This slide presentation is for A level students taking the Cambridge business studies examination.

1. Management & Leadership People in Organizations

2. Objectives After viewing this series of slides, students should be able to: define the concept of management understand the main functions of a manager Understand the role of a manager. Explain the importance of good management to the success of a business Analyse the differences between McGregor’s Theory X and Theory Y Explain the different leadership styles and emotional intelligence.

3. Management Definition Management is defined as a process of attaining goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. A manager is responsible for setting objectives, organizing resources and motivating staff so that the organizational goals are achieved.

4. The functions of management Functions: Planning and setting objectives Organizing resources Directing and motivating staff Coordinating activities Controlling and measuring performance

5. Planning Planning is a management function concerned with defining goals, objectives, and strategies and resources use needed to attain the organizational goals. Planning is a function which is the largely the responsibility of top managers. They set the strategic objectives, which are then translated into tactical plans and objectives by the middle managers.

6. Organizing Organizing is that management function concerned with assigning tasks, grouping tasks into departments and allocating resources to departments. Top managers in performing the function of organizing determine the structure the organization should take to work towards the organization’s objectives.

7. Directing Directing is a management function which involves leadership skills. In performing this function managers influence and motivate employees to achieve the organizational objectives.

8. Coordinating Coordinating is ensuring that all departments in the organization are working towards the same objectives, that is creating a synergy which says that every one is focused in the same direction.

9. Controlling Controlling speaks to the monitoring of employees’ activities and making corrections as the employees deviate. The basic functions of control are: establishing standards Measuring performance against standards Taking corrective actions where appropriate

10. Henry Mintzberg (1973) Management roles

11. Managerial roles Henry Mintzberg identified ten managerial roles managers perform in executing their duties. He divided these ten roles into three groups, namely: Interpersonal roles - pertain to relationship with staff and motivating them. Informational – acting as a source of information, receiving and transmitting information, developing information networks. Decisional roles – making decisions and allocating resources to meet the organizational objectives

12. Interpersonal role

13. Informational role

14. Decisional role

15. Leadership The art of influencing and motivation people towards achieving an common objective

16. Qualities of a good leader desire to succeed and natural self confidence ability to think, to be creative and to encourage other to do the same. Incisive mind

17. Leadership styles Theorists believe that effective leadership depends on the way in which people are lead. There are different ways of leadership or leadership styles: Autocratic Democratic Paternalistic Laissez-faire

18. Leadership styles Autocratic leadership – keeps all decision-making at the centre of the organization Democratic leadership – allow workforce participation in the decision-making process. Paternalistic leadership – the managers knows what is best for the organization Laissez-faire leadership – decision-making is left to the workforce.

19. Autocratic leaders Main features Drawbacks Leader take all decisions Gives little information to staff Supervise workers closely One-way communication Demotivates staff Decisions do not benefit from staff

20. Democratic leadership style Main features Drawbacks Participation encourage Two-way communication, which allows feedback Consultation with staff can be time consuming Some issues too sensitive for staff involvement

21. Paternalistic Main features Drawbacks Managers do what they think is best for workers Managers want workers to enjoy their jobs Likelihood of managers emphasizing ‘ I know best’ and not allowing for employee initiative.

22. Laissez-faire leadership style Main features Drawbacks Managers delegate all authority and decision-making powers Not all workers can perform on their own initiative Lack of feedback can lead to demotivation

23. Leadership styles The best leadership style depends on: Attitude and skills of the employees Employee training the nature of the tasks The degree of risk involved The group norms The supervisor’s tolerance for ambiguity The time horizon

24. Douglas McGregor McGregor’s Theory X and Theory Y

25. McGregor’s theory X and Theory Y Theory X managers believe that workers Theory Y manager believe that workers Dislike work and avoid it if they can Avoid responsibility Employee prefer to be directed Employees must be coerced, controlled and threatened Think work is as natural as play Employees will accept responsibility Employee will exercise self-direction and self-control Employees are generally quite creative

26. Daniel Goleman Emotional intelligence

27. Emotional intelligence (EI) The ability of managers to understand their own emotions, and those of the people they work with, to achieve better business performance. Daniel Goleman component of EI : Self-awareness Self-management Social awareness Social skills

28. Components of emotional intelligence Self-awareness - being aware of what one is feeling Self-management – the ability to control disruptive or harmful emotions and balance one’s mood so that stress does not hinder one’s thinking. Social awareness – sensing how others are feeling. Social skills –handing emotions in relationships well and understand the various social situations; using social skills to persuade, negotiate and lead.