Section 2 Notes

SPECIFIC OBJECTIVES CONTENT

Students should be able to:
Functions of management:
1. describe the functions of management; (a) planning (to create short term and long
term goals to achieve the goals a business and
sourcing the necessary resources to
accomplish these goals);

(b) organising;

(c) directing;

(d) controlling;

(e) coordinating;

(f) delegating; and,

(g) motivating.

Management responsibilities to:

2. outline the responsibilities of management; (a) owners and shareholders (by maximising
efficiency and creating surpluses);

(b) employees (for example, providing

adequate working conditions, training,
maintaining good communication and human
relations);

(c) society;

(d) customers; and,

(e) government.

The construction of simple organisational

3. *construct simple organisational charts; charts ensuring that students understand and
outline the components or characteristics of a
simple chart.
(a) Line.

(b) Line and staff.

(c) Functional.
SPECIFIC OBJECTIVES CONTENT

Students should be able to:

Interpretation of simple organisational charts.
4. interpret simple organisational charts; (a) Chain of command.

(b) Span of control.

Characteristics including:
5. outline the essential characteristics of a Honesty, flexibility, focus, trustworthiness, and
good leader; ability to make intelligent decisions.

The advantages and disadvantages of

6. discuss the different leadership styles; different leadership styles: Autocratic,
Democratic, Laissez-Faire.
Internal sources of conflict, for example, poor
7. identify potential sources of conflict within working conditions.
an organisation;

Employer strategies, for example, lock out and

8. outline strategies used by employers and use of scab labour; employee strategies, for
employees to gain an upper hand during example, strike action and work to rule.
periods of conflict;

Strategies such as mediation, arbitration, and

9. describe strategies for the resolution of the value of trade union representation.
conflict within an organisation; Grievance procedure.

Guidelines for establishing good relations

10. establish guidelines for the conduct of between managers and employees.
good management and staff relations in the Examples:
workplace; (a) good communication with workers;

(b) improve working conditions;

(c) motivating workers;

(d) practice good leadership.

11. identify strategies for motivating (a) financial methods; and,

employees in a business;
(b) non-financial methods.

SPECIFIC OBJECTIVES CONTENT

Students should be able to:
The value of teamwork within an
12. evaluate the role of teamwork in the organisation:
success of an organisation; and, (a) definition;

(b) advantages; and,

(c) disadvantages.

The communication process and strategies for

13. outline strategies for effective effective communication within an
communication within an organisation. organisation.

Management involves all activities which seek to utilize the resources of the business efficiently in order
to attain organizational goals.

Functions of management:
(a) planning – creating goals and strategies to achieve them
(b) organizing – ensuring all resources are available and allocated to various departments
(c) directing – giving clear instructions about task that must be fulfilled.
(d) controlling – taking corrective actions to ensure the business does not deviate from its goals
(e) coordinating - ensuring each part is in sync with the other parts collectively.
(f) delegating – putting employees in charge of(or giving authority) to perform a task.
(g) motivating – influencing employees to give of their best at all times to achieve organisational goals.
 Learning objective 2:
Management responsibilities to (stakeholders):
The stakeholders are any individuals or groups that have a vested interest in the business
(a) owners and shareholders (by maximising efficiency and creating surpluses);
the business is profitable in order to give the owners or shareholders receive a fair return on their
investment

(b) employees (for example, providing adequate working conditions, training, maintaining good
communication and human relations);
management must ensure that they are providing employees with a fair pay for decent work
the physical environment or working conditions must not be harmful to the mental and physical
health and safety of employees
(c) society;
management must ensure that the operations of the business are not causing damage or pollution
to the environment and has a positive image and good relationship with the public through public
relations activities like sponsoring sports and cultural events.
(d) customers;
Management must ensure the products are of safe standard and giving customers a fair product for
the money spent on it. The products should satisfy the cutmoers needs and not cause harm to them
or the users.
(e) Government.
Management must follow all rules and regulations set by the government and ensure they pay taxes and
other compulsory payments accurately and on time.
Learning objective 3:
The construction of simple organisational charts ensuring that students understand and outline the
components or characteristics of a simple chart.
Definition – The organisation chart is a diagram which represents the positions in the business and the
reporting relationship and authority.
(b) Line and staff.
(c) Functional.

A line (direct) relationship shows direct authority or reporting relationship between positions, whereas a
staff relationship shows more of a supportive or advisory role between positions.

CEO

Secretary

Human
Marketing Finance Production
Resource
Manager Manager Manager
Manager

HR Clerk Production
HR Clerk
Clerk

Rules for preparing organisation chart:

1. Positions and Authority – the positions with the higher levels of authority will be above those of
positions with lower authority
2. Lines must be drawn to connect the positions and show the reporting relationship between them
3. The title of each position must be clearly stated.
Learning Objective 4:
Interpretation of simple organisational charts.
(a) Chain of command. –
a ranking of authority where senior people in an organization direct and control employees who are
below them.
The order in which instructions are passed from one person to another based on the lines of authority or
in the organisation chart.
(b) Span of control. – The number of positions or departments one person in a managing role supervises.
For example in the org chart below, the span of control of the director is 3

Narrow span of control

 Fewer Subordinates:
 Managers have fewer direct reports, allowing for closer supervision and more personalized
guidance.
Wide Span of Control:

 Larger Number of Subordinates:

 Managers oversee a larger number of direct reports.
Learning objective 5:

Characteristics of a good leader including:

[Link]/ Trustworthiness

 A good leader is truthful and transparent.

 Builds credibility and earns the respect of the team.
 Encourages open communication and integrity.

2. Flexibility

 Adapts to changing situations and challenges.

 Open to new ideas and willing to adjust plans when necessary.
 Helps the team navigate uncertainty smoothly.

3. Focus

 Stays committed to goals and priorities.

 Avoids distractions and keeps the team aligned with objectives.
 Ensures resources are used efficiently.

4. Ability to Make Intelligent Decisions

 Gathers relevant information before acting.

 Thinks critically and evaluates possible outcomes.
 Makes choices that benefit the team and organization in the long term.

5. Passionate / highly motivated

6. Good communicator
Learning Objective 6: The advantages and disadvantages of different leadership styles: Autocratic,
Democratic, Laissez-Faire.

Autocratic Leadership

Definition:
A leadership style where the leader makes decisions independently with little or no input from team
members.

Advantages:

 Quick Decision-Making: Fast actions in emergencies or high-pressure situations.

 Clear Direction: Roles and expectations are well defined.
 Strong Control: Useful in situations requiring discipline or routine.

Disadvantages:

 Low Team Morale: Employees may feel undervalued or unmotivated.

 Limited Creativity: Little room for team input can stifle innovation.
 High Dependency on Leader: The organization may struggle if the leader is absent.

Democratic Leadership

Definition:
A leadership style where the leader involves team members in decision-making processes.

Advantages:

 Higher Morale: Team feels valued and motivated.

 Encourages Creativity: Open discussions lead to innovative ideas.
 Better Decisions: Diverse input often leads to well-rounded choices.

Disadvantages:

 Slower Decision-Making: Group input can delay actions.

  Possible Conflicts: Differing opinions may lead to disagreements.
 Less Effective in Crisis: May lack the speed and clarity needed in emergencies.

Laissez-Faire Leadership

Definition: A hands-off leadership style where the team has significant autonomy to make decisions.

Advantages:

 High Creativity and Independence: Encourages self-motivation and innovation.

 Strong Personal Growth: Team members develop problem-solving and leadership skills.
 Flexible Environment: Works well with experienced, skilled teams.

Disadvantages:

 Lack of Direction: Can lead to confusion or inefficiency.

 Low Accountability: Risk of poor performance if roles aren’t clear.
Learning Objective 7: Internal sources of conflict, for example, poor working conditions.

Definition: Conflict is any form of disagreement between two or more persons.

Conflicts within an organization often arise due to internal factors that affect employee relationships,
performance, or satisfaction. Common internal sources include:

1. Poor Leadership
o Lack of direction, inconsistency, or authoritarian behavior.
o Erodes trust and encourages conflict among staff.
2. Poor Working Conditions
o Unsafe, uncomfortable, or unhealthy environments.
o Leads to frustration, low morale, and disputes among staff.
3. Ineffective Communication
o Misunderstandings, lack of clarity, or lack of information sharing.
o Can result in confusion, mistrust, and errors.
4. Unclear Roles and Responsibilities
o Overlapping duties or lack of defined tasks.
o Causes tension and blame among team members.
5. Unfair Treatment or Favoritism
o Bias in promotions, workloads, or recognition.
o Leads to resentment and reduced team cohesion.
6. Personality Clashes
o Conflicting values, attitudes, or work styles.
o Personal differences can escalate into workplace disputes.
7. Limited Resources
o Competition over tools, time, or support.
o Can create stress and conflict over priorities.
Strategies used by employees:

In order to gain the upperhand in conflicts, employees have several strategies:

1. Working to rule – every rule and regulation of every process and procedure is the company is
carried out exactly. This has the effect of slowin down the work process.
2. Go-slow – similar to work to rule, the workers do their work thoroughly but at a slower pace than
normal, thus causing a fall in output.
3. Sit-in – worker occupy the firm’s premises ensuring that no goods enter or leave the premises.
4. Sick-out – workers declare that they are sick and cannot turn up for work. Hoever, they subit the
necessary paperwork and thus avoid penalties.
5. Picketing – public display of grievances with management usually with signs and placards to get the
attention of media and public
6. Striking or withdrawing their labour – very extreme but necessary when all other options fail.
Learning Objective 8: outline strategies used by employers and employees to gain an upper hand during
periods of conflict;
Employer Strategies

1. Lockout
o Management prevents workers from entering the workplace.
o Used to pressure employees during disputes or strikes.
o Aims to force acceptance of terms or stop ongoing industrial action.
2. Use of Scab Labour
o Hiring temporary or replacement workers during a strike.
o Maintains operations but often increases tension.
o Can damage long-term employee relations
LO 9: Strategies to resolve conflict

1. Mediation – is a voluntary and confidential method of trying to resolve disputes in the

workplace. Typically it involves an independent, and impartial person acting as go-between to
help parties in conflict
2. Trade union representation – this gives greater power to individuals when in dispute with their
employer because they gain guidance as well as the strength of collctive bargaining, because of
the greter number of persons (the union membership) fighting for the same cause.
3. Arbitration – the use of the court system to make a decision between parties in conflict.
4. Grievance procedures – are a means of resolving internal dispute without necessarily using any
of the procedures mentioned above.
Grievance- in the workplace this refers to complaints, concerns or problems that worker might
raise with their employee.

Proactive methods to avoid conflict and grievance issues include:

1. Good leadership
2. Establishing good employer-employees relations
3. Good communication with workers
4. Satisfactory working conditions
5. Positive encouragement/motivating employees
6. Financial and non-financial methods
Learning Objective 10: establish guidelines for the conduct of good management and staff relations in
the workplace;

Guidelines for establishing good relations between managers and employees.

Examples:

1. Good Communication with Workers

 Encourage open, two-way communication.

 Listen actively to employee feedback and concerns.
 Provide clear instructions and regular updates.
 Use multiple channels (meetings, emails, noticeboards) to stay connected.

2. Improve Working Conditions

 Ensure a clean, safe, and comfortable work environment.

 Provide necessary tools, resources, and facilities.
 Address hazards and employee complaints promptly.
 Show commitment to employee well-being.

3. Motivating Workers

 Recognize and reward good performance.

 Offer training, career growth, and development opportunities.
 Involve employees in decision-making where possible.

4. Practice Good Leadership

 Lead by example with honesty, fairness, and consistency.

 Be approachable, supportive, and respectful.
 Adapt leadership style to meet team needs and challenges.
Learning Objective 11: identify strategies for motivating employees in a business;

(a) Financial Methods

These use money-based rewards to encourage employees to work harder and stay committed.

1. Wages and Salaries

o Basic regular payment for work done.
o Motivates through financial security.
2. Bonuses
o Extra payment for achieving targets or exceptional performance.
o Encourages high productivity.
3. Commission
o Payment based on the amount of sales made.
o Common in sales roles; rewards effort directly.
4. Profit Sharing
o Employees receive a share of the company’s profits.
o Builds a sense of ownership and loyalty.

(b) Non-Financial Methods

These involve non-monetary incentives to increase job satisfaction and employee engagement.

1. Recognition and Praise

o Verbal or written appreciation of good work.
o Boosts morale and motivation.
2. Career Development
o Training, workshops, and learning opportunities.
o Helps employees grow and feel valued.
3. Promotion Opportunities
o Advancement in job title or responsibility.
o Encourages ambition and long-term commitment.
Learning Objective 12: evaluate the role of teamwork in the success of an organisation; and,

The value of teamwork within an organisation:

(a) Definition; A team is a group of people coming together to accomplish one set goal
Teamwork is the process of individuals working together to achieve a common objective.

(b) advantages
 Higher productivity (synergy)– the output of the team is greater than the output of the individual
parts
 Greater input – more ideas from persons of different skills and expertise
 Support and encouragement – when one group member has challenges performing task, the other
members of the group can support them.
 Motivation – persons feel more motivated to work with a team than work as an individual

(c) Disadvantages.
 Piggybacking – some individuals in the team may not ‘pull their weight’ and perform their roles and
depending on other members efforts.
 Conflict – persons working together will inevitably have some form of conflict which may lower the
levels of productivity
 Low Motivation – some people do not like to work in a team but prefer individualistic efforts.
Learning objective 13: Communication

Definition - Communication is the two-way process of interaction to send a message and get feedback.

Communication types:
 Oral
 Written
 Non-verbal – body language

Communication channels
 Electronic – emails, cell phone messages, any device where communication is sent
 Notice boards – physical board where updated information is pinned.
 Suggestion boxes – anonymous feedback from employees
 Meetings – everyone speaks faces to face in direct communication.
 Upward communication – from the lower levels of organisation to upper levels such as
suggestion boxes, open door policy (manager encourage employees to talk to them anytime)
 Downward communication – any communication from top management going down the lines of
authority in the organisation chart.
 Informal communication – messages relayed through grapevine or relationships that are not in
formal positions.

1. The Communication Process

Communication involves the exchange of information between individuals or groups. The process
typically includes:

1. Sender
o The person who initiates the message.
2. Message
o The information, idea, or instruction being communicated.
3. Channel
o The medium used to deliver the message (e.g., email, phone, face-to-face).
 4. Receiver
o The person or group who receives and interprets the message.
5. Feedback
o The receiver’s response, showing whether the message was understood.

2. Strategies for Effective Communication within an Organisation

1. Choose the Right Communication Channel

o Match the message with the most effective medium (e.g., formal emails for
documentation, face-to-face for sensitive matters).
2. Encourage Two-Way Communication
o Promote feedback and active listening to ensure mutual understanding.
3. Ensure Timely Communication
o Deliver messages promptly to maintain trust and avoid delays.

Suggestion boxes
Meetings