Who are the managers? People who are carrying the responsibility for reaching organizational goals with well-structured steps and resources. This means that management has a direct impact on both employees and organizational development.
Business management is not a game, that is a battle, and everybody is involved in that battle: both the CEO and the employees of a lower level.
The 4 functions of management: planning, organizing, leading and controlling include a huge range of aspects that should be covered by managers.
The management is responsible not only for the revenue of the company but also for employee motivation, corporate culture, the company’s reputation, job satisfaction, etc. Effects of poor management can be the destruction of the organizational strategy. If the manager is not able to conduct a right and direct strategy for a company, is not making an appropriate decision, is not able to forecast and be competitive in the market, it brings to the failure of the whole company.
Let’s remember one of the largest companies, which didn’t embrace the concept of being innovative and competitive: Nokia. The company was a global leader in mobile phones during the 90s and 2000s; however, everything was changed when the internet came into existence, and many other companies started to think about the data, which could be a new way of communication. Nokia did not pay much attention to this component and did not want to make further developments on its products, be innovative, and finally did not understand consumers’ needs and make forecasting.
Only in 2008, when Apple was a leader in the mobile phones sector, Nokia just “woke up” and decided to enter that innovative world; however it failed. Nokia’s failure is the failure of its management. Managers have a huge impact on employees; in this case, the R&D team should have been more attentive to what was going on in the world and came up with a bunch of solutions. Unfortunately, poor management destroyed this giant company. There are many examples as well as Xerox, Kodak, Blockbuster.
A new management approach is a positive approach, which presents itself as an organization-wide strategy to motivate employees, increase productivity and efficiency, reach organizational goals through creating pleasant and warm relationships at the workplace. Here the corporate culture has a huge role since it is the main base of a healthy atmosphere at the workplace. Many employees or employee managers, while entering a new organization, first of all, pay attention to its culture: it symbolizes the atmosphere, the relationship, the values of both the company and the management. Managers impact on employees’ engagement in the company, and it should bring only positive results for the company. Thus managers often let their employees be creative, innovative and find solutions to future problems, which increases employee motivation.
Except for influencing the employees, the manager should speak up. Not all business decisions made by the CEO or the board can be right at the moment: the managers should come up with judgments and other solutions. It is not in vain that nowadays, the most valuable and principal skills are considered to be problem-solving and analytical thinking. Leadership has its role in all these aspects as well. Moreover, a straightforward, strong-willed, and far-sighted leader can solve many problems and invest in the development of the company.
There are a lot of great examples of companies that have succeeded thanks to its leaders like Apple, Microsoft, Alibaba, Toyota, and many others. Everything in the company depends on management and the decisions made by them.