Manager\'s Function Within an Organization?

¶ … manager's function within an organization? What are the most important skills that an effective manager should have?

An organization can have several definitions and it can be seen as several thing at the same time. First of all, it is "a group of people working together" to achieve a common goal. It is also an organized structure working to achieve a common strategic goal.

According to theory, management has four main functions: organizing, planning, directing/leading and controlling. Each plays an important role in the efficient functioning of the corporation. An efficient and effective manager should be able to perform all of these functions. Indeed, first of all, a good manager should be able to plan, that is to think ahead and create a strategic vision for an organization. In this sense, one needs imagination and strategic thinking. Second of all, the manager needs to be a good organizer, which means that he needs to be an excellent tactician and transpose into short-term actions his strategic visions. Third of all, a good manager will also need to be a leader. All true managers are leaders and in order to be a successful leader you need to have or crate a charisma for yourself, so that the employees will be able to appreciate and look up to you. Additionally, you need to be a good psychologist, so as to understand the people working for you and you need to be a good professional, in order to be able to do your job better than anybody in the organization. Finally, the controlling function again implies a good psychology.

2. Imagine that you are starting an International non-profit organization that specializes in providing economic education to individuals in third-world countries (...).

Given the nature of the activity (economic education), as well as the fact that each unit will practically act on its own in each of the locations, a decentralized structure is probably preferred. In this sense, the centre (Chicago) can undertake to general activities, such as deciding on the curricula, but each plan would be locally implemented by each of the units in part, leading this to a decentralized organization structure.

A decentralized organization will probably work best with a polycentric organization structure. Each center, as I have previously pointed out, will tactically and operationally act on its own, with the centre Chicago only coordinated overall actions and presenting strategic options for each location in part. Each of the location can also have a certain financial independence, which means that parts of the profits made can be used for local costs.

3. Making hiring decisions is not easy. Imagine that you have assembled a team of five individuals to hire managers for international non-profit organizations. Explain how emotions, social influences, and cognitive biases might influence the individual decisions you make while being part of this team.

The hiring process is first of all a difficult process because it is a strongly subjective one. Believe or not, one may refuse or accept some to work for the organization because you simply do not like him or the way he dresses or the way he may have acted on the respective interview. We have to agree that the interview is seldom long enough for someone to be able to properly discern on someone's technical or intellectual abilities. As such, it is often the case that we take an emotional decision.

This is also the case here. I may not want to hire someone who has previously worked in different corporations because I may feel he is reticent to accept the non-profit component of our organization. It is, in my opinion, often the case that businesspersons are unlikely to renounce the business and profit component on their jobs. Social influences are also bound to have a certain impact, again, at a subjective level. One might be turned down because his social status may not go hand in hand with the non-profit component.

4. What dimensions or characteristics of an organization culture might promote ethical and fair practices within the organization?

According to the article we are referring to, investment banks are always a place of rumors and inner struggles, even if Morgan Stanley has seemed to pull it off more than others at this point. The first cause of scandal was related to constant inner fights between some of the top executives. Further more, some of the retired influential persons have entered the stage demanding Purcell's renouncing his CEO position. The problem with Purcell here is that the company is obviously underperforming. In my opinion, the first recommendation that he should receive would be to pull the act together and find the appropriate means by which Morgan Stanley can be saved. The figures are indeed terrible in the last couple of years and a consulting team, perhaps from outside the company, should analyze what the direct causes for these results were.

In my opinion, even if the 'dinosaurs' would not admitted it, it is always a question about money. In this case, certainly, it also takes the face of the underperformance of the franchise they had worked for decades. Nevertheless, if Purcell would be able to put it back on track, then there would be no reason for further comments.

As for a fair and ethical culture, it is all about the corporate culture and about the factors defining that culture. The factors are not necessarily the managers, but also the employees, the people working and producing results for the organization.

5. The problem GM is facing is a problem that sometimes has repercussions at state level (see for example France, where social costs are reaching worrying levels). Social responsibility within a company is something that should probably be regulated by the contracts each employee has signed. In my opinion, unless stipulated in the contract, it is the state that needs to take care of its citizens rather than each company in part. It isn't really fair because the company is actually paying for the services the employee has provided during his lifetime and does not need to pay even further. In cases like GM, we are in the improbable, yet true situation where the CEO needs to worry more about pensions and healthcare schemes rather than about the actual activity of the company.