MANAGEMENT 101 (Part III of III)

This is part three of a three part series which describes the fundamentals of management and should be of particular interest to young people entering the work force or as a refesher for managers. It is an excerpt from my book, "MORPHING INTO THE REAL WORLD - A Handbook for Entering the Work Force" which is a survival guide for young people as they transition into adult life. The book is available from MBA Press through our web site.

Over the last few shows I described the Three Prime Duties of a Manager, organizational structures, The Five Basic Elements of Mass Production, and Understanding Productivity. Next, I'll describe a set of management related laws and rules you will undoubtedly hear about in the workplace. As such, you should become familiar with these concepts and how to use them to good effect.

Peter Principle

Introduced by Dr. Laurence J. Peter in his 1968 book of the same name, the Peter Principle relates to how people move up and down the corporate hierarchy, specifically how they rise to their level of competency. A problem occurs though when a person rises above his level of competency, whereby he becomes ineffective in performing his job function. Keeping people at such a level is a disservice not only to the company, but to the worker as well. When a person has risen above their level of competency, it will become obvious to others and may affect morale. Standard and routine performance appraisals should help overcome this problem, but if they are infrequently performed or done in an inconsistent manner, the Peter Principle will inevitably kick in. Management will either work with the person to get him back on track, or terminate his employment.

Parkinson's Law

"Parkinson's Law" was devised by C. Northcote Parkinson, noted British historian and author. His original book, "Parkinson's Law: The Pursuit of Progress," was introduced in 1958 and was a top-selling management book for a number of years (it is still sold today). The book was based on his experience with the British Civil Service. Among his key observation's was that "Work expands so as to fill the time available for its completion." Basically, he suggests people make work in order to rationalize their employment. Consequently, managers create bureaucracies and superfluous work to justify their existence, not because it is really needed (aka, the "making mountains our of mole hills" phenomenon). As an aside, CEO's clearly understood Parkinson's Law, which became the driving force behind the flattening of corporations during the 1990's.

80/20 Rule (Pareto's Principle)

I have often been asked why it seems only a handful of people always carry the workload. This is not uncommon and is found in everyday life as well. It is commonly referred to as the "80/20 Rule" or "Pareto's Principle." Vilfredo Pareto was an Italian economist who observed in 1897 that 80 percent of the land in England was owned by 20 percent of the population. Pareto's theory thereby relates to the ratio of input to output; e.g. twenty percent of your effort produces 80 percent of your results. From a time management perspective, it means 20 percent of the people are normally responsible for producing 80 percent of the work.

As a manager it thereby becomes important to recognize your core 20 percent workers and concentrate your attention on them. It also becomes important to devise new means to squeeze out the remaining 20 percent of the work from the 80 percent who do not actively participate. This is not to suggest the 80 percent do not care about their work, they just may not be as talented, experienced or as motivated as your 20 percent workers.

One dangerous byproduct of the 80/20 Rule is petty jealousy. Since the 20 percent performs the work, they are thereby deserving of the accolades for performing it. Inevitably, it is not uncommon for small minded individuals from the 80 percent group to feel slighted and jealous of those doing the work and receiving the recognition. Such petty jealously should be overlooked and the person forgiven, unless something more malicious is involved, such as character assassination of which there is no excuse. The manager must carefully squash this behavior before it has an adverse effect on your 20 percent. If not, the 20 percent worker will question why he is working so hard if he is only going to be the object of ridicule and humiliation. The 80/20 Rule is an interesting phenomenon every manager must be cognizant of to get the most out of their workers.

As an aside, I am not a proponent of "Employee of the Month" programs as they tend to encourage individual achievement as opposed to teamwork. The concept of "Employee of the Month" programs is to recognize and reward an employee for outstanding effort and, hopefully, inspire other employees to work as diligently. Instead, such programs tend to generate petty jealousies and disrupt the harmony of the workplace.

W. Edwards Deming (Win/Win)

W. Edwards Deming pioneered quality control principles through statistical analysis in the early part of the 20th century. Unfortunately, his early work was unappreciated in America and, consequently, he applied his talents to help rebuild the industrial complex of postwar Japan. It was only late in life did he receive the recognition of his work in the United States (after Japan became an economic powerhouse). The Deming Award for quality is still coveted in Japan. One of his most famous quotes is, "Quality is everyone's responsibility."

To me personally, one of Deming's biggest contributions was his philosophy of creating "Win/Win" situations in business. Instead of competition, he preached cooperation; instead of rugged individualism, he preached the need for teamwork. Deming observed people too often create "Win/Lose" situations, whereby one person can only win at the expense of the other party losing. Instead, he recommended the creation of "Win/Win" situations whereby both parties cooperate towards success. To illustrate, he would describe how "Nylon" was created by DuPont, which was actually based on a joint research project between offices in New York and London, hence the name "NYLON."

Deming's philosophy in this regard is very much compatible with our own Bryce's Law stating, "The only good business relationship is where both parties benefit." Instead of promoting cutthroat tactics promoting individualism, what is wrong with achieving success through cooperation?

Catch 22

The term "Catch 22" was derived from Joseph Heller's book of the same name about World War II. It is commonly used in the business world and represents a no-win situation, e.g., no matter what how you attack a problem, you cannot conquer it. In the course of your personal and professional life you will inevitably run into a Catch 22 along the way.

Murphy's Laws

Murphy's Laws originated in the 1940's from the American military and consists of a series of amusing axioms relating to real world experiences. For example, perhaps the best known law is, "If anything can go wrong, it will." This expression rightfully admonishes us to always prepare for the unexpected. There are many other amusing Murphy's Laws, but none as profound as this simple expression.

Murphy's Laws was also the inspiration that led to the development of Bryce's Laws.

CONCLUSION

When describing the duties and responsibilities of management, I often use the analogy that management is like driving a car. Too often managers become more obsessed with reading the dials and gauges than actually driving the car. True, the dials and gauges are important and tell us how fast or slow we are going, but they are no substitute for actually driving the car to where we want to go. Management is about leading people in the right direction, creating a suitable work environment for them to perform their work, and having the tenacity to see the job through to completion.

As is mentioned frequently throughout my new book, how we elect to manage others or how we elect to be managed is based on human perceptions, right or wrong. These perceptions dictate the necessity for improving our social skills in the workplace, both the manager and the worker.

Management is about people. And because of this, it's about effectively communicating, developing trust, and learning to socialize with others.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 11:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

MANAGEMENT 101 (Part II of III)

This is part two of a three part series which describes the fundamentals of management and should be of particular interest to young people entering the work force or as a refesher for managers. It is an excerpt from my book, "MORPHING INTO THE REAL WORLD - A Handbook for Entering the Work Force" which is a survival guide for young people as they transition into adult life. The book is available from MBA Press through our web site.

TYPES OF ORGANIZATIONAL STRUCTURES

Within any organization, be it commercial or nonprofit, there is always a chain of command that dictates how the organization will be governed. To this end, there are basically three types of organizational structures:

Hierarchical - representing a classic tree structure (top-down) defining administrative relationships between people. The hierarchical organization, as depicted by an organization chart, expresses superior, subordinate, and lateral relationships within an organization. It also suggests the scope of activities within an organization.

Matrix - represents a pool of people serving different capacities in an organization. For example, on one business function a person may represent the leader, on others he may be a follower. Under the matrix approach, one person may serve more than one leader.

Project Team - is similar to the Matrix except as performed on a project-to-project basis. In other words, a person's tasks are prescribed by the project for which he is assigned. He will serve in this capacity until the conclusion of the assignment, after which he will be assigned to another project in perhaps another capacity.

Regardless of how companies organize themselves, either in a multi-tiered hierarchy or in a flat organization, there is always a superior/subordinate relationship between personnel for administrative purposes. The notion that an organization runs as a pure democracy is a myth. There will always be a need for leaders and followers.

THE FIVE BASIC ELEMENTS OF MASS PRODUCTION

There is basically two ways of producing any product, either one at a time or in mass production. Mass production affords us the ability to produce more products at reduced costs. As such, industrial engineers have long known that in situations involving voluminous work products of the same type, an organization needs to observe the five basic elements of mass production:

1. Division of Labor - to break the production process into separate tasks performed by workers with different skills.

2. Assembly Line - defining the progression and synchronization of work.

3. Precision Tooling - for mechanical leverage in the assembly line.

4. Standardization of Parts - for inter changeability and assembly by unskilled and semiskilled workers.

5. Mass Demand - the impetus for mass production.

You will find these five elements in every company who offers repetitious work products, be it an automotive manufacturer, a restaurant, a bank or insurance company, an engineering firm, etc. Actually, more organizations operate in accordance with these five elements than those who do not.

These five elements lead to the need of standard and reusable methodologies representing the business processes needed to perform the work. Such methodologies define Who is to perform What work, When, Where, Why, and How (I refer to this as "5W+H").

UNDERSTANDING PRODUCTIVITY

Productivity = Effectiveness X Efficiency

Too often people fallaciously equate productivity with efficiency. Efficiency simply represents how fast we can perform a given task. For example, an industrial robot on an assembly line can perform a task such as welding very precisely and quickly. But if the weld is being performed at the wrong time or wrong place, then it is counterproductive, regardless of how efficiently it performs the task. Effectiveness, on the other hands, is concerned with the necessity of the task itself or as I like to say, "Do the right things." Under this scenario, the manager should consider effectiveness first, and efficiency second. By being conscious of both effectiveness and efficiency, the manager can avoid the "Rearranging the Deck Chairs on the Titanic" phenomenon whereby people work on the wrong things at the wrong time.

Undoubtedly, you will meet salesmen who will offer products promising improvements in efficiency. But if they cannot be implemented into your operation effectively, it will be counterproductive.

Just remember, 100% efficiency multiplied by 0% effectiveness equals zero productivity.

In terms of delivering a quality work product, the manager should understand the relationship of quality to the time necessary to produce the goods.

The faster the product is produced, the more likely it will contain defects in workmanship; conversely, the more time allowed in production, the greater the chances for producing a high-quality product. Although everyone stresses the need for quality, the reality is the manager must be able to balance development time against defects in workmanship and that a suitable development time needs to be devised to match the level of quality desired. This also means the level of precision in production is proportional to the level of quality desired, all of which will greatly influence a manager's style of management. For example, in a high pressure situation, the manager may exercise more supervision and a little friendly bullying in order to get the job done. Under less pressure, the manager will allow more worker freedom and participation in developing decisions.

NEXT TIME: We will conclude this three part series with a review of some important Laws and Rules to observe in the workplace.

In the meantime, if you would like to discuss this with me, please drop me a line at timb001@phmainstreet.com

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 11:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.

MANAGEMENT 101 (Part I of III)

This is part one of a three part series which describes the fundamentals of management and should be of particular interest to young people entering the work force or as a refesher for managers. It is an excerpt from my book, "MORPHING INTO THE REAL WORLD - A Handbook for Entering the Work Force" which is a survival guide for young people as they transition into adult life. The book is available from MBA Press through our web site.

Management 101

In order to effectively work within a company, it is necessary to understand some basic management principles so employees understand what is going on in the minds of their superiors. The better the employee understands the manager, and vice versa, the better they will be able to work together in harmony. This section, therefore, covers basic management concepts you will undoubtedly come across in business. If you comprehend these principles and are able to assimilate them in your work effort, this will have also served as a primer for your advancement.

INTRODUCTION

There is an old joke whereby a new manager had been hired by a company to take over an operation. As the new manager was moving into his office he happened to bump into his predecessor who was preparing to leave. The new manager asked if there was any advice the former manager could offer on assuming his duties. The former manager said he had written down advice for his successor and placed them in three envelopes in the desk marked "1," "2," and "3", and they should only be opened in the event of an emergency. The new manager laughed, shrugged it off, and went about his business thinking nothing about the envelopes.

The manager's reign started off fine but inevitably ran into a problem for which he had no solution. Desperate, he happened to remember the three envelopes and opened Number 1 which offered the following advice: "Blame your predecessor." The manager thought this was a clever way to get himself off the hook and used it to good effect.

Time went by until the manager was faced with another seemingly impossible hurdle. Not knowing what to do, he turned to envelope Number 2 containing a note that read simply: "Reorganize." The manager thought this was a sound idea and set about reorganizing his operation. Organization charts were redrawn, job descriptions modified, and new office furniture and equipment obtained.

The reorganization overcame the manager's problem but he eventually ran into a crisis taxing his abilities as a manager. At a total loss as to what to do, the manager turned in desperation to envelope Number 3 which included a note that read simply, "Prepare three envelopes."

Laugh as we might to this anecdote, there is a bit of truth in it. Too often people rise above their level of competency to take on the job of manager. Being a manager is substantially different than the duties and responsibilities of the worker. Some people have the fortitude for it, others do not. While I have personally seen some very good managers who have excelled in their jobs, I have also seen people become physically ill from being elevated to a position of management. Being a manager, most assuredly, is not for everyone.

Management is not about numbers or technology, it is about getting people to perform specific work in the most productive means possible. Monitoring numbers and implementing technology to assist in our work effort is important, but we should never lose sight of the fact that projects and work assignments are performed by human beings who possess emotions and different levels of intelligence and interests. As such, the human dynamics of management is much more challenging than most people realize. There is a countless number of books on the subject of management alone. But for our purposes, perhaps the best way to think of "management" is simply, "Getting people to do what you want, when you want it, and how you want it."

The Three Prime Duties of a Manager

A manager has three primary duties to perform: Provide Leadership, Establish the proper work Environment, and Produce/Deliver products or services.

1. Leadership

As the field general for his department, the manager should be able to articulate the objectives of his area, and the strategy for conquering them. In other words, he has to have a vision and be able to effectively communicate it to his subordinates in order to instill confidence and provide a sense of direction. People like to know where they are going and appreciate some direction in their lives. As social creatures, we take comfort in knowing we are working in a concerted manner towards common objectives we deem important. As such, not only does a manager need a vision, he must be able to convince his workers of its necessity. If the workers believe in the manager's vision and are confident in his ability to lead them, they will gladly follow him.

Following this, the manager must be able to develop practical project plans for the staff to follow. These project plans should be explained to the staff along with their rationale. By doing so, workers cannot claim they didn't know the plan or what their role was in it. Think of the game of football where plays are called for the eleven players on the field; all are given assignments to perform towards a common objective. If any one player doesn't know the plan, in all likelihood he will make a wrong move and cause the team to lose yardage. As my football coach was fond of saying, "A team is as strong as its weakest player." Planning requires communications which ultimately leads to teamwork and harmony. To this end, managers should keep their project plans and calendars up-to-date and visible to everyone in the department.

In order for the manager to instill a sense of confidence in the staff, he must not only be able to demonstrate he knows what he is talking about, he must also express a high level of moral conduct. The manager's word should be considered his bond. If he is caught in a lie, cheating, defrauding, back stabbing, or some other misconduct, this will be noticed by the staff who will no longer trust him. A true manager is a person of integrity.

Finally, beware of "reactionary" managers whereby they simply go from one problem to another as they occur. Under this scenario, the manager is not in control of his department's destiny and has to dance to the tune of someone else's fiddle. Some reactionary management will inevitably be necessary, but managers should take control over their environment and practice more "proactive" management as opposed to "reactive" management. Too often people are lulled into a reactive mode of operation or as I refer to it, a "fire fighting mode" of operating. As a manager, you are cautioned to beware of your chief firefighters, they are probably your chief arsonists as well. Also remember the old adage, "If you do not make the decision, the decision will be made for you."

2. Environment

The astute manager will appreciate the need for cultivating the proper work environment. If a worker feels comfortable in his environment, he will feel amenable to working and will take a more positive view of his job. But if a "sweat shop" environment is provided, the worker will dread coming to work and put forth minimal effort to accomplish his assignments.

There are two dimensions for creating a work environment: logical and physical. The physical aspect is somewhat easier to explain and involves the facilities and equipment used in the business, both of which impact morale and attitudes towards work. How people behave in a clean and contemporary facility is noticeably different than those working under dingy and antiquated conditions. Whereas the former supports a professional attitude, the latter promotes a lackadaisical attitude. Basically, a clean and contemporary work place is saying to the employees, "I care about you and am willing to invest in you." However, the economic reality may be the manager cannot afford the latest "state-of-the-art" facilities or equipment. Nonetheless, the manager should make an effort to keep the physical surroundings as clean and up-to-date as possible.

Whereas the physical aspects of the work environment are tangible and easy to assimilate, the logical aspects are intangible and perhaps harder to manipulate for it involves dealing with human perceptions, attitudes and emotions. Along these lines, there are three considerations:

A. The Corporate Culture.

B. Management Style - micromanagement versus worker empowerment.

C. Continuous Improvement - to constantly seek new and improved ways for producing superior work products.

3. Produce/Deliver

Equal to Leadership and creating the proper Environment, is the manager's duty of being able to produce the products or services he is charged to deliver. Even if you have the best plans and environment, if you fail to deliver your products or services, you have failed as a manager. To illustrate, one of President Lincoln's first commanders of the Army of the Potomac during the American Civil War was General George B. McClellan, an extraordinary engineer and organizer, but a complete failure at execution. If you as a manager are convinced of a specific course of action, do not procrastinate, act. An opportunity rarely presents itself twice.

NEXT TIME: We will discuss types of organizational structures, The Five Basic Elements of Mass Production, and Understanding Productivity.

In the meantime, if you would like to discuss this with me, please drop me a line at timb001@phmainstreet.com

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M. Bryce & Associates (MBA) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim's columns, see:
http://www.phmainstreet.com/timbryce.htm

Like the article? TELL A FRIEND.

Tune into Tim's THE BRYCE IS RIGHT! podcast Mondays-Fridays, 11:30am (Eastern).

Copyright © 2011 by Tim Bryce. All rights reserved.