Managers: the guiding hands in an organization Essay

Lee Iacocca–President of Chrysler Corporation–and Mr. Green–whoowns a corner candy store–have at least one thing in common. Both aremanagers. So are Raymond donovan, the Secretary of the U.S.

Departmentof Labor; Judy Martin, local branch manager for a supermarket chain; JoeBettencourt, the comptroller of a construction company; Mary Ashe,manager of a private tennis club; and over 9 million other Americanworkers. Put all together, they’re quite a mixed bag. And, giventhe definition of the term manager, they’d have to be.

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Accordingto the Standard Occupational classification Manual, managers plan,organize, direct, and control the major functions of an organization.Wide as that definition is, however, it does exclude some people who areoccasionally referred to as managers. For example, supervisors ofclerical and blue-collar workers are excluded because they rarely setgoals for the organization. Professional or technical personnel–suchas accountants, engineers, and lawyers–are also excluded because mostof their time is not spent on management.

This article points out some of the differences among managers inlevel of responsibility, employment and utilization of managers byindustry, and educational attainment and earnings. Who’s a Manager? * Vice president in charge of international operations, * supervisor of data processing, * treasurer, * hospital administrator, * school principal, * postmaster. These are some of the job titles used for managers. (Lots more arelisted in the accompanying box, “The Many Titles ofManagers.”) The titles are numerous because they can reflect eitherthe specific responsibility of a position or the industry in which themanagers work. The nature of a manager’s duties vary widely becausemanagement includes many different functions, such as designing theproduct that an organization will offer, manufacturing it, and marketingit. Financial control–that is, keeping track of the organization’sincome and expenses–is another important management function.

Butperhaps the most basic management function concerns personnel, for thedifference between a manager and a self-employed entrepreneur with noemployees is that the manager works through other people to reach agoal. Managers, therefore, must be skilled at working with others. In a small owner-operated firm with few employees, all managementfunctions may be exercised by one individual–the owner. But, as thesize and complexity of an organization’s operations increase, sodoes the management hierarchy. Numerous functions–accounting or legalservices, for example–that may be contracted for in small firms areoften performed internally by large corporations. Giant corporations,such as those found in the automobile and oil industries, containseveral layers of management, which are generally grouped in threelevels–supervisory, middle, and top. An example of such a hierarchyencompassing selected managerial functions accompanies this article. Supervisory or junior managers plan, schedule, and supervise theday-to-day work of employees.

For example, a junior manager in adepartment store might supervise several sales clerks, keep records ofinventory and sales, and be responsible for insuring that adequatesupplies of merchandise are on hand. In a ceramics factory, a juniormanager might be responsible for seeing that machinery is properlymaintained, that the raw materials are available, and that productionschedules are met. In a government or business office, junior managersmight oversee and review the work of professionals. Junior managersmust be familiar with their firm’s products or services, thoroughlyunderstand work procedures, and have strong interpersonal skills.Besides supervisory responsibilities, they may spend part of their timeon other work. They are found in every sort of organization directingevery kind of activity, such as accounting, data processing, inspection,maintenance, marketing, personnel, research, sales, security, andshipping. Mid-level managers, as their title indicates, hold intermediary positions between supervisory and top management. Their specific dutiesand job titles depend largely on the way the particular organizationthey work for is set up, but they would always be in charge of severaljunior managers.

In a very large corporation manufacturing manyproducts, a mid-level manager might be responsible for a separatedivision that makes only a few of these products. In a corporation thathas a single purpose, such as a supermarket chain, a mid-level managermight be responsible for all the stores in a region. Or the corporationmight be organized according to activities such as personnel, sales,service, and production. Top-level managers include members of the board of directors, thechief executive officer–who may be the president or the boardchairman–and the vice presidents for major administrative units, suchas marketing or financial operations. These executives establish theobjectives of the organization and chart its future course. They mustanalyze and evaluate large amounts of information to gauge the possibleimpact on their organization of economic, political, and social trends,technological change, and competition.

They also coordinate theactivities of various administrative units within their organizationsand maintain lines of communication with middle managers. Working Conditions Like their duties and job titles, the working conditions ofmanagers vary widely depending upon their position, their employer, andtheir industry. In a large corporation, a top-level manager might havea lavish office and a private secretary, whereas a production linemanager might have a simple office and use a secretarial pool.

Mostwork a standard 8-hour day and 5-day week, but many do not. Some, likethose in newspaper publishing, regularly work the night shift. Others,like hospital administrators, are on call 24 hours a day to deal withemergencies. And almost all managers are expected to work overtime whennecessary. Other working conditions also differ greatly from job tojob. For example, managers in the construction industry work outdoors alot, while those responsible for a large region travel a great deal. The pace of work also varies.

In the radio and televisionbroadcasting industry, managers are subject to constant deadlines. Forhotel managers, checkout time can be particularly hectic. In retailtrade establishments, seasonal changes in activity are pronounced. Inthe drug manufacturing industry, research projects may be long term,scheduled for completion months or even years in the future. Naturally, the degree to which managers work with other people alsodepends on their particular job. Some, like those in restaurants,automotive service departments, and social service agencies, are inconstant contact with the public.

Managers associated with research anddevelopment activities, on the other hand, may rarely deal with peopleoutside their office. Earnings and Other Benefits Managers tend to earn more than workers in other occupations. (Seetable 1.) About 7 percent earned at least $52,000 in 1982; only 1percent of the workers in all occupations earned this much. Median earnings of experienced managers were $22,600 a year in1982, 40 percent higher than the $16,100 figure for all occupationscombined.

The median varied considerably from occupation to occupation,ranging from less than $15,000 for restaurant, cafeteria, and barmanagers to more than $28,000 for nonretail sales managers. Variationby industry was even greater, ranging from $17,000 for retail trade to$34,500 in chemical manufacturing. As is the case in most fields, largeemployers in major metropolitan areas tend to pay higher salaries thansmall employers in rural areas. Most salaried managers in the private sector receive additionalcompensation in the form of bonuses, stock awards, and cash-equivalentfringe benefits such as company-paid insurance premiums and use ofcompany cars. Limited available information indicates that thisadditional compensation may, on average, range from 5 to 10 percent ofsalaries. Top-level managers are among the most highly paid workers in thecountry. Recent surveys of top corporations revealed that in 1982, over500 executives had compensation (salary plus bonus equal to about 20percent of salary) of at least $500,000.

These earnings excluded bothfringe benefits and long-term income such as stock options, which couldadd 30 percent or more to the manager’s total compensation. Othersurveys of executive salaries reveal the importance of the size of thecorporation. A top-level manager in a very large corporation can earnten times as much as a counterpart in a small firm. Employment Describing a manager’s duties is difficult, in part becausethe occupation is so large. Managers held about 9.4 million jobs in1982, about 80 percent of which were salaried positions.

(See table 2.)In most industries, the percentage of managers is roughly the same as itis in the economy as a whole, about 9 percent. Finance, insurance, andreal estate, however, has a relatively high proportion of managers (17percent); and agriculture, forestry, and fisheries has a relatively lowone (2 percent). The largest groups of industries–wholesale and retail trade,services, and manufacturing–are also large employers of salariedmanagers; each has at least 1 million. Just 30 detailed industries outof 378 employ 100,000 or more, accounting for about 80 percent of allsalaried managers.

The employment levels and selected job titles uniqueto these industries are shown in the accompanying box, “The ManyTitles of Managers.” Self-employment is much higher among managers than otheroccupations. Nearly 1.8 million managers (19 percent) areself-employed. This proportion is more than twice the rate for alloccupations combined. Many self-employed managers work in retailtrade–an industry characterized by a large number of relatively smallestablishments.

Outlook Between 1982 and 1995, 2.7 million managerial jobs will be added tothe 9.4 million already found in the economy, according to theBureau’s projections. The employment of salaried managers isprojected to increase faster than the average for all occupationsthrough the mid-1990’s as business operations become more complex.The number of self-employed managers, on the other hand, is projected todecrease slightly–from 1.

8 to 1.6 million–as large enterprises andchain operations increasingly dominate business activity. The projected change in employment varies greatly among managerialoccupations, as shown by table 2. The employment of health services administrators outside hospitalsis expected to increase much faster than average as the health industryexpands and health services management becomes more complex.Particularly strong demand will arise from the growth in healthmaintenance organizations, group medical practices, and other healthcare facilities such as emergency centers, surgicenters, andrehabilitation centers for patients not requiring the full spectrum ofmedical services. In addition, there will be great pressure to expandskilled nursing and personal care facilities to accommodate the largeincrease in the number of senior citizens. Many managerial occupations are projected to grow faster thanaverage. Among them are bank officers and managers, automotive servicedepartment managers, automotive parts department managers, hospitaladministrators, retail trade sales managers, and store managers.

Thegrowth in the number of bank officers will occur as banks expand theirservices. Automotive service managers and automotive parts departmentmanagers will increase to keep pace with the servicing and maintenancerequirements of the growing stock of motor vehicles. Growth in thenumber of hospital administrators will result from the need to providemedical care to a growing and aging population. Retail trade and storemanagers are expected to increase in number because of the growingnumber of chain operations. Two occupations projected to grow as fast as average are hotelmanager and restaurant, cafe, and bar manager.

They will grow becausepopulation growth, higher incomes, more leisure time, and an increasedproportion of working women all add to the number of people dining out and vacationing. Wholesaler is another occupation expected to growabout as fast as the average. A few managerial occupations are expected to increase very slowlyor even decline between 1982 and 1995. For example, the employment ofelementary and secondary school administrators–which is highlydependent on the level of enrollments–is projected to increase moreslowly than average.

Although the present decline in the school-agepopulation will be reversed in the next few years, enrollments will onlybe modestly above their 1982 levels by 1995. The employment ofpostmasters and mail superintendents is expected to decline as postalsupervisors assume some of their duties. Captains of water vessels areprojected to grow more slowly than average; chief executives, generaladministrators, and legislators are projected to change little; andfuneral directors are projected to decline in number. Besides those in the above occupations, many managers are in anot-elsewhere-classified group.

In all probability, the employment ofthese managers will change along with the employment of the industriesin which they work. Industries are generally divided between theservice-producing and the goods-producing. The service-producingindustries employ more people and are projected to grow slightly fasterbetween 1982 and 1995. Services–including business, health, andeducational services, among others–will account for about one-third ofall employment growth over that period. Finance, insurance, and realestate are also projected to grow faster than average. Among the othercomponents of the service-producing sector, trade and transportation,communications, and public utilities are projected to experience averagegrowth, while government is expected to grow more slowly than average. The goods-producing industries include farming, mining,construction, and manufacturing.

The construction industry’srebound from its 1981-82 recession level is expected to be at a muchfaster than average rate. In addition, building construction andprojects are becoming more complex; consequently, more management willbe needed to hold down costs and maintain efficiency. The manufacturingsector is projected to experience average growth as it recovers from therecession.

Farming is projected to decline, while mining is projectedto grow more slowly than average. How Do You Become a Manager? Management is not usually an entry-level function. Some peopleenter management training programs after completing college, but mostpeople who become managers start their careers in other occupations.School administrators often begin as teachers, treasurers begin asaccountants, and store managers start out as sales workers. To be considered for management positions, workers must first provethemselves, showing that they can do their own work. In evaluatingcandidates, superiors look for determination, confidence,innovativeness, high motivation, and managerial attributes, such as theability to make sound decisions, to organize and coordinate workefficiently, and to establish good personal relations with otherworkers. Potential junior managers may be given occasional supervisoryassignments and, shortly before or after assuming full-time supervisoryduties, may participate in management seminars and trainingcourses–offered by industry and management associations, consultingfirms, and institutions of higher education–lasting from 1 day toseveral months. Training may also include rotational assignments toother administrative units, plants, or overseas posts; service on boardsand committees; and serving as assistants to higher level managers.

A college education has become increasingly important in managementjobs. The proportion of managers with 4 or more years of collegetripled–from 12 to 36 percent–between 1950 and 1982, as it did for thelabor force as a whole. Managers have more schooling–14.

2 median yearscompleted in 1982–than all occupations combined–12.7 years. However,there is considerable variation among managers in specific occupations,as shown in table 3. The median ranges from 12.7 years for buildingmanagers and superintendents to 18.2 years for elementary and secondaryschool administrators. On average, self-employed managers–many of whomwork in small retail trade establishments–have relatively little formaleducation; more than 60 percent have only a high school education orless. In highly technical activities such as engineering, dataprocessing, and complex manufacturing operations, a graduate degree inbusiness management can enhance one’s chances for promotion totop-level management positions.

Graduates with a master’s degreein business administration from a prestigious school can often enter awide range of industries and many, especially those with previousmanagerial experience, move up the management hierarchy soon afteremployment in their new position. Continuing formal education is also important. Industry sourcesindicate that many top-level managers complete academic refresher or”catch-up” programs, about 1 year long, at least two or threetimes during their management careers. For More Information General information about managerial functions, training programs,and career development is available from: American Management Associations Management Information Services (for high school students) or Society for the Advancement of Management(for college students and graduates) 135 West 50th Street New York, N.Y.10021. National Management Association 2210 Arbor Blvd.

Dayton, Ohio 45439. Specific information may be obtained from the nationalorganizations listed under a number of headings–administration,administrators, directors, executives, management, managers,superintendents, and supervisors–in various encyclopedias ordirectories of associations, available in public libraries. For information on educational institutions offering aspecialization in business and management, consult directories ofinstitutions of higher learning, available in public libraries. Consult the Dictionary of Occupational Titles, Fourth Edition, 1977(U.S. Department of Labor, Employment and Training Administration), fora detailed description of various managerial jobs. Consult a number ofheadings–administrator, director, executive, manager, superintendent,and supervisor.

A copy of this publication should be available in mostpublic libraries.

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