THREE KINDS OF MANAGERS
RULE-OF-THUMB - PAST PRACTICE  - MANAGEMENT BY PRINCIPLE    

You've seen these three types of managers. They typify current management practice. Two are out-molded, costly, time-consuming, and cause more problems than they solve. One represents management at its best creative, motivating, profit building.

The expression "rule-of-thumb" originated eons ago — back when the forerunner of today's carpenter used the distance between the knuckle of his thumb and its tip to approximate an inch. It worked only when one man performed an entire job. You can imagine the kind of house that would be built with a tall man working on one side and a short man on the other. It's application would be totally ridiculous in erecting a skyscraper, launching a rocket, or assembling a TV set.

Yet "rule-of-thumb" is all too common in business management today. You've seen it. Every decision is (and must be) made by the manager (or boss). It is his thumb and his thumb alone that takes the measure. It is characterized by no agreed upon standards, no set procedures, no systematic approach to problems, no consistency, and a resulting lack of confidence on the part of employees and customers. 

This manager operates by hit-and-miss, by guesses. Therefore his performance and that of his employees fluctuates all order the lot. He does not plan because he has no clearly spelled out objectives. Because he doesn't plan ahead, his personnel cannot plan and therefore cannot perform properly. Rule-of -thumb management exacts a heavy toll in high costs, in poor employee morale, and finally in lost business.

"We've done it this way for twenty years and it has always worked, so we will continue to do it this way."

"My father did it this way and what vas good enough for him is good enough for me.

"Get the file out and see what we did last year and just do it again."

Those are typical statements of managers relying on past practice as their method of management.

Such a man is surely not a builder of character and initiative in his personnel. His motto is "Don't think, just repeat". He will not attract the best people to a business. Worse than that he can not adjust to changing times. He can not solve current problems. He will not be able to take advantage of new opportunities to increase sales, reduce costs, or do things better than before.

The competitors move on to greater and more imaginative ideas while this man is still getting out the file.

MANAGEMENT BY PRINCIPLE                      TOP

There are intelligent, dependable methods for defining business problems old and new. There are ways to seek new and better solutions. There are logical systems of thinking to develop business objectives and to organize the work to be done so that it will be performed most efficiently and at lowest cost.

That is the kind of manager every company needs — an executive who practices the basic fundamentals and principles of modern management. The principles do not change, but the manager adapts their use to avoid old problems and take advantage of new opportunities. He approaches his responsibilities in a logical, systematic, scientific way. Well versed in the fundamentals and principles, he avoids creating problems of his own and can correct the common mistakes other executives make.

Most importantly, this manager builds a business. He seeks out and identifies new profit opportunities. He plans and organizes to attain them. He spurs people to creative action and initiative. He retains a light, but firm, hand of control over all significant operations. He gets results.

FIRST PRINCIPLE OF MANAGEMENT — The manager must
apply proven principles of management in the conduct 
of the business to assure maximum efficiency, economy, 
and profit. 

MANAGEMENT

The accomplishment of 
a desired result through human effort

FUNCTIONS OF MANAGEMENT

PLAN 

To Achieve a Desired Result

ORGANIZE 

To Put the Plan Into Effect

MOTIVATE 

The People to Execute the Plan

CONTROL 

The Activities to Conform to the Plan 

BIG STEP                   TOP

The biggest step a man takes in his business life is when he moves from doer to manager. Even the heady rise that may later follow, up through the chain of command to chief executive officer, does not make greater demands upon the man.

We can observe this in any functional area of business. Take sales as an example. Say a man mores from Junior to senior salesman. That is Just recognition that he knows his Job. He is given a little more work to do, maybe a bigger territory, and more pay. Or say he moves from the sale of a low-cost product to a high-priced one. The principles which guide him and the methods he uses do not change.

But when he becomes sales manager, his whole business life changes. Now, for the first time, he must achieve results through other people. No longer does his own effort, alone, count. He now has the power of hiring and firing and setting salaries and work standards. And now, for the first time, he must plan and control the work of others. He has .to teach them, motivate them, and appraise their performance. Almost everything he does now is new to him.

Further, he must resist doing most of the things he did so veil before — including the things he likes to do. If he is out there making the sale, he is not leading, guiding, training others. And that is his new job. It is not his job to perform the sales work. It is his job to multiply himself — to make 10, 100, or 1000 men as good or better than he vas.

Yes, this is the big step in a man's career. After the first one, from doer to manager, the others are just extensions or variations of management.

Unfortunately, most of us are ill-equipped for that first big step. Until now, we've done it all on our own. We are good; but we had a good man to work with or we wouldn't have been selected as a manager. Nov we have to get top performance from a vide variety of different men. For this we need a whole new set of skills. Even more important, we need a whole new way of looking at life — our business life.

Only when we understand and master the principles and practice of good management viU ve succeed in our new position. When we do, the rewards are many. More money, sure. And status and prestige. But more importantly, pride. We will have gathered and multiplied the varied skills of many men and lead them to achieving a valued and common goal.

The big step is therefore also a valued step ~ for each of us personally, for our family, our company, and society.

VOCABULARY — AN HBI3PENSABLE TOOL OF MANAGEMENT                   TOP

There are many reasons why a manager should enlarge his vocabulary.

First, because words are the "imprint" of ideas. Words are the tangible, meaningful-expression of an idea. Often, you don*t really nave an idea, nor is it fully conceited, until you put it in words. It is sometimes as important to express your idea in words for your understanding, as it is for you to explain your idea to someone else.

The second reason is to obtain precise expression. This is imperative for a manager. You make big decisions. What you say, and how you say it, can have vast influence within your company and outside. Your audience is large: employees, government officials, labor leaders, customers, and many others. Each seeks to learn the real meaning of what you say.

Third, a manager needs a special vocabulary relating to his function. As you move from doing work to directing work, you need new expressions to identify the elements and operations of your new responsibility. There needs to be a standard in language among managers, so that you can exchange ideas with other managers. 

WHY EXECUTIVES FAIL

Some are physically or emotionally weak; others seek security or are cowards. In any case, leadership is weak or nonexistent.

An inability to see ahead — neither potential problems nor new opportunities» No innovation in methods to find a better way. Usually encumbered by details.

Unable to perceive facts, to analyze, evaluate, and draw conclusions. Emotional, prejudiced, insensitive to others. Procrastinates.

In some cases because he has nothing to say. In others, failure to recognize the need for communication. Inability to get to the meat of the matter. Disorganized, inexpressive, time-consuming and wasteful.                    TOP

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