Topic 3Management Styles and Skills

pg 62

Hopetoun Secondary CollegeVCE Business Management

Unit 3 – Corporate Management© Peter Frances Hughes 2011

Know and Understand the 4 styles of management examinable here.

Autocratic Persuasive Consultative Participative

Realise their are some other styles such as laissez-faire, Contingency management and situational approach.

Styles of Management

Management Style defn - ‘The way in which managers go about their work and interact with people.’

What managers do? POLC Aim at achieving organisational objectives

and strategies. Managers have different styles and abilities.

Styles of Management p64

Centralised

• AUTOCRATIC

Middle

ground

• PERSUASIVE• CONSULTATIVE• PARTICIPATIVE

Decentralised

• LAISSEZ-FAIRE

The Continuum of Management Styles

Associated with hierarchical or vertical management structures - top down

Often seen as management focused.

Defn - Management style where the power and decision making remain with management in terms of policy, operations, planning and setting of tasks.

An autocrat is authoritarian.

AUTOCRATIC MANAGEMENT

Senior managers make decisions for subordinates and direct them accordingly.

Workers only receive monetary reward for their skills and services.

Praise of workers = seldom Criticism - often handed out and in public.

AUTOCRATIC MANAGEMENT

In the Master of Business Administration degree, the best management theory has the following rule (1980)

‘Praise in public, Punish in private.’

Therefore our Autocratic managers are somewhat outdated in their methods?

Your Opinion ????

Management Theory (Not on your exam)

Managers rarely deviate from plans. Often check on subordinates. May cause poor morale in the organisation.

News Corp - modified version Bob Jane T Marts - were autocratic under Bob

until the company almost collapsed, his son took over and went back to their original successful management styles.

AUTOCRATIC MANAGEMENT

Centralised Decision Making Control at Management level.

Managers sell their decisions to employees. Employees feel they have some ownership

of these ideas and the decision making process.

PERSUASIVE MANAGEMENT

HARD SELLRewards or threats to employees to follow the

new plans, strategies or policies.

SOFT SELLManagement forms relationships with

employees to encourage the new procedures, strategies or plans.

PERSUASIVE MANAGEMENT

Management is willing to consult with subordinates.

Builds relationships. Working in groups. This is how modern management

techniques are taught at undergraduate and postgraduate levels.

Suits horizontal management structures as witnessed in Ramsay Health Ltd

CONSULTATIVE MANAGEMENT

Group Synergy ie an effect created by collective intelligence.

The ideas of the group can outweigh the ideas of the individual.

Employees feel valued. Morale and motivation may be high.

Billabong

CONSULTATIVE MANAGEMENT

Managers require certain attributes to be good at this style of Management:

Good ListenersAre trusted by employees / subordinatesCan use the information provided by

employees and create solutions.

CONSULTATIVE MANAGEMENT

Employees are able to actively make decisions themselves.

Supported by management to make these decisions and there is no consultative process.

‘Common Goals’ of workers and management ie to increase shareholder wealth and obviously this will lead to job security and long term employment.

PARTICIPATIVE MANAGEMENT

Employees need management training. Employees are selected that have the

ability and resources to make the required decisions.

Communication flows both ways. People focused management

Woolworths

PARTICIPATIVE MANAGEMENT

BENEFITS Employees feel free to talk to management. Team environment.

CRITICISMS May be difficult to make quick decisions. Uncertainty may exist in employee roles.

PARTICIPATIVE MANAGEMENT

‘Leave well enough alone.’ Employee focused management style with hardly any management interference.

Workers decide on how to achieve goals.SAAB Sweden

Managers set deadlines that employees meet with their own KPI’s

Used where employees are highly motivated

Other Management StylesLAISSEZ-FAIRE MANAGEMENT

Management vary their styles according to the circumstances.

Contingency - a situation that arises unexpectedly that needs to be handled quickly and effectively.

Used by the Australian Army Multi-styled managers.

Other Management StylesCONTINGENCY MANAGEMENT

James Hardie limited

Other Management StylesCONTINGENCY MANAGEMENT

Head office and company located in AustraliaAsbestos claims lead to multiple law suits

Management had a ‘knee jerk’ reaction and moved the company headquarters to Holland to avoid paying claims agreed to in court.

Australian directors faced court for not acting with due care and diligence in facing up to their responsibilities.

James HardieKnee jerk reactions of managers, bad

contingency plans, lack of Corporate Governance and failing to listen to employees and the public has cost the shareholders of the company.

Share prices fell and have remained below their true worth.

Investors are still concerned about management even though all 9 directors have gone and will never manage a company again.

Other Management StylesCONTINGENCY MANAGEMENT

Page 70COMMUNICATIONDefn - the transmission of information in a

way that the recipient is ensured to understand the message.

Communication that is ineffective in business leads to poor achievement of goals and strategies.

The Key Management Skills required for Effective Management

COMMUNICATIONFormal Communication - may be via policy,

memo or email.

Informal Communication - unofficial message, gossip, smokos etc.

Good managers take careful note of all forms of communication.

Types of Communication

COMMUNICATIONVerbal Communication - encourages

feedback, occurs frequently and may not require an agenda. Effective managers send a written form of communication after a verbal meeting to confirm main points.

Types of Communication

COMMUNICATIONNon-Verbal Communication - body language,

tone of voice, image and setting. Can be regarded as important especially when dealing with overseas traders. Take note of cultural factors ie some cultures don’t like standing too close or touching. Other cultures may not look you in the eye.

Types of Communication

Non-Verbal CommunicationBody language, dress and setting for

meetings.Are you a mind reader or a manager?????It is often smart to ask about cultural

communication methods, most people respect this and will advise accordingly.

Last year I worked with a Pilipino man, an Indian Fijian bloke and a Canadian woman in a group as part of my Grad Dip in Education.

Types of Communication

EFFECTIVE COMMUNICATIONSuccessful managers use a variety of skills

and techniques to promote effective communication. p72

Types of Communication

Continue reading from page 72 to 92. We will be looking at this in term 2.

Complete your summaries up to date. Download from the VCAA website 2011,

2010 exams and their respective commentaries. Start answering some of the questions without using your notes (closed book)

AUTUMN BREAK 2012