The source and extent of change. CHAPTER 5 – INTODUCTION TO GENERAL MANAGEMENT: Management can be defined quite simply as the process followed by managers to accomplish a business’s goals and objectives. Management does four things – it decides what has to be done, how it must be done, when it should be done, it checks that orders have been carried out. PLANNING, ORGANISING, LEADING AND CONTROL. Role of management – an org consists of people and resources and certain goals that have to be reached. Importance of management: Management directs a business towards its goals management sets and keeps the operations of business on a balanced course management keeps the organization in equilibrium with its environment management is necessary to reach the goals of the organization at the highest possible level of productivity Different levels of management: top management – comprises of small group of executives who control business , they have final authority and responsibility – example board of directors , partners , managing director , ceo Middle management – responsible for functional of the business, primarily for executing policies, plans and strategies determined by top management – examples are functional heads, marketing manager, purchasing manager, personnel manager. Lower management – supervisory management – responsible of smaller segments of the business, promotions manager, supervisors. Skills needed at different managerial levels: conceptual skill – mental capacity to view business and its parts in a holistic manner interpersonal skills – ability to work with other people technical skills – ability to use the knowledge or techniques of a particular discipline Role of managers:
legitimate power (managers can insist employees work) , referent power (managers personal power, charisma) , expert power (expertise ,knowledge responsibility – obligation to achieve organizational goals delegation – assigning responsibility Leadership styles: autocratic democratic – leader that involves employees in decision making, delegates authority , encourages participation laissez-faire – leaders leave all decisions to their employees and do not follow up production oriented leaders – emphasis the technical or task aspects of the job employee orientated leaders – emphasis interpersonal relations 5 dimensions of trust: integrity – honesty and truthfulness competence – technical and interpersonal knowledge and skills consistency – managers reliability ,predictability loyalty – willingness to protect another person Openness – one can rely on a manager to tell the whole truth. Charismatic leadership – have traits such as ability , self confidence , strong convictions Visionary leadership – ability to create and articulate a realistic,credible,attractive vision for the future of the business Transactional leadership – leaders exchange rewards for employee compliance transformational leadership – leaders effect on followers in that followers feel trust , admiration , loyalty motivation – is an inner desire to satisfy an unsatisfied need performance = ability x motivation x resources informal groups – interest groups – group members usually share common interest or friendship groups –usually exist to satisfy the social needs of members formal groups – command groups = (formal organigram ,line of command) , task groups = created to complete a specific task Characteristics of groups: size – affects overall performance social loafing – tendency to put in less effort composition status - norms cohesiveness