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2.2 Organisation
and
management
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Learning outcomes

■ The role of management:

■ Functions of management – planning, organising, co-ordinating, commanding
and controlling
■ Importance of delegation; trust versus control

■ Leadership styles:
■ Features of the main leadership styles – autocratic, democratic and laissez-faire
■ Recommend and justify an appropriate leadership style in given circumstances

■ Trade unions:
■ What a trade union is and the benefits of workers being union members
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Functions of Management 
■ Management can be separated into five functions which are-
■ Planning
■ Organizing
■ Coordinating
■ Commanding (Directing) and
■ Controlling.

■ The basic objective of these functions is maximum utilization of

resources available at company's disposal so that organization's
mission and policies could be achieved in the best possible way.
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Functions of Management
PLANNING
Planning for the future of the organization involves setting aims or targets.
In addition to those aims, a manger must also for the resources which will be
needed.
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Functions of Management
ORGANIZING (Staffing)
A manager cannot do anything so the tasks must be delegated to others in the
organization.
The manager's responsibility to organize people and resources effectively.
An effective manager will organize people and resources very carefully indeed.
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Functions of Management
COORDINATING
Coordinating means 'bringing together'
A good manager will therefore make sure that all departments in the
organization work together to achieve the plans originally set by the manager.
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Functions of Management
COMMANDING
The task of management is more concerned with guiding, leading and
supervising people than just telling them what to do-although this may be
important too.
Managers have to make sure that all supervisors and workers are keeping to
targets and deadlines.
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Functions of Management
CONTROLLING
Controlling is the action that we want another person do what we want or tell
them have to do. Manager must try to measure and evaluate the work of
individuals and groups to make sure that they are on target. If the targets are not
being met, the manager need to find out why and then to correct the problem.
This is never-ending task of management
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Without clear and effective
management, a business is going to
lack:
■ a sense of control and direction

■ coordination between departments, leading to wastage of

effect

■ control of employees

■ organization of resources, leading to low output and sales.

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What is a Leadership Style?

■ The motivation level of the workers is very much affected by the

Leadership style followed in an organisation. There are broadly three
types of leadership styles.
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Types of Leadership Styles

■ Autocratic
■ In this style the manager believes in taking the decisions on its own without consulting or communicating
with their subordinates. They set the objectives, give instructions to workers to achieve those objectives
and supervise closely to see whether their instructions are implemented. There is one way
communication from the boss to the subordinates only. These types of managers can be categories
as Theory X managers. Motivation level for workers is usually low as they feel alienated from the
decision making process.

■ Democratic
■ Democratic managers trust their employees. They take decision based on the feedback and comments of
their subordinates. They believe in delegation and encourage their subordinates to take
decisions. Communication is usually two ways where the employees can give in their comments and
suggestions. Organizations following democratic style usually have high motivation level among their
staff.

■ Laissez-faire
■ Managers who believe in Laissez-faire style of management give their employees broad objectives and
give them full liberty to make their decision regarding how the work will be done. Communication may
be a problem as the manager may not be closely monitoring the progress of the employee. It may be de-
motivating sometimes as the workers may lack direction and guidance from their superiors.
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What is a Trade Union?

■ Trade Union is a group of workers who join together to protect their

interests and work for better wages and working conditions. It is a
type of pressure group.
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Why do workers join trade unions?

■ Workers might join a trade union because

■ They believe that there is strength in number and they will be listened to
when they in a group.
■ To negotiate a better pay, more holidays and less hours of work.
■ To pressurise the employer to provide them with a healthier and safer
working environment.
■ Improved benefits for retrenched workers
■ To get the benefits of advice, financial support and welfare activities
carried out by Trade Unions.
■ Many workers may also join a trade union because there is a closed
shop policy.
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Trade Unions

■ Closed Shop
■ It is where all employees must be a member of the same trade union.

■ Single Union agreement

■ It is an agreement between the management and workers, where the management
deals with only one trade union and no other.

■ Collective bargaining
■ It means the negotiations between one or more trade unions and one or more
employers on pay and conditions of employment.

■ Productivity agreement
■ It is an agreement between the management and workers whereby the
management agrees to increase the benefits for workers in return for an increase
in productivity.
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Summary of unit

1. Businesses owned by private individuals or groups are in the

private sector.

2. Businesses owned by the state are in the public sector.

3. All products go through many stages of production.

4. The different stages of production of a product are linked in a

‘chain of production’.

5. Businesses may be in the primary sector, secondary sector or

tertiary sector, depending on where they are in the chain of
production.
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Key terms
■ Hierarchy refers to the management levels within an organisation.

■ Line managers are responsible for overseeing the work of other staff.

■ Subordinates report to other staff higher up the hierarchy. Subordinates are accountable to their
line manager for their actions.

■ Authority refers to the power managers have to direct subordinates and make decisions.

■ Delegation is when managers entrust tasks or decisions to subordinates.

■ Empowerment sees managers passing authority to make decisions down to subordinates.

Empowerment can be motivational.

■ The span of control measures the number of subordinates reporting directly to a manager.

■ The chain of command is the path of authority along which instructions are passed, from the CEO
downwards.

■ Lines of communication are the routes messages travel along.