MANAGEMENT FUNCTIONS NOTES

WHAT IS THE ROLE & WORK OF A MANAGER?

ROLE & PURPOSE• MANAGEMENT – THE PROCESS OF ACCOMPLISHING THE GOALS OF A COMPANY THROUGH THE EFFECTIVE USE OF PEOPLE AND OTHER RESOURCES.

• WHAT DO MANAGERS DO?

• PLANNING – ANALYZING INFO, SETTING GOALS, MAKING DECISIONS ABOUT WHAT NEEDS TO BE DONE

• ORGANIZING – IDENTIFYING AND ARRANGING WORK AND RESOURCES TO MEET GOALS

• STAFFING – OBTAINING, PREPARING, AND PAYING EMPLOYEES

• IMPLEMENTING – THE EFFORT TO DIRECT AND LEAD PEOPLE TO ACCOMPLISHING PLANNED WORK

• CONTROLLING – DETERMINES HOW CLOSE THE BUSINESS IS TO MEETING ITS PLANNED GOALS

LEVELS OF MANAGEMENT• Executives - responsible for the success of the

entire company. CEO, CFO, CIO• Spend most of their time planning and controlling

Top Managem

ent • Specialists with responsibilities for specific parts of a business.

• Spend most of their time organizing, staffing, implementing.

Middle Management

• First level of management.• Responsible for the day – to – day of a

small group of employees. • Spend most of their time implementing

the plans of mid and top managementSupervisors

MANAGEMENT STYLESNOTES

Managers have the same task as members of a team! They have to make sure they coordinate everyone’s talents so the organization performs

to it’s greatest potential!!

Managers approach the task of directing a group in different ways based on their management

style!

MANAGEMENT STYLES

Autocratic Paternalistic Democratic Laissez-Faire

LAISSEZ-FAIRE• THIS STYLE IS OFTEN SOMETIMES CALLED THE “HANDS-OFF”

STYLE.

• THE LEADER'S ROLE IS EXTERIOR AND STAFF MANAGE THEIR OWN AREAS OF THE BUSINESS

• THE MANAGER GIVES LITTLE OR NO DIRECTION AND GIVES THE EMPLOYEES AS MUCH FREEDOM AS POSSIBLE.

• THE COMMUNICATION IN THIS STYLE IS HORIZONTAL, MEANING THAT IT IS EQUAL IN BOTH DIRECTIONS, HOWEVER VERY LITTLE COMMUNICATION OCCURS IN COMPARISON WITH OTHER STYLES.

• THE STYLE BRINGS OUT THE BEST IN HIGHLY PROFESSIONAL AND CREATIVE GROUPS OF EMPLOYEES

• IT TAKES A VERY EFFICIENT MANAGER TO BE ABLE TO USE THIS

• CAN BE USEFUL WHEN EMPLOYEES ARE VERY EDUCATED AND EXPERIENCED, SELF-MOTIVATED AND TAKE PRIDE IN THEIR WORK, EMPLOYEES ARE TRUSTWORTHY AND CREATIVE,

All authority is given to

employees and they must learn

to make decisions, resolve

problems, and determine goals

on their own

This leads to a lack of staff focus

and sense of direction, which in turn leads to

much dissatisfaction,

and a poor company image

DEMOCRATIC

• THE MANAGER ALLOWS THE EMPLOYEES TO TAKE PART IN DECISION-MAKING

• THEREFORE EVERYTHING IS AGREED BY THE MAJORITY.

• THE COMMUNICATION IS EXTENSIVE IN BOTH DIRECTIONS (FROM EMPLOYEES TO LEADERS AND VICE-VERSA).

• USEFUL WHEN COMPLEX DECISIONS NEED TO BE MADE THAT REQUIRE A RANGE OF SPECIALIST SKILLS

• MANAGERS PUT TRUST IN THEIR EMPLOYEES AND ENCOURAGE THEM TO MAKE DECISIONS.

• MANAGERS WHO USE A DEMOCRATIC STYLE MUST BE WILLING TO ENCOURAGE THE DEVELOPMENT OF LEADERSHIP SKILLS WITHIN THEIR EMPLOYEES.

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.

PATERNALISTIC• ESSENTIALLY DICTATORIAL (THINK OF A DICTATORSHIP),

• DECISIONS TAKE INTO ACCOUNT THE BEST INTERESTS OF EMPLOYEES AS WELL AS THE BUSINESS.

• THE LEADER EXPLAINS DECISIONS TO EMPLOYEES AND ASSURES THAT THEIR NEEDS ARE MET.

• MANAGER TAKES THE TIME TO EXPLAIN TO EMPLOYEES WHY DECISIONS ARE MADE, AND LOOKS FOR HARMONY WITHIN THE TEAM.

• MANAGERS WHO USE THIS STRATEGY WILL CONSULT WITH EMPLOYEES, BUT IN THE END THE DECISION IS STILL THE MANAGERS TO MAKE.

• THE PATERNALISTIC MANAGER ACTS AS THE HEAD OF A FAMILY WOULD BY TRYING TO MAKE THE BEST DECISIONS FOR THE BUSINESS AND THE EMPLOYEES.

• COMMUNICATION GENERALLY FLOWS DOWNWARD FROM TOP-LEVEL MANAGEMENT TO THE LOWEST-LEVEL EMPLOYEE, BUT FEEDBACK FROM EMPLOYEES TO MANAGERS IS ENCOURAGED TO MAINTAIN EMPLOYEE MORALE.

encourages loyalty from employees

resulting in a lower

employee turnover rate

the employees

can still overly

depend on their leaders

AUTOCRATIC• MANAGER MAKES DECISIONS, WITHOUT MUCH REGARD FOR

EMPLOYEES.

• DECISIONS MADE IN THE BUSINESS REFLECT THE ATTITUDE, OPINION, AND PERSONALITY OF THE MANAGER

• THIS CAN PROJECT AN IMAGE OF A CONFIDENT, WELL MANAGED BUSINESS.

• THIS CAN CAUSE EMPLOYEES TO BECOME OVERLY DEPENDENT UPON THEIR LEADERS, AND MORE SUPERVISION MAY BE NEEDED.

• EMPLOYEES ARE NOT EMPOWERED TO MAKE DECISIONS REGARDING THE OPERATIONS OF THE BUSINESS.

• CAN BE VERY USEFUL WHEN THERE IS LIMITED TIME TO MAKE A DECISION, THE MANAGER’S POWER IS CHALLENGED BY AN EMPLOYEE, THERE ARE NEW, UNTRAINED EMPLOYEES WHO DO NOT KNOW WHICH TASKS TO COMPLETE, OR THERE ARE HIGH-VOLUME PRODUCTION NEEDS ON A DAILY BASIS.

Employees appreciate during

stressful times because the

pressure is taking off of employees

and left up to decision makers.

Morale can be low because

employees feel like their opinions are not important.

LEADERSHIP & ETHICSNOTES

ETHICS – MORALS OR PERSONAL RULES FOR CONDUCT

WHAT ARE BUSINESS ETHICS?

• DEFINITION: RULES ABOUT HOW BUSINESSES AND THEIR EMPLOYEES OUGHT TO BEHAVE.

• CORE VALUES– A SET OF WRITTEN RULES GUIDING EMPLOYEE ACTIONS

• WORDED AS ACCEPTABLE BEHAVIOR NOT PROHIBITED BEHAVIOR

It is lawful

Not intended to harm a few so others can

benefit

Consistent with company

values and policies

If results became

public, the company would not look bad

WHO IS RESPONSIBLE FOR ETHICAL BEHAVIOR?

• EVERYONE IN THE COMPANY BUT… IT STARTS WITH THE CORPORATE EXECUTIVES AND MANAGEMENT.

COMMON CONCERN

• THE MOST COMMON ETHICAL CONCERN IS A CONFLICT OF INTEREST.

• OCCURS WHEN THE ACTION BY A COMPANY OR INDIVIDUAL RESULTS IN AN UNFAIR BENEFIT.

• EXAMPLE: JOSEPH SERVES ON THE MVISD SCHOOL BOARD. JOSEPH ENCOURAGES SCHOOLS TO BUY ALL OFFICE PRODUCTS FROM THE LOCAL OFFICE SUPPLY COMPANY, WHICH HIS BROTHER OWNS.

BASIC MODEL FOR ETHICAL DECISION MAKING

1. Identify the Problem

2. Identify all parties involved

3. Diagnose your options

4. Analyze the cost and benefits of your options

5. Act on your decision

WHAT IS LEADERSHIP BY MANAGEMENT?

•DEFINITION: THE ABILITY TO MOTIVATE LEADERS AND GROUPS TO ACCOMPLISH IMPORTANT GOALS.

Ch

ara

cteri

stic

s of

Eff

ect

ive L

ead

ers • Understanding

• Dependable• Confident• Stable• Cooperative• Honest• Courageous• Good Communicator• Intelligent

HOW CAN LEADERS INFLUENCE OTHERS?

Informal Influence

Power resulting from the personal characteristics of the leader

Formal Influence

Power based on a person’s position within an organization.