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Success of any organization or company relies on the leadership and way of managing that exist in the company. Some managers of particular company play different main roles. The most major roles played by managers are planning, organizing, staffing, directing, coordinating, reporting and budgeting. Planning mainly involves managers in setting long and short term activities of the company. Organizing is the aspect of setting up managers’ functions and activities to be done by the specific group of people. All duties mentioned above are carried out by managers at the specific level to ensure company still remains productive.
There are different ways of managing that can be employed in any company or institution. All these ways are basically involved with the sharing of said above manager functions in the best way as possible to the workers and other stakeholders. While these roles are performed in the best possible way, the overall fulfillment and productivity of the company of firm will increase, as all the stakeholders will be satisfied and motivated to continue being part of the company’s activities.
It is worth defining the diverse categories of managers in any institution or company. This will help to understand the variety of business management ways that are engaged in different companies. There are three of total levels of managers. Managers of the first line form the lowest level of the management and mainly supervise the employees’ actions. They also convey the information from the top managers to the employees. Managers of the second level are the middle managers who mainly regulate the activities of the first line managers. They also link the first line managers to the top managers. The last level of managers is the top managers who carry out the absolute role in managing of the company or institution.
The main ways of business doing that are implemented in most companies, are the hierarchical and the collaborative ways. Both of these types of managing have proved its productivity to the companies’ activities and the either choice which depends on the needs of general managers of institutions. Both of these ways of doing business have advantages and disadvantages. Recently, the most companies have moved from the hierarchical way of managing to the collaborative one. This proves the presence of advantages which have improved the general running of the companies. A brief description of the two ways of business management is given in the next two paragraphs.
Basically, the hierarchical way of management is a form of management when the every level of management is subordinated to other level. This accepts only the level of managers who are the general managers and are not subordinated to any other management level. For instance, the middle managers are subordinated to the top managers. This form of management allows specific management level to communicate officially only to the managers of both high and low levels a. This limitation of communication is usually the greatest disadvantage of this way of business management. However, this form of management is still being used in many organizations and companies in the most parts of the world (Asfahl&Rieske, 2009).
As it has been seen, in the hierarchical way of business management, the most of decisions that concern the general running of the institution or the company come from the top managers. This lets other employees and stakeholders to implement what their employers require. In fact, this form of management is formulated in slogan “let’s get the job done, not wallow in meetings”, and explore “valuable” feedback for everyone. I totally disagree with this slogan and the general aspect of the hierarchical way of business management. The fact that the other members of the company are left out of the process of making decision concerning topic issues of the company makes them deprive the motivation because of the lack of appreciation and acknowledgement. The employees are left to be just machine items that need to fulfill what the employers want.
The collaborative way of business management is a way of running business that gives a position in determining and implementation of the key issues in the company to the all stakeholders of an institution that improves fulfillment of their duties. The collaborative form of management recognizes the other stakeholders like workers among variety of Bodies like: employee negotiating committees, suggestion schemes, and manager directors on the board of directors, financial participation, autonomous team work and joint consultations.
In the collaborative form of business management, the overall management of the organization retains the common decision having made on behalf of the institution but seeks for utilization of the efforts and the employee’s initiative by involving them in the process of making decision. Although, this provides them with a chance to give suggestions on how some topic issues in the company can be handled or solved. Usually the top management informs the employees of its plans and opinions concerning a specific aspects that are about to be implemented in the institution or company, after that the employees are expected to give their suggestions, corrections and differing views on the point. On the ground of given suggestions, the managers look through them attentively to come up with a decision that combines the views of almost all stakeholders of the company (Morvay & Gvozdenac, 2008).This form of business management has several advantages that are analyzed in the next paragraphs.
Through the collaborative way of business management, professional advice is obtained concerning a specific issue from the employees who have knowledge of it from the basics. This assists to provide simple and inexpensive salvations to the issues that initially have looked quite complicated to the top management of the institution.
Collaborative way of management gives the workers to exert some limited control over their labor environment. At the same time, the workers become aware of their contribution has been accepted and implemented. So, they will be motivated to do their job more effective. This will improve the total intensity of the company.
The collaborative method also develops communication between the employers and employees. It means that the workers are capable to deliver their complaints to the top management easier.
In the hierarchical system of business management, there is a little link between workers and management. This automatically hides the valuable information of the management to the workers. The collective way of managing gives a chance for that kind of information to be transferred to the management directly from the lowest level of employees.
Due to collective negotiations between workers and management, the both parties will be able to get acquainted with an opinion on issue from another point of view. Through this, the both parties will understand the problems of each other, and that will assist to solve them. This also will encourage the unity, understanding and peace in the organization. All this aspects will bring success to the company.
Despite the many benefits of the collaborative way of management, it also has some disadvantages. One of them is the fact, that quite often the workers usually are concentrating on the immediate workplace issues while the management generally focuses on the long-term issues. Due to this division, there is a big probability of the making different decisions by the both parties concerning important issues (Barney & Hesterly, 2007).
As a rule, commonly, the joint consultations between management and workers are just a session where employees just might get unnecessary information about important issue. In that case, this cannot be useful to the company activities. In addition, some managers of enterprises represent that the workers may drive their own agenda while claiming the views
At the last point, some important and puzzled issues in a company may be highlighted to the workers. This may put the management in a vulnerable position as the workers might seek for explanations. So, this will influence the overall operations of the company as the employees may feel to be left out from the making important decisions.
Despite the few disadvantages that have been mentioned concerning the collaborative way of business doing, this still remains the most appropriate form of managing that needs to be adopted by all institutions. This is because this way allows workers to feel involvement to the institution activity and it will increase the efficiency of the fulfillment of their duties. As already said about the hierarchical form of managing, it may be applied but does not increase the efficiency of the fulfillment of workers duties as they always feel to be left out in the making of the most decisions of organization. Consequently, the most of institutions still have the hierarchical form of managing which is required to be abolished. At least this way of managing has to be replaced with the collaborative way which is more effectual.