Unit 2

• Functions of management are planning, organising, directing, controlling
• Planning requires management to look into the future and involves a variety of tasks
• Organising means assembling resources to carry out the planning process
• Directing allows management to influence and oversee behaviour
• Controlling is the comparison of objectives and performance and determining corrective or preventive action
• Interpersonal management = managing through other people
• Informational management = processing information
• Decisional management = using information to make decisions
• Blake Mouton Grid = Task focused v employee focused
• The Tannenbaum-Schmidt continuum considers the use of authority used by the manager and the freedom available for subordinates
• Autocratic = The boss issues orders and instructions
• Democratic = Leader delegates a great deal and encourages decentralisation
• Laissez-faire = “Leave to do” - Leader has minimal input and employees are empowered
• Situational = There is an argument that no single style is the best
• Decision making process: Setting objectives, Gathering information, Selecting option, Implementing decision, Reviewing
• Programmed decisions = Deal with problems that are familiar
• Non-programmed decisions = Deal with situations that are unstructured and require a unique solution
• Strategic decisions = Long-term, Involve a major commitment of resources, Difficult to reverse
• Tactical decisions = Focus on the short-term, Taken more regularly and involve fewer resources
• Scientific decision making = A manager gathers data and analyses it before making a decision
• Limitations of scientific decision making = availability of data, Reliability of data
• Intuitive decision making = Managers rely on instinct as to whether to make a particular decision
• Expected value = (probability 1 x outcome 1) + (probability 2 x outcome 2)
• Net gain = Expected value - Initial cost
• Stakeholders are Individuals or groups who have an interest in an organisation’s operation and performance
• Primary stakeholders = Affected by a particular decision, such as to increase production
• Secondary stakeholders = Do not have direct relationships but are affected by, or can influence, its actions
• Internal stakeholders are considered to be part of the business
• External stakeholders = Exist outside the business
• Four categories of stakeholders = Key players, Keep satisfied, Keep informed, Minimal effort
• Influences with stakeholders: Business objectives, Leadership styles, Size of business, Market conditions, Power of stakeholders, Government policies
• The key players are those that have both high levels of interest and power