UNIT 3 Introduction to Management

Overview What is management? What is management coordination? What are objectives? Management characteristics Management skills  In the home  In the community  In school  In government  In business/enterprise Management v Enterprise

Management (2006 SQ 3) Management is the process of setting and achieving objectives by making the best use of people, time, money and equipment. A manager (CEO) or (MD) is responsible for the overall day to day running of the business.

Co-ordination (2001 SQ 4) Managers must ensure that all parts of an organisation is working towards a common goal. Everyone needs to be aware of the overall objectives. Good managers ensures that the plans and activities of each section fits in with each other.

What is an Objective? An objective is a target to be achieved some time in the future. Business Example: Increase sales by 10% in the next year Personal Example: Get an A1 in Business in the Leaving Certificate!!

A general objective Is a mission statement. It gives an outline of the overall aims of the organisation. Example: Pfizer’s mission is to apply science and our global resources to improve health and well- being at every stage of life

A specific objective A statement of a more narrow and defined target. Example: The company will increase the workforce by 10% this year.

Tactical Objective A short to medium term goal. It will take 1 to 5 years to achieve. Example: increase sales by 20% within three years

Strategic Objective A long term goal. It will take 5 to 20 years to achieve. Example: expand internationally by opening 20 shops around the world.

Management Terms Effectiveness Efficiency Productivity

Management Terms Effectiveness – measure the success of the business in achieving it’s objective Efficiency – a business is efficient when it uses the least amount of resources to achieve the best results Productivity – is the relationship between inputs (raw materials) and outputs (finished products  Productivity is high when few inputs generate many outputs  High productivity reduces costs and increases profits

Management Characteristics S – S – A – C – H – D – D Self-motivated Self-belief Adaptable Charismatic Hard-working Decisive Desire for achievement

Self-motivated Managers are self-starters. They have the initiative to do things themselves.

Self-belief Managers have confidence in themselves to make decisions and promote their business. Managers are positive in their approach.

Adaptable Managers must have the innate ability to be flexible and be able to cope with different situations. They don’t mind moving outside their “comfort zone”. They don’t mind change or trying something new.

Adaptable

Charismatic Managers must have an air about them that commands respect. They must be liked by their subordinates if they are to be successful in influencing them to achieve goals.

Hard working Managers must be willing to spend long hours at work. They should be the first to arrive and the last to leave. They must lead by example.

Hard working

Decisive Managers must have the intelligence & judgement to make quick and effective decisions. They must be confident in their own ability to make decisions.

Desire for achievement Managers must have a strong desire to see their business succeed. They must be willing to put in the effort needed for this.

Management Skills Leadership Communication Motivation

Leadership A leader is a person who gives direction by guiding people towards achievieng goals. They delegate tasks and responsibilities to others in order to involve them, share the work load and reduce stress.

Leadership They coordinate the efforts of staff in each department in order to ensure that harmony and common goals are known achieved. (2001 SQ 4) They motivate staff by being aware of the factors that entice workers to be more productive.

Communication Communication is a management skill that involves the transfer of information from one person to another in a way that it is received and understood.

Communication involves being able to: Read and write in the appropriate language Speak to individuals and groups Be aware of the recipient(s) Stimulate, motivate and negotiate Listen, filter and absorb Act on feedback

Motivation Is a management skill that involves persuading people to act in a certain way. It involves being aware of the factors that lead people to act in a certain way. Theories of motivation include McGregor’s Theory X and Throry Y and Maslow’s Hierarchy of needs.

Management skills in the home Leaders: Parents/Guardians Communicate with: Children, school, doctors, banks, friends. Motivate: children to do house & school work & have healthy lifestyle.

Management skills in the community Leaders = Volunteers Communicate with: Businesses, voluntary groups, government agencies. Motivate: Government to give grants, businesses to give sponsorship, locals to give free time.

Management skills in school Leaders: Principal & Deputy Principal Communicate with: Teachers, students, parents, HSE, doctors. Motivate: Teachers & students to work hard, parents to support children, fundraise…

Management skills in government Leaders = Ministers Communicate with: Civil servants, social partners (IBEC, ICTU, IFA). Motivate: All social partners to agree on national wage agreements and policies

Management skills in business/enterprise Leaders: Entrepreneurs Communicate with: Investors, suppliers, customers… Motivate: Investors to give them money, suppliers to give credit & discount.

Similarities between Enterprise & Management Choose three characteristics that are the same and explain each one using a heading and bullet points.

Distinguish between Enterprise & Management (2009 SQ 7) Enterprise is the ability to generate new ideas, identify opportunities and have the confidence, motivation & determination to take an uninsurable risk to turn an idea into reality. Example: Mark Zuckerberg took the risk to setup Facebook.

…whereas… Management is the process of getting objectives & activities completed efficiently & effectively through the use of human & financial resources on a day to day basis. Management skills  Leadership, Communication & Motivation. Management activities  Planing Organising & Controlling. Example: Manager of a branch of Dunnes Stores

Sample Exam Questions Short 2009 Q 7. Enterprise v management 2006 Q 3. Management 2001 Q 4. Co-ordination Long 2009 Q Q 4 (Management skills in home, community, government, business start up) 1999 Q 4 (Letter: management characteristics)

Applied Business Questions 2010 (C): Management Skills 2004 (C): Management Skills 1999 (C): Management Skills

Recap and Review What is management? What is management coordination? What are objectives? Management characteristics Management skills  In the home  In the community  In school  In government  In business/enterprise Management v Enterprise