What are the challenges and rewards of being a manager?

Answer 1

Challenges and Rewards With new and luxurious condos going up all the time across the city, management companies are champing at the bit to become the first managing agent for these often high-profile, upscale properties. If it's a choice between managing a new multi-unit residential property or an older existing property, it seems like a no-brainer to go with the new one. After all, becoming the first managing agent offers firms the opportunity to establish proprietary operational and procedural systems on a property with all the latest amenities. Plus, the managing agent's job must be easier since everything from the HVAC system to the doorknobs works, everyone is happy to be in a shiny new home, and the maintenance and structural problems that face older buildings won't appear for decades…right?

Well, this isn't always the case. Although it might initially seem that a new building has everything up and running perfectly, there are often lingering construction problems, clueless first-time homeowners and problems that need to be worked out-usually with a lot of help and sweat on the part of the managing agent.

"I always say when managing a new building, you have eight months of misery, then 15 years of pleasure, and then the misery starts again," says Stephen Elbaz, president of Brooklyn-based Esquire Management Corporation. "During that first eight months you need to work out all the kinks. There's always headaches and repairs."

Time to HireGood management is an absolute necessity for any multi-unit residence the moment it opens for occupancy. In the early stages, a developer or sponsor may engage a management company to assist in the process of developing offering plan documents to present to the New York State's Attorney General's office and an initial operating budget.

"In some cases, forward-thinking developers involve management companies from the conception and design stage [of a building project]," says Mitchell Berg, senior vice-president of Maxwell-Kates, Inc., a Manhattan-based management company. "For operational reasons, having a management company involved on the design of the building is sometimes beneficial."

During construction the management company has limited to no involvement, however once the construction is complete and the building is ready for occupancy, the management company becomes responsible for the operations.

"Typically, a developer or sponsor will either have an internal management division in place, or will make arrangements with a third-party management company to assist in the day-to-day operational management of the property as soon as units are offered for sale," says Michael Berenson, president of AKAM Associates in Manhattan. "In most newly-built or newly-converted properties, the relationship between the developer or sponsor and the first management company continues until the developer or sponsor is ready to divest and step away from representation on the board."

To Bid, or Not to Bid?When it's time for condominium projects to choose a management company, in most cases developers have relationships with management companies already, but it's not uncommon to solicit bids for new projects.

"The way most jobs work is that a client will request a list of management companies that we have worked with before and we will provide them with a list and then they will contact them to discuss fee structure and what assistance they will provide regarding preliminary work to get the condominium up and running," says Richard Herzbach, an attorney with Certilman Balin Adler & Hyman in East Meadow.

Get to WorkAlthough there won't be much to do at first in the weeks and months leading up to the opening of a brand-new building, the pace definitely picks up as the occupancy date draws nearer. The management company's specific tasks prior to the first move-in are determined by the property's developer or sponsor and vary from building to building.

"Aside from being the 'agent of record,' so to speak, I also work on the budget for the property and other disclosures that I will be a part of in the plan," says David Baron, principal of Metro Management Development Inc. in Long Island City. "The first thing you have to do is hire a staff of people, because there's no one in place. It's not like you are coming in and have people there already-here you are starting from scratch."

Staff members that are hired can include supers, porters, security, concierge and doormen. Other operation issues that need to be addressed include supervising contractors, ensuring proper local and other filings, and establishing operational procedures.

"Besides interviewing and hiring the staff, you need to order basic supplies like mops, cleaning products and staff uniforms," says Elbaz. "You need to get the telephone lines turned on in the elevators and make sure the alarm system phones are working, and you need to work with the developers to get all the account numbers for utilities, water, and so forth."

Another task for the managing agent in the infancy of a building is to assist the new homeowners with moving in and understanding the rules of being in a condo development.

"Most managing agents who come in during initial stages of a job are involved with assisting the homeowners moving in and helping them get things organized, since they don't know each other very well and many are first-time owners," says Herzbach.

Challenges AboundThe most common challenges with a newly-constructed residence are related to open punch-list items that need to be addressed. These can  include structural, mechanical, aesthetic, and operational issues.

"Additionally, there are the challenges of coordinating moves into the building so that elevators, docking bays, and other building services are available without inconveniencing others; staffing up and training staff; and establishing property-wide policies, procedures, and protocols for both owners/residents and management," says Berenson.

You would hope that a new building would have no construction issues, but our experts say that 90 percent of all new condos will have at least one thing wrong with it.

"I don't think there is one building that is so perfectly built that there are not construction issues," says Berg. "Let's say the building isn't watertight and it rains and there's seepage into the building. I'm not saying it is common, but the reality is that the first two months are when you see if there are any failings or flaws and leaks. That becomes very difficult for management companies."

Complaints from residents usually relate to items in their own units, such as floor tiles that weren't laid properly, Plumbing that doesn't work, or windows that won't slide easily. The management company will get an earful of these problems during the first year.

There's also usually stuff going on throughout the building.

"You hire a staff, but you never know how they will do, and there is a lot of staff turnover," Elbaz says. "Alarms go off, elevators aren't working properly. It's generally six to eight months of getting those worked out when you're managing a new building."

Baron says that many builders decide not to fully complete the common spaces until all the tenants have moved in, so you might have hallways that aren't painted or carpeting that isn't laid out.

"If you have people living in a building they probably paid a good price for, and they're still dealing with tradesmen coming to the building, there will be complaints," Baron says. "Some residents are moving in when the building is just 95 percent completed."

Board MattersWhen it comes to a new condo property, initially the developer or sponsor is the board and within the first year-often on the anniversary of the condo's commencement-they will hold the first official board elections for the residents.

"Once the first meeting is held, the board is a combination of homeowners and sponsor representatives because there are still some unsold units," Herzbach says.

At these meetings people will volunteer and a vote will take place. Since many on the board are doing so for the first time, it's up to the management company to help teach them their responsibilities.

"There is a learning curve, especially in a new building where you have a lot of young people who have not been unit owners before," Elbaz says. "Part of my job is to educate the board on what they should do. What a treasurer should do… the president. It's a lot of teaching and handholding."

Why Go New?Even with the problems and challenges facing newly constructed buildings, management companies still see a lot of good in taking on these jobs over the older buildings.

"Everything is new, the elevators, air conditioners…and everything is under guarantee, so the manager isn't hearing about as many problems," Baron says. "Things don't break as much and you have service contracts on everything."

Another upside is you get to put your stamp on things from the beginning and don't have to follow operational and procedures that are already in place.

"There are many upsides of managing a new building," Berg says. "Everything is starting new so it's kind of easy. You're not inheriting much history of problems. Plus, it's kind of exciting to get a new project off the ground.

REWARDS AND CHALLENGES OF BEING A MANAGER

We can not leave our discussion of the value of studying management without looking at the rewards and challenges of being a manager. What does it mean to be a manager? Being a manager in today' dynamic workplace provides many challenges. It can be a tough and often thankless job. You may have to deal with a variety of personalities and many times have to make do with limited resources. It can be a challenge to motivate workless in the face of uncertainty and chaos. And managers may find ot difficult to efectively blend the knowledge, skills, ambitions, and experiencesof a diverse group of employees. Finally, as a manager, you are not in full control of your destiny. Your success typically is dependent upon others work performance.

Despite these challenges, being a manager can be very rewarding. You are responsible for creating a work environment in which organizational members can do their work to the best of their ability and hilp the organization achieve its goals. In addition, as a manager, you often have the opportunity to think creatively and use your imagination. You help others find meaning and fultillment in their work. you get to support, coach, and nurture others and help them make good decisions. you will get to meet and work with a variety of people--both inside and outside the organization. other rewards of being a manager may include receiving recognition and status tin the organization and in the community, playing a role in influencing organizationalout comes, and receiving attractive compensation in the form of salaries, bonuses, and stock options. Finally, organizations need good managers. Nothing great ever happens by itself! It's through the combined efforts of motivated and passionate people that organizations accomplish their goal. As a manjager, you can get satisfactio from knowing that your eccorts, skills, and abilities are needed.

Learning what it means to be a manager:

What is insightful is that the new managers had a misperception of what it meant to be a manager. "All began by describing management's rights and privileges, not its duties. They began by stating explicitly that being a manager meant being the boss." They struggled during the first year to reconcile their expectations with the realities of managers work, with the constituencies they would work with; subordinates, superiors, and peers. They had to make sense of complex, often conflicting, and demanding expectations. E.g., Subordiantes expectations included "people managers" while superiors included "integrator", and peers included "negotiators." None of these were in the expectation list of the new manager. The learning was also emotionally unsettling, for the managers had to act as managers before they understood what that role was. It wasn't until the 4-6 month mark that they stated to see the difference between doer and manager. Evaluating subordinates' performance was truly the rite of passage for the new managers. As one stated "I had joined a new fraternity," and "Not only was I no longer one of the gang. I was the enemy."

Developing interpersonal judgement:

Building effective relationships with their subordinates was unequivocally the most difficult task the new managers faced. More specifically they had to learn how to establish credibility, build subordinate commitment and lead the group. The second set of lessons the new managers had to learn was how to manage individual subordinates' performance.

Gaining self-knowledge:

As the year progressed and they could see a new professional self-concept forming, they found themselves asking even more unsettling questions: "Who am I becoming?" They were learning about themselves, one said, not only as "a manager, but as a person." They were acquiring managerial character-personal qualities or attitudes essential to effectively manage people.

Coping with stress and emotion:

As they soon discovered, the stresses were greater and more debilitating than they had imagined. For the first time in their careers many of them faced the possibility of failure. The managers had to learn to cope with four stresses:

Role strain:

overload, ambiguity, and conflict

Negativity:

to be hit with problems and conflicts all day

Isolation:

coping with loneliness

The burden of leadership responsibilities:

managing risks, being a role model, and having power over people's lives.

The last section focuses on Managing the Transformation. As a practitioner, coach, and mentor I found this section the most valuable. All the conclusions are against an important backdrop: that you become a manager mainly by on-the-job learning. Yet there are resources and support that can make this learning and transition easier. The second most important teacher was observing and interacting with coworkers: past and current bosses, past and current associates (principally peers).

For bosses, one of the most consistent and troubling findings in this study was that the new managers did not perceive their current bosses to be resources for coping with their first-year challenges. Most saw the current boss as more of a threat then an ally. The individuals to whom the managers most often turned were former peers.

Because "the reward for being a good producer is to be made a manager". This book has wide spread implications for evaluating, selecting, developing, coaching and mentoring new managers. They need a coach, a sounding board to ease this difficult transition. Both human and organization costs can be saved with the lessons learned from this in-depth study of new managers during their first year on thOne of the top challenges of managers today is having workers who don't want to work.

Solution: Human resources should communicate with managers to determine who is and is not a good candidate for hiring. Improve screening process with questions that get into the mind of the applicant to get an idea of his/her work ethic. A personality profile would go even further to identify useful or alarming tendencies which can be entertained further with questions.

Another challenge that managers face today is workers who are not qualified to do the type of work.

Solution: Same answer as above. Improve the screening process in human resources.

The third problem that managers face is workers who are not interested in the work and so only do what is needed to get a check on payday.

Solution: Include the workers in decisions for improving the business. Ask them questions, get input from workers on how to make the operation/company better.

Ask workers for feedback on how they are treated, problems they see in the business. This will make them feel more respected and as part of the team, instead of like slaves.

Hold a monthly class for employees that offer some type of personal development training. This is especially useful if the principles can be applied to the job. However, even if it can't be directly it can benefit the job as well as the employee.

For instance....if employees are better informed about health, nutrition, handling debt, effective parenting, etc it means less stressed out employees which means they are more productive and have a better attitude.

Also, they think highly of the company and appreciate the outreach. The become more loyal and responsible. Everyone will want a job at the company who cares.

The last thing that needs to be mentioned is simple. Managers themselves are faces with not having a clue as to how to encourage, motivate and develop their crew.

Solution: Get training on how to be an effective manager. For goodness sakes, at least read a book or watch YouTube videos on managing people. Stop winging it.

Answer 2

Managers are rewarded when they see their subordinates get promoted. A disadvantage of being a manager is the stress surrounding the job.