If a manager does not perform the controlling aspect of the business effectively, then this again like all the other management functions I covered previously will end in a fall in company performance. A manager must be capable enough to measure performance because if they cannot do that then they will not find out how well they are doing in elements such as their productivity and quality levels of their produce.
Also once a manager has measured performance they must also be able to correct it accordingly – standards should be established by clarifying performance criteria. If a manager is able to acknowledge actual business performance against performance criteria then it will enable the manager to ascertain how successful a operation is.
All these core management functions are like jigsaw pieces which unite to form a puzzle (management) which each function being equally as vital as another. A manager has to be equally adept in each of these functions in order to be a successful manager. If there are areas or functions of management that a manager is particularly weak on, then this will have a poor reflection on the company’s performance levels.
Management Roles
Henry Mintzberg, Professor of Management at McGill University in Montreal specifically outlines that managers at all levels within a firm must carry out three fundamental sets of characteristics which are all the necessary ingredients of the job of a manager and which further helps improve business performance. These behaviours are as follows:
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The Interpersonal Role – This management role outlines that a manager’s role must comprise of a good figurehead, leader to which sub-ordinates must be able to relate to and feel inspired enough to work. It also includes liaison with external contacts such as suppliers and sources of data/assistance;
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The Informational Role – This role basically states that a manager must be able to collate information effectively, be a good disseminator & a spokesman on issues regarding organisational plans and results etc;
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The Decisional Role – This role calls the need for a manager to act as an entrepreneur, allocator of resources and a negotiator on behalf of the business so that they can come to some sort of reciprocated compromise with staff.
Regardless of the ranging roles of a manager as stated above, the roles of a manager in the modern business world are largely dependent relative on a manager acknowledging their communicational and leadership duties.
These two supplementary roles make sure that the work which is carried out within a business is relevant, executed well and is then further developed. Communication success has an enormous impact on the societal well-being of the various members of an organisation and is needed for task competence. This could help enhance business performance because all the components of an organisation need to establish what is demanded from them and how they and work groups are weighing up in concurrence to clearly understood goals.
Management Styles
Furthermore, I feel that the certain style to which a manager decides to abide by in the running of the organisation influences business performance to some degree. A style of management can be defined as to being the pattern of behaviour that a manager exhibits when carrying out a management role over a period of time.
An assumption can be made to a level that employees will work harder if managers employ certain styles. The most common types of styles are a tightly controlled approach, democratic approach or a loose laissez-faire approach. Below I have illustrated examples of styles of management, types of leadership and the key traits of each management style/leadership.
With reference to the table above, I feel that a 21st century organisation should be somewhat tailored towards a democratic style of management by a manager and should additionally incorporate a consultative type of leadership.
I have come to this conclusion because I strongly feel that unless a manager does not enforce/impose their opinions on he or she’s subordinates, then the overall performance of the organisation will suffer a detrimental effect. For e.g. the good aspects of a democratic/consultative approach by a manager will result in an increased production with regards to the mental and physical activity of workers because the manager will consult with their team before any decisions are finalised.
This will help improve business performance because the team will feel valued and empowered and that they are part of the decision making process. In turn, I feel that the workers will feel much more motivated rather than say for example a manager that conducts a tightly controlled approach which takes into account both autocratic and persuasive leadership styles.
In my reflection, I think that a manager carrying out an autocratic/persuasive style of management where they make no attempt whatsoever in involving their team in any decisions could result in the workers feeling isolated from the company and in particular from their manager – demotivation would most likely occur and a downfall of productivity may also take place.
In addition if workers do not have even have the slightest degree of input in decision making then they are going to feel demotivated and this might have a negative effect on their job satisfaction. Workers will want to feel as though they have some measure of say in the organisation and not feel as though they are overlooked by management as furniture.
In my judgment I feel as though lower job satisfaction would occur if an organisation employed any other style/type of leadership other than that of a democratic or consultative management style/type of leadership. Possible downsides of a company using any other mannerism of styles/leadership could subsequently result to the following occurring:
- Lower Sub-ordinate Satisfaction
- Higher Intergroup Conflicts
- Higher Labour Turnover Ratio/Grievance Rates
In relation, I feel that another component that forms whether or not the overall business performance of an organisation increases is a theory that is centred around motivation. Any manager will be a better leader for understanding what motivates their team.
Motivation is the strength of commitment that drives workers in what they do. Workplace motivation is concerned with commitment to an organisation and its aims and objectives. In view upon what has just been said, I feel that the role of management style will have a large influence on whether any given business will accomplish their aims and objectives. A theory based on management styles includes Douglas McGregor.
Douglas McGregor’s early distinction between Theory X and Theory Y approaches to management has proved to be an expedient that many managers can correspond to. McGregor was able to define a management style based on providing workers with a degree of autonomy concerned on personal trust. Theory X is a management activity/style that conveys that managers believe that they are in charge of their employees who need to be directed and controlled. The Theory X worker is therefore one that is a reluctant employee that needs to be pressurised and given extrinsic awards.
Theory Y contrastingly on the other hand though follows a somewhat opposite theory /belief and outlines that Theory Y managers believe in involving workers more, appreciating them more, and creating opportunities for them to make positive contributions through motivating them. This theory places a solid emphasis on team building activities too.
I feel that a manager should incorporate a Theory Y management style because although workers are not constantly pressurised, they are involved more in decisions. This could make them feel more appreciated and envied. Due to this the quality of goods/services and productivity levels are likely to increase and performance of the business would rise.
Teams
Team based activities within organisations play an imperative role as management tools that can be used to improve business performance. A reason why managers empower employees and segregate them up into teams is because groups of workers outperform individual members of staff – teams are flexible so they can respond to the changing needs and events within an organisation. Advantages of Teams are:
- High Output
- High Productivity
- Low Staff Turnover Rate
- Low Absenteeism
- Improved Quality of Output
- Minimisation of Stoppages
- Achievement of Individual & Group Ambitions/Aims
- Increased Motivation
- Improved Interrelationship between subordinates
- Lower Costs
- Increased Cooperation
The way an organisation can achieve effectiveness with regard to improving business performance in terms of teams is by ensuring that the following aspects are completed:
- Ensuring that there is trust between subordinates
- Making sure that there is a high commitment to the accomplishment of targets
- Leadership
- Constructive resolution of conflicts
- Encouraging mutual support
- Motivation
- Members working together to develop their abilities (cooperation)
- Sharing ideas
- Open communication using all channels of networks
Benchmarking
A benchmark is a standard or reference point. It is the management process by which came into prominence in the 1980’s which looks at analysing the best practices of a business in order to facilitate enhancement within the firm. David Kearns of (CEO of Xerox) defined benchmarking as:
“the continuous process of measuring products, services and practices against the toughest of competitors or those regarded as industry leaders”
The purpose of benchmarking is for an organisation to pinpoint a gap in a certain aspect of a company that may not be performing as well as it could be. Benchmarking will be most effective when a business identifies that performance gap and once action plans have been established in order to raise performance to a new standard set. Once having done that, continuous monitoring of the results will be needed in order to find out whether or not the performance activity/tool has worked. As the organisation’s best standard enhances, a further round of benchmarking will take place and so will too will development. Possible benefits of my chosen company – Sainsbury’s using benchmarking are as follows:
- It identifies “best practice”
- Can result in the continuous updating of performance thus, improving business performance over a long period of time
- May motivate workers as it shows them what could be achieved
- Serves as indication to provide a business early warning of competitors movements
- Forces companies to look at the larger picture – makes organisations endeavour to investigate outside the business rather than just focusing on themselves
- Is a practical improvement process involving learning from others
Benchmarking requires resources and will not work effectively unless there is commitment and determination from management and subordinates to implement change arising from the activity. The only drawback of benchmarking is that it could result in many companies duplicating others rather than being innovative. It could also be a time consuming process to monitor as the activity is monitored on a continual basis rather than for e.g. monitoring results in the short term.
Motivational Theories
In my opinion, I feel that the application of many motivational theories by theorists could also be used as an effective management business tool by an organisation to help improve business performance. A manager’s ability to motivate starts with the hiring of staff and is crucial to the success of any business. If an employee is motivated from within, then the “motivator” aspect of a manager’s job is less difficult.
Motivation Theories of the Early and Mid Nineteenth Century
Ivan Pavlov
Pavlov did extensive studies on classical conditioning. Classical conditioning is “a form of learning through association that involves the manipulation of stimuli to influence behavior. Moreover, within organisations, employees associate an action with a following action, and then they expect the following action each time the initial action appears. This is a natural reaction for some. Pavlov’s theory is difficult to argue with and is applicable today and probably will be for a long time for that reason.
Abraham Maslow
Maslow developed a “hierarchy of needs” or an order of needs that need to be fulfilled in each person. If a manager embraces Maslow’s hierarchy, he/she will motivate employees, keeping the order of needs in mind. This hierarchy of needs is shown on the next page.
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1.Self actualization – need to grow and use abilities to the fullest; highest need
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2.Esteem – need for respect, prestige, and recognition from others as well as self esteem and personal sense of competence
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3.Social – need for love, affection, and belongingness in one’s relationships with others
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4.Safety – need for security, protection, and stability in the personal events of everyday life
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5.Physiological – most basic of human needs; need for food, water, and sustenance
Using this theory, managers can use the hierarchy to motivate people by satisfying the most important needs.
Frederick Herzberg
Herzberg developed his two factor theory, taking a different approach from others. Herzberg argues that hygiene factors in the work setting are sources for job dissatisfaction. Also, he says that motivator factors in work tasks are sources for job satisfaction. His theories can be summarised by quote from him:
“If you want people to do a good job, give them a good job to do.”
The theory of Herzberg may seem a little vague, but it is based on good ideas I feel. The two factor theory may be as useful more than other theories of the time, because job context and content are major issues in the business world today.
Victor Vroom
Vroom’s expectancy theory argues that motivation is based in values and beliefs of individuals, or how a person feels effort, performance and outcomes. He developed an equation to calculate motivation using three factors:
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Expectancy – the probability that effort will be followed by personal accomplishment.
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Instrumentality – the probability that performance will lead to outcomes
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Valence -the value of an individual of an outcome
Vroom argues that a manager can use the equation M = E * I * V to predict whether a particular reward will motivate an individual. While the basis of Vroom’s expectancy theory is very good, the equation seems a little awkward today.
Recent Theories
Sheila Ritchie and Peter Martin
Ritchie and Martin developed a motivation management theory in the late 1990’s. The basic assumption is that the task of the manager is to find out what motivates people and to make them feel appreciated more and complain less. From literature and their own observations, they identified twelve “motivational drivers.” These include human needs for interesting work, achievement, self development, variety, creativity, power, influence, social contact, money and tangible rewards, structure and rules, long-term relationships, and good working conditions. They then developed a motivational profile survey with thirty-three questions.
Knowing an individual’s profile, a manager can then tailor a motivation method for that person. For instance, if a manager is considering giving an employee a raise and their profile shows that creativity and variety motivate this person, then the manager should reward accordingly, not with a raise. Ritchie and Martin claim that each of the twelve drivers is independent of the others. The motivation management theory of Ritchie and Martin would be classified as a content theory which suggests that motivation results from the individual’s attempts to satisfy needs.
Comparison of the Old & Modern Day Theories
Both generations of theory have strengths and weaknesses when compared to each other. Ritchie and Martin’s study is based on current data that is more credible in today’s business world, instead of data that is fifty to sixty years old. Motivation management can also serve as a tool for self analysis and for individual or group motivation profiles. Ritchie and Martin also recognised that a wide range of individual differences would be more appropriate for firms to use today rather than one universal approach. Maslow and Herzberg both argued that their respective theories applied to everyone.
Lastly, it offers a guide for managers who are seeking to improve individual and group motivation. Ritchie and Martin advise managers to focus on the motivational profile of the person, regardless of occupational or cultural background.
The factors of the older theories are based on evidence, and Ritchie and Martin’s twelve drivers seem to be subjective. Sampling in the older theories I feel is generally more diverse. Motivation management is based on a study of all managers of training programs. In addition, there was no mention by the group of managers of the basic needs such as food, drink, sex, and security. Many parallels are apparent in the motivational factors of motivation management.
Motivation management in improving business performance is a modern, practical approach that will be useful to managers. In reality, motivation management does not take much into account to the theories of Pavlov, Maslow, McClelland, Herzberg, and Vroom. It seems to borrow a little from each of their works on motivation.
Motivation is a continuous challenge among managers today. The problems and solutions to motivation problems can be complex to say the least. Tools and ideas are available to managers and leaders to help with motivation. Businesses having some of the motivational theories as a feature such as Herzberg, McClelland, Vroom, Pavlov, and Maslow can provide ideas and solutions to motivation problems. Motivation management and the individual motivation profile are also useful tools in discovering how to motivate certain individuals.
In my view, I feel that managers that utilise tools such as TQM, Benchmarking, carry out their business management with a Theory Y and a democratic management style will all contribute significantly in improving business performance. In specific I feel that a large proportion of improving business performance is dependant on motivation so unless a manager is able to motivate and influence their subordinates they will not improve performance as they will feel uninspired.
http:// www.management.com/definition
An Integrated Approach to Business, Bruce R Jewell
http://academic.emporia.edu/smithwil/00fallmg443/eja/young.html