General Management Course

Facilitated By : David Mazanga

Dates: 16th – 27th February 2015

Venue: Otjiwarongo ,Namibia

Course Objectives

By the end of the Course, participants will be able to:

• Define the need for management in the operation of business

• Outline the roles of management

• Define the aspects of leadership

• Differentiate leadership and management

• Develop positive management skills

• Utilise management roles and responsibilities

Defining Management

A process whereby human, financial, physical and information resources are employed in order to reach the goals of an organisation

Why do we need Management skills

• One of the commonest causes of failure in a business ,especially a small one ,is poor management (Cronje et al ,Business Management,2004)

Causes of Business Failure (Cronje et al)

% of Business Failure Cause of Failure Explanation

40% Managerial incompetence

Inability to run a business, morally, intellectually or physically

30% Lack of Leadership Inability to think strategically, and to bring about turnaround changes

20% Lack of Managerial Experience

Little if any experience in managing employees or going into business

10% No Industry Experience Little if any experience in product or services being delivered before going into business

The Management Roles

• Planning

• Organising

• Leading

• Control

Roles Defined

• Planning- determines the mission and goals of an organisation and how to reach them

• Organising-resources have to be allocated and employed to fulfil the organisation plans

• Leading-directs and motivates the human resources through communication and relations management

• Control-aligns all activities to the goals

Management- art or science

• Is Management an art or a science?

• What is a science?

• What is an art?

• Why do we ask these questions?

Principles of Management

• Setting the goals

• Achieving the goals

• Defining and sharing the difference /success

Tools for Effective Management

• People

• Processes

• Resources

• Environment

Management Roles

• Interpersonal roles

• Information sharing roles

• Decision making roles

• Goal setting roles

Management Roles Expanded

Planning

• Goal Setting – setting mission and goals in the context of the business environment

• Developing plans –choosing options and trade offs

• Implementation –operationalising the plans, setting resources for the purpose ,leading surbodinates and exercising control

Organising

• Designing jobs for employees

• Forming operations teams

• Assigning authority

• Establishing command structures

• Establishing coordinating mechanisms

5 Steps in the organising process

• Consider the plans and goals

• Prepare action plans

• Present a structure of work relationships

• Assign work, delegate, with authority and responsibility

• Classify and group work functions

Factors influencing organising

• Business environment-stable/turbulent/technology driven

• Relationship between strategy and structure

• Size of business

• Staff employed by the business

• Organisational structure/business personality

Leading Components

• Leadership and management

• Motivation

• Knowledge of group behaviour

• Communication

• Influencing behaviour of subordinates

• Direct activities of subordinates to achieve the organisational goals

Control

• Develop performance standards

• Undertake performance appraisals

• Measure performance & Report/feedback

• Evaluate the performance standards

• Correct performance deficits /gap

The nature of Managers

• They work with people, through people

• They are responsible and accountable

• Set priorities-make trade-offs

• Make analytical and conceptual thinking

• They are politicians sometimes

• Make decisions, are diplomatic sometimes

Management Concerns

• Efficiency getting work done with a minimum of effort,

expense or waste.

• Effectiveness accomplishing tasks that help fulfill

organizational objectives.

The ideal Manager’s Role

• Reactive Management

• Proactive Management

• Predictive Management

Reactive Management

• Reactive management deals with problems as they come up. It is a management style that is much admired for its ability to quickly get the resources back into production, whether those resources are machines or people.

Predictive Management

• Predictive management focuses on reducing the number of problems that require reactive management. The more problems that can be prevented through predictive management, the fewer problems will need to be solved through reactive management.

Management Functions

“Old”

• Planning,Organizing,Leading,Controlling

“New”

• Making Things Happen, Meeting the Competition, Organizing People, Projects, and Processes

Making Things Happen

• Determining what you want to accomplish.

• Planning how to achieve those goals.

• Gathering and managing the information needed to make good decisions.

• Controlling performance.

Meeting the Competition

• Consider the threat from competitors.

• Have a well-thought-out competitive strategy.

• Be able to embrace change and foster new product and service ideas.

• Structure their organizations to quickly adapt to changing customers and competitors

Organizing People, Projects, and Processes

• Consideration of people issues.

• Consideration of work processes.

Levels of Management

• Top management

• Middle management

• Lower level management

Top Managers

• Create a context for change.

• Develop attitudes of commitment and ownership

in employees.

• Create a positive organizational culture through language and action.

• Monitor their business environments.

Middle Managers

• Planning and allocating resources to meet

objectives. • Coordinating and linking groups, department

and divisions. • Monitoring and managing the performance of

the subunits and individual managers who report to them.

• Implementing the changes or strategies generated by top managers.

First-Line Managers

• Managing the performance of entry-level employees.

• Teaching entry-level employees how to do their jobs.

• Making detailed schedules and operating plans on middle management’s intermediate range plans.

Team Leaders

• Facilitating team performance.

• Managing external relationships.

• Internal team relationships.

Managerial Roles

• Interpersonal

- figurehead

• - leader

• - liaison

• Informational

- monitor

- disseminator

- spokesperson

• Informational

- monitor

- disseminator

- spokesperson

What Companies Look for in Managers

• Technical Skills – Specialized knowledge

• Human Skill – Ability to work with others

• Conceptual Skill – Ability to see the whole organization

• Motivation to Manage – A desire to be in charge

Relative Importance of Managerial Skills to

Different Managerial Jobs

Mistakes Managers Make

• Insensitive to others

• Cold, aloof, and/or arrogant

• Betraying a trust

• Overly ambitious

• Specific performance problems with the business

Mistakes Managers Make

• Over managing: unable to delegate or build a team

• Unable to staff effectively

• Unable to think strategically

• Unable to be a boss with different style

• Over dependent on advocate or mentor

First-Year Management Transition

• Be the boss

• Formal authority

• Manage tasks

• Job is not managing people

First-Year Management Transition

After Six Months as a Manager • Initial expectations were wrong

• Fast pace

• Heavy workload

• Job is to be problem-solver and trouble-shooter

for subordinates

First-Year Management Transition

After a Year as a Manager

• No longer “doers”

• Communication, listening, & positive reinforcement

• Job is people development

The Transition to Management

Initial Assumptions

Exercise formal authority, Managing tasks not people, Help employees do their jobs, Hire and fire

Reality

Cannot be “bossy”, Manage people not tasks, Coach employee performance, Fast pace, heavy workload

Branches of Management

• Human resource management

• Project management

• Operations management

• Strategic management

Human resource management

• Human resource management is both an academic theory and a business practice. It is based on the notion that employees are firstly human, and secondly should not be treated as a basic business resource.

• HRM is also seen as an understanding of the human aspect of a company and its strategic importance.

• HRM is seen as moving on from a simple "personnel" approach (or was supposed to) because it is preventative of potential problems, and secondly it should be a major aspect of the company philosophy, in which all managers and employees are champions of HRM-based policies and philosophy

Functional Approach to HRM

• From a functional perspective, a staff function; with the aim of helping other functional managers to apply and utilize the most important production factor, human resources, as effectively as possible within the organization.

• The people in an organization or company essentially determine how successfully the other means of production will be applied.

Strategic management

• is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.

Project management

• is organizing and managing resources in such a way that these resources deliver all the required work to complete a project within defined scope, time, and cost constraints .

Operations management

• This aspect takes control of day to day activities and processes of production

Development of the Theory of Management

• FW Taylor(1911) defined it as a science

• Behaviourists(1930s) called it a complex mix of psychology, sociology, human relations among other views

• In the previous century, the professional manager was not yet visible

Schools of Thought on Management

• Classical School(1910-1950)

• Contemporary School(1960s to present)

Classical Approach

• Scientific school

• Management process school

• Behavioural school

• Quantitative school

• Systems approach

• Contingency approach

Scientific school

• FW Taylor(1856-1915)- believed that a scientific approach such as job observation, job analysis, job measurement, job redesigns and financial incentives would make jobs more productive

Management process school

Henri Fayol(1841-1925) was the originator, he identified six functions of a business and these are:

• Technical(production/operations)

• Commercial(purchasing and marketing)

• Financial(accounting)

• Security function(protection of property)

• General management

Behavioural School/HR

Elton Mayo(1880-1949)-reacted to the failure of the scientific and classical schools to provide adequate human studies in management

He believed in the role of relationships and physical factors such as motivation, communication, power relations, interactions and organisational designs as core to the management process

Quantitative School

• The school emphasises mathematical models and processes in management

• They believe that if management is a logical process, it should develop models for effective processes, now this school is helping to operate large complex management matrixes

Systems Approach

• 1950s theory-management sees the organisation as a relationship of systems affected by a business environment

• The business is a whole made up of separate but functional parts

Contingency Approach

• It tries to link all approaches, arguing that the best management approach is dictated by the environment

• It does not believe in universal solutions to management, it rather believes that the situation dictates the approach

Contemporary Schools

• Strategic Management

• Total Quality Management

• Re-Engineering Approaches

• Diversity Management approach

Strategic Approach

• 1960s-1970s evolved in the second half of the last century

• The post second world wars,the emergence of Japan and the 1960s Depressions gave rise to this approach

• SWOT systems analysing threats and opportunities became a common approach to management

Total Quality Management

• A 1980s-1990s approach-the emergence of German and Japanese products raised issues of Quality because the two powers had better quality and higher rates of productivity than American producers

Re-Engineering Approaches

• This gave a space for learning and mistakes in organisations

• The approach believes that business can focus on their core business and also outsource non core activities to relieve pressure of performance

• This helped the core of company business to remain the primary concern

Diversity Management

• The emergency of new cultural and Equality issues of gender have advocated for a diversity management approach in businesses

• Employment Equity Acts, BEE, AA

• This has brought a new revolution in management including comparative analysis of diversity across the world (Cronje et al 2004,Business Management)

LEADERSHIP

• A complex element of Management

• Defined as ‘the influencing and directing of the behaviour of subordinates in such a way that they willingly strive to accomplish the goals and objectives of the business

Components

• Leadership and management

• Motivation

• Knowledge of group behaviour

• Communication

• Influencing behaviour of subordinates

• Direct activities of subordinates to achieve the organisational goals

Leadership and Management

• Managers ......who are not leaders

• Leaders......who are not managers

• The aim is to make good managers leaders as well

Aspects of Leadership • Authority-right to command and demand

action

• Power-ability to influence others without using authority

• Influence-ability to use authority and power to move subordinates to action

• Delegation-the ability to transfer authority to a subordinate and still remaining accountable

• Responsibility –carrying out activities according to instruction , being overally accountable

Authority

• The right perform certain actions, with guidelines, to decide who does what, to compel the execution of tasks, to punish those who fail to act what is expected

• The authority conferred by an organisation is formal authority , granted by an institution

Kinds of power

• Reward power-to give or withhold

• Coercive power-use of fear, psychological, physical, emotional

• Referent power –abstract power, personal, based on personal charisma

• Expert power-based on knowledge, nexpertise and professional endowment

• Legitimate power-granted by one’s position , similar to authority

Kinds of power

Use and outcomes of power Type of power Commitment Compliance Resistance

Referent Likely-request seen as important to leader

Possible –if request is seen as unimportant

Possible –if request will bring harm the leader

Expert Likely-if request is persuasive & goals are shared

Possible –if request is persuasive

Possible –if leader is arrogant, insults subordinates

Legitimate Possible –if request is polite, suitable

Likely-if request is seen as legitimate

Possible-if demand is arrogant

Reward If used in a personal , subtle way

Likely –if used in an impersonal way

Likely-if used in an arrogant way

Coercive Very unlikely Possible-if used in a helpful way

Likely-if used in a hostile/manupilative way

Leadership Models

• Autocratic/Task oriented leaders-make all decisions, dominating

• Democratic/Relationship oriented leaders-believe in teamwork

• Theory X (McGregor)-believe people are lazy and have to be forced to work

• Theory Y-believe that people want to work and are responsible

New Models

• Situation Leaders-variety of situations determine leadership models and leaders perform according to various situations

• Female Leadership-modern, more inclusive

• Interactive leadership-participatory approach

Factors affecting Effective leadership

• Personality and experiences

• Organisational culture and policy

• Behaviour expectations and nature of subordinates

• Expectations and behaviour of association

• Requirements of the job

• Expectations of the superiors

Motivation

This a component of leadership that drives satisfaction in humans

Motivation is need-satisfying process in the direction of a desired goal

Theories on Motivation

Maslow Hierarchy of Needs

• Physiological needs-food, shelter, clothing

• Security needs- protection against dangers

• Social needs –love, friendship,

• Esteem, respect needs-egoistic needs ,status

• Self actualisation needs – needs for self expression

Maslow Theories

Apply to :

• Individuals and

• Groups

Groups found in Businesses

• Functional Groups- to perform a function

• Task Groups-to perform a duty

• Interest Groups-informal groups

Characteristics of Groups

• Leader

• Followers/members

• Norms and standards

• Group solidarity

• Interdependence

• Conflict is possible

Communication –sign of good leadership

Sender-message-channel-reciever -feedback

Types of communication

• Verbal

• Non-verbal

Management & Human Resources

HR management does :

• Advise and counsel

• Service delivery-planning, recruiting, selecting,developing and compensation

• Policy formulation and implementation

• Employee advocacy

Motivation in Depth

Motives are:

• Individualistic

• Motivation change

• May be unconscious

• Are inferred –observe and tell why one behaves that way

• Hierarchical-strongest to the weakest motive

Theorists on Motivation

• Abraham Maslow

Alfred Adler

• Existence needs-are material to the person

• Relatedness needs-desire for interpersonal needs

• Growth needs-need for productive contribution

Herzberg Two Factor

• Maintenance Factors –working conditions, policies, salary ,equipment, supervision

• Motivation factors –achievement, recognition, feedback, responsibility , job satisfaction

McClleland theory of Needs

• Need for achievement-need to excel, set standards

• Need for power-to influence, control others

• Need for affiliation-need to be liked and accepted

Process Theories

Expectancy Theory

• Motivation depends on how much we like something and how likely we think we may get it

Expectancy Theory-Vroom

• Valence- desirability of the result of working

• Instrumentality- a belief that a special action can lead one to achieve

• Expectancy-that a certain action will lead to the outcome

Equity Theory –Stacey Adams

• The desire to be equally treated lead to performance

Goal-setting Theory

• Ceteris paribus- all people will strive for particular goals

Source of Broad Motivation

• Job design –employees want jobs that has status, growth

• Intrapreneurial incentives-allow employees to be creative and innovative

• Training and Education-jobs that develop individuals are desired

• Incentives-reward jobs

• Empowerment and participation-make own decisions and goals

Source of Broad Motivation

• Culture of change- 20th Century jobs needs change

• Career management- involve employees in decisions and organisation planning

• Reward systems-expectancy theory has a link to reward systems

Compensating Employees

• Direct compensation –salaries and wages

• Indirect compensation-leave, insurance, housing, car , allowances

• Reward-salary increase, cost of living adjustment, merit increases, financial bonuses, paid holidays

Developing Employees

• Training

• Coaching

• Mentoring

Performance Appraisal

Assess employees work characteristics, attitudes, enthusiasm, initiative, neatness

• Employee rating

• Employee evaluation

• Performance review

• Performance evaluation

• Results appraisal