Saturday, August 22, 2009

The Science and Art of Management

The process of setting and achieving the organization’s goals through organizational resources is called management. To accomplish organizational goals, managers perform four basic functions of managerial work which are known as the four functions of management. These functions include planning, organizing, leading and controlling. These functions are highly integrated and recur throughout the organization. The four functions of management are important to all organizations, whether they are large national corporations, small family based businesses, or nonprofit organization.

Planning is the first function of management. Planning is the continuing process to set an organization’s goals missions and objectives, determining how to accomplish these goals, selecting priorities and results, identifying methods, resources, responsibilities and timeliness. Planning makes organizations adaptable to changes by identifying opportunities and avoiding problems. Planning improves the decision making process and sets the direction for the other functions of management. Planning helps the management to direct employee efforts towards group and organizational goal attainment. The planning function determines the effectiveness, efficiency and strategy of the organization .The activities in the planning process include: define mission, analyze weaknesses and strengths, identify threats and opportunities, set objectives and goals, develop operations and tactics and monitor plan. Planning is the step that is passed down to employees from the most upper management.

The second function of management is organizing. The establishment of the internal organizational structure of an organization and distribution of authority is referred to as organizing. The organizing process translates the planned steps into reality. An organizational structure is the outcome of organizing function. This structure coordinates and motivates employees to work together to achieve goals. The activities in the organizing process include: reviewing plans, list tasks, group tasks into jobs, group jobs, assign work and delegate authority and responsibilities.

The third function of management is leading. Leading is to influence people’s behavior through motivation, communication and group dynamics. Leading implies managerial activities with the aim of causing proper employee performance. Satisfactory fulfillment of this function involves finding out employee needs and creating reward systems for quality and timely work. Leading not only enables the employees achieving organization’s goal but simultaneously helps them achieving their own career objectives. Leadership involves a manager using power, influence, vision, persuasion, and communication skills. The outcome of leading function is high level motivation and commitment of employees towards organizational goals. The activities in leading process includes: determine direction, state a clear vision, building trust, and motivation, communication, managing conflict and attaining goals.

In the functional chain of management the final link is controlling which completes the circle of management cycle. Controlling is the process of establishing performance standards based on an organization’s goals, measuring performance, comparing and taking corrective actions, if necessary. The proper implementation of the plans is ensured by the controlling process. The controlling process assesses and monitors the current results and compares it with the actual plans. The outcome of controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness. The activities in the controlling process include: establish performance standards, measure actual performance, compare measured performance against established and take corrective actions.

Relation of the four functions of management to my organizationI find my organization to be typical hierarchal structure of the pyramid style: top level managers: president, vice president; middle level managers: regional director; store manager; Front line managers: department managers front end manager and employees. My job function in the pyramid is the employee at customer service.

As all these four functions are interrelated, so all the levels of the organizational structure are involved in performing these functions but the major part of each function is related to a certain level. The first function, planning is carried out by the top level managers, organizing is done by the middle managers and leading is performed by the department and front end managers. Controlling is done by all level of managers.

In conclusion, organizations success depends on the proper implementation of these four functions which are paramount for the organization’s success. Failure is guaranteed to those managers who do not devote adequate attention to all four functions. The four functions of management are useful for a Fortune 500 business all the way down to personal management of one’s own assets. Whether the CEO of a top corporation or a housewife these functions are a solid groundwork to understand and achieve the goals that need to be met.

Thursday, August 20, 2009

Alexander Hill- Just Business Book Review

Alexander Hill, Just Business Christian Ethics for the Marketplace. (Intervarsity Press: Alexander Hill 2008) Pp. x + 276 Paper $14.95.

In “Just Business” Alexander Hill explains that in order to have Christian Ethics in the Marketplace we must “behave in a manner consistent with God’s character” (p.14) To do such a thing Hill attempts to give the answer to the question “What is God like?” (p.15) Hill explains that Gods character is one of holy, just, and loving. These three characteristics of God “have direct bearing on ethical decision-making” (p.15) and accurately display Christian business ethics. Hill recognizes the idea that Business ethics are not always holy, just, and loving and often collide with the view of Christian Business ethics. “Some common responses to business fall short of a fully Christian response” (back cover) In this revised addition of Just Business, Hill finds it important to address pressing topics such as employer-employee relations, discrimination, affirmative action, and environmental damage through penetrating case studies.

Opening up the first section of this book Hill characterizes God’s primary qualities as Holy-Just-Loving. It is noted here that “a business act is ethical if it reflects Gods holy-just-loving character.” (p. 15) Hill uses the holy-just-love concept in comparison to a three legged stool with each characteristic, “like a leg on a three legged-stool, balances out the other two.” (p. 16) “Christian ethics does not involve either-or analysis- as if we could choose between holiness, justice and love- but rather a synthesis in which all three conditions must be met before an action can be considered moral.” (p.16) Using several different scenarios Hill demonstrates the usage scripture coinciding with the Holy-Just-Love theory to make ethical decisions in the market place. Here it is demonstrated that Christian ethics “acknowledges that it is difficult to be holy-just-loving, not only because of human foibles but also because worldly institutions.” (p.20) Hill starts off the second section of this book Hill proposing the question “Are the ethical standards set by holiness, justice and love too high for the marketplace?” (p. 67) Hill sums up this question by addressing what he notes as false exits. False exits consist of issues such as dual morality, law and agency. They are referred to Hill as false exits “because they deposit ultimate ethical authority in human instrumentalities- business culture, government and corporate management- rather than God’s character.” (p. 67). False exits are a way for “us” humans to morally justify our wrong doings in the market place however, it is important to pay attention to the name, these exits are false and there is quite frankly no justification of wrong doing. The importance of honesty, deception, and disclosure are also addressed in this book. It is important to use honesty in business “One ethicists has gone so far to compare dishonesty to physical assault; both rob recipients of their freedom and dignity” (p. 128) “Deception may be defined as purposefully leading others to believe something we are selves do not believe.” (p. 129) Not only does it go against Christian ethics to deceive others but there are major consequences in the business world that could result from such actions; i.e. lawsuits. “Honesty, deception, and disclosure are difficult to apply with precision in the business environment.” (p. 124). However, “Deception, if ever justifiable, should be restricted to the most narrow confines possible.” (p.150) Lastly, Hill introduces case studies on important issues such as employer-employee relations, affirmative action, discrimination, and environmental damage. Hill realizes that all of these topics are apparent in today’s business market. They should be addressed and recognized by Christians today.

Hills findings set the example of the way Christians should present themselves in business. However, it should be noted that Hill wrote this book in a “Christian point of view” and that not every member in the work force or organization will come from a Christian stand point. “The foundation of Christian ethics in business is not rules but the changeless character of God.” (p.14) “When we behave in a manner consistent with God’s character, we act ethically.” (p. 14) “Christianity has not so much been tried and found wanting, as it has been found difficult and left untried.” (p. 11) “An ethical man is a Christian holding four Aces” (p. 11). The chances of this happening is 0.0018%. What are the odds?

The Manager's Job Folklore and Fact

Managers today have various "roles" or organized sets of behaviors that identify with a position. A manager has formal authority and status which gives rise to the interpersonal roles figurehead, leader, and liaison. From interpersonal roles come informational roles and decisional roles. Of the perceived managerial roles, the leader role has always been recognized and is considered highly important.
We recognize the difference in a leader versus a manager, and what makes them effective. Today's managers spend the majority of their time with peers and subordinates rather than superiors. This is common across the board and not likely to change. Great leaders tap into the needs and fears we all share. Great managers, by contrast, perform best by discovering, developing, and celebrating what’s different about each person who works for them. While there are as many styles of management as there are managers, there is one quality that sets truly great managers apart from the rest: They discover what is unique about each person and then capitalize on it. They know and value the unique abilities and even the eccentricities of their employees, and they learn how best to integrate them into a coordinated plan of attack. (2) "Great leaders discover what is universal and capitalize on it. Their job is to rally people toward a better future. Leaders can succeed in this only when they can cut through differences of race, sex, age, nationality, and personality and, using stories and celebrating heroes, tap into those very few needs we all share. The job of a manager, meanwhile, is to turn one person’s particular talent into performance. Managers will succeed only when they can identify and deploy the differences among people, challenging each employee to excel in his or her own way. This doesn’t mean a leader can’t be a manager or vice versa. But to excel at one or both, you must be aware of the very different skills each role requires." (2)


With industrial organization, the practice of management changed radically in the early years of the 20th century but not much in the past few decades. As technology booms, we may see dramatic changes in the way human effort is mobilized and organized once again, changing the role of managers. (1) Given how little the practice of management has changed over the past several decades, it's hardly surprising that most people have a hard time imagining how management might be reinvented in the decades to come. When compared with the momentous changes we've witnessed over the past half-century in technology, lifestyles, and geopolitics, the practice of management seems to have evolved at a snail's pace. While a suddenly resurrected 1960s-era CEO would undoubtedly be amazed by the flexibility of today's real-time supply chains and the ability to provide 24/7 customer service, he or she would find many of today's management rituals little changed from those that governed corporate life a generation or two ago. Hierarchies may have gotten flatter, but they haven't disappeared. Front-line employees may be smarter and better trained, but they're still expected to line up obediently behind executive decisions. Lower-level managers are still appointed by more senior managers. Strategy still gets set at the top. And the big calls are still made by people with big titles and even bigger salaries. There may be fewer middle managers on the payroll, but those that remain are doing what managers have always done - setting budgets, assigning tasks, reviewing performance, and cajoling their subordinates to do better.
When faced with middle management decisions where innovation is key, especially in an established organization, a methodology for breakthrough management thinking is needed. While innovation can never be entirely scripted, it is possible to increase the odds of a eureka moment by assembling the right ingredients - starting with a disciplined process for unearthing and challenging the long-standing management orthodoxies that constrain creative thinking.


Today, millions of people have laptops and handheld computers -- thus spurring rapid development of wireless networks. And more than 20 million U.S. homes have broadband connections. As fast Net access takes off, it will spark altogether new ways of using the Internet that we're just beginning to imagine today. Technology hasn't settled down yet and its days of maturity may be decades away. The IT revolution may share many parallels with previous transformative technologies such as railroads and electricity, but it differs in one key way: The underlying technologies not only aren't slowing down, they're accelerating. Computer-chip performance keeps doubling every 18 months, and disk-drive capacity and Internet-connection speeds are improving even faster. That's spurring new products, from MP3 and DVD players to Web services for corporations, that are disrupting industries from entertainment to health care. Says Intel Corp. Chairman Andrew S. Grove, who has worked in tech for more than 40 years: "The rate of change in technology is as much today as any time in my experience."
This constant renewal is the essence of technology. It was in the last big tech downturn, in 1985-86, that some of today's titans got rolling -- Dell, for one. Today, Dell dominates PCs, with sales having risen 14% last year, to $35.4 billion. Founder Michael S. Dell's view today? "There's no shortage of new ideas and new technology coming. The evolution of technology is showing no signs of maturing whatsoever." The industry may well require more steady leadership in the difficult years to come. But for tech to remain a vital part of the economy, its leaders must make sure they don't slow down as they grow up. (3) In most Walgreens stores, each employee “owns” one aisle, where she is responsible not only for serving customers but also for facing the merchandise, keeping the aisle clean and orderly, tagging items with a Telxon gun, and conducting all resets and revisions. This arrangement is simple and efficient, and it affords each employee a sense of personal responsibility.

BIBLIOGRAPHY

1. Reprinted by permission of Harvard Business School Press. Excerpted from The Future of Management by Gary Hamel (October 2007, Harvard Business School Press). Copyright © 2007 Gary Hamel.

2. Harvard Business Review What Great Managers Do march 2005 by Marcus Buckingham

Robert D. Hof Contributing: Wendy Zellner and Andrew Park in Dallas, Jay Greene in Seattle, and Jim Kerstetter in San Mateo, Calif. THE FUTURE OF TECH -- THE BIG PICTURE Why Tech Will Bloom Again Sure, parts of the industry have withered. But that's the way tech works, and new fruit is on the way Aug 25, 2003)