May 27, 2008
Everyone has the opportunity to act in a management capacity in some aspect or event in life. You may be in the role of a manager or supervisor at work. You might manage the activities in your household, in your community, or temporarily manage activities at an event. What is your management style? What would it be if you could choose? What if the people reporting to you could choose for you?
The following are some common management styles. See if you can find characteristics of yourself, or your management, in one or more of the following categories.
1. Delegation
Delegation is often considered a necessary trait of management. It is the ability to assign responsibilities and tasks to a direct report. This implies that the individual on the receiving end of the delegation has the capability and the authority to complete the assigned task effectively. Delegation is a means to share the burden, get more done, and can be an educational process. This is effective provided the recipient of the delegation is supported and receives recognition for accomplishing the assigned goal.
If the recipient of the delegation does not receive the corresponding recognition, then it is not delegation, it is obligation.
2. Obligation
Management by obligation is the theory that assuming higher levels of authority is equivalent to obtaining greater proximity to status as deity. By separating authority from responsibility, the manager is able to easily gather personal accolades for achievement and can just as easily assign blame to others for failure. A trait of management by obligation is a lack of communication between management and direct reports. An unfortunate side effect of treating direct reports as if they are obligated to produce and have no other alternatives is that the people begin to believe it. As a result, performance steadily declines to mediocrity, “just doing what needs to be done, enough to get by’”.
3. Procrastination
As this style implies, it is to put off work and decisions indefinitely. As a management style this allows unresolved issues time to get worse. This style allows competitors time to catch-up, surpass or get a bigger advantage. Taking too long to make a decision can cause disarray, as people begin to make independent and unguided decisions for individual activities. We will get back to procrastination later.
4. Constipation
Just as dangerous as procrastination, a constipated management style is best described as what happens when stuff get backed up. Sometimes there are decisions and clear directives that are issued at an executive level, a clear course for the organization and essential goals for success. When constipation occurs, these directives, goals and instructions never make it through management. Sometimes there is a hidden layer of management that acts like a Bermuda Triangle of information, the communication goes in but never comes out. Like procrastination, people are left to make independent decisions that may or may not be aligned with the overall objectives of the group. The only relief for constipation is communication. Otherwise you are doomed to perspiration.
5. Perspiration
This style is the mad rush to accomplish everything individually. This is only associated with a management style because even people in management positions sometimes fall prey to this habit. It is the unfortunate belief that the only way to get something done right is to do it yourself. While this may be true in isolated cases, it should not be the standard practice. It is essential to the health and growth of any organization to teach and share skills, knowledge and information. Anyone that takes isolated responsibility for conducting tasks is limited the throughput of the organization to their individual capacity. The way to break out of this habit is to delegate, share, teach and educate.
6. Desperation
Quite often this style of management is either the result of poor planning, improper forecast, or lack of intestinal fortitude. Desperation is most frequently exhibited in management related to sales, and may result in a panicked pricing response to market conditions or inappropriate berating of sales associates. In some organizations desperation is continually perpetuated, even during profitable and successful periods, for the purpose of motivating employees. Like a great march across the desert, the most dedicated personnel will endeavor to persevere through hardship. However, the danger of perpetual desperation is that the most talented individuals will eventually pack up their knowledge and experience to take it to a more promising environment. If desperation and obligation proliferate in an organization, it is not loyalty but rather lack of ambition or marketable talent that remains. These are not qualities that can sustain an organization.
7. What in ‘tarnation?
This is the management style that results when the human capital is diluted of experienced and knowledgeable employees. This may occur after a large restructuring, known to the unemployed as a “lay off”, or through attrition resulting from desperation. If management is accustomed to having activities carried out, but is disconnected from the people who actually do the work, then the infrastructure can be subject to collapse when key personnel are removed. While this does not mean that the business will fail, it does mean that certain aspects of the business may stagnate. The repercussions may take months or years to redesign and rebuild. Sometimes the new design and new processes are better, sometimes not. It is a gamble, and the only way to improve your odds is to remove the mystery by getting close to the action and the people who make the magic happen. Cross-train, communicate and understand your business.
8. Education
One of the most powerful and progressive styles of management is based on the recognition that we never stop learning. Supporting education can come in many styles and methods. Some managers use formal training seminars. Some managers effectively use cross-training or encourage documentation and Intranets to perpetuate internal knowledge. For some trades, education can be enhanced with school or activities with associations. A basic and effective method of combining education and communication is by direct training and cooperative support between the manager and the individual. This can be accomplished by conducting projects or tasks together, discussing the goals and defining conclusions through the process.
9. Communication
An essential requirement for effective management, communication is a two way street. It includes passing along communications from executive objectives, share holders, or company directives. It is the dissemination of the strategic goals for the group, and explanations of assignments for delegation. Productive communication is also based on active listening techniques, recognizing the importance of the feedback and insight from the employees and customers. A successful manager knows that wisdom and understanding are gained by listening, not by speaking. Share direction, strategy, goals and experience, but listen for feedback, insight, effectiveness and status.
10. Liberation
If the environment and situation support this style, give people the freedom to manage their own performance and activities. Nobody is closer to the job at hand than the one who is doing it. Trust that the individual is the master of the task. Give support if it is called for, but otherwise allow the person the flexibility to experiment with improvements and processes. In this style, the manager is like the conductor of an orchestra. Each person contributes to the performance, the leader keeps entire group aligned in timing and melody. There are periods for each person or instrument to be highlighted, and periods for each to support and compliment the others. When conducted properly, the result is a magnificent symphony performance.
11. Motivation
Do you know what is most important to each person under your care and guidance? If the answer is ‘yes’, then you are a motivator. If you hesitate, then it is time to sit down with each person for an open and honest conversation. We all work for our own reasons. Some people desire promotion, some expect to be rewarded with pay, and others are happy with the current situation. Some people are working for their next job, others are just happy to live near work, and a few thrive on personal recognition. There is no right or wrong reason for motivation. The desire to satisfy other people is no nobler than the desire for a bigger paycheck. What does matter is that you know what is important to each individual and have a plan to help them achieve personal goals. Please also keep in mind that personal goals change, so it is necessary to keep this open dialogue.
12. Inspiration
Thomas Edison said that invention is 1% inspiration and 99% perspiration. Keep in mind that he was talking about inventions, and management is about people. Inspiration in management is not the spark of a new idea, but rather it is the ability to inspire others. In a leadership capacity you must inspire not only the people who report to you, but it is also necessary to inspire the people to whom you report. Inspiration begins with learning to develop and exhibiting your characteristics that inspire others. Examples of character traits that inspire are consistency, reliability, honesty, integrity, strength and compassion. Regardless of your lasting or temporary leadership role, you have the ability to inspire others with your own activity. How you use this opportunity is up to you.
13. Direction
This trait is the ability to properly define goals. Goals and objective set the direction, communication makes is clear, and proper motivation will get everyone there together. It is important to note that goals are something to be obtained, not avoided. That very statement may seem self-evident, but it is often misunderstood. For example, achieving a milestone, a metric, a quota, a number or a destination are goals to be obtained. Hannibal, the great general of Carthage, marched men and elephants thousands of miles over the French Alps in winter on his quest from Spain to Rome. Rome was the goal for Hannibal, and his army was focused on obtaining victory. On the other hand, avoiding defeat or deficit is not an objective. Avoiding failure is a stalling tactic that may ultimately fail. You must aggressively seek to succeed, and the threat of failure will be a concern for your competitors. What are your clearly defined and measured objectives, and what is your path to achieve them?
We are all on a voyage of self-discovery and learning. By reviewing these methods of management, hopefully you have discovered some perspective about your method or your situation. If there is opportunity to improve, you are the better person for initiating it. If you are already maximizing your personal performance, then your organization is that much the better for it.
John Mehrmann is President of Executive Blueprints Inc., an organization devoted to improving business practices and developing human capital. http://www.ExecutiveBlueprints.com provides resource materials for trainers, sample Case Studies, educational articles and references to local affiliates for consulting and executive coaching.
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One of the best roads to wealth is investing in the stock market. I’ve invested in stocks for over twenty years. During that time I’ve made a lot of money and I’ve also lost money as well, but I have learned many valuable lessons along the way.
Many people don’t invest in stocks because they consider them too risky. Achieving success of any kind involves risk. Starting your own business or investing in real estate is risky if you don’t know what you’re doing.
Most people today take the safe and secure road of putting their money into savings accounts or bonds. If that sounds like you, you’re missing a golden opportunity to have more money tomorrow than you have today.
There are no pat rules or formulas to guide you when choosing stocks. Bells won’t ring when you pick the right stock, and you will never be certain that a well-researched pick will pay off. You will have to work hard to find opportunities missed by the masses of people.
Still, there is a lot you can do to increase your chances of making a good pick. Before you invest in any stock, you should invest in what you understand, do your homework, and take advantage of the knowledge you have about particular companies or industries. Most of all you need to be patient.
It’s important to research the companies you believe have potential. Research is often best done in person. For example, if you’re interested in Walgreen Company, a nationwide drugstore chain, you would want to visit several stores. Look around at the products they carry and the service they provide.
The same would hold true if you were interested in buying stock in Dave & Busters, a nationwide restaurant chain. Visit one in your area and have dinner. Then go to another city and visit another Dave & Busters and have dinner as well. Take notice of everything, not just the how the meal is, but also how the service is and how it operates.
This sort of in-person, fundamental research is easy for anyone to do, you don’t need special credentials to see how fast a store is ringing up sales or whether it’s offering something new in the way of products or services. When you visit, ask an important question, “Which of your competitors do you respect the most?” Often the endorsement of a rival will lead you to purchase their stock which could turn out to be a top performer.
You don’t have to meet with company heads to get the inside scoop on an industry. If you’re in the industry already, you have a catbird’s seat. That includes producers, suppliers, wholesalers, retailers, and anyone else connected.
For example, those in the oil industry, like oil refiners, tanker salesmen, gas station owners, or equipment suppliers, can see changes coming and take advantage of them. They also know what moves the industry and what factors are the most important to watch.
Likewise, you may be in a position to take advantage of changes (like a shift in demand or a new technology) that no one else knows about, especially an investment broker.
Once you’ve chosen stocks you think are worthy of buying or keeping, it’ll be all you can do to stick with them if there’s bad news all around you. One of the basic rules of success for investing in stocks is: Never get scared out of owning them. Never sell stocks because so-called experts in the media say that the sky is falling. You should only sell if the company’s fundamentals are deteriorating.
Whenever you begin to worry about your investments in the stock market because of “big picture” concerns such as wars or deficits, it pays to consider the Even Bigger Picture.
The Even Bigger Picture shows that over the last eighty years, stocks have provided their owners with an average return of 11 percent a year. Despite the wars, the recessions, the bear markets, the crashes, and anything else that might predict the end of the world, owning stocks has been twice as rewarding as savings accounts and owning bonds.
If you’re serious about making money in the stock market, you must expect drops in the market. When you favorite stocks go down with all the others that is the time to buy more shares, and look for bargains.
How many stocks should you buy? The best answer to this question is to buy a manageable number of stocks that you can get involved with. Over time you’ll learn something about the industry and your company’s place in it. For example, you learn what happens to your stocks in a recession and what factors affect its earnings. When the market retreats, you will find bargains and you can add some great socks to your portfolio.
Once you have knowledge and experience you can comfortably follow eight to twelve stocks, but it’s perfectly reasonable and profitable to have as few as five in your portfolio. Besides, not all of your stocks have to have to be great performers. If just one of your stocks performs at a high level and the others go nowhere, you will have tripled your money.
Here are some important points that will help become a better investor:
• The market, over the past few decades has been dominated by the masses. This makes it easier for you, the individual. You can make the best investments by ignoring the masses.
• In the short term, there may be no correlation between the success of a company and the price of its stock. In the long term however, there is a 100 percent correlation between the success of the company and the success of its stock. It pays to be patient, because the disparity is the key to making money.
• Don’t invest in long shots because they rarely perform well.
• Never invest in a company without first understanding its finances. Companies with weak financial statements drop the most in price.
• Never invest in hot stocks in hot industries.
• No one can predict interest rates or where the market or economy is headed. You should study and concentrate on what’s happening to the companies you own shares in.
Picking stocks is both an art and a science, but you should never rely on either one too heavily. For example a person who relies solely on looking at financial statements before making an investment will not be very successful and same goes for the person who relies solely on hunches. Many people play hunches and make investment decisions by their gut alone but to be a successful investor, you must do the research to make sure your hunch is valid.
Legwork is equally important to your investing success. It takes time to find good companies to invest in. You have to be prepared to visit the companies, observe how they operate, sample their products and services, and talk the employees who work there. You may have to look at hundred different companies before you find a good investment, but all it takes are a few big winners to make your efforts worthwhile.
Becoming a successful investor and making money in the stock market comes down to you. Always be careful whose advice you follow. It’s not smart to blindly accept the recommendation of someone even if he or she is a professional without first knowing something about the person’s background.
Some people listen to what the masses are pushing, some don’t do their homework, and some who have been successful in the past become lazy. The truly successful investor, the person who makes the most money in the stock market is the person who researches companies constantly to get ideas.
Copyright©2006 by Joe Love and JLM & Associates, Inc. All rights reserved worldwide.
Joe Love draws on his 25 years of experience helping both individuals and companies build their businesses, increase profits, and achieve total success. He is the founder and CEO of JLM & Associates, a consulting and training organization, specializing in personal and business development. Through his seminars and lectures, Joe Love addresses thousands of men and women each year, including the executives and staffs of many businesses around the world, on the subjects of leadership, achievement, goals, strategic business planning, and marketing.
Reach Joe at: joe@jlmandassociates.com
Read more articles and newsletters at: http://www.jlmandassociates.com
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Is the start early; save as much as you can; get a good return on your money working for you? Savings rates are at an all time low and personal debt levels are staggering. What’s the solution? Work longer? Reduce your lifestyle expectations? The answer is really quite simple, yet seems to be somewhat of a mystery!! Let me tell you, it’s not a se*cret!! The answer is in looking at the situation for an income perspective, not the traditional asset accumulation model we have all adopted.
If you have expectations to receive a household income equivalent to say, $60,000 per year for 30 years, at retirement that would require you to have savings of $922,347. In order to accumulate this sum you would need savings of almost $14,000 per year for 30 years. These figures are based on conservative estimates of 5% earnings on your money, because whether inflation is low or not and whether the money is saved inside a tax sheltered investment or not, taxes and inflation is a factor that will affect your total return. You can use larger returns to make your estimate if you like, it’s your choice - but so is everything about how you live your life and plan your finances.
You can also decide to accept any income figure you like. If you seriously consider the $60,000 household income - does is it really give you the money you want to do the things you like to do? That’s for you to decide. On an after tax basis $60,000 is approximately $3,000 per month. Consider this when you make your projections: What are the costs of your activities? How much is clothes, food, entertainment, gifts, insurance, household maintenance? Everyone lives their lives completely different. How are you to know what income you want when you leave the workforce unless you do some research for yourself and find out just how much it’s going to cost. This means starting today to keep track of your current expenses.
This is the secret to being able to retire: you absolutely must know how much INCOME you want coming in to support your lifestyle. If you don’t know what you want to do, then I suggest you do some research to find out what you might like to do. And, while you’re doing your research, still keep track of what you’re spending today regardless of whether it’s what you think you’ll be doing when you leave work - it’s a necessary starting point in preparing a full financial plan.
If we decided that the $3,000 per month net income was sufficient, then we have two choices: 1) save enough money to fund it. This savings might be entirely on your own, or perhaps will include company and government pension money as well, or; 2) develop income streams today that will provide you with the $3,000.
Ask yourself this question: which is an easier number to grasp? $3,000 or $922,347? If the answer is $3,000, then start to plan your financial activities so you are creating income. There are many different ways: business income, real estate, network marketing, royalties, licensing, and income investments, are just some key areas.
Consider, for example, if you purchase a home with a suite in it today that produces $600 per month income. You could use the income when you needed it, use the space when you needed it, then convert it back to income again when you needed it at retirement.
Here’s another example to help you switch your focus from growth to income: If you were to make a $10,000 investment and expected to receive 5% on that money, we normally look at the amount that investment will grow to. In this case, if the investment was left for ten years at that return it would grow to $16,289. Great - but that growth money can now produce income of $2,109 or $173 per month for ten years. You can easily structure your investments with an advisor to plan for income rather than simply long-term growth.
Everyone has income generating ideas, they just get so focused on earning a living for today they forget about the future. There are many terrific resources to help you take your ideas and turn them into income. You simply have to first recognize that you are looking for income ideas - not get rich quick schemes - but solid, income generating ideas that you can work into your financial plan. Then when you find them, you can implement them whenever and however you like - so retiring (or more appropriately, being financially independent) can be yours whenever you want and at whatever level of income you want - your choice!!
MoneyMinding Inc. and Tracy Piercy accept no liability for the content of this article, or for the results of any actions taken or not taken, on the basis of the information provided. The content is intended for informational purposes only and is not a substitute for professional, personal financial advice.
Tracy Piercy, a Certified Financial Planner, offers step by step proven success principles, tools, ideas and strategies integrated with practical financial planning strategies. She has worked in the financial industry, in insurance, banking, and as a well respected investment advisor with CIBC Wood Gundy, for more than 15 years. Tracy is the author of Enlightened Wealth, a personal money journal http://www.moneyminding.com.
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Payday loans are loans of a small amount, taken for a short duration of time. Payday loans are generally meant to be paid off on the next payday.
Payday lenders loan out thousands of dollars every week to people who are in dire need of money. The Community Financial Service Association of America, payday loan cash advance industry extends to about $25 billion.
Payday lending is often regarded as something predatory and it is of the common belief that payday customers are being used as fodder by the money hungry payday lenders. However, the various researches undertaken throughout the years contradict the view that payday loans are predatory and the borrower is always being preyed upon. In fact, recent studies have shown borrowers preferring payday loans to other loan alternatives.
The huge Annual Percentage Rate (APR), in the range of 391% and higher often makes it intriguing as to the people who opt for these loans. But studies conducted throughout the States show that people from all walks of life consider payday loan cash advance as an affordable option to meet their financial needs.
The US Census report of 2000 show that 22% of the surveyed payday loan borrowers hold a bachelor’s degree from college. More than two-thirds of the people surveyed reported an annual income of a minimum $25,555 and has a savings account. Also, 51% of the surveyed population had a retirement savings plan.
Viewing the industry statement, it seems that the payday cash advance customer has more than average level of education than the general US population.
A typical payday loan customer is between 25 to 40 years of age and has an annual income between $25,000 and $50,000. Also people from all walks of life, including teachers, civil servants and corporate employees considers payday loan as an efficient solution to the short term financial emergencies.
For more information on payday loan cash advances, visit:
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Angelina Rosario is associated with Ampm Cash.com. She is an expert author in the Payday loan Cash advance industry. She has written on different aspects of payday loan cash advance and debt management solutions. Visit her site Anytime Cash for the latest articles, news and resources on Payday loan cash advance.
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