Management and Management Skills

1. Management and Management Skills Chapters 5 & 6 Management comes up in Q4 (Part 2 of section three) Part of your ABQ as Management is Unit 3 Ms. Marshall

2. Management and Management Skills • On completion, the student should be able to: • 1 Define management; • 2 Identify the importance of management skills in areas such as home, school, local community, Government departments and business start-up; • 3 List the characteristics of managers; • 4 Explain the basic management skills; • 5 Explain the central role of communications in business and management; • 6 Identify and explain the main barriers to effective communications; • 7 Demonstrate business data in the following written forms: memos, reports, and business letters; draft a visual presentation from given data; • 8 Identify the duties of a chairperson and secretary and draft an agenda and minutes of a meeting; • 9 Distinguish between the methods of communication; • 10 Discuss the importance of general communication skills (HL); • 11 Differentiate between enterprise and management (HL); • 12 Explain the contribution of both managers and entrepreneurs to business (HL); Ms. Marshall

3. Introduction to Management • Management is the process of getting objectivesand activities completedefficiently and effectively with and through other people. Managers must be skilled leaders, motivators and communicators. The key activities of management include planning, organising and controlling. • E.g. Michael O’Leary of Ryanair. Ms. Marshall

4. Where is Management needed? Ms. Marshall

5. Management • In the Home: • Parents are the managers in the home. They must motivate their children to work hard and behave. They plan the family budget and organise family outings. • In the Community: • E.g. the Tidy towns committee must use manpower planning to assess how many volunteers are needed. They must communicate with the locals and motivate them to make a difference. Ms. Marshall

6. Management • In Schools: • The Principal is the manager and must show leadership to the teachers. Effective communication is needed to avoid misunderstandings. Principals often plan timetables and control the school budget. • In Government: • Politicians must provide leadership, e.g. by taking a pay cut themselves when expecting the general public to. They must communicate e.g. with an upcoming referendum they must convince the Irish public to vote a certain way while providing neutral literature. Ms. Marshall

7. Management In Business: Have to organise work schedules, plan where the company is going, control the budget, lead by example, communicate clearly to motivate staff. Ms. Marshall

8. Characteristics of Managers • Decisive – analyse issues and implement effective solution. • Initiative – don’t have to be told what to do. • Good with People –get the best out of them. • Hard worker – may have to work long hours, they are responsible. • Flexible- can change the business with circumstances. • Charismatic –able to charm people, e.g. to make them work harder. • Confident and Inspirational – lead by example. Ms. Marshall

9. Managers vs. Entrepreneurs • Setting Up: Entrepreneurs set up the business, the manager runs the business and answers to the entrepreneur. The manager turns the entrepreneurs ideas into reality. • Risk: Entrepreneurs take financial and personal risk. In some cases they can lose their personal assets if the business fails, whereas the manager risks losing their job. • Future: The entrepreneur thinks of the big picture – the future direction of the business. The manager organises the day to day activities and staff. Ms. Marshall

10. Chapter Six – Management Skills • There are three main management skills; leading, motivating and communicating. • Chapter six looks at two of these skills – leading and motivating. Ms. Marshall

11. Management Skill - Leadership 1. Leadership Styles 3. Importance of Leadership What you need to know 2. Delegation Ms. Marshall

12. Leadership Style Autocratic Laissez-Faire Democratic The three leadership styles vary on the basis of 1. Trust in staff, 2. Decision making ,3. Persuasion. Ms. Marshall

13. Leadership Style - Autocratic • Explain the term autocratic (authoritarian) leader. • • The autocratic leader has very little trust or confidence in his/her staff. • • He/she is unwilling to delegate power and responsibility to subordinates. • • He/she makes all decisions and ignores the opinion of others. • • He/she uses authority to force agreement and may use intimidation or fear/shouting. He expects his orders to be obeyed without question. • • This leads to poor motivation / lack of cooperation / industrial relations problems. Ms. Marshall

14. Evaluation of Autocratic Leader • Advantages • Quick decision making • Work gets done as the manager wanted • Suits organisations where discipline is crucial, e.g. army • Useful in crisis situation e.g. getting the business out of debt. • Disadvantages • Managers can become overworked and stressed. • Staff become de-motivatedand resentful due to lack of training and trust. • Industrial relations disputes are more common due to lack of trust and effective communication. Ms. Marshall

15. Democratic • A democratic leader encourages people to contribute to the decision-making process. Shared solutions to problems are sought, motivation and co-operation levels are very high and there is excellent job satisfaction. • He delegates work and responsibility and trusts employees to carry out their duties. • He persuades employees rather than giving orders Ms. Marshall

16. Evaluation of a Democratic Leader • Advantages • Better quality decisions • Less stress and more time for managers • Staff are more motivated leading to less industrial relations disputes • Staff are encouraged to use their initiative, leading to intrapreneurship. • Disadvantages • Slower decision making • Too many opinions may be taken on board Ms. Marshall

17. Laissez-Faire • The leader allows complete democracy in all matters. • The employee is given a goal and allowed to use their initiative to achieve it. • This style of leading is only appropriate when the employees are highly trustworthy and motivated. Ms. Marshall

18. Evaluation of Laissez-Faire • Advantages • Speedy decisions can be made by staff closest to the issues. • Staff are motivated and challenged. • Intrapreneurship is fostered. • Disadvantages • Staff may not be able for the responsibility, leading to stress. • Poor decision making could result if staff are not up to the challenge. Ms. Marshall

19. Delegation • Delegation involves the assignment of authority to another person, generally from a manager to a subordinate, to undertake a specific work task or project. Successful delegation requires that the manager is clear about: 􀁸 Details including deadline of the assigned task/project 􀁸 The extent of the authority delegated, including reporting requirements to the manager • The manager must also ensure that the person to whom the task/project has been delegated has the necessary skills and competencies, and is provided with the necessary resources to complete the task/project. • The ultimate responsibility for the task /project remains with the manager. Ms. Marshall

20. Delegation - Benefits • Efficiency • 􀁸 More efficient completion of tasks or projects, as manager is not required to do all the work. Managers can prioritise tasks that need their attention, thereby having more time for the completion of these tasks. • Quality • 􀁸 Task/project may be completed to a higher standard due to level of personal accountability provided by delegation. • Staff Retention & Morale • 􀁸 Increased employee motivation from job enrichment and increased involvement, leading to improved staff morale and better work. • Ensures a supply of future managers • 􀁸 Higher skilled workforce will provide greater flexibility for managerand will train them to become managers. This ensures a steady supply of managers for the future of the business. Ms. Marshall

21. Disadvantages of Refusing to Delegate • Heavy workload: the manager will become overburdened and may make costly mistakes. • Deadlines may be missed: without delegating work does not get done as quickly, leading to delays. • Employees are not trained in management skills. The company may have to recruit externally for new managers. • Employees may become demotivated and feel management does not trust them or respect their judgement. This could lead to high labour turnover and absenteeism. Ms. Marshall

22. Importance of Leadership • Improved Efficiency – a good leader gives clear direction, leading to less waste and mistakes. • Improved Co-ordination – employees believe in the company and are motivated to work harder as a result. • Employee Retention – lowers cost involved in hiring. Won’t lose best staff to competition. • Change – lead by example and staff will be more willing to accept change. Ms. Marshall

23. Motivation Definition Importance of Motivation What you need to know Maslow McGregor Ms. Marshall

24. 2011 Q4 • (i) Explain Maslow’s Theory of Motivation. • Motivation is the willingness of people to work. It is what drives, influences and encourages people to work toward a particular goal. • Maslow put forward a theory on motivation based on a hierarchy of needs. • As one need is satisfied then the need immediately above it on the pyramid becomes the dominant motivator/takes precedence. Ms. Marshall

25. Maslow’ Hierarchy of Needs Ms. Marshall

26. Maslow • In life • The need to realise one’s full potential. • The need for status, respect & appreciation by others. • The need for love and friendship. • The need for Security and predictability. • Food /Shelter • In the workplace • Becoming an entrepreneur • Promotion, titles, company car, perks… • Good relationships with colleagues • Permanent, Solvent business. • Wages, canteen. Ms. Marshall

27. 2011 Q4… • Illustrate how a manager could motivate workers by applying Maslow’s Theory in the workplace. • Physical Needs. A manager can motivate his workers by ensuring they receive a fair wage, bonuses, profit-sharing schemes in order that the physical needs for food, clothes, shelter etc. can be met. • Safety Needs. Managers can make employees feel safe and secure by: o Offering long term contracts of employment. o Providing a grievance procedure o Providing free medical check-ups. o Sending workers on health and safety courses. o Providing a safe working environment e.g. safety goggles, boots, gloves, hard-hats, high visibility jackets for construction workers. Ms. Marshall

28. 2011 Q4 • Social Needs. The social needs of employees can be met through offering flexi-time which allows employees to spend more time with their families. Teamwork and social events can help workers form new friendships and relationships. • Esteem Needs. Managers can facilitate a worker’s esteem needs through offering praise and rewards such as a new job title or an attractive office. • Self-Actualisation Needs. Management offering workers a career plan, training and development opportunities, empowerment and promotion to positions of responsibility can meet these needs. Ms. Marshall

29. McGregor’s Theory X and Theory Y • Theory X – Controller Manager • The average human being has a natural in-built dislike for work. • People are lazy and have to be watched closely, controlled and threatened with punishment. • Employees will try to get as much money out of the company as possible – safety needs motivate. • Employees will avoid responsibility and are uncooperative. • Theory X suits the autocratic manager. Ms. Marshall

30. McGregor - Theory X • Characteristics/Implications of a Theory X Manager may include: 􀁸 Manager keeps control/ possible conflict between management and employees. 􀁸 Little trust/employees less likely to use their own initiative. 􀁸 No consultation when making decisions/lower productivity and lower quality 􀁸 Little delegation/fewer opportunities for employee promotions. Ms. Marshall

31. McGregor – Theory Y • Theory Y – Facilitator Manager • The individual enjoys work. They want responsibility and challenging work (Self Actualisation is a motivator). • Strict control over people is not necessary if people are committed to shared objectives. • All members of the organisation can help solve problems. • Employees can be motivated by praise, promotions, titles and delegation. (Esteem needs & self actualisation). • Theory Y would suit a democratic style of managementand results in hard working, motivated employees. Ms. Marshall

32. McGregor – Theory Y • Theory Y managers should: • Provide interesting and challenging work • Provide staff with freedom • Consult regularly with staff • Provide plenty of encouragement and praise. Ms. Marshall

33. Evaluation of McGregor • Disadvantages of Theory X • Reduced Motivation • Less Creativity • Poor reputation • High turnover • Productivity declines • Reduced profitability • Advantages of Theory Y • High Motivation • More Creativity • Better reputation • Lower staff turnover • Positive industrial relations • Increased profitability • Increased productivity Advantages also relevant to “importance of motivating staff” Ms. Marshall

34. Importance of Motivating Staff • Greater Intrapreneurship: more creativity in finding solutions to problems when staff are consulted. • Employee Retention: a more motivated staff leads to lower staff turnover and absenteeism. • Positive industrial relations: staff and management are more likely to come to a solution through negotiation and consultation. This will reduce the likelihood of strikes. • Increased productivity & profitability: a more motivated staff will work harder and cooperate more. Ms. Marshall

35. KEY TERMS • Management • Leadership • Motivation • Autocratic • Democratic • Laissez Faire • Delegation • Self-Actualisation • Esteem Needs • Social Needs • Safety Needs • Physiological Needs • Theory X • Theory Y Ms. Marshall

36. Recent Exam Questions • 2012: Q4 (C) Outline two leadership styles and illustrate how each of these styles may be appropriate to different business situations. (20 marks). • 2011: Q4 (B) Explain Maslow’s Theory of Motivation. • (ii) Illustrate how a manager could motivate workers by applying Maslow’s Theory in the workplace. Ms. Marshall

37. Recent Exam Questions • Higher Level Questions for Chapter Five and Chapter Six. • 2009 • Q1. Illustrate the difference between ‘enterprise’ and ‘management’. (10 marks). • Q2. (A) (i) Explain the term ‘delegation’. (ii)Describe the benefits of delegation for a manager. (20 marks).(B) Analyse the implications for a business of a manager adopting a Theory X approach to managing. (20 marks). • 2007Q3. Maslow identified, in his hierarchial model, self actualization, as a human need. • (i)Self-actualisationmeans: • (ii)Name two other human needs he also identified. (10 marks) Ms. Marshall

38. Recent Exam Questions • 2006 • Q4. Define management. (10 marks). • Q5. (A) Describe one motivational theory commonly used in management. (10 marks). • (B) Discuss three styles of leadership (30 marks). • 2005 • Q6. Evaluate the motivational theories of Maslow and McGregor. (25 marks). Ms. Marshall

39. Recent Exam Questions • 2003 • Q7. Managers are said to take on a wide range of roles in pursuing the objectives of an organisation. They are accountable for the work of others as well as their own work and they work with, and through, other people at al levels in the organisation. • Evaluate, in the above context, the Management Skills of: • Leading • Motivating • (40 marks) • 2002 • Q8. Illustrate the importance of management skills in any one of the following areas: • Home • The local community. • Government Department. • A business start up. Ms. Marshall