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Article in Competitiveness Review An International Business Journal incorporating Journal of Global Competitiveness · September 2012
DOI: 10.1108/10595421211266302
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Eulogio Cordón-Pozo
University of Granada
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University of Granada
This research was supported by the Research Project ECO2007-67833 of the Spanish
Ministry of Education.
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
Purpose: This paper offers an analysis of the effectiveness of one of the more
widespread techniques for personnel development and training: coaching. This
technique in the business context entails boosting of a manager’s capabilities so as to
improve business results through a combination of experience, knowledge, support and
the motivation provided by advisors who specialise in business management.
Design/methodology/approach: To analyse the effectiveness of this innovative
technique, we have examined a sample of forty small companies located in Ceuta (an
autonomous Spanish city in North Africa) using a Wilcoxon-Mann-Whitney test.
Participants were divided into two groups; in one group, an individualised audit process
was conducted to obtain an actual picture of managerial practices (focusing on needs
and corrective measures). In the other group, an advising process also complemented a
coaching phase that was implemented to facilitate employee adoption of the proposed
measures. Ultimately, we found differences between these two groups.
Findings: Results indicate that coaching substantially increases the level to which
processes of improvement are established within organisations, consequently
increasing the competitive capability.
Practical implications: The findings highlight the potential benefits of the use of
coaching in the business context. Coaching facilitates the implementation of a set of
improvement measures designed to increase business competitiveness, suggesting that
this type of advising stands to be very beneficial for companies.
Originality/value: Practices that lead to the development of human capital in
organisations are basic tools for managers that are becoming increasingly essential for
achieving business efficiency and strategic change. This study analyses the
implementation of coaching in the business arena, specifically in the case of managers,
which is a novelty given the dearth of empirical research on coaching. Thus, the results
of the paper provide the wider academic community with empirical evidence on how
coaching is a profitable practice for improving human resource management.
Keywords: Coaching, personnel training, competitiveness, implementation of
improvement measures, managers’ satisfaction, Wilcoxon-Mann-Whitney test.
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
1. Introduction
To adapt and obtain competitive advantages in the current business context, companies
adequate management of human resources is a determining factor for the decisive role it
plays in implementing the business strategy and for its potential in achieving a
2009; Wright, McMahan and McWilliams, 1994). Currently, techniques for the training
would facilitate organisational learning and improve efficiency at both the individual
directly encourages personal development while indirectly fostering the economic and
interactive, direct and confidential process by means of which a trainer and another
employee (or a reduced group of employees) attempt to find the most effective way for
achieving objectives while making significant changes within a company (Launer, 2007)
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
objective of this work is twofold. First, from a theoretical point of view, this work seeks
coaching in the management context and by analysing its influence on internal factors
related to a firm’s ability to compete. Second, using a sample of forty companies located
business improvements. In our empirical research, we analysed whether firms from our
sample that had invested in coaching saw a boost in their business outcomes.
Understanding the importance of coaching is essential for two main reasons. On the one
management practice, scepticism still remains regarding its real efficacy, with some
studies questioning the return on investment. Unlike prior studies that have analysed
coaching (at a global level), assessing the impact of key strategic changes on business
development.
On the other hand, at present, coaching enjoys extensive acceptance and is generally
investment in coaching testifies to its perceived importance. For instance, in the United
States, the expense for executive coaching is estimated at $1 billion per year. Hence, by
analysing results from forty companies, our study employs empirical data to clarify the
coaching concept in the management context. Our finding supports the notion that the
changes.
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
Consequently, in light of the increasing interest in coaching within the business context,
competitiveness.
From a business management perspective, coaching is in its very early stages. Indeed, it
has only recently begun to be mentioned (Colomo and Casado, 2006). That said, Tim
Gallwey (e.g., 1974; 1981; 2000) has been one of the pioneers in demonstrating the
achieving personal improvement that it can be easily implemented not only in sports but
also in other fields such as business, health and education, and with highly satisfactory
to promote the training of managers. Since the 1980s, several business management
studies started to analyse coaching inside organisations, defining the concept as well as
its field of application. Coaching is a process in which a coach and a coachee (or a small
action plan (Zeus and Skiffington, 2002). The coach manages and coordinates the
execution of a program focused on the coachee (or group of coachees), who receives an
offer to grow both personally and professionally, while the coach acts and provides
strategies that lead the coachee to success. To achieve this success, the coachee receives
individualised and practical support throughout the entire coaching process. This
assuming new responsibilities, facing different situations within the daily routine and
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
ultimately improving one’s overall performance. In a similar vein, for this technique to
work, it is essential that the coachee not play a passive role but be actively involved in
the activities that are developed (Alcalá, 2002). Thus, the concepts of choice and
responsibility are critical, as the effectiveness of the process depends on both the
coach’s contribution as well as the coachee’s will to change. This willingness must also
entail a capacity to set aside pre-established ways of thinking that would restrict the
own behaviour. Finally, while the assistance and advice that coachees receive can help
them to make decisions, such assistance and advice does not exempt coachees from their
modern approach to the staff development and training practices and highlights the
In addition, coaching possesses some peculiarities that make it quite different from
traditional staff development and training practices. For instance, coaching attempts to
reinforce the coachees’ existing capabilities, liberating all of their potential so that they
may be able to attain a peak performance. Thus, coaching is a method designed to “help
to learn” rather than to “help to teach” (Whitmore, 2003), i.e., to re-learn what one has
already learned through experience. To achieve this, coaches must recognise that
knowledge is not within themselves, but rather within the coachees; consequently, a
coach’s work is a process of support and encouragement achieved through a use of the
are impelled to seek and find answers for themselves (Ravier, 2005).
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
In addition, it is interesting to point out that coaching must be adapted and personalised
according to the particularities and needs of the company. Therefore, even though it is a
modelled with respect to the moment, the place and the circumstances in which it
occurs.
Given the specific context, companies can opt to design the coaching process by means
of an internal program, guided and implemented by qualified staff from their own
organisation, or they can do so by means of an external program, where the coach will
contracted for providing a service, with the elements of that service or coaching process
Whether or not to contract external people or to use internal staff for the coaching
professional associations that are attempting to regulate this field through the
of this academic qualification has both defenders and detractors. That said, there does
exist some agreement about the basic competences that a coach must have (Cook, 1999;
Dotlich and Cairo, 2002; Gautier and Vervish, 2001; Zeus and Skiffington, 2002). For
professional guide for managers; if the expert cannot understand the business world
and has not faced the problems and situations of this field, the work provided will be
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
quite shallow. Moreover, regardless of whether the coach is external or internal, such
work is only as effective as the coach. When developing the coaching tasks, the coach
must possess a deep knowledge of the business strategy and an awareness of the
organisational objectives.
Coaching is a particularly useful tool in the field of human resources for small and
medium enterprises (SME), as the work of many of these companies depends on the
learning of a job. The context for this tool dates back to the ancient guild system where
apprentice. Indeed, in these contexts, formal education is not effective, as the conditions
of the job vary depending on the company, the sector and the economic, social and
However, there is a fundamental difference between coaching and formal education that
involves an adaptability and flexibility to business circumstances and needs, and thus to
the people to be trained. The method moves away from classical training systems based
business characteristics and situations; and second, it is adapted to the potential and to
the deficits of the individuals being trained. This adaptation achieves a much higher
level of results by attaining a decidedly more active level of participation and a more
dynamic learning.
In the business context, a coach plays the role of an adviser whose aim is to promote
strategic change through a diagnosis of the business situation and by helping to guide an
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
aware not only of existing imbalances but also of the potential to commit managerial
measures. Consequently, this work aims to analyze to what extent the coaching could
improvements concerning the strategic change of the company. For this reason, our first
change.
Note also that coaching can result in an increase in profitability, as a coach gives
coachees the ability to make cutbacks, as well as the ability to become more self-
conscious, to develop an analysis of the situation, and to make corrective plans that take
into account the effects of past performances (Stratford and Alyssa, 2004). At this point,
this work attempts to analyze whether the implementation of coaching within the
company could encourage not only a greater staff acceptance of several improvements
concerning strategic change, but also the correct implementation and application of
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
strong links created, and by the depth of treatment and the contents analysed during the
process. To obtain positive results, it is essential that the coach controls the emotional
component (Schlegelmich and Fresco, 2005). Although such control is certainly difficult
overcome the change resistance that hinders an individual from making actions and
completion of the process. In the case of a manager that is being advised, the coach must
be a highly trained and impartial interlocutor with enough confidence to share ideas,
plans, and strategies (Bolch, 2001; Jones and Spooner, 2006). A coach’s efficacy is based
detailed observations, and on the quality of the corresponding interactions with the
coachee (Dilts, 2004). In doing so, the coach can alter thinking patterns and foster new
thinking differently before being faced with new challenges. To do this, a coach must
improve a coachee’s training while decisions are being made (Álvarez and Obiols, 2009),
not only from the perspective of competences (i.e., knowing how to make decisions) but
also along emotional and affective dimensions (e.g., psychological aspects) as well as the
social dimension (e.g., effects produced by decisions in the groups affected by these
managers.
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4. Research methodology.
To empirically contrast our hypotheses, the study was based on data obtained from two
European Regional Development Fund and the Spanish Ministry of Industry, Tourism
and Trade. Both projects were developed in 2009 and aimed to improve the
individualised strategic diagnoses of the companies were made in an effort to decide for
The same procedure was followed for both projects, using an auditing process to detect
adapted to the situations of each business. One of the projects was completed by
applying a coaching service to the consulting process itself (the coached group), while
the other was finished by writing a report that included the diagnosis and the measures
To conduct the coaching technique in the coached group, a business management expert
helped each manager individually, meeting them in their own homes. This consultation
action plan, measures to implement, and how best to do so with the resources available.
Ultimately, managers were guided and coached in the application of these measures.
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
The coach paid particular attention to opportunities for persuading managers that they
needed to modify certain habits that had become obsolete or outdated. Another
important aspect of the process was its emphasis on the emotional dimension, as
emotions are decisive for identifying or modifying attitudes and behaviours. Lastly,
through an intense interaction with their coachees, coaches emphasise the motivation of
learning. Thus, coachees are active members in a learning process, where they are
acceptance of the proposed improvement measures (Hypothesis 1a), second, the level of
application of the measures (Hypothesis 1b), and third the level of satisfaction among
To analyse the second aspect, that is, the level of application of the measures, we
recognised that the level of difficulty varied depending on whether the change was
according to type.
Furthermore, in light of the reports provided by the coaches themselves, we also had
qualitative data at our disposal. These reports referred to a coachee’s abilities and
attitudes observed during the coaching sessions, in the context of being given advice and
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
directives. These reports provide impressions about the effectiveness of the directives
and additional information about the staff and the companies themselves.
implementation between a group that received a coach’s assistance and a group that did
not. The WMW test is similar to an analysis of variance (ANOVA) but is applicable to
small sample sizes and to situations where the normality criteria are not met (Stokes,
Davis and Koch, 1995; Darnall and Edwards, 2006). Thus, the results obtained are
2006).
5. Results
The average size of the participating companies was 6.38 employees (standard deviation
companies and non-coached companies for this parameter. In addition, we found that
50% of the businesses sampled were publicly owned companies while the other 50%
were freelance entrepreneurs (these percentages were similar to those found in coached
companies, i.e., 55% vs. 45%, as well as in non-coached companies, i.e. 45% and 55%).
Table 1 shows the results of the Wilcoxon-Mann-Whitney test, in which the analysed
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
No 2
0 16.45
Level of application of human resources Z= -2.351
measures (H1b) 2 P < 0.05
Yes 0 24.55
2
No 0 18.95 Z= -0.94
Level of application of IT use measures
Non-
(H1b) 2 significant
Yes 0 22.05
2
No 16.18
Participating managers’ level of 0 Z= -2.347
satisfaction (H2) 2 P < 0.05
Yes 24.83
0
There were statistically significant differences in five of the seven variables considered,
supporting Hypothesis 1a, which indicated that coaching practices help a company’s
The results also supported Hypothesis 2, which proposed that coaching practices
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
(Z=-2.347; p<0.05). However, Hypothesis 1b, which suggested that coaching practices
strategic change, achieved only partial support, as several measures showed higher
customer service and human resources measures), but there are other areas in which
6.1. Discussion
This work attempts to offer empirical evidence that coaching can increase the
results show that coaching is a practice related to human resources management with
tremendous potential and applicability, not only in the sports arena but also in the
business context.
to those that did not implement coaching. Consequently, and according to our results,
With respect to the achievement of a firm’s proposed objectives, our results show that
executive coaching may foster a more intimate and quicker learning. Thus, in our
empirical research, the managerial coaching conducted in one of our two company
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
measures among the coached managers. Thus, coaching may ultimately increase the
Similarly, the level of satisfaction was higher in the coached group than it was in the
non-coached group. This is not surprising, as coaching seeks both behavioural and
innovate and create. These facts ensure that superior implementation of improvements
Our results show that the implementation of the proposed measures was higher for the
coached group than for the non-coached group in the management (administrative,
financial and commercial), customer service and human resources fields. A better
understanding of the measures, the advice received when implementing these measures
and the increased motivation are associated with higher levels of implementation for the
coached group compared to the case of managers who only received audit reports.
These managers had to analyse conclusions and results for themselves; they had to
implement tasks related to the proposed improvements without the benefits of any
advising service.
However, with respect to the application of measures related to structural changes and
the use of new technologies, the differences were not statistically significant between
our two groups. This finding is consistent with what we expected in light of the
important economic and organisational efforts that structural changes likely imply for
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
new technologies might entail minor expenses and/or investments (e.g., internet use,
both types of measures, the role of coaches did not significantly influence managerial
attitudes. Moreover, qualitative information provided by coaches showed that (in most
cases) managers understood the importance of the proposed measures, the lack of
resources and that the long term necessary for investment amortisation was more
In sum, our work contributes both theoretically and empirically to the existing
literature. From a theoretical view, this study enriches the otherwise limited state of the
literature concerning the positive effects of coaching in the business context. Moreover,
we offer empirical results that support the use of coaching in a business context,
encouraging the corporate use of this personnel training and development practice.
In addition to the research implications of our work explained above, our findings have
practitioners, the statistically significant and positive relationship between coaching and
competitiveness suggests that this type of advising stands to be very beneficial for
companies. In the case of SMEs in particular, due to their size and lack of managerial
resources or time for specialised advising, the superior adaptability of coaching (both to
the company’s circumstances and to the managers’ characteristics) allows for quick and
management techniques and tools that enhance a manager’s global vision and ultimately
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Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
With respect to regulators, our results support the effectiveness of coaching for
develop programs and formative courses on coaching so that managers are able to
management. In the same way, the civil service must take into account that, frequently,
the training offered free of charge by public organisms is too generic and is barely
related to the tasks performed by those that receive this training, which indicates that
managers do not show an interest towards it because of its low effectiveness. Since
coaching is a specific type of training that could be adapted and personalised according
to the particularities and needs of the company focusing on the current situation (Bou-
Pérez, 2007), its development within the company implies a process positioned and
modelled with respect to the moment, the place and the circumstances in which it
There are several limitations to our work that should be considered in future research.
First, our sample is based on a limited group of small-sized companies. This was itself a
consequence of the complexity of conducting the audits, the time required for the
coaching process and the financial resources available for this research. To obtain more
study with a larger sample. Second, results were measured only over the short term; the
time between administering of the audits and the implementation of coaching was six
in future research. Our research is certainly limited in that we are largely incapable of
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Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
determining the long- and medium-term effects of coaching. Future research on the
wider generalisation of our results. We expect that other studies will have the
opportunity to sample larger companies located over a wider range of regions and
countries.
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This is a preprint of a work to be published in Competitiveness Review©. 2012.
Vidal Salazar, M.D., Ferrón Vilchez, V., Cordón Pozo, E. Vol. 22(5), pp. 423 – 433. DOI: 10.1108/10595421211266302
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