NEW APPROACHES IN MANAGEMENT SUMMARY

CHAPTER1 (MANAGERS AND MANAGING)

Management may be viewed as the activity whose purpose is to achieve desired results through
the efficient allocation and utilization of human and material resources (Daniel A. Wren, 2017)

Management is the process of planning and organizing the resources and activities of a business
to achieve specific goals in the most effective and efficient manner possible. Efficiency in
management refers to the completion of tasks correctly and at minimal costs. Effectiveness in
management relates to the completion of tasks within specific timelines to yield tangible results
(Editorial, 2023).
LO1-2 Distinguish among planning, organizing, leading, and controlling (the four principal
managerial tasks), and explain how managers’ ability to handle each one affects organizational
performance.
Functions of management
The purpose of management is to unify the efforts of different individuals in an organisation
towards achieving a common goal. These are some functions of management:

Planning
Planning involves creating a timeline of tasks that need to be completed to achieve a specific
goal. Managers execute planning Planning should be carried out in a systematic fashion to avoid
wastage of resources and time. A detailed plan of action minimises confusion, risk, wastage and
uncertainty.

For example, the top management in a small business may set a high sales target for one quarter
to compensate for the previous quarter's losses. A start-up's founder may plan to make formal
efforts to associate with the government and other large institutions to expand the scale of their
operations. Heads of local digital marketing companies may plan to create an international
market for their products and services. An IT company may decide to update their work
regulations to accommodate work-from-home for their employees.

Prioritise organisation
The objective of organising is to nurture a symbiotic relationship between the personnel,
financial and physical resources of the company. Proper organising provides the course of action
that meets all parameters for success. Organising involves the identification and classification of
business activities, delegation and coordination.

For instance, the top managers may allocate funds or resources to different branches. The branch
managers must then allocate funds to departments within the branch, depending on their
operational requirements. The department heads then track the day-to-day expenditure of the
funds.

Improve staffing
Staffing involves recruiting and building a team for the organisation. The staffing process of
companies is often lengthy and in-depth. Management identifies professional roles in the
company and the skills/qualities required to perform well in these roles. The manager then
selects staff for those roles through the recruitment processes. Once selected, candidates undergo
training and join the company's workforce. Managers are also responsible for awarding
appraisals and promotions as part of staffing.

For instance, a digital marketing company might choose to expand its operations to other cities in
the country. The top management can then decide to recruit five marketing personnel, four visual
designers, two accounting personnel, a human resource professional and a manager for each
location. They may also decide to outsource IT, maintenance and security related work to
freelancers. The company's staffing guidelines may also suggest that one marketing personnel
and one visual designer should move to the role of department lead, after two months of training
and one year of experience in the company.

Provide direction
Supervising, motivating and guiding the staff members is central to the functions of a manager.
Directing involves taking the steps to put the work in motion and maintain productivity to
achieve company goals. This requires excellent leadership, communication and interpersonal
skills to drive the team towards completing organisational objectives.

For example, the middle management often makes policies based on directions they receive from
the top management. Operational managers focus more on managing the day-to-day functioning
of the company.

Monitor quality
Businesses function on some established standards of performance. A manager ensures that the
staff's collective output meets quantity and quality benchmarks set by the company. Control at
each level prevents overall deviation from prescribed quality specifications.

For example, supervisors in a fast-food chain often micro-manage cashiers, cooking staff,
delivery personnel and servers to make sure that the food and service in their branch meet quality
standards. Top management prescribes these quality standards and they usually evolve with time.

LO1-3 Differentiate among three levels of management, and understand the tasks and
responsibilities of managers at different levels in the organizational hierarchy.
Levels of management
Management roles come in three levels:

1. Top management
Typically, the senior-most executives in a company are the chairman, chief executive officer,
chief operating officer, president and vice-president. Their role lies in integrating diverse
components of the company and coordinating activities of different departments. They also
analyse the business environment and its implications to formulate goals in order to ensure the
survival of the company and the welfare of its stakeholders.

2. Middle management
Mostly composed of division heads, the middle management links the operational management
to the top management. Division/department heads receive guidance from top managers and are
leaders to operational managers. Their job is to understand the policies framed by the top
management and relay them to their respective divisions/departments to ensure that they follow
through with company policies and decisions.

3. Operational management
Supervisors, section leads or forepersons directly oversee the efforts of the workforce. They are
responsible for quality control and ensure that the work meets deadlines. The top management
draws out the plans that define the authority and responsibility of supervisors.
LO1-4 Distinguish among three kinds of managerial skill, and explain why managers are divided
into different departments to perform their tasks more efficiently and effectively.
The responsibility for ensuring that all tasks get accomplished belongs to managers, but it's often
not possible for them to perform all the duties on their own. A manager lightens their workload
by assigning tasks to appropriate people within the team and allowing them to make decisions
regarding the project. Thus, delegation of authority is one of the essential managerial skills that
organisations seek while hiring for positions of authority. In this article, we discuss what
delegation of authority is and explain how you can develop this skill.
What Is Delegation Of Authority?
The procedure of distributing tasks or responsibilities with their associated decisions to a
subordinate employee on a temporary or long-term basis is delegation of authority.

All medium and large corporations have a hierarchy of positions. Usually, the managing director
or chief executive officer holds the overall responsibility for the daily operations. However, it is
not feasible to expect them to perform all the tasks of the organisation themselves. So, leaders
assign the work along with the responsibilities and authority to make decisions to their
employees. However, delegation always takes place top-down, and juniors cannot pass tasks on
to their seniors.

In a successful company, success is an outcome of shared authority and responsibility, which

allows the company to run in an organised manner. Delegation also promotes the development of
employees and improves their decision-making abilities by enabling them to demonstrate their
accountability and troubleshooting skills. It is the first step in recognising the potential in your
employees to shoulder the responsibility of promotion, thus helping them to achieve their career
goals.

Moreover, delegation of authority doesn't just benefit junior employees. Sometimes, managerial
staff can get overburdened with essential activities. In such cases, they may assign some tasks to
other employees on a short-term basis to save time. However, they are still accountable to their
own superiors.

How To Delegate Authority Effectively

Once you have decided to hand over some of your assignments, use the following steps to make
sure that the job is completed according to your satisfaction:
Prepare a plan. The first step in delegating authority is to divide a big project into smaller,
achievable tasks. Then, review the workforce and time constraints. Determine which tasks are
appropriate for the employees within the team. To select the best candidate for handling those
responsibilities, consider the qualifications, experience, past performance and any training
history. Distribute the assignments by utilising suitable communication channels. You can either
use email or conduct a meeting for this purpose. Explain to your team members why you chose
them for those specific tasks.
Provide clear instructions. Make your expectations clear from the beginning. Set the deadlines,
milestones and furnish all details of the expected results. This information has to be completely
unambiguous to avoid misunderstandings in the future. Before your teammates begin on their
assignments, conduct a question and answer round to clarify doubts and provide any missing
information.
Grant proper authorisation. Some processes require adequate permissions and decision-making
power. For example, suppose your acquisition manager wishes to procure raw materials to
perform a certain duty. To be able to do that, the manager needs to know your suppliers.
Additionally, they should have the authority to negotiate the prices and arrange for the delivery.
Hence, granting proper and timely authorisation is extremely important.
Follow up on tasks. However, autonomy can backfire at times when employees end up making
wrong decisions. Ensure that the job is proceeding according to your expectations by asking for
periodic updates. The employees should be required to report to you regularly so that you can
solve any issues. Also, make sure you have some contingency plans in place in case something
goes wrong.
Analyse the results and provide feedback. Good leadership requires scouting for potential
candidates who can take your place once you've moved on to other roles. A great way to do this
is by analysing the results of delegated tasks to gauge the effectiveness of your team members. If
you are particularly satisfied with an employee's performance, you can train them to handle more
responsibilities. Conversely, provide constructive feedback to those who need improvement and
avoid delegating further tasks until your next evaluation. Creating such a culture of support helps
you build a fully functional team.
Differences In Delegation Levels
Delegation of authority happens in all sectors, but the implementation varies. In some industries,
the scope of responsibilities is defined clearly so that every person carries out specific tasks
according to their job descriptions. In other cases, the job descriptions allow for greater
flexibility.

For example, the managing director or chairman of a company can assign entire departments to
members of the board of directors depending on their specialisations. A project manager in a
software company may ask senior developers to track their own issues and manage junior
developers. Another example is of a marketing head who may concentrate on policy
management and hand over daily operations such as hiring and creating campaigns to the
assistant marketing manager.

However, in non-corporate industries, things work differently. For instance, in the armed forces,
a high-risk sector where lives are often at stake, strategic or tactical decisions are restricted to the
respective commanding positions. Low-level officers work within a strict code of conduct and
they have a limited capacity for making decisions in the field.

In other sectors such as construction, employees are hired primarily for their specialised skills.
Often, there is minimal overlap between departments even if they are all working on the same
project. For example, the manager of the safety department would not hand over the policy
decisions and buying of safety equipment to personnel in the engineering or design departments.

Thus, as a senior staff member, you have to consider the situation carefully before deciding to
delegate authority.

The Principles Of Delegation

There are certain risks involved in handing over responsibilities. These risks are directly
proportional to the scope of the project. A decision made by a lower-level employee may cause
critical problems in the project or affect other departments in a chain reaction. As the scope of
the project increases, the time and costs involved in reversing such incorrect decisions rise
exponentially and may lead to expensive write-offs.

There are seven principles of delegation of authority that help to minimise such occurrences and
which should be a part of the risk planning process:

The scalar principle: This management rule states that all employees must follow the chain of
command within an organisation. They should report to their respective line managers and be
aware that only their immediate superiors are authorised to delegate duties.
Principle of defining function: Subordinates should know the detailed requirements of the
assignment and its impact on other jobs in the department. These requirements include the
process, the exact nature of the task and any sub-tasks or activities involved.
Principle of delegation by expected results: Effective delegation also depends on clarity in
expectations. The manager should define the results and the metrics for assessing the quality of
work clearly, which serves two purposes. It becomes easier to decide whom to delegate the tasks
to, and employees are fully aware of what's expected of them. If you want your team members to
do no more or less than what is asked of them, clarify that right at the beginning. There shouldn't
be any confusion in the minds of employees regarding when to make decisions independently
and when to approach seniors.
Principle of unity of command: Different managers have their own leadership styles. Any
employee should have to turn to only one line manager for performance evaluation, solution to
problems and final reporting. In some cases, an employee has to follow the instructions of more
than one senior, which can create confusion. Furthermore, it has a chance of damaging the
professional relationship and causing division of loyalty.
Principle of balance in authority and responsibility: Responsibility and power go hand-in-hand.
A person without authority may not be able to carry out the necessary obligations. Conversely,
too much autonomy can lead to abuse of power. So, it should be clear to everyone that while
accepting any delegated task, it is their responsibility to perform according to expectations within
the purview of the authority granted to them.
Principle of authority level: Some managers may find it difficult to relinquish control. A few
tend to micromanage, while others fear adverse outcomes. But if they always make the decisions
for their juniors, they will never create worthy successors. Allowing employees to make their
own decisions within the limits of their authority inspires confidence and trust. If there are any
doubts, or if the progress is not satisfactory, communicating this problem with juniors and
advising corrective measures helps to set them on the right course again.
Principle of absolute responsibility: A junior employee is completely answerable to their
immediate superior when accepting tasks and responsibilities. However, the manager remains
responsible for the smooth operation of the project.
LO1-5 Discuss some major changes in management practices today that have occurred as a result
of globalization and the use of advanced technologies.

Forces Shaping Management

Several forces are significantly shaping management practices today, including the pace of
change, technology, globalization, diversity, and social expectations. Let’s look at each of these
in more detail.
The Pace of Change
Managers must understand that society, politics, the economy, and technology are changing at an
unprecedented rate. In 2001, Ray Kurzweil proposed that in the twenty-first century our rate of
progress would double every decade.[1] This means that over the next one hundred years, we
will experience changes that would have taken twenty thousand years in the past. This presents a
vexing problem for management. On one hand, managers need predictability and stability to
develop and implement plans effectively. On the other hand, they need adaptability and
flexibility to respond to opportunities. How does management provide both stability and
flexibility?
Technology
The primary factor driving change is the development of computer and information technology.
Fifty years ago, almost no one knew about computers except from science fiction books and
movies. Today nearly everyone uses a smartphone with more power than the computers that
guided rockets to the moon in 1969. Many of the routine jobs analyzed by Frederick Taylor and
the Gilbreths are now automated, done by computers and robots. It has been estimated that
robots will perform 50 percent of current jobs within twenty years. What is the role of
management when machines instead of people are doing work?
Globalization
Globalization refers to the increasing ease of flow between countries. It includes economic,
political, social, and cultural interactions. In particular, economic globalization is creating one
global marketplace, making it easier to conduct business across borders. Globalization has
allowed companies to perform many manufacturing jobs in low labor-cost countries.
LO1-6 Discuss the principal challenges managers face in today’s increasingly competitive global
environment