Company success dependency on management.

Vanova, Jaromira ; Babelova, Zdenka Gyurak ; Holkova, Andrea 等

1. INTRODUCTION

Background, in which companies occur and perform, is raising its dynamics. This aspect brings along new demands on management powers. Intensity and heterogeneousness of these demands and mainly managing with these demands requires new approach in thinking, proceeding and acting of managers. These aspects affect management and managers of all companies. These aspects are also reason, why is necessary to concern of consequent questions: What do we expect from present-day managers? How they have to be prepared for their function in united Europe? The questions of key manager competencies have considerable importance for the success of their acts and functions.

2. MANAGER, HIS COMPETENCIES AND PERCEPTION OF EMPLOYEES

As resulted of our previous research project VEGA 1/2586/05 realized in 2005-2007 "Exploitation of personnel indicators at human resources management in business practice in connection with SR entry to the EU", successful company performance at the market is influenced by potential of all company employees and managers as well as their development. "Manager is leader, responsible for achieving the goals of organizational units (units, collectives) in charge of manager. He generally considerable participates in generating this goals and providing the terms of its performance. The manager mostly plan, organize and control work of his work fellows. (Vodacek & Vodackova, 2006)

"Competencies of managers are complex skills and other assumptions (mostly motivation) to perform manager duty." (Kubes, 2004)

"Nowadays, concept of competency is in use in several basic meanings. The first one is competency as an authority, permission, generally given by some authority or appertaining some authority (institution or individuality). The second meaning of competency emphasizes the ability to perform some function, to be possible to perform this function, to be qualified in concerned area. Competency--to be able to do something, ability, to dispose with relevant knowledge and skill." (Kubes, 2004) Caganova, Simurdova use the definition of competency as a combination of knowledge, skills, attitudes and values that enable a person to act. Key competences are in their perception needed by all individuals not only for personal satisfaction and development but also for social integration and employment. (Caganova & Simurdova, 2008)

Follow on these definitions, we understand manager competency as manager permission to perform the function as result of his position in company organizational structure on one hand, and also we understand manager competency as manager ability to perform expected duty and outputs. Manager competencies include basically way of thinking, reactions, acting and behaving in major situations. Managers are expected to dispose with enhanced competencies compared to the basic competencies of employees. Manager competencies have to be enhanced with professional, individual, social, moral and ethics competencies. We realized that managers are perceived by employees not only as an authority, but also as a model for attitude and behavior as a result of investigation (carried out by Jaromira Vanova, as part of PhD. thesis, in 2007-2008, 124 respondents took part in this investigation). Partial results from this investigation are figured in fig. 1.

Employees indicated mainly nice organizational clime and cooperation, next to the financial assessment during investigation which motivation factors are important to them. Organizational clime, which had high rating compared to other motivation factors, is mostly influenced by company management. The organizational clime was highly appreciated by employees and managers, too. The question is, if management is able to early identify and solve problems of organizational clime.

Observing processes of human resource management shows, that managers acting is not only determined by their characteristic, but also condition factors and previous reactions of employees.

Managers with their acting, depending up actual conditions, affect reaction of employees. These employees, afterwards, modify the conditions for management and managers acting by their own reaction.

As a result from integration of forms of human resource management, employees proceeding and factors affecting this forms includes, that as is management effectiveness influenced by this factors, the management affects these factors as well. When mutual affecting efficient management and factors of influence is important to develop manager skills, to realize self-examination and condition diagnostic and manage employees on this base.

Further personable qualities, which mostly enhance manager competencies, are featuring in this coherency:

* manager have to be knowledgeable of his own influence on employees,

* manager have to be able to communicate with his work fellows,

* manager have to understand himself, his work fellows, their positions, causality relation and effect of individual motivation and performance as well as group dynamics a behaviour of the group.

The way which managers act and manage their employees has major effect on employees performance effectiveness and so on effectiveness of whole company.

3. COMPANY MANAGEMENT ISSUES

Statistics data shows, that 87 % of small and medium size companies finish with business in first year of its existence. The issues, which companies have to face, are mostly intensive international competition, big tax burden, foreign markets entry barriers, insufficient, let us say absent preparation for European Union integration and at last but not least insufficient qualification of employees and managers. Management mistakes are possible reasons for failure causes, also, mostly in small and medium size companies. (Paulova, 2009)

When analyzing company management, focused on company management in Slovak companies, we discovered following issues, which can eventuate to company failure:

* company strategy management inadequacies during establishing company own identity,

* absence of accurate formulation of human resource management content and methods,

* there is unemployable organizational structure of human resource management and development department,

* deficiency of professionally and personally qualified employees,

* employers participation and management activity in the area of education which is absolutely inadequate to actual demands,

* underestimated importance of managers education as well as their practical experiences and skills, inadequate keeping up further education and skills development,

* preceding of others, for example political criteria, instead of professional criteria during top managers selection,

* ineffective communication between employees and managers,

* barriers of building-up mutual reliance between employees and managers, similarly as barriers of building-up mutual reliance between company and its bossiness partners,

* lack of consideration is oriented on corporate social responsibility.

Hereinbefore mentioned issues are purpose, why there is no ideal solution, which allow relieving shortages in company human resource management. Starting points for solving these situations can be:

* full-strength orientation on person as individuality, on his needs, not only on his existence needs, but also on his social needs (for example social status ambitions, self-realization related with perspective and further education necessity on one hand,

* monitoring and in case of neediness following actual trends in human resource management in the company.

Human resource management processes can not only be businesslike to flexibly re-act to changing condition but also better reflect company specifications when respecting these two aspects. (Blaskova, 2003)

Looking at human resource management in management theory continually developed. That is reason why forms of managing people can be regarded from different points of view:

* Theory based on managers characteristics--authors makes effort to single out effective managers by their specific physical, psychical and personal characteristics identification,

* Theory based on managers behaviour--these approaches endeavour to identify, if is manager mostly oriented on tasks or people, orientation of manager on tasks or people specifies leadership style of manager in long term consideration,

* Situational Leadership--studies suggesting that management success is dependent on mutual relation between leadership style and situation,

* New Leadership--unlike classic "rational" management theories this approach accentuate emotional and irrational site of human resource management (transaction management and transformation management).

4. CONCLUSION

Manager is focused on employees occupying positions in the company when managing human resources. Leadership involves affecting follow workers, to influence and to inspire them to achieving set goals of organization units and whole organization.

Globalization encourages changes in managers thinking and acting. Values, practise an expectations of managers and employees play a key role in this process. The acting is affected and formed by culture from this point of view. For managers, it is important to identify proceeding of employees, to accept this proceeding and understand their background values. then we can consider manager as leader with intercultural competencies.

This article is a part of research Vega 1/0156/08 "Key manager competencies in the range of specific functional management areas and their applicable development concepts". The results from this research will be used for a methodology design and formulation recommendations for key management competencies identification, measuring and development.

5. REFERENCES

Blaskova, M. (2003). Riadenie a rozvoj ludskeho potencialu. Uplatnovanie motivacneho akcentu v procese prace s ludmi (Human potential management and development). EDIS--ZU, ISBN 80-8070-034-6, Zilina.

Caganova, D. & Simurdova, L. (2008). Communication in mother tongue and foreign langue as a part of lifelong learning. In: Vedecke prace MtF STU v Bratislave so sidlom v Trnave.--ISSN 1336-1589. ,N. 24,p. 15-22

Kubes, M.; Spillerova, R. & Kurnicky, R. (2004). Manazerske kompetencie (Manager competencies). Grada Publishing, ISBN 80-247-0698-9, Havlickuv Brod.

Vodacek, L. & Vodackova, O. (2006). Moderni management v teorii a praxi. Modern management in theory and practice. Management Press, p. 295, ISBN 80-7261-143-7, Praha.

Paulova, I. (2009). Vybrane metody systemoveho pristupu hodnotenia ucinnosti a vykonnosti manazerstva kvality a komplexneho manazerstva kvality (Selected methods of quality management and complex quality management effectiveness and performance valuation),. AlumniPress, 97 s. IS978-80-8096-086-5, Trnava. Available from: http://www.mtf.stuba.sk, Accessed on: 2009-03-25

Fig. 1. Employees perception of managers

Do you regard managers in your organization not only as authority
but as model for attitude and acting, also (in %)?

 Small Middle Big In
 companies size companies total

Yes 12 16 20 17
Predominantly yes 57 50 45 49
Predominantly no 4 8 7 6
No 12 8 8 9
Can not qualify 15 18 20 19

Note: Table made from bar graph.