2.3 MANAGEMENT

• management


  organization and coordination of activities in order to achieve the defined objectives of the business
• managers


  someone who coordinates and oversees the work of other people so that organisation goals can be accomplished
• what managers do?

  1. planning
  2. organizing
  3. directing
  4. controlling
• functions of management

  • planning
  • organizing resources to meet objectives
  • commanding, directing and motivating employees
  • coordinating activities
  • controlling and measuring performance against targets
• planning

  • all managers need to think ahead
  • senior management will establish overall objectives and these will be translated into tactical objectives for less senior managers
  • planning needed to put these objectives into effect is also important
  • new production or marketing objectives will require the planning and preparation of sufficient resources
• organising resources to meet objectives

  • employees need to be recruited carefully and encourage via delegation to take some authority and accept some accountability
  • senior manager should ensure that the structure of the business allows for a clear division of tasks
  • each functional departments is organized to allow employees to work toward the common objectives.
• commanding, directing and motivating employees

  • guiding, leading and overseeing employees to ensure that business objectives are being met
  • employee development will help motivate employees to use all of their abilities at work
  • managers should be capable of motivating a team and encouraging employees to show initiative
• coordinating activities

  1. as business grow there is a greater need to ensure consistency and coordination between different parts of the business
  2. goals of each branch, division, region and employee must be welded together to achieve a common sense of purpose
  3. practically, this avoids the situation where there is a wasteful duplication of effort
• controlling and measuring performance against targets

  • establishing clear objectives for the business, and for each section within it, establishes targets for all groups, divisions and individuals
  • management responsibilities to appraise performance against targets and to take action if underperformance occurs
  • important to provide positive feedback when things go right
• management roles


  managers have to undertake many different roles which includes activities that can be summed up by 10 roles of management
• what can management roles be divided into

  • interpersonal roles
  • informational roles
  • decisional roles
• interpersonal role

  • figurehead - symbolic head, required to perform duties
  • leader - responsible for motivation and direction of employee
  • liaison - maintains network of outside contacts who provide favors and information
• informational role

  • monitor - receive info, nerve centre internal and external of the organistation
  • disseminator - give information received from outsider or other employees to members of organization
  • spokesperson - give information to outsiders plans, policies, action and results of the organization
• decisional role

  • entrepreneur
  • disturbance handler - responsible for corrective action when organization face disturbances
  • resources allocator
  • negotiator
• contribution of managers to business performance?

  • business regularly meets its objectives
  • high level of customer satisfaction
  • high employee motivation and low labour turnover
  • a respected brand image
  • high regard from external stakeholders such as environmental and social pressure groups
  • excellent communication both within the business and with external stakeholders
• Main managerial positions in a business

  • CEO
  • Director
  • Manager
  • Supervisor
• CEO


  Highest ranking executive in a company, they make major decisions, manage overall operation, manage company resources
• Director


  Elected member of the board of directors of a company, has responsibility for determining and implementing company's policy, then report to CEO
• Manager


  Responsible for people, resources or decision making, can be termed a manager, have authority over other employees below them in the hierarchy, direct, motivate and discipline employees in their department or section
• Supervisor


  Appointed by management to watch over the work of others, usually not a decision making role, have responsibility for leading and controlling a team of people on working towards preset goals
• management styles

  • the way in which managers take decision and communicate with employees
• types of management styles

  • autocratic
  • democratic
  • paternalistic
  • laissez-faire
• autocratic management

  • leader take all decision
  • gives little information to the staff
  • supervises workers closely
  • only one way communication
  • workers only given limited information about the business
• drawbacks of autocratic management

  • demotivates staff who want to contribute and accept responsibility
  • decisions do not benefit from staff input
• possible application for autocratic management

  • defence forces and police where quick decision are needed and the scope for discussion must be limited
  • times of crises where decisive action might be needed to limit damage to the business or danger to others
• democratic management

  • participation are encourage
  • two way communication is used which allow staff to give feedback
  • worker given information about the business to allow full staff involvement
• drawbacks for democratic management

  • consultation with staff can be time consuming
  • on occasion , quick decision making will be required
  • level of involvement - some issue might be too sensitive (job losses) or too secret ( development of new product)
• possible applications of democratic management

  • useful in businesses that expect workers to contribute fully to production and decision making processes, thereby satisfying their higher order needs
  • experienced and flexible workforce will be likely to benefit most from this style
  • situation that demand a new way of thinking or a new solution, then staff input can be valuable
• paternalistic management

  • managers do what they think is best for the workers
  • some consultations might take place, but the final decisions are taken by managers as they are no true participation in decision making
  • managers want their workers to be happy in their jobs
• drawbacks of paternalistic management

  • some workers will be dissatisfied with the apparent attempts to consult, while not having any real power or influence
• possible applications for paternalistic management

  • used by managers who have genuine concern for workers interest but feel that “managers knows best“ in the end
  • workers are young or inexperienced this might be an appropriate style to employ
• laissez-faire management

  • managers delegate virtually all authority and decision making powers
  • very broad criteria or limits might be established for the staff to work within
• drawbacks of laisser-faire management

  • workers may not appreciate the lack of structure and direction in their work - could lead to loss of security
  • lack of feedback - as managers will not be closely monitoring progress - maybe demotivating
• possible application for laisser-faire management

  • when managers are too busy or too lazy to intervene
  • may be appropriate in research institutions where experts are more likely to arrive at solutions and not constrained by narrow rules or management controls
• Theory X and Theory Y

  • one of the most important determinants of management style is the attitude of managers towards theirs workers. used by managers to motivate their employees
  • Theory X focus on importance of supervision : Theory Y focus on rewards and recognition
• significance of Theory X and Theory Y

  • X and Y refer to different attitudes of management towards workers
  • management style for Theory X managers - autocratic, close supervision , no delegation
  • management style for Theory Y managers - democratic, empower and trust workers, delegates to workers
• what is the best style of management?

  • there’s no BEST STYLE MANAGEMENT but all depends on many factors such as training and experience of the workforce , the attitude of the managers , the working culture for the organization and so on