Management and Management Skills

Ms Marshall

Management and Management Skills

Chapters 5 amp 6Management comes up in Q4 (Part 2 of

section three)Part of your ABQ as Management is Unit 3

Ms Marshall

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

Introduction to Management Management is the process of getting

objectives and activities completed efficiently 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

Eg Michael OrsquoLeary of Ryanair

Ms Marshall

Where is Management needed

Ms Marshall

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 Eg 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

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 eg by taking a pay cut themselves when expecting the general public to They must communicate eg with an upcoming referendum they must convince the Irish public to vote a certain way while providing neutral literature

Ms Marshall

Management In BusinessHave to organise work

schedules plan where the company is going control the budget lead by example communicate clearly to motivate staff

Ms Marshall

Characteristics of Managers Decisive ndash analyse issues and implement

effective solution Initiative ndash donrsquot have to be told what to do Good with People ndashget the best out of them Hard worker ndash may have to work long hours

they are responsible Flexible- can change the business with

circumstances Charismatic ndashable to charm people eg to make

them work harder Confident and Inspirational ndash lead by example

Ms Marshall

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 ndash the future direction of the business The manager organises the day to day activities and staff

Ms Marshall

Chapter Six ndash Management Skills

There are three main management skills leading motivating and communicating

Chapter six looks at two of these skills ndash leading and motivating

Ms Marshall

Management Skill - Leadership

What you need to know

1 Leadership Styles

2 Delegation

3 Importance

of Leadership

Ms Marshall

Leadership Style

Autocratic

Democratic

Laissez-Faire

The three leadership styles vary on the basis of 1 Trust in staff 2 Decision

making 3 Persuasion

Ms Marshall

Leadership Style - Autocratic

Explain the term autocratic (authoritarian) leader bull The autocratic leader has very little trust or confidence

in hisher staff bull Heshe is unwilling to delegate power and

responsibility to subordinates bull Heshe makes all decisions and ignores the opinion of

others bull Heshe uses authority to force agreement and may use

intimidation or fearshouting He expects his orders to be obeyed without question

bull This leads to poor motivation lack of cooperation industrial relations problems

Ms Marshall

Evaluation of Autocratic Leader

Advantages Quick decision making Work gets done as the

manager wanted Suits organisations

where discipline is crucial eg army

Useful in crisis situation eg getting the business out of debt

Disadvantages Managers can become

overworked and stressed

Staff become de-motivated and resentful due to lack of training and trust

Industrial relations disputes are more common due to lack of trust and effective communication

Ms Marshall

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

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

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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

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

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

1048696 Details including deadline of the assigned taskproject1048696 The extent of the authority delegated including reporting

requirements to the manager The manager must also ensure that the person to whom the

taskproject has been delegated has the necessary skills and competencies and is provided with the necessary resources to complete the taskproject

The ultimate responsibility for the task project remains with the manager

Ms Marshall

Delegation - Benefits Efficiency 1048696 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 1048696 Taskproject may be completed to a higher standard due to level of

personal accountability provided by delegation Staff Retention amp Morale 1048696 Increased employee motivation from job enrichment and increased

involvement leading to improved staff morale and better work Ensures a supply of future managers 1048696 Higher skilled workforce will provide greater flexibility for manager

and will train them to become managers This ensures a steady supply of managers for the future of the business

Ms Marshall

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

Importance of Leadership Improved Efficiency ndash a good leader gives

clear direction leading to less waste and mistakes

Improved Co-ordination ndash employees believe in the company and are motivated to work harder as a result

Employee Retention ndash lowers cost involved in hiring Wonrsquot lose best staff to competition

Change ndash lead by example and staff will be more willing to accept change

Ms Marshall

Motivation

What you need to know

Definition

MaslowMcGregor

Importance of Motivation

Ms Marshall

2011 Q4 (i) Explain Maslowrsquos 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 motivatortakes precedence

Ms Marshall

Maslowrsquo Hierarchy of NeedsSelf Actualisation

Esteem

Social

Safety

Physiological Basic

Ms Marshall

Maslow In life The need to realise

onersquos full potential The need for status

respect amp 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 perkshellip Good relationships

with colleagues Permanent Solvent

business Wages canteen

Ms Marshall

2011 Q4hellip Illustrate how a manager could motivate workers by applying

Maslowrsquos 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 employmento Providing a grievance procedureo Providing free medical check-upso Sending workers on health and safety courseso Providing a safe working environment eg safety goggles boots

gloves hard-hats high visibility jackets for construction workers

Ms Marshall

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 workerrsquos 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

McGregorrsquos Theory X and Theory Y

Theory X ndash 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 ndash safety needs motivate

Employees will avoid responsibility and are uncooperative

Theory X suits the autocratic manager

Ms Marshall

McGregor - Theory X CharacteristicsImplications of a Theory

X Manager may include1048696 Manager keeps control possible conflict

between management and employees1048696 Little trustemployees less likely to use their

own initiative1048696 No consultation when making decisionslower

productivity and lower quality1048696 Little delegationfewer opportunities for

employee promotions

Ms Marshall

McGregor ndash Theory Y Theory Y ndash 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 amp self actualisation)

Theory Y would suit a democratic style of management and results in hard working motivated employees

Ms Marshall

McGregor ndash 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

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 productivityAdvantages also relevant to

ldquoimportance of motivating staffrdquo

Ms Marshall

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 amp profitability a more motivated staff will work harder and cooperate more

Ms Marshall

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

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 Maslowrsquos Theory of Motivation

(ii) Illustrate how a manager could motivate workers by applying Maslowrsquos Theory in the workplace

Ms Marshall

Recent Exam Questions Higher Level Questions for Chapter Five and Chapter Six 2009 Q1 Illustrate the difference between lsquoenterprisersquo and

lsquomanagementrsquo (10 marks) Q2 (A) (i) Explain the term lsquodelegationrsquo

(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-actualisation means (ii)Name two other human needs he also identified (10 marks)

Ms Marshall

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

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