Management Styles - A History and Case Study

Introduction Lewis Jeans has been operating as a manufacturer of jeans for ten years, and is currently one of the UK's leading manufacturers. 300 employees are divided over 3 geographic areas, with the head office in Croydon.

Due to an array of contributory factors, there has been a downturn in sales and profits over the previous 12 month period.

Sales - 20% reduction
Profit - 40% reduction
Returns due to quality issues - 15%

Management Styles - A History and Case Study

These figures, coupled with a worrying turnover of staff, and high manufacturing costs have ensured that a fundamental review of the whole structure of the company is necessary to halt further degeneration, and to allow the company to re-establish itself as a market leader.

This report will investigate the following areas:
Organisational and Managerial Structure
Organisational Culture
Staff Motivation

Each of these areas will be considered within the Lewis Jeans framework and formal advice will be given covering: Inherent strengths and weaknesses within Lewis Jeans. Recommendations for improvement.

Organisational and Managerial Structures

"An organisation is a system, having an established structure and conscious planning, in which people work and deal with one another in a coordinated and cooperative manner for the accomplishment of recognised tasks"

The above paragraph is a typical definition of what makes an organisation. The type of structure will influence everything about the organisation, including the relationships between individuals, who is empowered within the authority to make decisions, and how information is communicated throughout the organisation. Getting the correct structure in place to suit the objectives of the organisation, and the aspirations of its staff is imperative if the business is to flourish.

Lewis Jeans currently operates with a geographical structure. Three manufacturing facilities are located in the Northern, Central, and Southern areas of the United Kingdom. This geographic grouping of functions can be a viable option for some organisations, Tesco PLC being a prime example. Tesco needs retail outlets in most towns to allow it's customers to purchase the goods it offers.

The geographical structure can have a number of distinct advantages: Responding quickly to local needs and issues, allowing the organisation to become more sensitive to customer and employee needs. Bureaucratic 'red tape' can be reduced if each division is empowered with more decision making authority. There is a greater ability to tailor operations to local differences, such as language, law etc.

However, there can also be significant disadvantages: The duplication of facilities and roles. Additional management positions are required. Lack of unity in objectives and direction of semi-autonomous units.

Lewis Jeans has little necessity for a geographic structure to the organisation and many of the disadvantages discussed manifest themselves within the company. The argument for three plants could reasonably be made if Lewis Jeans were manufacturing multiple products which required different processes, staff specialisations, tooling and machinery, and supplying these products to differing markets with unique needs. A company which essentially manufactures one product range may benefit from one central production plant. It could be argued that additional storage and distribution depots may be advantageous, and could result in a more economical production process, with efficient distribution throughout the UK.

The simplified organisational chart below demonstrates how the organisation could be streamlined. The links flowing from top to bottom demonstrate the hierarchical structure (the direction of authority from top to bottom). The horizontal lines demonstrate the lines of communications which should exist between functional areas. Each 'area' forms a specialized team which will encourage team-working.

A Central Management Team consisting of specialists in each field make strategic decisions on company objectives and policy. Daily meetings will allow current and future issues to be decided quickly and efficiently. Lower level managers, who must be developed through training, appraisals etc, will make decisions on the day to day running of their departments. This allows the management team to look at 'the bigger picture' and not be consumed by the day to day production, sales and distribution issues.

Functional Structure

The simplified organisational chart above demonstrates how a functional structure may work for Lewis Jeans. The business is divided according to the business function performed by each department. Each functional area plays its own specialist role in working towards the objectives of the organisation. Groups of specialists are delegated control over specific work areas, thus avoiding duplication within the company. Potential problems regarding inter-departmental transfers and rivalry can occur but it is for the management team to resolve such issues before they occur.

Product Based Structure

An organisation is divided by the products it sells. Each product division performs all of its business functions, whilst working towards the organisations aims and objectives. With only one main product, or a variation on the theme, this structural framework would not benefit Lewis Jeans.

Matrix Structure

In a large organisation it may be useful to allow members of the company to be within more than one functional group. The introduction of 'Product Development Teams' which may produce more than one product (jeans, denim jackets) may be useful. Marketing and Sales could be linked, with specialists working in both areas.

Matrix structures do have a number of advantages: The organisation can focus on a number of aims at the same time. Flexibility to adapt and respond to changing demands and resources. Exchange of ideas between multi-role staff, instead of the insular approach of isolated departments.

The 'matrix approach' can result in an overcomplicated structure, with employees losing sight of the major aims of the organisation, a due to more than one chain of command, power struggles can occur.

The geographical structure of Lewis Jeans cannot be justified at the present time. One central production unit would make good business sense, providing premises could be adapted, or new premises located. Alternatively, North and South production facilities with an additional central distribution depot may allow suitable financial savings, coupled with an increased efficiency. A new single production unit may allow for a reduction in staff by as much as 30 - 40%, dependent on improvement in processes, technology etc. Relocation of staff may be possible if local distribution depots are introduced. Final consideration to locations would need to take into account customer locations, export markets and the need for storage. If products are transferred very quickly then a single distribution unit may suffice.

A further advantage of a single production unit would be the ability to implement a robust quality control system to ensure satisfactory standards. There may be additional factors involved in the quality issue, which will be discussed later.

Managerial Structure

At present, authority and decision making is firmly centralised at head office, with Mr. Bart Lewis making all decisions, and cascading those decisions down to his managers at the production units. The flow of communications is very much in a downward direction, with managers purely responsible for carrying out the directions of the Managing Director. The hierarchical principle stemmed from the theories of Bruno Lussato. The 'Scalar Concept' viewed an organisation as a group of grades, arranged in a sequence. Superior grades carried authority which could be delegated to the grade immediately below. Lower grades carried no authority at all. Authority descended from the top to the bottom along a well defined scale of posts. In the current system within Lewis Jeans, little authority is delegated at all, with managers little more than supervisors, passing down the orders from above.

Management Styles

Lippitt & White are among many researchers who have identified a range of leadership styles. Tightly controlled (autocratic) The leader alone makes decisions, with staff being informed of these decisions and then carrying out the task. Democratic (Persuasive or Consultative) The leader makes the decisions, and then persuades workers that his decision is the correct one. The leader consults staff before a decision is made. The leader has the final say, but takes staff views into consideration. Laissez-faire (loose) Opinions are not forced on staff, with no formal structure for decision making.

None of the above is the correct approach, but they do have differing effects on those within the organisation. The style adopted at Lewis Jeans is autocratic in nature. This type of management style may have a negative effect on middle managers and workers alike. Managers may feel that they are not trusted or empowered to manage their departments. The organisation is output orientated, and this will certainly affect motivation of all staff. A supportive management style, as argued by Charles Handy is said to foster: Worker satisfaction. Lower staff turnover and grievance rates. Fewer inter-group conflicts.

With extremely high levels of staff turnover, the style of management may have an important role to play in this area. Motivation is also significant and this will be discussed further on in this report.

Spans of Control

The span of control within an organisation is important. General Sir Iain Hamilton once said that, "No one brain can effectively control more than 6 or 7 other brains". It has been proven through research that the span of control (the number of subordinates that a person is directly responsible for) should be 3-6.

At present Mr. Lewis controls sixteen managers at present, five in each of the factories and a centralised sales manager. Each factory has eleven managers and three supervisors. This is not an efficient allocation of power and authority. One person having day to day responsibility for all areas of an organisation, some of which may not be his area of expertise can create failings in certain functions. As the organisational chart on page 4 demonstrates, with a higher level of trust and authority vested in professional, skilled managers, the 'span of control' could be significantly reduced for Mr. Lewis, but widened for lower level management staff. This would allow Mr. Lewis to concentrate on the 'strategic' decision-making of the organisation within a central management team, whilst allowing lower level managers to concentrate on the day to day issues of production, distribution, sales, and marketing. Regular managerial meetings would allow for updates on production, sales targets and organisational objectives which may change due to the dynamic nature of the clothing industry. A suitable structure would include weekly or monthly targets communicated to the responsible managers. Daily communication as happens at present will only reinforce managers opinions that they are not allowed to 'manage'. The flow of communication will be up as well as down the chain of command, giving local managers and subordinates a role in decision making. Those in the local facilities will be able to supply quality feedback on problems of stock, quality, retention issues etc. This will allow the management team to adjust their aims and objectives according to the latest information available. In addition to this, a well-organised system of recording and monitoring will ensure that all communication, orders, sales, returns and forecasts can be used as historic data to support future decisions.

Organisational Culture

The structure of an organisation is strongly influenced by the culture within it. A definition of culture is "the way we see and do things around here". History, traditions and structure are influencing factors on a company's culture. Behaviour of new workers within an organisation is often influenced by the 'norms' of behaviour already prevalent. The need to 'fit in' and be 'accepted' can often put pressure on individuals to conform. Culture can change over time as new people join the organisation, and as external factor change.

Charles Handy observed behaviour in a large number of organisations and described four main types of culture.

Power Culture

The centralisation of power is the main factor of this type of organisation. One person makes all the decisions. Individuals may feel suppressed by those with power. A 'Power Culture' is evident within Lewis Jeans.

Role Culture

Typically found in large organisations divided into layers of offices and officials. Power is hierarchical and determined by a person's position within the company. Strict job descriptions and communications prevail. Very little scope for individual growth or development.

Task Culture

A job or project orientated organisation. The task dictates how a team works, not strict, set down rules and regulations. The freedom and flexibility can make for a rewarding work environment. Due to the lack of formality, the management and control of a task culture can be difficult.

Person Culture

An organisation with a cluster of people, all working at the same level. Hierarchies cannot be formed without mutual consent.

Changing a culture to fit the objectives of the organisation is not straightforward. Some writers believe that the culture is created by the people, and a manager cannot change it on a whim. It is widely agreed that the actions of managers can have a profound influence on the culture within an organisation, far more so than written statements about what should happen.

A move away from the 'power culture' within Lewis Jeans could have profound effects on the attitude of workers. Empowering managers to make decisions, to run their departments, and to build confidence and desire within the workforce, to succeed for both themselves and for the organisation. A narrower span of control for the management team will force them to concentrate on the direction of the business and not be directly involved in the intricacies of production, distribution, and marketing. Providing suitable structures, quality managers, systems of work, and staff motivation needs are met, the Managing Director and his team need to be figureheads for the organisation, inspiring confidence, fairness and trust in all.

Staff Motivation

Lewis Jeans has developed a trend for a rapid turnover of staff. Less than 50% have been within the company for more than a year. This creates problems for the organisation: A lack of specialised and skilled staff. Low Morale amongst current staff. Poor image in the wider community, from where new employees may come. A lack of team vision. Little motivation to excel, and to rise to the challenges facing the company.

Managers can only perform well, and achieve the objectives required if they have an equally motivated team working with them.

To make a realistic analysis of the workers at Lewis Jeans, it is necessary to relate to some research into motivation, and lack of it.

Abraham Maslow

Maslow popularised the theory that people have needs. Maslow developed a 'Hierarchy of Needs' and concluded that when the needs of an individual were met at one level a higher level of motivation would develop. The levels from lowest to highest are: Physiological Needs Shelter & Safety Love & Belonging Esteem Self Actualisation

When applied to the workplace it can be seen that work can provide a means of helping people satisfy their needs. Not everyone has the same needs, so this must be taken into account.

Frederick Hertzberg

Hertzberg carried out research based on interviews to find out what satisfied and dissatisfied workers. He found a number off areas which were a potential cause for dissatisfaction. He called these 'Hygiene Factors'. Only when the hygiene factors have been adequately met can other factors improve performance. These are called 'Motivators'.

By considering the structure, management style, leadership and culture at Lewis Jeans, and then considering the factors mentioned above, it becomes clearer as to why the retention of staff is at a low ebb. The giving of financial bonuses and such incentives can provide short term solutions. It is necessary to consider that these production bonuses, coupled with low levels of motivation within the company are the major factor affecting the poor quality of goods. Staff have little loyalty to the organisation, and can see that turning out large quantities of goods, regardless of quality can result in useful additions to wage packets. There is a wider range of needs and motivators for most staff. If they feel used, undervalued, and have little chance of self improvement then motivation to perform will suffer. Whether it involves leaving the company, or working at levels that reduce quality purely to realise financial bonuses. These symptoms are all clearly visible within the company.

However, it is also a basis to design strategies which will alleviate such problems. Motivating the workforce through empowerment, delegation, recognition and a chance to improve themselves will promote a real change in the workforce.

Staff Appraisals

Regular staff appraisals are an essential part of developing a company's human resources. A yearly meeting with each member of staff allows both sides to highlight areas where performance has been good, and to look at areas of difficulty which may need some attention. It allows the appraisee to highlight development needs they may have; this could include training courses or aspirations for promotion. The appraiser needs to ensure that a fair and non-confrontational approach is adopted, and to make it clear that the meeting is for the benefit of both parties. Ideally, the appraiser and appraisee should have suitable paperwork to record their views at least 2-3 weeks before the appraisal meeting. When the discussion takes place, a 'meeting of minds' should occur, with both sides agreed on a way forward for the next year. An appropriate system of referral to another manager should be in place in case agreement cannot be reached. The process needs to be transparent and honest. Staff can become resentful of appraisal systems if they are not treated to all the facts surrounding the system.

Recommendations for Change

Lewis Jeans as been running under the same organisational and managerial structure for some ten years. In recent times performance has dropped and most of the problems have been created by the organisation itself. This can be changed. Changes in structure can be made fairly quickly. Cultural change can take considerably longer. Strong leadership will play a vital role in changing this culture. The recommendations below should be implemented as soon as practicable to ensure that change takes place. With a change such as this there will have to be a transitional period, but the impetus for change must be immediate.

Initiate changes to a functional structure for the company. Considerable planning will be required to implement changes in property use and re-deployment of staff. This may not be possible in certain cases and decisions will have to be made. Redundancies may be unavoidable, but should be a last resort. There is no reason why the organisation cannot introduce multiple structures to afford the best options to functional departments. Within the Finance Department there is a need for formal structures due to the procedural systems which need to be adopted. This would almost certainly set down fairly prescriptive definitions of what staff should do. Within a production or distribution department there will be considerably more scope for staff to demonstrate individual flair and team-working qualities. There is more option for an informal structure to these departments. This does not imply that an autocratic management style is suitable for any department, but demonstrates that different organisational and management structures can co-exist within one organisation.

Management and Leadership style must change. A Central Management Team will decide on aims and objectives. This should consider input from all levels of the organisation. A Staff Council allowing workers to contribute to the success of Lewis Jeans will undoubtedly motivate workers. Meetings with all levels of management will ensure that managers feel trusted and empowered to deal with their own departments, the areas in which their expertise lies.

Changes in management style will certainly affect the 'culture' within Lewis Jeans. The 'power culture' which currently exists is detrimental to the future success of the business. People will determine the success or failure of this organisation. A move towards a 'task culture' where staff work in teams, where there is little need for authoritarian management, where people feel that they can succeed and develop, should be the aspiration of the company. There can still be a discipline within the culture, but it should be more orientated towards 'self discipline' rather that autocracy.

Motivation of staff needs to be a focal point. All the recommendations above will contribute to this. Financial incentive, if delivered correctly can to a certain extent motivate workers. There are many other factors involved. A share of profits rather than production bonuses will focus staff on company success rather than short term individual gain. The need to ensure quality of goods thus increasing the good reputation of Lewis Jeans will lead to success and higher profits. These successes, which the workforce will have played a direct role in, will lead to financial reward and personal pride.

Communication between all sections must improve. Within this report we have discussed various strategies to enhance inter-personnel communication. There is also a need to communicate organisational plans to the correct areas. The Central Management Team meetings will agree strategy. This should be a consultative process. It is essential to draw on all areas of expertise within the organisation. Consultations with key staff and trades union officials / staff council members will assist co-operation. Weekly team meetings will allow concerns to be passed up the chain of command if necessary. Senior managers need to communicate directly with team leaders where possible. The telephone should be in place as a backup system. The use of electronic communication / video conferencing can be utilised for remote locations.

For growth to occur for Lewis Jeans, a wholesale evaluation of the marketing strategy needs to take place. The previous ten years have allowed Lewis Jeans to fall behind the current market leaders, with regard to diversification of the product base. The days where one style of jeans suited all are gone. There needs to be a thorough evaluation of current and future trends, and a marketing strategy adopted to reflect this. There may be a need for project team to be developed (this could draw on expertise from throughout the company) to create a radical marketing plan. This will need to consider product development, publicity, distribution methods (mail order catalogues, internet based sales, retail outlets). New products need to satisfy the needs of the existing clientele, but to drive the products into the 21st Century.

The image of the product is important. Potential users need to feel that these products can make a fashion statement. A large scale public relations exercise should be used to change opinions among the targeted public. This can consist of press releases, product publicity, advertising to show this exciting brand. If packaging is necessary it can be used to make the product noticeable, to convey the brand image, and to make it appeal to customers. Marketing therefore, needs to be at the forefront of the strategy.

Conclusion

This report places some exacting demands on Lewis Jeans. There are no simple solutions to its current problems. However, the organisation can turn its fortunes around if it accepts this report as the first building block towards future success. There will be no room for egos in the revitalised Lewis Jeans. Everyone MUST pull together to make this happen. People are the strength within this organisation, and with a unified, dynamic, progressive team, success is certain.

Management Styles - A History and Case Study
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Pain Management - Hiatal Hernia or Acid Reflux? - How to Cure Both

Acid Reflux - Hiatal Hernia

The Hiatal Hernia - Acid Reflux has been called the "great mimic", because it mimics many disorders. A person with this condition can get such severe pains in their chest that they think they are having a heart attack. They may think they have an over acid stomach because they will regurgitate stomach acid after they eat, or their stomach may hurt so badly they will think they have an ulcer. This is just a sampling of the symptoms that may occur from this disorder.

We always recommend that you see a medical professional to make sure there is nothing seriously wrong.

Pain Management - Hiatal Hernia or Acid Reflux? - How to Cure Both

What is a Hiatal Hernia?

When you swallow, your food passes down a long tube known as the esophagus into the stomach. This tube must pass through a muscle known as the diaphragm, which is located near the bottom of your rib cage.

This opening in the diaphragm, which permits the esophagus to pass through, is regulated by a sphincter muscle (or "valve"), which relaxes and opens, when we swallow, to permit the food to pass through the diaphragm and into the stomach. This sphincter or valve closes to prevent stomach acid from coming back up into the throat.

A hiatal hernia-acid reflux occurs when the top of the stomach rolls or slides up into this opening and becomes stuck there.

Naturally, when part of the stomach is forced up into the
diaphragm the sphincter muscle cannot close properly.

Thus, stomach acid may travel back up into the esophagus causing burning sensations (heartburn), esophageal spasms, inflammations and ulcers. (known as the Acid Reflux)

Your diaphragm is a muscle. The diaphragm has three large openings for passage of the aorta, esophagus, and vena cana. When you don't use your diaphragm to breathe, it weakens, and becomes flaccid.

This allows your stomach to be pushed through your diaphragm by gas pressure in your digestive tract in what is known as a hiatal hernia. The resulting pain is often confused for the onset of a heart attack.

A flaccid diaphragm most often results from chest breathing or shallow breathing.

The digestive tract has a series of one way valves to keep food material moving in the correct direction: the esophageal valve in the esophagus, a sphincter muscle valve between the esophagus and the stomach. The pyloric valve between the stomach and the small intestine, the ileocecal valve between the small intestine and the large intestine, and the Houston valve in the descending colon.

When one or more of these valves malfunctions, pressure from gas in the intestines may force food material to back up, pushing stomach acid into the esophagus.

The interesting discovery that we made with our studies in kinesiology was the relationship between these valves and the diaphragm muscle.

The valves generally do not malfunction as long as the diaphragm muscle remains strong and in balance. Once the diaphragm muscle weakens one or more of these valves may malfunction leading to a hiatal hernia and/or acid reflux.

Once the causes of mock heart attack (hiatal hernia) and acid reflux are properly identified, the preferred treatment becomes apparent. Both conditions can be corrected by doing diaphragmatic breathing exercises that both strengthen the diaphragm muscle and force the stomach down and out of the diaphragm.

Technique in Practicing Using The Diaphragm

1. Place your hand on your stomach
When you take an in-breath your stomach goes out.
2. When you release your breath your stomach goes in.

This may be difficult to do at the beginning.
To practice, you can lie on your back and put a book on your stomach. Concentrate with your in-breath pushing the book up and letting it fall when you release your breath.

This exercise can be done on the spot in whatever position you happen to be, standing, sitting, or lying down.

What I have discovered is that when I went to bed at night and did not feel very well, I would put my hand on my stomach and concentrate when taking an in breath to push my stomach out and feel it relax when I let my breath out. I would do this slowly.

The ultimate answer is learning to breathe with your diaphragm all the time. This involves regular practice of diaphragmatic breathing, and a continuing consciousness of how you are breathing.

As you continue this over a period of time, diaphragmatic breathing will become automatic.

A further benefit of diaphragmatic breathing is improved airflow into the lower parts of the lungs and better oxygenation

Once again we have found that helping your body to heal itself through muscle and energy balancing often provides satisfactory results in the long run.

Proper diaphragmatic breathing is important for our overall well-being. Proper diaphragmatic breathing assists us to properly oxygenate our body, particularly during physical exercise, reducing chronic fatigue due to shallow breathing.

It also helps us to maintain proper muscle tone in our diaphragm. This in turn helps us to hold our abdominal organs in the proper position and to reduce abdominal and chest pains. This is often helpful after eating to reduce gastronomic distress.

Another important feature of the Barhydt basic balances is that they always drive the body-mind toward equilibrium (or balance).

A person cannot harm himself or herself by doing these balancing exercises. Just do the exercise if you feel it may be helpful; it generally takes just a few seconds in any case. This makes basic balancing exercises appropriate for self-help.

Another benefit I have discovered when I learned to breathe using my diaphragm is that I can eat most anything like tomato-based foods (ketchup, spaghetti sauce), citrus fruits, mint, and even chocolate within moderation.

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Project Management - Risk Management

There are some factors to consider when identifying risk in a project. A risk is known as some future happening that results in a change in the environment. It has associated with it a loss that can be estimated, a probability that the event will occur, which can be estimated, and a choice on the projects manager's part as to what to do, if anything, to mitigate the risk and reduce the loss that will occur.

During the project planning process, the risk assessment which is normally completed during the development of the Business Case is reviewed and updated by the project team. Risk assessment is formalized subjective assessment of the probability of project success. Risk assessment has an obvious impact on the management style, team structure, use of methodology, strategies for system development, and, most importantly, the business decision to approve the project.

Simply, the greater the risk of the project, the higher the probability that estimates, schedules, and planning will be incorrect and that the project will move "out of control". The risk of a project can be established by considering the following criteria;

Project Management - Risk Management

What are the risks? What is the probability of loss that results from them? How much are the losses likely to cost? What might the losses be if the worst happens? What are the alternatives? How can the losses be reduced or eliminated? Will the alternatives produce other risks?

The business decision is to assess how the expected loss compares to the cost of defraying all or some of the loss and then taking the appropriate action.

It is mandatory that, throughout the system development process and especially during project planning, the project manager consider these project risk criteria using a formal questionnaire and develop a risk mitigation list. If the project manager considers the combination of any of these factors is significant and contributes to the degree of risk of the project, he or she is encouraged to consider the following actions;

Take steps to limit the scope of the project to reduce its complexity Document the areas of complexity in the Project Plan and allow for additional time/resources Raise a formal Risk Memorandum that details the high-level factors, identifies their possible impact and actions/options available to reduce that impact or reduce the risk factor.

It is imperative that the management of project risk is seen as a proactive process. For example, prior to the commencement of the full development cycle, the project manager should negotiate with the Steering Committee, key stakeholders and sponsor to minimize the high-risk factors.

To increase the likelihood of project success, the project team must put in place a program that identifies risks and steps to mitigate that risk. The management and minimization of project risk is the responsibility of all involved parties in the project.

Project Management - Risk Management
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7 Tips For Effective Financial Management

In some organisations, managers and leaders fall into the trap of believing that financial management is something that the accounts team are fully responsible for. While there will be areas like cash management, payroll, paying suppliers and collecting payments from customers that are likely to be handled by the accounts team, financial management falls into the remit of all managers and leaders. Mangers often have concerns about this area, often believing that it is difficult and complex. The truth is that if you are an expert in your area of the business, you can excel in financial management. So what are my key tips?

Tip 1: Be actively involved in setting a budget

Most businesses now devolve budget responsibility as much as they possibly can. As a result, managers have a chance to be actively involved in determining things like:

7 Tips For Effective Financial Management

o Sales volumes

o Temporary staffing cover for vacancies

o Staffing levels to deliver the sales

o Buying preferences in terms of products that will be used in delivering agreed volumes

o Investment in new equipment or facilities

Don't miss out on your chance to determine your budget.

Tip 2: Be clear on your assumptions

A budget is a plan for the future based on the best evidence you have at the time you prepare it. You will have to make assumptions about things like sales growth, staff turnover, sickness, price inflation, etc. Make sure that when presenting your budgets the assumptions are clearly stated.

Tip 3: Work with your accountant

Your accountant who works with you in the business is essentially your personal business advisor. Use your accountant in this way and you will reap numerous benefits. Your accountant gets a better understanding of your area of the business and what the key drivers of revenues and costs are, which will be immensely helpful when it comes to reviewing performance throughout the year.
In addition, your accountant can model results for you based on different assumptions and help you to get a much clearer picture of the risks that might need to be managed.

Tip 4: Share the budget with your team

As a manager and leader, your success depends on the results of the team. Take the time to share your budget with your team, including the key assumptions on which it is based. If the team know what they are aiming for in terms of financial results, they will look to do the right things operationally to get the best result.

Tip 5: Take responsibility

When the going gets tough it is so easy to start to look elsewhere for excuses. If you have been involved in setting a budget which you have signed up to, focus your energies on getting results rather than the injustice of the current situation.

Tip 6: Monitor performance and take action

Make sure that you have a process in place to carefully monitor your actual performance against the budget. If things are going well see if there is more you can do to boost performance even further. If on the other hand things are not going as well as expected, focus on the changes you need to make or action you need to take to get back on track.

Tip 7: Focus on the most important numbers

When it comes to financial management, managers can sometimes get lost in lots of detail and trivia. Be clear on what are the 2-3 big numbers that you need to pay attention to, as they will more than likely constitute about 90% of your budget. In most businesses this will be:

o Income from sales or services

o Salary costs of employees

o Major non salary cost such as materials

Make sure that you have as good an understanding of what impacts on these numbers at the business unit level so that you can keep things on track.

At the end of the day, internal financial statements such as budgets merely reflect what is happening operationally in a common currency called money. Keep this at the forefront of your mind and you have a great chance to excel as a manager.

7 Tips For Effective Financial Management
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Duncan Brodie helps managers and leaders to achieve their true potential. Sign up today for his free monthly newsletter at http://www.goalsandachievements.co.uk

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Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness

Successful executives, managers and supervisors know that the importance of effective communication in the workplace cannot be underestimated. Poor communication is responsible for mistakes, conflict, and negativity in the workplace. Have you ever thought the following?

"Oops, I know I said that, but what I meant to say was..."    
 

" Why can't I get buy in from the team?"

Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness

"That mistake could have been avoided if I had only said...." 

Two common communication barriers are:
Not being aware of effective communication skills Being in a hurry.
Since effective communication in business is essential to success at your company or organization, it makes sense to improve your communication skills. The good news is that you can learn some basic communication skills and use them today to improve the quality of your workplace relationships with both employees and customers.

Seven Communication Skills for the Workplace

1. Personal Contact

Did you ever wonder why companies spend thousands of dollars sending sales people across the country when they could do a phone call for much less? The reason is that people relate to one another better when they can meet in person and read each other's body language. What's more, people can feel the energy the connection creates. You can also smile and shake someone's hand when you greet them, which creates a powerful connection.

2. Develop a network.

No one achieves success alone. Success in any company requires a team effort.
Make an effort to get to know managers and employees in different departments within your company, Meet new people in professional organizations. Become active in your community.
3. Always be courteous.

Courtesy lets people know that you care.

The words "Thank You" show that you appreciate your employees' efforts, and this is important because appreciation is the number one thing that employees want from management.

A little change like saying, "Would you please..." instead of just, "Please..." will make you sound less dogmatic and will improve your relationships with your employees.

4. Be clear

Since people often hear things differently, and they may be hesitant to ask you to explain what you said, you should ask, "Did I explain this clearly?" This will confirm that people understood you.

5. Compromise

You can decrease the tension associated with conflict  if you always ask, "What is best for the company?" This gives people a different perspective on your requests, and they will be less likely to take any conflict personally.

6. Be interesting and interested

Even though most of your workplace communications will be about business topics, it is also important to share your personal side. Let your staff know about your interests and your family, and ask them about theirs. Telling a few short personal stories about your interesting experiences will make your employees feel more connected to you as a person. Read your hometown paper daily so you know what is going on in your community and what personal concerns your staff may have about them.

7. Listen

Listening attentively to your employees demonstrates respect. Listening isn't easy because everyone's mind tends to wander. So to help you concentrate on what the other person is saying, keep a good eye contact --without staring,  and then make a comment about it or ask a question.

Improving your communication skills is a process that happens gradually over a period of time. The good news is that you have opportunities to practice your communication skills every day at work. Here's a tip to help you improve faster. At the end of each day, take a moment to review your communications during the day. What was effective? What wasn't effective? That way you will continue to learn and improve your communication skills.

Communication is the key to success in business

That is why you should be aware of how you are communicating at all times. As a result... you will become a role model for effective workplace communication skills to your employees. This is important because the ultimate goal of any supervisor, manager or executive is to turn ordinary workers into extraordinary employees. You can take a huge step toward doing this by honing your own communication skills.

Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness
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Successful Workplace Communication is one of the 13 essential skills that employees use at work. The Employee Success Toolkit is a professional development course for employees that teaches these essential skills in 13 easy-to-follow lessons. See what these 13 skills are at: http://www.EmployeeSuccessToolkit.com

I also invite you to visit http://www.ConfidenceCenter.com for a free Employee Morale Starter eKit and Employee Morale Calendar Planner

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Property Management - Commercial Management

Property management is an ever growing need as more and more people are now opting out of buying homes due to aspects such as the increase in mortgage prices. Renting is now becoming the more popular way of gaining property. It is because of the fact that more of us are now renting property that that need for property management has grown so much. It should be noted that property management requires time, intelligence and good attention to detail as well as management qualifications.

Property management is the job of looking after the properties that people rent out. This is the same for residential and commercial property. Whatever type of property you have as long as you are renting it; you will be able to get the help of property a management team.

Property management companies have the responsibility to deal with multiple responsibilities and aspects of the management and ownership of real estate. The duties of a property management company is to negotiate and stabilise a relationship between the landlord and tenant. The duties performed by a property management company are pretty much the same if your property is a residential or commercial but here we are mainly going to be looking at commercial property. Whether your property is an office block, a retail store or a bar/restaurant the duties that a property management team will perform for you are:

Property Management - Commercial Management

o Collecting rent

o Handle your letting

o Asses potential tenants

o Administration services

o Maintenance of the property

Commercial property management is an essential aspect of the property market if you want to increase the appeal or value of your property. It will allow you to get on with your renting business while the management company gets on with the day-to-day running. The extent of the service that is provided by a property management team is as flexible as you want it to be; it can be used as much as you need it to be.

A professional commercial property management service maintains and raises the level of occupancy, which enables a steady income. This is because a property management company keeps your commercial property in good condition in order to bring in business for the landlord. Your commercial property needs good curb appeal. This is achieved through keeping the structure, landscape and parking elements of the property in a clean and welcoming condition.

Your commercial property needs to be kept in good condition in order to attract customers to use your business. You need to ensure that your property is in good condition to attract businesses to set up shop within your property.

If you have invested within the property market then you will want to ensure that you are getting the most from your investment, which is where commercial property management can help you. By keeping a well run and well maintained property you will generate interest within your business and therefore attract more custom.

If you would like more information about what a commercial property management team could do for you get in touch with an expert company today.

Property Management - Commercial Management
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Helen is the web master of ARCH Property Management, specialists in all aspects of Property Management [http://www.archpropertymanagement.co.uk/article/1/0/online_property_management_software_for_landlords.html].

Please feel free to republish this article provided a working hyperlink remains to our site.

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The Challenges of Human Resource Management

Introduction

The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources.

With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization's big picture and be able to influence key decisions and policies. In general, the focus of today's HR Manager is on strategic personnel retention and talents development. HR professionals will be coaches, counselors, mentors, and succession planners to help motivate organization's members and their loyalty. The HR manager will also promote and fight for values, ethics, beliefs, and spirituality within their organizations, especially in the management of workplace diversity.

The Challenges of Human Resource Management

This paper will highlight on how a HR manager can meet the challenges of workplace diversity, how to motivate employees through gain-sharing and executive information system through proper planning, organizing, leading and controlling their human resources.

Workplace Diversity

According to Thomas (1992), dimensions of workplace diversity include, but are not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience.

The Challenges of Workplace Diversity

The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena (Cox, 1993), which must be one of the important organisational goals to be attained. More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors.

This is especially true for multinational companies (MNCs) who have operations on a global scale and employ people of different countries, ethical and cultural backgrounds. Thus, a HR manager needs to be mindful and may employ a 'Think Global, Act Local' approach in most circumstances. The challenge of workplace diversity is also prevalent amongst Singapore's Small and Medium Enterprises (SMEs). With a population of only four million people and the nation's strive towards high technology and knowledge-based economy; foreign talents are lured to share their expertise in these areas. Thus, many local HR managers have to undergo cultural-based Human Resource Management training to further their abilities to motivate a group of professional that are highly qualified but culturally diverse. Furthermore, the HR professional must assure the local professionals that these foreign talents are not a threat to their career advancement (Toh, 1993). In many ways, the effectiveness of workplace diversity management is dependent on the skilful balancing act of the HR manager.

One of the main reasons for ineffective workplace diversity management is the predisposition to pigeonhole employees, placing them in a different silo based on their diversity profile (Thomas, 1992). In the real world, diversity cannot be easily categorized and those organizations that respond to human complexity by leveraging the talents of a broad workforce will be the most effective in growing their businesses and their customer base.

The Management of Workplace Diversity

In order to effectively manage workplace diversity, Cox (1993) suggests that a HR Manager needs to change from an ethnocentric view ("our way is the best way") to a culturally relative perspective ("let's take the best of a variety of ways"). This shift in philosophy has to be ingrained in the managerial framework of the HR Manager in his/her planning, organizing, leading and controlling of organizational resources.

As suggested by Thomas (1992) and Cox (1993), there are several best practices that a HR manager can adopt in ensuring effective management of workplace diversity in order to attain organizational goals. They are:

Planning a Mentoring Program-

One of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring Program. This could entail involving different departmental managers in a mentoring program to coach and provide feedback to employees who are different from them. In order for the program to run successfully, it is wise to provide practical training for these managers or seek help from consultants and experts in this field. Usually, such a program will encourage organization's members to air their opinions and learn how to resolve conflicts due to their diversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members to move beyond their own cultural frame of reference to recognize and take full advantage of the productivity potential inherent in a diverse population.

Organizing Talents Strategically-

Many companies are now realizing the advantages of a diverse workplace. As more and more companies are going global in their market expansions either physically or virtually (for example, E-commerce-related companies), there is a necessity to employ diverse talents to understand the various niches of the market. For example, when China was opening up its markets and exporting their products globally in the late 1980s, the Chinese companies (such as China's electronic giants such as Haier) were seeking the marketing expertise of Singaporeans. This is because Singapore's marketing talents were able to understand the local China markets relatively well (almost 75% of Singaporeans are of Chinese descent) and as well as being attuned to the markets in the West due to Singapore's open economic policies and English language abilities. (Toh, R, 1993)

With this trend in place, a HR Manager must be able to organize the pool of diverse talents strategically for the organization. He/She must consider how a diverse workforce can enable the company to attain new markets and other organizational goals in order to harness the full potential of workplace diversity.

An organization that sees the existence of a diverse workforce as an organizational asset rather than a liability would indirectly help the organization to positively take in its stride some of the less positive aspects of workforce diversity.

Leading the Talk-

A HR Manager needs to advocate a diverse workforce by making diversity evident at all organizational levels. Otherwise, some employees will quickly conclude that there is no future for them in the company. As the HR Manager, it is pertinent to show respect for diversity issues and promote clear and positive responses to them. He/She must also show a high level of commitment and be able to resolve issues of workplace diversity in an ethical and responsible manner.

Control and Measure Results-

A HR Manager must conduct regular organizational assessments on issues like pay, benefits, work environment, management and promotional opportunities to assess the progress over the long term. There is also a need to develop appropriate measuring tools to measure the impact of diversity initiatives at the organization through organization-wide feedback surveys and other methods. Without proper control and evaluation, some of these diversity initiatives may just fizzle out, without resolving any real problems that may surface due to workplace diversity.

Motivational Approaches

Workplace motivation can be defined as the influence that makes us do things to achieve organizational goals: this is a result of our individual needs being satisfied (or met) so that we are motivated to complete organizational tasks effectively. As these needs vary from person to person, an organization must be able to utilize different motivational tools to encourage their employees to put in the required effort and increase productivity for the company.

Why do we need motivated employees? The answer is survival (Smith, 1994). In our changing workplace and competitive market environments, motivated employees and their contributions are the necessary currency for an organization's survival and success. Motivational factors in an organizational context include working environment, job characteristics, appropriate organizational reward system and so on.

The development of an appropriate organizational reward system is probably one of the strongest motivational factors. This can influence both job satisfaction and employee motivation. The reward system affects job satisfaction by making the employee more comfortable and contented as a result of the rewards received. The reward system influences motivation primarily through the perceived value of the rewards and their contingency on performance (Hickins, 1998).

To be effective, an organizational reward system should be based on sound understanding of the motivation of people at work. In this paper, I will be touching on the one of the more popular methods of reward systems, gain-sharing.

Gain-sharing:

Gain-sharing programs generally refer to incentive plans that involve employees in a common effort to improve organizational performance, and are based on the concept that the resulting incremental economic gains are shared among employees and the company.

In most cases, workers voluntarily participate in management to accept responsibility for major reforms. This type of pay is based on factors directly under a worker's control (i.e., productivity or costs). Gains are measured and distributions are made frequently through a predetermined formula. Because this pay is only implemented when gains are achieved, gain-sharing plans do not adversely affect company costs (Paulsen, 1991).

Managing Gain-sharing

In order for a gain-sharing program that meets the minimum requirements for success to be in place, Paulsen (1991) and Boyett (1988) have suggested a few pointers in the effective management of a gain-sharing program. They are as follows:

A HR manager must ensure that the people who will be participating in the plan are influencing the performance measured by the gain-sharing formula in a significant way by changes in their day-to-day behavior. The main idea of the gain sharing is to motivate members to increase productivity through their behavioral changes and working attitudes. If the increase in the performance measurement was due to external factors, then it would have defeated the purpose of having a gain-sharing program. An effective manager must ensure that the gain-sharing targets are challenging but legitimate and attainable. In addition, the targets should be specific and challenging but reasonable and justifiable given the historical performance, the business strategy and the competitive environment. If the gain-sharing participants perceive the target as an impossibility and are not motivated at all, the whole program will be a disaster. A manager must provide useful feedback as a guidance to the gain-sharing participants concerning how they need to change their behavior(s) to realize gain-sharing payouts The feedback should be frequent, objective and clearly based on the members' performance in relation to the gain-sharing target. A manager must have an effective mechanism in place to allow gain-sharing participants to initiate changes in work procedures and methods and/or requesting new or additional resources such as new technology to improve performance and realize gains. Though a manager must have a tight control of company's resources, reasonable and justifiable requests for additional resources and/or changes in work methods from gain-sharing participants should be considered.

Executive Information Systems

Executive Information System (EIS) is the most common term used for the unified collections of computer hardware and software that track the essential data of a business' daily performance and present it to managers as an aid to their planning and decision-making (Choo, 1991). With an EIS in place, a company can track inventory, sales, and receivables, compare today's data with historical patterns. In addition, an EIS will aid in spotting significant variations from "normal" trends almost as soon as it develops, giving the company the maximum amount of time to make decisions and implement required changes to put your business back on the right track. This would enable EIS to be a useful tool in an organization's strategic planning, as well as day-to-day management (Laudon, K and Laudon, J, 2003).

Managing EIS

As information is the basis of decision-making in an organization, there lies a great need for effective managerial control. A good control system would ensure the communication of the right information at the right time and relayed to the right people to take prompt actions.

When managing an Executive Information System, a HR manager must first find out exactly what information decision-makers would like to have available in the field of human resource management, and then to include it in the EIS. This is because having people simply use an EIS that lacks critical information is of no value-add to the organization. In addition, the manager must ensure that the use of information technology has to be brought into alignment with strategic business goals (Laudon, K and Laudon, J, 2003).

Conclusion

The role of the HR manager must parallel the needs of the changing organization. Successful organizations are becoming more adaptable, resilient, quick to change directions, and customer-centered. Within this environment, the HR professional must learn how to manage effectively through planning, organizing, leading and controlling the human resource and be knowledgeable of emerging trends in training and employee development.

The Challenges of Human Resource Management
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Dr.Alvin Chan is a Senior Research Consultant at a research think-tank in Asia.

alvinchan@firstquatermain.com

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