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The nature of management 2009
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The nature of management 2009


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  • 1. The nature of management Effective management is usually the major factor influencing the success or failure of a business.
  • 2. Definition of management
    • Management is a complex task. Management requires…
    Working with others Getting the most from limited resources Coping with a rapidly changing environment Achieving business goals Balancing time and efficiency
  • 3. The manger
    • Is someone who coordinates the businesses limited resources in order to achieve specific goals.
    Managers Co-ordinate Human resources Physical resources Informational resources Financial resources
  • 4. The Four roles of management Role of management Planning Organising Controlling Leading
  • 5. Managers as planners
    • Planning is the preparation of actions in response to stimulus.
    • Planning can exist at three levels
    • Strategic or long term (greater than 5 years)
    • Medium term or Tactical (3 to 5 years)
    • Short term or Operational (daily or less than a year)
    • Planning is carried out at all levels, the type of planning will depend on the responsibilities of the manager.
  • 6. Managers as organisers
    • Organising is putting actions and resources to work to achieve set goals established at the planning stage.
    • Determining the flow of actions (work)
    • Determining the human resources required
    • Allocating human and capital resources
    • Delegating roles and responsibilities and co-ordinating the resources of the firm
    • Allocating or researching capital requirements
  • 7. Managers as leaders
    • Leading, motivating and directing employees is the most obvious of roles.
    • Yet the most open to interpretation. How do we lead?
    • This touches on ‘Styles of management” as well as theories.
    • From Henri Fayol with Four clear roles to Mintzberg with his interpersonal, informational and decision making roles.
    • “ Management is a difficult and demanding job, the hours are long, interruptions frequent and many conflicting interests have to be dealt with each day.”
  • 8. Managers as controllers
    • Controlling is more a monitoring role, where performance and estimates are matched up and new plans set .
    • Performance estimate are set (goals)
    • Measures are put in place to determine effectiveness (tests checks)
    • Roles and activities are reviewed to ensure goals can be met
  • 9. Management skills
    • All managers use their skills to achieve the objectives of the organisation.
    • ‘ Karpin report 1995’ suggested Australian managers needed more “soft skills or people skills.”
    • 2003 Australian Institute of Management published Management development practice in Australia which confirmed a belief in these so called soft skills.
    • Communication
    • Transfer of information, needs to be clear, and effective. Can be verbal or non-verbal, and will vary from audience to audience.
  • 10. Management skills
    • Delegation
    • Delegation occurs when authority or responsibility is passed from one to another. Delegation is used to increase effective time management. Needs to be controlled by the manager.
    • Negotiation
    • Problem solving and dispute resolution. Encourages many points of view, allows other parties to be involved in decision making. Builds relationships.
    • Teamwork
    • Teams are replacing structures. Many of these teams are self-directed so are flexible and certainly more reactive to change.
  • 11. Planning and levels of responsibility
    • Long term planning (strategic), o-ordinates all resources
    • Medium term planning,
    • Departmental responsibilities
    • Operational planning
    • Day to day planning
    • Rosters, complaints
    Upper Or senior Middle Department level Lower or frontline management
  • 12. Organisational Structure
    • Every business has a formal structure, this structure is represented by an ORGANISATIONAL chart.
    • Businesses evolve (take shape) most businesses evolve along a top-down model modern structures can have many shapes.
    • Types of structures:
    • Vertical specialisation (top-down)
    • Functional specialisation
    • Product specialisation
    • Specialsiation by product and function
  • 13. Structures
    • Vertical top -down
  • 14. Structures
    • Functional
  • 15. Structures
    • Product or division
  • 16. Choice of management styles
    • The choice of the best management style depends on the situation.
    • Each situation depends on the following elements.
    In a sense each management situation is unique and should be treated as unique. The Situation Personality set of values of manager. The task Pressure on The Organisation Time, resources Staff and their set of values
  • 17. Management styles
    • Autocratic
    • Is where the manger tells the staff about the decisions that have been made.
    • The manager;
    • Dictates to staff
    • Staff have very limited input
    • Manager frequently checks on staff.
    • Managers expect compliance and obedience
    • The style is effective in crisis situation,
    • When staff don’t know each other
    • When control is centralised
    • When staff have clear roles and boundaries.
    • Down side;
    • Doesn’t empower staff
    • Staff have no input
    • Increases conflict
    • Develops a ‘us’ and ‘them’ mentality
  • 18. Persuasive management
    • Persuasive
    • Where the manger attempts to sell decisions that have been made.
    • Authority and control is still with the manager
    • Managers attempt to convince staff
    • Communication is one way, employees have no input.
    • Managers gain some trust and support
    • Employees may feel positive to tasks
    • Consultative
    • Where the manger recognises the importance of staff relationships and consults with staff on certain issues.
    • Implies a two way communication
    • Enhances personal relationships and job security
    • Employee centered style
    • Asks for suggestions from staff
    • Employees have some ownership in how things are done
    • Decisions are fine tuned before implementation
  • 19. Management styles
    • Laissez faire
    • Where employees are responsible for workplace operations.
    • Managements has no power or central control.
    • Decentralised structure, employees work in teams
    • Communication is both ways ideas are shared and discussed.
    • Situational
    • This style is chosen by the manager.
  • 20. Analysing management style
    • How can we examine situations and workout styles?
    • Remember we look for
    • Style of management
    • Task
    • skill level of team
    • Environmental constraints
    • As sales manager of a major health food distributor, Bruno is required to review product lines and services offered to retailers. There are five experienced people on his sales team. Recommendations are expected by senior management in 14 days.
    Task Skills of team Environmental constraints Team
  • 21. Response
    • The consultative style would be appropriate. He seeks input from his team before making a final review of product lines . His team is experienced and even though he has 14 days
    • Situation 2
    • Marie is a project manger of a relatively inexperienced design team in a newly formed desk-top publishing department. Their immediate task is to prepare the company’s monthly newsletter.
    • Situation 3.
    • Tony heads a team of highly skilled computer analysts who design software systems for a building and construction industry. He needs to set a series of short term targets for a recently secured contract