The Roles of the General Manager - Case Study Example

 Introduction: Strategic management is leveraging company resources through strategic planning and implementation to gain a sustained competitive advantage. The first step in setting up a Strategic Management is stating the company’s goals lucidly in the mission statement. The mission statement is condensed version of company’s objectives and all planning, allocation and implementation of resources have to take place in its light. Further to that it also illustrated the company’s existential importance in the wider socio-economic and cultural context. Strategic management takes account of the strengths and weaknesses of the organizations and prepares itself best in competitive arena by minimizing weaknesses and maximizing strengths. The human resource of the company is structured and inspired to achieve the objectives of the company. The role of the General Manager is that of a leader of human resources who guides and allocates the usage of other resources. Thus the role of the General Manager assumes critical importance in implementing the company’s objectives across various functional departments, and integrating the workforce to achieve the stated goals of the company by reining wayward behaviour and ‘self-direction’ to ‘shared beliefs’. This is achieved through development of communication channels, smooth flow of information across company’s structures, conflict resolution, and provision of creative latitude and development of a sound organizational culture. The General Manager keeps the Board and the CEO informed about the progress and performance of the company. He/she is the vital link in vertical and horizontal communication amongst company’s stakeholders. Due to its strategic importance, sometimes the job of General Manager becomes extremely stressful. We will study the role of the General Manager in the five fold tasks: 1. To develop a Mission Statement. 2. To translate the mission into measurable objectives. 3. To craft a strategy to achieve desired results. 4. To implement the strategy. 5. To evaluating performance and initiating corrective adjustments. We will evaluate a sample mission statement before analyzing the Mission Statement of Children Books Ireland. A Sample Mission Statement: We are dedicated to development of innovative Information Technology solutions. Our products meet the customer expectations and provide quality products that give maximum value for money. We are committed to create ever higher levels of customer satisfaction in order to have a sustained competitive advantage in the market. We achieve this by putting in our best efforts in a creative environment; where our work is a pleasurable activity that gives us a tremendous sense of fulfilment. We are a well-knitted team of exemplary and dignified individuals. Our strategic aims are focused on: Meeting ever higher levels of customer satisfaction: The road to perfection is an unending journey. Our customers seek better and better and products. We focus on innovation and quality to dynamically meet our customer needs so that they are with us always as partners in our mutual growth. Work in a creative environment. If necessity drives invention, creativity inspires innovation. The environment we work in gives us creative freedom of work and expression thus allowing us to explore the expanding frontiers of Information technology. Emerge as exemplary and dignified individuals: We are known in the world, by the company we work in. We are respected in society by the work we do. We can’t compromise on the brand value and social responsibility of our organization. Analysis of the Mission statement of the Children’s Books Ireland. Mission Statement of CBI Children's Books Ireland (CBI) is dedicated to ensuring that books are at the centre of young people's lives. We resource and support those who bring children and books together. Through leadership, innovation, advocacy and celebration, we create awareness of the value and importance of books for young people. Understanding the Mission Statement of CBI Children’s Book Ireland is the national organization of Ireland engaged in promotion culture for book reading amongst the children of Ireland. The mission statement embodies the keeps objective of the organization to ‘make young minds veer towards books’ central to its content and intent. Further to that the statement also incorporates governmental role of supporting those who promote books amongst children. The statement also emphasizes that they support and patronize those individuals and bodies who help to bring together ‘books and children.’ This again is a reiteration of wider socio-cultural responsibility of the organization. The mission statement then lists the methods its employs for promotion of books that include “leadership, innovation, advocacy and celebration.” These four are the ideals on which CBI bases its working. It leads, innovates, propagates and celebrates the spread of love of books amongst children. Explanation of General Manager’s Duties and Responsibilities: 1. Mission Statement: Mission statement has become an ‘a priori’ condition in the contemporary business environment. They are made to state the vision, objectives, and goals of the management. The mission statement is declaration of the goals and objectives, and visions in simplest possible terms. It is the reason for a company existence (Hill and Jones); summative declaration of an organization’s ideals (Morreale et.al). Mission statement, if studied carefully, reveals strategic aims of an organization, eloquently strewn so they that can be understood all. Besides, incorporating company’s objectives and goals it also takes into account marco-enviormental factors like social, and economic factors in which a company operates and, possibly try, to define geo-political reach of the organization too. For example, in the case of Children Books Ireland, since the organization is a dedicated public body for promotion of Books, the statement is unequivocal in the stating the fact that it operates for promotion of books amongst Irish children. Statement of the mission of an organization is followed by strategic planning. Strategic planning also addresses such issues as social responsibilities, ethical dilemmas besides growth and profitability of the organization. Social and psychological factors have gained currency ever since the employees came to be considered as the ‘human capital’ of the industry. In the past, the management kept their business objectives protected in their files, while issuing top downwards commands that entertained no ‘ifs’ and ‘buts’, but sought compliance. The era is, now in the academic management parlance, known as Taylorism or Fordism. However, as psychological and sociological issues gained importance in the business world, the human capital came to be considered as an ‘intelligent’ and ‘thinking’ resource. . 2. To translate the mission into measurable objectives Understood practically it means, breaking up company’s mission into measurable, and tangible and achievable events, setting targets, identifying team talent, and curtailment of politics. To actually develop team spirit, reach the ideals, attain objectives, of a company is like making your way up a hill. There are directions, guidelines, financial figures, economic resource planning, quality standards, technical specifications, management controls, competition analysis, capacity analysis, market facts, and resource optimization issue that have to be made cognizable and useful. It is to provide right information at the right place. This in fact, is the General Manager’s task. Complex details are made comprehensible through use of statistical means like bars, flow- charts, and graphs. Comparative analysis with competitors and past performances also help to identify lacunae and grey areas in the company. This follows stock taking of resources and making allocations and requisitions. Information of product and services are shared with all levels of employees. The General Manager also specifies the quality and technical standards to be achieved and, tolerances allowed. Human resources in different sections and divisions are given a fair idea of duties and responsibilities of other sections. For specialist jobs, training needs are identified, and training schedules are created. 3. To craft a strategy to achieve desired results. The crafting of strategy begins by visualizing by brainstorming, team making, delegation, empowerment, fixing targets and setting an appraisal, reward, and motivational programmers. Crafting a strategy involves a thorough analysis of 4Ms-Money, Material, Machinery and Men, the four pillars of strategic management. SWOT analysis is done to identify Strengths, Weaknesses, Opportunities and Threat. Since Opportunities and Threats are generally extraneous factors, they are the domain of the General Manager and the Board. The General Manager can have his/her say on issue in Board meetings. The Internal Analysis involves identifying the Strengths and Weaknesses of the company. The General Manager identifies Strengths and Weaknesses with the help and staff and brings them in notice of the management. The stage also involves describing the type of competitive advantage the company wishes to attain. Distinctive competencies of the company are identified to build the theoretical model for sustained competitive strategy. Inventory levels are defined. Supply chains are made to run trials, to identify bottlenecks. Strategic planning for economic and efficient usage of resources is carried out. NASA (n.d) describes strategic planning as strategic and tactical decision making, resource allocation, and capital investment(Chapter 1, para 1.2) In the context of industry, all the tactical decision making, resource allocation and capital investment fall in the domain of General Manager’s responsibilities. In case of trans-national strategies all relevant laws are studied to find and weed out infringement of public policy. A micro-logistical plan is created and role of Information Technology is fixed and IT tools requisitioned. Risks are identified and risk detection and mitigation policy is created. It also needs conceptualization of strategic control systems. A feedback loop originating at every department and ending at GM’s office is made pictorially. At the department level it connects individuals with the head in a two way process. The staff is urged to follow the pictorial routing of feedback and communication. Cost centers are identified and their budgetary provisions are asked for. The General Manager takes all financial details into account and discusses the financial viability with the management by getting inputs from the employees. Here the General Manager’s role becomes all the more critical because; he/she is the interface between the technical and financial layers of the company. General Manager alone can understand and interpret the needs, terminology and limits of one layer and convey it to the other. 4. To implement the strategy Implementation of strategy by far is the toughest component of General Manager’s job for it is the most definitive statement on his/her leadership skills. It involves skilful handling, coordination with different heads and hierarchical level, and development channels. In the implementation stage strategies often involve improvisation because of unplanned emergent situation leading to emergent strategies (Jones and Hill). No matter how ideal a strategy may seem in paper and ink, it does undergo transformation at implementation stage. People are allocated duties according to their past performance, emotional intelligence, and experience. The organizational structure and functioning is made flexible enough to adapt to change. Company is a like a living organism. Agile and spot decision-making is to be encouraged lest organizational inertia and lethargic attitude come to weigh down its growth. The General Manager has to have a dynamic interface with the departmental heads. It is to set in motion all the conceptualizations made in earlier stages. The policy should not be rigidly forced, as was done in earlier company management structures. Team members are encouraged to have a cross functional dialogue. An occasional drill in fire-fighting (emergency) eventualities, risk detection and response are carried out to check their effectiveness. Whistle-blowing is encouraged and privacy of whistle-blower ensured. Motivational camps, recreation needs, stress management and work life equilibrium is ensured amongst the employees. It has been factually proved that higher the satisfaction levels of the employee, the better are the performance. Concepts like Total Quality Management, Lean Manufacturing and Six-sigma improvement plans are often integrated into Strategic Management stage-wise, and gradually made to cover the entire spectrum of activities. Mission statement is pasted at all vantage positions of the workplace and office wherefrom it can be easily read, discussed and remembered. A status report filing to departmental heads and status reports from the departmental heads to the General Manager keeps him/her in know of exact status in the organization. Constant feedback and two way communication help in implementation of strategies. 5. Evaluating Performance & Initiating Corrective Adjustments. This stage assumes importance as the General Manager is charged with the responsibility of a sustained competitive advantage. Strategic controls like statistical process control methods, quality control methods are used to evaluate performance. In case of deviation from stated strategic decisions corrective action is initiated. Performance metrics, self-appraisals, peer reviews, quality circles, and group thinking results are analyzed and corrective adjustments made to plug in gaps between expectations and performance. One of the most valid methods of performance evaluation in business is customer survey. In business to business models continuous feedback should be elicited about product or service quality. Reporting of points of failure is encouraged. Quality assurance methods ensure systems to control performance metrics. Case studies from history of the company and competitors should be discussed. Conclusion: Strategic management is an emerging concept. Young in years, it asks the human beings to rely on their natural sense of judgment and instincts to make informed decisions. Growth in today’s cut throat competitive environment is possible not only with the efficient use of a company’s capacities and resources but in their strategic use: “To strike when the iron is hot”. A missed opportunity or a failed procedure is equally detrimental as a bad decision can erode competitive advantage and wash it off the corporate map forever. Contemporary times are replete with instances where even the strongest companies could not withstand the market backlash. Hence companies should always be strategically poised to make maximum use of an opportunity with a dynamic monitoring of its strengths and weaknesses. But it is to be noted that modern day companies are not inorganic conglomerates of men, machines, material and money but living organisms. The organization of today can be best described in the metaphor of living organism that is able to maximize value creation through astute use of knowledge and resources (Girstlova, 2007). They are alive because their vital functions are intact and functioning well. Strategic management is the vital life force that runs through the organization. A General Manager is the heart and brains that pumps the vital force. References: Hill, Charles, W.L., Jones Gareth R. (2005) Strategic management, an integrated approach. Childrensbooksireland.com, “Children’s Books Ireland Website” Accessed Feb 19, 2008, http://www.childrensbooksireland.com/component/option,com_news_portal/Itemid,240/ Morreale, Sherwyn P., Clowers, M., Jones, Angela Arseneau, Vogi, Mathew., Cascio, Harlan, (n.d) Mission Statements For Communication Department Programs: Definition, Criteria, National Communication Association (US) Examples Accessed Feb19, 2008, http://www.natcom.org/nca/files/ccLibraryFiles/FILENAME/000000000082/Mission%20Statements%20Guidelines.pdf Hq.nasa.gov. “The National Aeronautics and Space Administration Website” Strategic Management System, Accessed February 19, 2008 http://www.hq.nasa.gov/office/codez/plans/Handbook00/chap1.html Businessplans.org, Mission Statement, “Center for Business Planning Website” Accessed Feb 19, 2008 Girstova, Olga, (2007), Company as living organism—Competitive Advantage (Abstract), 13th Conference on Professional Information Resources, http://www.inforum.cz/archiv/inforum2007/en/proceedings/155/ Michael E. Porter (1985) Competitive Advantage, Assureconsulting.com, Accessed Feb 19, 2007. http://www.assureconsulting.com/books/competitive.php Read More