What is management? Is it an art or science? Managing is the art of getting things done through and with people in formally organized groups. It is the art of creating an environment in which people can perform as individuals and yet co-operate towards the attainment of group goals.” Harold Koontz

Importance of management The success or failure of business organizations, public sector services, government institutions and so on, often depends on the quality of their management.

Adjectives related to management styles Which of these adjectives describe managers, entrepreneurs or both? assertive,authoritive and ruthless ready to take risks group oriented decisive intuitive rational efficient analytic cautious and careful individualistic good at listening people competent persuasive good at motivating good at leading others

set motivate communicate work out measure form analyse select Managers have to: .......... objectives ........... how to achieve them ........... effective teams ............people ............their staff .............the performance .............activities .............objectives to the people

What are top managers in charge of? 1. take responsibility for innovation 2. develop and maintain good relations with customers, suppliers, bankers, government agencies etc. 3. deal with major crises 4.manage a business’s social responsibilities (e.g. environment)

Reading: MK, p.18, 2a Is Robert Cringely’s description of IBM working culture positive or negative? Explain your point of view. True or false? IBM’s corporate management pays more attention on management than on selling their products. IBM’s managers do not do the work of designing but organize and supervise people who do it. IBM’s products are as cheap and good as similar products. IBM does not have an extensive hierarchy.

Theories of motivation: Douglas McGregor Theory X- traditional approach to workers People dislike work Try to avoid it whenever it is possible Workers have to be threatened and rewarded Most workers are incapable of taking responsibilities MK, p.3o 1d:Summarizing Theory Y – more “progressive” People have a psychological need to work they want to take responsibility they want achievement Managers should help workers do their best

Theory Y It makes greater demands on workers and managers. Abraham Maslow: demands of theory Y are excessive for many people. (excessive, adj = greater than what seems reasonable or appropriate) Many people need protection against the burden of responsibility – even strong people.

Theories of motivation: Abraham Maslow Hierarchy of needs (five levels of the pyramid): self-actualization self-esteem love /belonging safety physiological The three lower needs at the bottom of the pyramid have to be achieved before the two higher needs can be met.

Assignment: “The workers as adults” (R: p.40) 1. Explain: shareholder rights vs stakeholder rights 2. Name the three reasons why theory Y has not triumphed yet. 3. Explain: “...however hard employers try to treat their workers decently, the market will conspire against them.”

Classify these features into “satisfiers” and “motivators” - recognition - good wages - good working conditions - a challenging job - promotion - company’s shared values (corporate culture) - empowerment MK, p.31, 1h: Summarizing - personal growth - responsibility - job security - achievement - good administration

New words in this unit benefits employee employer incentive job security labour relations labour union perks reward sick pay skilled task threat unskilled wages working conditions