Unit 7

Management
Styles

• Levels of management
• Functions of managers
• Managerial skills
• Management styles
 About Management
• Management:
A process that involves the utilization of
human and other resources (such as
machinery) in a manner that best
achieves the firm’s plans and objectives.
 About Management
• Management:
Management consists of the interlocking
functions of creating corporate policy and
organizing, planning, controlling, and
directing an organization's resources in
order to achieve the objectives of that
policy.
 Levels of Management
• Top (high-level) management

– Managers in positions such as president,

CEO, CFO and vice-president who make
decisions regarding the firm’s long-run
objectives.
 Levels of Management
• Middle management
– managers who are often responsible
for the firm’s 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.
 Comparison of Responsibilities
Among 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 firm’s goal.
 Functions of Managers

• Leading
– the process of providing employees with
instructions on how they should complete their
tasks.

• Controlling
– the monitoring and evaluation of tasks.
 Top Managers: Top Management: Assess the
make the strategic (long-term) plan expenses and sales from producing
products every month. Determine
whether the new strategic plan is
Communicate the plan to
successful.
middle management and
ask middle management
to implement the plan.

Middle Managers: Middle Management: Determine

Organize the employees and other whether the production is efficient
resources to produce (based on monitoring the plant’s
output and expenses each month)
Communicate the
organization to supervisors
and ask them to implement
the production process.

Supervisors: Supervisors: Monitor employees to

Explain each employee’s tasks & how to ensure their new assignments
perform the tasks 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.
 Managerial Skills
• Technical skills
– skills used to perform specific day-to-day tasks

• Decision-making skills
– skills for using information to determine how the
firm’s 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. It is the
manner and approach of providing
direction, implementing plans and
motivating people.
 There are five distinct
management styles.

Task Employee
Orientated Orientated
 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
 Persuasive
• Very similar to the autocratic management
style (follows the same principles)
• Managers endeavour to persuade
employees the decisions they have made
are right
 Consultative
• Managers consult employees
• Management makes all final decisions
• Understands the importance of positive
relationships with employees
 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.
 Laissez-faire
– 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.
 13 Fatal Management Errors
• Concentrate on problems rather than objectives
• Be a buddy, not a boss
• Fail to set standards
• Fail to train your people
• Condone incompetence
• Recognize only top performers
• Try to manipulate people
 13 Fatal Management Errors
• Refuse to accept personal accountability
• Fail to develop people
• Try to control results instead of influencing
thinking
• Join the wrong crowd
• Manage everyone the same way
• Forget the importance of profit
 Scenario 1
Janet has recently joined a web design organisation
as a manager, leading a team of 20 staff. The
majority of the workers in her team have been with
the organisation for over 6 years. Labour turnover
is very low within the team and within the
organisation as a whole. Employees regularly
attend training courses to update their skills and
are always keen to take on new challenges and
responsibilities. Which management style would
be most appropriate for Janet in her new role?
 Scenario 2
James has been drafted in to the Reading factory of a large
textiles firm. Although the factory has a number of team
leaders and supervisors, the majority of workers are
unskilled and relatively young. Productivity and quality have
fallen in recent months and the senior managers of the
organisation are considering closing down the factory and
moving operations abroad where labour is less expensive.
James has been given three months to make significant
improvements to the Reading plant before they make their
final decision. He has to improve quality and productivity
and he has to do it fast. What management style should
he adopt?