1. UNIT 3 Management Skills

2. Overview Management Skills: Leadership Motivation Communication

3. Leadership

4. Leadership involves… Direction Delegation Coordinating Motivating

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

6. What is Leadership? Leaders coordinate the efforts of all staff in order to ensure that harmony and common goals are achieved. Leaders motivate staff by being aware of the factors that entice workers to be more productive.

7. The three types of leader are: Autocratic Democratic Laissez-faire

8. Autocratic Leader Gives plenty of direction as they always tell people what to do. They do not delegate well as they think that they can do things best. They communicate mostly downwards.

9. Autocratic Leaders Motivate by fear. Worker morale may low under this type of leader. Example: Hitler

10. Democratic Leader Gives good direction as they guide people towards a common goal. Will delegate work to ensue all are involved and included. Communicates both downward and upward, listens to suggestions and feedback.

11. Democratic Leader Motivates by encouraging and including all staff. Worker morale will be high as they feel valued. Example: Barak Obama

12. Laissez-Faire Leader Does not give much direction. Delegates a lot of tasks & responsibilities. Communicates both upward & downward. Motivates by giving freedom to workers. Worker morale may be high or low. Example: Richard Branson.

13. Delegation 2009 Q 4 (a) Is assigning responsibility and authority to another person in order to carry out a task. A manager should ensure that this person has the skills, competence and resources necessary to complete the task within a stated deadline. However the ultimate responsibility rests with the manager.

14. Benefits of delegation 2009 Q 4 (a) 1. Efficient completion of tasks Manager can prioritise tasks and get the most suitable people to do them. 2. Tasks completed to a higher standard Due to a level of personal accountability expected of the person carrying out the task and their special ability to do so.

15. Benefits of delegation 2009 Q 4 (a) 3. Increased employee motivation Workers may feel more valued, their jobs enriched and morale improved leading to better productivity & possible promotion. 4. Improved work/life balance The manager does not have to do all the work so there is less stress & conflict. Future managers are being trained on the job.

16. Dangers of not delegating Overload Work not completed within the timeframe required Staff do not improve their skills/experience

17. Motivation

18. 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:  McGregors Theory X and Throry Y  Maslows Hierarchy of Needs.

19. McGregors Theory X and Y Douglas McGregor wrote the book “The Human Side of Enterprise” in 1960. He examined individuals’ behaviour at work. From this he formulated two models of management, Theory X and Theory Y

20. Theory X Assumes that people are lazy and don’t like work and are motivated by money. Therefore people have to be forced to work. Managers need to be controlling and motivate by threats and fear. The leadership style used by managers will be autocratic.

21. Theory Y Assumes that people seek fulfillment through work and are willing to work hard. Workers do not need to be controlled. The management motivate by encouragement and inclusion. The leadership style used is democratic or free-rein.

22. Evaluation of McGregor’s Theory X and Theory Y I think that a knowledge of McGregor’s theory of motivation is useful for managers. The type of management style used depends on: Workers attitudes  Good worker = Theory Y  Lazy worker = Theory X Type of work they are doing  Skilled = Theory Y  Unskiled = Theory X Therefore managers need to be aware of which style best suits the situation.

23. Sample Exam Question: 2009 Q 4 (b) Q: Analyse the implications for a business of a manager adopting the Theory X approach to managing. A: Theory X manager: Assumes that people are lazy and don’t like work and are motivated by money. Therefore people have to be forced to work. Managers need to be controlling and motivate by threats and fear. The leadership style used will be autocratic.

24. Implications of Theory X manager: Controlling manager, may lead to conflict. Little trust, employee initiative stifled. No consultation leading to poor morale and productivity. Little delegation leads to poor training of future managers. Sample Exam Question: 2009 Q 4 (b)

25. Maslow’s Hierarchy of Needs Abraham Maslow wrote many psychology books in the 1940s and 1950s. He believed that people’s behavior can be influenced by motivating them to meet their unsatisfied needs. Maslow’s Hierarchy of Needs states that:  There are FIVE needs.  The must be satisfied in a certain order.

26. Job, food, water, shelter Contract,tenure Friends, teamwork Performance appraisal, job title Challenge, promotion, courses

27. Evaluation of Maslow’s Hierarchy of Needs I think that a knowledge Maslow’s Hierarchy of Needs is very useful to managers. However they must know what level each person is on in order to satisfy needs in correct order, e.g. there is no point in trying to motivate a person on minimum wage by praise, they need more money first.

28. Benefits of motivation Higher morale Better productivity Less absenteeism Less conflict, better industrial relations Better communication and trust Spirit of intrapreneurship

29. Sample Exam Questions Short Question 2007, Q7 Long Questions 2009, Q4 (A) Delegation, benefits (B) Implications of Theory X 2006, Q4 (A) Motivational Theory (B)Three styles of leader 2005, Q4 (C) Evaluate Maslow and McGregor 2003, Q5 Evaluate Leadership, Motivation and Communication

30. Communication

31. Define Communication: 2000 Q4 (A) Communication is the exchange of information between people There is a sender and receiver involved It is important that the correct medium (method) and channel (person) is used to send the message For communication to be effective, the message must be clear and understood and the recipient must be able to respond

32. Types of Communication Internal communication takes place within an organisation. It may be: Downward – boss giving instructions to a subordinate Upward – complaints or suggestions by employees Lateral/Horizontal – managers from different departments talking Feedback – management looking for the opinions of customers or staff

33. Types of Communication External communication is needed to deal with all other stakeholders, e.g.: Investors Government agencies Suppliers Producers Society

34. Why is Communication important? Management spend about 75% of their time communicating Poor communication is a major source of conflict Good communicators make good managers

35. Importance of Communication Downward communication is important in order to give clear instructions to employees so that the objectives of the business are met with the highest quality and minimum cost. Upward communication is important so that employees feel that there is a two way system and that their concerns and suggestions are listened to. As a result worker morale and industrial relations will be good. Lateral/horizontal communication is important to maintain between people of the same level of authority (e.g. managers, supervisors) in the organisation to ensure coordination of plans.

36. Importance of Communication Feedback is when manager actually asks subordinates or customers for their opinion. It is important in order ensure that all people in the organisation have the opportunity to influence the decision making process, which in turn will improve morale and reduce conflict. It brings people closer together and is consistent with a democratic style leadership. External communication is needed to order from suppliers, satisfy customers, deal with enquiries or complaints, obtain governments advice and grant aid, etc.

37. Visual Communication Using charts, graphs, videos and television to give a messages internally & externally.

38. Rules for preparing charts/graphs Give the chart/graph a title. Label the Y axis (e.g. year) Label the X axis (e.g. quantity)

39. Bar Chart 2005 SQ 10, 2003 SQ 10  A bar chart is a series of bars.  It is used for comparing quantities.

40. Line/Trend Graph A line/trend graph is a chart that uses lines. It is used for showing changes over time.

41. Pie Charts A pie chart is a circle divided into segments. It is used to show percentages or proportions.

42. Visual Communication Advantages Easy to understand Shows trends and comparisons Disadvantages Some people may not understand Takes time to prepare

43. Evaluate the role of ICT in communication 2000 Q 4 (B) 1. Speed  All sorts of information is transmitted and available world wide in a very short space of time.  e.g. internet, e-mail

44. Evaluate the role of ICT in communication 2000 Q 4 (B) 2. Decision Making More informed decisions can be made with a variety up-to-date information. “What if” scenarios can be considered. e.g. spreadsheets, www

45. Evaluate the role of ICT in communication 2000 Q 4 (B) 3. Management Structure Organisations have become flatter. There are fewer layers of management. It is easier to keep control with ICT. Management & subordinates are in constant communication via mobiles, laptops…

46. Evaluate the role of ICT in communication 2000 Q 4 (B) 4. Geographical Location Face-to-face communication is no longer necessary. Reducing time & costs of travel. Eg. tele-conferencing, videoconferenceing

47. Benefits of improving Information & Communication Technology (ICT): 2001 Q 4 1. ICT reduces costs Less workers needed, less wages e.g. robotics. Less travel e.g. videoconferencing. Less retail expenses, e.g. internet sales. Less postage e.g. e-mail. Less bank charges with e-banking.

48. Benefits of improving Information & Communication Technology (ICT): 2001 Q4 2. ICT improves performance Management can make quick informed decisions eg. www, spreadsheets. Repetitive task can be done by computer freeing staff to do other things eg. stock control (EFTPOS) Quick & constant comm makes the firm efficient eg. mobiles, internet….

49. Benefits of improving Information & Communication Technology (ICT): 2001 Q4 3. ICT provide new business opportunities New technology helps develop new products more effeciently eg CAD, CAM Advertising & selling can by done globally via the internet.

50. Drawbacks of ICT Costs: Hardware, software, training. Redundancies: Workers & middle management Health issues: RSI, eyesight, etc.

51. Electronic Data Interchange (EDI) 2009 Q 6, 2002 SQ 5 Allows firms to send standardised documents to each other. Example: when stock reaches a certain level the computer will automatically order new stock from the supplier. The supplier will automatically send an invoice. It is quick and cheap (reduces paper & post).

52. Spreadsheets 2000 SQ 5

53. What is a Spreadsheet? It is a computer programme that allows records to be stored and presented quickly and easily e.g. Microsoft Excel. It can perform “what if” analysis. Predictions can be made, which helps decision making. Used for payroll, final accounts, budgets, etc.

54. Internet and World Wide Web 2009 Q 6 A world wide connection of computers. It is a library of electronic magazines that contain vast amounts of information. It is also a method of advertising and selleing products. Examples: Dell sells its computers via the internet, Ryanair sells flights online

55. Modem Computers need a modem to communicate with other computers through the telephone lines. It converts digital signals to analog signals.

56. e-mail 2005 SQ 5 Electronic mail involves sending and receiving messages over the internet. It is quick, cheap & easy. Disadvantages:  There may be viruses attached  It may not be private (can be forwarded to someone else)  The email may go to the wrong address

57. Video-conferencing: 2009 Q 6, 1999 SQ 3 TV and computer link up via satellite of sound & pictures for meetings without travel.

58. Benefits of Videoconferencing It is quicker and cheaper than travelling. It allows people from all over the world to share their ideas. Used by companies such as Intel and Google to communicate with their headquarters in California.

59. Teleconferencing  Up to 20 people can talk together on the phone.  It is quick & cheap.  It allows people to work from home.  This reduces office expenses.

60. Data Protection Act 1988 and 2003 (2009 Q 4) A Data Subject is an individual about whom information is kept. Data Subjects have rights: 1. Right of Correction – the right to have inaccurate information corrected 2. Right to Complain and Compensation – a person has the right to complain to the Data Protection Commissioner and to receive compensation for losses resulting from inaccurate information 3. Right of Access – a person has the right to receive a copy of data held electronically or on paper within 40 days of lodging a request 4. Right of Removal – a person has the right to have their name removed from mailing lists

61. Obligations of Data Controllers (SCOUR) 1. Provide security: keep data protected against unauthorised access (locked filing cabinet, password protected laptop, etc.) 2. Provide a copy of data within 40 days of a written request 3. Obtain information fairly and openly 4. Use data only for specific purpose intended 5. Register – keep a register of all data kept

62. Functions of the Data Protection Commissioner Keep a register of all data controllers. Report annually to the Oireachtas. Use prohibition notices to stop the transfer of data outside of the country. Use information notices to force data controllers to provide data when requested. Use enforcement notices to deal with organisations that breach the act.

63. Evaluation of the Data Protection Acts 1988 and 2003 In my opinion the Data Protection Acts 1988 and 2003 have protected data subjects from loss due to inaccurate information which is held about them It entitles data subjects to see all information held about them on computers or in manual files and get any errors corrected The establishment of a Data Protection Commissioner, a government-backed official helps data subjects fight for their right of access to files

64. Review and Recap Leadership  What is leadership?  What are the three leadership styles? Motivation  What is motivation?  Why is it important in business?  What are the two main theories of motivation? Communication  What is communication?  Why is it important in business?  What methods are used in business?  How has ICT impacted on communication?  How does the Data Protection Act impact on consumers and on businesses that hold information about consumers?