Corporate America has implemented multi-level management effectively since the turn of the century- but small business owners, whose hands on approach keep them glued to micro-managing, are really only now grasping the idea of higher level management styles and techniques. By delegating and incorporating qualified managers on your team, the small business engine can continue to hum along more dependably at an even rate of speed.
Levels of Management
There are typically three levels to management, top (high-level) management; middle management; and supervisory (first or front-line) management.
Top
Top management includes positions such as president, chief executive officer (CEO); chief financial officer (CFO), and vice president. These managers are responsible for making and reaching long term objectives, and are ultimately responsible for all other managers, as well as the overall direction and financial health and longevity of a company.
Middle
Middle management is usually responsible for short term decisions. Working closer to the production or sales process, middle managers resolve problems and devise new methods to improve performance.
Supervisory / Front line
Supervisory or front-line management is usually involved with employees who are responsible for the day to day sales or production process. These managers handle employee differences and customer related issues.
Taking a second, look at your organization and identify these positions, and the people who are in them. If you are still operating under one tier, identify your needs and the ideal management structure for your particular company, and plan now for the positions and type managers you need to fill them. The importance of fitting effective people into each of these levels of management cannot be overstated. Each level's interdependence creates a symbiotic relationship that promotes growth and short and long term success. Personal relationships aside, running a company has only one clear objective- to be financially sound, solvent and successful. Unbiased judgment is the protocol for hiring and maintaining managers at all levels. Established guidelines for role responsibilities should be strictly adhered to.
Management Functions
Most managerial functions can be classified into these categories: planning; organizing; leading; controlling. As simple as these words sound, each holds an MBA within itself.
Planning
Various types of planning would include: strategic, tactical organizational, and contingency. Regardless of level of management, the relationships between these functions are also interrelated. Strategic planning identifies a firm's main business focus over 3-5 years. It's usually based on the firm's mission statement. Tactical planning is shorter range; one to two years, keeping fast to the firm's strategic plans. Operational planning establishes methods used for the near future, such as the next year. Operational planning helps achieve the firm's tactical plans. Contingency planning develops alternative plans dependent on varied business conditions. Foreseeing unexpected turns in economic conditions or market share would be part of this.
Organizing
The second part of a manager's job is organizing. Organizing represents the organization of your company's resources, staying consistent to your firm's goals. Once a firm's goals are established through the planning phases, resources are obtained and organized to achieve these goals. A company is constantly undergoing organizational changes, however, for greater stability and overall employee morale, a firm should find a structure and method of organization that is stable and successful, producing a life beating rhythm into the company. Human resources are a firm's most valuable resource; however, the organization of this resource can many times be the most difficult.
Leading
Leading is the third function management must contend with. Leading is the process of influencing the habits of others to achieve a common goal, while keeping the firm's strategic plans in mind. Whether autocratic: retaining full autonomy; laissez-faire or free rein: allowing employees freedom to decide how to achieve set goals; or participative: democratic, the optimal leadership style will ultimately depend on an owner and manager's personal style and situation and success. Any and all of these styles may be found in one firm.
Controlling
The controlling function determines whether set plans have been achieved. By monitoring and evaluating to set standards, a company's performance can be measured. Financial goals and production or sales goals can be evaluated to detect and correct shortfalls early on.
Business owners and managers perform all of these tasks each day. Remember however, to achieve the level of growth your company deserves, effective managers should be an essential part of your team. Skilled managers are needed to oversee and perform the planning, organizing, leading and controlling, people who possess conceptual, interpersonal and technical decision making skills, and are experienced regarding time management. Effective management can increase a company's productivity, improve performance and increase profits while maintaining and improving employee morale. Remember, effective management is one of the most important attributes of a successful firm.
