BUSA CH 1 Management Good management is basic to starting a business, growing a business, and maintaining a business once it has achieve some measure of success. A good manager does not do the work of others but instead helps others to do their work. Management: getting work done through others. 2 Important management concepts: efficiency and effectiveness Efficiency: is getting work done with minimal effort, expense, or waste (e.i. Hospital in Toronto) Efficiency is an important focus for individual organizations and for Canada as a whole, given that labour productivity is tied to a country’s economic success and standard of living Efficiency alone is not enough to ensure success. Manager must also strive for effectiveness. Effectiveness: accomplishing tasks that help fulfill the organizational objectives; such as customer service and satisfaction. Example: Google – as a case in point, the top 3 behaviours identified were 1. Be a good coach, 2. Empower: don’t micromanage, 3. Be interested in direct reports’ success and well-being. Managers need to perform 5 managerial functions in order to succeed, according to Fayol: 1. 2. 3. 4. 5. Planning Organizing Coordinating (out) Commanding (referring to it as leading) Controlling The updated form for the “Four Functions of Management” 1. 2. 3. 4. Planning Organizing Leading Controlling Studies suggest that managers who perform these management functions well are more successful, gaining promotions for themselves and profits for their companies. One study has found that the more time CEOs spend planning, the more profitable their companies are. Planning: involves determining organizational goals and a means for achieving them (example: Instagram) Planning is one of the best ways to improve performance. It encourages people to work harder, to work hard for extended periods, to engage in behaviours directly related to accomplishing goals, and to think of better ways to do their jobs. But most important, companies that plan have larger profits and faster growth than companies that don’t plan. Organizing: is deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company The organizational structure of a company can have a major impact on its ability to handle decisions and execute effectively, which is why managers will often examine the organization and, when necessary, make changes or suggest a reorganization of the company’s structure. (Example: Rogers Communication Inc) Leading: involves inspiring and motivating employees to work hard to achieve organizational goals. (Example: The Running Room) Stanton said “ true success is never knowing if you are working or planning” Controlling: involves monitoring progress toward goal achievement and taking corrective action when progress isn’t being made. The basic control process involves setting standards to achieve goals, comparing actual performance to those standards, and then making changes to return performance on those standards Example: Mountain Equipment Co-op Kinds of Managers Top manager: (Chief executive officer CEO, Chief operating officer COO, Chief financial officier CFO, Chief information officer CIO) - Executives responsible for the overall direction of the organization. Responsibilities: 1. Responsible for creating a context for change – The first 100 days also known as the honeymoon period the first few months of a top manager’s tenure can be the “make or break” time period that will determine whether that person will succeed 2. Develop employee’s commitment to and ownership of the company’s performance, that is top managers are responsible for creating employee buy-in 3. Create a positive organizational culture through language and action. 4. Responsible for monitoring their business environment Middle Managers: (Plant manager, regional manager, or divisional manager) Responsible for setting objectives consistent with top management’s goals and for planning and implementing subunit strategies for achieving those objectives. Responsibilities: 1. 2. 3. 4. Plan and allocate resources to meet objectives Coordinate and link groups, departments, and divisions within a company. Monitor and manage the performance of subunits and of individual managers Responsible for implementing the changes or strategies generated by top managers Fist-Line Managers: (office managers, shift supervisor, or store or department manager– usually the only managers that do not supervise other managers) Responsibility: 1. Manage the performance of the entry-level employees who are directly responsible for producing a company’s goods and services 2. First-line managers are expected to train, monitor, encourage, and reward the performance of frontline workers to ensure organizational objectives are achieved and quality is maintained. 3. make detailed schedules and operating plans based on middle management’s intermediate-range plans. - firstline managers engage in planning and actions that typically produce results within two weeks. Team Leaders This form of management developed as companies shifted to self-managed teams, which by definition have no formal supervisor. primarily responsible for facilitating team activities toward accomplishing a goal. However, this doesn’t mean that team leaders are responsible for team performance—the team is. Team leaders help their team members by developing timelines, delegating work to members of the team, providing project information to supervisors, and giving updates on the team’s progress and the project’s status Communication and interpersonal relationships are much more important in team structures because team members can’t get work done without the help of their teammates. Top managers: executives responsible for the overall direction of the organization. Middle managers: managers responsible for setting objectives consistent with top management’s goals and for planning and implementing subunit strategies for achieving these objectives First-line managers: managers who train and supervise the performance of non-managerial employees who are directly responsible for producing the company’s products or services. Team leaders managers responsible for facilitating team activities toward accomplishing a goal. managers fulfill three major roles while performing their jobs: 1. interpersonal roles 2. informational roles 3. decisional roles In other words, managers talk to people, gather, and give information, and make decisions Interpersonal Roles More than anything else, management jobs are people intensive. In fulfilling the interpersonal role of management, managers perform three sub-roles: figurehead, leader, and liaison. figurehead role: managers perform ceremonial duties like greeting company visitors, speaking at the opening of a new facility, or representing the company at a community luncheon to support local charities. Figurehead role the interpersonal role managers play when they perform ceremonial duties. leader role: managers motivate and encourage workers to accomplish organizational objectives. Individuals assuming the leader role can be found in business, in government, and in non-profit organizations. Leader role the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives. liaison role: the interpersonal role managers play when they deal with people outside their units Informational Roles monitor role: he informational role managers play when they scan their environment for information. managers scan their environment, actively communicate with others, and, because of their personal contacts, receive a great deal of unsolicited information Besides receiving firsthand information, managers monitor their environment by reading local and national news publications like the Globe and Mail and the Business News Network to keep track of business news, customer trends, competitor news, and technological developments that may affect their businesses. Because of their numerous personal contacts and their access to subordinates, managers are often hubs for the distribution of critical information. disseminator role: the informational role managers play when they share information with others in their departments or companies. managers share the information they have collected with their subordinates and others in the company. In contrast to the disseminator role, in which managers distribute information to employees inside the company, in the spokesperson role, managers share information with people outside their departments and companies. spokesperson role: the informational role managers play when they share information with people outside their departments or companies Decisional Roles Obtaining and sharing information with people inside and outside the company is useful to managers because it helps them make good decisions. 4 Decisional Roles: 1. 2. 3. 4. entrepreneur role disturbance handler role resource allocator role and negotiator role entrepreneur role: the decisional role managers play when they adapt themselves, their subordinates, and their units to change. managers adapt themselves, their subordinates, and their units to change disturbance handler role: the decisional role managers play when they respond to severe problems that demand immediate action. managers respond to pressures and problems so severe that they demand immediate attention and action. resource allocator role: the decisional role managers play when they decide who gets what resources managers decide who will get what resources and how much of each resource they will get. negotiator role: the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises managers may negotiate schedules, projects, goals, outcomes, resources, and employee raises. What Companies Look for in Managers When companies look for employees who would be good managers, they look for individuals who have: 1. technical skills, 2. human skills, 3. and conceptual skills Technical skills: the specialized procedures, techniques, and knowledge required to get the job done. are the specialized procedures, techniques, and knowledge required to get the job done. Technical skills are most important for team leaders and lower level managers because they supervise the workers who produce products or serve customers Team leaders and first-line managers need technical knowledge and skills to train new employees and help employees solve problems, and to troubleshoot problems that employees can’t handle. Technical skills become less important as managers rise through the managerial ranks. Human skills: the ability to work well with others can be summarized as the ability to work well with others. Managers with people skills work effectively within groups, encourage others to express their thoughts and feelings, are sensitive to others’ needs and viewpoints, and are good listeners and communicators. Because lower-level managers spend much of their time solving technical problems, upper-level managers may actually spend more time dealing directly with people. Conceptual skill: the ability to see the organization as a whole, understand how the different parts affect one another, and recognize how the company fits into or is affected by its environment. include the ability to see the organization as a whole, to understand how the different parts of the company affect one another, and to recognize how the company fits into or is affected by elements of its external environment such as the local community, social and economic forces, customers, and the competition. Good managers must be able to recognize, understand, and reconcile multiple complex problems and perspectives Conceptual skills increase in importance as managers rise through the management hierarchy. MISTAKES MANAGERS MAKE Management failure has typically been associated with managers who experience career “derailment” (related to the metaphor of a train coming off the track) Leadership derailment occurs in a situation when leaders who progress upward by capitalizing on their key strengths suddenly fail to develop more widely and are unable to deliver results when confronted by challenges that require a broader range of capabilities. Key Characteristics of Leaders Who Derail 1. Difficulty in changing or adapting 2. Problems with interpersonal relationship 3. Failure to build and lead a team 4. Failure to meet business objectives 5. Too narrow a functional orientation Strategies to Prevent Leadership Derailment 1. Executive coaching: Equipping managers with the tools, knowledge, and opportunities they need to develop themselves and become more effective will help them better cope with the challenges that are likely to confront them in their higher job positions 2. Leadership training: This helps foster the development of needed skills and behaviour that help the leader perform and prevent derailment 3. Self-awareness: This is the first component of the needed changes that can help prevent a leader from derailing. 4. Creating effective management processes and feedback: Organizations must develop effective management tools to identify early signals of derailment and address these during recruitment and selection processes. - Studies show that most derailment occurs following a management transition to a position with greater responsibility and greater scrutiny
