About Management Management involves the utilization of human and other resources (such as machinery) in a manner that best achieves the firms plans and objectives. According to a recent survey by Shareholder Surveys, shareholders rank good management and long-term vision as the two most important characteristics of a firm.
Levels of Management Top (high-level) management – managers in positions such as president, CEO, CFO and vice-president who make decisions regarding the firms long-run objectives. Middle management – managers who are often responsible for the firms short-term decisions. Supervisory (first-line) management – managers who are usually highly involved with the employees who engage in the day-to-day production process.
Functions of Managers Planning – the preparation of a firm for future business conditions Organizing – the organization of employees and other resources in a manner that is consistent with the firms goal. Leading – the process of providing employees with instructions on how they should complete their tasks. Controlling – the monitoring and evaluation of tasks.
Top Managers: make the strategic (long-term) plan Middle Managers: Organize the employees and other resources to produce Supervisors: Explain each employees tasks & how to perform the tasks Middle Management: Determine whether the production is efficient (based on monitoring the plants output and expenses each month) Top Management: Assess the expenses and sales from producing products every month. Determine whether the new strategic plan is successful. Communicate the plan to middle management and ask middle management to implement the plan. Communicate the organization to supervisors and ask them to implement the production process. Supervisors: Monitor employees to ensure their new assignments properly
Managerial Skills Conceptual skills (analytic skills) – the ability to understand the relationships among the various tasks of a firm. Interpersonal skills (communication skills) – the skills necessary to communicate with customers and employees. Technical skills – skills used to perform specific day-to-day tasks Decision-making skills – skills for using information to determine how the firms resources should be allocated.
Management Styles Managers have to perform many roles in an organization and how they handle various situations will depend on their styles of management. A management style is an overall method of leadership used by a manager. Three main styles: – Autocratic – Democratic – Laissez-faire
Management Styles Autocratic – an autocratic or authoritarian manager makes all the decisions, keeping the information and decision making among the senior management. – the direction of the business will remain constant, and the decisions will be quick and similar, this in turn can project an image of a confident, well managed business. – subordinates may become dependent upon the leaders and supervision may be needed; – this style can decrease motivation and increase staff turnover
Management Styles Democratic (participative) – the manager allows the employees to take part in decision-making: therefore everything is agreed by the majority. (empowerment) – this style can be particularly useful when complex decisions need to be made that require a range of specialist skills; – from the overall business' point of view, job satisfaction and quality of work will improve. – the decision-making process is severely slowed down, and the need of a consensus may avoid taking the 'best' decision for the business.
Management Styles Laissez-faire (free-rein) – the leader delegates much authority to employees; the leader's role is peripheral and staff manage their own areas of the business. – the style brings out the best in highly professional and creative groups of employees. – the leader therefore evades the duties of management and uncoordinated delegation occurs; – this leads to a lack of staff focus and sense of direction, which in turn leads to much dissatisfaction, and a poor company image
Leadership vs. Management In a nutshell, the difference between leadership and management is: Leadership is setting a new direction or vision for a group that they follow, ie: a leader is the spearhead for that new direction; Management controls or directs people/resources in a group according to principles or values that have already been established.