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Penurious Management Skills1 PENURIOUS MANAGEMENT: Causes and Effects and Strategies for Improvement

A Research Project Presented by Andrew Jarafu Afakirya

To Sharon Wulf

in partial fulfillment of the requirements for the degree of Master of Management

Cambridge College Cambridge, Massachusetts December 2010

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This is an unpublished Research Project in which copyright subsists Copyright by Andrew Jarafu Afakirya December 2010 All rights reserved.

Since this manuscript is not intended for publication, some of the charts, graphs, photos, pictures, and drawings were used without permission of the authors. This copy is not for distribution to the public.

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Acknowledgements My greatest appreciations go to professors Sharon Wulf, Catherine Seo, M.S. Rogolsky, and Sharon Cynthia Kar, all of whom have helped and guide me throughout my research; they showed support and encouragement in my times of worries. Also to all my colleagues in class who gave their support and assistance.

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PENURIOUS MANAGEMENT SKILLS: Causes and Effects and Strategies for Improvement

Andrew Jarafu Afakirya December 2010 Abstract This paper examines the effects, causes, and relevant solutions of poor management skills. It examines poor managerial skill as a negative impact in an organization, in a firm, and even in countries, and its catastrophes. This paper views poor management skill as a universal problem and studies its solutions and cures. It highlights the importance of effective management. Businesses rely on skilled leaders to maximize productivity to be effective and efficient. Without paying attention to managerial details, many companies are unaware of the dangers they face. Poor managers lead to the deterioration of the entire company or firm. This article provides information on how to recognize poor management skills and develop managers abilities before the business fails. I researched previous articles, watched some news broadcasts about the situation, analyzed the information, and searched for solutions on the matter at hand that other great scholars have used.

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Table of Contents Acknowledgements.............................................................................................3 Abstract...............................................................................................................4 Introduction.........................................................................................................6 Problem statement...........................................................................................6 Goals and Objectives.....................................................................................9 Literature Review..............................................................................................10 Introduction...................................................................................................10 Methodology.....................................................................................................15 Discussion.........................................................................................................15 Causes...............................................................................................................21 Effects...............................................................................................................26 Strategies for Improvement...............................................................................33 Conclusion .......................................................................................................51 References.........................................................................................................52 Resume..............................................................................................................56

Penurious Management Skills6 Introduction Problem statement What are managerial skills? Longhorn dictionary, an online resource page and search engine, defined managerial skills as, in most cases, the secret tools in hand of any manager. They are abilities that vary with different kinds of people. Some of these skills at taught in business training while others are not. Managerial skills include communicating, making decisions, building team effort, resolving conflicts, improving leadership, and so much more. Managers or individual have authority over tasks or other individuals; they have the power and responsibilities to decide, solve problems, and so on. When these individuals fail to accomplish their tasks as a result of a lack of professional ability, they are certain to bring the organization down. This is called penurious managerial skills (R.M.S). It can be said that managers or leaders must be able to have managerial qualities and their work and duties should only be towards making the whole organization as well as the whole working environment and staff better. A good management system or manager must at all times be able to operate the institution as smoothly and easily as possible for the better management of the business. Poor management of a business can definitely be noticed in a person who has the habit of not performing of his or her tasks like a professional or a person that combines his personal life with his work life. Sometimes, poor management leads to the lack of task completion on a timely basis; it discourages employees, promotes reduction in job ethics, and in some situations can lead to embezzlement of funds in an organization. According to a recent Gallup 2006 study, only 29% of the workers polled were actively engaged in their work.

Penurious Management Skills7 The really scary information from this poll is the fact that a full 59% of the workers polled stated that they were simply sleepwalking through their day. They were showing up to work to put in their time, but they felt no connection with their companies and therefore no remorse over the fact that they were not performing to their full ability. On top of that, 14% of the workers polled said that they were not only unhappy in their jobs, but that they were actively working to sabotage the efforts of their colleagues. These workers are showing up to work but cost the business money. So, why is this happening? Well, according to Gallup studies, a full 84% of people polled stated that they believe business executives have, at best, mediocre ethical standards (rating just above politicians, car salesmen, and telemarketers.) In addition, 20% of people polled were dissatisfied with their immediate, front line supervisor (Gallup, 12 October 2006). One of the biggest threats in or within any organization for the most part is the problem of bad managers, leaders and supervisors. Another bad fact of poor managers is that they will attempt to make known their decisions and opinions based upon observation, but they may at times back down when they are faced with a conflicting confrontation. This will generate a sense of distrust and uncertainty among their employees because the manager or leaders will speak what they have on their mind, but will not perform to what the superior boss wants. By doing so, employees will not be sure what to do or to know where they stand, which will create a loss of time and energy because employees are trying to figure out their task rather than working Knowing why and how organizations fail as a result of incompetency or poor managerial skills or strategies can be a great difference between goal attainment, success, and deterioration or destruction of organizations, firms, companies, countries

Penurious Management Skills8 and even the lives of employees. Having a great amount and advanced knowledge of exactly what kind of poor managerial skills put organizations at risk is very useful and can be of great advantage towards goal and objective accomplishment. Knowing this, we can be able to know what methods motivate employees and what discourages them. Also, understanding poor managerial skills and how to avoid them will make a working environment that would encourage staff to participate. How do managers increase the output level of each employee and make them perform to the maximum level? How do managers increase customer satisfaction? How do managers recruit new and best employees and keep them? How do managers train or train the companys employees to able to resolve problems and make the right decisions all the time? All of these questions depend on the type of high quality skills that a well trained manager or leader has.

Penurious Management Skills9 Goals and Objectives The essence of this research is to bring out facts and detailed information on the level of poor management, its causes, effects, and solutions. Another goal is to create awareness for the world on what is done within organizational environments and governmental institutions as well on poor managerial systems. Another objective is to indicate and present the effects of poor managerial decisions and how they affect firms negatively and nations domestically and internationally. Also another reason for my research is based upon the disadvantages that ineffective leaders with penurious skills and how those poor skills anchor individuals, firms, and even countries, when those leaders are meant to manage effectively but rather are not. Finally, the last objective is to recommend strategies that would help and improve organization mismanagement and how these problems, penurious management skills, called R.M.S., can be attacked. Population. The population in regard to this paper looks at managers, CEO, and leaders holding positions of autonomy and regardless of that are inadequate to perform their functions as a result of R.M.S. Also, firms as well as staff will be examined.

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Literature Review Introduction When a manager is appointed, before he or she moves into that position, there are various or certain basic managerial skills that he or she must attain. These skills that managers ought to have are the tools and implements that will allow and guide them towards running an institution smoothly, effectively, and efficiently. Skills learned by managers in organization can also be considered the most valuable assets. Penurious managerial skills can alter the success of an organization, and they can lead the downfall, deterioration, and liquidation of an organization. Ineffective managers or managers who have poor managerial skills will only contribute negatively to the organization. To avoid these terrible down falls, there are certain basic skills that were developed in order to prevent organizations from destruction. These are meant to guide managers or managers are meant to have these skills to be able to run, manage, control, and lead and guide the organization to goal attainment. They are technical skills, human skills, and finally conceptual skills. These three are the basic elements that any managers must have in other to reach the goal of the organization. Technical skills are the abilities required and needed in other to perform any task to the maximum efficiency. Good examples of technical skills are using the modern day computer, knowing how to use Microsoft Word, Excel and PowerPoint, writing legal documents, knowing how to draft business contracts, being able to understand and analyze marketing statistics, completing accounting statements and in some cases writing computer programs. Some managers may not have all the

Penurious Management Skills11 advanced technical skills, but there is the on-the-job training towards offering some technical knowledge, most of which are related to the organization. Human skills, however, involve ones ability to encourage, guide, direct and motivate a group of individuals of an organization. These skills involve interactions, being able to understand one another, and relating with individuals, such as coworkers, employees or even superiors. Managers must be willing and able to have the human skills in other to bring the organization together towards the accomplishment of the goal. These abilities involve having the right communication skills whether in writing or speaking. This ability creates the right and positive atmosphere. The third in line is conceptual skills. These skills include the unique ability to understand problems of complexity. Understanding complex situations, being able to make them less complicated to others, and finding less sophistication towards solving them will lead to the best course of action. An example of conceptual skills is when a manager understands the marketing strategy of competitors, understands which department of their organization affects productivity, and understands legal issues and laws that affect hiring in an organization. Penurious managerial skills can cause the decline of employee morale. They can lead to extensive levels of stress for employees and also other unhealthy conditions. A managers level or style of leadership varies from one institution to another. However, all managers should have the ability to be skillful and to possess basic technical, human, and conceptual skills. Also timely issues such as leadership development as mentioned in the book Leadership Roles and Management Functions in Nursing: Theory and Application include staffing, delegation, ethics and law, organizational, political, and personal

Penurious Management Skills12 power, management and technology, and more. Also the need for visionary leaders and effective managers in nursing precludes the probability of stressing one role over the other. Highly developed management skills are needed to maintain a healthy organization. (Marquis, B. 1992) In the nursing sector of work there is an extreme need for a manager to be very effective, skillful and qualified. It is quite important, in areas of professionalism that the concept of a skillful manager is needed. It determines the quality of work and the performance of excellence. Not only should an individual acquire the senses and qualities of skillful managerial skills, but also the qualities of a good leader. An article by Microsoft business center stated Poor business decision making is the most common contributor to business failures. Businesses seeking to improve their productivity over the coming years should consider investing in the development of management and leadership skills. (HCA, 12 Mar 2009). The aspect towards making the right decision in an organization is in the managers capability of high standard managerial skills. His level of ability to perform effective and efficient lays within his qualities as a leader and manager. The articles refers to whereby in a situation if any economy is processing and its a chance for an institution to take advantage of the chance, those institutions with poor managers will have a very hard time or will be difficult for them. This is an example indicating the importance of having a quality skilled manager. The author also indicated that if managers are well educated with the right skills and knowledge, the can be able to handle any situation that arises. High investments are needed towards the education and skillful training of managers. Another case regarding the managerial skills was in the United Kingdom pole study which says half of the reason why individuals leave and change jobs is as result

Penurious Management Skills13 of having a bad manager. forty-nine per cent say that under less drastic circumstances, they would rather take a pay cut than work for someone who made bad decisions. (Sky blue 10, November 2009). Having an incapable individual in change of an institution may not only result in the organizational downfall, but also a significant amount towards employees resignations. This situation can cost towards the loss of assets (staff) and many more. Is also an indicator warning that staff chooses unemployment rather than working with a penurious skilled manager. What does this pole indicate? It means that adequate and skilled managers play a vital role towards employees decision to work or retire from an institution. Moving to Asia with negative image to a company as a result to poor management was regarding contaminated milk. In 2008, China suffered one of the worst food safety incidents in history when tens of thousands of milk products were infested with melamine. This contaminant affected over 300,000 children and was the cause of six infant deaths in China. Government investigations revealed political corruption had inhibited the ethical production of the milk products. (M. Bullard 2005). If proper managers with the right qualities where placed at that moment in time, the event might have been avoided from that start. Maybe the manager in charge was qualified; still, they allowed such a problem to occur. To a manager, every process of production most be vital and a priory due to the fact that the safety of individual lies in their hands. If quality leadership and skill decision making were present, an accident as this would have been avoided. The negative effects or penurious management skills could be of deserter to so many. Managers should never slack down no matter how perfect they think they are at their job, because every decision they make, affects many.

Penurious Management Skills14 A good characteristic effective manager are extensive says James Ford of eHow contributor todays managers are skilled communicators, decision makers, motivators and guidance counselor who provide goals directions towards them (James Ford n.d) these qualities encourage, motivate and guides employees to reach their objectives with hope. Managers who attain these qualities are individuals that reach the vision of its firms and are able to meet the needs of its employees.

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Methodology This research is based on upon credible resources such as online news papers, scholarly articles, books, internet websites, the Cambridge online library, Boston public library, World Bank archives, BBC news archive as well as documentary videos as well as the Wall Street Journal.

Discussion

Penurious Management Skills16 Different organizations have several methods of dealing with its problems, as well as having its own unique requirements for all managers. But in most institutions, there are similar characteristics in regards to managerial skills. In managerial organization, is it absolutely very important for an individual who as the authority at that moment in time to acquire the elements of being technically skilled, conceptually skilled and humanly skilled towards a task process. Having these qualities may not only help a manager success within or outside an organization, but also could gain the respect of his or her employees. He or she may build a solid and unbreakable reputing for themselves. Having the technical skills proves towards the concept that there is a tremendous chance of a manager to succeed than to fail. The technical skills will put the manager in an outstanding position, getting better understanding and advantages over matters that deals with any technical or computerized situations. The human skill is very important also, due to the fact that it can bring staff members together, and work in harmony. These human skills assist the manager in organizations by bringing of one another the employees and superiors together. Human skills help to bring the organization as one, working together as a team to archive greatness. It also assist a manager to maximize the human resources more efficiently and effectively. And the conceptual skills will help towards the understanding of the interrelationship or ideas, talents and even innovation in an organization or firm. With this conceptual skill, the managers can be able to understand the matters at hand within subunits and also to think better while formulating the best strategy for a situation in complex situations.

Figure 1.

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Conceptual Human

Conceptual Conceptual Human Human Technical Technical *

Technical

Supervisory level Middle mgmt level Top mgmt level (By Institute of Rural Management)

Penurious performing managers can be found in organizations and businesses where goals are not met, adequate planning is not constructed well, absence of work ethics and poor performance by employees. Without better managerial skill, the level of human resource management will defiantly be low, wasteful use of time, energy and high cost. Lack of adequate managerial skills leads the organization towards a pit of failure, regrets and negative effects are the outcomes. These elements are back bones towards the success of the firm. Failure in completing their managerial duties is due to the lack of technical, human and conceptual skills.

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Lack of adequate management skill is considered to be one of the most important factors that contributes to the decline and termination of businesses around the world. The failure of being a skillful and well-trained manager is a disadvantage to an organization and a business. Based upon a recent study, analysis states both the internal and external reasons of business fail in the world wide. Based upon the survey data information released by Seton Hall University, about 2000 organizational executives were interviewed. The purpose of the survey stated was to find out internal and external reasons why organizations fail in the present economy as a result due to poor managerial skills. Based upon the survey information released which was, of the eighty seven percent who responded to the survey mention that internal and external factors are to be blamed towards an organization failure to succeed( Seton Hall University). Mostly who lack the necessary conceptual, human and technical managerial skills. Due to lack of inadequate managerial skills and proper strategic organizational planning failure is unavoidable. To many, this can be considered as an example indicating the crucial importance for a manager to be equipped with the proper managerial tools. Another study by karolinska Institute, a medical university located in Sweden conducted a survey on penurious managerial skills resulted that employees of or staff a liable to take or do take more sick leave from work due to poor management. Some of these individuals have claimed of having medical conditions such as heart attack and many. The impact of this survey clearly transmits information in respect to the conditions and chaos that poor management leadership skills bring within an organization. Based upon the study a data collection of about twenty one thousand workers over Swede, Germany and Poland were collected and mentions how in time

Penurious Management Skills19 as of case may be, that staff over time will complain of stress and other medical symptoms and even time to severe hearth conditions as to Penurious management skills. The study all noticed that of those who have good relationships and comment positively about their own manager skills had less sick leave and fewer medical conditions such as the hearth attack. These managers may in some cases use the theory X or Y management style and could result in the current situations. Also for those who ranked their managers with high remarks, praise and positive comment had less medical conditions. A manager who has a diminishing, low, or even zero managerial ability is due to lack of the requirements such as: Lack of having the ultimate communications skills which is a magnet connecting department, division and individuals. Isnt flexible, cant adjust to any new changes or situations that arise which needs change, upgrade or even an adjustment. Cant work under pressure, which is a basic expectancy handling the position of a manager. Not being a team player, managers who do not trust their workers and play as an individual not as a team, has already failed to start from. No working ethics. Not being motivated, energized and dedicated to the job, will lose interest in the job as time passes by. No problem solving techniques, incapable of solving conflict at any time

Penurious Management Skills20 No Confidence, not to believe in what he does will lead to not believing in the goal, vision and objective of the firm. Feedback collection which is very important. A manager who cannot generate or create a nest for him to collect criticisms from others will have failed as a leader.

Penurious Management Skills21 Causes Different organizations have different methods of achieving their goals. The causes of poor management in those organizations vary also, but there are few that are very common to all these organizations. Problems that block firms from achieving their goals, making profit and so much more are listed below. These causes of inefficiency to a firm are as follows.

Inadequate communication skills (Lack of clarity). As we all know, communication plays a vital and important role within an organization. It is an act of passing down or through information from one sector to another or person to person. For a manager, he or she needs to acquire this skill to the highest level in order to run the organization or firm smoothly. Communication is a very unique fundamental element need in other attain maximum performance, goals and vision. The need for good communication skill is a cap between chaos and harmony. Passing down of clear, understandable and interpretable information from one section of an institution to another is very important. In an institution where by the absence of good communication exist, is sure and certain to be in either conflict, stress, disorganized or is probably deviating from its main objective. To a manager or leader, he or she needs to understand their staff and vice versa Presence of adequate communication skill will certainly assist a manager in performing his or her task efficiently with little or no regrets.

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Low educational level. In some organizations managerial positions are given to individuals not as a result of their qualifications or educational level, but rather due to their connections with the CEO or one another. That can be fatal in some situations. Some managers may hold positions in which they are not qualified for or are not educated enough to handle a position that requires a tremendous amount of skilled knowledge and intelligence. The end results of these managers normally are poor performance and cost to that institution in some cases the country. An article By Sunday Oguntola by a Nigeria publishing sector called The Nation in 2010 quoted Nigerian leaders are uneducated in the art of leadership. His article explains that due to the lack of education by Nigerian leaders and their art of leadership, they exploit the offices for their own personal gain rather than for the public, and the end result is lack of development, food, medical facilities, better roads, infrastructures and many more.`` Lack of vision. Vision, as we all now know, has many meanings to different individuals, but to an organization vision is being able to know, determine or see where the institution will be in a certain estimated period of time. All firms have visions, and that diversifies them from one another. An organization manager should have always have an attainable goal and a vision for his workers. Not having a vision simply means leading others blindly and having no direction or goal, which is basically the first objective of an organization, Lack of specialization. The breaking down of work tasks or processes into different sections so that each area can be handled and run by a specialist is defined as specialization. This process is very common in organization; its aim is to speed up work, to save time and energy, and most of all to have efficiency and maximum

Penurious Management Skills23 performance. Managers when getting their degrees, either a bachelors or Masters, should specialize in a certain area that they know exactly how to operate, in ways that they are the professionals and know exactly what he or she is doing. In some organizations, managers are not specialized; due to this their performance rate, and result is very low. Specialization plays an important role towards the goal accomplishment of a firm and should be taken serious and carefully. Poor planning. By longhorn dictionary the definition of planning is considered as the organizational process to creating a plan, a psychological process of thinking about the activities required to create a desired goal on some scale. Time is a resource for professional and career success, a common saying is if you fail to plan, plan to fail. Without adequate or proper planning, it will be very impossible or very hard to know what it will take to accomplish a goal, vision or task successfully. Without planning it is very difficult to have a clear picture of what one is working toward. Planning enables managers and organizations to think towards projects and tasks and also to understand what really needs to be done in their project or goal completion. Inadequate planning generally could lead to poor, execution, preparation and unplanned problems. Managers who fail to or who lack the talent to plan will be destined to fail and are poor leaders. Planning is by far the most important step in time management. Every moment spent planning can save three in execution with time, energy, resources and most of all money. Without plans, one is more likely to end up distracted with the unexpected and priorities may not be clear enough. Problem solving technique. In so many situations conflict is unavoidable in organizations; we have seen different types with different goals and objective working under the same roof or teams. In cases such as those, conflicts are expected to arise. No matter what the case may be, as long as the situation is resolved or is being

Penurious Management Skills24 handled, it will always lead to the development and growth of that organization. In so many situations conflict resolution skills can be the key difference between the positive and negative outcomes of an organization. The truth is that to have great conflict resolution skills can solve many problems. It can also bring people together to work peacefully and in harmony. Managers who dont have the ability to resolve conflicts are not capable to moving the firm forward towards growth and development. These conflict styles are many, but there are four basic styles that should be remembered. They include: Avoidance- accepting default decision and not wanting to hurt anyones feelings, which classified as the best techniques. Accommodating- meeting the needs of other people at the expense an individuals needs. Competitive- can be considered as persuasive ability. Collaborative- trying to meet the needs of everyone involved.

These style of conflict resolution are necessary and required by an organization. Lack of such ability by its leaders will only cause a negative effect or termination of a firm. Leadership skills. Leadership capability is a fundamental element towards becoming a top star manager, it is the act of adequate managing, planning controlling and leading an organization towards its goal. Most managers perform poorly as a result of absence a quality leadership skill. The need for a manger with the right and proper ability to lead is very important in making an organization successful and to flourish. Without the right and proper individual with the needed leadership potentials, failure is unavoidable. Employees and staff members need a manager who has power, dedication and strength to meet their needs and organizational goals. Anyone can be a leader but only a good leader can have the proper skills towards goal attainment.

Penurious Management Skills25 Every manager has his or her way towards reaching organization goals, what makes each of them distinguish from one another, is who reaches their goals effectively, efficiently while minimizing cost. Lack of discipline. Discipline is very important to everyone even a child. To be a disciplined manager will give one a backbone that will help one know how to make good use of everything he or she has to the max. A disciplined manager is an organized manager and can be reliable and work hard to reach his or her destination. Without a disciplined manager, employees will have no respect for their bosses and will be slacking in work. The disciplined manager will know how to combine all the factors of production, land, labor and capital to their best use.

Penurious Management Skills26 Effects Poor management puts organizations, firms, and even institutions at a high risk of ineffectiveness and possibly failure. Recent studies showed that managers without the right skills are one of the major reasons why institutions liquidate. A good manager always ensures the smooth running of an institution; a poor manager who does not have a good knowledge of the everyday activities within a firm will not be capable to intervene and make sure that standards are being met. The effects of their incapability to perform or have the required talents are as follows. Decline in productivity. Every business wants to be successful and productive, but when the manager or leaders do not acquire the necessary skills, they are destined to fail. It is important to know that decline in productivity is the first sign of the negative effects of allocating managers without the proper skills or qualifications. Destroys the Foundation of an Organization. The foundation of an organization is how the firm is structured. The life span of the firm depends on it. If the recruit of the right person with the adequate qualification is not established, the foundation itself will crumble without a doubt. Weakens the Institution. Organizational strength is a contributing key element towards the survival of an institution in a competitive market. It is the backbone and fuel towards achieving a any goal regardless of what it may be. Constant activities and procedures are required to maintain this strength, and without the right leadership having the proper skills and knowledge to keep that strength alive will only lead to the down fall of the firm. Weakening of an institution occurs when updates are not made, work is sloppy, and the leaders or managers are unable to meet standards.

Penurious Management Skills27 Decline in employees motivation. A manager should at all times be able and willing to encourage and motivate workers making certain that they are present at work and are productive to the maximum. A manager does not have the ability to motivate others if he or she is not motivated. If a manager is not motivated, he or she will pass the same the behaviors to their employees. Managers who do not give acknowledgement where it is due, especially to stressful job positions, will lose the morale and inspiration of that staff. If adequate praise is not given, there will be a declining rate in the motivational level of workers and when that happens, a persons interest on a task will be lost. Managers should be individuals who are very persuasive in motivating staff because without motivation there will be a lack of work dedication, and productivity will only be for short periods. Strike. As a result of poor management abilities, there could be protests demonstrated by the staff which includes a strike. If employees are not treated properly and respectfully by managers who lack the ability, a reaction will be certain to occur. For instance, as previously stated, acknowledgement needs to be made where and when it is due. If employees deserve to have a raise, an increase in salary, fewer working hours, or even more benefits such as health care or working conditions, a skillful manager should always know when and where to provide such rewards or benefits. Staffs need to be maintained just as an automobile needs to be maintained; if not it will break down on the road and leave one stranded. Just as that car breaks down so do workers and the end result may be a strike or even something worse. Discrimination. In todays modern and globalized society, a problem that has been faced is discrimination at work place. It could be discrimination against gender, race, or other factors. Managers who tolerate any act of abuse are the partly considered to be the cause of work discrimination. Managers who fail to establish a

Penurious Management Skills28 firm consequential or even hard punishment for any sign of abuse at the work place should be held accountable. The presence of discrimination at work can also be a sign that, in that institution, there arent any rules and regulations established by the leaders and that could lead to so many results which includes law suits. An effective manager must at all times know how to deal with internal problems before they get out of control. A statement made was most experience a workplace sometime in their career where the reflection of poor management prevents the organization and employees from reaching optimum production. Poor management minimizes production for any organization. It does not mean that the unit cannot survive, but it may never reach optimum production (K. Kennedy 2010). Poor management is a waste of business time, energy, and even resources. Lack of Managerial Practices and Duties. The level of competency of managerial practices such as knowing the duties of a manager within an organization is very important. They include time management, adequate planning for the future, motivation, and so on. Disorganization. Firms that are organized and structured as professional industries may benefit and enjoy the financial success and growth because the firm is well bonded and coordinated properly. A loose organization that is not handled properly will not grow nor be profitable. Absence of talented managers to know the responsibilities and the need to distinctions among the work task, division of labor, authorities and whatever that is required will only lead to the disorganization in a firm. According to the National Bureau of Economics Research a 2008 research survey report on management practices score graded and ranked countries across the globe indicated high and low level of managerial practices. (N. Bloom and V.Reenen 2008)

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Penurious Management Skills30 Figure 2. Management Participation Ranking around Countries Diagram by (Bloom & Reenen, 2008)

Countries average management scores from 1(worst Practice) to 5 (best practice) Averages are taken across all firms within each country. 4,423 firms were in observation. The graph projects that the United States has the highest score of managerial practices on average, while Germany, Japan and Sweden follow next. After we can see that France, Italy, the United Kingdom and Poland follow also in rank. China, Brazil, and India are at the bottom which indicates a need for more managerial practices that are required for the betterment of the organization. In some way this is not new because it approximates the cross-country spread of productivity. In other sense it indicates that adequate, frequent and more managerial skills and practices could help towards determining a countrys level of productivity.

Penurious Management Skills31 Figure 3 Management Participation Ranking around Firms (N. Bloom and V. Reenen 2008)

Firms average management scores from 1(worst Practice) to 5 (best practice)

Poor or Inadequate Control Over Cash Flow: A managers control or utilization of the cash flow is very crucial in sectors that include payment for administrative and associate personnel, billing, rent ,and so on. The spending and amount of revenue received starting from the first day of transaction must be properly maintained and controlled by the managers. During work a manager should be able to perform well in handling the money flow because it is very important. Not doing so properly will only lead to problems such as overspending, inadequate investment and even shortage of cash for research and development. While in other institutions it

Penurious Management Skills32 could result in loss of jobs for the employees due to insufficient amount of money to pay wages and salaries. It could also lead to budget cuts and well as benefit cuts. Vague Practice of Objective: Vague practices and objectives are certain to occur. It is a simple indicator of the absence of proper direction and coordinations. Lack of managerial skills and adequate planning will tend to lead to wasteful utilization or resources. For an institution or organization that wishes to attain its goals, objectives and vision, the organization should be well structured and identifies it objectives clearly or negative outcome will come to past. Replacement of Short-term Goals for Long-term Goals: Having poor management ability will defiantly interrupt the process of the reaching long-term goals. If the is absence of properly skill intellectuals as managers, there could be easy deviation from the main objective set in mind with a new short and probably costly goal. So it essential always stick a specific objective. Inadequate Use of Human Resources: Without enough ability and knowledge of allocating resource to the right place at the right time, waste un-utilized human resources will occur. There would be the absence of job clarity and also role definition. Many organizations do not make the maximum use of their HR which is considered a waste and cost.

Penurious Management Skills33 Strategies for Improvement

Provision of on the job training or seminars: In todays managerial organization, on-the-job training is considered as one of the basic ways towards enhancing staff ability to perform well and efficiently in their assigned area. This act can be very useful when dealing with poor managerial performance. On-the-job training and seminars will assist these managers towards being better at what they do. It can be costly in some cases, but if the cost is worth the future benefit, it is normally implemented. On-the-job training will assist the assets (managers) which do not want to lost, to becoming star performers. Not all the time, this strategy can be effective, but it is an attempt towards improvement of not only employees abilities to work better, but also managers. On-the-job training figures out the weakest point and area that needs improvement in a manger, it is tool used when great potential is seen in an employees capability to evolve and perform wonders. This process not only helps that individual to grow, but also helps the organization determines areas to specialization of the individual. First-time managers often encounter problems and organizational conflicts, this strategy not only helps in sharpening their managerial ability but assists them in being comfortable working in their new environment. Termination: Job termination is always being considered as the last action to be taken when dealing with penurious managers after a warning, job termination is last option, it may not be the best method to be used, but it helps towards the getting rid of the organization problem or anchor. Job termination sends a message out to other staff members of the organization who are performing poorly at their job, to start performing better or there is price to pay. It is symbolic messages telling other members of the firm to work harder while being the best at what they perform or out

Penurious Management Skills34 they go. It is a wakeup call to slacking managers who are behind their work and need an extreme improvement in their day-to-activity in other to still maintain their jobs.

Reward Increase: Establishing a strategy plan towards job rewards increase not only to employees but managers, is very essential in recruiting, training, reaching organization goals and objectives along side with maximizing profit and minimizing cost. It is a fundamental factor that ignites, motivates and pushes an individual towards performing at extra high level. By increase in rewards to managers, such as increase in wages and salaries, a promotion, a free all expensive paid trip, health care and many more will encourage managers towards improving their skills in becoming better managers and leaders in an organization. It is considered as an effective measure towards performance enhancement in an organization. Increase in rewards will challenge managers to work harder and compete towards goals accomplishment. Increase in rewards will definitely enhance performance due to something is at stake. Change the Institution Program: Not all the problems of ineffective managerial skills are to be blamed on the managers. It could be that the programs or the system in which the organization is being run is at fault. Some institutions may have a very poor execution for plans that have been used for decades, and in modern society things change rapidly. The manager may have all the proper abilities to perform effectively, but may be stopped as a result of the organizations culture. By changing the ways things are being done in the organization, it is very possible that the manager may be able to provide an outstanding result and contribute new and modern plans that yield profit or goal attainment. Enhance Recruiting Process: To avoid any problems in long run in an organization in regards to poor management skill, one of the best options is to modify

Penurious Management Skills35 how recruiting is carried out. Tests should be more complex, qualifications required should be high, and also the level of experience should be sufficient enough. Organizations should avoid handing out managerial positions to friends or associates that are not qualified to avoid any problem in the future. This process will ensure that the organization maintains staff quality. Enhancing the recruiting process will ensure the organization has the right individuals for the right job.

Adequate Training on Technological Use: The world we live in today is globalized, and it changes every single day. We depend so much on technology in the twenty-first century that new technological inventions are made every day. Those who lack the ability to stay updated in the use and understanding of the modern day technology will defiantly be left behind and will find it extremely difficult to perform task. The use of technology is important in organizations; some skills are required in the use of Microsoft Excel, Microsoft Word, PowerPoint and so on. Competitive firms try to be better than their rivals in aspects of using technologic ability to their own advantages. A manager who lacks this ability is set to be doomed in the modern business world. So excluding regular training in the work place, managers should have a unique understanding and literacy in the uses of modern day technology. The ability to use technology will increase the productivity and enhance competiveness.

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Penurious Management Skills37 Other Alternatives Towards Identifying Poor Managerial Skills and Performance.

Now also there arise several methods that could help the organizations identify where managerial skills are lacking. This method includes an analysis called SWOT. Created by Albert Humphrey, it stands for Strengths, Weaknesses, opportunities and threats. It was designed for making decisions, solving institutional problems and for strategy formulations. SWOT is divided into two sections, external and internal factors. Net MBA defines the external factors as ``an internal analysis, a comprehensive evaluation of the environment within an organization most commonly known as strengths and weaknesses``. Based upon the SWOT analysis, there exist both the external and internal factors. These factors can affect the organization both negatively and positively. The internal factors are called the strengths and weakness. Strengths, what the organizations is strong at, their competitive advantage, it could include innovation or new marketing strategy plans. They can also be controlled due to the fact that it is an internal affair. And weaknesses are internal factors which can also be controlled, but places the firm or institution at a disadvantageous position, such as low level skilled workers and inadequate usage of resource. These things happen within the organization and are within our control. The opportunities and threats are external factors and in most cases we have no control over, but sometimes we can take them to our advantage. Opportunities could be a new market opening; it could be anything that we can take advantage over. And threats, they are like governmental rules, regulations, and our competition. A skillful manager would know how and when to make go use and take advantage of these factors. They would know how to read and interpret these factors,

Penurious Management Skills38 learn what to avoid and how to benefit from them. Every firm most conduct a SWOT analysis, know how to make use of it, to also solve institutional problems either is conflict or inadequate employee performance. The SWOT analyses will defiantly help towards identifying or solving the problem of penurious managers. Using this element, the organization can identify what the manager lacks in his ability to provide his service properly, and if incapable, the SWOT analysis can also assist towards deciding what measures needed to be taken to resolve the situation, either by job termination of the manager or relocating him to somewhere else where his expertise can be very useful and essential. An example of how the SWOT can be used to solve a penurious managerial problem is, imagine in a software company, an appointed manager of certain division is incapable of the managerial his task. His actions have resulted in several cost and lots of organizational resource, in some firms that might lead to job termination. That individual may not have the managerial ability, but might still be very useful in another sector or division within that organization. The SWOT analysis to identify his strengths and weaknesses can help determine where his expertise might be more of a use in any division rather than termination which could be a loss of asset. He might be demoted, but could still be productive somewhere else but not as a manager.

Penurious Management Skills39 Figure 4

(SWOT diagram from North words)

The idea of using SWOT analysis is to the help the organization identify where the firms are insufficient with managerial skills, why it lacks this ability, who is to blame and what measures should be taken to solve the situation. Also SWOT provides opportunities that could be gained when handling the situation because wherever there is a problem in an organization, an advantage can always be derived from solving it.

Penurious Management Skills40 Requirements for High Performance Management The well known qualities of a manager are

Figure 5

Diagram from Flat World Knowledge

These qualities should be attained by all managers. They are the basic skills in which every single manager should have. These elements are explain as follows, First is planning, to have a long term vision or goal for the future. Being prepared and ready for all outcomes, either is positive or native in an organization. A manager must be able to see way far into the Every organization needs a manager who plans properly and accurately. Without the ability to plan properly, the manager may have no idea what they are capable of doing, what they can bring to the organization and what to expect. To being

Penurious Management Skills41 a good planner or having the qualities to plan properly, will increase the chances of organizational success. Without a plan or planning quality be certain to fail. To plan makes the prepared and ready for anything that comes their way. Organizing, meaning the proper allocation of human resources in development of the structure of an organization towards objectives accomplishment. Also to create order and coordination is very vital. Also it can help towards division and specialization of labor so that each unit or stage can be handled by a qualified individual. The benefits having this skill and knowledge can also assist the manager and organization deciding how to departmentalize. Leading, which consist of how to influence, motivate workers. If a manager cannot influence the staff towards work performance, decline in productivity will occur, and the outcome might be costly. Every manager should able towards the art of leading employees. If the manager is very effective in leading, the employees will defiantly be encouraged towards performing of their duties with maximum dedication, enthusiasm and concentration. And the fourth which is controlling, the ability allows the manager to make sure that there is no deviation from the task at hand. It ensures that the task is moving in right direction. Controlling well, properly and defiantly help towards achieving a task in the time frame estimated or given

Penurious Management Skills42 There are several tasks that are also required for a manager to be effective in an organization. There are several tasks to which can help a manager to be better at being productive and efficient. As time passes by that manager should or most improve his day-to-day skills, one which might help. Also the ability to collect data and feedback, some individuals when given feedbacks on how manage things, they might be offended or ignore the advice. Taking feedback and data collection will help a manager to improve his skills. Observing and identifying problems can also help, to some extent the little problems managers observe alongside with small changes can lead to a big difference, managers should learn how to observe and identify the little problems, analyze date, how to implement new ideas, compile information properly, present themselves adequately and have strategies to solve a situations at hand. A skillful manager should be a figure head leading by example and showing zero tolerance for insubordination. With the proper skills he can act as a consultant to the organization, employees as well as acting as a liaison to employees. Having the needed skills can put a manager in these positions of great responsibility while making an effective and beneficiary impact to everyone.

Penurious Management Skills43 Some articles from the Wall Street Journal can help the understanding of how skillful managers and talented are needed and also the cost of their mistakes First of all, a Wall Street Journal article was written in regards to Facebook, the social networking site. The headline was Facebook in Privacy Breach, published on Monday, October 18, 2010, by Emily Steel and Geoffrey Fowler. The article stated that many of the most popular Facebook applications on the social networking site has been transmitting identity information, providing access to people profile information including names and that of their friends to countless ads and internet tracking companies. This issue has affected millions of individuals and is a breach in security. Questions are being asked as to whether Facebook can still retain its members identifaction information securely Based on this article, it seems that the CEO of Facebook Mark Zuckerberg has done a bad job towards the protecting the identity information of its website users. This can be considered as a bad managerial practice and the incapability to function effectively as a manager. This can also be considered as a minor problem within an organization, but the external threats can be very great. The probability of an individuals identity being publically distributed as result of one or two mistakes is very damaging to image of any institution. As the CEO and manager of facebook, Mark Zuckerberg at all times must be able to protect and defend the identity information of its employees and customers so that they can be considered trustworthy, reliable, and dependable. Being able to block information from leaking to outside institutions, organization or even through electronic website would indicate to the public that measures are being implemented properly to protect their safety and data information is secured. If a manager or leader isnt able to perform this task, he or she is liable to lose its customers and employees. So, a lesson should be learned from

Penurious Management Skills44 this, which is to protect the identifications of employees and customers all of the times as a skillful manager. Another article from the Wall Street Journal was released on Sunday, October 17, 2010; the headline states Japan Scrambles for Rare Earth by Yuka Hayashi. Quoted directly, the article says,Japan is scrambling to find alternative supplies of critical metal (also known as rare earth) used by high tech companies by developing new mines abroad. There were alarms as a result of Chinas moves to cut the shipments of these critical metals. The reason started a while a back and as a result of dispute between the two nations collision dispute in the waters at East Asia September 2010. This act of cutbacks by China could cause a great decline in the production of high tech commodities in Japan. Japan should have had a backup plan, an alternative high supplier of such items. If China decides to completely stop the supply of this so called rare metal, that would be set back Japan a few passes in the market production of high tech products. As a manager, one should always provide alternative chains of supplies, goods, and services to the firm. Never should managers depend on a limited channel of supply; alternatives should be available in order to avoid the unexpected. The situation between China and Japan is considered an unplanned crisis. In the modern markets, managers should be armed with the skills and capability to solve this kind of situation. Also, a plan should be developed. For instance if two nations depend on one another for goods and services, what happens if war or political crises arise? Both nations will suffer one way or the other, and that is unacceptable.

Penurious Management Skills45 All in all, managers should have the ability and skills to not depend on a sole chain of supply, but rather have multiple channels to avoid any future costs or problems. A third article in the Wall Street Journal was released Tuesday, October 19, 2010. The headline was China Anoints Its Next Leader by Jeremy Page. It mentioned that China communist party appointed Vice president Xi Jinping to a key military post, cementing his status as their apparent to the president and the party chief Hu Jintao and removing most of the uncertainty surrounding the countrys leadership succession. The act or step is improving the nations success politically, economically and socially. It is mostly known how leadership is handled in China, sometimes by force which is a poor method of management and leadership. The new appointment indicates that as much as China grows both economically and military, changes are needed to be taken in other to meet the standards of the country and also the standards of change. As time passes in an institution, change is necessary like it or not. Most times change is a result of inadequacy or the poor performance of managers. When a manager is not able to the meet the needs and new standards of change, he or she is to be removed with respect and replaced by another who has the adequate skills and ability. This removal must not only be when a manager lack skills and ability, but also when a manager lacks new ideas. Innovative heads are needed in institutions. If there is an external source of new information and innovation, that person should be recruited and if the previous management cannot provide these services, the management should exit the firm or be relocated to an area where his or her expertise would be greatly appreciated and very useful.

Penurious Management Skills46 Based on the Wall Street article, transformation is needed to improve productivity, growth and development for the betterment of the nations development. Likewise, it is needed in a business environment or managerial organization.

Penurious Management Skills47 At the beginning of this paper was just the identification regarding penurious managerial skills, causes, and effects, and how to improve those skills. However, with research and development these problems must be faced and prevented. A good example where there exists a high level of poor managerial skills can be located in developing countries, most of which are weak economically and politically. A good example would be Nigeria. This is a country that is located in west region of Africa with a population of almost one hundred and fifty million people. It is considered as a poor nation but developing at a very slow pace. In this country the level of education is a low standard, several individuals who hold organizational of high position power lack a high level of sophistication, knowledge, or education. A lot are inexperienced due to lack of proper managerial skill at work places; it is why most business firms are not at a high level of productivity. A recent article by a Nigerian news paper company called Business Day had a recent headline, Nigerias Poor Emergency Management. The article mentions a recent flooding on the south side of Nigeria, Lagos state, and how the government is ineffective dealing with the problem. It mentions the incapability of the state government performing its duty effectively and promptly. A direct quotation from the Business Day was If anything, the recent flooding of some coastal areas and low lying settlements in parts of Lagos and Ogun States, and its unchecked devastating effect on the people, have once again reinforced the thinking that the nation has a poor emergency management system (Business Day News 19 October 2010) Several official positions that demand a certain qualification are assigned to someone else who is under qualified, for various reasons, some as a result to close relationships with one another.

Penurious Management Skills48 Various other countries and firms face the rifts of unskilled, untrained and unqualified managerial leadership. It is very certain that leaders of various countries most which are developing nations have a low level ability to act or implement their policies effectively and efficiently. One would find various symptoms and signs not only with managers and leaders but also CEOs of various organizations. In some situations if the top person in charge has no ability to spot great talent and assets that would be a fine addition to an institution, that individual might as well claim to be doing the organization harm rather than good. Skilled and trained leaders are needed everywhere in the world from schools, police institutions, senators, ministers, mayors, governors and many more. A good example is the United States of America. The United States is one of the worlds strongest countries, having a standard defense system and high technological weapons, which took a great amount of work and skillful talented leaders. Also the nation can be looked at from a perspective of having a unique standardized system when it comes to seeking the right persons for the right job. Before an individual is granted a position of authority, he or she is expected to have gone through an extensive amount of job training and having a certain high level of educational training and working experience. Apart from that when a person is given a high-ranking post, it is not considered the end of the test; that person is placed on trial to see whether or not he or she is qualified in handling the position. A second strategy that the United States institutions use is the testing of ones conceptual skills, human and technical abilities. This testing gives a firsthand understanding on what sort of actions need to be taken and when, in regard to handling an ineffective person holding a position of authority.

Penurious Management Skills49 Also another strategic method is the aspect mentioned before called specialization. It indicates that the job in which one is assigned to be very specialized. The person has 100% knowledge and information with regard to the post. In Nigeria, a high number of managers who are not specialized are posted to areas where they have insufficient amount of information regarding the job. They considered learning more and better their role and what the post or the job requires as time passes by. That act can lead to the waste of valuable resources, assets and in some cases the company or institution. There are several more strategies the United States uses in solving the socalled cases of poor managerial skills. The nation and the firms in it try to avoid recruiting a penurious apple (manager or staff) that would be a liability rather than an asset. Having penurious managers, employees and staffs are unavoidable whether we like it or not, but the most important aspect is how do we solve that problems, what kind of measures are needed ,and how good use of other qualities those managers have even though they are ineffective in some ways can be made. These are some questions the organization needs to ask in order to work effectively. Not every organization would have a perfect quantity of staff. To point out some of institutions that have experienced penurious managers includes AIG ( an insurance company) and Toyota, during the recall regarding faulty gas pedal. These are two giant firms that have experienced some problem due to poor management planning by their faulty or incapable managers, sometimes due to simple avoidable mistakes. What makes them unique as an example is how each industry handled its problems. AIG tried reshuffling and changed a certain amount of managers to avoid any future problems. The company turned to termination of job, firing those managers

Penurious Management Skills50 who were linked to the problems. Toyota recalled all the vehicles that had been sold out and admitted to mistakes in of the product. One way or the other we will face situations of conflict, disaster, low budget cuts and so on which could cripple the institution, what makes a manager skillful and talented is how she or he is able to resolve the situation without a great amount of cost to other parties.

Penurious Management Skills51 Conclusion

Based upon research and understanding, a suitable conclusion would be to notify that penurious management, is a fundamental element and reason towards the downfall of institutions, organizations and businesses. It is considered to be chronic disease eating away the potential of an organization. This problem will only get worse if appropriate measures to tackle it are not properly established and implemented within a time frame. Every organization, business or institution has its every own internal and external problems regarding penurious management which are linked to a manager or someone in charge. There are various methods to handle this problem, some maybe effective, and others may not. It is very important that each organization identifies its penurious managers and finds the alternative, professional and right measures suitable to solve the situation. Without the proper identification of the rotten apple, it would infect the entire basket. In some cases, the institutions may encounter a challenging moment or period of time towards identification and solution implementation of penurious managers for various reasons, but it is very important to always take a strong and firm stand when dealing with managers who are lacking the appropriate skills and abilities to lead, guide, influence, motive and direct employees towards a goal, because without these assets of talents, all they do is being an anchor to that institution. The twenty first century is characterized as a globalized world. With countless competitions from all corners of the world, it is very important that organizations, business and institutions should always be on top performance, effectively and efficiently to avoiding being in last position. Managers who lack the appropriate skills required to make an organization grow will defiantly lead that organization to failure.

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Penurious Management Skills53 Constandse, R. (2004). Time Management Worst Practice: Poor Planning. Retrieved 2010 from http://www.timethoughts.com/timemanagement/PTWorstPractice_PoorPlannin g.htm. Flynn, G. (2004). Poor Management Skills Putting Success at Risk. Retrieved on February 19, 2010 from www.independent.ie/national-news/poor-managementskills-putting-success-at-risk-162294.html Ford, J. (n.d). Qualities of effective managers Retrieved 2009 from http://www.ehow.com/about_4795302_qualities-effective-managers.html Good Boss or bad boss (2009). Retrieved February 2, 2009, from http://www.skybluesolutions.com/about-news.asp?id=40 Hahn, M. (2007). Management Skills. Retrieved on February 20, 2010 from http://www.en.articlesgratuits.com/management-skills-id1586.php. Hayashi & Areddy. (October, 16 2010). Japan Scrambles For Rare Earth. Retrieved from Wall Street Journal, pp. A10. Improving, Not Managing, Poor Performance. (June, 2006). Retrieved on November 2010 from http://www.pivotal-insight.com/insight/august2005/featuredomain.php. Kennedy, K. (2002). Effects of Poor Management. Retrieved on January 2010 from http://www.helium.com/items/1392584-effect-of-poor-management. Lorenz, K. (2009). Top 10 Soft Skills of Job Hunters. Retrieved on March, 2010 from http://jobs.aol.com/articles/2009/01/26/top-10-soft-skills-for-job-hunters/ Marquis, B. (1992). Leadership Roles and Management Functions in Nursing: Theory and Application. Retrieved on February 19, 2010, from http://books.google.com/books?

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Penurious Management Skills55 Sirbasku, J. (2004). Poor management leads to failure. Retrieved on February 15, 2010 from http://ezinearticles.com/?Poor-Management-Leads-toFailure&id=3156313. Steel, E. (October, 18 2010). Facebook in Privacy Breach. Retrieved from Wall Street Journal, pp. A2 Terry, T. (2004). Leadership Skills for Boosting Performance. Retrieved on February 20, 2010 from http://books.google.com/books? hl=en&lr=&id=Li5mZp7CSVgC&oi=fnd&pg=PR7&dq=Leadership+institute+f ormed+to+tackle+poor+management+skills.&ots=e7c0vp40K-&sig=G8IwRdPZYuLHDCkq0mRjHh-dYo#v=onepage&q=&f=false. Thorp, B. (Thursday, January 18, 2007). On the Job Training for More Effective Managers. Retrieved July 2010, from http://www.webpronews.com/expertarticles/2007/01/18/on-the-job-training-formore-effective-managers. Types and level of control (n.d). Retrieved on November 2010 from http://www.flatworldknowledge.com/node/29149#web-29149 Wainwright, N. (July 16, 2010). Effects of A Poor Nurse Manager. Retrieved August 2010, from http://www.ehow.com/list_6740705_effects-poor-nursemanager.html.

Penurious Management Skills56 Resume Andrew Jarafu Afakirya (+234) 805-527-2715 (+1) 857-919-5597 afakiryaandrew@yahoo.co.uk Temporary address 1079 Commonwealth Ave. Apt. 202 Boston, 02215 MA, USA EDUCATION_________________________________________________________ Master Degree. Management in General Business, Cambridge College; 2009-2010; Cambridge, MA, US

Bachelor of Economics Major in Business Administration, Fatih University, 2005-2009, Istanbul, Turkey

EXPERIENCE________________________________________________________ Internship at Gl I-insat Building Company. (July 2007- April 2008) Istanbul Turkey Assisted with regional advertising campaigns Assisted in rationalizing inventory to reduce cost Data collection of new clients Managed strategic business development and sales promotion

SKILLS AND INTEREST______________________________________________ Language: English, Turkish (bilingual), and several Nigerian languages Computer skills Microsoft word, Excel, and PowerPoint Photo shop.

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