CHAPTER 1

THE ESSENCE OF MANAGEMENT

Managers provide an essential contribution to productivity as theyfocus on managerial tasks and delegate expert responsibilities.

Definition of Management

In order to understand what it means to be an effective manager, we needa practical, useful definition of the term management. In simplest terms,management means "causing employees to achieve goals."

In other words, managers do anything necessary to ensure that theirorganizations (employees) achieve certain goals. This means determiningwho is responsible for what, when, how, and by what means. Effectivemanagement involves active and competent use of all the techniques in themanagement tool kit: management principles (essence of management);goal setting and strategic planning; organizational structure; governanceand controls; employee development and advancement; communication;and motivation. This use of the management tool kit allows managers todelegate, which means they assign expert (specialist) tasks to appropriatelydeveloped employees, freeing up their own time for management tasks.(See Introduction for management tool kit.)

Mastering all this is essential to success as a manager. Remember, managersprovide their most essential contribution to productivity by focusing onmanagerial tasks and delegating expert responsibilities. Let's look at atrue-to-life business scenario to see this truth in action.

True-to-Life Business Scenario: Focusing on ManagerialTasks by Delegating Expert Responsibilities

Amanda is the department manager of a sales function withina medium-size corporation. One of her employees, Brent, hasbeen her direct report for two years. She has provided him withadequate employee development, and he has proved to be atalented salesperson and valued employee. Another employee,Caitlin, has a lot of promise but insufficient experience in salescalls. Amanda recognizes Caitlin's talents, knows she and Brentinteract well, and sees an opportunity for further developmentof both employees at the same time.

Amanda therefore makes the (management) decision to providefurther training to Caitlin, who lacks expertise in sales calls, byinstructing Brent, the experienced salesperson, to accompanyCaitlin to eight sales calls during the following month, to analyzethe respective outcomes of each call, and to propose suitablemeasures for the future.

Amanda, not Brent, is developing Caitlin. This is developmentas a managerial task. Accompanying Caitlin to her salesconversations and providing the subsequent analysis becomeexpert tasks for Brent, as delegated to him by Amanda. Amandais developing Caitlin by making the necessary decisions forthis purpose; Brent is helping Amanda to achieve these goalsby carrying out the required partial tasks she has assigned bymeans of her authority as manager. (Amanda is, in essence, alsofurther developing Brent through the assignment.)

At the end of the month, Amanda will assess the results(management task) and then make new (management) decisionswith respect to Caitlin (and Brent, if applicable). Clearly,Amanda follows the principle of focusing on management tasksby delegating expert responsibilities. This enables her to fulfillher own management responsibility of enhancing productivityand profitability for the company.

Management Control Loop

Depicting management as a control loop (see figure 1-1) can help usefficiently view all relevant management tools and put them into appropriatecontext.

Basically, the management control loop shows us two things:

1. The necessity for managers to effectively use every element in themanagement tool kit

2. The ways in which that use (effective or ineffective) impacts employees

In order for the management control loop to work, the company musteffectively establish and use organizational structure. Organizationalstructure primarily includes responsibility for results and decision-makingpower, both the fundamental roles of effective management. Whenemployees are sure of the chain of command and the line of decision-makingauthority, it is easier for them to take direction and then achieve set goals.This leads us to goal setting and strategic planning, both of which are key toproductivity and profitability, as companies cannot achieve outcomes whenmanagement does not adequately use these tools. Employee development,governance, and controls are tools managers need to use to measure thesuccess of goals and plans. Finally, communication and motivation are thetools that make it all work. (We will discuss each of these techniques fromthe management tool kit in detail throughout the subsequent chapters ofthis book.)

We can measure the value of any management tool/technique by itsinfluence on employees.

No single management technique is applicable or inapplicable to allemployees. The crucial criterion for selecting the appropriate managementtool to use in any given situation is the intended effect the manager wantsthat tool to have on employees. Intention is everything. Effective managersalways remain mindful of their desired intentions, as this is the best way toachieve desired results.

Expert versus Management Tasks

All managers in all three levels of management (upper, middle, and lower)have two types of responsibility: management tasks and expert tasks.Accordingly, during a certain percentage of their working hours, managersengage in management tasks, and during the remaining percentage theyengage in expert tasks. But remember, managers' essential contributionto productivity must always involve focusing on managerial tasks anddelegating expert...