CHAPTER 2: Managing a business Flashcards
WHAT IS MANAGEMENT?
Getting things done through other people.
The need for management:
Objectives have to be set for the organization
Somebody has to monitor progress and results
Somebody has to communicate and sustain corporate values, ethics and
operating principles
Somebody has to look after the interests of the owners and other stakeholders
In a buz,
managers act on behalf of shareholders. Shareholders
rarely interfere, as long as the buz delivers profits yoy
In a public sector organization,
management acts on behalf of the gov
Power:
The ability to get thing done
Coercive power:
the power of physical force or punishment
Reward (resource) power:
based on control over valued resources
Legitimate (position) power:
associated with a particular position in the organization
Expert power:
based on experience, qualifications or expertise
Referent (personal) power:
based on force of personality, which can attract, influence or inspire other people
Negative power:
the power to disrupt operations
Authority:
the right to do something, or to ask someone else to do it
and expect it to be done.
another word for position
(legitimate) power
Managerial authority is exercised in:
Making decisions within the scope of authority
Assigning tasks to subordinates, and expecting satisfactory performance of
these tasks
Responsibility:
The obligation a person has to fulfill a task which
they have been given
Accountability:
a person’s liability to be called to account for the fulfillment of tasks they have been given by persons with a legitimate
interest in the matter
A person is responsible for a piece of work when he or she is required to ensure that the work is done
The same person is accountable to a superior when he or she is given work by that superior
Delegation:
a manager may make subordinates responsible for
work, but remain accountable to his or her own manager for ensuring that the work is done. Appropriate decision-making authority must be delegated alongside responsibility
Can be classified according to the types of authority they hold:
A line manager has authority over a subordinate
A staff manager has authority in giving specialist advice to another manager
or department, over which they have no line authority
A functional manager has functional authority, a hybrid of line and staff authority, whereby the manager has the authority, in certain circumstances, to direct, design or control activities or procedures in another department
A project manager has authority over project team members in respect of the
project in progress. This authority is likely to be temporary and the members
are likely still to have line managers
Tensions involved in staff managers:
Staff manager can undermine line manager’s authority
Lack of seniority, realism, responsibility
THE MANAGEMENT HIERARCHY
The hierarchy is usually represented as a pyramid, as top managers
are far less numerous than direct operational staff
The management process:
comprises 4 main tasks – planning, organizing, controlling and leading
Planning:
set the direction of the work to be done
• Pinpointing specific aims
• Forecasting what is needed
• Looking at actual and potential resources
• Developing objectives, plans, targets
• Using feedback to make necessary amendments
Organizing:
allocate time and effort in such a way that the objectives, plans and targets are likely to be met
• Defining what processes, technology and people are required
• Allocating and coordinating work
Controlling:
monitor events so they can be compared with the plan
and remedial action can be taken if required
Leading:
generate effort and commitment towards meeting objectives, including motivation and staff
Putting the management process into action:
Any problems foreseen
at the planning stage is taken into account when deciding how activities should be organized. By means of this process, and the important element of leadership, the manager can take resources
and create required outputs
Henry Mintzberg defines what managers do in terms of 3 key roles:
The information role
The interpersonal role
The decisional role
The information role
checking data received and passing it on to relevant
people, as well as acting as the spokesperson for his or her team in relation to
other teams or his / her own manager
The interpersonal role
acting as leader for his / her own team, and linking
with the managers of other teams
The decisional role:
- Allocate resources to operations
- Handle disturbances
- Negotiate for what they need
- Solve problems
- Act as entrepreneur
