Personal Finance and Professional Management Fundamentals

September 10, 2007

Don't copy if you can't paste

A well-known motivational speaker, gathering the entire crowd's attention,
said, "The best years of my life were spent in the arms of a woman who wasn't my wife!"

The crowd was shocked!

He followed up by saying, "That woman was my mother!"

The crowd burst into laughter and he gave his speech, which was well received.

About a week later, one of the top managers who had the training decided to use that
joke at his house. He tried to rehearse the joke in his head, but it was still a bit foggy.

He said loudly, "The greatest years of my life were spent in the arms of a woman who was not my wife!"

Naturally, his wife was shell-shocked! After standing there for almost 30 seconds trying
to recall the second half of the joke, the manager finally blurted out, "... and I can't remember
who she was !"

As expected, he got the thrashing of his life time .... :))

Moral of the story: Don't copy if you can't paste.

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February 4, 2007

A Guide to Middle Manager Survival

A Guide to Middle Manager Survival

In today’s world, restructuring and downsizing have led to the emergence of flatter organizations. Middle managers have been the most affected by these changes. Many management writers consider middle managers as “excess organizational baggage.” Ironically, middle managers are the most potential assets of the organization. Many organizations have the false notion that by removing these managers, they can restructure themselves better. To ensure continued survival of middle managers, a number of individual and organizational actions can be undertaken. These are listed below:

  1. Focus on important strategic issues: Middle managers should move away from the day-to-day operations (which can be delegated to the first-line managers) and devote their attention to the more important strategic issues.

  2. Think like senior managers: They should use their extensive knowledge to deal with more substantive issues that would lead to organizational benefit.

  3. Analyze why change is needed: They must understand the underlying causes for introducing change and how the organization should adapt itself in the light of opportunities and threats.

  4. Ensure greater participation: Middle managers have a great deal of technical expertise and a good knowledge of organizational processes. This knowledge should be disseminated throughout the organization.

  5. Manage change and people together: Middle managers should take the initiative for implementing change in the organization. They should act as mentors for those with lesser work experience.

  6. Utilize their role as intermediaries: Middle managers can comprehend the internal and external pressures faced by the organization. They can resolve conflicting issues by negotiating with the parties concerned.

  7. Implement the vision: Middle managers must attempt to convert top-level strategies into workable actions. They should take up the responsibility to implement the vision of the organization.

  8. Incorporate change into the organization: Middle managers must understand how to implement change in the organization. They should introduce work practices that bring in innovation and “shifts in thinking.”

In the words of Rory Chase, Managing Director of IFS International in Bedford, “The new role of the middle manager embraces three key areas: team leadership, change maker and facilitator.” There is no doubt that in order to survive in this rapidly changing era, middle managers have to make themselves indispensable.


Adapted from Steve Towers, "Re-engineering - Middle Managers are the Key Asset, " Online Newsletter, October 1996 (Page updated on 27 October 2002), The Institute of Management Excellence

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January 1, 2007

Levels of Management

Top Management

  • Develops and reviews long-range plans and strategies.

  • Evaluates overall performance of various departments and ensures cooperation.

  • Involved in selection of key personnel.

  • Consults subordinate managers on subjects or problems of general scope.

Middle Management

  • Makes plans of intermediate-range and prepares long-range plans for review by top management.

  • Analyzes managerial performance to determine capability and readiness for promotion.

  • Establishes departmental policies.

  • Reviews daily and weekly reports on production or sales. Counsels subordinates on production, personnel or other problems.

  • Selects and recruits personnel.

Supervisory Management

  • Makes detailed, short-range operational plans.

  • Reviews performance of subordinates.

  • Supervises day-to-day operations.

  • Makes specific task assignments.

  • Maintains close contact with employees involved in operations.

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October 14, 2006

Functions of Managers

Regardless of the type of the industry, the functions involved in an organization, or the organizational level at which one functions; every manager has to perform certain basic managerial functions such as planning, organizing, staffing, leading and controlling.

  • Planning is the process of setting goals, and charting the best way of action for achieving the goals. This function also includes, considering the various steps to be taken to encourage the necessary levels of change and innovation.

For example, if a company is planning for a promotional campaign, then the manager responsible for the campaign has to chart out actions that are in the best interest of the firm.

  • Organizing is the process of allocating and arranging work, authority and resources, to the members of the organization so that they can successfully execute the plans.

In many retail outlets, departments are organized (inventory department etc.), based on the nature of the job (product packing, grading, pricing, inventory etc.,)

  • Staffing consists of recruiting, training and developing people, who form part of the organized efforts to contribute towards organizational growth.

For instance, recruiting programmers and analysts for a company. Training and developing them to achieve organizational goals forms a part of the staffing activity.

  • Leading involves directing, influencing and motivating employees to perform essential tasks. This function involves display of leadership qualities, different leadership styles, different influencing powers, with excellent abilities of communication and motivation.

For instance, Sam Walton - founder of Walmart, leadership style was instrumental for the roaring success achieved by the retail giant. He always enjoyed interacting with his employees. He also made it a practice to visit each store, at least once in an year. He also insisted that the top level executives should visit the stores, and interact with employees.

  • Controlling is the process of devising various checks to ensure that planned performance is actually achieved. It involves ensuring that actual activities confirm to the planned activities. Monitoring the financial statements, checking the cash registers to avoid overdraft etc., form part of this process.

The Essentials of control activities are:

  • Setting performance standards

  • Determining the yard-stick for measuring performance

  • Measuring the actual performance

  • Comparing actuals with the standard

  • Taking corrective actions, if actuals do not match with standards

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What is Management? Definition of Management

Harold Koontz and Heinz Weihrich define management as “the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”

Louis E. Boone and David L. Kurtz define management as “the use of people and other resources to accomplish objectives.”

Dalton E. McFarland defines management as “a process, by which managers create, direct, maintain, and operate purposive organizations through systematic, coordinated, cooperative human effort.”

Mary Parker Follet termed management as “the act of getting things done through people.”

Definitions by Follet and Louis E. Boone and Kurtz call attention to the fact that managers achieve organizational goals by getting others to do the necessary tasks. The other two definitions suggest that management is much more than “just getting the work done” and suggest the following aspects of management

  1. Managers carry out the functions of planning, organizing, staffing, leading and controlling: Henry Fayol was the first management thinker to outline the five basic functions carried out by managers. Every manager performs these basic functions. These functions are discussed in detail in the later part of this chapter.

  1. Management is essential to any kind of organization: Wherever there are groups of people working together to achieve some common objectives, it becomes essential to guide, organize and control them. The term ‘management’ applies to any organization irrespective of the size or nature of operations. The prime concern of a CEO of a multinational company, the General Manager of a hotel, the first-level supervisor, the manager of a cricket team and the student president in a college is to manage their people and resources effectively.

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