The profile of an effective manager icon

The profile of an effective manager



НазваниеThe profile of an effective manager
Дата конвертации30.07.2012
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The profile of an effective manager


The managerManagers work in an organization. Therefore, before we can identify whomanagers are, it is important to clarify the term organization. RobbinsS.P. (1991) defines an organization as: “a systematic arrangement of peopleto accomplish some specific purpose”. We can divide organizational membersinto two categories[1]: operatives or managers. Managers differ fromoperatives, by the fact that they direct the activities of others.There are two big classifications of managers[2]: the horizontalclassification only looks at the responsibilities. We can distinguish thefunctional manager and the general manager. The functional manager isresponsible for a whole of similar activities, for example, financialdirector, commercial director… While the general manager is responsible fordifferent functional areas, he is often concentrated on one businessactivity and acts as a product manager or a division manager. In thevertical classification, we need to differentiate first-line managers,middle managers, and top managers. The difference between these threegroups is based on the statute of subordinates.Furthermore, we should pay attention to the difference between a successfuland an effective manager. As Luthans F. (1988) proved, a successful manageris not necessary an effective manager. The former is a manager, who hasbeen promoted relatively quickly, while the latter has satisfied, committedsubordinates and high performing units. In general, we could say that aneffective manager is one who attains the organizational goals. 1. Manager’s jobIt was Henry Fayol, in the early part of this century, who was the first togive a global view about the job of manager. He observed that managersperformed 5 management functions: they plan, organize, command, coordinateand control. In the mid-1950s, these management functions were reduced tothe basic four known as the management process.Figure 1 shows that the tasks of a manager consists of planning,organizing, leading and controlling.Figure 1: Management Functions[pic]Source: Management, By: Robbins, S.P., 1991, , Prentice-Hall, Inc, p. 4The planning component encompasses defining the goals, establishingappropriate strategies, and developing different plans to coordinate theactivities. Furthermore, managers are responsible for designing anorganization’s structure, which clarifies what must be done and by whom. Asthe job of manager implies directing activities of others, the leadingfunction is very important. It consists of motivating subordinates,resolving conflicts and selecting effective communication channels.Eventually, a manager has a controlling function. He has to ensure that theassumed goals will be achieved. Therefore the manager has to monitor thedifferent activities. Also keep in mind that an effective manager must beable to perform all four activities simultaneously.Only recently has this classical view of managers been challenged based onthe observations of five CEO’s. Mintzberg H. (1971) concluded that themanager’s job consisted of many brief and disjointed episodes with peopleinside and outside the organization. In addition to these insights,Mintzberg provided a categorization scheme for defining what managers dobased on actual managers on the job. Mintzberg shows that managers playdifferent but highly interrelated roles[3].Formal authority gives rise to the three interpersonal roles (figurehead,leader, and liaison), which in turn gives rise to the three informationalroles (monitor, disseminator, spokesman). These two sets of roles enablethe manager to play the four decisional roles. We should also mention thatthe importance of managerial roles varies depending on the manager’s levelin the organization.Another best known modern view of managerial work is provided by JohnKotter which is based on his observatory[4] of 15 successful generalmanagers. Kotter stated that managers spend most of their time interactingwith others and concluded that managers spent considerable time in meetingsgetting and giving information. By obtaining relevant and neededinformation from his network, the effective manager is able to implementhis or her agenda. 2. Critical skills related to managerial competenceIn the ‘70s, researcher Robert Katz tried to find an answer to thequestion: What are the critical skills that are related to managerialcompetence? He discovered that managers should possess 4 criticalmanagement skills. Those skills can be categorized in two big groups[5]:general skills and specific skills. There seems to be overall agreementthat effective managers must be proficient in four general skills areas[6]: . Conceptual skills: the ability to analyse complex situations and to provide the necessary knowledge to facilitate the decision-making. . Interpersonal skill: as a manager you should be able to direct others, so motivation, communication and delegation skills are absolutely needed. . Technical skills: the ability to apply specialized knowledge or expertise . Political skills: the ability to build the right relationships with the right persons. Those connections result in higher chances of getting additional resources and power.The proportions in which those skills are necessary vary with the manager’slevel in the organization. Conceptual skills become more and moreimportant as we grow in the hierarchy of the organization, while technicalskills become less important. Interpersonal skills are necessary on everylevel, because a manager always works with people.Research has also identified six sets of specific skills that explain 50%of manager effectiveness: . Controlling the organization’s environment and its resources . Organizing and coordinating . Handling information . Providing for growth and development . Motivating employees and handling conflicts . Strategic problem solvingIn ‘The General Managers” (1983), John Kotter, concluded that effectivemanagers have strong specialised interest, skills, knowledge andrelationships. These specialised personal assets allow them to behave inways that fit the demands of their specific situations. Such specializationseems to have been central to their ability to cope with the often hugedemands placed upon them by their jobs.The many personal characteristics that helped contribute to goodperformance were developed over the entire period of the manager’s life. Interms of basic personality we can observe[7]: . Needs/motives: like power, need for achievement, very ambitious . Temperament: emotionally stable and even, optimistic . Cognitive orientation: above average intelligence, moderately strong analytically, strong intuitively . Interpersonal orientation: personable and good at developing relationships with people, unusual set of interest that allows them to relate easily to a broad set of business specialist. . Information: very good knowledge about the business and organization . Relationships: cooperative relationships with a large number of people in the organizationKotter concluded that in the stipulation for being an effective manager,there should be a match between the demands of the job and the individualcharacteristics. So for organizations it is a challenge to put the rightman on the right place. Depending on the role a manager has to play in anorganization, we need an individual with other characteristics. Forexample, Kotter found that in jobs where the relationships were moredemanding and accomplishing things more difficult, the general manager wassomeone with a strong personable style, skill at developing relationships,a liking of power, an emotionally even temperament, an ability to relate toa diverse group of business specialist, and extensive relationships intheir organization and industry. 1. The main characteristics of the effective managerIn the following part we will discuss some of the main manager’scharacteristics based on the theories which were discussed in the firstpart of our paper. We have summarized different visions and found out thatall theories named the following important characteristics: . Decision making skills . Conflict Management skills . Flexibility and creativity . Developing of managerial knowledge and manager’s teaching role . Motivation of employees . Communication skills . Developing trust inside the organizationWe will give a description of each characteristic including some importanttheories. 1. Decision Making SkillsMangers are at the same time the decisions makers. It is easy to makedecisions, but making the right one is difficult. What criteria should aneffective manager have upon the decision-making aspect? Let’s start with asimple review of the decision making process.Decision-making is formally defined as the process of identifying andsolving problems. The process containing 2 major stages: problemidentification and problem solution. According to the rational approach,there are 8 steps for each stage:[8]Figure 2: Decision-making process[pic]The point of rational approach is that manager should try to use systematicprocedures to arrive at good decisions. Actually in practice, there aremany uncertainties when applying this model to make decisions due to thefollowing type of information constraints imposed up people:[9] . Limited attention . Limited memory . Limited comprehension . Limits to communicationThese, plus other factors, have given rise to the notion that rationalprocess indecision is bounded. Herbert Simon, in this regard, has proposedthat, “within bounded rationality, individuals and groups often base theirdecisions on satisfying the search for what is good enough in thecircumstances, rather than optimizing.”[10]Often, managers have to facevast number of information and required to make a decision in a short time,it is impossible for him to analysis each problem and weigh eachalternatives from the limited mental capacity. [11] Therefore there is alimit to how rational a manager can be.Many models are built upon the uncertainty of the solution searching steps,while in all actuality managers are not making the decision in a vacuum.They can use formulas or models to aid their decision making process.Therefore, it is important for an effective manager to pay attention to thefollowing points when making the decisions:The intuitive decision-making process always plays an important role incombination with the rational process. Managers build up long experiencewith organizational issues, which provides them with a gut feeling or hunchabout the correct response. The large organizational decisions are not onlycomplex, but also ambiguous. In such a situation; previous experience andjudgment are needed to incorporate intangible elements. Most of the time,without solid proof that problems exist, the intuition will tell themanagers that there is or could be a problem that requires him to actbefore he is able to sit down and analyze the problem.An effective manager knows how to cooperate with the internal and externalresources. Of course, as decision-makers, the manager should not become an“autocrat”. Voice from internal will be listened, and sharing the opinionsand having joint discussions to reach the interpretation of the goals andproblems accordingly the agreement will be easier to reach and findsolutions to the problem. External comments or reactions have greatimpact on decisions makers. On one hand, managers are easily misled by thehypothesis given from the external environment and can forget to lookbroader and further. On the other hand, proactively utilizing theexternal resource can help managers to see better and further; therefore,objective evaluation of those opinions will be helpful to generate widerange of the problem solving approach.Creativity is vital to search for more alternatives during the crisismoment. When there are few possibilities to solve the problem, people caneasily stick to the first seeming possible solution and start to convincethemselves that there is no other better ones. Therefore they are stuck inthe corner and forget to look for the other alternative. Dynamic thinkingand radioactive mentality will help the manager to look the situation froma different view, there fore create the new approach.An effective manager will not only look to the short-term profit. He seesfurther. He must be able to judge where the future business will be leadto from the decision made today. Those decisions, which bring profits todaybut will undermine business tomorrow, will be dropped.The difficult decisions are always accompanied by the ethical issues. Thebest solution for the company’s profit might not be the right onesaccording to the laws or regulations. On making decisions, the ethicaldilemmas cannot be neglected, and the outcomes of unethical behavior canaffect reputations, trust and career path. Results have been as severe asloss of employment, physical harm to individuals, corporate bankruptcy andeven impacts to the economy.The scandals of 2002, including Enron and WorldCom, resulted inregulations having created a cultural shift particularly in financialfields that has renewed emphasis on ethical business behavior. Whatdistinguishes mediocre level managers from the truly effective managerialleader is an ethical dimension. There exists different moral stages thatguide people in their everyday decision-making. Those people in the“principled level…make a clear effort to define moral principles apart fromthe authority of the groups to which they belong or society in general”[12]Learn from the formal fail experience is very important. Managers are aptto stumble down the same failure-prone path over and over again withoutlearning. Learning is thwarted when leaders do not tolerate mistakes. Insuch an environment, people conceal bad out comes. Consequently, people inthe same company, or the same person in different period will repeat thesimilar mistake. аgood manager will see the mistakes as an education andcorrect himself constantly according to the new situations. Generallyspeaking, to be an effective decision maker, managers need to work closelywith their team and “integrate their faith, values and business practices”.[13] In the presentation we will use the case from “Nestle Company” toshow why bad decisions had been made and what the consequences are. [14] 2. Conflict Management SkillsAccording to Jean Miller from TIG (Taking It Global) “Conflict is thesource of all growth and is an absolute necessity if one is to bealive.”[15] An effective manager must be able to manage conflict and alsolearn from it to help the organization to grow and be challenged. Conflictis not always negative but can prove to have some positive outcomes aswell. The effective manager can balance this delicate relationship andworks hard to handle conflict with care.As further stated in the article, conflict can be viewed as something tomanage or something to resolve. John Burton, one of the world’s leadingscholars in the field of conflict resolution commented “…resolution meansterminating conflict by methods that are analytical and that get to theroot of the problem.” Miller explains that “conflict management is a multi-disciplinary, analytical, problem-solving approach to conflict that seeksto enable participants to work collaborately towards its management.”[16]Conflict is not easily avoided in any organization; therefore, an effectivemanager is prepared by knowing how he will approach certain issues beforethey happen. There are many books and articles written that address thistopic in great detail. An effective manager will consult these items anduse his or her own judgment in taking the advice of these publications.According to James Cribbin, there are three basic kinds of conflict asfollows: Approach-Approach, Avoidance-Avoidance, and Approach-Avoidance.[17] Approach-Approach would seem to be the most straightforward type of conflict as there are two alternatives that are equallyfeasible. If an employee is not being productive in the company thisaffects how the manager’s boss views that department. The manager wants toplease his boss but also stay on good terms with his employee. In eachcase the manager needs to approach the other person with open communicationand deal with the situation.Avoidance-Avoidance is very difficult because whatever decision is made tohave negative consequences. If a manager knows that his boss is cheatingthe company financially, he must make a decision. Tell on his boss andsuffer the wrath, or stay quiet and sacrifice his ethics. He would like toavoid the conflict on either side, but staying quiet may not be an option.The last type of conflict according to Cribbin is Approach-Avoidance. Hegives a clear example of a manager put in a situation in which he must makea decision that will affect himself and his family. He wants to approachthe situation but also avoid it completely. He is given a great promotionin the company but must move his family from his nice comfortable town to alarge metropolis city. Cribbin has outlined the options he has andportrays what a difficult situation this could really be: 1. Accept the position and move 2. Accept the position, leave the family in the small town and visit them on the weekends. 3. Bribe the family to make the move. 4. Ask the family to try to the new city for a year and then assess the situation. 5. He can refuse the promotion. 6. He can try to stall in making the decision and hope that something different will turn up. 7. He can try to convince his superiors that he can take the promotion and contribute more from where he already is. 8. He can get another job.[18]While this is a personal conflict for this manager, the skills a manageruses to deal with personal conflict must be transferable to the workplaceenvironment involving other employees as well as superiors. If a managerknows that there are always several options in dealing with a situation, hewill be more open to choosing one that will work for that unique conflict.As mentioned earlier, consistency is an important part of an effectivemanager and can be applied to conflict as well. аgood manager isconsistent in executing rules and regulations with his employees. He willnot let close relationships with employees cloud his judgment and rationalefor making a decision. When conflict arises, the employees will know thateach person will receive the same treatment regardless of who they are.According to Robbins, “Consistency can relate to an individual’sreliability, predictability, and good judgment in handling situations.Inconsistencies between words and actions decrease trust. Nothing isnoticed more quickly… than a discrepancy between what executives preach andwhat they expect their associates to practice.” People want to be able to“predict what you are going to do.”[19]In order for a manager to improve their effectiveness in a conflictsituation they can also use “The Five A’s of Improving Your PersonalEffectiveness” Model from Kerns. The A’s are assess, analyze, action plan,act, and adjust – then repeat.[20] аgood manager will always assess thesituation in order to gather all of the details. Once he has all of theinformation, he will analyze it and develop an action plan. Afterimplementation of the plan, he will be able to be flexible with that planif something needs to be adjusted. Effective managers use the Five A’sconstantly without even realizing it. This helps a manager approachconflict with confidence knowing there is a steady process he can relyupon. 3. Flexibility and Creativity “Managers exist in a state of steady uncertainly and their success rests upon constant exploration of uncharted waters.” Barry Munitz, President of Federated Development Company Houston, TexasToday changes in the business environment become more rapid and morecomplex and of course each manager must solve more problems in a limitedperiod of time. As Dr. Abraham Zaleznik of Harvard University mentioned:"No matter how much you plan, when you get to the work place there areunanticipated problems: And the added constant challenge is that most ofthese problems cannot be solved effectively in old, familiar, orstraightforward manners. Hence the quality most necessary for business andcareer success these days, and increasingly so in the future, isflexibility.”[21] But our group consider also creativity to be importanttoday. These two aspects help manager not to be lost and not to lose in themodern business world and of course to be effective.According to the dictionary flexibility is “the ability to change or to bechanged easily to suit a different situation”[22]. What factors made thisaspect so important? Thirst of all the growing volumes of information amanager should deal with. Second, environment and technologies whichchanged quicker and quicker every year and the third point will beinternationalization. According to these three situations we can determinethe following characteristics of the flexible manager: 1. аflexible manager is able “to stay loose and to choose and explore a wide variety of approaches to problems, without losing sight of the overall goal or purpose”[23] 2. Shows a resourcefulness in their ability to adapt himself quickly and easily to developing situation and changing environment 3. He "does not see the environment as something to which they should passively respond, but as something they should actively shape."[24]Some authors also associated flexibility with personal openness of themanager[25]. They pointed out that if managers are open then they can beinfluenced by what is happening around them and as a result they react moreflexible to all the changes around them. The one thing is obvious thatflexibility is a key feature of personal growth and an indispensablecondition for being an effective manager.Let’s now go back to the second aspect – creativity, and let’s see what itmeans: “Creativity – producing or using new and effective ideas, results,etc”[26]. When we think about creativity, we imagine people who are gifted,talented, and different from others, whose ideas, decisions, and actionsare situated out of the every day’s life borders. In culture, creativityis associated with such a people like Bach, Van Gogh, and Einstein; inbusiness with Steve Jobs (co-founder of Apple Computers), Jack Welch(General Electric), and Anita Rodick (The Body Shop).[27] Today creativityis a way of thinking, the way to integrate you visions and ideas intorelationships and business. This process can be presented as following: Figure 3: Critical thinking Brainstorming processes Free association, etc.Source: Becoming a Master Manager, By:Robert E.Qiunn,Sue R.Faerman,MichelP. Thomson, Michael R. McGrath; USA,2003The use of creativity in the decision making process or in problem solvingallows manager to increase the effectiveness and encourage creativethinking among employees. An effective manager will use creativity as atool of motivation. When employees are encouraged to use creativity intheir problem solving and in everyday work, they are more likely to feelunique, valued and important for their organization[28]. In this way amanager can not only develop effectiveness but also create a group of like-minded employees.For an effective manager of the future creativity or creative thinkingshould become the natural way to think. But to reach this ideal situationeach manager should avoid the following barriers: 1. “аnegative value of fantasy and reflection as a waste of time, a sign of laziness, or even a bit crazy”[29] 2. the ideas that only children may play and fantasise but adults must be serious 3. the idea that problem solving is a very serious an responsible process and you must forget about creativity and humour 4. a negative image of feeling and intuition, which are regarded as illogical an impractical Although it is very difficult sometimes to change the society’s cultural barriers and to change the image of creativity, each manager should try to overcome pragmatic influences and think individually. 4. Developing of managerial knowledge and manager’s teaching role Every manager must be sure that he or she will develop the competence and knowledge of those they supervise. Every employee has a potential for personal and professional development, and a good manager should discover and develop this potential. We will start with the idea that each person wants to know more. When a young employee comes to the company he has a lot of theoretical knowledge, personal ideas and visions. He has read a lot of books and articles, but he is still asking himself a lot of different questions. In that moment he needs someone to teach him how to become successful.When you are a small child your parents teach you how to walk, and when youmake your first steps in your career you also need a “parent” to teach, togive support, to empower and whatever else necessary. The effective manageris always ready to become such a “parent”. He is always open to hisemployees and colleagues, he shares his knowledge, and he inspires otherswith his own experience and example. During the process of teaching healways remains patient and supports everyone in every step of the way. Andof course leaders take the time to thank employees for a job well done.But teaching doesn’t mean only sharing manager’s knowledge with someone; italso means that the manager takes a role of mentor. The term "mentor" hasbeen used quite often in recent years. Jacqueline D. Heads, academicadvisor for the Rutgers University College of Pharmacy in New Jerseydefines this term as the following “аtrue mentor motivates you and impelsyou to move to the next level, mobilizes you by advising you on how to getthere, and finally, like a guide, a mentor informally monitors yourprogress to make sure you are moving in the right direction,"[30]But why should we pay so much attention to teaching role of manager or hismentoring role? The answer is obvious: teaching is a core competency theeffective manger should have. The idea of effectiveness changed the visionof teaching and today more authors speak not only about teaching ormentoring but about a developmental manager.[31] That means that insteadof taskmasters and evaluators, managers are most effective as coaches,motivators, symphony conductors and employee developers”[32] We will paymore attention to this idea.Developing happened not at home but mostly at the work place during thework itself or during the special classes. That is why it will be usefulfor each manager to create and to follow a development plan to avoidpointless talks and wasting of time. The idea of “A+ employees takes A+managers”[33] seems to our group to be a very interesting and futureoriented idea of cooperation between manager and employees. According tothis idea you should follow these rules while developing people: . Appreciate uniqueness of the people . Assess capability of their team members . Anticipate the future (leads others in the future) . Align aspirations (create win/win partnerships built on trust and loyalty) . Accelerate learningBut in practice the theory is always confronted with reality. One of themain problems of teaching or developing people is that a lot of managersare afraid of teaching other people. The main reason for such an attitudeis idea, that if you as a manager will teach someone everything you knowand after that he may become better and smarter then you, and take yourplace. Of course it can happen. But then manager should turn back to hismain values and decide what is most important to him: his own career or hiscompany’s success.At the same time, if you are going to share your knowledge with someone, toteach, to develop and to become a mentor you must broaden your ownknowledge. The individual becomes a manager because he was chosen to getresults and to use his knowledge, not because he won a popularity contest.Employees are not going to listen to a person who has no knowledge in whathe is talking about or gives out false information. People need to believethat a manager has the proper skills and abilities to carry out what heclaims to be experienced in. Only then a manager will earn a respect andemployees will become his like-minded team. How will you be able to dothis? Some authors[34] say that as a manager and especially as an executivemanager you are responsible for all fields of business in your company: formarketing and sales, for finance, for information technology etc. Youshould understand how things works (the IKEA-case and Kamprad’s attentionto all details can illustrate this statement) and also how employees workwhose knowledge in one particular field are deeper then yours. These aretwo main corner stones of success. How to reach them? The best solution canbe continuous replacing inside organization. As a result manager receivesvariety of experiences and knowledge in different functions, businessunits, companies, and even countries. The positive effect of such a“moving” results in understanding, how the whole business operates; of theimpact of managerial decisions on the rest of the organization. Managerscan also transfer best practices to new areas while moving; he learns howto lead in a variety of situations and he develops strong networks insideand outside the organization[35].Some other authors[36], especially from the business world, used to thinkthat an effective manager must not be satisfied with his education degreeand training, but must always be ready to catch advanced educationopportunities. The advanced degree is MBA-program; if this level wasreached then never avoid additional seminars, courses and workshops. Incontrast to the thirst group of authors who are speaking about continuousreplacement, these theories accept the idea of receiving deep knowledge inone particular area.These two approaches and also all theories about teaching show us howimportant is for every manager to develop himself and his employees.Continuous self-development, learning and teaching are the best ways tosuccess and effectiveness.1 Motivation of employeesLike the previous characteristics, the ability to motivate your employeesto work is also an indispensable one if you want to be effective as amanager. The psychology of motivation is tremendously complex, and what hasbeen unravelled so far with any degree of assurance is very small. What Iwill do here is (1) give a definition of what motivation is, (2) verybriefly going across the major theories, classical and contemporary ones,and (3) address some possibilities how an affective manager can implementthe ideas the theories offered in reality, which is of most importance. Butfirst some theory.Stephen P. Robbins gives us the following definition of motivation in hisbook Organizational Behavior (2001, p. 155)[37]: “[…] the processes thataccount for an individual’s intensity, direction, and persistence of efforttoward attaining a goal”. Thus intensity (1) is concerned with “how hard aperson tries”, with direction (2) we mean “toward attaining theorganizational goals“and persistence refers to “how long a person canmaintain his or her effort”.In the past, especially in the 50’s, a lot has been written about howmanagers can motivate their employees. We can classify these theories in 5categories.[38] These are:1. Need theories: - Hierarchy of Needs Theory (A. Maslow) / ERG Theory (C. Alderfer) - Two Factor Theory (F. Herzberg) - Theory X and Theory Y (D. McGregor)These theories all depart from the thought that to motivate your employees,you have to satisfy certain needs. Maslow’s hierarchical model, a classicalone, says that you first have to satisfy physiological needs (i.e. hunger,thirst, …), then you have to offer them safety (from physical and emotionalharm), consequently you must satisfy them socially (affection, acceptance,…), after that you can motivate them by satisfying their esteem (internalas well as external), and only then, when all the previous needs aresatisfied, you can motivate them by letting your employees actualizethemselves through their work (i.e. self-fulfilment). So if you want tomotivate someone, according to Maslow, you need to understand what level ofhierarchy that person is currently on and focus on satisfying those needsat or above that level.Maslow’s theory has received wide recognition, but unfortunately researchdoes not validate the theory. аtheory that contests Maslow’s theory isAlderfer’s ERG Theory, where E stands for existence (cfr. the physiologicaland safety needs), R for relatedness (cfr. the social needs and theexternal component of the esteem need) and G for growth needs (cfr. theinternal esteem component and the self-actualization need). This theorydiffers from Maslow’s in that (1) more than one need may be operative atthe same time and (2), if the gratification of a higher level need isstifled, the desire to satisfy a lower-level need increases. In opposite toMaslow’s theory, several studies do have supported this theory. It takesinto account that in different cultures the categories can be ranked inanother way, for example Japan, where the social needs are placed under thephysiological ones.Another classical need theory is the Theory X and Theory Y of DouglasMcGregor. These two theories represent two distinct views of human beings:Theory X makes the assumption that employees dislike work, are lazy,dislike responsibility, and must be coerced to perform, where Theory Ystipulates that employees like work, are creative, seek responsibility andcan exercise self-direction. Research suggests that these theories may beapplicable but only in particular situations.Maybe the most important contribution to the motivation question comes fromthe psychologist Frederick Herzberg with his Two-Factor Theory. The insightHerzberg brought to the matter meant a u-turn in previously thinking. Hestated as first that the opposite of satisfaction is not dissatisfaction,as was traditionally believed, but that both are distinct and separate.Intrinsic factors such as the work itself, responsibility, and achievementseem to be related with satisfaction (motivators), while extrinsic factorssuch as supervision, pay, company policies and working conditions areassociated with dissatisfaction (hygiene factors). This theory has had amajor impact on management in the last 30 years and the fact that managersnowadays allow workers greater responsibility in planning and controllingtheir work can probably be attributed largely to Herzberg’s findings andrecommendations2. Goal-Setting Theory (E. Locke):The primary idea of this theory is that specific and difficult goals, withgoal/ feedback, lead to a higher performance. This means that, for example,to motivate someone, you don’t say “Just do your best”, but you sayspecific what has to be obtained, for example “You should strive for 85percent or higher on all your work in English”. Research supports thistheory in that this do can lead to a higher performance, although it maynot lead to job satisfaction (cfr. supra).3. Reinforcement Theory:This theory states that reinforcement conditions behaviour. Behaviour isthereby environmentally caused. What controls behaviour are reinforcers –any consequence that , when immediately following a response, increases theprobability that the behaviour will be repeated. The theory ignores theinner state of the individual and concentrates solely on what happens to aperson when he or she takes some action. Because it does not concern withwhat initiates behaviour, it is not, strictly speaking, a theory ofmotivation. But it does provide a powerful means of analysing of whatcontrols behaviour, and it is for this reason that it is typicallyconsidered in discussions on motivation.4. Equity Theory (J. S. Adams):This theory poses that individuals compare their job inputs (i.e. effort,experience …) and outcomes (i.e. salary, recognition …) with those ofothers and then respond so as to eliminate any inequities. For example aperson who does the same job as another employee but gets paid less will bemotivated to perform better in order to eliminate the existing inequities.5. Expectancy Theory (V. Vroom):This is currently one of the most accepted explanations of motivation. Mostof the research evidence is supportive of this theory. Concrete, thistheory says that an employee will be motivated to exert a high level ofeffort when he or she believes that effort will lead to a good performanceappraisal; that a good performance appraisal will lead to organizationalrewards such as a bonus, a salary increase, or a promotion; and that therewards will satisfy the employee’s goals.The major theories briefly presented, we can now look at how in reality amanager can implement these. Robbins mentions 6 applications. These are:1. Management by objectives (MBO) (cfr. Goal-Setting Theory):This means in realty, as a manager, you make sure that the organization’soverall objectives are translated into specific objectives for eachsucceeding level (divisional, departmental, and individual) in theorganization. You develop a program that encompasses specific goals,participatively set with the employees, for an explicit time period, withfeedback on goal progress. MBO programs are used in many business, healthcare, educational, government and non-profit organizations.2. Employee Recognition Programs (cfr. Reinforcement Theory)Consistent with reinforcement theory, rewarding a behaviour withrecognition immediately following that behaviour is likely to encourage itsrepetition. For example: personally congratulating an employee, or sendinga letter or an e-mail, having a celebration because of good achievement, orpublicly recognizing, such as organizing a prize “Best Employee of theMonth” (he/she then gets a plaque on the wall). These programs are widelyused because it costs no money and according to research bears effective.3. Employee Involvement Programs (cfr. Theory X and Theory Y, Two-FactorTheory, Hierarchy of Needs Theory & ERG Theory):The idea here is that by involving workers in those decisions that affectthem and by increasing their autonomy and control over their work lives,employees will become more motivated, more committed to the organization,more productive, and more satisfied with their jobs. Examples: - participative management: subordinates share a significant degree of decision-making power with their immediate superiors. - representative participation: rather than participate directly in decisions, workers are represented by a small group of employees who actually participate - quality circles: a work group of 8 to 10 employees and supervisors meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions. - employee stock ownership plans (ESOPs): these are company- established benefit plans in which employees acquire stock as part of their benefits.4. Variable Pay Programs (cfr. Expectancy Theory):Here a portion of an employee’s pay is based on some individual and/ororganizational measure of performance. Examples: - Piece-rate pay plans: you are paid a fixed sum for each unit of production completed. - Bonuses: extra payment because of certain achievement. - Profit-sharing plans: compensations based on some established formula designed around a company’s profitability (direct cash outlays or stock options). - gainsharing: an incentive plan in which improvements in group productivity determine the total amount of money that is allocated.5. Skill Based Pay Plans (cfr. ERG Theory, Reinforcement Theory, EquityTheory):These plans set pay levels on the basis of how many skills employees haveor how many jobs they can do. For example, if you are a machine operator ina certain company, you earn 14$/hour, but because of the skill based payplan, you can earn up to a 10 percent premium if you broaden your skills tofor example material accounting. Several studies have confirmed that skillbased pay generally leads to higher performance and satisfaction. Theseplans are expanding and already widely used with success.6. Flexible Benefits (cfr. Expectancy Theory):These allow employees to pick and choose from among a menu of benefitoptions that exceeds the traditional benefit programs. The options mightinclude hearing, dental and eye coverage; life insurance; extended vacationtime; …. This way the different needs of the employees can be met. Themajor theories and their applications were provided; we want to concludehere with some general guidelines: Recognize Individual Differences Use Goals and Feedback Allow Employees to Participate in Decisions that Affect Them Link Rewards to Performance Check the System for EquityThe conclusion then is that нf you have the skill as a manager to tailorthe perfect motivation method for each of your employees, you will be moreeffective.2 Communication skillsWith Rees (1991, p. 159), we can say that this characteristic is probablythe most important of all the characteristics an effective manager needs topossess. Everything a manager does involves communication, his verbal andnonverbal behaviour. Communication between managers and employees isimportant in the sense that it provides the information necessary to getwork done effectively and efficient in organizations. Effectivecommunication is the critical factor that moves a team toward a resolutionor consensus (“How to be an effective manager”, 2000, p. 14).Robbins & Coulter provide us with the following communication model (seeattachment 1). As we can notice by looking at this model, there are sevenfactors involved in communication: (1) the communication source, (2)encoding, (3) the message, (4) the channel, (5) decoding, (6) the receiverand (7) feedback. The definition of communication is then “the transfer andunderstanding of meaning” (Robbins & Coulter, 2002, p. 282). This meansthat (1) the message has to reach the receiver ( for example a speaker whoisn’t heard does not communicate) and (2), more important, the message hasalso to be understood in the way it was meant by the sender. Interesting tonote is that communication can be affected by noise, by which we mean anydisturbance that interferes with the transmission, receipt or feedback of amessage, for example a phone ringing in the background.Robbins and Coulter (2002, pp. 288-291) distinguish 7 different barriers toeffective communication. These are (Robbins & Coulter, 2002, pp. 288-291): 1. Filtering: this is the deliberate manipulation of information to make it appear more favorable to the receiver. For example when a manager tells his boss what his boss wants to hear. 2. Selective perception: when people selectively interpret what they see or hear on the basis of their interests, background, experience and attitudes. For example an employment interviewer who expects a female job applicant to put her family ahead of her career is likely to see that in female applicants, regardless of the fact that it is true or not. 3. Emotions: how a receiver feels when a message is received influences how he or she interprets it. 4. Information overload: when the information we have to work with exceeds our processing capacity. For example tons of e-mails. You are bound to select and this way information gets lost. 5. Defensiveness: when individuals interpret another’s message as threatening, they often respond in ways that hinder effective communication. 6. Language: words mean different things to different people. Age, education and cultural background are three of the more obvious variables that influence the language a person uses and the definitions he or she gives to words. The use of jargon, a specialized terminology or technical language that members of a group use to communicate among themselves, can be a barrier to effective communication. 7. National culture: cultural differences and consequently different values (cfr. the problems of intercultural communication).[39]To these we can also add gender differences[40], status differences (forexample boss vs. subordinate) and interference of nonverbal communicationfactors (for example smell as a personal physical characteristic).Now what can a manager do to overcome these and as such be effective in hiscommunication? If we know that an average manager spends 80% of his or hertime communicating in one form or another (10% writing, 15% reading, 25%listening and 30% speaking), communication is affecting a company in everypossible way (“How to be an effective manager”, 2000, p. 14). Thereforeeffective communication is of extreme importance.Robbins (2001, pp. 302-304) mentions 8 rules by which the barriers can bebridged: 1. Use feedback: question the receiver to know if he understood the message in the way it was intended. 2. Simplify language: choose words and structure your messages in ways that will make those messages clear and understandable to the receiver. 3. Listen actively: this means an active search for meaning, in opposite to passively hearing 4. Contrain emotions: when emotionally upset, refrain from communication until u have regained composure. 5. Watch nonverbal cues: to ensure that the receiver conveys the desired message. 6. Empathize with others: put yourself in the shoes of your listeners. This way you’re more likely to see things from their perspective. Then you can choose the proper channel and the right words to transfer your message (cfr. infra). 7. Use multiple channels: this increases clarity because (1) it stimulates different senses and (2) it takes into account that people have different abilities to absorb communication. 8. Match your words and actions: actions speak louder than words. When nonverbal messages contradict official messages as conveyed in formal communications, people become confused and the official message loses its focus. 9. Tailor the message to the audience: different people in the organization have different information needs. Individuals in organizations vary in the type of information they need to know, their preferred channel for receiving the information, and their understanding of language, so you should take this into account and tailor your message to your audience. 10. Remember the value of face-to-face communication when dealing with change: as we shall see immediately, some channels are more rich than others. Especially in times of uncertainty, it is appropriate to use a rich channel to convey ambiguous and nonroutine messages. 11. Channels: understand that some channels have different effects on different audiences.To conclude, I want to give some additional information to these last two.As a manager in the 21st century, you can make use of a wide variety ofcommunication methods thanks to the rapid progression in informationtechnology. These include: face-to-face, telephone, group meetings, formalpresentations, memos, traditional mail, employee publications, bulletinboards, audio and videotapes, hot lines, electronic mail, computerconferencing, voice-mail, teleconferences, and videoconferences. As amanager, it is of crucial importance that you select the appropriatemethod/channel to communicate a specific message. Recent research has foundthat channels differ in their capacity to convey information. Some are richin that they have the ability to (1) handle multiple cues simultaneously,(2) facilitate rapid feedback, and (3) be very personal. Attachment 2 showsus the hierarchy of channel richness. The rule to choose one channel aboveanother depends then on the fact of whether the message is routine ornonroutine. For example firing a person by sending him/her an e-mail isn’tquite effective. Instead, sending an e-mail to let him know that he/she’sinvited for a personnel party this Saturday do is so.As a conclusion we can say that effective communication is of extremeimportance if you want to be an effective manager. However, this doesn’tmean that good communication skills alone make succesfull managers. We docan say that нf the suggestions made here to communicate effective areapplied in a correct manner, then a lot of problems for a manager can beavoided and surely the company as a whole will benefit from this. 5. Decveloping Trust inside the organizationEthics and values have always been an important part of business, but theyare now looked at more closely as there have been many instances where theywere not adequately defined. According to Szwajkowksi in “The Myths andRealities of Research on Organizational Misconduct”, managerial ethics are“principles that guide the decisions and behaviors of managers with regardto whether they are right or wrong in a moral sense.”[41] Because notevery manager and individual follows the same principles, ethical dilemmasoccur. It is crucial for a manager to first develop a list of core valuesfor himself in order to be consistent in his business practices. As amanager handles each situation with these values, trust is built.It is difficult to decide which values a manager should pay more attentionto. According to Stephen Robbins’s in “The Essentials of OrganizationalBehavior” trust is defined as a “positive expectation that another will not– through words, actions or decision -- act opportunistically”.[42] Hegoes on to present that trust is multi-dimensional and thereforeencompasses a vast range of values within it. The Five Dimensions of trustthat he mentions are as follows: . Integrity: honesty and truthfulness . Competence: Technical and interpersonal knowledge and skills . Consistency: Reliability, predictability, and good judgement . Loyalty; Willingness to protect and save face for a person . Openness: Willingness to share ideas and information freely[43]By developing each of these qualities, a manager will encourage atrustworthy environment in his relationships with his employees as well ashis superiors.As Robbins suggests, trust is something that we expect as the outcome froma person through our experiences with them. Over time, we get a sense ofhow that person behaves and acts accordingly to our behavior. Trust is arather sensitive issue to most people and requires that managers actappropriately to gain the trust needed to lead effectively. It isdangerous to lose trust of an employee as they may not respect yourjudgment without it.Managers who want to engage in trustworthy relationships with theirworkers, according to Robbins’s guidelines, must follow certain practicesthat show integrity, competence and consistency.[44] Without these threecharacteristics, all aspect of trust becomes meaningless. The normal dayto day actions of a manager affect the level of trust that each employeewill have in him/her.Managers of different levels and cultures prioritize trust differently.This is evident when evaluating how managerial decisions can build trustthrough the Managerial Linkage System. In “Managerial Leadership at TwelveO’Clock” Charles Kerns, describes that on one end of the managerial scaleis an untrustworthy manager who accomplishes his goals with lies anddeception to obtain the numbers. On the other end of the scale is amanager who uses the trust of his workers to accomplish the same numbers.It is clear that the untrusting manager is taking a shortcut through themanagerial system from 12-9 and the trusting manager has taken the time andeffort to move along from 12-3-6-9 as shown in the figure below.[45] [pic]The untrusting manager’s shortcut disregards the concerns of the workersand in turn ignores the quality of output to the customers. This willeffect worker retention times and create poor customer satisfaction.Though this manager may achieve sales targets the first time around it willnot last. The second time through the cycle the results will begin to dropoff due to poor management and a lack of trust. Conversely, the trustingmanager gains the trust of the workers and forms a great relationship withthem. Worker retention is much longer and they tend to do a much betterjob caring for the customers. With happier customers will come theincreased sales. The second time around the cycle, the trustworthy managerwill have an easier time achieving the same or improved sales. TheManagerial Linkage System demonstrates that having employee trust willcause business performance to increase. 2. Can we learn how to become an effective manager?Last decades, many visions thought that we could learn how to become aneffective manager. We could refer to the success of many institutions whereMBаprograms are offered. Many young high intelligent business men aretaught how to become successful. Nevertheless the success of these businessschools, there is a lack of correlation between scholastic standing and thesuccess in business. Clearly, what a student learns about management ingraduate school, does not equip him to build a successful career inbusiness.For Livingstone S. (1971) the reason for this failure could be found in thefact that[46]:”they don’t learn from their formal education what they needto know to perform their job effectively. The tasks that are the mostimportant in getting results usually are left to be learned on the job,where few managers ever master them simply because no one teaches themhow.”Formal management education programs typically emphasize the development ofskills which enables the future manager to solve problems and to makedecisions (‘respondent behaviour). But little attention is given to thedevelopment of skills required to find the problems that need to be solved(‘operant behaviour’). Furthermore, the problem solving in the classroom isseen as an entirely rational process, while in reality human emotions makeit hard to deal with the problems objectively.As the research of Norman H. Mackworth revealed[47], the distinctionbetween the problem-solver and the problem-finder s vital. He concludedthat managers not only should be able to analyze data of financialstatements or other written reports, but even more important they should beable to scan the business environment for less concrete clues that aproblem exist. These perceptual skills are extremely difficult to developin the classroom and must be developed on the job.We should ask our self the question: Are there people who have moremanagerial skills than others, because they are able to learn from theirexperience what they need to know to manage effectively. Livingstone S(1971) found three characteristics of men who learned to manageeffectively. . Need to manage: to be able to manage effectively, you should have a strong desire and satisfaction to influence the performance of others. Many of those who aspires high- level positions are driven by the expectations of high salaries or high status, but are not motivated to get effective results through others. Those managers don’t learn how to develop an effective managerial career, because there is a lack of willingness to manage. They are not able to devote enough time and energy to find a suitable way to manage. So the need to manage is a crucial factor in determining whether a person will learn and apply in practice what is necessary to get effective results on the job. For example, managers who are outstanding individual performers, but with a lack to motivate others or to delegate tasks to subordinates, rarely advance far up the organizational hierarchy because they will be blocked by low performances of a large number of subordinates. . Need for power: Since managers are primarily concerned with directing and influencing subordinates, they should be characterized by a high need for power. We could refer to the above chapter about leadership and power. . Capacity for empathy: The capacity for empathy is ”the ability to cope with the emotional reactions that inevitably occur when people work together in an organization” (Livingstone S. 1971). Managers who are perfectly capable to learn from their job experience, or who are able to apply management techniques successfully, often fail because their affinity with others is entirely intellectual or cognitive. They are emotionally blind. They are not capable to deal with the emotional reactions that are crucial in gaining the willing cooperation of subordinates. It is very difficult to teach people how to cope with human emotions.So we could conclude that there should be a combination of inborncharacteristics and acquired knowledge and experience to become aneffective manager. There are people wit a higher needs for managing andpower and having a bigger capacity for empathy than others. But thesefeatures are no guarantee for success. They should be combined withtechnical and conceptual skills acquired during management education andjob experience.But the effective manger is one, who is able to adapt his personality,skills, knowledge and relationships in such a way that it fits the demandsof their specific situation.3. Can we learn how to become an effective manager?Last decades, many visions thought that we could learn how to become aneffective manager. We could refer to the success of many institutions whereMBаprograms are offered. Many young high intelligent business men aretaught how to become successful. Nevertheless the success of these businessschools, there is a lack of correlation between scholastic standing and thesuccess in business. Clearly, what a student learns about management ingraduate school, does not equip him to build a successful career inbusiness.For Livingstone S. (1971) the reason for this failure could be found in thefact that[48]:”they don’t learn from their formal education what they needto know to perform their job effectively. The tasks that are the mostimportant in getting results usually are left to be learned on the job,where few managers ever master them simply because no one teaches themhow.”Formal management education programs typically emphasize the development ofskills which enables the future manager to solve problems and to makedecisions (‘respondent behaviour). But little attention is given to thedevelopment of skills required to find the problems that need to be solved(‘operant behaviour’). Furthermore, the problem solving in the classroom isseen as an entirely rational process, while in reality human emotions makeit hard to deal with the problems objectively.As the research of Norman H. Mackworth revealed[49], the distinctionbetween the problem-solver and the problem-finder s vital. He concludedthat managers not only should be able to analyze data of financialstatements or other written reports, but even more important they should beable to scan the business environment for less concrete clues that aproblem exist. These perceptual skills are extremely difficult to developin the classroom and must be developed on the job.We should ask our self the question: Are there people who have moremanagerial skills than others, because they are able to learn from theirexperience what they need to know to manage effectively. Livingstone S(1971) found three characteristics of men who learned to manageeffectively. . Need to manage: to be able to manage effectively, you should have a strong desire and satisfaction to influence the performance of others. Many of those who aspires high- level positions are driven by the expectations of high salaries or high status, but are not motivated to get effective results through others. Those managers don’t learn how to develop an effective managerial career, because there is a lack of willingness to manage. They are not able to devote enough time and energy to find a suitable way to manage. So the need to manage is a crucial factor in determining whether a person will learn and apply in practice what is necessary to get effective results on the job. For example, managers who are outstanding individual performers, but with a lack to motivate others or to delegate tasks to subordinates, rarely advance far up the organizational hierarchy because they will be blocked by low performances of a large number of subordinates. . Need for power: Since managers are primarily concerned with directing and influencing subordinates, they should be characterized by a high need for power. We could refer to the above chapter about leadership and power. . Capacity for empathy: The capacity for empathy is ”the ability to cope with the emotional reactions that inevitably occur when people work together in an organization” (Livingstone S. 1971). Managers who are perfectly capable to learn from their job experience, or who are able to apply management techniques successfully, often fail because their affinity with others is entirely intellectual or cognitive. They are emotionally blind. They are not capable to deal with the emotional reactions that are crucial in gaining the willing cooperation of subordinates. It is very difficult to teach people how to cope with human emotions.So




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