Chapter 12

Management

Managers get things done - not by doing all jobs themselves, but by working with and
delegating to other people.

Fayol: the functions of management

Henri Fayol (1841-1925) was one of the first management theorists. He defined five
functions of management and these are still seen as relevant to businesses and other
organisations today.

•Planning

All managers need to think ahead. Senior management will establish overall objectives and
these will be translated into tactical objectives for less senior managers. The planning
needed to put these objectives into effect is also important.

•Organising resources to meet objectives

Employees need to be recruited carefully and encouraged, via delegation, to take some
authority and accept some accountability. Senior managers should ensure that the structure
of the business allows for a clear division of tasks.

• Commanding, directing and motivating employees

This means guiding, leading and overseeing employees to ensure that business objectives
are being met. Employee development will help motivate employees to use all of their
abilities at work. Managers should be capable of motivating a team and encouraging
employees to show initiative.

•Coordinating activities

As businesses grow there is a greater need to ensure consistency and coordination between
different parts of the business. The goals of each branch, division, region and employee
must be welded together to achieve a common sense of purpose.

•Controlling and measuring performance against targets

Establishing clear objectives for the business, and for each section within it, establishes
targets for all groups, divisions and individuals. It is management's responsibility to appraise
performance against targets and to take action if underperformance occurs. It is just as
important to provide positive feedback when things go right.
Mintzberg management role

The roles he identified are, he believed, common to the work of all managers. They are
divided into three groups.

•Interpersonal roles - dealing with and motivating employees at all levels of the
organisation.

•Informational roles - acting as a source, receiver and transmitter of information.

•Decisional roles-taking decisions and allocating resources to meet the organisation's

objectives.
Differences between Fayol and Mintzberg's approaches

The differences between the approaches of Fayol and Mintzberg should not be
exaggerated. Mintzberg did not strongly disagree with Fayol. He just thought that the
simple division of managerial tasks into five functions was too closed and limiting. He
considered that the role of managers was much more open ended. In particular he
stressed the interpersonal nature of many of the tasks that the managers he
observed were performing. Mintzberg believed that he had demonstrated, through
his systematic framework, that management is much more than the five functions. It
must include interpersonal relationships and open-ended discussions with workers
and customers.

Despite their apparent differences, these two management thinkers have provided a
useful foundation for analysing what it is that managers must do to be effective.

The contribution of managers to business performance

The key indicators that managers are having a positive impact on business
performance are:

•the business regularly meets its objectives

•high levels of customer satisfaction

•high employee motivation levels and low labour turnover

•a respected brand image

•high regard from external stakeholders such as and social pressure groups

•excellent communication both within the business and with external stakeholders
 Management styles

Autocratic management

Autocratic managers take decisions on their own, with no discussion. They set
business objectives, issue instructions to workers and check to ensure their
instructions are carried out. Workers can become so used to this style that they are
dependent on managers for all guidance and will not show initiative. Motivation
levels are likely to be low, so supervision of workers will be essential. Managers with
this style use one-way communication. They issue instructions but do not encourage
any feedback from the workforce.

Democratic management

Democratic managers encourage discussion with workers before taking decisions, or

may allow workers to take decisions themselves. Communication is two-way.
Workers have opportunities to start and respond to a discussion. Managers using this
approach need good communication skills to be able to explain issues clearly. Full
participation in the decision-making process is encouraged.

This style may lead to better final decisions, as workers have much to contribute and
can offer valuable work experience to help solve problems. Herzberg suggested that
this style of management should improve workers' motivation. Employees are given
some responsibility for the objectives and strategy of the business. This makes most
employees feel more committed to ensuring that the decisions they influenced are
put into effect successfully.

Paternalistic management

The word 'paternalistic' means father-like. Paternalistic

managers listen, explain issues and consult with workers, but do not allow them to
take decisions. The paternalistic manager decides what is best for the business and
the workforce, but delegation of decision-making is unlikely. These managers are less
concerned with Herzberg's motivators than with satisfying the safety and security
needs of the workers (Maslow). Therefore, this approach is not democratic and, as in
some families, is more autocratic than it might at first appear.

This style could be suitable in a business with unskilled, untrained or newly

appointed workers. It may lead to the demotivation of more experienced workers
who would prefer to be given responsibility for decision-making and opportunities
for participation.
Laissez-faire management

The term 'laissez-faire' means 'let them do it'. Laissez-

faire management allows workers to carry out tasks and take decisions themselves
within very broad limits. This is an extreme version of democratic management.
There is very little input from management into the work to be undertaken by
subordinates.
This style could be particularly effective in the case of research or design teams.
These experts often work best when they are not tightly supervised and when they
are given freedom to work on an original project.
McGregor's Theory x and theory y

Theory X: the view that some managers believe that employees are lazy, fear-
motivated and in need of constant direction.

Theory Y: the view that some managers believe employees are internally motivated,
enjoy their work and are prepared to take on additional responsibilities.

Theory X managers, according to McGregor, view their workers as lazy and disliking
work. These managers think workers are unprepared to accept responsibility and
need to be controlled and made to work. Clearly, managers with this view will be
likely to adopt an autocratic style of leadership.

On the other hand, McGregor considered that managers who hold Theory Y views
believe that workers enjoy work. These managers think workers find work as natural
as rest or play. They think workers are prepared to accept responsibility, be creative
and take an active part in contributing ideas and solutions to work-related problems.

It is important to note that McGregor did not suggest that there were two types of
workers, X and Y. The X and Y refer to different attitudes of management towards
workers. In most managers will have views somewhere between these two
extremes.

Theory X way, there will be control, close supervision and no delegation of authority.
The workers, as a result of this approach, will certainly not enjoy their work and may
indeed try to avoid it and fail to contribute in any meaningful way. Therefore, they
will become like Theory X because of the way they are treated.
The best management style depends on many factors

•The training and experience of the workforce and the degree of responsibility that
they are prepared to accept.

•The amount of time available for consultation and participation.

•The attitude of managers, or the management culture of the business. This is

influenced by the personality and business background of the managers, such as
whether they have always worked in an autocratically run organisation.

•The importance of the issues under consideration. Different styles may be used in
the same business in different situations. If the business is at risk, resulting way. from
poor or slow decisions, then it is more likely that management will make decisions in
an autocratic