Business IG:

Chapter 7 part 2:
Section 2.2.2 The Role of managers:
Section 2.2.3 Leadership styles
Section 2.2.4 Trade unions
 Directors and chief executive officer:
 Directors: “appointed or elected members of the board of directors of a
Roles, company who have the responsibility for determining and implementing
the company’s policy. Some directors might also have a management role
responsibilities [marketing director].”
and inter- • Most senior level of management in any limited company.
relationships: • Elected at the Annual General meeting (AGM)
Responsibilities of directors:
 Setting strategy- the long-term plans for the business
 Making sure resources needed are available to achieve objectives
 Reviewing performance of managers
 Protecting interests of shareholders and stakeholders
 Providing leadership to ensure the success of the business
 Chief Executive Officer (CEO): “the most senior manager responsible
for the overall performance and success of the company.”
• Overall responsibility for the day-to-day management of the business and Roles,
implementing the decisions of the Board of Directors.
responsibilities
 Manager: “an individual who is in-charge of certain group tasks, or a and inter-
certain area or department of a business [factory manager].
relationships:
Main responsibilities of a department manager:
 Making sure that decisions of directors are caried out
 Delegating tasks to members of department
 Taking decisions needed to achieve departmental targets
 Motivating workers in department, work hard to achieve department’ and
company’s objectives
 Solving day-to-day problems that may arise within department.
  Supervisor: “an individual who checks and controls the
work of subordinates.”
• In a large department where there are many workers,

Roles, supervisors may be responsible for giving out tasks to the

workers, making sure they carry out the tasks and checking
responsibilities the quality of the work.

and inter- Other workers in the business must work together and with the
manager to:
relationships:  Complete their tasks efficiently and at the required quality
standard set by managers.
 Work towards achieving individual, group or departmental
targets.
 Responsibilities:
• Setting objectives
The role of
management: • Motivating workers
• Making sure workers have
the resources they need to
complete their tasks.
 Functions of management;

Organising; preparing and organising the

Planning; looking at where the business
resources needed to achieve the planned Commanding; involves control and
is now and where it wants to be in the
goals and objectives. Management will supervision of subordinates, aim to
future. Then once decisions have been
have to decide the best way of completing motivate workers towards achieving the
made, set clear objectives and action
important tasks at the lowest possible cost planned objectives.
plans needed for these to be achieved.
to the business.

As well as these 5 functions managers need

to;
Controlling; the final function of
Coordinating; making sure that all the -Understand the people who work for them
management, checking to make sure the
different parts of the business are working -Set a good example
plan set out is working. Will it be
together, towards achieving the business’s
complete on time and to requirements. If -Treat subordinates fairly
goals and corporate objectives.
not, then action must be taken.
-Communicate effectively
-Delegate tasks
 Delegation:
• It is not possible for managers to complete all tasks

• No time and may not have the skills

• Delegating tasks to lower levels of the business (subordinates)

• Giving up authority to subordinates to make decisions and complete tasks with resources
provided and cooperation of their workers.

Benefits of delegation to the managers and subordinates:

 Managers have the time to focus on more complex tasks of greater importance

 Motivates workers who are given more opportunities to take responsibility and develop
their skills
 Delegation is a way of developing the skills of workers and increasing the flexibility of
the workforce
 Quality of work is often improved because lower-level workers have better skills than
the manager when it comes to completing certain tasks.
 Leadership styles:
Autocratic
Autocratic
leadership
leadership

• Leadership is an important role of a Styles

Styles of
of
successful manager. Employees will leadership:
leadership:
want to follow and help a popular
leader to achieve business goals.
Laissez-faire
Laissez-faire Democratic
Democratic
leadership
leadership leadership
leadership
Autocratic leadership style:

• Autocratic leadership: “a leadership style where the leader makes all the decisions.”
• Democratic leadership style: “a leadership style where workers take part in decision-
making.”
• Laissez-faire leadership style: “ a leadership style where most decisions are made by
workers.”
 • There is no one “best” leadership style that fits every business situation. Each of the
styles of leadership have their strengths and weaknesses.

Choosing a Factors to consider when choosing the right style:

leadership  The skills and experience of the workforce:- the more skilled and experienced workers
are, the less important it is for the managers to make all decisions and supervise workers.
style: A more democratic leadership style may be “best”.
 The time available to make a decision:= if a decision needs to be made quickly, then
there will be no time to discuss the situation with the worker. This will require an
autocratic approach to management. However, if there is time to consult and for worker
to participate in the decision-making process, then a more democratic management style
may be used.
 The personality of the manager:- some managers are naturally autocratic or naturally
democratic. It can be difficult to use a management style which is the opposite to their
own personal style.
 The task to be completed:- you have already seen how worker whose tasks require them
to be innovative and creative may be more motivated with a laissez-faire leadership style.
tHe nature of the task, for example complex, simple or creative, may require different
leadership styles.
 Trade unions:

• Trade unions: “an organisation of workers aimed at improving pay and working conditions and providing other services, such as legal
advice, for members.”
• The unions help members carry out the following roles;
 Negotiation with employers to improve pay and working conditions – the main role of trade unions
 Resolving conflict – when there is a disagreement between an employer and its worker which the worker themselves have been unable to
resolve then the trade union will try and negotiate a solution on the workers behalf.
 Providing legal support and advice – a trade union will provide its member with advice about their legal rights as an employee. If a
worker is treated unfairly by the employer, the trade union will take legal action against the employer.
 Providing services for members – many trade unions provide a range of benefits for members including pensions schemes, insurance
schemes holiday schemes and many other benefits.
Benefits of being a trade union:

• Complete this for an activity:

Activity to do: pg. 97