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The Human Capital Portfolio Published: Sunday, April 24, 2005 By: Dr. Manuel Ángel Morales

To activate the human capital of the organization, managers must stimulate people. After establishing which resources (human, financial, technical, or physical) are to be used, managers must decide how these resources are to be organized to achieve the desired goals. Communicating the goals, plans and rationale for the organization of resources to the people is a vital aspect of stimulating their interest and achieving adequate involvement.

A manager is called to inspire his or her people to have an interest in their work and the organization in other ways. The manager very often represents the organization to outside groups, such as financial, analysts, bankers, community and civic organizations, professional and trade associations, government agencies and the organizations of customers. The objective of such meetings is to stimulate an understanding and possibly the interest and commitment of people concerning his or her organization. It is forbidden to create doubts, suspiciousness or uncertainty on any of the organizations suppliers or stakeholders. To perform, always advancing the best interests of the organization, is one of the key management jobs for managers or technicians in order to become principal leaders.

There is no need of leadership for creating instability, turbulence or uncertainty. Thirty-four years ago James D. Thompson alerted that the role of a great organizational leader is to act as a boundary-spanner of pressures for his or her organization. That was the image of John F. Kennedy asking, in his Inaugural Address, calling for a renewed and positive commitment to the country. That was the image of Martin Luther King, Jr., saying, “I have a dream”, or walking at the head of a freedom march.

Managers must be positively inspirational to those inside and outside their organization, and they must be creative and insightful in their actions. Managers must present ideas, concepts, theories, beliefs, or goals that other find interesting, intriguing, challenging and stimulating. This aspect of leadership management relates to the task of articulating a common direction for the future, trough identification of a market needs, developing new products and services or polishing the strategic statement of the organization.

To be creative and insightful is to be smart (analytical and cognitive skills), but also to manage with emotional intelligence (self-control and healthy interpersonal relationships). This is not to enter in the sterile debate of intelligence quotient versus emotional quotient. Nor is an issue of nourishing the fragile dichotomy of management versus leadership. A number of recent studies have shown that you need both sets of intelligence in order to be an effective leader while managing the organization. The important question is: How do insightful leaders think that is different than the way their less effective counterparts think?

Four underlying characteristics that enable a leader to be inspirational and insightful are:

  • Self-confidence
  • Use of oral presentations and theoretical frameworks
  • Logical thought
  • Creative conceptualizations

Leaders and managers with these set of attributes see themes and patterns in the common or shared objectives, values, problems, products, services, concerns or performance of people and teams within the organization. They teach them to others in a forceful and impressive manner.

Copyright 2005 QBS, Inc.


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