“Assuming that you owned a large business firm, what is the principal quality, trait or qualification you would want your executives to possess?”
Business management may be broadly defined as the art of directing human activities so as to carry out a business firm’s policies and achieve its goals. Whether it be general or specialized management—such as personnel, purchasing, production or sales—the key to all business management lies in the words: directing human activities.
Intelligence and Ability
A good executive is a man who can think and act independently and needs only the barest minimum of instruction to carry out his job.
Leadership
Now, an executive’s principal duty is to direct the activities—the work—of those under him. Direction being nothing less than another word, leadership, it follows that the good executive must, perforce, think and act as a leader.
- Example is the best means to instruct or inspire others. The man who shows them as well as tells them is the one who gets the most from his subordinates.
- A good executive accepts full responsibility for the actions of the people under him. If called before his superiors because something has gone wrong in his department or office, he accepts full personal blame, for the fault is his for having exercised poor supervision.
- The best leader never asks anyone under him to do anything he is unable—or unwilling—to do himself.
- The man in charge must be fair but firm with his subordinates, showing concern for their needs and doing all he can to meet their reasonable requests. He treats his juniors with patience, understanding and respect and backs them to the hilt. On the other hand, he does not pamper them, and always bears in mind that familiarity breeds contempt.
- Praise should always be given in public, criticism should always be delivered in private. Employees who have done a good job should be told so in front of their fellows; this raises morale all around. Employees who have done something wrong should be told so in private; otherwise, they will be humiliated and morale will drop.
The Ability to Communicate
The good executive is one who can explain things and tell people what needs to be done quickly and clearly.
Interest and Enthusiasm
A good executive knows what goes on in other departments and that he be completely conversant with the company’s policies and over-all activities. Then, his interest should go even further: to embrace the entire field or industry in which his company operates. Only if he knows the field can he understand his company’s strengths, weaknesses and problems.
An executive should thoroughly like his work. He should—starting with the operations of his own department—actively seek ways whereby his firm’s efficiency, production, sales and profits may be increased.
Loyalty
The executive’s loyalty should not be to any individual—but to the stockholders, employees, his associates, superiors and the company as a whole.
* Source: How to Be Rich by J. Paul Getty