The Art Of Management

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What makes a successful manager

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The Art Of Management

  1. 1. The Art of Management Everybody thinks being a Manager is easy and anyone can become or do the job of amanager. I have to beg to differ and state that it does in fact take a particular type ofpersonality, skills and experience to be a productive and coherent Manager. We will look into this in more detail to establish exactly what it takes to be a Manager.What Is Management?Management is the act of getting people together to accomplish desired goals andobjectives using available resources efficiently and effectively. Management comprisesplanning, organizing, staffing, leading or directing, and controlling an organization (a groupof one or more people or entities) or effort for the purpose of accomplishing a goal.Resourcing encompasses the deployment and manipulation of human resources, financialresources, technological resources and natural resources.Since organizations can be viewed as systems, management can also be defined as humanaction, including design, to facilitate the production of useful outcomes from a system. Thisview opens the opportunity to manage oneself, a pre-requisite to attempting to manageothers.The verb manage comes from the Italian maneggiare (to handle, train, be in charge of,control horses), which in turn derives from the Latin manus (hand). The French wordmesnagement (later ménagement) influenced the development in meaning of the Englishword management in the 15th and 16th centuries.Some definitions of management are: Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials and money. According to the management guru Peter Drucker (1909–2005), the basic task of a management is twofold: marketing and innovation. Directors and managers have the power and responsibility to make decisions in order to manage an enterprise when given the authority by the shareholders. As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing the firms resources to achieve the policys objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer. In the 21st century observers find it increasingly difficult to subdivide management into functional categories in this way. More and more processes simultaneously involve several categories. Instead, one tends to think in terms of the various processes, tasks, and objects subject to management.
  2. 2. Branches of management theory also exist relating to non-profits and to government: such as public administration, public management, and educational management. Further, management programs related to civil-society organizations have also spawned programs in non-profit management and social entrepreneurship. Note that many of the assumptions made by management have come under attack from business ethics viewpoints, critical management studies, and anti-corporate activism. As one consequence, workplace democracy has become both more common, and more advocated, in some places distributing all management functions among the workers, each of whom takes on a portion of the work. However, these models predate any current political issue, and may occur more naturally than does a command hierarchy. All management to some degree embraces democratic principles in that in the long term workers must give majority support to management; otherwise they leave to find other work, or go on strike. Despite the move toward workplace democracy, command-and-control organization structures remain commonplace and the de facto organization structure. Indeed, the entrenched nature of command-and-control can be seen in the way that recent layoffs have been conducted with management ranks affected far less than employees at the lower levels. In some cases, management has even rewarded itself with bonuses after laying off level workers. According to leading leadership academic Manfred F.R. Kets de Vries, senior management will often exhibit traits of certain personality disorders. For example, he claims that "If you are a CEO you usually have a magnificent obsession... [You] are obsessed by certain things having to do with business." He also suggests that "you need a solid dose of narcissism to be able to function properly," but that many executives exhibit destructive forms of narcissism.Management TheoriesAt first, one views management functionally, such as measuring quantity, adjusting plans,setting and meeting goals, fore sighting/forecasting. This applies even in situations whenplanning does not take place. From this perspective, Henri Fayol (1841–1925) considersmanagement to consist of six functions: forecasting, planning, organizing, commanding,coordinating and controlling. He was one of the most influential contributors to modernconcepts of management.Some people, however, find this definition useful but far too narrow. The phrase"management is what managers do" occurs widely, suggesting the difficulty of definingmanagement, the shifting nature of definitions and the connection of managerial practiceswith the existence of a managerial cadre or class.One habit of thought regards management as equivalent to "business administration" andthus excludes management in places outside commerce, as for example in charities and inthe public sector. More realistically, however, every organization must manage its workthrough leading employees, people, planning, controlling and organizing processes,
  3. 3. technology, etc. to maximize effectiveness. Nonetheless, many people refer to universitydepartments which teach management as "business schools." Some institutions (such as theHarvard Business School) use that name while others (such as the Yale School ofManagement) employ the more inclusive term "management."English speakers may also use the term "management" or "the management" as a collectiveword describing the managers of an organization, for example of a corporation. Historicallythis use of the term was often contrasted with the term "Labour" referring to those beingmanaged.The Deming CycleThe Deming cycle, or PDSA cycle, is a continuous quality improvement model consisting of alogical sequence of four repetitive steps for continuous improvement and learning: Plan, Do,Study (Check) and Act. The PDCA cycle is also known as the Deming Cycle, or as the DemingWheel or as the Continuous Improvement Spiral. It originated in the 1920s with the eminentstatistics expert Mr Walter A. Shewhart, who introduced the concept of PLAN, DO and SEE.The late Total Quality Management (TQM) guru and renowned statistician Edwards Demingmodified the Shewart cycle as: PLAN, DO, STUDY, and ACT.Along with the other well-known American quality guru-Joseph Juran, Edwards Demingwent to Japan as part of the occupation forces of the allies after World War II. Demingtaught a lot of Quality Improvement methods to the Japanese, including the usage ofstatistics and the PLAN, DO, STUDY, ACT cycle.The graphic above shows Demings Plan-Do-Check-Act (PDCA) cycle. (Deming himself calledit the Shewhart Cycle but Demings work in Japan has led to it commonly being namedafter him.) In BPE, everything is done with the discipline of PDCA. At all levels of theorganisation we: Plan what we are going to do. In this step we assess where we are, where we need to be, why this is important, and plan how to close the gap. Identify some potential solutions. Do try out or test the solutions (sometimes at a pilot level). Check to see if the countermeasures you tried out had the effect you hoped for, and make sure that there are no negative consequences associated with them. Assess if you have accomplished your objective. Act on what you have learned. If you have accomplished your objective, put controls into place so that the issue never comes back again. If you have not accomplished your objective, go through the cycle again, starting with the Plan step.Frequently, a particular project will define sub-objectives, run thorough the PDCA cycle oneor more times to accomplish the sub-objective, then define the next objective and gothrough the cycle again. Thus, many projects end up "turning the wheel" many times beforecompletion. In on-going management activities, we find a similar use of the cycle.What we are trying to avoid by using the PDCA discipline is the "Ready, Fire, Aim" fallacywhere people jump to the solution without identifying the problem and assessing if their
  4. 4. proposed solution fixes it, or even results in another problem. The Act step makes sure wedont have to fix it again in a couple of years.Problems with Deming CycleThe Deming Cycles application was intended for quality control purposes and proposedcontinuous improvement in quality of products/experiments. The simple cycle works well inthis application, but it is debatable that it should be applied to major organizationalimprovement. ISO recognized the need to provide better guidance in this regard andpublished the ISO standard ISO 9004:2000, which replaced the use of the term continuousimprovement with continual improvement. The change is not trivial, it recognizes thatorganizational quality system performance improvement requires significant effort andneeds pauses to consolidate change (hence continual and not continuous improvement)(ISO 9004:2000).The Deming Cycle has an inherent circular paradigm; it assumes that everything starts withPlanning. Plan has a limited range of meaning. Shewart intended that experiments andquality control should be planned to deliver results in accordance with the specifications(see meaning above), which is good advice. However, Planning was not intended to coveraspects such as creativity, innovation, invention or Complex Adaptive Systems. In theseaspects particularly when based upon imagination, it is often impossible orcounterproductive to plan (see referenced Wikipedia pages for why this is so). Hence, PDCAis inapplicable in these situations.The Deming Cycle approaches often do not get to the root cause of a problem, especially inadaptive situations which call for an experiential approach but demand much more rigour inanalysis and data collection. An adaptive challenge exists where there are no visiblesolutions to problems, and can exist, for example in areas where chaos, uncertainty, andambiguity exists, such as new frontiers, and existing complex systems such as Healthcare.Do and Act have the same meaning in English. Dictionaries (Shorter Oxford) provide thefollowing relevant definitions: Do: verb 1 perform or carry out (an action). 2 achieve or complete (a specified target). 3 act or progress in a specified way. 4 work on (something) to bring it to a required state. Act: verb 1 take action; do something. 2 take effect or have a particular effect. 3 behave in a specified way.The Act in the Deming Cycle is meant to be interpreted to have a different meaning to ‘Do’;otherwise it could be as easily have been PDCD or PACA. In PDCA, Act is meant to applyactions to the outcome for necessary improvement (see meaning above), in other wordsAct means Improve (applying PDCA to itself could result in PDCI).The Deming Cycle is a set of activities (Plan, Do, Check, and Act) designed to drivecontinuous improvement. Initially implemented in manufacturing, it has broad applicabilityin business. First developed by Walter Shewhart, it is more commonly called the Demingcycle in Japan where it was popularized by Edwards Deming.Deming Cycle is also known as Shewhart cycle, PDCA, Plan-Do-Check-Act
  5. 5. The Diamond ModelThe Competitive Advantage of Nations of Michael PorterThe Diamond model of Michael Porter for the Competitive Advantage of Nations offers amodel that can help understand the competitive position of a nation in global competition.This model can also be used for other major geographic regions.Traditionally, economic theory mentions the following factors for comparative advantagefor regions or countries: A. Land B. Location C. Natural resources (minerals, energy) D. Labour, and E. Local population size.Because these factor endowments can hardly be influenced, this fits in a rather passive(inherited) view towards national economic opportunity.Porter says sustained industrial growth has hardly ever been built on above mentioned basicinherited factors. Abundance of such factors may actually undermine competitiveadvantage! He introduced a concept of "clusters," or groups of interconnected firms,suppliers, related industries, and institutions that arise in particular locations.As a rule Competitive Advantage of nations has been the outcome of 4 interlinked advancedfactors and activities in and between companies in these clusters. These can be influencedin a pro-active way by government.These interlinked advanced factors for Competitive Advantage for countries or regions inPorters Diamond framework are: 1. Firm Strategy, Structure and Rivalry (The world is dominated by dynamic conditions, and it is direct competition that impels firms to work for increases in productivity and innovation) 2. Demand Conditions (The more demanding the customers in an economy, the greater the pressure facing firms to constantly improve their competitiveness via innovative products, through high quality, etc.) 3. Related Supporting Industries (Spatial proximity of upstream or downstream industries facilitates the exchange of information and promotes a continuous exchange of ideas and innovations) 4. Factor Conditions (Contrary to conventional wisdom, Porter argues that the "key" factors of production (or specialized factors) are created, not inherited. Specialized factors of production are skilled labour, capital and infrastructure. "Non-key" factors or general use factors, such as unskilled labour and raw materials, can be obtained by any company and, hence, do not generate sustained competitive advantage. However, specialized factors involve heavy, sustained investment. They are more difficult to duplicate. This leads to a competitive advantage, because if other firms cannot easily duplicate these factors, they are valuable).
  6. 6. The role of government in Porters Diamond Model is "acting as a catalyst and challenger; itis to encourage - or even push - companies to raise their aspirations and move to higherlevels of competitive performance”. They must encourage companies to raise theirperformance, stimulate early demand for advanced products, and focus on specializedfactor creation and to stimulate local rivalry by limiting direct cooperation and enforcinganti-trust regulations.Porter introduced this model in his book: The Competitive Advantage of Nations, afterhaving done research in ten leading trading nations. The book was the first theory ofcompetitiveness based on the causes of the productivity with which companies competeinstead of traditional comparative advantages such as natural resources and pools of labour.This book is considered required reading for government economic strategists and is alsohighly recommended for corporate strategist taking an interest in the macro-economicenvironment of corporations.Overview of the Competitive Advantage of Nations (The Diamond Model) Porter is a famous Harvard business professor. He conducted a comprehensive study of 10 nations to learn what leads to success. Recently his company was commissioned to study Canada in a report called "Canada at the Crossroads". Porter believes standard classical theories on comparative advantage are inadequate (or even wrong). According to Porter, a nation attains a competitive advantage if its firms are competitive. Firms become competitive through innovation. Innovation can include technical improvements to the product or to the production process.The Diamond - Four Determinants of National Competitive AdvantageFour attributes of a nation comprise Michael Porters "Diamond" of national advantage.They are: 1. factor conditions (i.e. the nations position in factors of production, such as skilled labour and infrastructure), 2. demand conditions (i.e. sophisticated customers in home market), 3. related and supporting industries, and 4. firm strategy, structure and rivalry (i.e. conditions for organization of companies, and the nature of domestic rivalry). 1. Factor Conditions • Factor conditions refers to inputs used as factors of production - such as labour, land, natural resources, capital and infrastructure. This sounds similar to standard economic theory, but Porter argues that the "key" factors of production (or specialized factors) are created, not inherited. Specialized factors of production are skilled labour, capital and infrastructure. • "Non-key" factors or general use factors, such as unskilled labour and raw materials, can be obtained by any company and, hence, do not generate sustained competitive advantage. However, specialized factors involve heavy, sustained investment. They are more difficult to duplicate. This leads to a competitive advantage, because if other firms cannot easily duplicate these factors, they are valuable.
  7. 7. • Porter argues that a lack of resources often actually helps countries to become competitive (call it selected factor disadvantage). Abundance generates waste and scarcity generates an innovative mind-set. Such countries are forced to innovate to overcome their problem of scarce resources. How true is this? 1. Switzerland was the first country to experience labour shortages. They abandoned labour-intensive watches and concentrated on innovative/high- end watches. 2. Japan has high priced land and so its factory space is at a premium. This lead to just-in-time inventory techniques (Japanese firms can’t have a lot of stock taking up space, so to cope with the potential of not have goods around when they need it, they innovated traditional inventory techniques). 3. Sweden has a short building season and high construction costs. These two things combined created a need for pre-fabricated houses.2. Demand Conditions • Michael Porter argues that a sophisticated domestic market is an important element to producing competitiveness. Firms that face a sophisticated domestic market are likely to sell superior products because the market demands high quality and a close proximity to such consumers enables the firm to better understand the needs and desires of the customers (this same argument can be used to explain the first stage of the IPLC theory when a product is just initially being developed and after it has been perfected, it doesn’t have to be so close to the discriminating consumers). • If the nation’s discriminating values spread to other countries, then the local firms will be competitive in the global market. • One example is the French wine industry. The French are sophisticated wine consumers. These consumers force and help French wineries to produce high quality wines. Can you think of other examples? Or counter-examples?3. Related and Supporting Industries • Porter also argues that a set of strong related and supporting industries is important to the competitiveness of firms. This includes suppliers and related industries. This usually occurs at a regional level as opposed to a national level. Examples include Silicon Valley in the U.S., Detroit (for the auto industry) and Italy (leather-shoes-other leather goods industry). • The phenomenon of competitors (and upstream and/or downstream industries) locating in the same area is known as clustering or agglomeration. What are the advantages and disadvantages of locating within a cluster? Some advantages to locating close to your rivals may be 1. potential technology knowledge spill-overs, 2. an association of a region on the part of consumers with a product and high quality and therefore some market power, or 3. an association of a region on the part of applicable labour force. • Some disadvantages to locating close to your rivals are 1. potential poaching of your employees by rival companies and obvious increase in competition possibly decreasing mark-ups.
  8. 8. 4. Firm Strategy, Structure and Rivalry 1. Strategy a. Capital Markets o Domestic capital markets affect the strategy of firms. Some countries capital markets have a long-run outlook, while others have a short-run outlook. Industries vary in how long the long-run is. Countries with a short-run outlook (like the U.S.) will tend to be more competitive in industries where investment is short-term (like the computer industry). Countries with a long run outlook (like Switzerland) will tend to be more competitive in industries where investment is long term (like the pharmaceutical industry). o What about Canada? b. Individuals Career Choices o Individuals base their career decisions on opportunities and prestige. A country will be competitive in an industry whose key personnel hold positions that are considered prestigious. o Does this appear to hold in the U.S. and Canada? What are the most prestigious occupations? What about Asia? What about developing countries? 2. Structure • Porter argues that the best management styles vary among industries. Some countries may be oriented toward a particular style of management. Those countries will tend to be more competitive in industries for which that style of management is suited. • For example, Germany tends to have hierarchical management structures composed of managers with strong technical backgrounds and Italy has smaller, family-run firms. 3. Rivalry • Porter argues that intense competition spurs innovation. Competition is particularly fierce in Japan, where many companies compete vigorously in most industries. • International competition is not as intense and motivating. With international competition, there are enough differences between companies and their environments to provide handy excuses to managers who were outperformed by their competitors.The Diamond as a System • The points on the diamond constitute a system and are self-reinforcing. • Domestic rivalry for final goods stimulates the emergence of an industry that provides specialised intermediate goods. Keen domestic competition leads to more sophisticated consumers who come to expect upgrading and innovation. The diamond promotes clustering. • Porter provides a somewhat detailed example to illustrate the system. The example is the ceramic tile industry in Italy. • Porter emphasizes the role of chance in the model. Random events can either benefit or harm a firm competitive position. These can be anything like major
  9. 9. technological breakthroughs or inventions, acts of war and destruction, or dramatic shifts in exchange rates. • One might wonder how agglomeration becomes self-reinforcing • When there is a large industry presence in an area, it will increase the supply of specific factors (i.e.: workers with industry-specific training) since they will tend to get higher returns and less risk of losing employment. • At the same time, upstream firms (i.e.: those who supply intermediate inputs) will invest in the area. They will also wish to save on transport costs, tariffs, inter-firm communication costs, inventories, etc. • At the same time, downstream firms (i.e.: those use our industry’s product as an input) will also invest in the area. This causes additional savings of the type listed before. • Finally, attracted by the good set of specific factors, upstream and downstream firms, producers in related industries (i.e.: those who use similar inputs or whose goods are purchased by the same set of customers) will also invest. This will trigger subsequent rounds of investment.Implications of the Competitive Advantage of Nations for Governments • The government plays an important role in Porters diamond model. Like everybody else, Porter argues that there are some things that governments do that they shouldnt, and other things that they do not do but should. He says, "Governments proper role is as a catalyst and challenger; it is to encourage - or even push - companies to raise their aspirations and move to higher levels of competitive performance" • Governments can influence all four of Porter’s determinants through a variety of actions such as 1. Subsidies to firms, either directly (money) or indirectly (through infrastructure). 2. Tax codes applicable to corporation, business or property ownership. 3. Educational policies that affect the skill level of workers. 4. They should focus on specialized factor creation. (How can they do this?) 5. They should enforce tough standards. (This prescription may seem counterintuitive. What is his rationale? Maybe to establish high technical and product standards including environmental regulations.) • The problem, of course, is through these actions, it becomes clear which industries they are choosing to help innovate. What methods do they use to choose? What happens if they pick the wrong industries?Criticisms about the Diamond ModelAlthough Porter theory is renowned, it has a number of critics. 1. Porter developed this paper based on case studies and these tend to only apply to developed economies. 2. Porter argues that only outward-FDI is valuable in creating competitive advantage, and inbound-FDI does not increase domestic competition significantly because the domestic firms lack the capability to defend their own markets and face a process of market-share erosion and decline. However, there seems to be little empirical evidence to support that claim.
  10. 10. 3. The Porter model does not adequately address the role of MNCs. There seems to be ample evidence that the diamond is influenced by factors outside the home country.The Fishbone diagramThe fishbone diagram (or Ishikawa diagram or also cause-and-effect diagram) is thebrainchild of Kaoru Ishikawa, who pioneered quality management processes in the Kawasakishipyards and in the process, became one of the founding fathers of modern management.It is simply a diagram that shows the causes of a certain event. It was first used in the 1960s,and is considered one of the seven basic tools of quality management, along with thehistogram, Pareto chart, check sheet, control chart, flowchart, and scatter diagram. SeeQuality Management Glossary. It is known as a fishbone diagram because of its shape,similar to the side view of a fish skeleton.Causes in the diagram are often based around a certain category or set of causes, such asthe 6 Ms, 8 Ps or 4 Ss described below. Cause-and-effect diagrams can reveal keyrelationships among various variables, and the possible causes provide additional insightinto process behaviour.Causes in a typical diagram are normally arranged into categories, the main ones of whichare: • The 6 Ms Machine, Method, Materials, Measurement, Man and Mother Nature (Environment) (recommended for manufacturing industry). Note: a more modern selection of categories used in manufacturing includes Equipment, Process, People, Materials, Environment, and Management. • The 8 Ps Price, Promotion, People, Processes, Place / Plant, Policies, Procedures & Product (or Service) (recommended for administration and service industry). • The 4 Ss Surroundings, Suppliers, Systems, Skills (recommended for service industry).It can also be used in connection with the Neuro-linguistic programming model of theNeurological Levels created by Robert Dilts: with Identity, Beliefs and Values, Capability,Behaviour, Environment.A common use of the Ishikawa diagram is in product design, to identify desirable factorsleading to an overall effect. Mazda Motors famously used an Ishikawa diagram in thedevelopment of the Miata sports car, where the required result was "Jinba Ittai" or "Horseand Rider as One". The main causes included such aspects as "touch" and "braking" with thelesser causes including highly granular factors such as "50/50 weight distribution" and "ableto rest elbow on top of drivers door". Every factor identified in the diagram was included inthe final design.
  11. 11. Appearance of Fishbone DiagramsMost Fishbone diagrams have a box at the right hand side in which is written the effect thatis to be examined. The main body of the diagram is a horizontal line from which stems thegeneral causes, represented as "bones". These are drawn towards the left-hand side of thepaper and are each labelled with the causes to be investigated, often brainstormedbeforehand and based on the major causes listed above. Off each of the large bones theremay be smaller bones highlighting more specific aspects of a certain cause, and sometimesthere may be a third level of bones or more. These can be found using the 5 Whystechnique. When the most probable causes have been identified, they are written in the boxalong with the original effect. The more populated bones generally outline more influentialfactors, with the opposite applying to bones with fewer "branches". Further analysis of thediagram can be achieved with a Pareto chart.The Fishbone DiagramThe Fishbone diagram is the brainchild of Kaoru Ishikawa, who pioneered qualitymanagement processes in the Kawasaki shipyards and in the process, became one of thefounding fathers of modern management. The cause and effect diagram is used to exploreall the potential or real causes (or inputs) that result in a single effect (or output). Causes arearranged according to their level of importance or detail, resulting in a depiction ofrelationships and hierarchy of events. This can help you search for root causes, identifyareas where there may be problems, and compare the relative importance of differentcauses.Causes in the Ishikawa diagram are frequently arranged into four major categories. Whilethese categories can be anything, you will often see: manpower, methods, materials, and machinery (recommended for manufacturing) equipment, policies, procedures, and people (recommended for administration and service).These guidelines can be helpful but should not be used if they limit the diagram or areinappropriate. The categories you use should suit your needs. At SkyMark, we often createthe branches of the cause and effect tree from the titles of the affinity sets in a precedingaffinity diagram.The Fishbone diagram is also known as the fishbone diagram because it was drawn toresemble the skeleton of a fish, with the main causal categories drawn as "bones" attachedto the spine of the fish, as shown below.The Fishbone diagram, as originally drawn by Kaoru Ishikawa, is the classic way of displayingroot causes of an observed effect.The Ishikawa diagram or in other words cause and effect diagrams can also be drawn as treediagrams, resembling a tree turned on its side. From a single outcome or trunk, branchesextend that represent major categories of inputs or causes that create that single outcome.These large branches then lead to smaller and smaller branches of causes all the way downto twigs at the ends. The tree structure has an advantage over the fishbone-style diagram.
  12. 12. As a fishbone diagram becomes more and more complex, it becomes difficult to find andcompare items that are the same distance from the effect because they are dispersed overthe diagram. With the tree structure, all items on the same causal level are alignedvertically.The cause and effect diagram can also be drawn with right angles, which makes it lesstangled, and easier to see what layer of causality is being considered at any given time.To successfully build a cause and effect diagram: 1. Be sure everyone agrees on the effect or problem statement before beginning. 2. Be succinct. 3. For each node, think what could be its causes. Add them to the tree. 4. Pursue each line of causality back to its root cause. 5. Consider grafting relatively empty branches onto others. 6. Consider splitting up overcrowded branches. 7. Consider which root causes are most likely to merit further investigation.Other uses for the Cause and Effect tool include the organization diagramming, partshierarchies, project planning, tree diagrams, and the 5 Whys.Linking Pin ModelThe Linking Pin Model is an idea developed by Rensis Likert in which an organisation isrepresented as a number of overlapping work units in which members of one unit areleaders of another. In this scheme, the supervisor/manager has the dual task of maintainingunity and creating a sense of belonging within the group he or she supervises and ofrepresenting that group in meetings with superior and parallel management staff. Theseindividuals are the linking pins within the organisation and so they become the focus ofleadership development activities.Likert have given the idea of linking pin model for connecting various parts of theorganisation.The model is based on two basic characteristics of the organisation. First, organisation canbe seen as system of interlocking groups; and second, the interlocking groups are connectedby individuals who occupy the key positions of dual membership serving as linking pinbetween groups. Thus every individual functions as a linking pin for the organisation unitsabove and below him. He is the group leader of the lower unit and a group member of theupper unit. In the linking pin structure a group-to-group, as opposed to traditional man-to-man, relationship exists.The linking pin model is an idea developed by Rensis Likert. It presents an organization as anumber of overlapping work units in which a member of a unit is the leader of another unit.In this scheme, the supervisor/manager has the dual task of maintaining unity and creating asense of belonging within the group he or she supervises and of representing that group inmeetings with superior and parallel management staff. These individuals are the linking pinswithin the organization and so they become the focus of leadership development activities.
  13. 13. Force Field AnalysisForce field analysis is a management technique developed by Kurt Lewin, a pioneer in thefield of social sciences, for diagnosing situations. It will be useful when looking at thevariables involved in planning and implementing a change program and will undoubtedly beof use in team building projects, when attempting to overcome resistance to change.Kurt Lewin assumes that in any situation there are both driving and restraining forces thatinfluence any change that may occur.Driving ForcesDriving forces are those forces affecting a situation that are pushing in a particular direction;they tend to initiate a change and keep it going. In terms of improving productivity in a workgroup, pressure from a supervisor, incentive earnings, and competition may be examples ofdriving forces.Restraining ForcesRestraining forces are forces acting to restrain or decrease the driving forces. Apathy,hostility, and poor maintenance of equipment may be examples of restraining forces againstincreased production. Equilibrium is reached when the sum of the driving forces equals thesum of the restraining forces. In our example, equilibrium represents the present level ofproductivity, as shown below.EquilibriumThis equilibrium, or present level of productivity, can be raised or lowered by changes in therelationship between the driving and the restraining forces.For illustration, consider the dilemma of the new manager who takes over a work group inwhich productivity is high but whose predecessor drained the human resources.The former manager had upset the equilibrium by increasing the driving forces (that is,being autocratic and keeping continual pressure on subordinates) and thus achievingincreases in output in the short run.By doing this, however, new restraining forces developed, such as increased hostility andantagonism, and at the time of the former managers departure the restraining forces werebeginning to increase and the results manifested themselves in turnover, absenteeism, andother restraining forces, which lowered productivity shortly after the new manager arrived.Now a new equilibrium at a significantly lower productivity is faced by the new manager.Now just assume that our new manager decides not to increase the driving forces but toreduce the restraining forces. The manager may do this by taking time away from the usualproduction operation and engaging in problem solving and training and development.In the short run, output will tend to be lowered still further. However, if commitment toobjectives and technical know-how of the group are increased in the long run, they maybecome new driving forces, and that, along with the elimination of the hostility and theapathy that were restraining forces, will now tend to move the balance to a higher level ofoutput.
  14. 14. Managers are often in a position in which they must consider not only output but alsointervening variables and not only short-term but also long-term goals. It can be seen thatforce field analysis provides framework that is useful in diagnosing these interrelationships.Force Field AnalysisUnderstanding the Pressures For and Against ChangeForce Field Analysis is a useful technique for looking at all the forces for and against adecision. In effect, it is a specialized method of weighing pros and cons.By carrying out the analysis you can plan to strengthen the forces supporting a decision, andreduce the impact of opposition to it.Using Force Field AnalysisTo carry out a force field analysis, first download our free worksheet and then use it tofollow these steps: • Describe your plan or proposal for change in the middle. • List all forces for change in one column, and all forces against change in another column. • Assign a score to each force, from 1 (weak) to 5 (strong).For example, imagine that you are a manager deciding whether to install newmanufacturing equipment in your factory. You might draw up a force field analysis like theone in the following Figure:Once you have carried out an analysis, you can decide whether your project is viable. In theexample above, you might initially question whether it is worth going ahead with the plan.Where you have already decided to carry out a project, Force Field Analysis can help you towork out how to improve its probability of success. Here you have two choices: • To reduce the strength of the forces opposing a project, or • To increase the forces pushing a projectOften the most elegant solution is the first: just trying to force change through may cause itsown problems. People can be uncooperative if change is forced on them.If you had to implement the project in the example above, the analysis might suggest anumber of changes to the initial plan: • By training staff (increase cost by 1) you could eliminate fear of technology (reduce fear by 2) • It would be useful to show staff that change is necessary for business survival (new force in favour, +2) • Staff could be shown that new machines would introduce variety and interest to their jobs (new force, +1) • You could raise wages to reflect new productivity (cost +1, loss of overtime -2) • Slightly different machines with filters to eliminate pollution could be installed (environmental impact -1)
  15. 15. These changes would swing the balance from 11:10 (against the plan), to 8:13 (in favour ofthe plan).Key points of Force Field AnalysisForce Field Analysis is a useful technique for looking at all the forces for and against a plan.It helps you to weigh the importance of these factors and decide whether a plan is worthimplementing.Where you have decided to carry out a plan, Force Field Analysis helps you identify changesthat you could make to improve it.Pareto ChartA Pareto chart is a special type of bar chart where the values being plotted are arranged indescending order. The graph is accompanied by a line graph which shows the cumulativetotals of each category, left to right. The chart is named after Vilfredo Pareto, and its use inquality assurance was popularized by Joseph M. Juran and Kaoru Ishikawa.The Pareto chart is one of the seven basic tools of quality control, which include thehistogram, Pareto chart, check sheet, control chart, cause-and-effect diagram, flowchart,and scatter diagram. See glossary of quality management.Typically on the left vertical axis is frequency of occurrence, but it can alternativelyrepresent cost or other important unit of measure? The right vertical axis is the cumulativepercentage of the total number of occurrences, total cost, or total of the particular unit ofmeasure. The purpose is to highlight the most important among a (typically large) set offactors. In quality control, the Pareto chart often represents the most common sources ofdefects, the highest occurring type of defect, or the most frequent reasons for customercomplaints, etc.Their use gives rise to the 80-20 Rule that 80 % of the problems stem from 20 % of thecauses.Pareto chart is also called: Pareto diagram, Pareto analysisVariations are weighted Pareto chart, comparative Pareto chartsDescriptionA Pareto chart is a bar graph. The lengths of the bars represent frequency or cost (time ormoney), and are arranged with longest bars on the left and the shortest to the right. In thisway the chart visually depicts which situations are more significant.When to Use a Pareto Chart • When analysing data about the frequency of problems or causes in a process. • When there are many problems or causes and you want to focus on the most significant. • When analysing broad causes by looking at their specific components. • When communicating with others about your data.
  16. 16. Pareto Chart Procedure 1. Decide what categories you will use to group items. 2. Decide what measurement is appropriate. Common measurements are frequency, quantity, cost and time. 3. Decide what period of time the Pareto chart will cover: One work cycle? One full day? A week? 4. Collect the data, recording the category each time. (Or assemble data that already exist.) 5. Subtotal the measurements for each category. 6. Determine the appropriate scale for the measurements you have collected. The maximum value will be the largest subtotal from step 5. (If you will do optional steps 8 and 9 below, the maximum value will be the sum of all subtotals from step 5.) Mark the scale on the left side of the chart. 7. Construct and label bars for each category. Place the tallest at the far left, then the next tallest to its right and so on. If there are many categories with small measurements, they can be grouped as other.Steps 8 and 9 are optional but are useful for analysis and communication. 8. Calculate the percentage for each category: the subtotal for that category divided by the total for all categories. Draw a right vertical axis and label it with percentages. Be sure the two scales match: For example, the left measurement that corresponds to one-half should be exactly opposite 50% on the right scale. 9. Calculate and draw cumulative sums: Add the subtotals for the first and second categories, and place a dot above the second bar indicating that sum. To that sum add the subtotal for the third category, and place a dot above the third bar for that new sum. Continue the process for all the bars. Connect the dots, starting at the top of the first bar. The last dot should reach 100 % on the right scale.Pareto Chart ExamplesExample #1 shows how many customer complaints were received in each of five categories.Example #2 takes the largest category, "documents", from Example #1, breaks it down intosix categories of document-related complaints, and shows cumulative values.If all complaints cause equal distress to the customer, working on eliminating document-related complaints would have the most impact, and of those, working on qualitycertificates should be most fruitful.Quality CirclesThe concept behind quality circles is widely believed to have been developed in Japan in1962 by Kaoru Ishikawa as a method to improve quality, though it is also argued that thepractice started with the United States Army soon after 1945, whilst restoring the war tornnation, and the Japanese adopted and adapted the concept and its application.A quality circle is a volunteer group of employees from the same work area who meettogether to discuss workplace improvement. The circle is empowered to promote and bringquality improvements through to fruition. Though quality circles are not the silver bulletsolution for quality improvement, with the right top end management commitment,
  17. 17. resources, and organisation, they can support continuous quality improvement at shop floorlevel.Because of the social focus of a Quality Circle group, they can not only improve theperformance or an organisation, but also motivate and enrich the work lives of fellowemployees. A typical Quality Circle group will display a good approach to: Analysing the context of a problems and its situation Define exactly what the problem is and the relationship between its component parts Identify and verify that the causes are indeed causes, ensuring that solutions address the real problem Define, quantify and measure the impact of a given problem Understand the quality objectives Create a solution to a given problemQuality Circle groups generally address issues such as improving safety, improving productdesign, and improving manufacturing process. Because Quality Circle groups remain intactfrom project to project they have the advantage of consistency, though they retain theoption to call in expertise or request training when needed.Techniques used by a Quality Circle group will usually consist of process capability flowcharts, lot sampling, brainstorming, cause and effect analysis, reverse engineering, valueanalysis, and Pareto analysis.Japanese Quality Circles demonstrated the effectiveness of worker teams in identifying andsolving process problems in their own work areas. However the more serious qualityproblems from non-manufacturing organisations often arise in activities that span morethan one department or function.A Quality CircleA Quality Circle is a volunteer group composed of workers (or even students) who meet todiscuss workplace improvement, and make presentations to management with their ideas,especially relating to quality of output in order to improve the performance of theorganization, and motivate and enrich the work of employees. Typical topics are improvingoccupational safety and health, improving product design, and improvement inmanufacturing process.The ideal size of a quality circle is from eight to ten members.Quality circles have the advantage of continuity; the circle remains intact from project toproject. (For a comparison to Quality Improvement Teams see Jurans Quality by Design.Quality circles were first established in Japan in 1962, and Kaoru Ishikawa has been creditedwith their creation. The movement in Japan was coordinated by the Japanese Union ofScientists and Engineers (JUSE).The use of quality circles then spread beyond Japan. Quality circles have been implemented
  18. 18. even in educational sectors in India and QCFI (Quality Circle Forum of India) is promotingsuch activities.There are different quality circle tools, namely: The Ishikawa diagram - which shows hierarchies of causes contributing to a problem The Pareto Chart - which analyses different causes by frequency to illustrate the vital cause The PDCA-Deming wheel - Plan, Do, Check, Act, as described by W. Edwards DemingManagement StylesManagement styles are characteristic ways of making decisions and relating tosubordinates. Management styles can be categorized into two main contrasting styles,autocratic and permissive. Management styles are also divided in the main categories ofautocratic, paternalistic, and democratic. This idea was further developed by RobertTannenbaum and Warren H. Schmidt (1958, 1973), who argued that the style of leadershipis dependent upon the prevailing circumstance; therefore leaders should exercise a range ofmanagement styles and should deploy them as appropriate.People - Management stylesWhat makes a good leader or manager? For many it is someone who can inspire and get themost from their staff.There are many qualities that are needed to be a good leader or manager. • Be able to think creatively to provide a vision for the company and solve problems • Be calm under pressure and make clear decisions • Possess excellent two-way communication skills • Have the desire to achieve great things • Be well informed and knowledgeable about matters relating to the business • Possess an air of authorityDo you have to be born with the correct qualities or can you be taught to be a good leader?It is most likely that well-known leaders or managers (Winston Churchill, Richard Branson orAlex Ferguson?) are successful due to a combination of personal characteristics and goodtraining.Managers deal with their employees in different ways. Some are strict with their staff andlike to be in complete control, whilst others are more relaxed and allow workers thefreedom to run their own working lives (just like the different approaches you may see inteachers!). Whatever approach is predominately used it will be vital to the success of thebusiness. “An organisation is only as good as the person running it”.There are three main categories of leadership styles: autocratic, paternalistic anddemocratic.Autocratic (or authoritarian) managers like to make all the important decisions and closelysupervise and control workers. Managers do not trust workers and simply give orders (one-
  19. 19. way communication) that they expect to be obeyed. This approach derives from the viewsof Taylor as to how to motivate workers and relates to McGregor’s theory X view ofworkers. This approach has limitations (as highlighted by other motivational theorists suchas Mayo and Herzberg) but it can be effective in certain situations. For example: • When quick decisions are needed in a company (e.g. in a time of crises) • When controlling large numbers of low skilled workers.Paternalistic managers give more attention to the social needs and views of their workers.Managers are interested in how happy workers feel and in many ways they act as a fatherfigure (pater means father in Latin). They consult employees over issues and listen to theirfeedback or opinions. The manager will however make the actual decisions (in the bestinterests of the workers) as they believe the staffs still needs direction and in this way it isstill somewhat of an autocratic approach. The style is closely linked with Mayo’s HumanRelation view of motivation and also the social needs of Maslow.A democratic style of management will put trust in employees and encourage them to makedecisions. They will delegate to them the authority to do this (empowerment) and listen totheir advice. This requires good two-way communication and often involves democraticdiscussion groups, which can offer useful suggestions and ideas. Managers must be willingto encourage leadership skills in subordinates.The ultimate democratic system occurs when decisions are made based on the majorityview of all workers. However, this is not feasible for the majority of decisions taken by abusiness- indeed one of the criticisms of this style is that it can take longer to reach adecision. This style has close links with Herzberg’s motivators and Maslow’s higher orderskills and also applies to McGregor’s theory Y view of workers.Summary of management styles Description Advantages Disadvantages Autocratic Senior managers take Quick decision making No two-way all the important Effective when communication so can decisions with no employing many low be de-motivating involvement from skilled workers Creates “them and us” workers attitude between managers and workersPaternalistic Managers make More two-way Slows down decision decisions in best communication so making interests of workers motivating Still quite a dictatorial after consultation Workers feel their social or autocratic style of needs are being met managementDemocratic Workers allowed to Authority is delegated to Mistakes or errors can make own decisions. workers which is be made if workers are Some businesses run motivating not skilled or on the basis of majority Useful when complex experienced enough decisions decisions are required that need specialist skills
  20. 20. AutocraticAn Autocratic style means that the manager makes decisions unilaterally, and without muchregard for subordinates. As a result, decisions will reflect the opinions and personality of themanager; this in turn can project an image of a confident, well managed business. On theother hand, strong and competent subordinates may chafe because of limits on decision-making freedom, the organization will get limited initiatives from those "on the front lines",and turnover among the best subordinates will be higher.There are two types of autocratic leaders in this world: 1. the Directive Autocrat makes decisions unilaterally and closely supervises subordinates; 2. the Permissive Autocrat makes decisions unilaterally, but gives subordinates latitude in carrying out their workConsultativeA more paternalistic form is also essentially dictatorial; however, decisions take into accountthe best interests of the employees as well as the business. Communication is againgenerally downward, but feedback to the management is encouraged to maintain morale.This style can be highly advantageous when it engenders loyalty from the employees,leading to a lower labour turnover, thanks to the emphasis on social needs. On the otherhand for an autocratic management style the lack of worker motivation can be typical if noloyal connection is established between the manager and the people who are managed. Itshares disadvantages with an autocratic style, such as employees becoming dependent onthe leader.A good example of this would be David Brent or Michael Scott running the fictional businessin the television shows The Office.PersuasiveA persuasive styled manager shares some characteristics with that of an autocraticmanager. The most important aspect of a persuasive manager is that they maintain controlover the entire decision making process. The most prominent difference here is that thepersuasive manager will spend more time working with their subordinates in order to try toconvince them of the benefits of the decision that have been made. A persuasive manager ismore aware of their employees, but it wouldnt be correct to say that the persuasive style ofmanagement is more inclusive of employees.Just as there are occasions where the use of an autocratic style of management would beappropriate, there are also instances where a company will benefit from a persuasive styleof management. An example of this being, if a task that needs to be completed but it isslightly complicated it may be necessary to rely upon input from an expert. In such asituation as this, the expert may take to time to explain to others why events are happeningin the order in which they will occur, but ultimately the way in which things are done will bethat persons responsibility. In those circumstances, they are highly unlikely to delegate anypart of the decision making process to those who are lower down in the hierarchy.
  21. 21. Advantages to a persuasive style of management: 1. Decisions are able to be made quickly. This is also true with the autocratic style of management; persuasive managers are able to make decisions very quickly because they dont use a consultation process with employees. 2. The employees will have a clear understanding of whats likely to happen and what their role will be. As all of the decisions are made centrally and the communication is entirely top-down, employees will be able to perform their tasks in an efficient manner. 3. Difficult or tedious situations are able to be managed effectively. Just as an autocratic manager will be able to navigate through challenging situations, a persuasive manager will be in a position which allows them to steer an organization towards a challenging outcome as well.Disadvantages to a persuasive style of management: 1. There may not be enough or even an entire lack of support from employees for management. Seeing as how the employees will have no input into the decision making process. They also may not trust the decisions that are made. 2. A system that has no input from employees minimises access to one of the most valuable resources that a business has; the ideas of the people who are working on the "front line". As a result, employees will show no initiative, which can reduce productivity. 3. One-way communication models are unlikely to be effective when compared to Two-way communication.DemocraticIn a democratic style, the manager allows the employees to take part in decision-making:therefore everything is agreed upon by the majority. The communication is extensive inboth directions (from employees to leaders and vice-versa). This style can be particularlyuseful when complex decisions need to be made that require a range of specialist skills: forexample, when a new ICT system needs to be put in place and the upper management ofthe business is computer-illiterate. From the overall businesss point of view, job satisfactionand quality of work will improve, and participatory contributions from subordinates will bemuch higher. However, the decision-making process could be severely slowed down unlessdecision processes are streamlined. The need for consensus may avoid taking the bestdecision for the business unless it is managed or limited. As with the autocratic leaders,democratic leaders are also two types i.e. permissive and directive.Laissez-faireIn a laissez-faire leadership style, the leaders role is as a mentor and stimulator, and staffsmanage their own areas of the business. Thus it is only successful with 1] inspirationalleadership that understands the different areas of initiative being taken by subordinates,and 2] strong and creative subordinates who share the same vision throughout theorganization. It is a style that is best for strong, entrepreneurial subordinates in anorganization with dynamic growth in multiple directions. This style brings out the best inhighly professional and creative groups of employees; however in cases where the leaderdoes not have broad expertise and ability to communicate a strong vision, it can degenerateinto disparate and conflicting activities. Lacking a strong maestro as leader, there is a risk inboth focus and direction.
  22. 22. MBWAManagement by Walking Around (MBWA) is a classic technique used by managers who areproactive listeners. Managers using this style gather as much information as possible so thata challenging situation doesnt turn into a bigger problem. Listening carefully to employeessuggestions and concerns will help evade potential crises. MBWA benefits managers byproviding unfiltered, real-time information about processes and policies that is often left outof formal communication channels. By walking around, management gets an idea of thelevel of morale in the organization and can offer help if there is trouble.A potential concern of MBWA is that the manager will second-guess employees decisions.The manager must maintain his or her role as coach and counsellor, not director. By leavingdecision-making responsibilities with the employees, managers can be assured of the fastestpossible response time.One downside is that MBWA poses the threat of the manager losing authority as theemployees feel that they can run the business.PaternalisticAn autocratic style means that the manager makes decisions unilaterally, and without muchregard for subordinates. As a result, decisions will reflect the opinions and personality of themanager; this in turn can project an image of a confident, well managed business. On theother hand, strong and competent subordinates may chafe because of limits on decision-making freedom, the organization will get limited initiatives from those "on the front lines",and turnover among the best subordinates will be higher.Asian paternalisticLike consultative and easily confused with autocratic and dictatorial; however, decisionstake into account the best interests of the employees as well as the business, often more sothan interests of the individual manager. Communication is downward. Feedback andquestioning authority are absent as respect to superiors and group harmony are centralcharacteristics within the culture. This style demands loyalty from the employees, oftenmore than to societies rules in general. Staff turnover is discouraged and rare. Workermotivation is the status quo with East Asians often having the worlds highest numbers ofhours worked per week, due to a sense of family duty with the manager being the father,and staff being obedient children, all striving for harmony, and other related Confuciancharacteristics. Most aspects of work are done with a highly collectivist orientation. It sharesdisadvantages with an autocratic style, such as employees becoming dependent on theleader, and related issues with seniority based systems.An Asian Paternalistic style means that the manager makes decisions from a solidunderstanding of what is desired and best by both consumers and staff. Managers mustappear confident, with all answers, and promote growth with harmony, often even if hidingharmful or sad news is required.Management Skills
  23. 23. Basic roles • Interpersonal: roles that involve coordination and interaction with employees, networking. • Informational: roles that involve handling, sharing, and analysing information. • Decisional: roles that require decision-making.Management skills • Political: used to build a power base and establish connections. • Conceptual: used to analyse complex situations. • Interpersonal: used to communicate, motivate, mentor and delegate. • Diagnostic: the ability to visualize most appropriate response to a situation.Formation of the business policy • The mission of the business is the most obvious purpose—which may be, for example, to make soap. • The vision of the business reflects its aspirations and specifies its intended direction or future destination. • The objectives of the business refer to the ends or activity at which a certain task is aimed. • The businesss policy is a guide that stipulates rules, regulations and objectives, and may be used in the managers decision-making. It must be flexible and easily interpreted and understood by all employees. • The businesss strategy refers to the coordinated plan of action that it is going to take, as well as the resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers, stipulating how they ought to allocate and utilize the factors of production to the businesss advantage. Initially, it could help the managers decide on what type of business they want to form.Implementation of policies and strategies • All policies and strategies must be discussed with all managerial personnel and staff. • Managers must understand where and how they can implement their policies and strategies. • A plan of action must be devised for each department. • Policies and strategies must be reviewed regularly. • Contingency plans must be devised in case the environment changes. • Assessments of progress ought to be carried out regularly by top-level managers. • A good environment and team spirit is required within the business. • The missions, objectives, strengths and weaknesses of each department must be analysed to determine their roles in achieving the businesss mission. • The forecasting method develops a reliable picture of the businesss future environment. • A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives. All policies must be discussed with all managerial personnel and staff that are required in the execution of any departmental policy.
  24. 24. • Organizational change is strategically achieved through the implementation of the eight-step plan of action established by John P. Kotter: Increase urgency, form a coalition, get the vision right, communicate the buy-in, empower action, create short-term wins, dont let up, and make change stick.Policies and strategies in the planning process • They give mid- and lower-level managers a good idea of the future plans for each department in an organization. • A framework is created whereby plans and decisions are made. • Mid- and lower-level management may adapt their own plans to the businesss strategic ones.Levels of managementMost organizations have three management levels: low-level, middle-level, and top-levelmanagers. These managers are classified in a hierarchy of authority, and perform differenttasks. In many organizations, the number of managers in every level resembles a pyramid.Each level is explained below in specifications of their different responsibilities and likely jobtitles.Top-level managersConsists of board of directors, president, vice-president, CEOs, etc. They are responsible forcontrolling and overseeing the entire organization. They develop goals, strategic plans,company policies, and make decisions on the direction of the business. In addition, top-levelmanagers play a significant role in the mobilization of outside resources and areaccountable to the shareholders and general public.According to Lawrence S. Kleiman, the following skills are needed at the top manageriallevel. • Broadened understanding of how: competition, world economies, politics, and social trends effect organizational effectiveness.Middle-level managersConsist of general managers, branch managers and department managers. They areaccountable to the top management for their departments function. They devote moretime to organizational and directional functions. Their roles can be emphasized as executingorganizational plans in conformance with the companys policies and the objectives of thetop management, they define and discuss information and policies from top management tolower management, and most importantly they inspire and provide guidance to lower levelmanagers towards better performance. Some of their functions are as follows: • Designing and implementing effective group and intergroup work and information systems. • Defining and monitoring group-level performance indicators. • Diagnosing and resolving problems within and among work groups. • Designing and implementing reward systems supporting cooperative behaviour.Low-level managersConsist of supervisors, section leads, foremen, etc. They focus on controlling and directing.They usually have the responsibility of assigning employees tasks, guiding and supervising
  25. 25. employees on day-to-day activities, ensuring quality and quantity production, makingrecommendations, suggestions, and up channelling employee problems, etc. First-levelmanagers are role models for employees that provide: • Basic supervision. • Motivation. • Career planning. • Performance feedback. • supervising the staffs.To be successful, there are many skills a manager needs to master. I adapted KammyHatnes pyramid structure to show the increasingly difficult management skills you mustmaster at each level and to also display how these management skills build on each other tohelp you achieve success in your management career. The result is the Management SkillsPyramid shown here. Each level of the Management Skills Pyramid is listed below and isdiscussed in more detail on the linked pages.Level 1 Management SkillsLevel 1 of the Management Skills Pyramid shows the basic skills any beginning managermust master. It is the foundation of the management skills pyramid, which shows the skills amanager must master to be successful and shows how these management skills build oneach other toward success.Basic Management SkillsThere are four basic management skills anyone must master to have any success in amanagement job. These four basic skills are plan, organize, direct, and control and arediscussed separately in detail below.PlanPlanning is the first and most important step in any management task. It also is the mostoften overlooked or purposely skipped step. While the amount of planning and the detailrequired will vary from task to task, to skip this task is to invite sure disaster except by sureblind luck. Thats what gives us the adage of the 6 Ps of planning (or 7 Ps depending on howyou count).Level 2 Management SkillsLevel 2 is the team building skills any developing manager must master. It is the next level ofthe management skills pyramid, which shows the skills a manager must master to besuccessful and shows how these management skills build on each other toward success.Team Management SkillsThere are three categories of team management skills anyone must master to have anysuccess in a management job. These are motivation, training and coaching, and employeeinvolvement and are discussed separately in detail below.MotivationThe most fundamental team management skill you must master is motivation of your teamand of the individual members of the team. (We will discuss self-motivation later in thisseries.) You cant accomplish your goals as a manager unless your team is motivated to
  26. 26. perform, to produce, to deliver the results you need. Motivating each of the individuals onyour team requires recognition on your part that each team members motivation needs aredifferent. And motivating the team requires a different approach from motivating the teammembers.Motivating Individuals • The Lesson of the Red Horse What does a nine-year old drawing animals on scraps of paper have to do with motivation? A lot really. The Lesson of the Red Horse stresses the importance of employee motivation and its effect on performance. • Larry Doesnt Work Here Anymore For employee retention employee motivation is key. Putting each person in the right job is a critical part of that. See what a difference you can make by using your people in the spots where they can do their best. • How To Give Positive Feedback Another key to successful motivation is the way you give feedback. You have to provide feedback to your employees and they have a right to expect it. Try to focus first on giving positive feedback and resort to negative feedback only as a last resort. • The Coffee Cup One of your best management tools may be a coffee cup. The simple act of taking someone to coffee gives you an opportunity to sit with them, listen, and learn. That kind of a conversation can be powerful employee motivation.Training and CoachingIt is unlikely that you will ever manage a team where everyone is adequately trained. It iseven more unlikely that you will have a team that never needs coaching. You need to beable to identify the training needs of your team members and be able to get that training forthem. And you need to coach all the members of your team, even the well trained ones, tohelp them achieve their best levels of performance.Training • New Employee Training Regardless whether you spend a few hours or a few months orienting new employees, there is a cost. New Employee Orientation (NEO) can save you money in the long run if you take the time to properly train new people. • Cross Training Employees Cross training is training someone in another activity that is related to their current work. It is good for managers, because it provides you more flexibility, which saves money in labour costs. It is good for the employees too. It lets them learn new skills, makes them more valuable, and can combat worker boredom. • Learn at Lunch Learn at Lunch, is a program to help employees grow and advance. Learn how to set one up so both the company and the employees benefit from it.Coaching • Employee Coaching: When To Step In You have to let people make mistakes if they are going to learn. The trick is knowing when to step in and when to hang back and let them try on their own.
  27. 27. • What Professional Baseball Can Teach Professional Managers The same factors apply in baseball as in business. Generally the teams with the best managers make it to the playoffs and to the World Series. In business, too, it is usually the best managed companies that succeed. Are you the best managed company in your market? • Performance Management Instead of Layoffs It costs too much to leave an incompetent manager in place. If the employee wont request a return to a level at which they were competent, the company must take action. Specific training can be part of this. • Coaching, An Essential Management Skill One of the most important things we do as managers is coach our subordinates. One of the most important skills you can develop as a manager is that of a good coach. Here are some more resources that can help you improve your skill.Employee InvolvementAll the training we do as managers, all the motivation we attempt, all that positive feedbackand morale building are all aimed at one thing. Increasing employee involvement. If youremployees are not involved, if they just come to work to warm a seat, you wont get theirbest performance. If you dont get their best, everything they do will cost you more than itshould have. It might be in a high error or rework rate. It might be in an innovative new ideathat they didnt share with you. Whatever the issue, it will cost you.So how do you get your employees engaged and committed? Here are the basics. • Inspire and Admire One of the biggest mistake a manager can make is to ignore their employees. The same attention you paid to their work assignments, to their satisfaction levels, to their sense of being part of a great team needs to continue for as long as they are in your group. As soon as you start to slack off, their satisfaction and motivation decreases and you lose them. • How to Innovate in Business Give your employees the freedom to think for themselves. Dont be a micro- manager. If they have a little breathing room they will be more innovative and more committed to your goals. • Employee Retention Tips The same things that reduce turnover and increase employee retention are the things that increase employee involvement. Give them clear goals and honest feedback. • How To Give Positive Feedback For some reason, we are much better at telling people when they do something wrong than when they do something right. Yet this positive feedback is critical to keeping employees engaged. It has to be deserved and it has to be honest, but dont omit it. • Delegate, Dont Just Dump Delegation is another way to increase employee engagement. When you actively delegate a task to an employee they have an opportunity to grow and tackle new challenges. It stimulates them and makes them think beyond just punching a time clock. Just be sure you actually delegate properly and dont just dump more work on them.
  28. 28. • Tip: Get your people involved Participative management is key.Level Three Management SkillsLevel 3 is where the developing manager must master personal development. It is the nextlevel of the management skills pyramid, which shows the skills a manager must master to besuccessful and shows how these management skills build on each other toward success.Personal Management SkillsThere are two areas of personal management skills you must master to be successful as amanager. These are self-management and time management. We discuss these in detailbelow.Self-managementBy this point in your development as a manager, you are good at assigning work to youremployees and coaching them through the difficulties so they can produce their best work.You know how to motivate them and discipline them. You have built them into a team. Butare you as good at managing yourself as you are at managing others? Do you stay focusedon the tasks that are truly important and not just urgent? Do you do your job the best youare able? • Take Ownership of Your Job Every job you do has your "signature" on it. Do it the best you can; do it the best it can be done. That is how you succeed. • Scruples Are a Good Thing There is a reason for that little voice in your head. Listen to it. Dont just do things right, but also do the right thing. You will do a better job as a manager if you dont have to waste time remembering what lies you told to whom. • Paretos Principle - The 80-20 Rule It is important that as a manager you focus on what is truly important, not just what appears urgent. The 80-20 Rule can help you do that. • Ten Things to Do Today to Be a Better Manager Here are ten areas you can focus on to improve as a manager.Time ManagementIf you have learned nothing else in your management career, you have learned that there isnever enough time to do all the things you feel need to get done. That is why it is critical toyour success as a manager that you be skilled at managing time. • A To Do List That Works You cant do everything so use a To Do list to keep you focused on the important ones. It can be simple or complicated, but develop one that works for you - or use mine. • Dont Multi-task When You Can Use Chunking Human beings cant really multi-task. We can do different tasks in rapid succession, but not at the same time. Chunking lets you spend less time in "restarting" and more time getting things done. It takes practice to make it work, but it is well worth the effort. • Meeting Management Managers spend a lot of time in meetings and a lot of time running meetings. You
  29. 29. have less control over meetings you attend than over the one you set up. Make sure you get the most out of your meetings by following a few simple tips. • Managing Projects: Time and Schedule Time management also is a critically important skill for any successful project manager. Project Managers who succeed in meeting their project schedule have a good chance of staying within their project budget.Thirteen Skills Needed to Become a GoodManager 1. Communication There’s a lot of communication when you’re a manager. You have to communicate with each of your employees. You have to communicate “sideways” with your co- workers and customers. And you have to communicate upwards with your own manager or executive. You need some substance in the communication, of course — you need to have something worthy of being communicated. But substance isn’t enough — if you know what you’re doing and can’t properly communicate it to anyone else, then you’ll never be a good manager. 2. Listening Skills This is a part of communication, but I want to single it out because it’s so important. Some managers get so impressed with themselves that they spend much more of their time telling people things than they spend listening. But no matter how high you go in the management hierarchy, you need to be able to listen. It’s the only way you’re really going to find out what’s going on in your organization, and it’s the only way that you’ll ever learn to be a better manager. 3. A Commitment to the Truth You’ll find that the higher you are in the management hierarchy, the less likely you are to be in touch with reality. Managers get a lot of brown-nosing, and people tend to sugar-coat the news and tell managers what they want to hear. The only way you’ll get the truth is if you insist on it. Listen to what people tell you, and ask questions to probe for the truth. Develop information sources outside of the chain of command and regularly listen to those sources as well. Make sure you know the truth — even if it’s not good news. 4. Empathy This is the softer side of listening and truth. You should be able to understand how people feel, why they feel that way, and what you can do to make them feel differently. Empathy is especially important when you’re dealing with your customers. And whether you think so or not, you’ll always have customers. Customers are the people who derive benefit from the work you do. If no one derives benefit from your work, then what’s the point of keeping your organization around? 5. Persuasion Put all four of the preceding skills together, because you’ll need them when you try to persuade someone to do something you want done. You could describe this as “selling” but it’s more general. Whether you’re trying to convince your employees to
  30. 30. give you a better effort, your boss to give you a bigger budget, or your customers to agree to something you want to do for them, your persuasion skills will be strained to their limits.6. Leadership Leadership is a specialized form of persuasion focused on getting other people to follow you in the direction you want to go. It’s assumed that the leader will march into battle at the head of the army, so be prepared to make the same sacrifices you’re asking your employees to make.7. Focus The key to successful leadership is focus. You can’t lead in a hundred different directions at once, so setting an effective leadership direction depends on your decision not to lead in the other directions. Focusing light rays means concentrating the light energy on one spot. Focusing effort means picking the most important thing to do and then concentrating your team’s effort on doing it.8. Division of Work This is the ability to break down large tasks into sub-tasks that can be assigned to individual employees. It’s a tricky skill — maybe more an art than a science, almost like cutting a diamond. Ideally you want to figure out how to accomplish a large objective by dividing the work up into manageable chunks. The people working on each chunk should be as autonomous as possible so that the tasks don’t get bogged down in endless discussion and debate. You have to pay careful attention to the interdependencies among the chunks. And you have to carefully assess each employee’s strengths, weaknesses and interests so that you can assign the best set of sub-tasks to each employee.9. Obstacle Removal Inevitably, problems will occur. Your ability to solve them is critical to the on-going success of your organization. Part of your job is to remove the obstacles that are preventing your employees from doing their best.10. Heat Absorption Not all problems can be solved. When upper management complains about certain things that can’t be avoided (e.g., an unavoidable delay in a project deliverable), it’s your job to take the heat. But what’s more important, it’s your job to absorb the heat to keep it from reaching your employees. It’s the manager’s responsibility to meet objectives. If the objectives aren’t being met, then it’s the manager’s responsibility to: o Make sure that upper management knows about the problem as early as possible. o Take all possible steps to solve the problem with the resources you’ve been given. o Suggest alternatives to management that will either solve the problem or minimize it. These other alternatives may propose the use of additional resources beyond the current budget, or they may propose a change in the objective that’s more achievable. o Keep the problem from affecting the performance or morale of your employees.11. Uncertainty Removal When higher management can’t give you consistent direction in a certain area, it’s
  31. 31. up to you to shield your employees from the confusion, remove the apparent uncertainty, and lead your employees in a consistent direction until there’s a good reason to change that direction. 12. Project Management This is a more advanced skill that formalizes some of attributes 7 – 11. Although both “Management” and “Project Management” contain the word “management,” they aren’t the same thing. Management implies a focus on people, while Project Management implies a focus on the project objective. You can be a Manager and a Project Manager, or you can be a Manager without being a Project Manager. You can also be a Project Manager without being a Manager (in which case you don’t have people reporting to you — you just deal with overseeing the project-specific tasks). 13. Administrative and Financial Skills Most managers have a budget, and you’ll have to be able to set the budget and then manage to it. You’ll also have to deal with hiring, firing, rewarding good employee performance, dealing with unacceptable performance from some employees, and generally making sure that your employees have the environment and tools they need to do their work. It’s ironic that this is skill number 13 (an unlucky number in some cultures), because a lot of managers hate this part of the job the most. But if you’re good at budgeting, you’ll find it much easier to do the things you want to do. And hiring and dealing with employees on a day-to-day basis is one of the key skills to give you the best, happiest and most productive employees.ConclusionThis article explains some of the things you’ll need to learn before you become a successfulmanager. You can probably become a manager without having all of these skills, but you willneed all of them to be really successful and to get promoted to higher levels ofmanagement.For every one of these skills, there are various levels of performance. No one expects a newmanager to be superior at every one of these skills, but you should be aware of all of them,and you should do everything you can to learn more about each skill. Some of that learningwill come through education (like reading the articles on this web site — you might want tosubscribe). But much of the learning will come through experience — trial and error.Just learn as much as you can about each skill, take nothing for granted, and focus on doingthe very best that you can do. Learn from your mistakes and try not to repeat them. And askfor feedback — in many cases you won’t know what you could do better unless someonetells you.Five Personal Management SkillsWhy is it that we allow the everyday hustle to impede our progress in becoming theultimate warrior of our professional lives through successful personal management? Somepeople even allow personal management to take a backseat to the results produced by theiractions, claiming their success as evidence contrary to their need for better personalmanagement techniques. What these people fail to realize is by failing to practice personalmanagement skills they are failing to become elite and productive ninjas of efficiency intheir work life. All that is required is the honing and polishing of five simple personal
  32. 32. management skills for being awesome! 1. Time Management and Planning Skills“It is vain to do with more what can be done with less” – William of Occam, the originator of Occam’s razorPareto’s law states that 80 % of our output is generated by 20 % of our efforts. Imagine ifyou could work less and gain more ground weekly than you have been able to make up inthe past few years. Time management is the key to this personal management skill. All ofthe awesome and productive workers that I have met successfully manage their time. Youcould probably work less and be much more at peace with yourself with some quality time-management training.Having time management skills is simply having the ability to recognize and solve timemanagement problems. It is as the old adage says, to never put off for later what can bedone right now. You can develop this personal management skill by keeping a calendar andbeginning to schedule everything. You heard right, everything. This includes scheduling yourfree time and the time it takes to get from one meeting to another.Think about what happens when your scheduled meeting ends at 3:00pm and your nextappointment is scheduled for 3:00pm. You are either going to leave the first meeting earlyor you will be late to your next appointment. You failed to schedule travel time between themeetings. When you take the time to plan your day’s activities and practice the discipline offollowing your daily plans you will develop the ability to start and finish projects when youare supposed to. You will also become much more adept at estimating how long a project ora task will take to accomplish. In addition, whatever you do, do not procrastinate.Procrastination is the number one offender against your ability to manage time. 2. Financial Management Skills“It is not how much you make that counts but how much money you keep” – Robert Kiyosaki, investor, businessman, and author of best-seller Rich Dad Poor DadMoney management is the wall upon which your personal management skills sit lopsidedlylike humpty dumpty. On one side, through the disciplines of successful financialmanagement comes successful personal management as well. There is no need for all theking’s horses to put anything back together. On the other side, humpty falls to the groundand the rest of his personal management skills shatter into the pieces of a broken shell. Thereason being is the discipline required for successful financial management is powerfulenough to bleed its way into just about every aspect of your life. When you can assertyourself over your financial situation, you can assert yourself to the realization of your goals.Personal management becomes an even greater aspect of your life.A 27 year old woman once stated that she was going to become a millionaire. You mightscoff at such a remark but after ten years, she had earned ten million dollars and had given3 million dollars away to charities. The woman was determined to manage her financial
  33. 33. status in a way that brought great wealth. She used personal management skills to achieveher goal.You can perfect your financial management skills by trying a few of the following: • Create a budget and tailor your spending to meet its requirements. • Save every receipt from every purchase that you make in one month and find out how much money you’re really spending. You might be surprised to find out where your money is actually going. • Create income and expense reports that allow you to see the bigger picture of your financial situation. • Manage your personal finances as if you were managing a business’s finances.When you are on the road to successfully managing your financial situation, you are growingexponentially towards becoming awesome. 3. Communication Skills“The way we communicate with others and with ourselves ultimately determines the quality of our lives” – Anthony RobbinsUntil you know your voice and can confidently share what is on your mind, personalmanagement will not become a larger part of your affairs. Knowing your own voice givesyou the ability to carry a healthy inner dialog, which then confidently guides you towardsyour goals. With great communication skills comes the power to influence and encourageothers and yourself. You won’t be able to practice personal management until you’re able tolisten to that inner dialog and understand where you are headed. A few tricks to improvingyour communication skills are: • Practice active listening. Try to look the person speaking in the eyes and think only about the words that they are speaking. • Speak slowly and ask questions to test whether the listening party understands what is being communicated. • When writing, always write a first draft and edit the draft into a final copy after asking whether the purpose of your communication is clear and understandable. • When you find yourself caught up in your own thoughts, try to relax and “Watch” the thinker thinking those thoughts. You are not your thoughts. You are greater than your thinking. 4. Organizational Skills“Organizational effectiveness does not lie in that narrow minded concept called rationality. It lies in the blend of clearheaded logic and powerful intuition.” – Arialdi MininoPersonal management would be incomplete without the ability to stay organized. Wecannot accomplish any goals without the resources required to get the job done.Some people have desks and drawers cluttered with papers and junk. They feel they needthese things “just in case”. However, they are probably wasting more time trying to find thethings they need than getting the job done anyway. You can greatly increase your personalmanagement skills by getting organized. The best part is you already have the skills required

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