Chapter 5 – Effective Management

Chapter 5 – Effective ManagementKey roles of Management:

Management is responsible for:- Determining corporate objectives in line with mission statement

- proactively planning for the future

- predicting and making plans for changes as a result of pressure

- integrating all resources available

- administering and controlling the activities of the organisations

- accounting for the organisations operations and outcomesSCSC Year 12 Business Management . Weebly . com


1. Planning

2. Organising

3. Leading

4. Controlling

SCSC Year 12 Business Management . Weebly . com


1. PlanningPlanning is the formalised process to produce a result in the form of integrated systems of decisions.

Levels of Planning:- Strategic Planning

- Tactical Planning

- Operational Planning



Levels of Planning:

- Strategic Planning (2 – 5 Years)can be define as a formal long term (2-5 yrs) planning process undertaken by

senior management to define its strategic direction and objectives



Levels of Planning:

Strategic planning includes the following:- respond to trends, events, challenges- provide direction towards objectives & targets- plan for the future- concentrate on an idea or vision- create a framework to achieve

advantage- guide management of resources

Tools used in strategic planning include:S.W.O.T. analysis


Chapter 5 – Effective ManagementKey roles of Management:Levels of Planning:

Tactical planning:

- Formal medium term (1-2yrs) planning

- Undertaken by middle management

- Responding to changes internally / externally

- The allocation of resources


Chapter 5 – Effective ManagementKey roles of Management:Levels of Planning:

Operational Planning is:

- The planning of operations for daily, weekly, monthly or yearly basis

- A detailed level of planning that implements strategies to ultimately achieve specific objectives set by the higher level managers



Levels of Planning:

- Activity 5.2



2. Organising- Is the role of management where they are

responsible for coordinating the organisations human and material resources to ensure objectives are achieved

Organising is a multi step process which involves:



2. OrganisingOrganising is a multi step process which involves:

- determining all the work that must be done

- dividing the total workload into activities that can be performed by individuals or groups

- combining tasks in logical or efficient manner

- setting up departments to coordinate the work

- monitoring the effectiveness of the organsiation and making adjustments to it structure when required



2. Organisingas part of planning an authority system must be set up

This system can include:- Line authority

ability to make organisational decisions, issue directions and expect compliance

- Staff Authorityis advisory authority able to provide

advice or recommendations- Functional authority

the right to direct and control special activities that are under the control span of another manager



3. Leadingleading involves influencing others towards

the attainment of organsational objectives

Leaders must:- Motivate others- be good communicators- act as a role model- use power effectively

To be effective leaders need to:- be understanding of those they lead- their personalities- their values- their attitudes and - their emotions



3. Leading

What makes a good leader?- intelligence and knowledge- social maturity- internal motivation and achievement- self confidence- good communicator- interpersonal qualities- take responsibility- make fair and just decisions



3. Leading

Activity 5.3


Chapter 5 – Effective ManagementKey roles of Management:3. LeadingSources of leadership:

Power and influence are a focal point1. Legitimate power

Is power that has been confirmed by the position in the hierarchical structure and accepted

2. Expert Power

Employs skills, knowledge and information which a person has to influence others with

3. Reward Power

involves the ability to reward a person in order to gain compliance to a certain way of thinking

4. Coercive Power

involves the ability to punish others when they do not engage in desired behaviour

5. Referent Power

Means the leader is liked and respected by subordinate, peers and supervisors and gains power this this



3. Leadership

Activity 5.3 (as a class)

Activity 5.4



4. Controllingis directly relates to planning. The controlling process

ensures that plans are being implemented appropriately and alerts managers to any deviations from the plans

4 steps to controlling:

1. Setting a standard, target or objectiveFor example absent days

Behaviour

Standard to work

2. Measuring performance is done through

observation, establishing quantitative and qualitative

measures Beanchmarks



4. Controllingis directly relates to planning. The controlling

process ensures that plans are being implemented appropriately and alerts managers to any deviations from the plans

4 steps to controlling:

3. Identifying and investigating any variationspositive or negative

4. Making changes where necessaryto ensure the objectives established are achieved



4. Controlling

Types of controls

Financial Controlsbudgeting

Establishing performance standardsset during planning process

Time Controlsrelate to deadlines or time constraints

Cost Controlsemployee performance, absences, OH&S issues, wastage


Chapter 5 – Effective ManagementManagement Styles

Is the manner and approach of providing direction, implementing plans and motivating people.

There are distinct differences in management styles.Examples:

- ways managers interact with employees- the degree of task or employee

orientation- manner of communication

Most managers will use a range of styles based on: - the situation

- their personality- the characteristics of their subordinates



Read:Contrast of two styles – there is no one

right way to manage people(Page 105)



The 5 manage styles

1. Autocratic Management Style

2. Persuasive Management Style

3. Consultative Management Style

4. Participative Management Style

5. Laissez-faire Management Style




Is often refered to as the CLASSICAL Management Style


Chapter 5 – Effective Management1. Autocratic Management StyleCharacteristics include:

- Managers have a desire to be in control

- they place great importance on achieving goals & objectives through policy and procedures

- the believe money is the main motivator

- Decision making is centralised and controlled by management

- they place little importance on employee input or contribution

- communication is centralised and downwards




Advantages include:Decision making is quickDecisions are made by experienced

managersCommunication is directEmployees roles are define and

monitoredImportance on Production and EfficiencySuits high risk / difficult decisions




Disadvantages include:A quick decision is not always the bestdiscourages teamwork and employee

opinionsDoes not allow feedback or open

communicationLow motivation and job satisfaction of

staff resulting in high staff turnoverVery task focused, little regard for

workers as peopleCreates feeling of unease and being kept

in the dark.



The 5 manage styles




2. Persuasive Management StyleA persuasive management style is that of a manager who uses their ability to interpret a situation, people’s actions and dialogue, and then strongly urges or convinces them to do a task or achieve objectives the manager’s way.

It is similar to the autocratic style but there are some differences.

The main difference is that once a persuasive manager makes a decision, then they try to convince a subordinate that what was decided by the manager is in the subordinates best interest.




For example, a marketing department manager who has an idea for increasing sales targets will try to convince the rest of the team that only this idea will improve the sales targets.




The characteristics of persuasive management style are:

- It has a centralised system of control and authority.

- Policies and procedures are maintained in detail and enforced by frequent checks.

- Communication is centralised, with a strict top-down or hierarchal chain of command approach to management.




Advantages:

- Decision making is quick an still made by one person.

- Suits high-risk decisions, e.g. closure of factory, redundancy.

- Employees have a clear idea about what they have to achieve.




Disadvantages:

- No input from workers into decision making process; undervalues benefit of teamwork.

- Workers can still feel alienated, as their opinions are not sought.

- Opportunities for employee initiative and commitment overlooked, leading to low levels of motivation and job satisfaction.




Management consults with employees when discussing an issue however the manager ultimately makes the decision

It takes into account the opinions of team members before making a decision.

This style is purely task centered to now taking the people/employees more into account.




Control and Authority, while centralised is more employee-based and less centralised then the autocratic and persuasive styles.

Task achievement is still a driving factor but is now being balanced with an understanding of the importance of the people factor.

Decision making while centralised with the manager, occurs after consultation with employees.

Places value on the importance of the employees contribution to the organisation.

Communication is two way being top/down by management to subordinates and upwards from the subordinates to management when there opinion and feedback is sought. SCSC Year 12 Business Management . Weebly . com



Advantages:- Gain a variety of ideas from the suggestions of employees, which will lead to a better decision making outcome

- Reasonable level of employee involvement

- Act to motivate and increase an employees level of job satisfaction.

Disadvantages:- Employees may not understand the complexity of the problem

- Time consuming if many stakeholders are consulted.

- Employees may still not feel valued if they have provided their ideas but these are overlooked.SCSC Year 12 Business Management . Weebly . com



Decision making is performed as a team with management and staff working together




Participative management style has become very popular because it focuses on the interaction between management and employees. This style keeps employees informed about issues that affect their work, with management and employees sharing decision-making and problem solving task


Chapter 5 – Effective ManagementManagement Styles4. Participative Management Style

- Control and authority is decentralised. Coperate objectives, while determined by senior management are followed by the setting of departmental team and individual objectives so allowing for group ownership of the corparate direction.

- Orientation or focus is towards people. If the employees are satisfied and productive, this will result in an increase in activity.

- There is a belief that motivated of employee relates to an understanding of how to satisfy the employee broad range of needs.



4. Participative Management StyleAdvantages:

- OPEN COMMUNCATION WITHIN THE ORGANISATION

- CREATES GOOD EMPLOYEE RELATIONS

- MANAGER DEMONSTRATES TRUST AND FAITH IN THE ABILITY OF EMPLOYEES

- SHARED VISION AND DIRECTION BETWEEN MANAGEMENT AND EMPLOYEES TOWARDS ACHIEVEMENT OF THE ORGANISATION



4. Participative Management StyleDisadvantages:

- CAN GIVE RISE TO CONFLICT BETWEEN EMPLOYEES WHO QUESTION THE ABILITY OF THEIR CO-WORKERS

- IT CAN BE TIME-COMSUMING SEEKING THE INVOLVEMENT OF GROUPS OR TEAMS WHEN MAKING DECISION

- CONFLICT MAY ARISE WHEN THERE ARE VARYING VIEWPOINTS




.



The 5 manage styles


The laissez-fair management style is a style that leaves the majority of decisions making and

running of the business operation to the employees.

The laissez-fair management style can also be called ‘free-rein’ or ‘hands free’ style. It is a style in witch management provides little direction to

employees.



5. Laissez-faire Management StyleAdvantages:

- High employee control - Employees can set own tasks with little involvement from management.

- Strong motivation, empowerment and job satisfaction for employees.

- Good environment for encouraging creativity and innovation.

- Conductive to team work.

- It’s a flatter structure that encouragers good communication.



5. Laissez-faire Management StyleDisadvantages:

- Lack of guidance can cause some employees to have a sense of loss of direction.

- Some employees may feel unsettled by the freedom or of this style.

- Does not suet employees who are unskilled or need structure and routine tasks.


Chapter 5 – Effective ManagementSituational or Contingency Management Approaches

Using this approach Managers must take into account all aspects of the internal and external situations and act on those aspects that are important.

Managers using this approach demonstrate “Flexibility” in handling situations.



This approach works by adopting the most appropriate management style for the given situation.

The following variables are considered:- the managers personality, characteristics or qualities, values or skills- the subordinates characteristics, level of knowledge, skills or experience- the tasks that need to be completed- The constraints, such as time, money,

resources- the corporate culture of the organisation

and relationships between management staff



This approach works by adopting the most appropriate management style for the given situation.

The following variables are considered:

- the managers personality, characteristics or qualities, values or skills

- the subordinates characteristics, level of knowledge, skills or experience

- the tasks that need to be completed

- The constraints, such as time, money, resources

- the corporate culture of the organisation and relationships between management staff


Chapter 5 – Effective ManagementManagement Skills

Skills refer to the ability to do something well, gained through training and experience in order to achieve the required work

A close relationship exists between manager styles and their skills

An effective participative style manager may have:

good communication skillsgood interpersonal skillsgood problem solving skillsbe a good decision makerbe able to delegate and negotiate.



No matter what style or level of manager they are, all managers will need to possess a range of skills such as:

- Communication- Delegation- Decision making and problem solving- Negotiation- Team leadership- Time management- Stress management- Analytical- Technical- Emotional intelligence



- Communication- A process of creating and exchanging information

between people that produces the required response

- Communication skills are essential, as managers must be able to clarfiy with employees the tasks that are required to be completed

- 2 kinds of communication- Interpersonal communication- Organisational Communication



- Communication

- Forms of communication

- Reading

- Verbal written – expressing ideas, thoughts on a document

- Verbal oral – verbally expressing and talking to people



- Delegation- Is the process where formal authority is passed down an

organisational hierarchy.

- 5 steps in delegation

- Analysis- Appointment- Breifing- Control- Appraisal



- Delegation

- Benefits of delegation:- Assists with a smooth flow of production and work

processes.

- It acts as a time saver, freeing management to be involved in other activities

- It provides an opportunity for skills training personal development and job satisfaction.



- Decision making and problem solving

- A multistep approach where by a selection is made between a range of different alternatives

- Systematic Approach - Steps

1. Identify the problem and define the objectives

2. Gather the necessary information to establish the cause of the problem

3. Develop alternative solutions

4. Analyse the alternatives

5. Choose an alternative and implement it

6. Evaluate the implementation.



- Negotiation- The process by which one party seeks to obtain

something it wants from another party, eg an employee seeking a pay rise from employer

- Core skills in negotiation

1. Define a range of objectives

2. Explore the possibilities

3. Prepare well

4. Listen and question

5. Prioritise clearly



- Negotiation

- Steps to successful negotiation:

1. Preparation

2. Establish a positive working atmosphere

3. Make a proposal

4. Responding to the proposal

5. Establishing positions

6. Record information and confirm understanding



- Team leadership

- It is important team leadership skills are exhibited by the team leader to ensure the success of the team in achieving their objectives

- Team leadership skills include:- Work as a coach or mentor to team members- To encourage- To build a cohesive and trusting group- To facilitate resolution to problems- To manage team dynamics and relationships



- Time management

- Involves the process of managing the things we do in the time we have available

- 3 types of work time

1. Boss determined

2. Organisation determined

3. Self determined



- Time management

- Systematic approach to time management

1. Make a list of objectives

2. Rank the objectives

3. List activities needed to achieve the objectives

4. Assign priorities to each activity

5. Schedule activities according to priorities



- Stress management- Skills required by a manager to reduce the level of

stress in both themselves and the subordinates

- Major factors that contribute to stress:- Workload- Coping with change- Interpersonal conflict- Poor management practices- Shift work and fatigue- Lack of communication- Bullying etc- Technology- Lack of training



- Analytical Skills- A manager needs to have analytical skills to be able to

identify and solve complex problems, make sense of them and make decisions to correct any issues.

- Requires:- Logical thinking- Draw on expertise- Investigation



- Technical Skills- Include the knowledge of and proficiency in a certain

specific field.

- The higher a manager progresses up the hierarchical ladder the less important the daily technical skills become

- However senior management use their technical skills when conceptualising and analysing key organisational plans and decisions.



- Emotional intelligence

- Refers to an individuals possession of personal qualities and attributes of self-awareness, self regulation, motivation, empathy and social skills.


Chapter 5 – Effective ManagementEffective Management

how do we know if it is occurring?

‘The most effective measure of leadership is the performance of the team in your absence.’ anonymous


Chapter 5 – Effective Management

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