The Nature of Management

The Importance of Effective Management

Traditional definition of management: the process of coordinating a businesses resources to achieve its goals.

Contemporary definition of management: the process of working with and through other people to achieve business goals in a changing environment.

Every business needs effective management to succeed.

The role of effective management is to make sure the joint efforts of employees are directed towards achieving the goals of the business.

Roles of Management

According to Mintzberg a manager is required to act out many different roles.

Interpersonal - deal with people, lead and motivate, attend functions, communicate with employees.
Informational - gather and disseminate information, control and monitor, spokesperson, attend meetings.
Decision-making - solve problems and make choices, planning, organise research, resolve conflicts, prepare budgets, negotiate.

In general, effective managers are those who:
- possess a range of specific management skills
- are able to use these skills in a number of managerial roles.

Management Skills

Karpin Report (1995) identified a number of management skills.

People (soft) skills
• communication
• interpersonal skills

Adaptable to change
• proactive
• leadership

Visionary
• sense of purpose

Self-managing
• delegation
• time management

Team player
• team building
• facilitating

Ethical/high personal standards
• honest and fair

Strategic thinker
• conceptual skills
• decision making

Problem-solver
• analytical skills
• data analysis and interpretation

Responsibilities to Stakeholders

Stakeholders are groups and individuals who interact with the business and thus have a vested interest in its activities.

Many groups have an interest (a stake) in a business’s activities. Society expects businesses to accept responsibility to all stakeholders.