Mar. 21, 2006. Good Management vs Bad Management

While reading "One Billion Customers," by James McGregor, one section really stood out to me. After describing the lagging CICC venture by Morgan Stanley and China Construction Bank, McGregor describes the management style of Austin Koenen. To the Chinese employees, he was "openhearted," and it seemed his style motivated his employees to work hard for him. All through Organizational Behavior, Professor Rami Shani emphasized the role that motivation plays in managing. Mr. Koenen's predecessors were unattached to the employees, and communication was largely difficult due to language barriers. However, Mr. Koenen was able to convey his sincerity to his employees, which made them want to work hard for him. It is not shocking that CICC was faltering prior to Mr. Koenen's arrival, and it is unfortunate that he was not able to lead the company further due to a fatal heart attack.

Yet, looking at the U.S. business environment today, I have a hard time naming any company that stands out as having good management, even among the most well-known companies. From what I've experienced and learned, only Yahoo comes to mind as a company that understands the role managers need to play in an organization. I read somewhere that between 50-75% of Americans dislike their job, and while that is alarming, it is not surprising.

The question is how many managers really know what they are doing? I'm sure they are competent enough to be managers, but are they capable to be leaders? How do you motivate your employees to work hard, and stay upbeat? How do you retain employees, because it costs so much to train new employees? I think I can say with reasonable certainty that a majority of the managers are not concerned with establishing a rapport with their employees, but are concerned with their personal payday. As a manager, the primary role should be to motivate and lead your employees. Be a mentor, not a dictator. Maybe it is more difficult than it seems, but I find it disturbing that the current business environment is what it is. I commend the firms that are managing and leading the right way, and I wish we could do more case studies of good vs. bad management in our MBA program.