It is harder to manage people for these reasons:

• There is more pressure for productivity and quality.
• Managers are responsible for more people, many of whom work at distant locations.
• The influx of generation X workers has introduced a new set of values.
• The world of business has changed.

When generation Xers entered the work force in the late 1980s, it was a time of downsizing for many firms. These staffers never experienced job security, so it did not become important in their hierarchy of needs. Their attitudes spread to other parts of the work force. Less fear of job loss and more employment opportunities led to more assertiveness in pursuit of other needs.

Viewing themselves as free agents, employees want to improve their value. They do so by being highly productive. This makes them more likely to be demanding, and though they add to firm productivity, they are challenging for management.

Because managers are so busy with more complex work and more people to manage, they may tend to be laissez-faire managers. When they get around to dealing with a problem, it may be too late. It is better to be a hands-on manager (but not a micro-manager). People do better, and are more productive and loyal, when they are getting attention. If managers clearly communicate their expectations and hold people accountable, they can be more generous to high performers. But every person is different and requires an appropriate degree of involvement by his or her manager. Here is how to develop accountability:

• Monitor what people are doing. If you have too many people, create a hierarchy within your department.
• Communicate your expectations regularly on an individual basis.
• Keep a written record of meetings with your people.
• Attend to problems as soon as they arise.
• Be firm in dealing with problems.

From Partner’s Report—the Monthly Update for CPA Firm Owners, August 2006, p. 1. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $349. 212-244-0360, [email protected]. For the complete article, click here.