: European Foundation for Quality Management.
7. Hoyle, D. (2006). ISO 9000 quality systems handbook. 5th Edition. Oxford: Butterworth-Heinemann.
8. ISO (2005). Quality management systems Terminology and vocabulary (ISO
9000:2005). Geneva: International Organization for Standardization.
9. ISO (2008). Quality Management Systems Requirements (ISO 9001:2008). Geneva:
International Organization for Standardization.
10. Mnsted, M., Fns, T. (2002). A comparative assessment of the EFQM Excellence
model and the ISO 9001:2000. Aarhus: Aarhus School of Business.
11. NIST (2008). Baldrige National Quality Program. Criteria for performance Excellence.
Gaithersburg: National Institute of Standards and Technology.
12. Richards, R. P., Willette, G. L. (2004). ISO 9001:2000 and the Baldrige Criteria for Performance Excellence. A Comparison. Albuquerque: Sandia National Laboratories.
13. Russell, S. (2000). ISO 9000:2000 and the EFQM Excellence Model: competition or cooperation? // Total Quality Management. Vol. 11. 4/5&6.
14. Vokurka, R., Stading, G., Brazeal, J. (2000). A comparative Analysis of National and
Regional Quality Awards // Quality Progress, August.
15. Wade, J. (2000). Excellence! The journey starts here // Quality World. Vol. 26. No. 5.
16. Wade, J. (2003). ISO 9001 and beyond // Quality World. Vol. 29. No. 11.
KOMPLEKSINIS (INTEGRUOTAS ) VADOVO VEIKL APIBRIMO BDAS
Guna Civcisa
Rigos Technikos Universitetas
Santrauka

Organizacijos skm ir tvarumas yra glaudiai susij su aukiausio lygio vadovo

profesiniais gdiais. Verslininkai turi pltoti vairius savo profesinius gdius. io tyrimo tikslas
yra sukurti metod nustatyti aukiausio organizacijos valdymo lygmens vadovo svarbiausias
veiklos kryptis. Analiz yra atliekama lyginant tris sistemas (modelius) kokybs vadybos srityje:
ISO 9001 Kokybs vadybos sistemos standart, EFQM verslo tobulumo model ir Malcolm
Baldrige Nacionalin kokybs apdovanojim.
Literatros apvalga, dokument analiz ir kokybiniai tyrimo metodai: palyginimo analiz ir
interpretacija buvo taikomi pagrindinms valdymo veikloms nustatyti. Straipsnyje taikant
kompleksin metod skiriamos vadybos, vadovavimo ir valdymo veiklos. Galiausiai remiantis iuo
metodu identifikuota devyniolika pagrindini priemoni (veikl) ir nustatyti j realizavimo
ingsniai. ios pagrindins priemons (veiklos) gali bti naudojamos savs vertinimui, taip pat
iplsti galimybes pakelti aukiausio lygio vadovo profesionalumo lyg. Straipsnyje taip pat
pateiktas sprendim projektas, susidedantis i keli sprendimo etap ir udavini.
Raktiniai odiai: bdas (poiris), vadyba, vadovavimas, valdymas, aukiausio lygio
vadovas.
JEL kodai: M100, M120, M190.

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