The Importance of Managers in the 21st Century

As a business or organization grows, leadership will find that they cannot manage everything alone. At some point, they will need to hire managers to oversee areas of their business.

Managers are valuable members of an organization. Their primary role is to ensure the smooth operation of an area of a business.

In the 21st Century, business structures are increasingly complex. The complexity of businesses today reinforces the importance of managers for workplaces.

Here are 9 reasons managers are important in 21st Century workplaces:

The Importance of Managers

1. They ensure Smooth Operation of Daily Procedures

The manager’s role is to ensure the day-to-day operation of a business or organization is smooth and orderly.

Without a manager, we might find that there is no one accountable for ensuring everyone is pushing in the same direction. Managers will ensure all staff are working towards a common goal and are following a clear set of standard operating procedures.

When serious problems arise throughout the day, it is the manager’s responsibility to address them. Often, staff members will be required to “escalate” a problem that they identify to the manager if they cannot (or do not have permission to) solve it themselves.

The manager then needs to use critical thinking and problem solving skills to address the problem so that it does not interrupt the smooth operation of the organization.

2. They can Motivate Staff

One of the most fulfilling aspects of being a manager is being able to mentor your staff. A manager acts as a leader whose job is to get the best out of each staff member.

A bad manager might be too harsh, mean or discourteous with staff members. This might de-motivate staff. No one wants to work for someone who is unkind. Staff with low morale might be less invested in the organization’s success and care less about doing a good job.

However, a manager who is too relaxed may also come across problems. If they are not personally motivated, this may rub-off on the other staff members.

A good manager can motivate staff members by mentoring them. The manager will identify the needs and aspirations of staff members and help them meet their goals. Managers can motivate staff by giving them responsibilities and opportunities for development.

Related: 18 Best Leadership Metaphors

3. They act as the Intermediary between Staff and Ownership

Often times, leadership is not aware of the daily issues that arise among staff ‘on the coalface’. The leaders are busy working on higher-level issues like growth strategies, finding strategic partners and managing budgets. They may not be able to keep a close eye on the staff themselves.

Managers often end up being the people who have close contact with both staff and ownership.

It is therefore the manager’s responsibility to let the ownership know when staff are facing serious issues in the workplace. They might also let management know when staff are discontent or have low morale.

Similarly, the managers are often tasked with informing staff of organizational changes, rules changes and strategic decisions made by leadership.

The managers therefore hold an important responsibility linking leadership to staff members.

4. They can Identify Bottlenecks in a Business Structure

The manager has a role as an overseer. They are the people who are best positioned to see areas of operations that are causing delays and disruptions. We often call these areas of delay and disruption ‘bottlenecks’.

An example of a bottleneck might be when one section of a production line is working slower than the rest. The manager may find that the entire process is slowed by that section of production, leading to decreased output at the end.

We’ve all experienced a bottleneck when driving in a car. The highway goes down from three lanes to two, and suddenly the cars pile up and the journey gets slower. The same happens in business when one area of operations is less effective than the others.

5. They Delegate Tasks to Ensure Optimal Efficiency

This is another way that the manager acts as an overseer. They need to be able to look at the department they manage and identify opportunities for improved efficiency.

To achieve optimum efficiency, the manager needs to know how to allocate resources and delegate tasks.

To do this, the manager often needs deep knowledge of their staff members. They need to know which staff member would be best placed in which role to get the best results. Similarly, they have the ability to allocate workloads or resources in different ways to get different results.

By allocating resources and delegating tasks effectively, the business or organization can run more smoothly and productively.

6. They set the Tone of the Workplace

A manager is necessary for ensuring a workplace retains a professional, productive and collegiate tone.

Without a manager, there is no leader to look to who can set an example of the expectations of behavior.

Similarly, a manager with poor communication skills might set a poor tone that trickles down to the employees. Examples might include managers who bark orders, appear constantly stressed, swear, or fail to explain their expectations.

By contrast, a good manager might ensure the workplace retains a professional atmosphere by acting as a role model. Modelled positive behavior could include: turning up on time, dressing appropriately, addressing others with respect, and working hard.

Related: 23 Qualities of a Good Teacher

7. They can Reduce Operating Costs

Cost-cutting opportunities are apparent in nearly every business and organization. With organizational growth comes bureaucracy, mistakes, and redundancy that needs to be re-examined on a regular basis.

The manager is in a good position to identify areas for cost reduction. They may find that a position on staff is no longer needed (or not with the cost). They may identify ways to automate processes outsource them to other organizations. Or, they may identify smoother ways of operations (see: identifying bottlenecks above).

However, a manager needs to know that reducing costs cannot come at the expense of quality or safety. Due diligence must be taken to ensure cost-cutting exercises do not harm the organization’s long-term goals, the experiences of clients, or the well-being of the remaining staff.

8. They ensure Long-Term Success of a Business

Many small businesses are reluctant to hire managers. A manager can be a large cost burden for the business owner.

However, longer-term growth and success may be dependent on the utilization of a manager. The managers make sure the day-to-day operations of a business continue to run smoothly while leadership works on higher-level growth strategies.

By working with managers, leadership can put in place standard operating procedures that make sure minimum standards are adhered to.

Furthermore, the managers are often the people involved in hiring and firing decisions. When a manager is given responsibilities for hiring, they are also given the responsibility for choosing team members who will be in the organization for years to come.

Their decisions are therefore deeply important for the workplace’s future.

9. They Liaise with other Departments to Ensure Effective Operations

When there are multiple managers in an organization, they need to be able to work together. Communication between departments relies on managers maintaining ongoing relationships with one another.

Managers will often have group meetings to discuss how they can support one another, align their operating procedures, and work together to ensure the organization runs smoothly.

Without this management-level communication, elements of large organizations may operate in bubbles with completely different standards and procedures. This, in turn, will create inefficiencies, bottlenecks, and differential customer experiences.

So, What Makes a Good Manager?

With these 9 points on the importance of managers, you might be asking: what are the characteristics of a good manager?

Here’s a few examples of good managerial skills:

Emotional Intelligence: A manager needs to be able to understand everyone’s perspective. They need to be able to empathize with their staff and ensure their staff are content and feel valued. This requires emotional intelligence.

A manager needs to be able to understand everyone’s perspective. They need to be able to empathize with their staff and ensure their staff are content and feel valued. This requires emotional intelligence. Leadership: A manager has to lead. This includes setting an example of good work ethic, taking command when decisions need to be made, considering others’ input before deciding, and showing people how to improve.

A manager has to lead. This includes setting an example of good work ethic, taking command when decisions need to be made, considering others’ input before deciding, and showing people how to improve. Problem Solving Skills: Every day, problems arise that managers need to address. Often, staff don’t have permission to address higher-level problems, especially ones that involve financial considerations. Therefore, managers need to step in and make a decision with the authority and insight they have from managing financial and higher-level aspects of the organization.

Every day, problems arise that managers need to address. Often, staff don’t have permission to address higher-level problems, especially ones that involve financial considerations. Therefore, managers need to step in and make a decision with the authority and insight they have from managing financial and higher-level aspects of the organization. Flexible: No day is the same as the last for a manager. Someone calls in sick, the finances take a hit, or something breaks. These are all the manager’s job to deal with! Sometimes leadership above you will make a strategic change that requires your attention. With all of these moving parts in your job, you need to roll with the punches and make adjustments to the daily running of the organization to steer the ship through rough waters.

No day is the same as the last for a manager. Someone calls in sick, the finances take a hit, or something breaks. These are all the manager’s job to deal with! Sometimes leadership above you will make a strategic change that requires your attention. With all of these moving parts in your job, you need to roll with the punches and make adjustments to the daily running of the organization to steer the ship through rough waters. Multitasking: Taking a step up to management means that you no longer have one standard procedure to follow every day in your job. Instead, you’re overseeing resources, staff, clients, finances, stocktake, etc. all at once.

Taking a step up to management means that you no longer have one standard procedure to follow every day in your job. Instead, you’re overseeing resources, staff, clients, finances, stocktake, etc. all at once. Organization: Because you have so many tasks to manage, you need to be organized. Organizational skills include planning ahead, being able to keep accurate records, have a procedure for storage, and putting in place standard operating procedures. When you’re organized, you will have a more in-depth understanding of the business, be prepared for when things change on a dime, and be less stressed overall!

Because you have so many tasks to manage, you need to be organized. Organizational skills include planning ahead, being able to keep accurate records, have a procedure for storage, and putting in place standard operating procedures. When you’re organized, you will have a more in-depth understanding of the business, be prepared for when things change on a dime, and be less stressed overall! Delegation: You’ll have a lot of tasks to oversee – far too many than you can do alone! It’s the manager’s job to spread out various tasks to employees. You need to know how to delegate instead of micromanaging and doing everything yourself. When delegating, you need to know who can handle the extra workload and who will do the job most efficiently.

You’ll have a lot of tasks to oversee – far too many than you can do alone! It’s the manager’s job to spread out various tasks to employees. You need to know how to delegate instead of micromanaging and doing everything yourself. When delegating, you need to know who can handle the extra workload and who will do the job most efficiently. Big Picture Thinking: A manager needs to know what’s best for the whole organization. Unfortunately sometimes that means letting go staff or cutting back on hours to ensure a business stays financially viable.

Final Thoughts

A manager is important for the smooth and effective operation of complex workplaces. They are also invaluable for ensuring staff and leadership work together effectively. To achieve their goals, managers need emotional intelligence, problem-solving skills, and strong communication skills. These 9 points on the importance of managers are even more important in the 21st Century when organizational structures are becoming more complex.

Top 6 skills for managers and professionals in any industry

Managers are typically in charge of various high-level aspects of running a company, such as hiring or firing personnel, budgeting, and ensuring employees meet quotas, understand and work toward the same goal, and feel satisfied in their work. Having the right skills to handle all duties associated with the role can help you be more effective as a manager. When you equip yourself with the knowledge and skills the job requires, you can lead others to be more productive and happier with their work.

Must-have management skills

Here are some must-have management skills you can perfect to help you succeed:

Communication

Effective communication, both written and in-person, is essential for managers. Some duties of this position, such as meeting deadlines or scheduling events, require the ability to delegate tasks to those individuals on your team who are best suited to accomplish them. For example, if a member of your team has an exceptional typing speed, they might be well-suited to the task of responding to emails, while another employee may be well-spoken and charismatic, making them the best person to give presentations on projects. Communicating with your employees helps you better understand their strengths and weaknesses.

Playing to your employees' strengths can increase productivity, as people are more likely to show up and perform well at a job they enjoy. In fact, a study from the University of Oxford found that happy employees are 13% more productive at work. Communicating effectively and providing constructive feedback and praise allows your employees to understand their job and its duties, helping them avoid making mistakes.

Leadership

Having leadership skills means you can delegate tasks effectively, see that projects get completed, and ensure business runs efficiently. As a leader, you're likely knowledgeable about all aspects of running a company; however, you might not be an expert in every area. Therefore, it's important for a manager to be able to lead a team of people. Managers must ensure everyone knows what's expected of them so they can perform their responsibilities. Speaking clearly and confidently and maintaining eye contact are both signs of an effective leader.

Empathy

It's important for a manager to have empathy toward their employees because it can help gain their trust and respect. When you demonstrate you understand what your employees are going through and that you care about them as individuals, you make them feel important and appreciated. If an employee comes to you with a problem, whether it's work-related or personal, try to listen to their words and offer suggestions to resolve their issue or just be a sounding board for their complaints or ideas. These simple gestures go a long way toward earning your employees' trust.

Multitasking

Another important management skill is multitasking, or the ability to do more than one thing at a time. A manager often must work with an angry customer and soothe a distraught employee simultaneously or handle an incoming order while also paying a late bill. Staying calm and maintaining the composure to get tasks accomplished is key for management positions. Knowing how to prioritize your workflow to ensure you take care of the most important jobs first and having the ability to work under pressure can help you when multitasking.

Detail-oriented

A detail-oriented manager is one who notices the small things others might miss. For example, they might spot an accounting error before sending a budget plan to upper management. Or, they might be exceptional at hiring employees who possess the exact skills and education for their positions. A detail-oriented manager can help a company reduce spending and increase productivity by spotting mistakes and correcting them before they become larger issues. If you have the skills to pursue management positions, create a profile on Career Builder so employers can find you.

Problem-solving

Problem-solving skills are helpful in many roles, but the ability to solve problems is a must-have skill for managers. In any job and industry, problems are bound to arise. An effective manager must come up with solutions quickly and on the spot. Sometimes, there's no time to seek guidance, and managers must make tough decisions on their own. This also comes with taking responsibility for those decisions, no matter if the outcome is positive or negative.

Managers can use their problem-solving skills to help employees work through issues they might have accomplishing their tasks or performing their duties. This not only helps employees meet deadlines but can also lead them to trust and respect you more as a manager.

Whether you're already a manager or looking to become one, these are skills you might want to develop to excel in your role. You can perfect these management skills and more and use your resume to showcase them to a potential employer. Having the right skills for the job shows a hiring manager how well you can perform your duties and that you can learn what's required for the job.

Consider these ideas if you have an interview for a management position:

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What Is Knowledge Management and Why Is It So Important?

Organizations are the sum of their collective knowledge, and they succeed or fail based on how they capture, store, share and effectively manage that information in pursuit of business goals. When employees can access knowledge easily, they’re more productive. When they can’t, they are inefficient and become frustrated, So the question is: What are you doing to optimize knowledge management in your organization? Many problem-solving approaches involve communicating and knowledge transfer in a natural, informal way. This downside is that teams miss out on undocumented, tacit knowledge. They spend extra time searching for inaccessible information or “reinventing the wheel” by repeatedly solving commonly asked questions. By contrast, intentional and effective knowledge management helps teams quickly access all available information and follow up with internal experts for additional questions. Modern knowledge management processes enable employees to ask questions anonymously or contribute their expertise, breaking down silos and creating a living knowledge base. The result is that teams across functions, including R&D, sales and help desks, can deliver more value with greater efficiency. Learn more about knowledge management, its importance for your organization and how to make it more effective and efficient.

What Is Knowledge Management? Knowledge management is the process of capturing, storing and sharing the knowledge and experience of employees to increase the workforce’s overall knowledge, improve productivity and retain critical information. You can maximize efficiency and improve your teams’ decision-making abilities by harnessing your most valuable asset — employee expertise and knowledge. The Main Areas of Knowledge Management Before you can effectively manage knowledge, it’s helpful to understand knowledge as falling into two camps: tacit knowledge and explicit knowledge. Understanding how to access, manage and strategically distribute these types of knowledge within your organization is a key driver of business success. Explicit knowledge is a straightforward concept. This is documented knowledge, such as handbooks, research reports, sales scripts and datasheets. This type of knowledge is ideally easy to categorize and share. Tacit knowledge, also called implicit knowledge, combines the skills, abilities, ideas and experiences your people have but are not written down or easily expressed. This category of knowledge can encompass years of experience and accounts for most knowledge held by individuals and organizations. Because of the nature of tacit knowledge, people are often unaware of how much they know or how it can be valuable to others. To illustrate these two categories of knowledge, imagine a person preparing for a fishing trip. They can easily research types of explicit knowledge, like regulations, recommended equipment or how to tie a knot. Tacit knowledge includes what you’ve learned from past fishing trips and why you know a particular location is perfect for catching fish. This knowledge can be challenging to transfer to another person. Tacit and Explicit Knowledge Within Organizations While sharing explicit knowledge can be simple, transferring tacit knowledge often requires extensive communication and frequent interactions. As employees gain more experience from time spent on training or mentoring, for example, they can acquire tacit knowledge. These knowledge transfer processes can be slow, difficult to scale and imperfect. Modern solutions that allow employees to document and facilitate tacit knowledge are essential to effective knowledge management.

Why Is Knowledge Management So Important? Organizations that effectively gather, store and share knowledge can encourage a culture of collaboration and curiosity. In turn, they see improved efficiency and employee satisfaction. An effective knowledge management system streamlines company knowledge while making it accessible to everyone. Knowledge management means that employees can quickly access best practices, information on past projects and other key information that informs their work. Armed with that information, they can improve their performance and decision-making. When knowledge-sharing barriers are removed, employees move beyond silos and discover who else has valuable information about a topic. And when organizations connect those subject matter experts with co-workers who need their expertise, teams are empowered to challenge the status quo and find innovative solutions to unique problems. The Cost of Ineffective Knowledge Management Ineffective knowledge management creates gaps in knowledge, which result in wasted time, lost productivity, repeated mistakes and employee dissatisfaction. As companies scale, the issues related to poor knowledge management become more significant and harder to resolve. For companies with over 10,000 employees, the average employee spends over 100 minutes every day searching for information they need to do their job. Over a whole year, this can result in more than $70 million lost as teams search for answers that often aren’t documented. Lost time and efficiency can create a ripple effect throughout your organization. R&D, for example, might have teams duplicating each other’s findings without realizing it. Sales performance can suffer as salespeople can’t deliver timely, accurate information to customers and prospects. Help desks face excessive ticket queues because employees can’t solve common problems independently. Onboarding and other training activities are less effective because employees receive outdated, inaccurate or irrelevant information. Key Benefits of Effective Knowledge Management Effective knowledge management can improve almost any process because valuable information is easier to access. Improved knowledge sharing and collaboration can deliver higher productivity, as well as financial and cultural benefits. One benefit of knowledge management that cuts across teams and functions is less time spent re-creating or documenting existing knowledge. When everyone within the enterprise can access common knowledge, your help desk and subject matter experts spend less time answering repetitive questions, and your employees can redirect their efforts to more meaningful work. With more time and greater access to knowledge and expertise, teams can easily share information that drives better results. These teams commit fewer mistakes and share important ideas and information across the enterprise. These positive actions lead to new opportunities and accelerated cycles of innovation. An effective knowledge management strategy can also improve the highest levels of your organization. For example, executive-level decision-making improves when your top leaders aren’t wasting so much time seeking readily available information.

How to Make Knowledge Management More Effective Now that you know more about what makes knowledge management important, here are some points to consider to make it more effective in your organization. Decide How to Capture Knowledge Identify all the sources of knowledge within your organization. Understanding your organization’s knowledge flow will help you discover gaps. Most organizations have room to improve, as 63% of employees spend too much time getting a resolution. And nearly 25% of employees become increasingly frustrated and overwhelmed by this challenge. Work out where new and existing knowledge will be stored, how it will be mapped and what security measures you’ll need. While knowledge might originate from many sources throughout your enterprise, you want a single trusted source of information whenever possible. Find the Best Place to Share Knowledge Building or adopting a knowledge management solution is a valuable first step. However, employees need to understand how to use it to access information. Use training sessions to increase their understanding of the new system and how they can contribute, including any workflows that make the system easier for employees to use. Adopt a System That Integrates Into Workplace Tools The most effective way to get employees to embrace a knowledge management system is by making it easy to use. Your system should integrate with the tools employees already use. Employees don’t want to learn additional platforms or be confused about what system they should use. Integrating your knowledge management system with other platforms also ensures that data is synchronized and up to date. Make It Real Time Your team needs access to the most accurate information at all times, and they must be able to trust your knowledge base. This is especially important for rapidly growing enterprises. Employees need access to the latest knowledge and resources so they can react to changing conditions and support evolving company goals. That growth also requires quick decision-making. A real-time knowledge network enables employees to get answers quickly and return to core tasks. Encourage Employees to Ask and Answer Questions Employees need a safe place to ask questions, share their knowledge and be recognized for their contributions. It’s not unusual for employees to feel uncomfortable speaking up or asking for support in a public setting, so make sure your knowledge management system allows for anonymous questions and comments. This approach will improve user adoption and the quality of questions asked. Ease Concerns About Public Data Access Knowledge management systems are like any other technology; they must be protected from cybersecurity concerns and intellectual property theft. Regulatory compliance is also non-negotiable. Look for platforms that highlight a commitment to privacy and security through safe practices and certifications, such as ISO 27001:2013, a globally recognized international standard for managing information security risks. Treat Knowledge Management As Continuous Knowledge changes over time. External factors such as market conditions or the regulatory environment can immediately impact your enterprise. Your business needs today might not reflect tomorrow’s, and your systems must be able to scale in parallel. Effective knowledge management is a continuous process. Key to this evolution is encouraging employees to ask questions, answer queries and contribute their expertise for future benefit.

What Defines an Effective Knowledge Management Tool? A knowledge management system powered by artificial intelligence is the most effective solution for most enterprise organizations. These systems can offer real-time, automated access to information. Effective knowledge management systems integrate with other platforms used by your employees so they don’t need to log in and out constantly. Instead, knowledge is delivered to them. An AI-powered knowledge management solution empowers employees to share their expertise and learn, ensuring that their co-workers can access and build upon their insights. Effective knowledge management systems help employees self-resolve more issues, which frees up help desks and lets employees focus on what matters most. And when they do have questions that require additional help, these knowledge systems can connect them with experienced subject matter experts. Most importantly, tacit knowledge can be accessed and retained. An effective knowledge management system maximizes your people’s time and expertise while building a collective knowledge base that fuels efficiency, innovation and time to market.

Commonly Asked Questions Include What Is Meant by Knowledge Management? Knowledge management is the process of capturing, storing and sharing knowledge. It encompasses all information and knowledge creation inside your organization, including knowledge sharing. It can be as simple as training employees or as complicated as R&D teams collaborating on a scientific breakthrough. Traditional knowledge management focuses on documented knowledge, but most knowledge within organizations is undocumented. Modern knowledge management bridges this gap by connecting knowledge seekers to colleagues with tacit knowledge to share. What Are the Types of Knowledge Management? The two types of knowledge are tacit and explicit knowledge. Tacit knowledge is gained through experience and can be challenging to describe or share easily. Explicit knowledge, such as internal policies or key findings from a research project, is more easily documented and shared. What Is the Most Important Part of Knowledge Management? The most important part of knowledge management is providing your team with quick, easy access to accurate, up-to-date information and connections to subject matter experts who can help fill gaps in knowledge. What Is Knowledge Management, And Why Is It Important? Knowledge management is essential for businesses that want to scale their growth while connecting employees across teams and geographies — and do so efficiently. Knowledge management gives your teams access to the information and resources they need to do their jobs effectively. It also helps your business retain that knowledge for future use, which promotes efficiency, a better working experience and less repetitive work.