Management Skills
UNIT 3
Overview
Management Skills:
 Leadership
 Motivation
 Communication
Leadership
Leadership involves…
 Direction
 Delegation
 Coordinating
 Motivating
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.
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.
The three types of leader are:
 Autocratic
 Democratic
 Laissez-faire
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.
Autocratic Leaders
 Motivate by fear.
 Worker morale may low under this type of leader.
 Example: Hitler
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.
Democratic Leader
 Motivates by encouraging and including all staff.
 Worker morale will be high as they feel valued.
 Example: Barak Obama
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.
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.
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.
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.
Dangers of not delegating
 Overload
 Work not completed within the timeframe required
 Staff do not improve their skills/experience
Motivation
Motivation
 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.
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
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.
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.
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.
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.
Sample Exam Question: 2009 Q 4 (b)
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.
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.
Challenge,
promotion, courses
Performance
appraisal, job title
Friends,
teamwork
Contract,tenure
Job, food,
water, shelter
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.
Benefits of motivation
 Higher morale
 Better productivity
 Less absenteeism
 Less conflict, better industrial relations
 Better communication and trust
 Spirit of intrapreneurship
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
Communication
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
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
Types of Communication
External communication is needed to deal with all
other stakeholders, e.g.:
 Investors
 Government agencies
 Suppliers
 Producers
 Society
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
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.
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.
Visual Communication
Using charts, graphs, videos and television to give a
messages internally & externally.
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)
Bar Chart 2005 SQ 10, 2003 SQ 10
 A bar chart is a series of bars.
 It is used for comparing quantities.
Line/Trend Graph
 A line/trend graph is a chart that uses lines.
 It is used for showing changes over time.
Pie Charts
 A pie chart is a circle divided into segments.
 It is used to show percentages or proportions.
Visual Communication
Advantages
Disadvantages
 Easy to understand
 Some people may not
understand
 Shows trends and
comparisons
 Takes time to prepare
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
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
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…
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
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.
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….
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.
Drawbacks of ICT
 Costs: Hardware, software, training.
 Redundancies: Workers & middle management
 Health issues: RSI, eyesight, etc.
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).
Spreadsheets 2000 SQ 5
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.
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
Modem
 Computers need a modem to communicate with
other computers through the telephone lines.
 It converts digital signals to analog signals.
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
Video-conferencing: 2009 Q 6, 1999 SQ 3
 TV and computer link up via satellite of sound &
pictures for meetings without travel.
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.
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.
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
Obligations of Data Controllers (SCOUR)
1.
2.
3.
4.
5.
Provide security: keep data protected against
unauthorised access (locked filing cabinet,
password protected laptop, etc.)
Provide a copy of data within 40 days of a
written request
Obtain information fairly and openly
Use data only for specific purpose intended
Register – keep a register of all data kept
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.
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
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?