The Business Leader and the Four Employee Types

published in: Leadership

22 Jan
2014

At the end of 2013 I was invited by Mobiltel to attend a seminar. The lecturer - Nick Labridis, from the City College, Sheffield, England - was a man with extensive experience in telecommunications. At the seminar he presented interesting employees classification. Based on two criteria: effectiveness and business development; four types of employees were differentiated (see the following figure).employee types, business leader, entrepreneur


Mercenaries
- high contribution to company effectiveness (i.e. achieving results), low contribution to business development. This staff type is appropriate for customer service - strictly regulated work hours and standards. These employees are conscientious and executive during the time for which they are hired. But after that they need to devote to other tasks (family, friends , social activities, hobbies...).

Anchors - less effective (but effective enough not to be fired) and low contribution to company business development. They maintain the good old practices, those that have led the company to its current level. Innovations make them feel insecure and frighten. The anchors do not realize that what was good for the past success cannot provide future success. These employees are appropriate for operational departments, at lower hierarchical levels.

Warriors - lower efficiency but higher contribution to business development. They love challenges, embrace and defend new ideas and practices, innovative and daring, but underestimate the importance of planning and preparation for innovation success. The haste, leading to changes in existing processes without sustainable built new ones, is the basis for their lower efficiency. Warriors are suitable for conceptual development (theoretical) of new business opportunities for the company or department.

Leaders - high contribution both to efficiency and business development. Suitable for managers of key departments, divisions ,departments and implementation of innovation and changes.

Practitioners know that all models are wrong but some are useful !  

A weak leader focuses on errors. A good business leader knows how to focus on the beneficial elements of an idea ... The reason I share the above model is the necessary change in the mindset of the leader during the growth phase of the enterprise. In a micro firm1 the team may be relatively homogeneous , the climate - excellent, sharing corporate values ??- complete. When the same company grows and becomes a small company ( up to 50 people )2 it is no longer possible to maintain the homogeneity of the staff because of the diversity of performed business activities. A change in entrepreneur’s mentality is needed towards acknowledging the necessity for different types of employees for the different types of activities in the growing company . On the intellectual level most business leaders understand the need for change, but on the mental level and subsequently on the action level they face troubles. Indeed, it's hard after 5-10 years of success the leader to change his/her style, mentality, attitudes...
 
Understanding and awareness of the need for different types of employees to ensure further development of the company, as in the above model, is only the first difficult step. A more difficult step is the implementation of a new leadership style that will enable effective collaboration between the different types of employees. In our particular case - growth from micro to small business - there is a third step , "stumbling block" for many entrepreneurs, namely the transition from entrepreneurial management style (called by many authors “management style extended family") to professional management.

In summary : the knowledge of various types of employees, classified by different criteria, allows business leaders to better structure the company, proper selection of employees, and more successful long-term solutions ...

1 - micro-enterprises, according European Committee definition, are those with : 1. average number of employees less than 10 people, and 2. annual turnover not exceeding euro 2 000 000, and / or assets not exceeding euro 2 000 000.

2 - small firms, according European Committee definition, are those who have: 1. average number of employees less than 50 people , and 2. annual turnover not exceeding euro 10 000 000, and / or assets not exceeding euro 10 000 000.

 

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