The continuous and dynamic competition in the global business arena has been very stiff and complex. In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (Pearce and Robinson 2000; Thompson and Strickland 2003). One of the contemporary management concerns in the business world today is the concept of a good manager. What makes a good and functional manager? Or why do managers need both instrumental and conceptual knowledge in their everyday practice?
The progression of ideas and innovations has been rapidly apparent, whereas different organizations have to cultivate ideas that can meet the demands of the market. The manager is commonly the principal person who is in charge of the job (Jacoby 2004). To meet these challenges and achieve a competitive edge, a manager must formulate and implement strategies based on the principles of management, as supported by essential factors such as innovation, technology and the development of intellectual capital. Few companies, even those at the leading edge of knowledge management, have all the management processes, culture and tools in place to create and harness knowledge in a systematic way.
Management thought has evolved over the years. With this, there emerged a modern definition management: that management is the process of planning, organizing, leading and controlling the organizational members and organizational resources to achieve some started goal. Management is the organizational process that includes strategic planning, setting; objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results (Henderson 1996). Management also includes recording and storing facts and information for later use or for others within the organization.
In lieu with this, the main purpose of this paper is to provide a comprehensive discussion on the reason why managers need both instrumental and conceptual knowledge in performance of their daily works and responsibilities. The given roles and responsibilities of the manager are elaborated based on the management theories and ideas and may also be related on the general practice of management. It will be assessed in terms of its application, practice, importance, and effects in the organization.
Management and the Manager: A Brief Literature Overview
The vast collection of printed books and scholastic journals in the field of management present a wide variety of sources. There are various segments of management that were studied and continuously attract researchers to delve into more researching and probing. From general management to international management up to the specific fields namely human resources management (HRM), strategic management, operations management, financial management, marketing management, and information technology management, it dynamically affect and serve as a contributory factor in the further development of the current trends that eventually improve the science of management as whole. Today, there are other management fields such as change management, product management, career management, project management, knowledge management, risk management and the like that are considered significant and served as sub-fields and by-products of the general concept of a successful and inclusive management.
Managers and management have been studied extensively from several perspectives. Other stream of research has focused on the behavior of managers and their role in organizations. Specifically, previous and early academic researches involved Mintzberg (1973) who examined the implementation of the managerial function or how managers perform their tasks and responsibilities. Further, other studies by Harbison and Myers (1959) have looked at managers as an interest group, class, or elite, and at least one classic inquiry and treated managers as an economic resource. A great deal of the work on managers and management has examined these perspectives across societies and cultures are presented in the studies of Massie and Luytjes in 1972 and Negandhi and Prasad in 1971. Other literatures include the topics of employment practice (Blum 1981; Doeringer 1981; Dunlop and Galenson 1978; Martin and Kassalow 1980; Smith 1981; Windmuller and Gladstone 1984) and managers as employees or worker (Roomkin 1989). Nearly all research literatures have focused on the non-managerial labor force or on managerial unionism. Roney (1986 cited in Roney 2004) provides an academic treatise of the main research literature in comparative and international management. Adler (1991) offers important lessons in consciousness-raising for students and managers alike. Dowling and Schuler (1990 cited in Drucker 1992) cover important topics like selection, training, compensation, and labor relations implications for firms operating internationally. Managerial values in different countries are the topic researches of Ralston et al., (1992), Bigoness and Blakely (1996) and Mathur, Neelankavil and Zhang (2000). They tackled the emerging management in selected countries of the West and East economies. Lok and Crawford (2004) conducted a cross-national comparison of the effect of organizational culture and leadership style on job satisfaction and organizational commitment. Meanwhile, Luthy (1993) focused on the redefinition of role of public managers. Maor (1999) explored the paradox of managerialism concept.
Historically, the developments in international business operations have dramatically changed in the latter years of the twentieth century (Peterson 1996). Companies have established an international division to manage operations in a variety of countries. Hence, the managers became international is nature. There were several worldwide developments in the management science that contributed to the eventual progress and essential changes in the management role. Peterson (1996) named some of the most profound changes that affected international management and that include: (1) the breakup of the economic and military Eastern Bloc nations, and their subsequent move toward the market economy; (2) the integration of the EEC (Common Market) in 1992; (3) the possibility of a North American free trade zone that would include Canada, the United States, and Mexico; and (4) possible integration in East Asia. The significance of these events for the study of managers in the international arena lays in the increasing recognition by national leaders of the crucial role that managers and all other employees will play in the coming years towards the global economy.
Currently, researches in management focus on the specific areas such as strategic and change managements. The reason behind this is to update the people in the all management environment and go along with the challenges of the global business environment. Strategic management, for example can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enables any organization to attain its objectives (Prahalad and Hamel 1990; Abell 1999; Boxal and Purcell 2000; Liou 2000). Strategic management guides an organization relative to challenges and opportunities appearing in the contingent environment (Pearce and Robinson 2000; David 2001; Drejer 2002; Thompson and Strickland 2003). This is a systematic, comprehensive and encompassing process that is device to combat the inevitable challenges of global competition. Managers allocate a significant proportion of their abilities to go with the current trends affecting the organization in which they work and affiliate themselves. Meanwhile, change management (or innovation management) is the formulation and assimilation of change in a methodical process (Burnes 1996; Collins 1996; Moran and Brightman 2001; Matveev 2002; Butcher and Clarke 2003). The major objective of change management is the introduction of innovative means and systems in the work organization. Businesses must normally undergo change in order to evolve to a higher level of for instance, stability, management or production. Appointing a new head officer, for example, can greatly enhance his subordinates based on his management principles and personality. Same as strategic management, managers today consider change as an indicator of the expected functions, productivity and future performances in the organization.
Management as a science and the role of managers continue to develop as changes in the global marketplace occur. It is a dynamic area of study that will continuously dedicate an enormous proportion of time for further researches and discoveries to develop, alter, and achieve optimal performance in management. Further, it is expected that there will still be new and on-going management studies and probes as managers maintain their prescribed functions and responsibilities in relation to the principles of management.
Having reviewed the extensive collection of management literatures concerning managers and their functions, it is deemed that there is a need for managers to keep themselves informed of the fundamentals of management due to several reasons. Among these reasons are the following:
- Managers need both instrumental and conceptual knowledge in their everyday practice because this serves as their guiding mechanism in the effective implementation of specific managerial functions such as decision making and taking, human resources management and the like.
- Every manager needs to keep themselves well-versed of the management philosophy in performance of responsibilities as it allows them to work based on the proven, tested and acceptable concepts and universal theories. Similarly, it is where managerial actions are based.
- The knowledge of the manager about management theory and practice serves as a critical success factor (CSF) that creates a spill-over effect to all areas covered by the manager and his/her functions.
- Managers need to keep themselves informed on the theory and practice of management in order to avoid managerial mistakes, minimize risks, and increase the productivity of the people and the organization as a whole.
- The knowledge of the manager on the principles of management also facilitates effective communication among the management and workforce.
- Productivity is also based on the knowledge of the manager of the principles and fundamentals of management.
The Management Functions: a Manager’s Must-have
The job of every manager involves what is known as the functions of management: planning, organizing, directing/leading, coordinating and controlling. These functions are goal-directed, interrelated and interdependent with each other. They also are viewed as being critical and universal for all levels of managers, from supervisor to CEO in all types of organizations – business, government, educational, charitable – of any size. This is usually called the universality of management. The basic process of management is the same, even though the context within which it is practiced is very different from management level to management level and from organization to organization (Desantis and Leal 1998). This management function is needed to be inculcated in the minds of managers as it is a general theory that will direct them in successful managerial practice.
Universally, the manager’s job consists of planning, organizing, directing, coordinating, and controlling the resources of the organization. These resources include people, jobs or positions, technology, facilities and equipment, materials and supplies, information, and money. Managers work in a dynamic environment and must anticipate and adapt to challenges. Moreover, managers create and maintain an internal environment, commonly called the organization, so that others can work efficiently in it.
Planning. Planning is commonly known as the process of formulating in advance as organized behavior action. While it is true that people do not always plan their actions, it is inherent for any organizations to plan. However, whether dealing with the context by which planning is occurring or whether on the individual or organizational level, the process takes shape according to the prevailing attitudes, beliefs and goals that are involved. The firm's objectives should reflect standards of success in financial and competitive performance, as well as acceptable levels of risk and rates of long-term growth (Roney 2004). The manager’s role in planning for the management function is to define goals for future performance of the organization (Anthony et al. 1988). He/she also decides on the task and the resources to be utilized in achieving the predetermined goals. In meeting such goals, the manager applies significant materials or resources for the training of employees. Then, he/she gives incentives and rewards to motivate and enhance the work productivity of every member.
It is a fact that lack of formal planning (Baird et al. 1993) or poor planning process alone can decrease organizational performance or the worst, destroy it. The role of the manager is to ensure the best people, materials, procedures, and applications in implementing plans. The presence of strategic planning in management minimizes the potential pitfalls of the said process such as uncertainty (Matthews and Scott 1995; Roney 2004). The success of several organizations lies on the effectiveness of the manager to plan, evaluate and materialize arrangements in connection to the achievement of the organization’s goal.
Organizing. Thematically, organizing is the act of putting similar elements following one or more rules (Morgenstern 1998). In an organizational perspective, it is the manager’s function that usually follows after the planning process. Generally, organizing includes the specification and distribution of tasks to appropriate departments. It is also the assignment of authority and allocation of resources. The said ways are the immediate responsibilities of the manager.
Process and decision models are useful to the manager in organizing the work and intellectual contributions to be drawn from all levels of the management organization (Roney 2004). Organizing is crucial in developing inputs to planning, making planning decisions, and implementing strategy. To be effective, however, comprehensive management function in the business must be a continuous process. However, the organization process that is conducted within the company is dependent on the plans that must be implemented.
Directing/Leading. The role of the manager in directing/leading a management function is reliant to the development and implementation of designs or plans made. It is important that the manager must consider cost effective and time efficient ways in leading. His/her day-to-day responsibility of running the organization and leading the group in developing the plans for the long term future of the organization is accounted to his/her leadership abilities and managerial prowess. While it is true that the manager can direct/lead the entire workforce, he/she is also connected to other factors such as the customers, the company’s budget and assets, and all other company’s resources (Roney 2004). Furthermore, the manager is encouraged to adapt participative approaches to directing/leading in order to elicit useful characteristics and elements that are useful for the firm’s success. The leadership styles the manager chooses to utilize is also a vital determinant of effective directing process. Thus, it is still fundamental to study the feasible applications to be implemented in accordance to the achievement of organization’s prime motives.
Coordinating. Coordination is the regulation of all the various aspects of the organization into integrated and harmonious operations. It is the integrating and establishing of linkages to diverse sections of the organization in order to accomplish a communal set of objectives. For instance, in coordinating information to all members of the organization, the manager’s role is to see to it that there is unity on all aspects of management. Managing the information that the company uses in its daily operations is crucial in any business organization especially to the manager. Information is the blood stream of every company on which every staff, employee, and supervisor work on in order to meet the demands of the clients and customers of the business. This is the reason why there should be proper management flow within the organization’s manager and the rest of the manpower. Direct link between the managers, supervisors, and the subordinate employees should be efficient enough to answer to the daily work loads of the members of the organization. Communication between and among the members of the organization is prioritized in order to provide a well-functioning business operation within and outside the working organization. However, there are some significant elements that are barriers to coordination. Among these are intervening factors such as personal indifferences, cultural pluralism, and behavioral diversity among members of the group (Trebing 1996). But still, the expertise of the manager to amalgamate such loopholes is a challenge to his/her managerial function.
Controlling. Managers manage, in other words, by controlling and limiting the efforts of those below them (Witzel 2003). As a manager, it is a sole responsibility to implement plans but at the same time limiting the possible negative consequences. It has been demonstrated that the emphasis in successful management lies on the man, not on the work; that efficiency is best secured by placing the emphasis on the man, and modifying the equipment, materials and methods to make the most of the man. It has, further, been recognized that the man's mind is a controlling factor in his efficiency, and has, by teaching, enabled the man to make the most of his powers (Gilbreth 1914, p. 3).
In the same manner, managers should be the pivot around which the organization revolves, rather than directors controlling from the top down or officers leading from the front. All in all, the essential function of the manager is to implement the plan by following a systematic procedure with respect to the classical management functions.
Communication: the Way of Understanding the Manager and People
As stated, the knowledge of managers of the principles of management facilitates effective flow of communication process. Communication within an organization goes beyond the concepts of effective speaking or listening, or what is commonly considered as linear communication. It is an interactive model which deals with feedback and reciprocal exchanges. According to surveys focusing on areas of improvement among corporations, communication is usually ranked first as an important element within the organization (Harris 1993). Specifically, communication is recognized as an important aspect of an organization as it keeps employees well-informed and open to communication channels (Pettit Goris and Vough 1997).
Hence, the manager must assure that there are open avenues for employees to communicate new ideas, grievances, input and feedback in line with the change management process (Carnevale and Stone 1994). It is important that the communication provided by the organization is clear and consistent from within all levels of the organization. It must address both organizational and individual employee concerns. Management behavior will influence employee behavior more than the words included in a communication. Managers as well as employees assess the communication to see if the change meets their needs.
Meanwhile, there are two types of communication that the manager can consider in dealing with the matters of the organization – internal and external. Internal communication is linked to performance, job satisfaction, job avoidance, market conditions, commitment, culture and turnover. Communication process is useful to the success the change process (Robbins 1999). Herein, a clearly articulated mission or vision statement is an essential part of building the image of the innovation in the minds of the employees. Therefore, effective internal communication is needed during, before and after the change process has been done. If poor internal communications exist, it could lead to lack of job satisfaction, increased job avoidance, reduced performance and commitment and an increase in turnover (Robbins 1999). Meanwhile, external communication refers to those stakeholders and other individuals which can be an essential part of the implementation of the change process. In this manner, the opinion of the key stakeholders who are not necessarily working within the organization must also be valued. Laszlo and Jean-Franhois (2000) advised that customer involvement provides an opportunity for service companies to get direct and immediate feedback which may be helpful for the implementation of a certain project. Effective internal and external communications educate customers and other stakeholders about the changes that are implemented within the company. The role of the manager in explaining to them the importance of such innovation can also help in gaining the support of the external environment (Orphen 1997).
Through communication, team participation and involvement are promoted. In addition, a number of authors concluded that communication helps in establishing trust and bonds among team members (Bandow 1998; Nath and Lederer 1996). The manager must not only have the right leadership skills but human and communication skills as well. It is necessary that these skills are flexible enough to tolerate constant changes, considering that task managers would have to communicate with different types of people. If the manager is informed with instrumental and conceptual knowledge, he/she can handle communication problems and eventually solve them in reference to the most applicable idea of management.
Manager as a Critical Success Factor
Understanding the dynamics of management in the application to any industry helps assess the potential opportunities and threats of every business organizations. According to David (2003), there are at least four types of resources which the company can use to achieve its objectives: financial, tangible, human and technological resources. As such, it is necessary to realistically assess potential levels of profitability, opportunity and risk based on five key factors within an industry so as to determine the long-term profitability of a market or market segment.
Critical success factors (CSFs) in business, are the limited number of areas in which results, if they are satisfactory can ensure that successful competitive advantage for the company (Thierauf 2001). Determining these factors is an old concept in business because there were great leaders throughout history who have identified and addressed key factors to achieve their successes. There is no one definition of CSF but it is considered that these are the areas which the company needs to concentrate on to flourish. Therefore, the activities should be carefully monitored and guided by the management.
Chung (1987) defined critical success factors as managerial factors that create a competitive edge for a company in its respective industry. There is no specific process in identifying and executing critical success factors in strategic management planning. This is the reason why Thierauf (2001) asserts that different companies which have similar structure can conduct its market entry forming different strategies which lead to the development of various critical factors. As the primary means for an organization to achieve its strategy, critical success factors must take into account the differences in the environment and organization that exists. And by having the knowledge of instrumental and conceptual principles, the manager is to be considered as the organization’s critical success factor per se.
Conclusion
Based on the discussions above, it is found out that the manager’s instrumental and conceptual knowledge of management particularly in the everyday dealings can serve as strategy that can take to building up or organizational sustainable competitive edge. The ability of a business to stay in significant period of time in the industry where it belongs is one measure of its success (Newstrom 2002; Mariotti 1999). This means that being able to survive is a necessity and survival translates to the ability of a business to compete. Since the 1980s, strategies have played key roles in planning to overcome challenges. It is believed that this line of thinking will continue to direct the activities of business into the 21st century (Paley 1999). Every business is subject to several factors that affect its function as a whole. These factors are the ones attributed for the success or even the failure of a business (Oliver 1997). Thus, it is accepted to confirm that they are essential in every business endeavour. The discussion above revealed the benefits of managers’ knowledge of instrumental and conceptual theories and practice of management particularly in performance of their daily tasks. Through effective and efficient strategic planning and management applied by the manager, the organisation’s resources, systems, and administrators can add value to the services delivered to customers, reduce risks in the organisation’s business, lessen the costs of business development and service delivery, and encourage improvement in internal business processes and external service implementation.
To employ these processes, there is the need to consider the continuous learning of the manager to the emerging and latest trends in the management practice. Risks, opportunities, ability of managers to handle and use new knowledge, and the effectiveness in the organisational setting are very imperative. Intensive preparation and study should be conducted in order to ensure that managers are fully equipped and ready to face the challenges as well as to successfully able to perform its deliberate functions. The new information acquired from organizational and management learning activities will have value and increases insight into organizational needs and the way the business is looked at. Adding more and more advantages to the whole organization and solving the problems as they occur will eventually lead to success and growth as mentioned. Having an experienced strategist in helping the management utilizes its resources, economic progression and corporate growth and success is promising.
The emergence of digitalization (Earl 1998) and globalization in all operating global industries paved way to the further improvements related to marketing and management techniques. Regardless of the unprecedented drawbacks of such ideas when being used, every organization and its managers are required to undergo constant knowledge progression and management must administer and control them in the most beneficial ways possible. Every decision made by the management must be directed to the welfare of the whole industry. With the right abilities, knowledge and characteristics of good manager, strategy and strategic planning plus constant organizational learning will result to eventual business productivity and growth, market superiority, competitive edge, and success.
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