Principles of Management Essentials You Always Wanted To Know (Second Edition)

Introduction to Management

Management is the process of accomplishing organizational tasks and goals with and through other people with effectiveness and efficiency. The definition of management seems simplistic but the actual performance of the role of management is very complicated. In fact, management is very different from a functional specialist role and can prove to be very challenging. If you strive to succeed and grow in your industry or if you are simply very good at what you do, chances are, you will be approached to fill a management role. In order to be successful as a new manager, you cannot rely on your exceptional technical skills.

Your management toolbox should be filled with knowledge of how to get work accomplished through teams and individuals, planning and strategizing, organizing, controlling, and developing and leading a group as small as a team or as large as an organization. As a manager, you must know how to wear many hats in an organization including negotiator, advocate, mentor, communicator, counselor, conflict resolver, motivator, and so much more. This paper is designed to help you build your toolbox and know how and when to wear one of the many hats required.

Management Types

Managerial roles are typically housed inside organizations. Organizations are comprised of a group of people brought together to carry out a specific purpose whether it is a for-profit, not-for-profit or government. Organizations across the country and around the world are easily identified by the goals they have set, the structure put into place, and the people involved. An organization’s personnel can be categorized as either operatives or managers. Operatives work directly on jobs, tasks, or projects and are not responsible for overseeing the work of others. Managers are more focused on directing the activities of others.

Vertical or top down management defines the level at which an employee is functioning within the organization. Levels include top level managers, middle managers, first-line managers, and operators. The biggest challenge of vertical management is the flow of communication. Two-way communication is difficult to accomplish specifically when lower levels of the organization are trying to communicate up to the top level.

Top-level managers make decisions about where the organization is going and put into place policies that affect all members of the organization. Examples of these managers are the Chief Executive Officer (CEO), Chief Technology Officer (CTO), Chief Financial Officer (CFO), etc. This group of executives are commonly referred to as the C-suite. Some organizations include their executive vice presidents and division heads as a part of their top management team. These managers are responsible for ensuring long term success for the organization. They pay attention to internal and external environmental drivers when developing long term strategies.

Middle managers exist between the first-line and top levels of management. Examples of these managers are department heads and directors. They act as liaison between the two levels pushing down information to first-line managers and pushing up information to top-level managers. They also take the big picture strategic plans developed by the top-level managers and break it down into operational plans for the first-line managers. Middle management’s most critical role is implementing directives from the top management team and supporting first-line managers while they work with their teams to complete their day to day activities.

First-line managers direct the day to day activities of employees and are typically entry level roles. Examples of these managers are assistant manager, shift manager, supervisor, office manager, etc. These managers are the closest to the employees and their activities. They are primarily responsible for ensuring organizational plans are completed efficiently and effectively. First-line managers are important because they are usually the first to identify internal issues and problems with operations. For this reason, it is critical that they are communicating frequently with their managers.

Authority

Authority is the power or right to have others perform the tasks and activities you need them to do. Essentially, authority allows the holder to disperse the organization’s resources in a way that will best achieve organizational goals and strategies. There are three main types of authority that can be used in an organization: line, staff, and functional.

Line

Managers have the ability to give employees reporting to them (subordinates) orders or directives. These orders and directives are issued to help efficiently and effectively achieve the organization’s goals and objectives. Line authority is given to managers who are directly accountable for departments or areas within the organization to aid them in their required activities. For example, an office manager has line authority over each immediate subordinate according to the organization chart’s reporting structure.

Staff

Staff authority is the right to assist or guide those who hold line authority and other employees. Staff authority gives those responsible for performing their tasks the ability to improve effectiveness and efficiency of line employees. Line and staff employees collaborate closely to achieve increased effectiveness and efficiency. For example, supply chain managers have staff authority relative to the office manager. The supply chain manager can advise the office manager on approved items to purchase within the organization.

Functional

Subordinates can veto suggested management directives or propose specific actions based on their area of specialty when they are given functional authority. In many hospitals, physicians are given functional authority to veto management decisions and make recommendations based on their best judgement for patient care.

Chapter Summary

a) Management is the process of accomplishing organizational tasks and goals with and through other people effectively and efficiently.

b) Vertical, or top-down, management defines the level at which an employee is functioning within the organization and faces the challenge of communication flow especially when the lower level of management is trying to communicate with the top level.

c) Top-level managers make decisions about where the organization is going and put into place policies that affect all members of the organization.

d) Middle managers are liaisons between top-level and first line managers and are responsible for creating operational plans to achieve the strategic plans of the organizations.

e) First-line managers ensure that the organizational plans are completed efficiently and effectively.

f) Authority allows management to properly disperse an organization's resources to achieve goals and strategies.

g) Line authority is when a manager is assigned to a specific department. They are directly accountable for the performance of these departments.

h) Staff authority oversee those who have line authority and aid in improving efficiency and effectiveness of the line employees.

i) Functional authority gives a manager the ability to veto management directive in their area of specialty.

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Functions of Management

In the introduction, we identified management as a process. A process is a group of ongoing and interconnected actions. The management process comprises four main activities: planning, organizing, leading, and controlling. To perform as a successful manager on a day to day basis, you must understand what these functions are and how to differentiate between them.

As we go into the detail of these functions, it is important to know management functions are not always linear. As a manager, you may encounter an unplanned problem or issue. In that case, you may begin at the organizing part of the process or controlling part of the process rather than at the planning phase. As you begin to address the issue, unforeseen items will come up which will cause you to move to another part of the process. As a manager, you should be able to identify what functions to implement and ensure the integrity of the management process is maintained.

Planning

Planning is a formal process managers follow to choose goals, identify next steps, allocate resources to complete the steps, measure how successful they were in completing the steps and then revisiting plans to determine how they can improve upon the process and steps in the future. Planning includes developing overall strategies for the organization. It goes a step further than strategy development and includes regulation of a wide variety of activities in an organization.

A strategy or strategic plan affects the entire organization and is typically long-term. The strategic plan outlines where the organization is currently and where it wishes to be. Tactical plans further breakdown strategic plans into specific activities the organization needs to implement. The tactical plans detail the activities to be completed, who will be responsible for their completion, and what is needed for successful completion.

Organizing

When planning is completed, we need to determine what the best way is to implement. When organizing, you are determining the most appropriate organizational structure for the plan implementation. Examples of this structure may include organizing by departments, matrix teams, project teams, etc. This function is also used to assign authority and responsibility to appropriate teams or departments, defining resource allocation, and detailing how the tasks will be organized. Reporting relationships and decision-making structure is defined during the organizing function as well.

Leading

Leading is arguably the most important of the four management functions. The best plans cannot be executed without people to support the plan and complete the tasks. Leaders are placed in organizations to motivate employees and inspire teams to achieve their goals. Leaders create enthusiasm, communicate through all levels of the organization, encourage high performance, and create a commitment among employees to a shared vision, values, and culture. Leaders are also responsible for less popular tasks such as resolving conflicts, taking disciplinary actions, and implementing decisions that are not well supported amongst employees.

Controlling

The controlling function is often an ongoing activity and a critical one too. It is the process of