Trading industry interview
The first interviewee is a practicing manager with over ten years of managerial experience, currently working in a goods import & export organization. It is a small organization that, despite employing approximately ten employees, operates on a strict ladder system. As anonymity was requested, the interviewee will be addressed as “Anon”.
Operating in the trading industry, the management structure has to lean heavily towards McGregor’s theory X of management, where tasks are directed and controlled by the higher-ups of the management ladder. An establishment of a hierarchy between all personnel within the organization is obligatory, following the “Classical Administrative School” managerial theory founded by Henri Fayol.
A clear distinction between the ranks is compulsory, and all orders from above are to be carried out without any disputation. As managers are fully responsible for all decisions, the sole purpose of the employees is to realize the project plans. In small organizations, it is common for managers to be immediately responsible for most, if not all, of the employees in the chain of command. All project budgeting and tasks have to be allocated directly by the manager.
Through the interview, Anon shared that as a successful manager in the trading industry, possessing excellent communication skills is mandatory as the profession heavily depends on forging relationships with other organizations that operate in various fields. No trading will bear fruit if there is no mutualistic relationship with other organizations. As mentioned in the above theory, the sub-authoritarian structure must ensure unobstructed operation flow in the chain. While it is alright to develop a buddy relationship with the subordinates, Anon emphasized that it must not be carried into the workplace. Being the superior, Anon makes sure always to display a friendly and encouraging appearance when talking to the subordinates, as Anon believes that managers contribute notably to the employees’ motivation and productivity.
Especially In times of distress, Anon has to make quick decisions while measuring future interests and maintaining a balance between all aspects. Issues such as customer complaints, trouble among employees, and the organization’s financial crisis are weighed and ordered based on the severity they cause towards the organization’s benefit. Anon explained that financial crises are not necessarily red alerts if countermeasures are appropriately planned to pull through the crisis period. All decisions must be weighed against the organization’s benefit.
As this recent global pandemic COVID-19 broke out, Anon’s organization was significantly affected as their operation mainly focuses on the physical flow of goods. Restrictions on item transportation and peoples’ movement have resulted in the loss of cash overturn rate due to the decrease in sales hence importation and exportation. They had to convert all the physical work to online work within a limited timeframe to overcome the movement restrictions, as well as reducing employment to weather the storm.