Chapter 5 – Effective Management

Chapter 5 – Effective Management Key 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 outcomes SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 1. Planning 2. Organising 3. Leading 4. Controlling SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: Planning Planning 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: Levels of Planning: Activity 5.2 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 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: SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 2. Organising Organising 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 2. Organising as 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 Authority is 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 3. Leading leading 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 3. Leading Activity 5.3 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 3. Leading Sources of leadership: Power and influence are a focal point 1. 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 3. Leadership Activity 5.3 (as a class) Activity 5.4 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 4. Controlling is 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 objective For example absent days Behaviour Standard to work 2. Measuring performance is done through observation, establishing quantitative and qualitative measures Beanchmarks SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 4. Controlling is 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 variations positive or negative 4. Making changes where necessary to ensure the objectives established are achieved SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Key roles of Management: 4. Controlling Types of controls Financial Controls budgeting Establishing performance standards set during planning process Time Controls relate to deadlines or time constraints Cost Controls employee performance, absences, OH&S issues, wastage SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles Read: Contrast of two styles – there is no one right way to manage people (Page 105) SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles Autocratic Management Style Is often refered to as the CLASSICAL Management Style SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Autocratic Management Style Characteristics 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles Autocratic Management Style Advantages include: Decision making is quick Decisions are made by experienced managers Communication is direct Employees roles are define and monitored Importance on Production and Efficiency Suits high risk / difficult decisions SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles Autocratic Management Style Disadvantages include: A quick decision is not always the best discourages teamwork and employee opinions Does not allow feedback or open communication Low motivation and job satisfaction of staff resulting in high staff turnover Very task focused, little regard for workers as people Creates feeling of unease and being kept in the dark. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles The 5 manage styles 2. Persuasive Management Style SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 2. Persuasive Management Style A 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 2. Persuasive Management Style 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 2. Persuasive Management Style 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 2. Persuasive Management Style 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 2. Persuasive Management Style 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 3. Consultative Management Style SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 3. Consultative Management Style 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 3. Consultative Management Style 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

Chapter 5 – Effective Management Management Styles 3. Consultative Management Style 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

Chapter 5 – Effective Management Management Styles 4. Participative Management Style SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 4. Participative Management Style Decision making is performed as a team with management and staff working together SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 4. Participative Management Style 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 4. 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 4. Participative Management Style Advantages: - 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 4. Participative Management Style Disadvantages: - 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 5. Laissez-faire Management Style . SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles The 5 manage styles 5. Laissez-faire Management Style 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 5. Laissez-faire Management Style Advantages: - 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management Styles 5. Laissez-faire Management Style Disadvantages: - 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Situational 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. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Situational or Contingency Management Approaches 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, valuesor 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 SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management Management 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 skills good interpersonal skills good problem solving skills be a good decision maker be able to delegate and negotiate. SCSC Year 12 Business Management . Weebly . com

Chapter 5 – Effective Management