UNIT 7
PROCESS OF MANAGEME
Objectives After going through this unit, you will be able to: understand the process of management; e
differentiate between various structures; understand important aspects of strategic planning; and relate the conccpt of core competency with capacity building.
Structure 7.1
Introduction
7.2
Planning
7.3
Organizing
7.4
Delegating
7.5
Controllig or Coordinating
7.6
Core Competency and Capacity Building
7.7
Summary
7.8
Self-Assessment Questions
7.9
Further Readings
7.1 INTRODUCTION We have already studied the strategic plan of action. Now we need to understanc some basic principles to understand the process of management. Traditionally management functions are divided into five main components - planning, organizing, staffing, delegating and controlling (coordinating). Most would agree that all five are important, but planning is an essential tool that is used in all these functions. Whether delegating or controlling, it all hinges on proper planning and this must be carefully done. In this unit we will discuss all these aspects in brief.
7.2 PLANNING Now that we have discussed strategic planning and you have worked out your vision, mission and values, we will concentrate on how to effectively use planning in order to achieve goals. The planning we now talk about is how to successfully complete the tasks that you have set to accomplish these goals. The plan specifies what should be done, by whom, where, when, and how. Your strategic plan has helped you determine what you want to achieve. Goals, objectives, tilnn lines and the desired outcomes are derived from the mission statement and strategic plan. Managers must use effective planning and goal-setting techniques t ensure that policies, roles, performances, structures,' expenditures and services are i line with the overall plan.
II
How do we ensure the new strategic plan is effectively implemented? Tf you have personally worked out your strategic plan some of the steps for implementation have already been written into it. The following guidelines will help ensure that the plan is workable:
Process of Management
Carehlly study all the components of the plan and see how this could be realistically implemented.
I
a
t
Organize the overall strategic plan into smaller action plans. Set realistic goals for each. Check out financial incomes and expenditures.
t
.
Involve your team who will be responsible for implementing the plan. Use each member as effectively as possible. Delegate properly and clearly Identify any areas that need to be strengthened.
1
Build in regular reviews of status of the implementation of the plan.
1
'
Evaluate your progress as you accomplish your goals Note that you are touching various important areas of management planning as you look at these components. You look at staff, delegation, teamwork, performances, finances, monitoring, reviewing, coordinating, controlling and a host of other managerial tasks. Let us look at some of these.
Set effective goals Goals are a very important part of your strategic plan. These goals must be observabli, measurable and do-able. They must be specific. When goals are vague or unrealistic, they are bound to lead to disappointment for both the manager and the staff. For instance do not set a goal such as "Complete a health survey within the next year." This is too vague. Your action goal can be "To complete the survey of the health status a 100 households within the next 3 months." This is doable, observable and measurable. Goals sho'uld, therefore, specify the time period over which they will be achieved. Give your staff members goals and deadlines according to their ability. Deadlines give team members something to work toward and help ensure continued progress. At the same time, managers should,set short-term deadlines along the way so that their subordinates are not overwhelmed by one big task or get sidetracked with other tasks.
7.3 ORGANIZING ,
Having set out your plans and looked at how these could be implemented you are now ready to organize yourself and your team. Your orgatlizational design will be in keeping with your strategic plan. You will need an effective design to help coordinate your team, manage individual staff members, bring in accountability mechanisms and create the right kind of work culture to accomplish your mission. Managers must make choices about how to group people together to perform their work. There is no hard and fast rule as this depends on the kihd of organization you are, how big it is and how best to function. There are technically five common approaches - functional, divisional, matrix, team, and networking-help managers determine departmental groupings (grouping of positions into departments). The five structures are basic organizational structures, which are then adapted to an organization's needs.
25
Strategy and Planning
Functional structure
The functional structure puts people into groups based on similar activities, skills, expertise, and resources. For instance all the field workers will be in one department, all the clerical staff in one, the financial staff in one etc. This is one of simplest and natural ways to group your people. But the functional structure has its disadvantages. It does not give every member of the organization an idea of the overall vision. Even managers tend to develop narrow visions as executives with limited backgrounds and little training handling higher levels of management.
I
Divisional structure
Some organisations may set up specialized departments and develop according to their outputs. These divisions may be according to specializations or geographical regions. However, divisional structures have drawbacks with managers as they are so specialized and do not consider other divisions. Matrix structure
The matrix structure combines functional specialization with the focus of divisional structure. Employees in asmatrix structure belong to at least two formal groups at the same time-a functional group and a product, program, or project team. They also report to two bosses-one within the functional group and the other within the team. This structure not only increases employee motivation, but it also allows technical and general management training across functional areas as well. Potential advantages include better cooperation and problem solving, increased flexibility, better performance accountability and improved strategic management. However, this could lack clear lines of accountability with employees taking advantage. Team structure
The team structure organizes separate functions into a group based on one overall objective. This is ideal in implementing strategic plans. These cross-functional teams are composed of members from different departments who work together to accomplish certain targets or goals. This breaks down functional barriers among departments and creates more effective relationship for successfullj~undertaking tasks. Network structure
The network structure relies on the expertise of other organizations to perform critical functions on a contractual basis. In other words, the organization does not need to have all the expertise and network with specialists anywhere in the world. Ideally, your organization may work out a combination of all these various models and develop a flexible structure built around fulfilling your strategic plan. But invariable, this depends on the leader. If he or she is an authoritarian type, then the organization tends to be either the functional or divisional type as it is easier to exercise authority. On the other hand, a team working type will choose one of the other three. It is best to work gut what is best suited for fulfilling your goals.
7.4 DELEGATING
26
No matter wh& management structure you follow, delegating is a much needed skill for managers to develop. Most hesitate to share responsibilities. Delegating involves working with an employee to establish goals, granting them sufficient authority and responsibility to achieve the goals. This may involve giving them
'
a certain amount of freedom to decide how the goals will be achieved and also deciding what resources must be utilized. Ultimately, the manager is accountable for the attainment of the goals, but chooses to achieve the goals by delegating to a trusted person. One of the main reasons why delegation is difficult for most people is because they are concerned about giving up control. This often means that they are unwilling to share the rewards of success, even if it is the recognition from the superiors. Others find it hard to develop confidence in the abilities of others. They are so proud of their abilities and do not want to recognize the abilities of others. A few managers are really "oneman-bands" and just cannot work with others.
,
Many managers do not want to face change and want to remain comfortable in their mindset, making the same decisions they have always made. They feel secure when they have made the decision lacking trust in their subordinates. But once you start delegating you will recognize the effectiveness of your team. You will be performing better as the advantages are many: Managers who effectively delegate are able to use a great deal of their own time for other important leadership tasks. Some creative leaders do not need to get involved in tedious details and can therefore develop their own leadership skills. Avoiding routine details that can be delegated frees the leader for problem solving, monitoring goals and working out strategic lans much more effectively. The hallmark of good leadership is effective delegation. Delegation is when supervisors give responsibility and authority to subordinatesto complete a task. Effective delegation develops people who are ultimately more fulfilled and productive. Managers become more fulfilled and productive themselves as they learn to count on their staffs and are freed up to attend to more strategic issues.
How can we delegate? Here are some basic tips for effective delegation: 1.
Delegate one task to one person. This gives the person the responsibility and increases their motivation.
2:
Identify the skills of each member of your staff and assign the right task to the appropriate one.
3.
Be clear about your expectations, preferably in writing. Include timelines and other expectations in your delegation.
4.
Keep monitoring the progress and correct any mistakes or make changes if necessary. Get frequent feedback about progress on the project.
5.
If work is not satisfactory do not hastily withdraw the task, but see 6ow you can make corrections. Perhaps, you can include someone else alongside him or her to help accomplish the required goals.
6.
Evaluate and reward performance.
7.5 CONTROLLING OR COORDINATION Controlling in management is a term that is debated. Some people say that in modem times the idea of any form of control is unacceptable. Staff shauld be able to exercise their gifts in a free atmosphere. We too can agree tliat the phrase "management control" can have a negative connotation, of domination and heavy- handed
Process of Management
Strategy and Planning
authoritarianism. We prefer use of the term "coordinating" rather than "controlling" as it speaks of a group of people working together rather than being controlled by one or two. Some typical methods of coordination in organizations are as follows: i)
Various administrative controls require maintainingdocuments to ensure information is collected and stored systematically. Documents used to be manually filed according to titles and dates but today computers have revolutionized the office. Administrative coordination may be done through information management systems, management software, human resource information systems, office automation software, etc. Organizations typically require a wide range of reports, e.g., financial reports, status reports, project reports, etc. to monitor what's being done, by when and how.
ii)
Financial management is a key area of your operations. Your strategic planning is a wasted exercise if funds are not available or even if available not managed properly.Financia1controls are absolutely necessary in any organization - profit or non-profit. The most common financial statements include the balance sheet, income statement and cash flow statement. Financial audits must be regularly conducted to ensure sound financial management practices. These are generally accepied standards that any auditor can advise you about.
iii)
Performance Management is an area that will help you coordinate your activities in line with the strategic plan. Performance management focuses on the performance of the total organization, including its processes, departments, programs, projects, etc. and employees. Performance reviews provide an opportunity for the organization to regularly monitor progress towards goals in the context of the whole strategic plan..
. '
iv) Policies and procedures are very useful no matter how big your organization is Policies help ensure that the organization and its employees works in line with required government and legal ulations. More impoifantly it helps staff work and perform h a fair and just environment.
7.6
CORE COMPETENCY AND CAPACITY BUILDING
Core Competenctes
(Core competencies are the particular capabilities of your organization that give you an edge over others. For instance, you may be doing a community health project like many others do, but you may have a team that is skilled in field research and analysis of what mactly to do. Thisis yaur core competency. The concept of core competencies was introduced by C.K. Prahalad and Gary Hamel in a 1990 Harvard Business Review article. They described as core competency "an area o? specialized expertise that is the result of harmonizing complex streams of technology and work activity." Ever since Prahalad and Hamel introduced the tcrm in the 1990's many researchers there have been much discussion on the. concept ~f core competencies. They are basically capabilities that differentiate a company strategically and give it a competitive edge over the others. In any organization there are many individual competencies or capabilities but these ars not necessarily the core competencies of the company. The organization suffers when
28
,
Core competencies therefore represent the key areas of expertise which are distinctive to your company. If you are an NGO who is doing the same service say HIVIAIDS initiatives, then core competencies are the things that you can do better than your competitors. These areas of expertise may any areas of expertise by in surveys, awareness building, counseling, ongoing patient care, rehabilitation etc. Capacity Building
Capacity building is now a common concept to nonprofit organizations as it speaks of much needed actions that improve effectiveness. Capacity guilding includes all the actions to increase the cagacity of the organization to handle its own mission amidst all For organizations, capacity building relates to improved governance, leadership, mission and strategy, administration (including human resources, planning, financial management, and legal matters), program development and implementation, fundraising and income generatipn, monitoring and evaluation, advocacy, marketing etc. For individuals, capacity building may relate to leadership development, advocacy'skills,traininglspeakingabilities,
Capacity building is much more than merely training, although this is an important aspect. It will -includehuman resource development which is the process of equipping individuals with the knowledge and skills to perform more effectively. It will embrace the whole organizational development looking at management structures, processes and procedures' and increase the organization's capacity to deal with public, private and community interactions.
-
,
On a much larger scale than the organization, United Nations' Agenda 21's definition stated - "Specifically, capacity building encompasses the country's human, scientific, technological, organizhional, institutional and resource capabilities.A fundamental goal of capacity building is to enhance the ability to evaluate and address the crucial questions related to policy choices and modes of impleinentation among development options, based on an understanding of environment potentials and limits and of needs
Activity 1 1.
Discuss the concept of capacity building and core competencies in relation to your own organization and its Strategic Plan.
...................................................................................................................... ...................................................................................................................... ...................................................................................................................... 2.
Write out some measures you can take to develop the organization's capacity handle the new challenges.
......................................................................................................................
...................................................................................................................... ......................................................................................................................
7.7 SUMMARY. It is very important to understand the process of management as it covers five main components viz a viz of planning, organizing, staffing, delegating and controlling. This unit discusses these components in short. You are required to refersome case studies
Process of Managemeiit
NOTES
