TIME MANAGEMENT

Time is probably the most valuable asset available to people
and organizations. Understanding how to manage
one’s time can contribute mightily to the success of personal
and professional lives. However, as with any other
asset, it may be wasted if it’s not valued.
Unfortunately, it is human nature to waste time. It is
true that some people naturally have good time-management
skills, having developed good techniques for managing
themselves and their time. However, others have
developed poor habits related to time. Needless to say,
most people do not like to proclaim or admit these kinds
of weaknesses.
Wasted time cannot be replaced. With increasing
demands both in the workplace and at home, a great need
exists for time to become more respected, valued, and balanced.
DEFINITION OF TIME
MANAGEMENT
Time management may be defined as the discovery and
application of the most efficient method(s) of completing
assignments of any length in the optimum time and with
the highest quality.
This definition of time management has widespread
applications:
• It applies to the entire spectrum of activities ranging
from (1) simple “do-it-this-morning tasks” assigned
by individuals to themselves or to others (e.g., prepare
several short letters) to (2) large projects developed
for a large organization by many people with
completion contemplated to take a long period of
time (e.g., write a book or open a new branch
office).
• It denotes the best time, which is usually but not
always the shortest time.
• It pertains either to (1) continuing and repetitious
activities (e.g., daily logging-in of shipments
received) or to (2) occasional activities (e.g., selection
of new CEO).
• It includes production of anything, such as manufacture
of a tangible product, provision of a service,
preparation of a written document, development of
a procedure, or arrival at a decision.
• It may include a progress-point assignment (e.g.,
development of plans for the preliminary testing of
a new product) or an end-goal assignment (e.g., a
final marketing plan for a new product).
• Development of plans for time management must
necessarily presume the existence and application of
such desirable personal and work qualities as motivation,
discipline, consideration for others, and the
desire to succeed.
BENEFITS OF GOOD TIME
MANAGEMENT
Many valuable rewards potentially await those willing to
develop good time-management practices. In individual
careers, increased job performance and promotions may
result. In personal lives, individuals may achieve successful
marriages, more family time, less debt, and less stress.
In addition, all types of organizations—business, civic,
school, political, and religious—may receive productive,
competitive, and financial benefits from observance of
good time-management practices.
ACHIEVEMENT OF GOOD TIME
MANAGEMENT
Business firms and other organizations often find it profitable
to take tangible steps to learn the best possible timemanagement
strategies. Some or all of the following
approaches may be considered:
• Call in an outside person or organization that specializes
in time-management consulting and have a
detailed evaluative study conducted of the practices
being followed.
• Develop task forces within the firm or organization
to undertake time-management studies with the
goals of finding, analyzing, and “curing” areas experiencing
wasteful time procedures.
• Have individuals within the firm or organization
engage in educational and research activities related
to time management, such as enrolling in college
courses, checking the Internet, participating in correspondence
courses, and/or attending seminars.

734 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION
Time Management
• Check into the possibility of visiting and studying
other firms noted for their efficient time-management
practices.
ACHIEVING AND APPLYING GOOD
TIME-MANAGEMENT PRINCIPLES
In most organizational and personal activities, three areas
of endeavor play prominent roles in achieving and applying
good time-management principles: (1) development
of suitable personal qualities, (2) development of shortand
long-range goals, and (3) effective use of computers.
Development of Suitable Personal Qualities. Good time
management requires the utmost in organizational ability.
Answers to questions such as the following must be found:
Does the worker have all the necessary tools located conveniently?
Can necessary tools be found without wasting
time? Is provision made for replacement of items that routinely
get used up? Are necessary lists placed in a handy
location? Are lighting, temperature, and noise at proper
levels? If reference materials are needed to perform the
job, are they placed in accessible locations? Where direct
contact with other persons is necessary to obtain information,
can these persons be quickly contacted? Have procedures
been worked out to reduce clutter and confusion? Is
complete clean-up of workstations required daily or at
other appropriate time intervals? Have job duties been
arranged in order of priority?
Planning is necessary to achieve success in time management.
Companies find that production moves more
efficiently when procedures have been carefully worked
out in detail.
Self-discipline and motivation play key roles in this
process. Once a commitment is made to improve, an urge
to proceed efficiently tends to follow, and it is necessary to
apply this urge to the tasks at hand. Motivation grows as
workers begin seeing the results of improved production.
Special efforts need to be paid to procrastination, one
of the deadliest enemies of good time management. People
who suffer from procrastination wait until the last possible
moment to do almost anything. Some find it almost
impossible to take the first step in any project. It can seriously
affect work quality and heighten personal stress. It
may create uninvited feelings of panic and chaos.
Perhaps the best cure for procrastination is imposition
of strict time limits either upon one’s self or upon
others in the chain of command.
Development of good time-management practices
may require inauguration of a program of self-evaluation.
Personal habits may need to be studied carefully to see if
any are faulty and need to be improved.
Development of Short- and Long-Range Goals. Establishing
short- and long-range goals is essential to successful
time management in both one’s personal life and one’s
work life.
When establishing goals, it is necessary to determine
and specify standards that must be achieved within stated
dates and/or times. This involves identifying a series of
specific steps designed to bring one closer and closer to a
stated goal. A good plan must include amounts of time
per day or hour (or other time measurement) that will be
devoted to work geared to achievement of the goal. It
should include estimated time costs that might result
from barriers or obstacles encountered along the way.
Prioritizing, or ranking goals in order of importance,
is necessary in situations where the most important of the
possible goals may not be easily determined. For example,
in designing a new refrigerator, there is often a clash
between the engineers, who wish it designed to operate at
the highest efficiency level, and the marketing people,
who wish it to be given a price tag that will maximize its
salability. Which is given the highest priority—quality or
pricing? A time-management plan may very well be
involved in determining the answer.
Effective Use of Computers. Computers can provide
essential assistance in helping people to manage their time
wisely by tracking details, coordinating schedules, facilitating
communication, and securing and organizing data.
Computers greatly assist those who work with others
at a considerable geographic distance. Written messages
can be transmitted instantly through e-mail. Data can be
researched comparatively quickly through the Internet.
In and of themselves, however, computers do not
provide an automatic solution for time-management
problems. They are most helpful to people who are
already both knowledgeable and organized and therefore
best able to apply the benefits of computers to time management.
In addition to computers, other technology exists
that can contribute to the quality of time-management
plans:
• Faxing is the instantaneous transmission of communications
from one fax (facsimile) machine to
another anywhere in the world.
• Priority mail and overnight-delivery service are
offered by the U.S. Postal Service.
• Telephones, which once provided only voice-transmission
service, now offer voice-mail recording,
beepers, cellular service, and other services.

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 735
Time Value of Money
TIME MANAGEMENT AND LARGE
PROJECTS
Complications inevitably arise with a large project that
involves management and coordination of several organizations
and people who are all contributing to its completion.
A classic example is a construction project involving
a building, dam, bridge, or road.
Suppose, for example, a building is being constructed
for XYZ business firm. Often, in cases like this, the role of
time is very critical. It may be that XYZ firm has found it
necessary to get heavily involved in activities such as selling
or leasing its existing location, making the myriad of
moving arrangements for its employees and their equipment,
and working out contacts with its customers.
XYZ firm very much desires the building under construction
to be completed at the agreed-upon time. If not,
XYZ firm could encounter large expenses in having to put
up with temporary locations and increase the time spent
in making large numbers of alternative arrangements. In
fact, time in such situations is so critical that contracts
often require builders to forfeit fees if the construction is
not completed on schedule.
In cases such as this (and in many other applications),
extensive use may be made of the Program Evaluation and
Review Technique, usually called PERT. Developed in the
1950s, PERT groups various activities graphically. Activities
in the construction of a large building, for example,
might include excavations, various foundation workings,
windows, air conditioning, heating, painting, and so on.
Each activity requires not only estimates of time but also
the costs of labor, material, and money. Some of the activities
are sequential—the first activity must be completed
before the second can begin. Other activities are concurrent—
more than one activity can be worked on at a time.
Many valuable rewards await people and organizations that are willing to develop good time management practices