Select your language

Suggested languages for you:
Log In Start studying!
StudySmarter - The all-in-one study app.
4.8 • +11k Ratings
More than 3 Million Downloads
Free

All-in-one learning app

  • Flashcards
  • NotesNotes
  • ExplanationsExplanations
  • Study Planner
  • Textbook solutions
Start studying

Management

Save Save
Print Print
Edit Edit
Sign up to use all features for free. Sign up now
X
Illustration You have already viewed an explanation Register now and access this and thousands of further explanations for free
Business Studies

Management is nothing more than motivating people."

- Lee Iacocca

Management is the coordination and control of a group of people to achieve common goals and objectives. In business settings, it's often referred to as organisational management. Organisational management is the task carried out by managers to organise, lead, and control resource allocation within a company.

Management and Managers

Management of organisational activities is the main job of managers. Managers do not carry out the tasks themselves but delegate them to their subordinates.

Management is the coordination and organisation of business activities within the organisation.

While some managers prefer to make decisions themselves, others allow the staff a degree of participation in decision-making. This gives rise to a number of management styles.

Despite their differences in management styles, all managers undertake three main roles:

  • Interpersonal roles - Motivate staff to deliver the best work

  • Information roles - Monitor and disseminate information within the organisation

  • Decisional roles - Make decisions and delegate tasks to staff to meet the organisation's objectives.

Management Skills

There are a variety of management skills that allow managers to manage a workforce effectively. These include technical skills, conceptual skills, and interpersonal skills.

Technical skills

Also called hard skills. These management skills are usually specific to the industry or manager's role.

A marketing manager might be required to have SEO and photoshop skills.

These skills allow the manager to manage employees by training them on specific technical skills. These skills are usually important for the lower-level managers and lose their importance at the senior level.

Conceptual skills

Managers with conceptual management skills can see the whole company's picture, predict occurring problems and find creative ways to solve them. These skills are more relevant to top-level managers, as they are responsible for making strategic decisions that impact the whole organisation. Conceptual skills are the combination of communication skills, creative thinking, problem-solving, etc.

Interpersonal skills

Interpersonal skills are required for managers regardless of their managerial level, as all managers' top responsibility is to manage people. Interpersonal skills mean that managers can understand their employees and tailor the best-fitted management styles according to employees' needs. Managers should use their interpersonal skills to build good relationships with the workforce and motivate them along the way.

Management Styles

Management style (or leadership style) is the method used by the manager to manage an organisation or a group of people.

There are four main management styles:

  • Autocratic
  • Democratic
  • Paternalistic
  • Laissez-faire

1. Autocratic Management

Autocratic management is a one-way management style. Managers can make decisions and staff follow. Employees have little say in the decision-making process.

Autocratic management is the management style where managers take full control of the organisation.

This management style is characterised by:

  • One-way communication.

  • Close employee supervision.

  • Limited information is given to the staff.

Autocratic management demotivates staff since they can't contribute to the decision-making of the company. The decisions made are also rigid and lack innovation without input from employees.

Areas that require quick decisions will make the most use of this leadership style, e.g. the military and the police force.

2. Democratic Management

Democratic management encourages the participation of staff in decision-making. Staff input is highly valued and can lead to innovative ideas or solutions.

Democratic management is the management style where both managers and staff participate in decision-making.

This kind of management is characterised by:

  • Two-way communication.

  • Instant feedback from staff.

  • More exchange of business information.

The main disadvantage of democratic management is that discussion with staff can be time-consuming. In addition, too much involvement of staff can lead to interpersonal conflicts or disclosure of secret information.

This leadership style is most useful for businesses that require constant innovation such as tech companies. Input from different employees can give rise to a new way of thinking and novel solutions.

3. Paternalistic Management

As the name suggests, paternalistic managers are like father figures. They will consult the staff and take in their opinions but will make decisions independently.

Paternalistic management is the management style where managers approach staff for their input but won't engage them in decision-making.

Main features of paternalistic management:

  • Managers do what they think is best for the organisation.

  • Decisions are made by managers, not employees.

  • Managers are concerned about the happiness of the employees.

This leadership style may cause disappointment among experienced staff since they have no real power or influence in the company. However, in work environments dominated by unskilled or low-experienced workers, paternalistic management can be extremely helpful.

4. Laissez-Faire Management

Laissez-faire is the French phrase for "allow to do". When this approach is adopted, managers give workers the full right to make decisions and carry out the tasks.

Laissez-faire is the management style that gives employees full control over the decision-making process.

With laissez-faire management:

  • Management delegates full decision-making to employees.

  • there are very broad criteria to what is expected from the staff.

The lack of structure may cause confusion to the staff. Some employees may feel dissatisfied with the lack of feedback from their managers.

This kind of leadership is adopted when the managers are too busy to engage in the decision-making or want to give experts more space to arrive at the solution.

How to choose a suitable management style

Management style can be determined via two methods:

  • Tannenbaum and Schmidt's continuum

  • The Blake Mouton grid

Tannenbaum and Schmidt's continuum is a range of potential management styles. Leadership style is chosen based on a variety of factors such as the leader's characteristics and the qualities of subordinates.

The range of actions are chosen based on:

  • The degree of authority used by the manager.

  • The area of freedom available to subordinates.

Blake Mouton's grid determines leadership styles based on the leaders' concern for people and concern for results.

The combinations of these two elements give us five leadership styles:

  • Impoverished management – Low results/Low people - This management style emphasises getting the job done with little concern for employee satisfaction
  • Produce-or-perish management – High results/Low people - This management approach is adopted by autocratic leaders who care more about the results and people. Team members are only a means to an end. They come after productivity.
  • Country-club management – Low results/High people - This management style put people before anything else. The work environment is fun and relaxed, though there might be a lack of control or direction.
  • Team management – High results/High people - This is the most effective management style where managers are concerned about both their team and work performance. They will do their best to motivate team members to stretch their limits to deliver the best results.
  • Middle-of-the-road management – This management style tries to achieve a balance of results and people. However, it may not be the best approach since both people and results are not the best as they could be.

Principles of Management

There are five different principles of management which are also named management functions. These are the principles that a manager follows to manage employees effectively.

Planning

Firstly, managers need to make an action plan of how organisational objectives can be achieved. The action plan could involve strategic decisions such as hiring new staff, changing or adjusting management techniques or increasing the marketing budget. Planning helps business managers realise the organisation's vision, plan the budget, be aware of required resources and avoid costly mistakes.

Organising

Once the planning is done, managers should organise their staff and resources to allocated positions. The organisational structure must be arranged as it will help managers identify gaps and any additional resources required.

Managers may need to hire new staff, promote other staff to higher positions and realise that additional training is required to fill in all the gaps in the organisation's structure.

Commanding

Once the planning and organising are carried out, managers should assign roles to individual employees. Managers should treat employees with respect and ensure that they are happy to undertake the assigned role. This process of assigning tasks is also called delegation.

Coordinating

Managers need to coordinate the employees. Managers should assist or explain a certain task if needed. Managers should encourage and motivate employees to achieve their organisational goals. The coordination and communication should flow between employees and functional departments.

Controlling

The manager should set the standard for expected performance in the organisation and employees' activities. Managers should assess employees' performance regularly and ensure that they are meeting set targets. If a target is not met, managers must analyse the reasons for it and give additional support to employees if necessary.

Managers, 5 principles of management, StudySmarterFigure 3. The Five Principles of Management

Project Management

Managers can apply their skills, knowledge, and experience in management to manage a project. This is called project management. The goal of project management is to reach the set objectives within the agreed timescale and budget.

Project management is the way managers use resources to deliver a particular project that will bring value to the organisation.

Projects managers should have a range of project management skills that are technical and transferable. They should be great problem solvers, have high adaptivity and interpersonal skills to adapt to different project needs.

What are the Stages of Project Management?

There are five stages of project management from the beginning to the completion of the project.

Initiation of the project

This is the beginning stage of the project management process. At this stage, the project and its goals are defined. Additionally, the stakeholders that will be involved in the project are identified.

Project planning

At this stage, the execution will be planned carefully. That includes budgets, timelines, resources needed and clear goals that could be defined using SMART analysis. This step should also make sure the stakeholders are aware of their duties and deadlines. Moreover, any risks and their possible solutions should be identified at this project management stage.

To learn more about SMART goals take a look at Business aims and objectives.

Project execution

This is the stage where the team is working on the project and aiming to meet the set timely deadlines. The project manager must ensure that all stakeholders are on the same page with the project to ensure that everything runs smoothly.

Project monitoring and controlling

At this project management stage, the manager should frequently monitor whether the project has met its set timely goals; goals can refer to timelines, budgets to revenue. Additionally, project managers should ensure that stakeholders are happy and satisfied with how the project is going. Crucially, the project manager should ensure that the project is coming along within the set budget.

Project completion

In this stage, the project is completed. The project manager should organise a meeting with all the stakeholders that were involved in the project. In this meeting, the project should be reflected on at each stage, so the team understands what parts of the project went well and what required improvements. This reflection is crucial for future references as project managers can learn from it and deliver more effective projects in the future.

Management - Key Takeaways

  • Management is a combination of coordination and control of a group of people to achieve organisational goals and objectives.

  • There are five principles of the management process. They include planning, organising, commanding, coordinating, and controlling.
  • There are a variety of management styles that are created to fit different businesses and people. These include autocratic, democratic, paternalistic, and laissez-faire management.
  • There are a variety of management skills that are needed for managers to manage the workforce effectively. These management skills include technical, conceptual and interpersonal skills.
  • Project management is the way someone organises resources to deliver a particular project. There are five stages of project management, they include 1) Initiation, 2) Project planning, 3) Project execution, 4) Project monitoring and controlling, and 5) Project completion.

Management

Management is a process in which an individual or a small group of people coordinates and controls others to achieve a specific set of goals. Alternatively, a group of top-level managers can also be referred to as management in the organisation.

Management is the coordination and control of subordinates to achieve the set goals and objectives. Management is an essential process that every organisation needs to achieve its organisational goals by managing employees effectively. Additionally, a group of top-level managers in the organisation can also be referred to as management.

There are a variety of types of management, the three key ones are Autocratic, Paternalistic and Democratic

Managers are responsible for managing people and resources in the best effective way possible to achieve organisational goals. Depending on the manager’s level their duties differ. For example, managers at the functional level are responsible for assigning duties for individuals and managers at the senior level make strategic decisions.

The five principles of management are: 1) Planning, 2) organising, 3) commanding, 4) coordinating 5) controlling.

Final Management Quiz

Question

What is the definition of management?

Show answer

Answer

Management is the coordination and control of people to achieve organisational goals. As well as a group of top-level managers in the organisation can be referred to as management.

Show question

Question

Why is management important in an organisation?

Show answer

Answer

Management is important because people in the organisation need to be coordinated, controlled and motivated to achieve the organisational goals. Without management, employees will not be aware of what their tasks and responsibilities are and if they are done correctly. Without management, an organisation can not function properly and organisational goals will not be set or met.

Show question

Question

What are the key management skills?

Show answer

Answer

There are three key management skills which are technical, conceptual and interpersonal.

Show question

Question

Why is it important for managers to select the best-fitted management style?

Show answer

Answer

The manager must select the management style that is best fit for the business and management of the workforce. By selecting a well-fitted management style manager can increase the effectiveness of employees as they will be more motivated to work towards organisational goals.

Show question

Question

What is the meaning of management principles?

Show answer

Answer

Management principles are the detailed process of management from start to finish. By following management principles process managers can manage their workforce effectively.

Show question

Question

What is another term used to name management principles?

Show answer

Answer

Management principles are also called management functions.

Show question

Question

What are the management principles?

Show answer

Answer

There are five principles of management. They are: 1) planning, 2) organising, 3) commanding, 4) coordinating 5) controlling.

 

Show question

Question

What happens in the commanding stage of management principles?

Show answer

Answer

At this stage, managers are assigning roles and tasks for employees. Managers must make sure that employees are happy with the roles and responsibilities that they were assigned to.

Show question

Question

What is project management?

Show answer

Answer

Project management is the way an individual organises and manages resources to deliver a particular project.

Show question

Question

What are the stages of project management?

Show answer

Answer

There are five stages of the project management process which covers the project from its beginning to completion. They are 1) Initiation, 2) Project planning, 3) Project execution, 4) Project completion.

 

Show question

Question

What is the difference between general management and project management?

Show answer

Answer

The main difference between management and project management is that management is when a manager controls and coordinates employees regarding organisational operations to achieve specific goals or targets. Project management is not the management of ordinary organisational activities. Each project has its unique targets and objectives. Projects have their start and finish dates.

Show question

Question

Technical skills are also called...

Show answer

Answer

hard skills.

Show question

Question

These skills are usually important for the lower-level managers and lose their importance at the senior level. What skills are these?


Show answer

Answer

Technical skills

Show question

Question

__ skills are the combination of communication skills, creative thinking, problem-solving, etc.


Show answer

Answer

Conceptual 

Show question

Question

___ skills mean that managers can understand their employees and tailor the best-fitted management styles according to employees' needs.


Show answer

Answer

Interpersonal

Show question

Question

In this management style managers take full control of the organisation. What management style is it?

Show answer

Answer

Autocratic management

Show question

Question

This is the management style where managers approach staff for their input but won't engage them in decision-making. What management style is it?

Show answer

Answer

Paternalistic management

Show question

Question

This kind of management is characterised by:

  • Two-way communication.
  • Instant feedback from staff.
  • More exchange of business information.

What management style is it?

Show answer

Answer

Democratic management

Show question

Question

___ is the way managers use resources to deliver a particular project that will bring value to the organisation.

Show answer

Answer

Project management

Show question

Question

What is the first stage of project management?

Show answer

Answer

Initiation of the project

Show question

Question

Conceptual skills are more relevant to top-level managers, as they are responsible for making strategic decisions that impact the whole organisation.

Show answer

Answer

True

Show question

Question

Management style and leadership style are terms that can be used interchangeably. 

Show answer

Answer

True

Show question

Question

Main features of ___ management: 

  • Managers do what they think is best for the organisation.
  • Decisions are made by managers, not employees.
  • Managers are concerned about the happiness of the employees.

Show answer

Answer

paternalistic

Show question

Question

Laissez-faire is the French phrase for...


Show answer

Answer

"allow to do". 

Show question

Question

What does the graphic present?


Show answer

Answer

The Five Principles of Management

Show question

Question

What is the last stage of project management?

Show answer

Answer

Project completion 

Show question

60%

of the users don't pass the Management quiz! Will you pass the quiz?

Start Quiz

Discover the right content for your subjects

No need to cheat if you have everything you need to succeed! Packed into one app!

Study Plan

Be perfectly prepared on time with an individual plan.

Quizzes

Test your knowledge with gamified quizzes.

Flashcards

Create and find flashcards in record time.

Notes

Create beautiful notes faster than ever before.

Study Sets

Have all your study materials in one place.

Documents

Upload unlimited documents and save them online.

Study Analytics

Identify your study strength and weaknesses.

Weekly Goals

Set individual study goals and earn points reaching them.

Smart Reminders

Stop procrastinating with our study reminders.

Rewards

Earn points, unlock badges and level up while studying.

Magic Marker

Create flashcards in notes completely automatically.

Smart Formatting

Create the most beautiful study materials using our templates.

Sign up to highlight and take notes. It’s 100% free.