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Friday, December 17, 2010

The Manager’s Key in Managing Contemporary Organizations

Management characterizes the process of leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible). One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan, and as the actions taken to reach one's intended goal. This applies even in situations where planning does not take place. From this perspective, there are five management functions: planning, organizing, leading, coordinating and controlling. (Wikipedia)

An account manager play a pivotal role on the organization’s entire hierarchy thru financial aspects since he is responsible for achieving sales target and implementing strategies to increase the company's sales revenue and market share. He actively sells the products and services to clients in the corporate sectors and proactively develops vivid IT&T solutions to cope with clients' needs. Furthermore, he maintains a close and good relationship with them by providing excellent customer service. In order to perform his duties and responsibilities well, an account manager should have the knowledge, skills, passion and the right attitude towards work and clients.

A best performing strategic account manager is characterized by a desire to step up and take charge. He does not sit back and wait for someone else to give the orders or set the plans for goal accomplishment. He champions his own area and follows through on the tasks and responsibilities he had taken on. Top account manager do not hesitate to push his own ideas or direction. A strong results orientation and an emphasis on accomplishing the goals that were set forth are evident in a top manager. He exercise personal control over the planning and action steps and respond favorably to constructive criticism that will help them to increase their effectiveness in the future. He also values the success he can achieve in his professional lives and will set his careers as a top priority. (Chally, 1996)

A good account manager works at keeping his technical competencies up-to-date. He is not reliant upon others' expertise in unfamiliar areas, but invests the time and effort to ask questions, learn about changes in the market or industry, and gather the information critical to keeping on top of his job. He is not only committed to stay informed and expert on product applications and sales but also he is skilled at passing relevant information to others in training or coaching role. Sharing advice and information is not merely a discipline for top performing account manager. He gain personal satisfaction from the opportunity to help others, and consequently, will go out of his way to help or advise others. He wants to see others benefit from the learning, and will adopt a very patient and encouraging approach. (Chally, 1996)

Account managing in a contemporary organization is such a complicated and a difficult task considering such given functions. In addition, the internal and external environment of a contemporary organization is prone to turbulence and to a gradual and immediate change.

In these times of dramatic and rapid change, it is imperative that the leaders have a clear vision for the organization that takes into account the many factors that can influence its success. The bottom line is that organizations are dynamic, evolving systems. They change over time based on what happens to them, within them, and around them.

Many changes in organizations are based on communication developments. The most prevalent of which, currently, is the expanding nature of electronic communication media. The use of electronic communications leads to changes in other areas. Manager and employee relationships rely on organizational structure, type of technology, group work and task, and employee empowerment and organizational attitude.

Change is inherent in contemporary organizational experience, and its management is not only critical to organizational success and survival but is also at the crux of the field of organization development. Knowledge of the fundamental aspects of change is defined in terms of a person's understanding of individual responses to change and the general nature of change. Knowledge of the change process is determined by a person's understanding of three key processes: planning change, managing change (both the "people" side and the "organization" side) and evaluating change. It should be noted that each dimension builds on those below it; in other words, knowledge of the fundamental aspects of change is critical to the process of planning, managing and evaluating change. (Rockford Consulting Group, 1999)

Because the environment as well as the organizations is constantly changing, success is now determined by how well the changes are implemented and whether the desired gains can be achieved. This success is a direct result of knowing how to identify obstacles, assess resistance, plan for action, build commitment, and rapidly make adjustments. The skills for managing change are essential components in the organization’s survival kit that an account manager should possess.

Here are the elements an account manager should have to successfully manage the change process particularly on his department unit.

Strong Leadership

He drives the change process, leading the department and the organization to greater heights. There is no substitute for a strong leader. He set the direction and priorities.

Consensus At The Top

He agrees wholeheartedly on the need for dramatic change, and all work together in defining the vision and the resources required for success. Teammanship is real, not feigned. Contributions are sincere, not politicized.

A Shared Vision

A well articulated vision of where the company will be in three to five years, expressed in specific performance outcomes, cascades throughout the company.

The Right Attitude

Hidden personal agendas in top and middle management are cast aside to make room for a major collective effort. The theme is "get on board, or get out of the way." Those who block the effort are quickly disposed.

Commitment to See It Through

Plans do not get derailed at the signs of resistance or difficulty. Solutions to problems are found and implemented. If something doesn't work, something else is tried.

A Comprehensive and Systematic Approach

A comprehensive master plan is created that addresses key integrated leverage areas: culture, reward systems, strategy, process, structure, and staffing/skills. All leverage areas are linked and the plan is structured in manageable phases. The process is continuous.

Lots of Guts

A willingness to take risks and attack sacred cows to achieve substantial results is prevalent. The focus is longer term, replacing the monthly P&L as the driver for everyday operations. Problems are anticipated and directly addressed.

Standards

Standard 1: Management accountants develop information that will be used to signal the need for change and that organization planners can use to evaluate alternative change proposals. This information has two important characteristics. First, the information should reflect the organization’s strategy and its major operating objectives. Second, the information should be developed and presented in a way that planners deem credible.

Standard 2: By implementing performance measurement, incentive compensation, and other management accounting systems, management accountants are agents of change in organizations. Management accountants should realize that all organizational changes must be justified in terms of how they help the organization, or improve the organization’s ability, to achieve its objectives.

Organization’s Culture and the Need for Change

Harvey & Brown (1996) define an organization’s culture as “a system of shared values and beliefs which interact with an organization’s people, structure, and systems to produce behavioral norms (the way things are done around here)”. Many factors constantly interact and shape the organization’s culture, such as the management, what technology is used, the organization’s size and structure, and of course the workforce itself. The external environment, including the national culture, regional society and family, also plays an important part in shaping values, needs, attitudes and beliefs that are brought into the organization by its members (Gettler, 1999). Hence the very definition of organizational culture implies that it suffers an ongoing process of change, as the society and the external environment is continuously changing and transforming, and all theses are intertwined. But organizations may also feel a need to change or ‘modify’ the culture on purpose to adapt to these changes. It has been argued that organizational change is natural and inevitable, and that no matter what type of change is experienced, it can affects the organization’s culture. (KCG, 1999)

Changing people: Changing the culture

Commitment, cooperation, information and time are crucial ingredients for the process of cultural change to become a success. Clearly it is possible to ‘manage’ the culture by changing people’s behavior and attitudes, but again, it is important to realize that success in one change process does not guarantee success in another. Each change situation needs its agents, its carefully planned processes, involvement, cooperation, time, contents, and a bit of luck to succeed. Some organizational cultures may also need longer time to successfully change - if they do change at all. (Rance, 1998)

One last important thing to point out is that as the society changes and evolves, so does the concept of organizational culture and what this stands for today may be close to irrelevant in next century’s organizations. Barrett’s (1999) belief is that people will be seeking to work in organizations that allow them to become all they want to be - to fulfill their potential. Handy (1991) argues that in the future “we don’t have hands anymore, just brains”, also referring to the development of a highly technical, professional and educated workforce that will transform the present notions of organizational culture and change.

Concluding remarks

As the organization change, its culture is affected. This may require changing employees’ attitudes and behavior so that they fit into the change process. Successful contemporary change programs show that this is possible to do, but also that it is important to account for a good balance between employees’ and the organization’s needs and goals. Finally, the organization must realize that it exists in a society of continuous, rapid change, and that its workforce, internal culture, and structure may in a near future differ much from what it is today. It must constantly stay alert. That is, if the water gets too overheated, it must jump out of the bowl - not allow it to be lulled to sleep.

References

Certified Management Accountants of Canada. Available at [www.cma- canada.org]. Accessed [05/09/06].

Gamble, P. R. & Gibson, D. A., (1999). “Executive values and decision making: The relationship of culture and information flows”, Journal of Management Studies, Vol. No.2.

Harris L. C. & Ogbonna, E., (1998). “Employee Responses to Culture Change Efforts”, Human Resource Management Journal, Vol.8 No.3

Harris L. C. & Ogbonna, E., (1999). “Developing a Market Oriented Culture”, Journal of Management Studies, Vol.36, No.2.

Harvey, D. F. & Brown, D. R., (1996). An Experimental Approach to Organization Development, Prentice-Hall Int., USA.

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