The Staffing and Directing Functions - Principles of Management - ثالث ثانوي

ZUZZ-TAM 3 Staffing, Directing, and Controlling

السليم 3122-7414 CHAPTER LESSONS 3.1 The Staffing and Directing Functions 3,2 Motivation and Change Management 3.3 The Controlling Function anagers have to deal with a range Mof responsibilities and challenges in the day-to-day operational aspects of any business. This chapter addresses the key operational aspects of staffing direct- Ing. and controlling. It considers some of the various theories behind motivation. It then addresses the issue of change Final- ly the chapter takes a closer look at the controlling function including the estab lishment of standards to measure and im- prove performance What are the greatest challenges associated with directing?

Lothair www.lemedu.v 3.1 The Staffing and Directing Functions KLEY TERMS Work Team Employee Motivation Operations Operations Management Process Improvement LEARNING OBJECTIVES Once you have completed this lesson, you should be able to 3.1.1 Recognize problems that can occur when plans are implemented. 3.1.2 identify important staffing activities performed by managers 3.1.3 identify important directing activities performed by managers الصليم 128 REALITY CHECK Losing Control An office supply company sells to the local business market through Internet and telephone sales, Hessa has been hired as the manag- er of a new telemarketing department that includes computerized relephone and order-processing systems. She has a large budget to retrain currem employees and to hire and train new employees A sales brochure highlighting the company's online catalog has been delivered to all local businesses the company guarantees that any order placed by 10 p.m. will be delivered by 10 am. The next day There was a real excitement among the employees when they made the sales calls to the new customers and soon orders began to come in However, the rapidly expanding sales volume has been putting pressure on Hessa's department. The workload has been in- creasing rapidly as the telephone sales staff took orders, answered questions, and attempted to solve customer problems. Technical difficulties have resulted in unanswered calls and slow computers. Customers and sales staff are frustrated, leading to employee dis- satisfaction and a high turnover rate. Experienced employees are quitting or asking for transters because of the pressure they are facing Chapter 3 Staffing, Direcong, and Controlling

عبارت التعليم Hessa knows her department is essential to the success of the company. If the department cannot mamtain and increase the level of sales and process orders efficiently, the new business strategy will fail. What's Your Reaction? What are the primary reasons for prob- lems in the new department? What might Hessa do to help em- ployees? LO 3.1.1 The Challenge of Staffing and Directing The staffing and directing functions of management involve carrying out the organization's plans by bringing together the right people to do the tasks, and guiding and supporting them so they can work effectively. The controlling function involves evaluating results to determine it the company's objectives have been accomplished as planned. The majonty of managers, especially supervisors and middle-level managers, spend a great deal of their time on staffing, directing, and controlling activities. Staffing focuses on finding the right individuals who can perform the work. It involves hiring employees, finding talent within the company, and possibly bringing in outside temporary workers to support a pro- ject Staffing can also involve assembling a team of employees who will work together for the long term or a team who will work on a specific work project for only a short period of time. Directing involves developing a plan that guides employees and ensuring they are motivated and have the resources needed to help achieve the company's goals. For example, a manager may commu- nicate important goals to a work team, provide leadership to help the team determine how to complete the necessary work, and ensure that rewards and recognition are provided to everyone involved when the goals are achieved. Lesson 3.1 The Staffing and Directing functious 129

In the Reality Check scenario at the beginning of the lesson, Hessa. had many activities for which she was responsible in the new depart- ment. She was spending a great deal of time staffing her team and directing that team to support the company's plans. Hessa discovered what many experienced managers have leamed. Plans are not effective unless they are implemented well. Changing conditions in a business create problems in the way work is accomplished. Hessa learned that the staffing and directing functions play an important role in helping her solve the problems she faces as a manager. At the beginning, Hessa was able to staff her team by hiring new employees. She had a generous training budget and three months to prepare employees for their new work. The team seemed to enjoy using the new computer equipment and making calls to customers. The preparation time and training made them comfortable with their new work. The careful planning to personally deliver the brochures to customers and make follow-up calls resulted in immediate orders. Employees were pleased with their initial success. Customers liked the rapid delivery guarantee and the service-onented approach of the local business. But as Hessa looked back at what happened, she realized when the problems had started. The first problem occurred when Hessa established sales quotas for each employee. With sales growing rapidly, she didn't think it would be difficult for most employees to make their quotas. Hessa believed the quotas would motivate everyone to sell, rather than just wait for customers to call in orders. However, some people easily exceeded their sales quotas while others seldom reached theirs. Several employ- ees complained that the quotas put too much emphasis on selling and didn't allow them adequate time to answer customers' questions and solve their problems. The department began to experience some computer difficulties. When a high volume of calls came in, the computers would slow down. Employees would have to wait to get information on their screens, and occasionally all of the information entered would be lost before the order could be processed. Also, Hessa learned that when sales volume was high, the company was not always able to meet its goal of over- 130 Chapter 3 Staffing, Directing, and Controlling ادارت التعليم 4

عبارت التعليم night delivery. The higher sales volume was difficult for the delivery department to handle because it was still operating with the same number of employees as when the new wholesale business started. As a result, the telemarketing employees were starting to receive customer complaints that they were unable to handle. While Hessa was struggling with the computer problems and the sales quota issue, she was also facing the growing employee turnover rate (a measure of replacing staff who have left the company). Even though she was hiring and training new employees, it seemed there were never enough employees to replace those who left and to handle the growing amount of business. To get new employees on the job faster, training time was reduced. That seemed to result in more errors in the orders processed. Veteran employees were being asked to work overtime to meet the demand and to help inexperienced telemarketers. That created even more employee dissatisfaction. Hessa couldn't believe that a plan that seemed so good and had initially been successful could result in so many problems Managers often have to identify solutions to complex problems. Hessa's original team was hired for sales talent and customer support. Some of these employees were likely to be motivated by success in selling, and others by supporting customers Technical and delivery problems, lack of support, and unhappy customers could make it more difficult for the sales team to reach quotas. ? CHECKPOINT identify several types of changes that can occur in an organization that can create problems in accomplish- ing plans. Lesson 3.1 The Staffing and Directing functions 1311

LO 3.1.2 Staffing Activities In the opening lesson scenario, Hessa staffed her team by retraining current employees and hiring new team members to work in telephone sales. Hessa needed to find the right individuals to do the work. Seldom do employees work alone. Managers must enable staff to reach goals by creating work teams. They must also ensure that staff have sufficient training to carry out the work. Hiring Managers may have direct hiring authority, or they may need to work through a company's human resources department during the hiring process. This typically begins by defining the job requirements and the type of person who could be successful in that position. For Hessa, her sales team members need to enjoy selling and be outgoing, fnendly, patient, and problem solvers. While many people may have those personal characteristics, they still may not be a good fit for a sales job. Companies spend a great deal of effort to identify a strong fit before they hire. For example, a college Whit up you think are the most important qualities m look for when recruiting new stuff?

دارت التعليم student applied for a sales position with a firm. The interviewing process included testing, listening and responding to real-world scenarios, and interviews with several people. After six meetings, the job candidate was asked to attend one last interview, where she was told she didn't get the job. She expressed her belief that the business had made a mistake, because she thought she was the best candidate. She thanked the inter- viewers for their time and said she would be happy to come to work for them if they changed their minds. They then responded, "When can you start?" The business was testing her capabilities as a salesperson, a position in which she would be visiting potential customers multiple times while trying to close a sale, but often hearing "no." The company wanted to be sure that she could take rejections without spoiling tuture relationships. Training It is not sufficient for managers simply to hire the right people. It is also essential to ensure that their staff are provided with sufficient training to carry out the job. This begins with an induction into the business, and introduction to other staff and systems. However, training should be continuous throughout their employment, with periodical refresher courses to remain up-to-date with the latest industry standards and to encourage career progression. Good managers recognize that a well- trained workforce is likely to be more motivated and productive. Work Teams Seldom do people carry out all of their work alone. Most people are part of a work team and rely on cooperation from others to reach goals. Well-organized teams can accomplish more than the same num- ber of people working independently. Managers need to be able to staff effective work teams. A work team is a group of individuals who cooperate to achieve a common goal. Effective work teams have several characteristics: ■ First, the members of the work team understand and support its purpose. They clearly understand the activities to be Lesson 3.1 The Staffing and Directing Functions 133

20122-1644 performed, know which activities they must perform, and have the knowledge and skills necessary to carry them out. ■ Second, work team members are committed to meeting the expectations of others in the team and helping the team succeed ■Third, work team members communicate well with each other and work to resolve problems within the team. Managers can play an important role in developing team effectiveness. To develop effective teams, managers must understand the character- istics that make teams effective, help to organize the team and develop the skills that are needed by the team, create a work environment that supports teamwork, and help the team resolve problems when they Occur ? CHECKPOINT identify characteristics of effective work teams. Team member mu be able to work well souther How in an individual employee conuibute to team effectiveness?

ورارت التعليم LO 3.1.3 Directing Activities To direct successfully, managers must master a number of activities designed to channel employee efforts in the right direction to achieve goals. These activities include problem solving, consensus building, financial analysis, effective communications, employee motivation, and operations management as shown in Figure 3-1. Financial Analysis Consensus Building Operations Management ACTIVITIES Problem Solving Effective Communications Employee Motivation Figure 3-1 Directing Activities to Achieve Goals A range of activities can be carried out by managers to channel employees' efforts to achieve company goals. Lesson 3.1 The Staffing and Directing Functions 135

التعليم Problem Solving In the Reality Check scenario at the beginning of this chapter, Hessa was facing a complex problem. Some of the issues were under her control, such as hiring and training. But other issues, such as technology problems, could not be solved solely by Hessa. Managers need to use critical-thinking skills for complex problems. This requires determining the cause of problems, identifying and evaluating alternative solutions, and then devising a plan to solve the problems Many of the causes of problems are outside of a manager's control. These could be internal issues within the company, such as the techni- cal and delivery problems in the Reality Check scenario, or they could. be driven by factors external to the company, such as competition, the economy, changing regulations, and many other factors known and unknown to managers. Managers need to be both creative and resourceful to solve these problems. Consensus Building Even if a manager has identified a plan, he or she will still need support to move that plan forward. In Hessa's case, she will need to collaborate with four major groups. She will need to work with the technology group to make it clear how the technical problems are impacting her team and the company's sales. She will also need to work with the order fulfillment department to help ensure customers aren't given delivery times that cannot be met. Flessa will also need to negotiate with her experienced sales team members to help ensure that they don't leave and will continue to support the new workers. Finally, she will need to work with new employees to be sure they are trained and ready to do the job. Financial Analysis Businesses need to ensure that they are using resources wisely, and managers must understand the financial impact of decisions. For exam- ple, the technology department may tell Hessa it needs SAR 200,000 to update the computer systems to fix the problem. Hessa will need to be 136 Chapter 3 Staffing, Directing, and Controlling

able to justify this expense through an analysis showing a reduction in lost sales and the potential increase in new sales as a result of the new computer system. Hessa will also need to develop sales forecasts and a budget for her operation. She must allocate her expenses over the year to ensure that she can maintain current business operations and support any new strategies she wants to put in place. Effective Communications Communication is an essential part of directing work in a business. Managers must be able to communicate plans and directions, gather feedback from employees, and identify and resolve communication problems Both personal and organizational communications are impor tant. Because so many forms of communication that exist in organi- zations today, managing communications technology is an important responsibility. Communication comes in many forms What types of communication EXISTS within an orgamzation

Why would amployees be motivated by their urug's uns such as recognition Instead of money? Communication is much more than telling employees what to do. In fact, if employees believe managers are being too directive, they will likely be dissatisfied and not work as hard or effectively as they could. An important communication skill for managers is to listen to employ- ees and involve them in deciding how work should be done. A manag- er should use both formal and informal communication. Encouraging employees to contribute their ideas and involving them in deciding the best way to do the work will help gain their commitment to achieving the goals. This is a good way to build consensus. Employee Motivation Employee motivation is the process of influencing the actions taken by an employee to accomplish a goal. Employees may be motivated to achieve company goals, or they may be motivated to pursue other goals that do not benefit the company. Managers can use rewards and punishments to encourage employees to motivate themselves toward pursuing company objectives. A reward is not motivating unless it is

عبارت التعليم something the employee values. The reward does not always have to be monetary. People also value things such as praise, respect, an inter- esting job assignment, or extended breaks after hard work. Motivation comes from influences both inside and outside the indi- vidual. Intrinsic motivation stems from a person's beliefs, feelings, and attitudes that influence the person's actions. For example, many work- ers are motivated to do a good job because they get a feeling of satis- faction from a job well done. Extrinsic motivation comes from rewards and punishments supplied by other people. For example, performing well on a difficult task may result in bonus pay, praise from the boss, or promotion to a team leadership position. For many people, intrinsic factors have the most influence on behav- ior. If employees consider work boring, they will not be motivated to do a good job. In the Reality Check scenario, the sales employees' intrinsic motivation for success could be negatively affected by feelings of frustration due to technology problems. For others, extrinsic factors have the strongest influence on performance. An employee who values recognition will likely be motivated by the challenge of a competition to obtain the highest customer service rating. Keeping work areas dean, cutter free, and repaired can motivate employees who value a pleasant work environment. All people have their own needs and, whenever possible, will choose to do things that satisfy their needs and avoid doing things that don't. Managers can influence employee performance by understanding individual needs and providing rewards that satisfy those needs when employees accomplish work goals. Motivation theories are discussed further in the following lesson. Operations Management Operations are the major ongoing activities of a business. Opera- tions management involves effectively directing the major activities of a business to achieve its goals. Several activities are part of opera- tions management. Facilities, equipment, materials, and supplies must be available and in good operating condition so employees can perform their work. Employees must have the knowledge and skills to do their Lesson 3.1 The Staffing and Directing Functions 139

التعليم work Managers must make sure that employees perform their tasks on schedule and work to resolve problems that could interfere with the successful completion of the job. Effective planning and organizing are important parts of operations management. Planning helps employees know what to do. In the same way, well-organized work spaces and procedures for completing work tasks help operations run smoothly. If problems occur in the operations of a business, managers should examine the planning and organizing of the work. Managers must be prepared to implement the activities assigned to their area of responsibility. Some activities are common to most management areas. For example, managers must hire new employees, monitor work schedules, and communicate policies and procedures. In addition, most departments are organized to perform specialized operations. The manager of the marketing department may be respon- sible for advertising and sales. The information systems manager must ensure that computer systems are operational, the company's Internet sites are up to date, and software is problem-free Managers need to understand the unique work of their departments in order to help employees perform that work. Hessa will need to build consensus with the information systems managers in the technology department to ensure proper operations in her department In the past several years, organizations have paid a great deal of attention to improving the way work is done. Due to increasing compe- tition, companies must operate efficiently to keep costs low so that they can compete successfully. Customers are demanding improved quality, so the company must produce products free of defects. The efforts to Increase the effectiveness and efficiency of specific business operations (as defined in Lesson 1.2) are known as process improvement. ? CHECKPOINT What are the primary activities managers must perform as part of the directing function? 140 Chapter 3 Staffing, Directing, and Controlling

عبارت التعليم " 3.1 Assessment UNDERSTAND MANAGEMENT CONCEPTS Determine the best answer for each of the following questions. 1. An example of an intrinsic motivation factor is. praise rom you uparvie b. pay increase perial atifimon d. The almtation al-workers 2. The efforts to increase the effectiveness and efficiency of specific business operations are known as organizational range b team inffectiveness cansus bulliling d. pass Improvement THINK CRITICALLY Answer the following questions as completely as possible. 3. What are some reasons that managers with well-developed plans may still have problems with when directing those plans? 4. Why do some employees work well in teams and others do not? Lesson 3.1 The Staffing and Directing functions 141