Written Paper of the Presentation

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2015 SIEC-ISBE 87 th Conference

Krakow, Poland

July 27-31, 2015

“Best educational practices from the Arctic Circle implemented through the Twinning project towards the South “

CASE example of the 3 nd

Component: To design and elaborate a Management Development

Framework (MDF) for Modern PVTD in Egypt.

Hely Westerholm, Ph. D. (Econ.), MBA

DACUM Finland, CEO hely.westerholm@dacum.fi

Abstract

Development and co-operation project between Finland and Egypt was started to strengthen the institutional capacity of the Productivity and Vocational Training Department (PVTD) within the

Vocational Training System. Best educational practices from Finland were implemented through the European Union (EU) Twinning project. Twinning project is a learning process that includes sharing and exchange of knowledge and knowhow through collaboration, in a development partnership with VET (Vocational Education and Training ) organizations from the EU.

The main goals of the project were to contribute to the support of PVTD in enhancing its capacities related to the management and marketing of vocational and educational training (VET), in line with the pertinent Egypt’s national priorities, and in line with the EU Acquis and international best practices.

CASE example of the 3 rd

Component: To design and elaborate a Management

Development Framework (MDF) for Modern PVTD.

The final version of the Modern PVTD MDF was defined to integrate the Management by

Objectives (MBO), Change Management (CM) and Quality Management (QM) for quality and efficiency of the organization. As a tool for delegating power and responsibility the new job descriptions represent the concrete change of a person’s own work.

To support the new holistic management system a new Employee Performance Assessment Form was developed to be used in the Modern PVTD. It was supplemented by the form: Technique for implementing and managing “Development Discussion”. By this step the new management system adopted the basic principle of developing staff, not only assessing it as until now has happened.

For implementation of the Modern PVTD MDF it was designed an organization pyramid, as an ancient Egyptian symbol where every level resembles a certain management level. It integrates the

MDF and job descriptions as well as the structure of the new organization chart.

Key words: Twinning project, PVTD, VET, MDF, MBO, CM, QM

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1.

INTRODUCTION

Development and co-operation project between Finland and Egypt was started to strengthen the institutional capacity of the Productivity and Vocational Training Department (PVTD) within the

Vocational Training System. Best educational practices from Finland were implemented through the European Union (EU) Twinning project.

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Twinning project is a learning process that includes sharing and exchange of knowledge and knowhow through collaboration, in a development partnership with VET (Vocational Education and

Training) organizations from the EU.

Twinning project was implemented by a Finnish team of experts from over 12 organizations together with PVTD, an organization under the Ministry of

Industry, being the local partner in Egypt.

The main goals of the project were to contribute to the support of PVTD in enhancing its capacities related to the management and marketing of vocational and educational training (VET), in line with the pertinent Egypt’s national priorities, and in line with the EU Acquis and international best practices.

In addition, the main goals of the project were to support PVTD in playing an effective role in improving the quality of the Egyptian workforce in order to raise international competitiveness and to accomplish its role and mandate by enhancing its capacity and capabilities in the field of VET.

The project focused on the four components:

1.

Legal and regulatory

2.

Organization and management

3.

Capacity building

4.

Marketing and community awareness & partnership with the private sector [1]

2.

CASE EXAMPLE OF THE 3 rd COMPONENT, ACTIVITY 3.3:

To Design and Elaborate a Management Development Framework (MDF) for the

Modern PVTD.

2.1.

Starting Point

From the 10 HR and MDF missions during the project year 2014-2015 the wording of the first

MDF mission in short consisted of the following content: Management by Objectives (MBO) for the Quality and Efficiency of the Organization. The first MDF Mission was arranged in October 25

- 31, 2014 by the same STE (Short Term Expert) Dr. H. Westerholm who was responsible for the development of HR function. The initial objectives were to improve understanding the concept of the MDF, to improve understanding the genuine role of the manager and leader within the MDF as well as to draft the initial version of the PVTD’s MDF.

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The original target according to the Twinning contract consisted of designing and elaborating a

MDF by taking advantage of the learning-by-doing method i.e. it was decided to arrange for PVTD participants a study tour to Omnia College in Espoo, Finland which included and contributed to the thorough familiarization of MDFs in similar organizations in the field of VET in EU Member

States.

The first group of participants consisted of 18 members, most of them representing General

Managers, VTC (Vocational Training Center) Managers and Superiors having subordinates between 5 -545. The most common examples of management systems and standards were introduced.

Objectives

Management in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management includes forecasting, planning, organizing, staffing, leading and controlling an organization to accomplish the goals. In addition, management involves identifying the vision, mission, values, objectives, procedures, rules and the leading of the human capital of an organization to contribute to the success of the organization. [2]

The following objectives were defined to design and elaborate the MDF:

1.

Arranging study tours which include and contribute to the study of management development systems in similar organizations in the field of VET in European

Union Member States.

2.

Designing an elaborating a MDF for the organization.

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3.

Initiate leadership development initiatives as internal pilot projects conducted with support of EU STE.

To understand the prevailing international context it has been important to study the ECVET,

European Credit system and National Qualification system to convey best practices for Egyptian context.

Most organizations have three management levels: first-level, middle-level, and top-level managers.

These managers are classified in a hierarchy of authority and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. [3]

2.2.

The CAF Model

The CAF model has been benchmarked in the Management Development Framework (MDF) of the

Modern PVTD. It looks at the organization from different angles at the same time and form the holistic approach to organization performance analysis.

The CAF Model

1)

EFQM laatupalkintomalli

(The EFQM Excellence Model )

ENABLERS

3. People

RESULTS

7. People results

1.

Leadership

2. Strategy &

Planning

5.

Processes

6.Citizen/Customer-oriented

Results

9.

Key

Performance

Results

4.Partnerships

&

Resources

8.Social

Responsibility

Results

INNOVATION AND LEARNING

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Figure 1. The CAF model

The CAF underlines the importance for the management of an organization, of compliance with a series of values assumed as necessarily: legality, transparency, equity, respect for diversity and rejection of conflicts of interest. The CAF helps the Modern PVTD to perform a self-assessment with the involvement of all staff, to develop an improvement plan based on the results of the selfassessment and to implement the improvement actions. [4]

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2.3.

Modern PVTD MDF

The final version of the Modern PVTD MDF was defined to integrate the Management by

Objectives, Change Management and Quality Management for quality and efficiency of the organization. [5-9]. As a tool for delegating power and responsibility the new job descriptions represent the concrete change of a person’s own work. When you start the change from yourself it is possible to extend it to cover the whole organization.

Figure 2. Management Development Framework of the Modern PVTD

2.3.1.

MBO

MBO or Management By Objectives (Drucker, 1954) is a traditional and comprehensive managerial system that integrates many key managerial activities in a systematic process.

MBO is consciously directed toward the effective and efficient achievement of organizational and individual objectives. The six steps of MBO process are: 1) Define organizational goals 2) Define employees’ objectives 3) Continuous monitoring performance and progress 4) Performance evaluation 5) Providing feedback 6) Performance appraisal.

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Figure 3. Process of Management by Objectives

The study visit reassured and clarified the prevailing management problems of the PVTD:

“Management by objectives works if you first think through your objectives. Ninety percent of the time you haven't “, as the famous management guru Mr. Peter Drucker expressed the challenge

The practical importance of objectives in management can best be seen by summarizing how successful managing by objectives works in practice.

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2.3.2.

Change management

Change management is an approach to transitioning individuals, teams, and organizations to a desired future state. Organizational change management should begin with a systematic diagnosis of the current situation in order to determine both the need for change and the capability to change.

The objectives, content, and process of change should all be specified as part of a Change

Management plan. Organizational change is strategically achieved through the implementation of the eight-step plan of action (Kotter, 1995): Increase urgency, build the guiding team, get the vision right, and communicate the buy-in, empower action, create short-term wins, don't let up, and make change stick. Regardless of the many types of organizational change, the critical aspect is a company’s ability to win the buy-in of their organization’s employees on the change.

2.3.3.

Quality management

Quality management ensures that an organization, product or service is consistent. It has four main components: quality planning, quality control, quality assurance and quality improvement. Quality management is focused not only on product and service quality, but also on the means to achieve it.

Quality management, therefore, uses quality assurance and control of processes as well as products to achieve more consistent quality.

2.3.4.

The new holistic management system

The new holistic management system underlines the importance of the management of an organization, its ability to join all the human resources available for the quality and efficiency of the

Modern PVTD.

Reasons for the change in PVTD’s management system presented by the participants:

 to enhance performance and increase productivity

 to meet with the goals and objectives of the PVTD

 to have decisions in right time to have more creativity and comprehensive vision

 to simplify the work process

 to enhance management level and widen decentralization

In internal analysis of the current system participants found more weaknesses than strengths.

Limited budget, slow response to change, no systematic approach to raise the managers’ efficiency, limited investment in qualified people, no technical training plans, lack of allocated resources, no culture of HR, no organized system for applying the best practices were the key issues.

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As to the strengths the participants trust on Government support, effective communication and connections, availability of academically, practically and pedagogically trained staff and sufficient number of managerial competence.

In external analysis participants found more opportunities than threats: national development training projects, positive change in the legislative environment, change of social image towards the vocational work and vocational training, external entities support resources, to change competitors to partners, PVTD has good geographic spread and last but not least, there is now an opportunity available for forming a National Organization for Vocational Training.

As to the threats economic recession could lead to downsizing of allocations, political unexpected changes, negative image about the vocational training, not coping up with the rapid development in the labor market, carelessness to maintenance and upgrading processes, unavailability of infrastructure and raw material, emergence of new strong entities.

To support the new management system a new Employee Performance Assessment Form was developed to be used in the Modern PVTD. It was supplemented by the form: Technique for implementing and managing “Development Discussion”. By this step the new management system adopted the basic principle of developing staff, not only assessing it as I had happened until now.

As a good example of all participants’ common understanding of the New PVTD MDF one individual proposal integrated both Change Management and Quality Management including personal job description as a process to the MBO Framework. This proposal was unique and might be more widely spread. Only this kind of independent action can result in the final action in the whole organization:

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Table 1. Management Development Framework to achieve PVTD Vision

3.

IMPLEMENTATION OF THE MODERN PVTD MDF

For implementation of the Modern PVTD MDF it was designed a pyramid, as an ancient Egyptian symbol, where every level resembles a certain management level. It integrates the MDF and job descriptions as well as the structure of the new organization chart. When defining the tasks of each management level two critical issues have to be taken into account: an action plan which is limited by the budget.

To guarantee the renewal of the organization structure and its members in future the establishing of the so-called second line should be promoted to become part of the front line. The purpose and objectives of the new corporate governance is about ensuring performance by connecting management, employees as well as stakeholders to the common policy, strategy and decisionmaking processes.

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Figure 4. PVTD organization structure

Advantages of the New Management System were carefully analyzed by the participants and good arguments were presented. The main focus concentrated on the willingness to delegate the power and responsibility by developing planning and performing capacity for each of the managers and subordinates.

4.

CONCLUSIONS

As to the key developments in the management policy area during the implementation of the project it was found a learning process during the MDF Missions which proved that the system of MBO could be a process whereby management and employees jointly identify its common goals. It defines each individual's major areas of responsibility in terms of the results expected of him, and uses these measures as guides for operating the unit and assessing the contribution of each of its members.

To increase the quality and efficiency of the New MDF it consists of identifying and setting priorities for necessary changes regarding the structure, performance and management of the PVTD organization. Accordingly, the New MDF causes a renewal of the power culture .[10]

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Executives are in charge of the strategic leading of the organization and middle management is in charge of the operational execution.

To overview the results achieved from the original Twinning Contract's point of you the Design and

Elaboration of the MDF were defined and proposed for the final decision process. The Modern

PVTD’s New MDF ensures to establish and deliver effective links and partnerships between PVTD and its training centers with the key public and private stakeholders and formalizing the processes of collaboration in a structured framework.

It’s obvious that within the PVTD there is a strongly demand for discussion, dialogue and open collaboration to renew the organizational culture.

5.

IMPACT

As to internal problems threatening the implementation of the New MDF the outcomes depend on the willingness and ability to make quickly required decisions by the PVTD Board members and top management. The MDF Mission participants have been so committed to the results and outcomes finalized during the last missions that the typical attitude of frustration was disappeared.

The unwillingness will be doubled if the change does not come true and all the work done proves to be vain. On the contrary, the state of will for change among all the project participants has been so strong and genuine that the Twinning project may show to be a bigger challenge than expected.

There is a strong need to get the final commitment from all partners to achieve sustainable implementation of the Project outcomes for continuous development.

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LIST OF LITERATURE

[1] Twinning Project EG12/ENP-AP/SO/18

[2] Wren, D. A., Bedeian, A. G & Breeze, J. D. (2002) "The foundations of Henri Fayol’s administrative theory", Management Decision, Vol. 40 Iss: 9, pp.906 - 918 state.

[3] Kleiman, Lawrence S. "Management and Executive Development." Reference for Business:

Encyclopedia of Business(2010): n. pag. Web. 25 Mar 2011.

[4] The Common Assessment Framework, CAF. Improving Public Organizations through Self-

Assessment, 2013.

[5] Drucker, P., The Practice of Management. New York: Harper & Brothers. 1954.

[6] Kotter, J., "Change Management vs. Change Leadership -- What's the Difference?", 2011.

[7] ISO 9004:2008 — Guidelines for performance improvement.

[8] Rose, Kenneth H. Project Quality Management: Why, What and How, 2005.

[9] Feigenbaum, A. V., Total Quality Management, 2002.

[10] Handy, C. B., Understanding organizations, 1985.

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