A Literature Review
presented to Saint Mary’s College in partial fulfillment of the
requirements for the degree of
Bachelor of Arts in Management
by
Corey L. Nelson
MMA06
Sunday, January 28, 2001
High technology companies move faster than traditional businesses. Time is the most valuable asset. Unfortunately, time is limited. Competition if fierce. Getting experience and technically competent managers is a huge challenge. The resulting behavior is to hire managers that are technically smart, but managerially inexperienced. This combination is the opposed of what is required for most management positions. In the end, many companies experience a high turnover rate of managers that are initially set up to fail in the long term. Employees tend to leave at a faster than normal rate than normal since they are not being well managed. Ultimately, the business has severely handicapped itself.
To address this problem of the 90's and beyond, a training program is being developed to train managers of high technology companies. Teaching the basics and how to apply them in today's working environment will be the format.
The target audiences for the training program are newly promoted or hired managers for a high technology start up company, Liberate Technologies. The main goal is to acquaint new managers with Liberate procedures and policies. Managerial consistency throughout the company is the secondary goal of the training program.
To gain the support of the company, the training program must make sure to highlight the major issues that a new manager is likely to experience. This includes the standard issues of managing people and learning the unique ropes of the company itself.
Research material was gather that pertained to basic management skills that all managers should revisit from time to time. Brushing up on basic skills such as mentoring, communication, and conflict management keeps the manager focus on consistency. The basics are successfully. They are time tested and they work. The other material sought for this project specially addresses the unique issues that exist for high technology and the current worker. Needs and values of the current worker are not all the same as the traditional 9-5 office worker of the past. The skill set is far more advance and the temperament more aggressive and self-confident. In many ways, the more technically skilled the worker is, the more of a management challenge that person can be. Not all of the old ways will work if administer in the traditional fashion. It's a brave new world, managers.
In the course of project management, research helps to prepare a manager for success. With the proper research, a project manager can double-check that all the areas of importance have been addressed. Such is the case now. Below, the reader will know the results of this project manager's research findings.
Most of the resources point out the need to properly train people that are given a management position. If this is the person's first time managing, it is imperative to set the up for success by training them.
Marquardt and Belker discuss a very common situation for most companies, managers being given a position before they are prepared for a specific job they are not prepared for it. To fill management roles quickly, technically skilled employees that shine in their craft get "rewarded" with promotions to management. The new manager show finds out that his lack of experience to manage a team, as opposed to strengths in self-directed technical work begins to show. Since high tech companies move quickly, there is not time for him to recover. The strong asset of the company ends up leaving. This results in a "sink or swim" environment. Not surprisingly, the few swimming lessons people had under their belt, the sooner they are to terminate their management role, voluntarily or not.
Candidates for managerial positions come from two sources, experienced and not experienced managers. When the candidate has been a manager before, they have a high chance of succeeding in the new position in the long run. The biggest road blocks for these candidates is the mixing of their personality and methods with those of their new direct reports, co-workers, and executive managers. They also need to become aware of the existing company processes that they are walking into. Having never been a manager before, people that lack the understanding, knowledge, or command of basic management skills will have an even harder time of making it their new position. As Belker correctly points out, few new managers understand the demands of having to be able to address the needs of multi-level organizational reports and providing team results as opposed to individual contributions from the rank and file (Belker 4). Managers are judged on the team's results, not just the manager's performance. This is a new concept for many inexperienced managers.
An interesting pre-managerial type program that was discussed by Marquardt and Belker had people that wished to looking into the roles and responsibilities of a management position. It is a "try it and see if you like it" program. As a rule, about 20 percent of the people that try the program decide management is not for them, at least at that time. This pro-active program helps to weed out candidates that had a high chance of not succeeding as a manager, thus, saving time and resources for the individual and the company. For the individual, they have also had the chance to better understand the position of their own manager in a new light and gain an insight on what skills they themselves need to improve on in order to become a viable managerial candidate (Marquardt 204). This is a "win-win" situation.
The last decade has brought a new type of business - the "dot-com start up". These high technology companies are brought to life so quickly that those running the business usually have a lot of technical skills, but very little managing experience. As Marquardt points out, in the long-term, this behavior not only creates an environment that can lead to poor work flow and a higher turnout rate in staff, it also leaves the company more vulnerable to legal action should the manager not take proper steps to issues.
Most authors agree that in order to get the most bang for the buck, training effectiveness needs to be measured. Studies done on training programs shows that most skills are not practiced. As time goes on, the training is forgotten and not utilized. The best plan is to ensure the training was adequate is to measure the training skills before and after the program to evaluation training effectiveness. A follow up on the practicing of the skills will help indicate if another training program of some type is needed. Lack of measurement can ultimately kill any benefit of the training. Money, time, and human resources will have been wasted (Zenger 23). Zenger feels that the return on investment is the fundamental problem with training programs, not the lack of executive support.
According to Zenger, the way to hedge the return
on investment is to be clear in the business purpose and desired outcomes
for any training programs. Leadership development needs to be in step with
the company organization and its mission. Senior management must actively
support the program or it will fail.
There are some basic management skills that a manager needs to survive. The development of these skills will help a skilled manager succeed and grow in their position.
Some common sense advice from Gurley Brown reminds managers that the basics do work. Doing the "ghastly" things first will allow enough time to get them done. Then the easier tasks falls into place. Admitting when you are wrong will bolster credibility and trust. Reply to others promptly, no matter who they are.
In today's litigious society, managers needs to always keep the potential legal risks in mind as their daily activities. Sack offers guidelines in a number of managerial duties where a manager could put himself and the company at risk of legal reprisal "from hiring to firing," the life cycle of an employee.
CommunicationCommunication comes in three basic forms: written, verbal, and non-verbal (or body language). Each form, whether individually or in combination, delivers a message. The message can be facts, instructions, ideas, goals, impressions, or visions. What ever the message is, effective use of these forms is the cornerstone of any business (Nelson 169).
Both formal and information methods of communicating heavily impact on the relationship of a worker and his manager. This is also a two-way effort. People give and receive information as they interact with others on a daily basis.
Bennis attempts to describe the differences between leadership and management. Management is efficiency, systems, policies, structure. IT is about how. Copying. Leadership is about effectiveness, trust, people. It is about what and why. Innovating and initiating. "Leaders have the capacity to create a compelling vision. They inspire and empower others. They pull, rather than push" (Bennis 100).
Being a leader does not require becoming a manager. Leadership is in everyone to different degrees. Honing the skills to effectively inspire others requires continuous practice.
Leadership by example means just that. By showing the team that the manager does not ask more of the team than they do of themselves, the team see that their manager is not one of those that does not do any "real work".
Good executives should be able to do some things as well as or better than the team. They should be able to handle what the team can not or should not be doing (Gurley Brown 181). The employees need to concentrate on what they do well and complete their tasks. The manager should be the thread that holds all the pieces together.
Any start up company demands a lot of its resources. Human resources are not exception. Due to the fast and furious pace of high technology companies, finding and retaining human resources with the necessary skills and availability is a tremendous chore. Adopting a company environment Offering solutions to home needs at the office, such as child-care facilities, dry cleaning services, and free food, creates an environment where employees feel valued and supported by their companies. The company gets more dedicated workers that statistical spend more time on work projects. Additional benefits can include flexible working hours and telecommuting. Over time, companies that made work/life balance a priority found that they "attracted and retained high-quality employees, decreased absenteeism, and enhance productivity" (Sladek).
In Gurley Brown's experience, it pays to be flexible with employees and their outside responsibilities. Adding more, unnecessary stress to a troubled worker can create an untenable workplace and result in workers leaving. Good employees tend to the get the work done, even in light of their own distractions.
Hiring
One the most important keys to creating and retaining a winning team is start of by hiring the right people, according to Stein. Investing in the hiring process will pay off in lower staff turnover rates. Picking the right people to begin with reduces wasted time in retraining new employees. People that are already in line with the company culture and goals tend to contribute to reaching those goals quickly and effectively.
Interviewing
Stein reminds managers how important it is to be careful about the hiring processing. Job requirements must be clear and reasonable for the position waiting to be filled. The interviewing process and candidate selection must be within legal guidelines to avoid any form of illegal discrimination. Some forms of discrimination to be aware of are against age, gender, race, and disabled people.
During the interview process, the interview should be trained on the differences between the types of questions that are appropriate or not. An example of an inappropriate questions that Sack provides "what country are you from", "are you impaired", "what is your maiden name?" All of these questions might be ones that come up in daily conversations, but can be grounds for a lawsuit if asked in an interview.
Termination
Not all employment situations work our for either parties. On occasion, an employee leaves the company. This can be in one of two ways. Employees that quit their positions voluntarily are less stressful situations. The change in position if made by the one more directly effected, so the transition is smoother than an involuntarily one. Involuntary terminations are usually the company's decisions to let an individual go. This is commonly a stressful experience for bother manager and employee.
Voluntary/QuittingWhen an employee quits, there is usually little risk to the employer. An exception might be if the employee felt force to terminate their employment due to circumstances such as feeling threatened, harassed, or other legally protected discrimination.
Involuntary/Firing or Death
In the event that things deteriorate and an employee has to be laid off or fired, certain processes must be done to help ensure the rights of both parties are being respected. Getting fired is not easy for either party, but with a skilled manager, the level of volatility can be lessen.
If there is a lay off, be aware that there are laws that exist in how much notice and compensation workers are entitled to. To violate such laws, risk legal action from the workers or the government.
It is never an easy job to fire an employee, logistically, emotionally, or legally. If the termination is based on a performance issue, many companies now have a corrective action plan to help correct performance issues before the drastic measure of termination is explored. Be aware that even an "at will" employment policy does not release the company from possible unlawful termination repercussions. On these matters, Sack is clear.
Team MaintenanceRetentionKeeping top employees has been harder than ever in age of high technology companies. Talented people that can help a company to blaze trails in new and uncharted industries are rare. Competitive rates and employment situations make it harder to keep talent, once they have been acquired.
According to Stein, retaining employees for other top companies has been a combination of flexible working conditions to traditional financial rewards. Providing a supportive environment and inspiring loyalty are imperative.
Motivation
Two forms of motivation can be use: positive or negative. Reward good behavior, as opposed to punishing bad behavior. For a while now, the there has been a strong trend toward the former, as studies show that it gets the best long-term benefits. Nelson reminds us to beware of how rewards are given out. "Equal treatment of unequal performers can be unfair" (Nelson 97). In the same vein, the same motivations for different people does not always work.
Creating a supportive environment where employees fill safe to openly communicate, where trust and respect are fosters, will contribute to a healthy working environment where people will feel valued and inspired to improve their situation and, in turn, that of the company.
Another pitfall to beware are too many rewards or ones that are not in line with the company goals, states Nelson. People can see false praise or not value it if it is given too freely. The purpose of the employees is to further the company to reach its goals. Rewards should be awarded when efforts get those goals closer to being realized.
Mentoring
People can be told what to do, but for employees to grow, they need to learn. Coaching or mentoring employees is one the most important responsibilities that a manager has. Nelson points out that if managers can effectively coach employees, the time it would have taken them to figure it out on their own is not wasted. Effective coaches are supportive, emphasize team success over individual success, assess talents and shortfalls of team members, inspire team members, create environments that allow individuals to be successful, and provide feedback.
Discipline
Employee performance and attitude can be unacceptable at time. If gone unchecked, the behavior can infect the entire team and other departments. Correction of such behavior must be immediate, clear, and appropriate. Discipline can be verbal or in written form. Nelson suggests that a manager must be consistent and fair in their disciplinary actions. To do otherwise, sends a mixed signal to the employee and the team.
It is important to remember that a manager is responsible not only for the development of the team, but also for himself. As Belker concludes, the manager's capacity to manage well is determined by his ability to manage himself. To apply that idea, the more effective a manager can be with his own tasks, the more success he will be able to lead a team effectively. If the manager can organize his own tasks and responsibilities, he can organize a project.
All employees can benefit from mentor. This includes managers. Continue encouragement from more experiences coaches will contribute to a manager's growth in their knowledge and experience. A healthier and more productive team manager can only better the situation of the team he leads.
With preceding research, the project manager now has the ability to design how an effective training program. Much of the sought after contained the desired material contained the management techniques and information. Information on dealing specifically with high technology company issues was insufficient.
Discovering the value of training programs and being able to convey that to the company makes the project that much more marketable to the intended audience. Seeing that desired results may be hard to obtain, but can be accomplished in other such programs is a great motivation to see the project to completion. This is a worthwhile endeavor.
Knowing that basic management skills never go out of style, is something that all managers should be periodically reminded of.
The challenge of managers to just keep their heads above water when it comes to developing their teams allows them to also forget to keep themselves growing and learning. However, this is a vital contributor to the continued success of a manager. Personal development is just as important as nurturing an effective work team.
It is not surprising that more could not be found on the realities and challenges of operating and managing a high technology company. The industry is new and proving that the old ways will not work in all situations. Hopefully, more sources of information will appear as the industry learns what works in today's environment and what does not.
All of the sources that were researched held information that the project will benefit from. In turn, a company that used the project's training program will benefit from the exercise of supporting and training their managers. It is not too late to remind older managers of the basic skills that have worked over the course of many years. For the new managers, the support and mentoring of the company will breed self-confidence, knowledge, and ultimately, a successful organization.
In the end, the research screams out a clear testimonial. Management training programs can fail, pass, or excel. It is a matter of support from others and the desire for continuous improvement.
Belker, L. B. (1997). The first-time manager. New York: American Management Association.
Bennis, W. & Goldsmith, J. (1997). Learning to lead: A workbook on becoming a leader. Reading, Massachusetts: Perseus Books.
Creelman, D. (1996). New hope for management training? [Online]. Available: http://www.hr.com/HRcom/index.cfm/WeeklyMag/82AB1A9F-E254-11D4-9AB7009027E0248F
Gurney Brown, H. (1996, October 28). Conducting training needs assessment. Fortune [Online], 134(8) 179-187 Available: http://library.northernlight.com/SG19990714100006774.html?cb=13&sc=0#doc
Marquardt, F. (2000, November 13). Training the young and the restless. The Industry Standard. 202-206. [Online] Available: http://www.thestandard.com/article/display/0,1151,19881,00.html
Nelson, B. & Economy, P. (1996). Managing for dummies. Foster City, California: IDG Books Worldwide, Inc.
Sack, S. M. (1995). From hire to fire: The legal survival guide for employers in the 90's. New York: Legal Strategies, Inc.
Sladek, C. M. & Jones M. B. (1994, Jan/Feb). Developing a work/life strategy. Journal of Compensation & Benefits [Online], 9(4) 46-49 Available: http://www.hr.com/Hrcom/index.cfm/79/D103BD16-2C21-11D4-8DE7009027E0248F
Stein, N. (2000, May 29). Winning the war to keep top talent. Fortune [Online], 141(11) 132-143 Available: http://library.northernlight.com/LH20000518050000553.html?cb=13&sc=0#doc
Zenger, J. & Ulrich, D. & Smallwood, N. (2000, March). The new leadership development. Training and Development 22-27.