Management

Levels of management
Functions of managers
Managerial skills
Management styles

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.

Comparison of Responsibilities
Among Managers

Top Management

Set new plan to expand production & increase

sales.
Communicate those plans to all managers.

Middle & Top Managers

Determine how many new employees to hire.
Determine how to charge lower prices to increase
sales.
Determine how to increase advertising to increase
sales.
Determine how to obtain funds to finance the
expansion.

Comparison of Responsibilities
Among Managers
Supervisory Managers
Provide job assignments to the new employees who
are hired.
Set time schedules for new employees who are
hired.

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
Communicate the plan to
middle management and
ask middle management
to implement the plan.

Middle Managers:
Organize the employees and other
resources to produce
Communicate the
organization to supervisors
and ask them to implement
the production process.
Supervisors:
Explain each employees tasks & how to
perform the tasks

Top Management: Assess the

expenses and sales from producing
products every month. Determine
whether the new strategic plan is
successful.

Middle Management: Determine

whether the production is efficient
(based on monitoring the plants
output and expenses each month)

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

Management Styles
Various management styles can be
employed dependent on the culture of the
business, the nature of the task, the
experience and personalities of the
workforce and the personality and skills of
the leaders.
Managers should exercise a range of
management styles and should deploy
them as appropriate.

Types of Leadership Style

Paternalistic:
Leader acts as a father figure
Paternalistic leader makes decision but
may consult
Believes in the need to support staff