CIE As Level Business | 2.3 Management - HRM

Management

The *organisation + coordination* of activities in order to achieve the defined objectives of the business.

Manager

The person responsible for setting *objectives*, organising *resources* and *motivating* workers so that the objectives of the business are met.

Fayol's Five Functions of Management

1. *PLANNING*

—> Setting objectives + deciding how to achieve them.

2. *ORGANISING*

—> Arranging resources to implement plans.

3. *COMMANDING*

—> Giving instructions + guiding employees.

4. *COORDINATING*

—> Ensuring all parts of the business work together.

5. *CONTROLLING*

—> Monitoring performance + making decisions.

Mintzberg's Role of Managers

Categorised managerial roles into *3 groups*:

1. *Interpersonal*

—> Focus on *motivation + dealing w/ employees* and sometimes *external stakeholders*.

2. *Informational*

—> Involve the *collection + communication + presentation of information* within and outside the business.

3. *Decisional*

—> Focused on *making decisions* + *organising resources*.

What are the *interpersonal roles*?

1. Acting as a *FIGUREHEAD*

—> E.g. Appearing in press conferences + hosting product launches + being the 'face' of the business.

2. Being a *LEADER* and enthusing others

—> E.g. Be available to meet staff + encourage + praise employees.

3. *LIAISON* with others inside and outside the business

—> E.g. Communicate with stakeholders + participate in events + respond to complaints.

What are the *informational roles*?

1. Being a *MONITOR* + collector of relevant information.

—> e.g. Attend conferences, keep up-to-date with industry research.

2. Acting as a *DISSEMINATOR* of information to both subordinates and other key stakeholders.

—> e.g. Share key developments with staff, calm fears + communicate.

3. Being the business *SPOKESPERSON*

—> e.g. Lead seminars, communicate with the media and government.

What are the *decisional roles*?

1. Being an *ENTREPRENEUR* on behalf of the business.

—> e.g. Bring new ideas + empowering others to become intrapreneurs.

2. Acting as a *DISTURBANCE HANDLER* during periods of upheaval or change.

—> e.g. Determine rapid responses in crisis situations, act as a key point of contact.

3. Being a *RESOURCE ALLOCATOR* to ensure adequate financial + physical resources are available.

—> e.g. Determine budgets + source staff

What are the 4 management styles?

1. Autocratic Management

2. Laissez-faire

3. Democratic

4. Paternalistic

Autocratic management

A management style where one manager takes all decisions with very little, if any, input from others.

*Advantages* of Autocratic Management

1. *Fast decision-making*

→ Manager makes decisions *alone* without consultation

→ ✅: Saves *time* → useful in *crisis situations*

2. *Clear direction and control*

→ Employees are given *specific instructions*

→ ✅: Reduces *confusion* → improves *efficiency*

3. *Useful for unskilled workforce*

→ Workers may need *guidance + supervision*

→ ✅: Ensures tasks are completed *correctly*

4. *High productivity (short-term)*

→ Close supervision ensures *work is done*

→ ✅: Increases *output* quickly

5. *Strong leadership*

→ Clear *authority + responsibility*

→ ✅: Maintains *discipline + order*

*Disadvantages* of Autocratic Management

1. *Low employee motivation*

→ Workers have *little involvement* in decisions

→ ❌: Reduces *job satisfaction* → lowers *productivity*

2. *Poor communication*

→ *One-way communication* from manager to employees

→ ❌: Limits *feedback + ideas*

3. *High labour turnover*

→ Employees may feel *undervalued*

→ ❌: Leads to *resignations* → increases *recruitment costs*

4. *Over-reliance on manager*

→ All decisions depend on *one person*

→ ❌: *Slows operations* if manager is *unavailable*

5. *Lack of creativity and innovation*

→ Employees are not encouraged to *contribute ideas*

→ ❌: Reduces business *innovation*

Democratic management

A management style that encourages the active participation of workers in taking decisions.

*Advantages* of Democratic Management

1. *Higher employee motivation*

→ Employees are involved in *decision-making*

→ ✅: Increases job *satisfaction* → improves *productivity*

2. *Better quality decisions*

→ Input from *multiple* employees

→ ✅: More *ideas + perspectives* → improves decision *quality*

3. *Improves communication*

→ *Two-way communication* between managers and employees

→ ✅: Reduces misunderstandings → strengthens teamwork

4. *Lower labour turnover*

→ Employees feel valued and involved

→ ✅: Increases loyalty → reduces recruitment costs

*Disadvantages* of Democratic Management

1. *Slow decision-making*

→ Consultation takes time

→ ❌: Delays *important decisions*

2. *Not suitable in crisis situations*

→ Urgent decisions require speed

→ ❌: Can reduce *responsiveness*

3. *Possible conflict*

→ Different opinions among employees

→ ❌: Leads to *disagreements* → affects *team harmony*

4. *Employees may lack expertise*

→ Not all employees have the *knowledge* to contribute effectively

→ ❌: May result in *poor decisions*

5. *Reduced control for managers*

→ Power is *shared* with employees

→ ❌: Managers may find it harder to *maintain authority*

Paternalistic management

A management style based on the view that the manager is in a better position than the workers to know what is best in an organisation.

*Advantages* of Paternalistic Management

1. *High employee loyalty*

→ Managers act in employees' *best interests* (like a "parent")

→ ✅: Builds *trust* → reduces *labour turnover*

2. *Improves motivation and morale*

→ Employees feel *cared for + valued*

→ ✅: Increases *job satisfaction* → boosts *productivity*

3. *Low conflict levels*

→ Employees trust *management* decisions

→ ✅: Reduces *industrial disputes* → improves *stability*

4. *Clear leadership with support*

→ Manager makes decisions but considers *employee welfare*

→ ✅: Maintains *control* while *supporting staff*

*Disadvantages* of Paternalistic Management

1. *Employees have limited input*

→ Decisions are still made by *managers*

→ ❌: May reduce *motivation* for some workers

2. *Can feel controlling*

→ Managers act in a "parent-like" way

→ ❌: Employees may feel *restricted / undervalued*

3. *Depends on manager's judgement*

→ Decisions are based on what the manager thinks is best

→ ❌: May not reflect actual *employee needs*

4. *Not suitable for all cultures or workers*

→ Some prefer *independence + autonomy*

→ ❌: Reduces *effectiveness* in certain environments

5. *May limit creativity*

→ Employees are not fully involved in decisions

→ ❌: Reduces *innovation + idea generation*

Laissez-faire management

A management style that leave much of the business decision-making to the workforce.

*Advantages* of Laissez-Faire Management

1. *High employee motivation*

→ Employees have *freedom + independence*

→ ✅: Increases *job satisfaction* → improves *performance*

2. *Encourages creativity and innovation*

→ Workers can make their *own decisions*

→ ✅: Leads to *new ideas* → benefits *business growth*

3. *Suitable for skilled workforce*

→ Experienced employees can manage their *own work*

→ ✅: Improves *efficiency* → reduces need for *supervision*

4. *Develops employee skills*

→ Workers take *responsibility* for decisions

→ ✅: Builds *confidence + expertise*

5. *Reduces management workload*

→ Managers *delegate* decision-making

→ ✅: Allows focus on *strategic tasks*

*Disadvantages* of Laissez-Faire Management

1. *Lack of direction*

→ *Minimal guidance* from managers

→ ❌: Can lead to *confusion* → reduces *productivity*

2. *Poor coordination*

→ Employees work *independently*

→ ❌: May result in *inconsistency* → affects *efficiency*

3. *Not suitable for unskilled workers*

→ Requires *self-discipline + experience*

→ ❌: Leads to *mistakes* → lowers *output quality*

4. *Low accountability*

→ Responsibility is *unclear*

→ ❌: Difficult to *monitor performance*

5. *Risk of reduced productivity*

→ Some employees may *take advantage* of freedom

→ ❌: Leads to *lower effort* → reduces *overall output*

McGregor's Theory X

- Assumes employees *dislike work* + *avoid responsibility*

- Need *strict* supervision, control, and direction

- Motivation through *financial rewards + punishment*.

McGregor's Theory Y

- Assumes employees *enjoy work* + *seek responsibility*

- Can *self-motivate* and be *creative*

- Motivation through *empowerment + trust + non-financial rewards*.