CHAPTER 5 – EFFECTIVE MANAGEMENT

Levels of planning
Strategic planning – long term 3-5 years , senior management, big picture planning eg changing structure

Tactical planning – 1-2 years, middle managers, often department objectives smaller goals eg hr training everyone in 12 months

Operational planning – short term, day to day planning, front line ( lower ) managers eg daily rosters

Key Management roles
P – planning
O – organising
L – leading
C- controlling
Planning
– The process of setting objectives and deciding on the methods to achieve them.
– All plans should be aligned with mission and vision statements
– Planning is carried out by all levels of managers
Process of planning ( SADIM)
1. Set objective
2. Analyse the current situation (SWOT)
3. Develop alternatives – develops a range of plans and assess which one would be most effective
4. Implement the plan
5. Monitor and review results ( through KPI’s)
Organising (POLC)
Organising is the process of coordinating an organisations resources to achieve objectives

eg mangers need to coordinate things like
– employees
– meetings
– finances
– timelines

Organisation process ( DCA)
1. Determining the work activities – The work activities required to achieve management objectives must be determined.

2. Classifying and grouping activities – Similar activities must be grouped together. This improves efficiency by enabling the most appropriate allocation of resources.

3. Assigning work and delegating authority – Deciding who will carry out the task, and who has the responsibility to ensure that the work is done. Effective delegation can improve productivity.

Possible task allocation
– All authority and decision making is given to an experienced team member

– Authority and decision making is spread throughout the team

– Authority is given to less experienced team members with a mentor available

Key Management roles
Planning
Organising
Leading
Controlling
Planning
The process of setting objectives and deciding on the methods to achieve them
Organising
The process of arranging resources and tasks to achieve objectives
Leading
The process of influencing or motivating people to work towards the achievement of the organisations objectives
Controlling
The process of evaluating performance and taking corrective actions to ensure that the set objectives are being achieved
Tasks in organising
– Organising the structure of the organisation

– Establishing staff in productive working environments

– Evaluating available resources and allocating them appropriately to tasks

– Determining what additional resources are needed and how to obtain them

– Delegating tasks and responsibilities

– Coordination of machinery and physical resources to optimise work

Three different types of authority systems designed by managers
– Line – is a command authority represented by the chain of command whereby the manager has the power to make decisions, give directions and to expect compliance from the workers in their span of control.

– Staff authority – Is advisory authority, which takes the form of advice or recommendations.

– Functional authority – is the right to direct or control special activities that are under the manager’s span of control. E.g. the human resources department may create policies guiding an organisation’s compliance with workplace relations.

Leading (POLC)
Involves influencing other towards the attainment of organisational objectives, which requires the manager to motivate, communicate, be a role model, effectively use power and have an understanding of those whom they are leading (personality, values, attitudes, emotions).
Important leadership qualities (3)
Interpersonal skills – the ability to understand and relate to people, including having empathy for others.

Informational skills – a thorough understanding of the business. This will help the manager recognise problems and find solutions. Good ICT (Information and communication technologies) skills are also necessary.

Decision-making skills – involves identifying & defining problems and opportunities and choosing a solution; the ability to make sound decisions quickly and assessing the risks associated with decisions.

Traits or characteristics that make an effective leader
– Intelligence and knowledge that is generally of a higher level than that of their followers. The intelligence does not have to be in the form of academic learning or achievement.

– Social maturity – the ability to understand the people they are going to lead (personalities, values, attitudes and emotions)

– An orientation towards internal motivation (drive) and achievement. To them, the sense of accomplishment is very important. After achieving one goal, they are driven to achieve the next.

– Self-confidence and good communication. Their communication skills are used to promote a feeling of mutual cooperation, motivation and support.

– Interpersonal qualities such as visionary skills, ability to inspire and establish trust while retaining humility in their achievements.

– The ability to take responsibility seriously, use power effectively, be a good role model and make decisions that are fair and just.

Sources of leadership
1. Legitimate power is power that has been confirmed by the position’s placement in the managerial hierarchy and its associated authority or structure of the group or organisation itself, and is accepted by all as correct and without dispute.

2. Expert power employs skills, knowledge and information, which a person of power can wield in order to influence others.

3. Reward power involves the ability to reward a person in order to gain compliance to a certain way of thinking or behaving.

4. Coercive power involves the ability to punish others when they do not engage in desired behaviour.

5. Referent power means the leader is liked and respected by subordinates, peers and supervisors and gains power through this.

Controlling (POLC)
Is the process of evaluating performance, by comparing planned performance to actual performance; appropriately alerting managers to any deviations from plans so corrective action can be taken.
4 steps in the control process
1. Setting a standard, target or objective – E.g. 30 per cent increase in sales for January or zero number of workplace accidents.

2. Measuring performance – is done through observation, establishing quantitative and qualitative measures and benchmarks, and comparing these to the standard established, target, objectives or prior period.

3. Identifying and investigating any deviations – these may be positive (e.g. an increase in sales) or negative (e.g. a decrease in sales).

4. Making changes where necessary to ensure that the objectives established in step 1 are being achieved.

Types of controls
1. Financial controls – Budgets are an example of financial planning. They are important because they provide a benchmark for management to evaluate the financial performance of those responsible for carrying out set plans, and, in turn, control their actions

2. – Establishing performance standards – Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis of measurement. E.g. in the car industry cars would need to be manufactured according to environmental and safety standards relating to emissions and passenger safety.

3. – Time controls – These controls relate to deadlines and time constraints. E.g. an individual car company would need to ensure that it is able to produce a particular number of cars per day in order to meet demand and maintain its profit margin.

4. – Cost controls – These cost controls help ensure standards are met. Employee performance controls focus on behaviour of individuals and groups of employees. These may include staff absences and workplace accidents. E.g. if there are set standards on health and safety within a company, such as a building organisation, then there should be fewer workplace accidents and subsequently less cost to the company in the form of WorkCover premiums and claims,

Management styles
1. Autocratic
2. Persuasive
3. Consultative
4. Participative
5. Laissez- Faire
Autocratic
TELLS staff what decisions have been made.
Management controls everything.
Make decisions = tell staff. Task-orientated.

FEATURES

– High degree of control (centralised)
– Centralised decision making
– Clearly defined employee roles and responsibilities
– Top-down communication: centralised
– Task orientated, focused on getting results
– Shows little trust in employees

Persuasive
SELLs the decision that is made to staff
Make decisions = sell idea to staff. Employees aren’t given chance to share ideas/ give feedback.

FEATURES

– One – way top down
– Management still has full control
– Centralised decision making

Consultative
CONSULT staff before making decisions. Consult staff = make decision.
Manager willing to listen to staff.
Staff input

FEATURES

– Seeks opinions of employees before making decisions
– Centralised control
– Centralised decision-making
– Two-way communication:
Top-down: instructions
Bottom-up: suggestions and feedback
– Some employees encouraged to provide opinions and contribute
– Management still has full control

Participative
JOINS with staff to make a shared decision. Shows trust and faith in staff by giving them responsibility.
Makes organisation more responsive to change. Employee- oriented style.

FEATURES

– Two way
– Joint control by management and staff
– De-centralised, spread between management and staff

Laissez-faire
HANDS-OFF style. Provides little direction to employees.
Staff is empowered to make own objectives, solve own problems and decisions. Employees are highly educated/skilled.

FEATURES

– Two way – bottom up
– Often unclear of who has control
– De-centralised

Management skills
– Communication
– Delegation
– Decision making and problem solving
– Negotiation
– Team leadership
– Time management
– Stress management
– Analytical
– Technical
– Emotional intelligence.
ADVANTAGES of an Autocratic Management Style
– Problem solving and decision- making is quick as discussion does not take place – ideal for emergencies, time constraints or high stress situations

– Direct and clear lines of communication from upper to lower levels

– Workers’ roles are clearly set out allowing accountability and ease of monitoring

-Employees can focus on work.
Appropriate when staff are lower skilled.

DISADVANTAGES of an Autocratic Management Style
-Doesn’t allow open communication and feedback.

– Low motivation
Too task-focused, doesn’t take into account staff needs.

– Poor employee to employer relations, resulting in poor morale / higher staff turn over and staff absenteeism

– Difficulty in establishing a
positive culture

– Ideas and skills of employees
are not utilised – alienates / holds back highly skilled staff

ADVANTAGES of an Persuasive Management Style
– Decisions are quick and are made by one person.

– Clear guidelines on staff’s expectations. Effective in time constraints, high risk, difficult decision.

– Employees are informed of reasons for decisions.

– Employees are more inclined to
accept decisions such as employment agreements as they are persuaded of its benefits

-Employees are more trusting of management, and thus more positive towards the organisation

DISADVANTAGES of an Persuasive Management Style
– No input from workers, undervalues benefit of teamwork.

-Workers opinions and feelings not being considered.

-Low levels of motivation may open the possibility for resistance to decisions

ADVANTAGES of an Consultative Management Style
– Gain a variety of ideas from the suggestions of employees which will lead to a better decision making outcome

– Promotes shared sense of goal achievement

– Employees are more motivated because they are listened too – increase of employees level of job satisfaction

– helps organisations identify talented employees

DISADVANTAGES of an Consultative Management Style
– Employees need to be trained in consultative process

– Can encourage time wasting – as it is time consuming if many stakeholders and employees are consulted

– Employees may still not feel values if they have provided their ideas, but these are overlooked

ADVANTAGES of a Participative Management Style
– Manger demonstrates trust and faith in the ability of employees

– Employees feel a sense of ownership and empowerment as they are now decision makers

– Creates good employee relations and job satisfaction

– Promotes team work and synergy

DISADVANTAGES of a Participative Management Style
– Can cause conflict between employees

– Lack of contribution by all employees, as some would rather not be involved in decision making or their ideas are not implemented

– Can be time consuming seeking the involvement of groups or teams

– Conflict may arise when there are varying viewpoints

ADVANTAGES of a Laissez- faire Management Style
– High employee control, as set own tasks

– Strong motivation, empowerment and job satisfaction for employees

– Suits project based tasks when staff are highly skilled

– Good environment for encouraging creativity and teamwork

– Decentralised and flatter structure encourages good communication, as ideas are openly discussed

DISADVANTAGES of a Laissez- faire Management Style
– Lack of guidance can cause some employees to have a sense of loss of direction

– Does not suit employees who are unskilled or need structure and routine tasks

– Some employees may feel unsettled by the freedom of this style

Relevant skills for an Autocratic management style
– Delegation – delegates tasks for workers to be completed under strict instructions

– Technical – manager must be knowledgeable in specific field to be able to run business effectively and make appropriate decisions

Relevant skills for a Persuasive management style
Communication -manager needs to be able to communicate decisions made in a way that employees understand

Analytical – manager needs to have specific skills in order to solve complex problems

Relevant skills for a Consultative management style
Communication – manager and employees need to communicate to get feedback

Negotiation – managers and employees need to negotiate proposed ideas

Relevant skills for a Participative management style
Joint decision making – work together to make decisions

Emotional intelligence – manager can identify high level of skill amongst their employees when working together in making decisions

Relevant skills for a Laissez – faire management style
Delegation – need to delegate tasks to employes

Time management – manager needs to set deadlines and work under pressure and monitor how long tasks are taking

Effective Management – STRATEGIES ( CMS UP)
You should be able to tell if a manager is being effective if:

1. Convey vision – communicate clear vision
2. Set example – show behaviours that reflect values and standards that are desired in workplace
3. Mentor – provide direction and guidance
4. Promote creativity – encourages employees to be creative
5. Be a story teller – tell stories of success
6. Offer feedback – tell employees what they are doing right
7. Manage by excellence – focus on what is being done right
8. Use rewards – recognise desired behaviours aim to increase frequency
9. Create a culture of participation – let people join in
10. Empower staff – work to develop employees

Effective Management – INDICATORS (KPI)
Staff turnover – whether many staff are leaving or staying

Level of staff satisfaction – from surveys, are they happy?

Level of staff absenteeism – low or high? how often are people not showing up to work?

Motivation – are staff motivated to work?

Training and development – is this being provided?