Unit 6 Principles of Management Mock

When managers set clear objectives that can easily be reviewed by developing a plan in order to reach them. 

1. Determine the objectives from the overall business aims
2. Translate these objectives to employees (SMART objectives)
3. Setting smaller objectives to employees to achieve that contributes to the overall objectives for the business
4. Managers monitor the progress of employees
5. Evaluate and reward employees progress or intervene if progress is slow/none existent. 

• Everyone within the organisation knows whats going on
• It is clear and shows the direction the business is heading.

• Information could be lost
• Cannot account for change
• Time consuming to drill down and get information across the organisation 

Highly structured and follow strict protocols and regulations. Managers go 'by the book' to ensure all business processes are followed at all times                                                                       

Success is driven and monitored by results and managers will run the organisation through KPIs. Managers will give formal feedback through performance appraisals and target setting 

Employee completes task well = reward                                                                             

Employee does not complete task well = punishmen

• protocals and regulations are clear to understand 
• employees will be encouraged to complete work due to the risk of punishments and will receive rewards 
• employees may be stressed and pressured to get the work done to avoid punishments 
• employees who do not reach the target will lose motivation and will stress where they will not be happy at work. 

The Continuum demonstrates that management behaviour changes overtime and is dependent on the situation. This theory places all leadership style along a continuum based on the balance of authority and freedom that exists between two leaders and subordinates. 

The Continuum has 2 extremes: AUTOCRATIC - where the manager has absolute control over subordinates and is highly authoritarian. FREE REIGN - subordinates are allowed to make their own decision and the manager oversees and supports when needed. 

• provides variation for management 
• doesn't present one way of managing groups. 

A holacratic structure encourages a business culture which is open and democratic. Employees are given the autonomy to make their own decisions for the benefit of the organisation. 

• empowers team members to freely contribute ideas 
• promotes transparency and communication 
• fosters teamwork 
• lack of focus 
• lack of accountability 

a hierarchical structure tends to have very few people in charge of the entire workforce or with a single layer of managers inbetween. 

structures with one person in charge are likely to generate an autocratic culture 

• clear line of authority 
• clear lines of communication 
• clear career paths and development prospects which can motivate employees 
• lack of autonomy 
• complicated chains of command which can slow down decision-making 
• additional costs

An autocratic leader has total authority and control over decision making. They will control employees and monitor them.

This is associated with power and control.

• efficient 
• decisions are made quickly 
• meet tight deadlines 
• everyone knows what they are doing where communication is enhanced 
• improves productivity 
• lack of creativity 
• may not havw the job satisfaction of subordinates 
• workers can resent being told what to do 
• creates a high-pressure working environment 

A democratic leader encourages freedom and discussion. They are often dynamic leaders and can operate in rapidly changing business enviornments. 

Invites participation from others, seeing ideas and involvement in decision making and problem-solving. 

• this is inclusive for staff 
• sharing responsibilities for everyone 
• brings more viewpoints to the table 
• increases morale and job satisfaction 
• invites higher levels of commitment 
• a strong and clear vision for the future is built 
• can take up so much time and energy that tasks do not get done within deadlines 
• leaders can feel overwhelmed 

Where employees are delegated free-reign to decide how to go about their business and make decisions 

Managers usually set broad objectives and does not usually get involved in the decision process. 

• provides a feeling of freedom (autonomy) and entrepreneurship. 
• can lead to an inefficient workforce which may slow productivity 
• higher costs 
• poor communication due to managers not being involved 
• lack of motivation as employees feel directionless 

Where the leader/manager demonstrates concern for employees and is focused on developing individuals to fulfil the vision of the business 

• employees will know the direction the business is going and how it will get there 
• reduces turnover costs 
• leaders value their employees and will reward them 
• may only focus on long term goals that can overlook core competencies they need today 

Core workers - those employed full time on permanent contracts 

• understand the work 
• employees will know when they will be in 
• expensive 

Peripheral workers - those who are contracred on part time or flexible contracts 

• will help solve problems 
• cheaper 
• provides flexibility if core workers are absent 
• may not feel loyal to the business 
• may not have a good work output 

Internal training may be delivered by another member of staff or member of the HR department. This takes place at the business' premises where the business may pay an expert trainer to come to its premises. 

• saves time and energy 
• professionals do not have to leave their workplaces 
• encourages team building 
• training can be customised according to the company needs 
• some employees may feel that balancing their work and training is an added pressure or distraction 
• can be time consuming for staff members involved 
• training could be unprofessional 

Taylor assumed that employees only work for money and came up with simple work methods to reduce the time a task took to complete. Taylor discovered that employees would only work harder when they were being supervised, and would return to their normal pace of work once the supervision was removed. 

Encouragement to work harder and the promise of additional benefits and rewards would make employees sufficiently motivated to work harder.

States that employees are only motivated by monetary gains. Herzberg's 2 Factor Motivation theory states thatemployees are motivated by other things than money and will put the person in the job where they are happiest. 

• increased production 
• managers are in control 
• performance-based payment system 
• costly 
• employees may reduce creativity and motivation due to not being happy in their job role 
• employees may become bored due to doing the same job over again 
• employees may rush work and become stressed, making errors in the process.

Mayo's research and experiment findings concluded that as workers became more motivated by increased productivity due to how they regulated their own breaks, they alll became more efficient when they took control of their own work patterns. 

Mayo was able to suggrst output and motivation improved when employees were being observed and some employees pressurised others to work hard.                                                                 The subjets for his experiments became an autonomous and responsible team. 

Employees are motivated when asked for feedback about surroundings and how the employees are increases productivity

• autonomy (free thinking)
• high communication between employees and management 
• creates a more democratic workforce 
• can cause pressure 
• can lead to stress 
• less control over the employees 

Where employees evaluate their own performance against their job description and targets 

• more ownership is placed on employees
• improved communication 
• managers are presented with valuable insights 
• can lead to conflict
• biased 
• employees' perceptions can be different 

Management by objectives involves setting goals and monitoring the performance of individuals 

• employees' objectives are set 
• monitor the employee performance 
• evaluate employee performance 
• reward employee performance 
• business sets objectives 
• REPEAT

• targets are measurable 
• encourages detailed planning 
• everyone knows what is expected of them 
• requires support from management 
• time consuming due to paperwork and meetings 
• more focused on short-term goals 

On the Individual:

• provides the opportunity to give feedback on their own performance and make suggestion for further development and targets 

On the Business:

• provides management with information about the current situation of the business in relation to objectives and what is needed in their planning
• without appraisals the business is not able to monitor the effectiveness of its workforce. 

A British Standard Quality mark which symbolises quality, safety and value for customers and business 

Investors in People - support and improves peoples' capabilities to achieve high performance. It encourages continuous improvement and increases job satisfaction 

• provides expert overview of organisation
• valuable insights 
• business can manage change sustainably 
• may lead to customer loyalty 

Investors in People is the quality standard for people management. 

It was established in 1991 to set the standard for how business manage their biggest asset: People. It is known worldwide and involves businesses demonstrating how they strive for continuous improvement 

Businesses subscribe to this standard to demonstrate their care for their employees and customers. Businesses must provide evidence of how they meet the Iip framework to gain accreditation. e.g. using mystery shoppers to measure consistency

• workforce is developed where staff are 17% more productive 
• workforce is 21% more profitable 
• increase potential staff to the business 
• can be time consuming to receive accreditation. takes roughly a year to complete the process 
• can be expensive to provide evidence to gain accreditation. Assessments are costly too 

Ensures maximum value for minimum waste. 

Encourages the whole workforce to focus on 3 different aspects: PURPOSE - what customer problems will the enterprise solve to achieve its own purpose. PROCESS - how will the organisation assess each major value stream to make sure each step is valuable. PEOPLE- how can the organisation ensure every important process has someone responsible for continually evaluatong that value stream in terms of business purpose and lean process?

• enhanced customer relationships 
• waste minimisation 
• can lead to delivery inconsistencies 
• employee dissatisfaction due to efficient production 

A way of involving employees and giving them autonomy to identify quality problems, investigate solutions and provide recommendations 

• can be an effective and efficient way of getting to the bottom of any problem 
• promotes teamwork 
• develops employees' positive attitudes 
• creates a positive working environment 
• increased quality and productivity 
• little or no management support 
• employees may not be aware of the purpose 
• employees may not have enough relevant training 
• quality circles are not empowered to make decisions 

A data-driven approach and methodology for eliminating defects. It is a quality framework that a business will progress through, with the intention of reducing waste, time and processes and so producing an end result that is fit for purpose. 

Define, Measure, Analyse, Improve, Control

• improves the quality of the product by identifying its defects in it
• reduces defects and costs as the production stage takes less time and costs 
• improved customer satisfaction as quality improves 
• focused only on the quality 
• requires more resources such as training 
• addition of production costs 

Involves encouraging staff to own up to mistakes so that improvements can be made and to avoid any culture of blame and deceit. 

Communication is about the sharing of information and ideas. Needs to ensure that the information is received as it is intended. 

Employees, suppliers, customers and other interested groups will often judge the quality of an organisation by the communication that they have with it. 

An ongoing effort to improve products, services or processes. These efforts can seek incremental improvement overtime or breakthrough improvement all at once.

Businesses continually monitors processes and identifies areas which require improvement. This allows businesses to set more goals and the cyle of continuous improvement continues.

The business benefits from more efficient working, better productivity and less waste 

Improved products and services often have their roots in suggestions and demands made by customers 

successful businesses listen to their customers and collect customer views. From this, businesses can create new products and services in order to keep customers happy

To produce materials with zero defects stemming from the work of a highly skilled workforce 

The benefits to any busoness operating tight quality controls which results in zero-defects include:

• maximum profits 
• customer satisfaction 
• rapid production 
• deadlines being met 
• may negatively affect the whole supply chain when another manufacturer has a different defition of zero defect. 
• may put a strain on employee morale and satisfaction
• it eliminates hidden costs 

To achieve the benefits, every member of the workforce needs to understand the part they play and that they are responsible for their contribution 

Skilled workforce -> Production -> Precision Output = Zero Defects 

engaging with suppliers requires a supply chain management. 

A business must have reliable suppliers to provide raw materials or it will either fail or must find alternative sources, costing time and money.

The supplier must be satisfied with the way they are treated by the business 

Quality kite marks means like-minded businesses understand and appreciate the hard work and efficiency within the business that led them to being accredited. This will enable outsourcing to be selective if the business strategy is to buy from those with accrediation. (competitve advantage 

The key to satisfaction is communication