1º Economy Control

Unit 2.3

Leadership and management

Functions of management
1. Setting Objectives and planning (Set a goal)
2. Organising resources to meet the objectives
3. Directing and motivating staff
4. Coordinating activities (Do everything work together)
5. Controlling and increasing performances against targets (Why we did/not
heat goal)

Management vs. Leadership

- Boss: 1. Dives employees - Leader: 1. Coaches employees
2. Depends on authority 2. Depends on goodwill
3. Inspires fear 3. Generate enthusiasm
4. Says ``I´´ 4. Says ``we´´
5. Places blame for the breakdown 5. Fixes the breakdown
6. Knows how it is done 6. Showshow it is done
7. Uses people 7. Develops people
8. Takes credit 8. Gives credit
9.Commands 9. Asks
10. Say ``go´´ 10. Says ``let´s go´´
Autocratic leaders

- Make all decisions

- Share limited information
- Apply close supervision (You´re being watched to do your work right)
- Style that doesn't motivate employees
- Applied by military / police and in times of crisis (To respond quickly to the
problem)
Paternalistic leaders

- Managers are interested in keeping workers happy

- Father figure (You see your boss like a father/mother)
- Decisions made with bests interest for employees, not fo the business
- Feedback is welcomed (They want communication, is you don't like
something you should tell them)
- Bad if no true relationships established (If bosses lie to you, employees
won´t trust them or what they say)
- Empñoyee could fed let down of wrong decisions are made
- Found in family business and jobs where the employee aren't needed to
make decisions
 Democratic leaders

- Two-way communications (1. Superios say what to do subordinates,

2. Subordinates communicate to superior)
- Participation encouraged (They want this feedback)
- Information shared with everyone
- Time-consuming (Communications take to muck time)
- Increased employee motivation
- Good for businesses that need employee input and situations that
require a new way of thinking.
Laissez-faire leaders

- Power to make decisions given to employees

- Little input from management (Managers don't do much because
employees do everything)
- Extreme democracy
- Lack of structure could reduce employee motivation and lead to disaster
(If you are an organised person and you know what you have to do this
leadership style is good for you, but if you need someone to tell you what you
have to do, is better choose another company with other leadership style)
- Good for manages with too many tasks and for researchers
Situational leaders
- Leadership style changes depending on the task and employees
objectives
- Lots of changes can be difficult for employees (You don't know what to
exchange)
Effectiveness of leadership style

- No one style that is best for all situations

- Training / experience of workforce
- Amount of time available
- Culture of business / managers
- Personality of managers
- Importance of issue

Cultural considerations and leadership style (Individuals vs. Collectivists)

- Individualistic cultures: Have lots of rules to be followed, leaders distance

themselves from employees, don't nurture employees, have only professional
relationships , and are more autocratic.
- Collectivist cultures: Focus on tasks and people, less autocratic, employees
needs are important.
Unit 2.4

Motivation

Intrinsic vs. Extrinsic motivation: Why do we do what we do?

Intrinsic → Because of the interest and enjoyment in the task itself
- Enjoyment - Purpose - Growth - Curiosity - Passion - Self-expression
- Full something people do because people like it
Extrinsic → Because of the outcome that will result by doing the task
- Promotions - Pay issues - Bonuses - Benefits - Pierce - Winning - Perks
- Something people do because they receive something as a benefit

F.W. Taylor: Scientific management (Extrinsic motivation)

- Aim: Reduce inefficiency in U.S. manufacturing industry (early 20th century)
So many people were working in factories and he came across that this way
they waste trike and money, so he wants to do factories efficiently.
- As a result, all gains could be shared between business owners and
workers
- Based on ``economic man´´ theory → give more money to people to
motivate them to work more.
- Process how to because factories more efficient:
1. Select workers for a task (Pick workers for each job)
2. Observe them and take notes (Every mistake…)
3. Record the true for everything involved in the task
4. Identify the quickest method (After analyse every method, select the faster)
5. Train all workers with this method
6. Supervise worked to ensure they are following the method
7. Pay workers for the result
- Henry Ford make it popular

Maslow's hierarchy of human needs

- Basic needs: Start here to be happy and motivated, physical needs: food,
shelter, water, rest. Safety needs: security, safety, protection, health
- Psychological needs: Belongingness and love needs: intimate, relationship,
friends. We need our people to be happier. Esteem needs : prestige and
feeling of accomplishment. How other people think of you, your status
- Self-fulfillment needs: Self-actualization: reaching one's full potential,
including creative activities. It is continuous, you want to keep going, you
never run out of motivation . Non stop because of something that you like. To
be motivated you have to have this different level, this type of motivation looks
like a job something (job, activity). That makes you happy.
 Herzberg's Two-factor theory
- Job satisfaction comes from live main factors called motivators
(achievement, recognition, meaningful work, interesting work, advancement)
- Job dissatisfaction comes from five main factors called hygiene factors
(company policy, administration (lot of rules, lees happy), over-supervision,
pay (less money), relationship with others,working conditions)
This type of motivation is a mix of intrinsic and extrinsic, because the
motivators are intrinsic and extrinsic.
Consequences of Herzberg's theory
- You are going to have both motivators and hygiene factors, because
these issues are always there, but depending on the level of these
things you are going to be happier or not.
- Job enrichment as a motivator (make you happier)
→ Working in groups instead of individually
→ Provide feedback (info to improve)
→ Giving workers a variety of tasks (no bored, not the same)
Evaluation of Herzberg's work
- Team working is more prevalent
- Workers have more responsibility
- Companies are always looking for ways to improve communication,
increase two-way communication.
Payment/financial methods of motivation
- Salary (what you get paid for your work, how much salary you receive?)
- Time-bases wage rate (depends of the time you work, depends you salary)
- Piece-rate (depends of how much you produce, your money)
- Performance-related pay/bonuses (how you work, if you work better you
receive more money)
- Profit-related pay (if business make money, you get paid, if not, as well)
- Employee share-ownership schemes (after a period of time, employees
become to owners because gives them stocks as an extra)
- Fringe benefits (everything that a business can give you, but not money,
material)
Non-financial methods of motivation
- Job enlargement (you have more responsibility)
- Job enrichment (consequences of Hersberg´s theory, how make your job
better)
- Job rotation (your work change, you have variety, no bored)
- Team working (relacionarse)
- Empowerment (recognition, ``good job´´)
Unit 2.6

Industrial/employee relations

Employee representatives
- Trade unions (Sindicato)
They represent workers and their rights in companies
- Why Join?
● Power in numbers. If you have an organisation that represents a
thousands of people, for example government will listen to them and
their request
● Legal support. You automatically have a lawyer that defends you.
Advantages for employers / business
- Employers negotiate with an officer from the union. They only have to
speak with one person that represents every employee.
- Worker problems brought up by union officers. They only need one
person to be represented.
- Union can discipline its members. Apart from the fact that employees
have to follow the rules of the companies so that they can be
represented by trade unions, everything has to make sense.
- Partnership union should lead to more productivity, job security and
profits.
Employer representatives
- Depends on the size of the company. The more people, the more
representatives.
- Represent shareholders arguments for/against a proposal.
- Objective is lower cost possible and both sides happy which should
lead to good long-term employee(Brandon)/er(NCC) relations.
Trade union objectives
- Higher pay, improved conditions and job security.

Factors influencing organisational structure

- Negotiations. To reach an agreement talking.
- Minimum work/work to rule. If they don't accept the conditions, work the
minimum since they can't fire you.
- Strikes. If you don't get anything working, you won't work, but this also means
that you will lose money.
 How employers style disputes
- Negotiations. Try to speak with people to know what they want, this is the
first step to solve a problem.
- Public relations. Try to get the people showing what the employees are
doing wrong.
- Threats of redundancy. If workers strike they don't get paid because the
consequences for the business will be closed, this is temporary.
- New contracts. If employees don't work, the contracts that aren't permanent,
are going to be worse than the preview.
- Closure. Same as threats of redundancy but the closure would be
permanent.
Who is stronger? Union/employee
- Majority of workers belong to a union. If all workers are in unions, they
have more power.
- The business is busy. The business has to adapt to employees in the high
seasons because if they leave, they would lose money.
- All workers agree on action. Everyone thinks the same.
- Huge impact caused by strikes. When the strikes really have an impact in
the business.
- Public support. If you get news or media, you get other people to think what
you think.
- High inflation. If everything is more expensive, employees can ask for more
money.
- Labour costs are low. If the business spends a low amount of money on
employees, they can ask for more.
Who is stronger? Business/employer
- High unemployment. They can choose because there are so many options.
- Public support. When people think as they do.
- Low profits. If the business doesn't go well and the workers ask you for more
money, you can not give it to them.
- Threat of closure is real. If employees don't work, there is a closing risk.
- Threat of relocation. If another place is cheaper, they can move the
company if there is not enough money and workers can be out of work.