How does management affect a business

One-on-one sessions for employees demonstrate concern and reinforce good habits at every stage of career development. Performance must have consequences. Rewarding good performance is probably even more important than penalizing bad performance. Most companies have various kinds of formal and informal recognition-and-reward systems, but few do enough of this kind of morale building, either in volume or frequency. In venues from lunchroom celebrations to town-hall announcements, employee-of-the-month and team-achievement awards are invaluable to encourage behavior that improves performance and keeps it high.

One COO at an industrial-goods company keeps a standing agenda item in the monthly business review for recognizing the performance of individuals and teams. Employees on the list may find a gift waiting at home to thank them and their families for a job well done. Yet in many companies, senior managers rarely visit plants except during periodic business reviews, and they appear on the shop floor only when a major new capital improvement is to be inspected.

Management interactions with frontline personnel are an extremely powerful performance-management tool. They send a message that employees are respected as experts in their part of the business, give managers an opportunity to act as role models, and can be a quick way to solve problems and identify improvements.

When a senior manager was persuaded to visit the workshop, he was appalled at the dirty, cluttered, and poorly maintained environment. Employees reported chronic underfunding for replacement parts and tools, and asked the manager what it would take to save their jobs.

The best companies build performance-management systems that actively help them avoid these pitfalls. Such systems share a number of characteristics.

Too often, companies measure and manage performance through lagging indicators, such as compliance with monthly output or quality targets. By the time the results are known, it is too late to influence the consequences. The best companies track the same metrics—but also integrate their performance-management systems into critical process inputs. Supervisory control and data acquisition. That lets people react long before the variation undercuts output or quality.

Some changes require almost no investment in technology. At the end of each workday, for example, production and functional teams can complete a checkout form assessing how it went.

Regardless of changes to metrics and targets, the best companies keep the cadence of meetings and reviews constant, so they become an intrinsic part of the rhythm of everyday operations Exhibit 2. Standard work, for example, is based on three simple rules. When employees complain to each other, complete their tasks with minimal effort or fail to finish their work assignments on time or at all, they may be suffering from a lack of motivation due to a manager who does not relate to the staff.

Employees may perceive inequitable treatment of some co-workers that results in favoritism; or they don't have leadership necessary to keep them on task. In addition, a poor supervisor may not pay attention to the needs of employees, such as allowing a balance between work duties and personal life or providing training.

If management does not clearly define performance expectations or follow up with employees about their levels of productivity, your organization can experience reduced revenues. When employees join your company, they should receive a performance plan with the standards for their positions listed. Regular appraisals help employees to know that the organization is satisfied with their performance.

If management does not set performance standards and follow up with reviews, staff members may not feel appreciated. Define the term management. What are the four key functions of managers?

What is the difference between efficiency and effectiveness? Summary of Learning Outcomes What is the role of management? Glossary effectiveness The ability to produce the desired result or good. Previous: Introduction. Next: Planning. Share This Book Share on Twitter. Yet despite the supporting evidence, research shows many managers are failing to deliver on their responsibilities:.

The answer lies in a move towards agile performance management processes , rather than structured annual reviews alone. Regular appraisals allow not only for easier identification of underperformance, but also the celebration of success, and a reassurance for the employee that there is an obvious route to personal growth and development within the organization. In assessing this analysis, the Harvard Business Review cites two additional behaviors which impact both employee engagement and performance levels within the business.

The first of these is, unsurprisingly, communication. Gallup studies have report a strong link between consistent managerial communication with higher engagement levels, with those combining face-to-face, phone and communication tools seeing the best results.

Investment into soft skills training, combined with effective internal communication tools such as social networks or intranet software , can support managers in overcoming barriers to communication.

An interpersonal coaching approach to leadership also yields positive feedback, with those who feel that their manager is invested in them as a person more likely to feel engaged. Managers who can appreciate that each team member is different, and understand how best to deal with each individual personality, are crucial to fostering a culture of engagement across the team.

A strengths-based culture allows team members to learn more quickly and produce a greater quality and quantity of work, allowing staff to use the best of their natural talents. Whilst the characteristics of substandard managers can be wide-ranging, from poor communication to lack of integrity or courage, the effects of these can be extremely damaging to morale and productivity.