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Introducing Management
This page intentionally left blank
Introducing Management
A Development Guide

Kate Williams

Third edition

AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD

PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO
Butterworth-Heinemann is an imprint of Elsevier
Butterworth-Heinemann is an imprint of Elsevier
Linacre House, Jordan Hill, Oxford OX2 8DP
30 Corporate Drive, Suite 400, Burlington, MA 01803, USA

First edition 1999

Second edition 2004
Third edition 2006

Copyright © 1999, Bob Johnson. All rights reserved.

Copyright © 2004, 2006, Kate Williams. Published by Elsevier Ltd. All
rights reserved

The right of Kate Williams to be identified as the author of this

work has been asserted in accordance with the Copyright, Designs
and Patents Act 1988

No part of this publication may be reproduced, stored in a retrieval system

or transmitted in any form or by any means electronic, mechanical,
photocopying, recording or otherwise without the prior written
permission of the publisher

Permissions may be sought directly from Elsevier’s Science & Technology

Rights Department in Oxford, UK: phone (⫹44) (0) 1865 843830;
fax (⫹44) (0) 1865 853333; email: [email protected]. Alternatively
you can submit your request online by visiting the Elsevier web site at
http://elsevier.com/locate/permissions, and selecting
Obtaining permission to use Elsevier material

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloguing in Publication Data

A catalogue record for this book is available from the Library of Congress

ISBN–13: 978-0-7506-6880-4
ISBN–10: 0-7506-6880-6

For information on all Butterworth-Heinemann publications

visit our web site at http://books.elsevier.com

Typeset by Charon Tec Ltd, Chennai, India

www.charontec.com

Printed and bound in Great Britain

06 07 08 09 10 10 9 8 7 6 5 4 3 2 1
Contents

Preface vii
Learning structure ix

Section 1 Managing in Context 1

1 Achieving results 3
2 Using resources 8
3 Customer focus 16
4 Understanding the culture 25
5 Understanding the environment 34
Resource bank 45

Section 2 Providing Direction 47

6 Developing professionally 49
7 Principles of effective communication 60
8 Communicating at work 79
9 Leading and delegating 94
10 Motivating 109
11 Developing productive work relationships 118
Resource bank 124
CONTENTS

Section 3 People and Performance 127

12 Managing teams 129

13 Improving performance 141
 14 Discipline and grievance 152
15 Managing change 159
16 Solving problems and making decisions 169
17 Recruiting to the team 182
Resource bank 188

Section 4 Effective Resource Management 191

18 Managing and controlling costs and resources 193

19 Changing inputs into outputs 206
20 Information management 214
21 Financial information and management control 230
22 Preparing and using budgets 244
Resource bank 256

Section 5 Focusing on Results 257

23 Planning, organizing and controlling work 259

24 Meeting customer needs 278
25 Managing the work environment 286
26 Continuous improvement 298
Resource bank 310

Answers to ‘review your learning’ questions 311

Index 321
CONTENTS

vi
Preface

Organizations need a skilled, flexible and responsive workforce in

order to survive and thrive in today’s competitive markets. Effective
and efficient management is key to an organization’s success and
its ability to meet changing business demands.

The role of a manager is both challenging and complex and the

aim of this book is to assist new and existing managers to make
sense of their role through a greater understanding of management.
This book provides an introduction to the theories and concepts
of management and explores the primary responsibilities of a
manager.

This third edition has been fully revised and contains updated and
new material in line with the latest edition of the Occupational
Standards for management and leadership. This book is an essen-
tial resource when studying for a recognized management qualifi-
cation through, for example, the ILM, Chartered Management
Institute or an S/NVQ. You will find this book beneficial to your
learning and development as it is closely linked to the knowledge
requirements for first-line manager qualifications.

Management is essentially a practical skill and, as with the first

two editions, this book reflects this. You will find case studies and
practical examples representing different industry sectors that
enable you to apply the concepts and principles to your own work
situation.
PREFACE

We hope you find this book helpful in assisting you to make sense
of the complexities within your role. Use it as a measure of your
 own performance as you continually explore new and improved
ways of working.

Finally, I would like to thank my husband for his advice, encour-

agement and patience through the revisions of this edition.

Kate Williams
PREFACE

viii
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Learning structure

Introducing Management: a development guide has an easy-to-

follow learning structure to guide readers through their introduc-
tion to the management role.

The book is divided into five sections, as follows:

Section 1: Managing in Context starts with a brief explanation of

the work managers can expect to do and the results for which
they are responsible. It describes the way in which changes in the
wider world affect organizations and how they may impact on the
job of a manager. It explains the varying structures of organiza-
tions and the influence of culture on decision-making and methods
of working. As the title suggests, the purpose of this section is to
set the manager’s job into the context of the whole organization
and beyond. For many managers it is easy to get caught up in
the day-to-day, hour-by-hour activities and over-look what the
organization expects them to achieve in the longer term and the

LEARNING STRUCTURE
influence of external factors. Section 1 is intended to put that
right and encourages the reader to consider the bigger picture.

Section 2: Providing Direction begins by examining the skills

needed to develop as a professional manager, covering developing
self-awareness, the importance of reflection, valuing equality and
diversity, and tips for achieving work/life balance. Effective com-
munication is critical to an organization’s success, so the principles
of effective communication are explored together with different
situations at work when a high level of communication skill
is required. A manager needs to demonstrate clear direction and
 effective leadership. The section explores a range of ideas about
leadership, how the people issues of management fit within the
context of the job of management and some techniques for effect-
ive delegation. Motivation is defined, and some theories of
motivation are introduced as well as examining problems that
may be encountered in trying to motivate staff. The final chapter
looks at the importance of developing productive working
relationships.

Section 3: People and Performance – teams deliver results, and

Section 3 starts by looking at the manager’s role in building a
successful team. It examines ways to improve individual perform-
ance and how to manage under-performance through the discip-
linary process. The impact of change on organizations is discussed
as well as ideas for successfully involving people in the change
process. A range of problem-solving and decision-making tech-
niques are offered, including the important aspect of generating
and evaluating alternatives. The final chapter of the section pro-
vides an overview of the steps to be taken in recruiting new staff
to the team.

Section 4: Effective Resource Management offers advice on effect-

ive ways of managing and controlling resources, including infor-
mation and time. The transformation of inputs into outputs is
explored as well as the concept of ‘adding value’. It shows how accur-
ate, timely and relevant information is an essential basis for quality
decision-making and the financial implications of the process of
making strategic as well as operational decisions. It looks at
budgets and the controls and decisions that have to be made to
effectively manage them.
LEARNING STRUCTURE

Section 5: Focusing on Results – managers achieve results through

people and other resources. This section looks at the results man-
agers should achieve, how they can make the best use of people
and what they need to do to ensure that work achieves the desired
objectives. It stresses the importance of identifying customers,
both internal and external, and satisfying their needs and expec-
tations. Taking a fresh look at the workplace by focusing on ways
of improving design and layout is explored within the context of
the manager’s responsibilities in maintaining a healthy and safe
environment. The final chapter examines the important role the
manager has in continuous improvement.

x
Introducing Management includes the following features to assist
your learning:

Chapter Objectives
Bullet points at the beginning of each chapter serve as a
guide to the content and the learning that will be covered.

Insights
Short anecdotes about different situations a manager
may find themselves in followed by questions to generate
possible solutions.

Case Studies
These are used to bring a real-life aspect to the information
and, as with the Insights, are intended to contextualize the
reading for the learner. They are also followed by questions
which require more thinking and time.

Review Your Learning

Each chapter ends with review questions. These reinforce
and check the understanding from the chapter that

LEARNING STRUCTURE
has just been read.

Theory to Practice
These activities relate the knowledge gained back to the
workplace for the reader. This helps to contextualize the
learning and encourages the reader to reflect and improve
on their own management style and skills.

xi
 Resource Bank
Located at the end of each section, these are intended as
a bank of resources for the reader including reference
sources, additional reading and website addresses.
LEARNING STRUCTURE

xii
Section 1 Managing in Context

● What is management?
● What do managers do?
● What resources do managers have?
● Where do resources come from?
● Who are our customers?
● What do they buy?
● How does culture affect an organization’s
performance?
● What is the significance of organizational
culture to you as a manager?
● What affects an organization’s success or failure?

MANAGING IN CONTEXT
This page intentionally left blank
1 Achieving results

Chapter ● What is management?

Objectives ● What do managers do?

We begin this book by examining the role of the manager; this will
help you to have a better understanding of management, what man-
agers do and the impact effective management has on an organ-
ization. You may not necessarily have ‘manager’ in your job title. In
fact many organizations avoid the term, particularly for jobs that
have a management element at a junior level. For example, the
Civil Service typically uses the titles ‘Administrative Officer’ and
‘Executive Officer’ for such positions. Many companies call their
junior managers ‘supervisors’ or ‘team leaders’. On the other hand,
in some small firms, the Directors are also responsible for day-to-
day management.

That’s all very well but not particularly helpful without some under-
standing of what the management role involves. There are many dif-
fering views amongst writers on management, which help towards
an overall understanding.

MANAGING IN CONTEXT
Many of the early writers on management have significantly influ-
enced the way we view the management role. For example, in the
first European book on management, Henri Fayol (1916) stated
that management involved:

● Forecasting and planning

● Organization
● Command
● Control
● Co-ordination.
 E. F. L. Brech (1953) described management as:
A social process entailing responsibility for the effective and eco-
nomical planning and regulation of the operations of an enter-
prise, in fulfillment of a given purpose or task.
Koontz (1914), on the other hand, in his book Towards a Unified
Theory of Management, argued that management was:
… the art of getting things done through and with people in for-
mally organized groups.
More recent definitions include:
Management is … the organ of society specifically charged with
making resources productive.
Drucker (1954)
Deciding what should be done and then getting other people to
do it.
Stewart (1999)
Management is fundamental to the effective operation of work
organizations.
Mullins (2002)
As you can see, there is a common thread that links these views:
● Management involves making plans and decisions about the
future needs of the business
● Management is about making cost-effective use of resources
through efficient organization and control
INTRODUCING MANAGEMENT

● Management is about getting the best out of people to achieve

objectives.

Your role as a manager

It is the content of your job which makes you a manager not simply
your job title. Regardless of the title, a genuine management job
involves:
● Forecasting the future nature of the business and of your oper-
ation and the challenges (environmental factors) affecting it
● Planning the targets and objectives your operation will deliver
either in the short term (day-to-day) or in the medium to long
term, or both

4
 ● Ensuring you have the resources (people, equipment, budget,
materials) to meet your objectives
● Making cost-effective use of those resources
● Giving clear and relevant instructions to your staff
● Gaining and maintaining staff commitment to the organiza-
tion and to their work.
These activities reflect the content of a manager’s job whatever the
level. However, the balance of activities varies according to whether
we are considering a junior, middle or senior manager. Research in
America, by Rosemary Stewart, shows that junior managers are
much more involved in short-term, relatively simple, day-to-day
decisions. At higher levels, decisions take longer to make and put
into practice.
Decisions at the lower levels are often more clear cut. They usually
have to be done quickly and there is less uncertainty about the result
than at higher levels. Downsizing and streamlining across a number
of different industry sectors has led to a reduction in the number of
management levels and has pushed decision-making responsibility
and leadership roles further down the organization. Nevertheless
it is still the case that:
● First-line managers are mainly responsible for day-to-day and
hour-by-hour decisions
● Their decisions tend to be followed by immediate action which
allows an early chance to see if they have worked
● First-line management decisions usually deal with fairly straight-
forward issues where the results and effects of the decision are
obvious.
At the same time, not all decisions at a junior level are of this short-

MANAGING IN CONTEXT
term, straightforward nature. Increasingly, managers at this level
are being expected to make or suggest improvements to working
practices, the use of resources and the quality of their output and
to take responsibility for longer-term issues like staff recruitment
and customer satisfaction.
However, not all the work a manager does is truly management
work. Consider this situation:

Insight Ranjit Khan is the manager of a small neighbourhood super-

market. Each morning he comes in early to open the shop and

5
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