© Cambridge University Press 2012 CHAPTER FIVE THE NATURE OF MANAGEMENT Topic 2 Business Management

© Cambridge University Press 2012 An effective manager is responsible for ensuring the business achieves its objectives and goals. 4 functions of management make plans both short terms and long term organises resources of the business; finance, labour, inputs, facilities leads and motivates staff uses controls to ensure the business achieves its goals. Features of effective management

© Cambridge University Press 2012 An effective manager: anticipates changes in the market is flexible in approach and adapts to changes in the business environment develops well thought out short term or strategic plans organises business’s resources in an efficient and productive manner has good relationships with employees, owners or other managers. Features of effective management (cont.)

© Cambridge University Press 2012 To be effective a manager needs a range of appropriate skills, use the right skill at the right time and recognise their own strengths and weakness Skills of management

© Cambridge University Press 2012 Interpersonal skills motivating showing trust and providing support encouraging a team effort Communication skills Being understood and understanding listening Reconciling conflict understanding each team member’s role acknowledging each individual’s importance negotiating Skills of management (cont.)

© Cambridge University Press 2012 Strategic thinking thinking of the long term taking a holistic view—considering the big picture acknowledging the interdependence of departments having a common goal Vision considering future developments communicating goals to others having a dream Skills of management (cont.)

© Cambridge University Press 2012 Financial goals are to increase profits by increasing revenue and reducing costs, Increasing share value, Other financial goals include growth by increasing the size of the business with more outlets, greater geographic distribution and/or more assets Marketing goals are to increase sales revenue and market share. Business goals

© Cambridge University Press 2012 Environmental sustainability such as reducing reliance on non-renewable resources and reducing the rate renewable resources are used up. Social goals include: Quality of working life of employees Support of charities and community groups Improving the quality of life of people in society generally and future generations Social and environmental goals

© Cambridge University Press 2012 Using a participative style of management involves staff in decision making and gives them a feeling or more inclusiveness and value to the business This will increase staff loyalty and productivity. Through fostering innovation, mentoring, motivating and staff training. Importance of staff involvement in achieving business goals

© Cambridge University Press 2012 Staff meetings that encourage contribution of ideas Corporate culture that encourages staff at all levels to contribute Participative/democratic leadership style by managers Employee share ownership schemes Work teams. Importance of staff involvement in achieving business goals (cont.)