| It is easy to come up with thirty types of managers, to | | | | There are of course managers (like project managers) |
| name a few only think of: the sales manager, | | | | for which this distinction doesn't quite fit. The project |
| marketing manager, operations manager, logistics, | | | | manager manages a future business by organizing a |
| HRM, Finance, a CFO, a business development | | | | project team... |
| manager, a product manager, quality manager, etc, | | | | But let's concentrate on the main distinction of the type |
| etc... | | | | of managers: business or organization. |
| But where are the real differences in these examples. | | | | A business manager will find it hard to change to a |
| What is key for understanding the managers' main | | | | more organizational management role. Do not ask a |
| focus? | | | | business manager (logistics) to become the manager |
| There are many ways to define the management | | | | of the quality department, the risk department or the |
| main focus but one of them is straightforward but | | | | HR department. These roles are quite different and |
| nevertheless not applied often. It is about the division | | | | require a different type of manager. Likewise a quality |
| between business and organization. | | | | manager or a HR manager will no fit as head of a |
| 1.Business | | | | business department. |
| The linking element in these types of management is a | | | | Where the business manager is more prone to think in |
| certain domain in business, for example: logistics, | | | | numbers and time (amount of sales, revenue, |
| finance, retail, operation, purchase, etc. The main | | | | resources used, etc) the organizational manager is |
| characteristic of business management is that it is | | | | more biased towards thinking in levels (quality level, |
| directly related to business activities. A sales manager | | | | security, salary, training and education, etc). One is |
| has to set targets for sales, has to agree these | | | | often organized in a decentral way (the business - |
| targets with his sales team and he will manage the | | | | close to the clients) the other is often organized in a |
| target as sales revenues are reported. | | | | central way. |
| Marketing management is slightly less directly involved | | | | Yet higher in the organization, managers will have both |
| in business but still measurable: A campaign is created, | | | | a business side in the (Management) team as well as |
| executed and the impact on client and prospect | | | | organizational staff managers and need to find a |
| activity can be measured. | | | | balance to manage them as a team. This will often |
| Part of both is that non-business related activities are | | | | result in different management meetings. |
| required (like recruitment) but this is not a main activity. | | | | For such managers it is important to understand both |
| When new employees are required the sales | | | | requirements. Higher management is often filled by |
| manager may address to the HRM department and | | | | people from the business and will have limited |
| ask to perform a recruitment procedure. | | | | knowledge and experience from the more |
| 2. Organization | | | | organizational domains of the company. In finance, this |
| The linking element here is a supportive act to the main | | | | has become clear in the domain of risk management |
| business but where the external client is never visible. | | | | that has often fulfilled a supportive organizational role, |
| Areas are: HRM, Finance, Quality, technology, | | | | but will now be equally seen as part of the (core) |
| infrastructural management, etc, etc. | | | | business. That is a lesson from the financial crisis. But in |
| The request from the sales manager to recruit a new | | | | general managers should beware of the division of |
| employee is received in the HRM department. They | | | | these types of managers, their main domain and |
| send an employee to verify the details of the vacancy | | | | responsibility and their overall role in the company. |
| and its requirements and it will search in the market for | | | | Every company must have a right balance: if the |
| candidates. | | | | quality manager is not on equal terms with business |
| The sales team is involved in this activity but only | | | | management than this is quite probably due to an |
| slightly. This also depends on the size of the | | | | organizational design error. |
| organization. (For the single entrepreneur this distinction | | | | H.J.B. |
| between business and organization is not explicit). | | | | |