Have you ever wondered what your boss does all day? Maybe you and your coworkers discuss how little you need a supervisor to do your jobs successfully. Perhaps you can’t imagine a day without your manager checking in with you.
Regardless of how you feel about your superiors, leadership is an integral part of any business. Would it surprise you to learn that they are only one piece in the management process?
What is Management?
Management is the process of handling things or people. When applied to the professional world, management is the administration and control of all aspects of an organization. Individuals, known as managers, make decisions, guide, and coordinate other employees, and ensure efficient daily operations.
Businesses and other organizations rely on management to optimize resources to achieve a common goal. It is important to understand that management involves more than managers; it also includes processes and operations of the work.
Management is cyclical and involves the coordination of five main components. Breakdown at any part of the process could derail the entire organization.
- Planning is the primary role of management because it involves creating a pathway to reach a common goal.
- Organization is critical to enacting the plan. Management requires the identification and assignment of tasks to every part of the company.
- Staffing a company properly is essential. Hiring the right people for each task is necessary to ensure they complete the job effectively and correctly.
- Management, the leadership of an organization, provides direction, and keeps everybody on track. Sometimes, teams need the motivation to move forward or redirection to get back on target.
- Control is the final component. This aspect involves performance standards and helping every member of the team meet those standards to achieve common goals.
Breaking Down the Levels of Management
Depending on the size of an organization, there may be different types of management with unique roles. Often, management breaks down into three levels, which in turn creates a hierarchy.
- Top-Level Management is usually the smallest group of individuals, but they tend to have the most responsibility. This level consists of Chief Executive Officers and the Board of Directors.
- Middle Management acts as a liaison between lower-level managers and the top-level of the company. They are usually identified as department managers and represent different divisions of the company in meetings with Top-Level Management.
- Lower Level Management includes team leads, forepersons, and supervisors who manage the day to day operations of an organization. They are responsible for the quality and quantity of work produced by employees.
How Effective Management Impacts the Workplace
Management is critical to any organization, but it can make or break a business. Good, or effective management, is the goal and should be considered in plans for every company. From processes to personnel, management keeps a company on track.
When teams work well together, have set processes to follow, and understand expectations, they can adjust to mishaps or shortcomings. Good management motivates, encourages, and develops every person involved to the benefit of the company.
How to Build Effective Management
Organizations that utilize effective management techniques are more successful. It sounds easy enough, but it takes time and effort to master good management. You need to develop several skills and balance the many moving components.
Know Your Business
Though many skills may transfer across several industries, good management of a company requires an understanding of the intricacies of industry specifics. Plans developed by somebody with vague knowledge of industry standards are not as effective as those created by people with several years of experience.
For example, just because you successfully built a retail business, it doesn’t mean you’re equipped to start a construction company. While your management and business skills may translate, there are many differences between the two industries. However, there is always room to learn and train in a new industry.
It’s also an excellent idea for leadership teams to work at each level of an organization to truly understand every component and job within the company. After all, how can you be responsible for a process that you don’t understand?
Balance the Five Components of Management
Do you remember the five components of management? Successful organizations recognize that all five work together in equal measure to achieve goals. Remove one link in the chain, and you weaken the entire organization. It is critical to develop balance and fluidity between these components.
For example, imagine that Organization A has a plan with detailed strategies and contingencies. Their system is well-organized with detailed processes, established performance goals, and set production standards. Organization A’s staff is talented and ready to work.
What do you think happens if the leadership team fails to provide appropriate direction and motivation? Organization A hired leadership that doesn’t work well together and struggles to communicate effectively to their respective teams. The lack of balance and commitment to good leadership could mean trouble.
Use Your Resources Wisely
Since management addresses more than the people, it’s a mistake to gloss over an organization’s resources. Generally, resources refer to assets, money, people, and materials. Plans, structure, and operations should account for the best use of all four resources.
Put Your Money to Work
Financial resources are necessary to fund any project, and using them effectively is the best way to maximize profits. Companies need to cover the costs of labor, materials, and any associated fees.
Understanding the finer points of cash flow is as important as having available funds. Even with unlimited cash available, companies can struggle if they constantly pay extra to cover problems. More money is not always the answer, and you need to be able to find other ways in the event of an unexpected shortage.
Managing Material Assets
Material assets can be seen, touched, and used to advance company goals. The building where a company is located, all office and production equipment, and even general supplies fall under the category of material assets.
Efficient use of materials is critical to company success and can impact the bottom line in many ways. Regular evaluation of how an organization uses material assets allows leadership to identify obsolete equipment and discover new uses for languishing supplies.
Imagine that Company B owns the building that houses their base of operations. It’s a valuable material asset, but technology has opened the door for several employees to work remotely. Now, the company loses money on the maintenance of four, half-empty floors.
If Company B’s management evaluates the situation, they could brainstorm several potential solutions to manage their material assets better. Perhaps they consolidate their staff to two floors and lease out the other two to another organization. Or, maybe Company B sells the building to purchase a smaller property.
Addressing the Intangible Assets
Money, people, and materials are easy to understand and quantify, but what about those resources that you can’t necessarily see or touch? Intangible assets include several resources that affect the processes of a company or organization and generally only have value internally.
- Intellectual property like patents, trademarks, and copyrights reside with an individual or organization and contribute to their brand.
- Customer lists are a foundation for most organizations, but often have little value to the outside world.
- Software and processes that were developed specifically for the company are valuable internally, but that value would not likely transfer to another organization.
- Brand images are essential for every organization. It’s the look and feel of a company that expresses ideas, values, and missions in everything, including media and product packaging.
Intangible assets are linked to every aspect of daily operations, even if you don’t realize it. Consistency and awareness of those intangible assets affect an organization’s image and message. Look at successful businesses, can you identify the intangible assets that increase their company value?
Managing Your People Resources
It may feel strange to consider people as resources, but they are a company’s most significant assets. Hiring the right staff is a big step toward success, and it applies to every level of an organization.
When tasked with hiring new staff, there are five main questions to address before making a decision. Weigh the importance of each issue carefully, because some may not matter as much as others. Remember, there’s rarely a perfect candidate, let alone enough to staff your entire company!
- What is the base skill set needed to do the job effectively? Does your candidate demonstrate an aptitude for the skills or ability to learn them?
- Does your candidate have experience in the position? Remember that experience is not always relevant, especially for entry-level or low-level positions.
- Are there special qualifications for the job? For example, if there are licenses required to perform specific tasks, double-check that a candidate has them or can secure them before their start date.
- Availability is often overlooked, but you need to know if your applicant is capable of the time commitment and work hours required for the position.
- Where is the position located, and does it work for the interviewee? In today’s technologically advanced world, telecommute and long-distance jobs are increasingly common. However, if your company needs employees in the office, make sure applicants can comply.
Hire and Develop Amazing People
In most cases, people are a company’s greatest asset. Hiring the right people at every level of your organization is necessary for success because management relies heavily on teamwork.
It takes effort to build a good team, develop effective management, and foster a positive work environment.
The Importance of Company Culture
People are resources, but be careful not to treat your team as interchangeable or replaceable. Think about the previous example of Organization A and its leadership issues. Do you think their managers made their employees feel good? Weak, ineffective leadership often leads to negative work culture.
Building a solid team and positive company culture should be a priority for every organization. Strong company culture begins with effective leadership. The benefits of positive company culture are abundant and ultimately enhance the bottom line in many ways.
- Employees tend to stay with companies where they feel appreciated and happy. They also tend to recommend the organization to other talents. Low employee turnover means less capital devoted to training replacements.
- When people love working for you, it’s easier to recruit more amazing, talented people to your team. Attracting experienced and capable applicants make hiring faster and easier for your leadership team.
- Positive work environments boost employee morale, which increases productivity, collaboration, and job satisfaction.
- Who wants to work in a negative, stressful office? A strong, positive culture in the workplace leads to reduced work-related stress for employees at all levels.
How Management Can Impact Company Culture
As you can see, strong company culture has a positive impact on profits. What does your company culture look like right now? Whether your organization is facing a crisis, or you just want to be proactive, take some time to consider how your leadership could build a stronger company culture.
Take some time to discuss options and brainstorm potential actions with your leadership team. Many opportunities to impact company culture cost little by way of money or time but offer significant returns.
- Explore employee wellness activities. Help employees address their physical, mental, and emotional needs by providing the necessary resources and tools. You get bonus points if you offer these options on-site.
- Give meaning to every employee. When people feel their work makes a difference, it increases job satisfaction and strengthens the connection to the company.
- Establish clear goals, including company goals that encourage employees to work together to achieve them.
- Listen and learn. Talk with your employees and look for ways to improve. When people feel heard, they feel valued and appreciated.
- Look for opportunities to connect socially, especially if there’s limited opportunity for interactions during normal work activities. Team meetings and happy hours can encourage positive social interactions and strengthen company culture.
The bottom line is that changing company culture starts with your leadership team. Since leadership is one of the fundamental components of management, you need strong candidates to fill those roles and lead by example.
Characteristics of Great Managers
Management positions are not easy, even for the most experienced, charismatic, and qualified leaders. Further, nobody is born with a full set of finely tuned leadership skills. It takes time and effort to develop the tools to effectively lead an organization.
Every person in a leadership role needs to assess their skills regularly. Look for areas with room to improve or expand your knowledge. Embrace change and opportunities to grow as a person, employee, and manager.
Learn to Listen
The most important part of communication is listening. Not only do employees need to feel heard, but it’s also impossible to solve an issue if you don’t understand the root of the problem. Good management involves listening to and hearing what your team is saying.
Try a New Perspective
It’s easier to understand employees when you take a moment to step into their shoes. Part of that process involves knowing them and their job. Empathy is a valuable asset for managers that fosters better communication.
Know Your Place
Managers need to know how they fit into an organization and the role of their department. It’s also essential to understand the industry and how the company fits in the market. You need to understand how the components of the company work together and where you fall in your competitive set.
Cross-training is a valuable tool for management. Learning the roles and duties of different departments provides a greater understanding of the larger plan. It also creates contingencies in case one department needs help with a big project or somebody takes extended leave.
Practice Self-Reflection
Intense emotions, like fear or anger, can cause unwarranted outbursts. When it happens to individuals in leadership roles, the consequences can be damaging. Good leaders learn to manage those emotions and expel them in healthy ways instead of exploding at work.
Handle Mistakes Correctly
We all make mistakes. Leaders need to handle employee mistakes with grace instead of yelling and criticism. Further, good leaders admit when they make mistakes and take responsibility for everybody who reports to them.
Speak Up When Necessary
Good management involves open communication with no fear of retribution. That should extend to all levels of leadership. A good manager defends their team when new processes or changes to the workplace could create substantial problems.
For example, if upper management develops a new performance standard that middle and lower managers know to be impossible, they should speak up. Handing down unattainable goals is demoralizing for your team, even if you deliver the news with empathy. Instead, address the impossible goals with upper management.
Keep Learning
It’s easy to lose yourself in the day-to-day management of your team. Don’t forget to push yourself to learn and grow. Advancing your leadership skills may involve training that takes you away from the office at times. Let your commitment to your career inspire those around you to do the same!
Expand Your Horizons
Diversity is not just a buzzword. Confront your individual biases and try to overcome them. Learning to embrace people of different ages, ethnic backgrounds, religions, and personality types makes you a better leader. It takes effort, but it also makes you more approachable and open to new experiences.
Build Trust
Trust contributes to positive company culture. When employees trust their management team, it enhances the sense of community. Good management builds trust, while bad management relies on threats and fear-based compliance.
Embrace Your Humanity
You’re not a robot, so don’t act like one. Remember to interact with your team, share frustrations, and fun. While you need to establish yourself as a leader, you don’t want to alienate those around you.
The Impact of Bad Management
When management is effective, an organization operates like a well-oiled machine. What happens when management fails to deliver? Poor management can have a catastrophic impact at any level and any part of the process.
How Poor Management Affects Employees
Bad management impacts employees and their contributions to the organization. Since employees are crucial to the success of any business, they have the most to lose when management fails.
- Reduced productivity is a common effect of bad management. Employees may drag their feet, delay interactions or reporting, waste time at meetings, or frequently call off work.
- Low morale is a byproduct of bad management often seen when managers are critical or prone to bullying their teams. The increased stress leads employees to hate their jobs and ultimately result in drastic responses, like acting out or quitting.
- While good managers encourage their teams to excel, poor management kills that urge and results in unmotivated employees.
Bad Management Equals Big Consequences
The persistent failure of management inevitably yields a decrease in profits. Even if a business attempts to remedy the losses by cutting staff, if it does not address the management issues, the business will ultimately fail. Employees report four main problems with management that companies can easily remedy.
Criticism Over Recognition
Lack of recognition is a big mistake that’s a common symptom of bad management. When employees are regularly criticized for errors but never commended for achievements, the result is a fear-based work environment.
Combat this issue by creating channels for open communication. Feedback should be consistent and constructive to improve weaknesses, but should also include accolades for achievements.
Excessive and Impractical Meetings
Meetings can be productive, but only when managed appropriately. Lengthy or frequent meetings are often counterproductive and distracting, especially if the topics of discussion only apply to some employees.
Resolve this problem by organizing meetings better. Only include necessary employees in each meeting so others can stay on task. Group meetings should address goals and issues that apply to the entire team.
Compliance by Fear
Employees who fear losing their jobs rarely prioritize production standards or respect their management team. They are more apt to look for a new job when the threat of firing hangs over their head every day. Bad managers thrive on fear-based environments that destroy morale and productivity.
Company culture is so important, and fear tactics are no way to strengthen your team. Instead, work on communication and train fear-mongering managers to use alternate methods. Work on building transparency and creating opportunities for open, honest conversations.
Compounding Negativity
Fear contributes to negative company culture, but it’s not the only way to tank morale. Managers who exhibit favoritism, employ inconsistent policies, or close themselves off from their teams contribute negativity.
Managers who use these approaches often lack communication skills, but some have warped views of their roles in the company. Leadership training is a step in the right direction, but they will have to learn new ways to view their employees and new management methods.
Signs Your Management is Problematic
How do you know if management is your organization’s problem? It’s easy to blame employees or faulty processes for mishaps, but sometimes lax or inefficient leadership is to blame. You may need to dig a little to find your answers, but there are a few signs it’s time to reevaluate your management.
There’s a Surge in Resignations
High turnover is a symptom of bad management. People are more than happy to leave jobs with bad bosses. When you notice a string of resignations, ask why people are leaving. Make sure you are open to whatever the employees have to tell you, even if you don’t like what they say.
You can also be proactive and initiate regular, anonymous surveys for feedback on management at all levels. Include opportunities to share suggestions and field concerns. Your employees need opportunities for growth and advancement.
Your Team is Miserable
Low morale can spread through an organization like a virus. The tension and frustration often stem from insufficient or inefficient communication.
There are several ways to address morale, but they all start with open communication and transparency. In addition, build employee recognition programs and offer rewards for reaching goals.
Employees Tune Out or Shut Down
Stagnate performance, or lack of output may sound lazy, but they more often signal poor management. Remember, part of management involves encouragement, direction, and motivation of employees. When managers fail to fulfill that aspect adequately, employees react by pulling back.
To remedy this issue, develop and implement a performance evaluation process. Make sure your management team understands the process and follows through with gathering data and tracking employee goals.
The Importance of Management
Management helps organizations achieve common goals. They increase efficiency, create a dynamic environment, and aid in the personal development of individual employees. Every level of an organization feels the effects of bad management. Likewise, the impact of good management can lead to groundbreaking successes.
Society relies on management for growth and development. We benefit from better services and products and a variety of employment options. Management teaches us about ourselves and those around us, making it a fundamental part of our world.