Business_Management

Business Management 1A Assignment 5/23/2011 Varsity College Sandton Xoliswa Skosana Managing In Different Areas Of the Organisation What is a manager' According to the South African pocket Oxford dictionary: A manager is a person that manages staff, an organization, or sports team. A person that is in charge of the business affairs of a sports player or actor, etc. (Soanes. C,2002). A manager is a person who manages a company on a daily basis. He has to over see very little detail in an organization. A manger manages in different areas of an organization, these include the following: * The Administration Department provides administrative support to the agency's engineering functions through five offices: Acquisitions, Budget, General Services, Financial Services Division and Information Management, which oversees the Communications and Records Office. (http://www.ibwc.gov/Organization/Administration/Index.html) * Provision of offices for all staff. * Provision of all office equipment for use by staff e.g. Computers. * Ensuring a clean and secure office environment. * Ensuring availability of adequate lighting, water, telecommunication, email, fax, computers etc. * Providing, where possible, designated parking for vehicles. * Ensuring availability of stationery. * Ensuring availability of adequate photocopying services/facilities. * Setting of internal operating rules. (http://www.unra.go.ug) * At the top of the administrative department is someone with the title of or similar to office manager. This person will not only perform her own allotted duties, but may also manage a team of administrative staff on a daily basis. (http://www.ehow.com/list_6733290_administration-department-duties.html) * While they performing a variety of office functions, compiling and disseminating documents is the primary duty for administrative assistants and managers. (http://www.ehow.com/list_6733290_administration-department-duties.html) * In many businesses, an administrative staff member is the first person a guest or client may see when they enter. This person is normally called a secretary, administrative assistant, or customer service manager. (http://www.ehow.com/list_6733290_administration-department-duties.html) * Maintaining order within the office environment is accomplished in large part by properly filing away documents, photographs, and any other items that are not meant for public viewing and that contain important information about the company. Filing can be done alphabetically, numerically, or by another system. (http://www.ehow.com/list_6733290_administration-department-duties.html) * It is duty of finance department of company to make the budget before actual providing money to any department. It will be helpful to fulfill each department with minimum cost. Finance department can take the past records from respective department. It will be useful for making better budget. (http://www.svtuition.org/2010/05/function-of-finance-department.html) * In this function finance department gets money from capital market at very low risk and cost. Finance department analyzes all the resources of funds and create a good financial structure of company. In this structure, finance department analyze whether it will decrease the overall cost of capital on Average basis or not. (http://www.svtuition.org/2010/05/function-of-finance-department.html) * After making financial structure, finance department invests debenture holders and shareholders money in best projects for getting highest return on investment. For this finance department has to take investment decision. These investment decisions can be taken with the help of capital budgeting and investment analysis techniques. (http://www.svtuition.org/2010/05/function-of-finance-department.html) * Management of taxes is also the function of finance or finance department. Taxes may be direct or indirect. Finance department continue watches the amendments and updates in tax laws and also create good corporate relation with government by paying return of corporate tax on the time. (http://www.svtuition.org/2010/05/function-of-finance-department.html) * Finance department takes many measures for managing the financial risks of company. For reducing loss of fund due to happening liquidity, solvency or financial disaster, finance department makes a good plan and also takes the help of debt collectors, insurance companies and other rating agencies for reducing financial risk. (http://www.svtuition.org/2010/05/function-of-finance-department.html) * For creating good brand in the market, financial department works with marketing department and both takes the steps of merge and acquisition action. Main aim of merge or acquisition is to reduce competition and spread on brand in the market. Finance department provides the money for takeover any other firm for estimating its long run return. (http://www.svtuition.org/2010/05/function-of-finance-department.html) * Human Resources is exactly it says: resources for humans – within the workplace! Its main objective is to meet the organizational needs of the company it represents and the needs of the people hired by that company. In short, it is the hub of the organization serving as a liaison between all concerned. (http://www.streetdirectory.com/travel_guide/12514/careers_and_job_hunting/how_hr_works_to_get_the_job_done.html) * Depending on the size of the company, the HR Department might be called Personnel with a manageable workforce that can be handled by a personnel manager and a small staff. For larger, more complex organizations with hundreds of departments and divisions, the task is much more demanding, taking on a life of its own. (http://www.streetdirectory.com/travel_guide/12514/careers_and_job_hunting/how_hr_works_to_get_the_job_done.html) * Some companies have more than one HR Department - Corporate and Union . For example, a food service industry might have a Corporate HR Department that oversees “white collared" employees and an HR Department that oversees the “blue collar" workforce with an emphasis on labor relations. The organization will, thus, institute these two HR Departments to manage the unique needs of both union and non-union employees. (http://www.streetdirectory.com/travel_guide/12514/careers_and_job_hunting/how_hr_works_to_get_the_job_done.html) * The marketing department function is mainly to help market the product of a certain company. Mainly to make people aware that there is a particular product on the market. * The first area of responsibility for marketing is to contribute to the leadership of the company. From product development to making invoices easier to read, marketing should provide leadership on how to better serve the customer. (http://www.marketingplan.net/marketing-responibilities) * Sales support is a critical responsibility of marketing. Sales support is part of the sales team and often it is the weakest link when it comes to closing the deal. Without sales, no one gets paid. Generating enough leads/foot-traffic, collateral material that helps persuade prospects. (http://www.marketingplan.net/marketing-responibilities) * Possibly the most recognized component of marketing is advertising. Advertising is the promotion of a product/service/company. Usually it’s done through magazines, TV, classifieds, search engines, email, newspaper, billboards, etc. This is one of the most trickiest areas of marketing as you can waste a lot of money very quickly. (http://www.marketingplan.net/marketing-responibilities) * Building and maintaining strong customer relationships is seen as a core function of marketing. (http://www.marketingplan.net/marketing-responibilities) * Operating department is a department or similar unit in an organization within which the central purposes of the organization are carried out.(http://www.accountingformanagement.com/operating_department_definition.htm) * The operations department of a company, often called the corporate department or group, is a collection of business support functions: human resources, information technology, finance and accounting, legal and procurement. Though this department does not generate revenue, the tasks that operations performs are required for business to be conducted. (http://www.ehow.com/facts_5991460_duties-operations-department_.html) Management Skills In order to properly understand the definition of management skills, we need to first break the words and define the words management and skills. According to the South African Pocket Oxford Dictionary. Management is defined as; the action of managing. The managers of an organization. And skills is defined as; the ability to do something well. A particular ability. There are three core skills a manager need to have. They are: * Conceptual * Human or Interpersonal * Technical I will further look into these three skills by discussing them. Firstly, I will discuss conceptual. Conceptual Managers need conceptual skills in order to plan and organise within an organization. This type of skill refers to the ability to focus on the big picture, that is, the entire organization and the business environment with which it interacts. This is the ability to focus on the future and look beyond the situation immediately at hand. (IIE,2011) Conceptual Skills are the skills managers must have to think and to conceptualize about abstract and complex situations. Using these skills, managers must be able to see the organization as a whole, understand the relationships among various subunits, and visualize how the organization fits into its broader environment. These skills are most important at the top level management. (http://www.accountingformanagement.com/conceptual_skills_definition.htm) Human (Interpersonal) Interpersonal skill also called human skills, refers to the skills the manager need to manage interpersonal interaction effectively. Having these skills means that a manager will be able to motivate his staff, communicate clearly with them, provide leadership, influence the behavior of the teams or groups, negotiate and even discipline them. (IIE,2011) Interpersonal skills are the skills we use to interact or deal with others. Interpersonal skills are sometimes also referred to as communication skills, people skills and/or soft skills. How we deal with others can greatly influence our professional and personal lives, improving these skills builds confidence and enhances our relationships with others. (http://www.volstudy.ac.uk/Interpersonal_Skills.html) Technical Technical skills involve process or technical knowledge. A manager's technical skills refer to the ability to implement the management process. An accountant's technical skill will be the knowledge if the techniques and processes involved in accountancy. The technical skills of an operations manager will be the skills to design the layout of a factory, calculate the time it should take to do a specific task, to do quality checks and so on. (IIE,2011) Developed capacities used to design, set-up, operate, and correct malfunctions involving application of machines or technological systems. (http://www.onetonline.org/find/descriptor/browse/Skills/2.B.3/) But there are other skills a manager need to have in order to run a business successfully on a regular basis. These skills are: * Communication * Planning and Administration * Teamwork * Strategic Action * Global Awareness * Self Management * Crisis Management I will be discussing these skill further. Communication Refers to the effective transfer and exchange of information that leads to the understanding between the manager and staff, this also includes informal communication, formal communication and negotiation. (IIE,20011) On a daily basis we work with people who have different opinions, values, beliefs, and needs than our own. Our ability to exchange ideas with others, understand others' perspectives, solve problems and successfully utilize the steps and processes presented in this training will depend significantly on how effectively we are able to communicate with others. The act of communicating involves verbal, nonverbal, and paraverbal components. The verbal component refers to the content of our message‚ the choice and arrangement of our words. The nonverbal component refers to the message we send through our body language. The paraverbal component refers to how we say what we say - the tone, pacing and volume of our voices. (http://www.directionservice.org/cadre/section4.cfm) Planning and Administration Involves the decision that of which tasks are to be done, how they will are done and resources needed to do them, monitoring the process and the tasks being completed. (IIE,2011) Teamwork Tasks are often performed in groups or teams and therefore a manager has to be able to manage people working together. (IIE,2011) Teamwork has become an important part of the working culture and many businesses now look at teamwork skills when evaluating a person for employment. Most companies realize that teamwork is important because either the product is sufficiently complex that it requires a team with multiple skills to produce, and/or a better product will result when a team approach is taken. Therefore, it is important that students learn to function in a team environment so that they will have teamwork skill when they enter the workforce. (http://www.ndt-ed.org/TeachingResources/ClassroomTips/Teamwork.htm) Strategic Action The management of an organization works toward the goals of the business driven by the mission and vision of the company. Understanding that these strategic aspects is of crucial importance. The strategic action skill requires the manager to understand the industry they function in, the organization and the taking of strategic action where required. (IIE,2011) Global Awareness Working with diverse cultures and customers requires that the manager has to have knowledge on an array of cultures, ensuring that there is a better understanding for, as well as sensitivity towards these cultures. (IIE,2011) Self Management Managers have to be able to take responsibility for their time spent at work, including ethical behavior, resilience, a healthy balance of work and play, and self development. (IIE,2011) Self-management skills tell an employer whether or not your personality fits the personality of the company, the bosses, and the co-workers. Over 50 percent of the people who are not successful on the job have trouble with their co-workers and bosses, so its important for you to show employers how you fit into their operations. Many employers would rather hire an inexperienced worker with good self-management skills than an experienced worker who might cause problems. If you are not sure what kind of management skills you have, do the exercise on the following pages. This exercise will help you identify your strongest self-management skills. Review this list of self-management skills and check any three that you believe you exhibit over 50% of the time. Place a second check next to the 10 skills that you believe would be most important in the next job you have that meets your primary job objective. (http://www.wisconsinjobcenter.org/publications/8960/8960.htm) Crisis Management Handling of crises is part and parcel of the normal day to day running of any business, either by planning to avoid them or avoiding them. (IIE,2011) Charismatic Leader A Charismatic leader is one who provides an environment full of energy and positive reinforcement. If you are naturally charismatic, you are very fortunate! This is a trait that is not so easily learned. (http://homeworktips.about.com/od/studymethods/ss/leadership_4.htm) Charismatic leaders inspire others and encourage them to be their best. Employees and group members want to impress a charismatic leader, so they work hard and strive to succeed. (http://homeworktips.about.com/od/studymethods/ss/leadership_4.htm) Pitfalls of Charismatic Leadership Under charismatic leadership, group members may view success in relation to their leaders. A major problem with charismatic leadership is that group success tends to hinge on the leader. The charismatic leader is the glue that holds a group together. So what happens if the leader should have to step down or transfer' Normally, the group dynamic will fizzle and individual members will lose enthusiasm. (http://homeworktips.about.com/od/studymethods/ss/leadership_4.htm) When Is Charismatic Leadership Most Useful' Charismatic leadership is great for short-term projects. As long as you are working on a task that can be completed in a semester, you don’t have to worry so much about your group falling apart with the loss of leadership. (http://homeworktips.about.com/od/studymethods/ss/leadership_4.htm) Charismatic leaders are great for projects that require energy and talent. Drama assignments, writing assignments, sports-related tasks, art projects—these activities could be very successful when led by a charismatic person. (http://homeworktips.about.com/od/studymethods/ss/leadership_4.htm) Can charisma be learned' Charisma is a special quality that people possess that serves as a magnet, of sorts, but it is really made up of many traits. One of the most important element is self-confidence. People who appear confident instill confidence in those around them. Another element of charisma is great communication ability—and that starts with a strong and effective vocabulary. (http://homeworktips.about.com/od/studymethods/ss/leadership_4.htm) It would be a great idea to build upon those elements to make yourself as charismatic as possible! (http://homeworktips.about.com/od/studymethods/ss/leadership_4.htm) For me I think that Nelson Mandela is a charismatic leader, because he fought for all of us ever since he went into politics. He has influenced everyone who is anyone. He is also admired all over the world. Transformational Leader Have you ever been in a group situation where someone took control of the situation by conveying a clear vision of the group’s goals, a marked passion for the work and an ability to make the rest of the group feel recharged and energized' This person just might be what is called a transformational leader. (http://psychology.about.com/od/leadership/a/transformational.htm) Transformational leadership is a type of leadership style that leads to positive changes in those who follow. Transformational leaders are generally energetic, enthusiastic and passionate. Not only are these leaders concerned and involved in the process; they are also focused on helping every member of the group succeed as well. (http://psychology.about.com/od/leadership/a/transformational.htm) The History of Transformational Leadership The concept of transformational leadership was initially introduced by leadership expert and presidential biographer James MacGregor Burns.1 According to Burns, transformational leadership can be seen when “ leaders and followers make each other to advance to a higher level of moral and motivation." Through the strength of their vision and personality, transformational leaders are able to inspire followers to change expectations, perceptions and motivations to work towards common goals. (http://psychology.about.com/od/leadership/a/transformational.htm) Later, researcher Bernard M. Bass expanded upon Burns original ideas to develop what is today referred to as Bass’ Transformational Leadership Theory.2 According to Bass, transformational leadership can be defined based on the impact that it has on followers. Transformational leaders, Bass suggested, garner trust, respect and admiration from their followers. (http://psychology.about.com/od/leadership/a/transformational.htm) The Components of Transformational Leadership Bass also suggested that there were four different components of transformational leadership. Intellectual Stimulation – Transformational leaders not only challenge the status quo; they also encourage creativity among followers. The leader encourages followers to explore new ways of doing things and new opportunities to learn. (http://psychology.about.com/od/leadership/a/transformational.htm) Individualized Consideration – Transformational leadership also involves offering support and encouragement to individual followers. In order to foster supportive relationships, transformational leaders keep lines of communication open so that followers feel free to share ideas and so that leaders can offer direct recognition of each followers unique contributions. (http://psychology.about.com/od/leadership/a/transformational.htm) Inspirational Motivation – Transformational leaders have a clear vision that they are able to articulate to followers. These leaders are also able to help followers experience the same passion and motivation to fulfill these goals. (http://psychology.about.com/od/leadership/a/transformational.htm) Idealized Influence – The transformational leaders serves as a role model for followers. Because followers trust and respect the leader, they emulate the leader and internalize his or her ideals. (http://psychology.about.com/od/leadership/a/transformational.htm) Mahatma Gandhi is a great example of a transformational leader, because he satisfied the needs of his followers.  But instead of riding those needs to power, he remained sensitive to a higher purpose.  His vision of leadership went beyond himself.  He believed in satisfying the needs of all that followed him. (http://psychology.about.com/od/leadership/a/transformational.htm) In my own view I think that Oprah Winfrey is a transformational leader, she has transformed many young girls, by giving them an education that will help them make something out of themselves. Transactional Leader Transactional leadership involves motivating and directing followers primarily through appealing to their own self-interest. The power of transactional leaders comes from their formal authority and responsibility in the organization. The main goal of the follower is to obey the instructions of the leader. The style can also be mentioned as a ‘telling style’. The leader believes in motivating through a system of rewards and punishment. If a subordinate does what is desired, a reward will follow, and if he does not go as per the wishes of the leader, a punishment will follow. Here, the exchange between leader and follower takes place to achieve routine performance goals. (http://www.managementstudyguide.com/transactional-leadership.htm) These exchanges involve four dimensions: Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide necessary resources, set mutually agreed upon goals, and provide various kinds of rewards for successful performance. They set SMART (specific, measurable, attainable, realistic, and timely) goals for their subordinates. (http://www.managementstudyguide.com/transactional-leadership.htm) Active Management by Exception: Transactional leaders actively monitor the work of their subordinates, watch for deviations from rules and standards and taking corrective action to prevent mistakes. (http://www.managementstudyguide.com/transactional-leadership.htm) Passive Management by Exception: Transactional leaders intervene only when standards are not met or when the performance is not as per the expectations. They may even use punishment as a response to unacceptable performance. (http://www.managementstudyguide.com/transactional-leadership.htm) The leader provides an environment where the subordinates get many opportunities to make decisions. The leader himself abdicates responsibilities and avoids making decisions and therefore the group often lacks direction. (http://www.managementstudyguide.com/transactional-leadership.htm) Assumptions of Transactional Theory Employees are motivated by reward and punishment. The subordinates have to obey the orders of the superior. The subordinates are not self-motivated. They have to be closely monitored and controlled to get the work done from them. (http://www.managementstudyguide.com/transactional-leadership.htm) Implications of Transactional Theory The transactional leaders overemphasize detailed and short-term goals, and standard rules and procedures. They do not make an effort to enhance followers’ creativity and generation of new ideas. This kind of a leadership style may work well where the organizational problems are simple and clearly defined. Such leaders tend to not reward or ignore ideas that do not fit with existing plans and goals. (http://www.managementstudyguide.com/transactional-leadership.htm) The transactional leaders are found to be quite effective in guiding efficiency decisions which are aimed at cutting costs and improving productivity. The transactional leaders tend to be highly directive and action oriented and their relationship with the followers tends to be transitory and not based on emotional bonds. (http://www.managementstudyguide.com/transactional-leadership.htm) The theory assumes that subordinates can be motivated by simple rewards. The only ‘transaction’ between the leader and the followers is the money which the followers receive for their compliance and effort. (http://www.managementstudyguide.com/transactional-leadership.htm) Transactional leaders make employees achieve organizational objectives through rewards and punishment Transformational leaders motivate and empower employees to achieve company’s objectives by appealing to higher ideals and moral values. (http://www.managementstudyguide.com/transactional-leadership.htm) Motivates followers by appealing to their own self-interest Motivates followers by encouraging them to transcend their own interests for those of the group or unit. (http://www.managementstudyguide.com/transactional-leadership.htm) The transactional style of leadership is viewed as insufficient, but not bad, in developing the maximum leadership potential. It forms as the basis for more mature interactions but care should be taken by leaders not to practice it exclusively, otherwise it will lead to the creation of an environment permeated by position, power, perks, and politics. (http://www.managementstudyguide.com/transactional-leadership.htm) In my perspective I think that Julius Malema is a transactional leader, because that he is the president of this country and that the world revolves around him. He is self centered and thinks for himself and not for others. Bibliography Anon, (2011). Administration Function. viewed on 17 May 2011. http://www.ibwc.gov/Organization/Administration/Index.html Anon, (2011). Administration Function. viewed on 17 May 2011. http://www.unra.go.ug Anon, (2011). 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