Unit 3

1. Unit 3 Chapters 5, 6, 7, 8.

2. 3.4 Outcomes On completion, the student should be able to: 3.4.1 define management; 3.4.2 identify the importance of management skills in areas such as home, school, local community, Government departments and business start-up; 3.4.3 list the characteristics of managers; 3.4.4 explain the basic management skills; 3.4.5 explain the central role of communications in business and management; 3.4.6 identify and explain the main barriers to effective communications; 3.4.7 demonstrate business data in the following written forms: memos, reports, and business letters; draft a visual presentation from given data; 3.4.8 identify the duties of a chairperson and secretary and draft an agenda and minutes of a meeting; 3.4.9 distinguish between the methods of communication; 3.4.10 discuss the importance of general communication skills (HL); 3.4.11 differentiate between enterprise and management (HL); 3.4.12 explain the contribution of both managers and entrepreneurs to business (HL); 3.4.13 discuss the nature of management activities and their linkages(HL).

3. Management • Management is the process of setting objectives and the ability to achieve results through people. An objective is a goal or target to be achieved. Management is a process involving the achievement of goals by working with and through people.

4. characteristics • Decisiveness • Self motivation • Achievement • Self belief • Hard working • Time management

5. Management in action • Home – planning and organising a holiday • School – organising teachers and students timetable • Community – planning a local disco in the GAA • Business – controlling finances • Government – leading a government department

6. Management v’s enterprise Entrepreneur • Sets up the business • Takes all the risk • Comes up with the idea • Short term activities with a long term goal • E.g. Tony Ryan Manager • Runs the business • Not much risk, only his job • Ensures entrepreneurs ideas are carried out • Long term activities, day to day running • E.g. Michael O’Leary

7. Skills • Leadership • Motivation • Communication

8. leadership • The ability to influence and direct people to follow a particular path an achieve particular goals through setting a positive example and motivating workers through delegation and responsibility.

9. Types of leadership – autocratic • Likes control. • Makes all the decisions and doesn’t consult employees. • Uses fear to motivate. • Benefits • Time saved • Things are all done the same way • Problems • Opinions left out • Overload of work on manager • No motivation • High staff turnover

10. Democratic • Delegates tasks • Brainstorms with employees • Trusts employees with their own ideas • Benefits • Best ideas available • Motivation • Intrapreneurship • High staff morale • Problems • Takes too long to make decision • Poor decisions could be made from trying to accommodate too many opinions

11. Laissez Faire • Manager doesn’t interfere with how employees do their work. • Gives goals and leaves it entirely up to them, • Delegates a lot as he trusts his employees. • Uses reasoned arguments to get them to co‐operate • Benefits • High intrapreneurship • Manager has free time • Employees enjoy working • Problems • Problems go unnoticed • Lack of clarity • Employees may make bad decisions

12. Delegation • Important part of leadership. • Giving employees an important task to carry out and giving him all the responsibility of that task. • Manager has more time to deal with important things and employee feels like an important part of the workforce. • E.g. asking the HR manager to completely take care of the interview process as the manager hasn’t got the time to

13. motivation • Involves the manager energising employees and providing them with incentives so that they will work harder for the business. • Manager ants employees to work towards achieving the goals of the company and their own personal goals. • Motivated workers: • Work hard • Improve skills • Enjoy work • Produce excellent results

14. Maslow's hierarchy of needs

15. This states that: • Everything we do is done to satisfy one of these 5 needs. • We are motivated by a lot more then just money. • When one need is satisfied, we move on to the one above it on the pyramid

16. Self Actualisation - Need to reach full potential. More challenging work. • Esteem - need for respect and self respect. Praise or promotions. • Social - friendship and love. Staff parties. • Safety - need for feel safe and secure. Employment contract. • Physiological - essential human needs. Pay, canteen.

17. McGregor’s theory x and theory y • Theory X • Believes employees don’t like work, are all lazy and prefer to be told what to do (takes a pessimistic view). • Motivates by the hard approach (threats and punishments) and the soft approach (promise of more money). • He does not delegate to employees. • Employees resent being treated like this, become un-­co-­operative and will try to get most money for least work.

18. Theory Y: • Believes employees enjoy work and want more responsibility. • Motivates by offering promotions and titles. He praises employees for good work. • He delegates to employees. • This results in happy, co-­operative employees who work hard.

19. Communication • Transfer of information through writing, orally or visually which is received through listening, reading, or watching. • It inolves • SENDER • MESSAGE • RECIVER • MEDIUM • FEEDBACK/REPLY

20. Effective communication: • Clear and concise • Accurate • Timely • Done in the correct medium • Done in the right form • Recorded

21. Internal Communications • Communication between people who are all inside same business. Methods include newsletters, internal phone, e-­mail, intercom and meetings. • Upward- Moves from lower to higher e.g. employees asking management. • Downward- Higher to lower e.g. manager advising employee. • Horizontal -­ Between people of same level e.g. directors meeting

22. External Communications • Between business and other people outside. • Examples are with Banks-­entrepreneur meets manager for loan or with • Customers-­The marketing manager writes back to address a complaint. • Methods include telephone, e-­mail, letter or video-­conferencing.

23. Written, oral, visual Written • Business documents, e-­mail, fax, letter, memo • Advantages: Permanent record, can be re-read and e-mail is very fast. • Disadvantages: Feedback slower than oral, risk of information overload

24. Oral • Conversation, intercom, meeting, telephone, video-­conferencing. • Advantages: Quick with instant response, problems can be explained, personal communication, allows emotion and body language. • Disadvantages: No record, message may come out wrong, receiver may not listen.

25. Visual • Bar chart, pie chart, break-­even chart, pictogram. • Advantages: Good for statistics, makes information clearer. • Disadvantages: Not sufficient alone and needs to be accompanied

26. Bar Chart • Displays information in form of bars. • Good for showing relative size of things. Pie Chart • Fractions of circle are shaded to represent what each item bears to total. • Good way of showing fractions and percentages. Pictograms • Represents information in form of pictures. • Good for showing relative sizes. Line Graph • Shows how something's value changes over time • Value plotted as point. • Points joined by straight line to show trend.

27. Barriers to effective communication • Language • Prejudice • Information overload • Poor listening skills • Trust • Timing • Technology breakdown

28. Choosing a method of communication • Cost • Urgency • Confidentiality • Nature of message • Legality

29. Business letters • Senders name and address • Date. • Name and address of receiver. • RE. • Dear Sir/Madam. • Main Body. • Yours faithfully (if name known)/sincerely • Signature.

30. Reports • Title • Terms of reference • Contents • Introduction • Methods • Body • Recommendations • Summary • Appendices

31. meetings • Adhoc – short notice, new problem • Formal – planned, set procedures • Annual general meeting – once a year • Extraordinary general meeting – emergency, cannot wait for next AGM • Virtual meeting – use of video connection (webcam)

32. memo • To: __________ • From: _________ • Date:______ • RE:______________________________________________________________________________________________________________________________________________________________________________________________________________________________ • Signed: ________ • (position):_______

33. notice

34. minutes

35. agenda

36. Secretary • Notice • Agenda • Venue • Minutes and notes • Liase with chairperson

37. chairperson • Quorum • Agenda • Standing orders • Ensure everyone participates • Voting & casting vote • Summarise

38. Challenges with IT • System breakdowns • Information security • Virus • New technology expenses • Junk mail • Customers not having technology • Payment security

39. Data protection act 1988 Rights for Data Subjects • Get copy of data kept about you. • Have errors corrected • Complain to Data Protection Commissioner. • Receive compensation if you have suffered

40. Responsibilities of Data Controllers • Obtain information fairly and honestly by identifying herself and saying what the information is for. • Keep information safe and secure with password protection and ensure only authorised people have access. • Delete information once no longer needed and not kept ‘just in case’ • Give copy of data to person who asks for it within 40 days and by not charging more than €6.35

41. Functions of Date Protection Commissioner • Keep register of Data Controllers such as public bodies which anyone can see. • Give enforcement notices. • Give information notices. • Investigate complaints and make decision on matter.

42. activities • Planning • Organising • Controlling

43. planning Types of plans • Misssion statements • Strategic plan • Tactical plan • Operational plan • Contingency plan

44. Steps involved in Planning 1. SWOT Analysis This is analysing the situation the business is in • Strengths - Someone the business owns or does well (excellent staff). • Weaknesses - Something the business does badly or lacks (not enough money). • Opportunities - Something in the outside world that the business can avail of (new countries join EU). • Threats - Something outside the businesses which can act prevent it from succeeding (competition)

45. 2. SMART objectives • Specific • Measured • Agreed • Timely

46. benefits • Know the position • Anticipate change • Identify strengths and weaknesses • Forecasts needs • Keep employees focused with goals

47. organising

48. Organisational structures Functional Organisation Structure Splitting the business into different jobs and functions. A person is in charge of each department • Advantages 1. Specialisation - ­Each department concentrates on the same job and becomes expert. 2. Accountability -­ The director of each department is responsible. 3. Clarity -­ Everyone knows who to report to and who is responsible for what. • Disadvantages 1. Isolation -­ People may know and care little about what happens in other departments. 2. Co-­ordination -­ Difficult to get all departments to pull together in same direction

49. Matrix Organisation Structure This combines functional structure and project team structure. It is used when business is involved in major temporary projects. Employees are temporarily removed from normal job and invited to project team and report to team leader. When doing their normal work they report to their normal functional manager • Advantages 1. Motivation -­ Employees feel special and it satisfies their esteem. 2. Better Relationships -­ Team is made up of people from different departments • Disadvantages 1. Two Bosses - ­Employees report to two bosses and may become stressed if they are given conflicting orders. ­2. Increased Cost - Business has to train project manager and there are extra secretarial costs etc.

50. Span of control This is the number of employees that report directly to a manager and who the manager can effectively supervise. It can be: • Wide - he can supervise a lot • Narrow - can only supervise a few at same time Depends on: • Managers experience and ability • Employees experience and ability • Type of work