Defining management: roles, functions & managerial styles

What is management in business?

Management: a definition

Usually, when someone says management, the image that immediately springs to mind is a middle-aged person in a business suit, overseeing a bustling open space office. However, being a manager goes far beyond the stereotype and management is not all about the manager figure.

It encompasses a set of principles relating to the functions of planning, organizing, directing, and controlling, but more on this later. Managing is also applying these principles in order to efficiently and effectively allocate and harness available company resources, which will help achieve organizational goals and objectives: 

• human resources ;
• financial resources ;
• physical resources (production machines, technologies, vehicles, source material, etc.)  
• informational resources (patents, leads, data, market analysis, KPI, survey results, etc.)
  

At its core, managing is making decisions that drive the success of an organization. It’s about leading teams, optimizing processes, and ensuring everything runs smoothly. Without effective management, many resources will be spent to no avail which poses a threat to any company, be it on a short term or on a long term.

The core functions of management

As there are three cornerstones upon which management is built, one might argue that it is a triangle or a prism. Geometry aside, the bottomline is that management is a 3 in 1 job, as the manager (or sometimes the CEO if there is no manager, like in small business) has three functions to perform.

In what follows, we present them as successive steps, because management is often described as a process. However, management also involves flexibility, so a manager might : 

• have to go back to a previous function because they need to make adjustments (e.g : reallocating more people to a task force) ;
• perform two functions at the same time as they are managing different teams on distinct projects.
  

Planning

This initial step in the management process involves setting objectives and determining the best course of action to achieve them. As a manager, you need to : 

• anticipate future conditions, 
• identify trends and uncertainties, 
• decide on strategies to meet the company’s long-term goals.
  

When you plan, you make sure you and your team are prepared for any event and can work towards common objectives in a structured manner.

Organizing

This is the step where you bridge theory to practice, where you set the parameters for future effective implementation of the plan you designed previously.

In management, organizing consists in arranging resources and tasks in a structure that maximizes efficiency : 

• you define roles and responsibilities for every team member ;  
• you make sure every resource is spent where it should. 
  

The end goal of this second step is to allow you to delegate tasks appropriately and tell your team members how they will contribute to the overall goals.

Directing/Monitoring 

This is the most famous part of the job. Perhaps because this is a continuous effort whereas planning and organizing are done periodically.

This third part of the manager’s job is to provide guidance and oversight to your team. You’lle have to lead, inspire and motivate your employees/team members, but obviously, if you want to be able to guide them and help them improve, you’ll also have to monitor their performance. Remember that this leadership component of management should not be about you, but rather about how your team (yourself included) can do better.

The different management styles

If you want to be able to develop your own approach as well as your agility as a manager, you need to know about your options.In other terms, the management styles out there. Each style has its benefits and drawbacks, and the effectiveness of a style often depends on the context and the individuals involved.

Authoritarian management

Authoritarian management is characterized by a hands-on philosophy. The manager controls almost everything up to the tiniest details. They decide alone, and expect team members to follow orders without question.

One might think this is a disastrous approach. However, it does have its merits. Indeed,this style can be effective in situations where quick decisions are needed or in environments where strict adherence to procedures is critical, such as construction, manufacturing, engineering, aviation, etc. Authoritarian management also shines in these industries since it provides clear goal-setting and direction. 
 

However, this management style can also lead to low employee morale and it hinders creativity and innovation, as employees have little to no input in the decision-making process.

Participatory management

At the other end of the spectrum, you find participatory management, also known as democratic management. In this approach, you include employees in the decision-making process. As a ‘democratic’ manager, you seek input from your team members and consider their opinions before making a final decision.

This style can lead to higher job satisfaction and a more motivated workforce by encouraging employee engagement as well as creativity and innovation. On the downside, participatory management is quite time-consuming and may lead to conflicts if not handled well. So with this one style even more than with the others, you need to be properly trained in conflict management.

Let It Happen management

This one is also known as laissez-faire management. This management style grants employees a high degree of autonomy. As the manager, you provide minimal direction and allow your team to make decisions and solve problems on their own.

On the plus side, this style promotes innovation and independence and just like in the democratic approach, you set yourself up for high job satisfaction among employees. However, this method may also result in a lack of direction and coordination, and can lead to inconsistent performance if employees are not self-motivated and lack the necessary skills to manage their tasks effectively.

You’ll want to use this style only with teams where everyone is very used to working with everyone else and are very competent at their respective tasks.

Transformational management

Transformational management focuses on inspiring and motivating employees to achieve their highest potential. This is the most efficient style if you are thinking long-term.

Indeed, as a transformational manager, you work toward a vision and encourage your team to embrace change and innovation. This style is particularly effective in dynamic industries where adaptability and forward-thinking are crucial. High levels of employee engagement and motivation are common benefits, along with promoting continuous improvement and innovation.

For all its strengths, transformational management can prove challenging to implement and it does require a high level of emotional intelligence and communication skills to be effective. Luckily enough, these can be trained and also happen to be our area of expertise at CoachYZ !

Transactional management

Transactional management is based on a system of rewards. As a manager, you establish clear goals and expectations and reward employees who meet them (with bonuses for instance). Some managers might also include disciplinary action for employees who don’t meet the objectives but this is ill-advised in most cases because failure does not equate to laziness and incompetence can be reversed. To put it simply, the carrot works but not the stick. Not on a long term anyway. Management is about building something and not metaphorically beating down people.

Transactional management provides a clear structure and can be effective in achieving short-term objectives and maintaining productivity.

However, rewards may not foster long-term loyalty or motivation and can lead to a rigid and inflexible work environment, as it focuses more on compliance than on innovation or personal growth. Besides, in the long run, once the novelty wears off, rewards lose a lot of their motivating properties.

Situational management

This stands aside from the others. Situational management, as its name suggests, consists in adapting your management style to the specific circumstances and the needs of your team.

You assess the situation and choose the most appropriate management style based on the context. Thanks to its flexibility this is an effective and responsive management style. On paper, this looks like the ideal one…

…And it is! However high-end solutions come to a high-end price: situational management requires a high level of skill and awareness and is very difficult to implement consistently.

Servant leadership

Servant leadership is a management style where the manager gives their team members everything they need, sometimes to the point they look more like an assistant than anything else.

As a servant leader, your primary goal is to support your team and help them grow. Here, the focus is on the well-being and development of employees, in order to foster a culture of trust, empathy, and collaboration.

High levels of employee satisfaction and loyalty are common benefits, along with encouraging personal and professional growth. On the flip side, it can be challenging to balance service with authority, and this style may not be effective in all organizational cultures.

Charismatic management

Charismatic management relies on the personal charm and inspirational qualities of the manager. As a charismatic manager, you use your personality to influence and motivate your team.

Charisma can be highly effective when you reach for: 

• strong team cohesion ; 
• collective enthusiasm ;
• high levels of team motivation ; 
• exceptional performances.
  

However, it may lead to dependency on the manager and can be unsustainable if not backed by strong systems and processes, as the team’s success heavily relies on the manager’s presence and influence.

Roles & skills of the manager

Now we are about to review the roles and skills of the manager. While skills are self-explanatory, roles might easily be confused with functions, which we already tackled.

Let’s disambiguate the terms from the get-go : 

• management functions (planning, organizing, monitoring) are process-oriented in other words, how the manager interacts with the tasks at hand ;
• roles are to be understood as how the manager interacts with people.

What is the role of the manager?

Interpersonal

Regardless of organizational levels of management, the manager interacts with employees and other stakeholders (executives from top-level management, other middle-management employees, etc.)

As a manager, you serve at the same time as a figurehead, a leader, and a liaison agent. And because you want to foster a positive work environment and facilitate collaboration, you’ll need to develop and train effective communication and relationship-building skills.

Informational 

There is also an informational dimension to the manager job. Remember, you are supposed to “ensure that everything runs smoothly”. This is why as a manager, you spend a lot of time gathering, processing, and disseminating information. You act as a monitor, seeking out relevant information, and as a disseminator, sharing this information with your team. Additionally, you function as a spokesperson, representing your team or organization to external parties.

Decision-making

Managing a team is a bit like working on your entrepreneurship project, on a smaller scale : you identify opportunities for improvement and innovation and make decisions accordingly. You also act as a disturbance handler, addressing and resolving conflicts, and, as we already saw, a resource allocator, deciding how to distribute resources effectively.

Essential skill sets for a manager

As skills are tightly linked to roles and functions, we already mentioned or outright explained most of the essential skill sets a manager will need to possess, but we believe that making a recap list might be helpful.

Leadership 

Effective leadership is about inspiring and guiding your team towards achieving company goals. Granted, leaders are not necessarily managers, but managers do have to lead, from time to time. Good leaders possess the ability to motivate and influence others, fostering a sense of purpose and commitment. Developing strong leadership skills is essential for driving performance and maintaining a positive work environment.

Communication

Effective communication is critical for conveying information, expectations, and feedback. As a manager, you need to be able to listen actively, articulate your ideas clearly, and facilitate open dialogue. Good communication skills help to build trust, prevent misunderstandings, and promote collaboration. There are many excellent and useful communication techniques, we are about to gloss over emotional intelligence and conflict resolution but you may also want to learn about SBI feedback.

Emotional intelligence

Understanding and managing your own emotions, as well as those of others, is key to effective leadership and management. Emotional intelligence or EQ is a set of 4 skills which help you to build strong relationships, handle stress, and navigate the complexities of the workplace.

Conflict resolution

As a manager, you will inevitably encounter conflicts within your team. Being able to address and resolve these conflicts constructively is essential for maintaining a positive and productive work environment. 

Time management

Time management is how you balance the various functions and roles of your job :  

• prioritizing tasks ; 
• setting realistic deadlines ; 
• delegating responsibilities. 

When you are capable of managing your time, you make sure you can meet your objectives and maintain a healthy work-life balance.

Strategic thinking 

Developing a long-term vision and strategy for your team or organization is yet another crucial aspect of management. This set of skills involves: 

• analyzing trends ; 
• anticipating future challenges ; 
• making decisions that align with the company’s goals and objectives. 

The idea is to remove hurdles before they even appear on your road so that you can position your team for success.

Adaptability 

We already discussed this one at length: being adaptable means being open to new ideas, willing to change your approach, and able to pivot quickly in response to new challenges or opportunities.

Continuous professional development

Everyone knows this: in today’s business world, everything moves fast. Hence the need for adaptability that we just mentioned. But being flexible is not just a matter of goodwill. You also need to continuously hone your skills and learn new ones, if you want to be able to take on new challenges, that is.

In this continuous effort:

• stay informed about industry trends ; 
• always be on the lookout for training opportunities ;
• be open to constructive criticism.

To sum it up, a manager is a jack-of-all-trades. They are in most cases the leader, though there are some degrees in that regard: from the servant leader to the authoritarian manager. In any case, the manager has to be capable of multiple things : setting goals, organizing, planning, assessing, guiding, monitoring, settling conflicts, making adjustments, facilitating communication inside the team, speaking for the team externally, etc.

Yet, management skills and processes can all be trained and also improved. If transformational is interesting, it is because it can be applied to anyone among the organization. At CoachYZ, we believe that every leader, every manager has an untapped potential which can be revealed and harnessed. So, if you want to be the best version of yourself too, embark on your coaching journey with us!