Effective management is the key to
the establishment and growth of the business. The key to successful
management is to examine the marketplace environment and create employment
and profit opportunities that provide the potential growth and financial
viability of the business. Despite the importance of management, this area
is often misunderstood and poorly implemented, primarily because people
focus on the output rather than the process of management.
Toward the end of the 1980s, business managers became absorbed in
improving product quality, sometimes ignoring their role vis-a-vis
personnel. The focus was on reducing costs and increasing output, while
ignoring the long-term benefits of motivating personnel. This shortsighted
view tended to increase profits in the short term, but created a
dysfunctional long-term business environment.
Simultaneously with the increase in concern about quality,
entrepreneurship attracted the attention of business. A sudden wave of
successful entrepreneurs seemed to render earlier management concepts
obsolete. The popular press focused on the new cult heroes Steve Jobs and
Steve Wozniack (creators and developers of the Apple Computer) while
ignoring the marketing and organizing talents of Mike Markula, the
executive responsible for Apple's business plan. The story of two guys
selling their Volkswagen bus to build the first Apple computer was more
romantic than that of the organizational genius that enabled Apple to
develop, market and ship its products while rapidly becoming a major
corporation.
In large businesses, planning is essential for developing a firm's
potential. However, many small businesses do not recognize the need for
long-range plans, because the small number of people involved in operating
the business implies equal responsibility in the planning and
decision-making processes. Nevertheless, the need for planning is as
important in a small business as it is in a large one.
This guide focuses on the importance of good management practices.
Specifically, it addresses the responsibilities of managing the external
and internal environments.
HUMAN RESOURCE ISSUES
Ensuring Open Communications
Effective communications play an integral role in managing and
operating any successful business. With open communications changes and
their effects on the organization are quickly shared. Your firm then has
the time and skills needed to respond to changes and take advantage of
evolving opportunities.
The following checklist addressing how you would respond to an
employee's suggestion provides an assessment of the communication process
in your business. Place a check next to the statements that are commonly
heard in your business.
Statement
Face facts it's unrealistic. -----
Who else has done it? -----
It's not your problem. -----
Fill out form XX/xx revised. -----
It won't work. -----
Bring it to the committee. -----
We don't have the time. -----
We tried it before and it failed. -----
You think what? You're joking! -----
Everybody knows that that's foolish. -----
We can't afford to think about it. -----
Don't you have better things to do? -----
Are you some kind of a radical? -----
We're too small/big for that. -----
Impossible; our main product line would be obsolete. -----
The boss would never consider it. -----
It's contrary to company policy. -----
Carefully consider any statements that you have checked. This may
indicate that management is inflexible and unresponsive to employee
suggestions. Management that is unable to respond immediately to changes
in the market signals an inflexible unstable firm. In the rapidly changing
business environment such management can mean eventual failure for your
business. If you haven't developed such a checklist do so. It will help
you determine if and where adjustments are needed in your management
staff.
Balancing Schedules Stress and Personnel
Without organization and good management the compressed time schedules
associated with modern business can cause stress and make extraordinary
demands on people. An effective management structure can reduce stress and
channel the productive capacity of employees into business growth and
profits.
Setting Duties Tasks and Responsibilities
An organization is characterized by the nature and determination of
employees' duties tasks and responsibilities. While many organizations use
different methods for determining these it is essential that they be
clearly defined.
The core of any organization is its people and their functions. Duties
tasks and responsibilities often evolve in an ad hoc manner. A typical
firm starts with a few people often one performing all duties. As the firm
grows others are hired to fill specific roles often on a functional basis.
Roles that were handled by consultants and specialists outside the firm
now are handled internally. As new needs emerge new roles are developed.
Just as an emerging business develops an accounting system it should
also develop a human resource system. For instance the following employee
information should be available and checked for accuracy at least once
each year.
- Name
- Address
- Nationality (immigration status)
- Marital status and dependents
- Hire date
- Company job history:
- Title and code
- Performance
- Location
- Salary rate and history
- Education including degrees
- Specialty training
- Transcripts as appropriate
- Pre-employment work experience:
- Key responsibilities and levels
- Professional licenses or certificates
- Professional publication and speaking engagements
- Teaching experience
- Language abilities:
- Reading
- Writing
- Speaking
- Leadership evidence:
- Company
- Civic
- Other
- Relocation preferences and limitations
- Travel experience and preferences
- Career goals
Review your personnel files periodically to ensure that the information
is correct and current. Implement a system that will make updating
personnel files a fairly simple routine yet confidential process.
