TOPIC 2 THE NATURE OF MANAGEMENT

Management: working with other people to achieve business goals in a changing environment

Four main resources in a business
Human employees
Information- knowledge/data
Physical- equipment
Financial- funds needed to meet creditor obligations

Effective and efficient management
Effective: get the job done
Efficient: using few resources as possible
Use limited resources efficiently and effectively
Desired result timely decisions
Maximum output from minimum input

Management Roles
POLC (Henri Fayol)
Planning: setting objectives and deciding on methods to achieve them
Organising: arranging resources to achieve goals
Leading: influencing people to work towards goals
Controlling: evaluating and modifying tasks to ensure that set goals are achieved

IID (Henry Mintzberg)
10 roles management under three major categories
Interpersonal 1: figurehead
Performs ceremonial duties
Symbol of authority
Signing documents
Receiving visitors
Attending functions
Interpersonal 2: Leader
Motivates employees
Communicating with employees
Interpersonal 3: Liaison
Maintains network of contacts
Interacts with other organisations
Answering letters, email, phone calls
Conferences
Informational 1: Monitor

Seeks and receives informations from sources to gain better understanding of business and
environment
Communication and contacts
Receiving all types of information
Informational 2: disseminator
Shares information with selected employees in business
Forwarding communication on appropriate areas of business
Informational 3: spokesperson
Presents outsiders information about business plans, results and policies
Attending board meetings
Newsletters
Media interviews
Decision making 1: Negotiator
Discussions with other parties e.g. unions, suppliers
Negotiating
Bargaining
Decision making 2: entrepreneur
Scans environment for opportunities
Initiates projects to improve performance
CHANGE
Conducting review sessions
Undertaking evaluation
Organising research
Decision making 3: Resource Allocator
Decides who should get what resources
Preparing budget
Requests and expenditure
Programming employee tasks
Decision making 4: Disturbance Handler
Deals with issues and crises inside and outside business
Corrective action
Implements strategies to resolve conflicts or deals with issues