btec business Unit 6 PDF

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btec business unit 6 principles of management hmvgjyh...

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Unit 6 : Principles of Management Name: Kashish Bhatia Class : 12A

Table of Contents Activity 1 : report....................................................................................................................3

Activity 1 : report Peterson Toys Ltd is a retailer based in the North of the country with 10 stores located on retail parks. Peterson Toys Ltd sells bicycles, sports equipment, computer gaming hardware/software and toys for all age groups.Jorge Peterson and his three children have total share of 68%. The difference between the function of leadership and management, is that leadership is an action of leading a group towards a common goal and management is the process of dealing with or controlling things or people. On what I have understood about the scenario,Jorge’s children don’t have experience in having management skills ,this has created the competitors have a higher chance at reaching their sales and this can decrease customer loyalty in the business. As for the lack of leadership skills and management skills , their staff turnover has increased and it is shown in the table that in 2017, the staff turnover was 10 and then increased to 15 and 17 in 2018 and 2019 . Staff turnover had lead to decrease in gross and net profit and a downturn in total revenue. As to what I have researched, staff turnover causes from overworking the employees, having little opportunity with decision making and poor employee selection. Additionally to the lack of management skills, their sales of products have reduced, as it is shown in table 1 their total revenue in 2016 was 13,400,000 but then decreased to $12,900,000 in 2017. The functions of leadership that they should consider are – perform creative and laying out goals and policies to persuade the subordinates to work with confidence, because they have lack of experience so they really need confidence to lead the company. The second function they should consider is to create and shape the organization on scientific lines by assigning roles appropriate to individual abilities with the view to make its various components to operate sensitively towards the achievement of enterprise goals because their staff turnover is increasing. Overall of their management skills, they don’t have good communication and coordination in the business, that has lead them to not have a proper marketing strategy in the future and this had been happening for 2 years. Management skills can be developed through learning and practical experience as a manager. The skills help the manager to relate with their fellow coworkers and know how to deal well with their subordinates, which allows for the easy flow of activities in the organization.Planning is a vital aspect within an organization. It refers to one’s ability to organize activities in line with set guidelines while still remaining within the limits of the available resources such as time, money, and labor. It is also the process of formulating a set of actions or one or more strategies to pursue and achieve certain goals or objectives with the available resources. Jorge’s children need to learn how to plan well to achieve good management skills. Those leadership and management skills is important because it will help to foster a good working relationship between you and your staff, which can in turn improve morale and efficiency. Their management skills, as it says in Henri Fayol’s principles of management. The children will need authority and responsibility, because accompanying power or authority gives the management the right to give orders to the subordinates. Another one is discipline, because it is essential and seen as the oil to make the engine of an organisation run smoothly.

On what I have understood on the functions of management, there are planning, organizing, staffing, directing and controlling. Planning is about the target they will achieve in the business, for instance, what is to be done in the future, when is the right time to do it and how can we do it. Assigning this to the Peterson Toys Ltd will be on the decision making, a strategy, scheduling meetings and budgeting, eventually, this can lead to attention on the businesses objectives. Organizing is coordinating and arranging activities in the business, they will need to give delegation equally to the workers, which is task allocation and this will lead to decrease in demotivation to workers, because the tasks are divided equally and more efficiency entering the workplace. Staffing is hiring and retaining an eligible and competent workforce. By using management skills they need to use good selection of upcoming workers, being assigned on training using their leadership skills and have good compensation. This can lead to bringing new ideas to the company, increase skill set in the workforce and have positive growth in revenue. Directing is motivating, guiding and supervising subordinates. Using leadership skills, they will need good communication with the workers, so they can feel at ease and motivated; this can improve the professional relationships in the workplace and it can increase confidence from the workers. Finally controlling, it is a backward looking process and it helps check on the activities of the organisation and to identify the errors and omissions in the activities. To manage this step, the business will need to record the quality checks and the amount of supplies or resources and if there are errors, they can report it and save it to reduce the situation with a corrective action. Using those skills, it can lead to increase in productivity and reduction in fraud and error in the products being sold. There are mainly 3 different types of leadership styles, autocratic, democratic and laissez faire, additionally there is also paternalistic. As for the owners of Peterson toys ltd , their father has used autocratic leadership style, this style of leadership involves a leadership style characterized by individual control over all decisions and little input from group members This leadership style can have disadvantages that can affect the employees and the business itself, first disadvantage is if wrong decisions are made then the workers will become dissatisfied with the leader, the employees rely on their managers/leaders and there is lack of improvement from workers. Although, it is an advantage that employees can join in the decision making and receives feedback from them and this leads to meeting the employees social needs. However when Jorge stepped down , the business began to drop. As they have used this, staffs have disliked the performance of the workplace and the tasks given to them and the lack of business vision and values. The disadvantages of autocratic is that it will demotivate workers and creative ideas have been utilized, which workers can’t share their opinions to improve the business. Autocratic will lead them to more decrease in sales, revenue, net profit and gross profit, then increase in staff turnover. This will also ruin the cash flow of the business, which should lead to increase in interests and bank charges and late payment fees on utilities and debts. As for the improvement in leadership style, I consider that Jorge’s children can use democratic leadership style, the reason is that, it can motivate their workers and share their feedbacks and opinions although in the end of the decision making the owners will end up taking the final decision, this can lead to more creativity and innovation in the workplace and this promotes development in workers. Additionally when ending up these decision making can have a chance

on increasing the revenue, gross profit and net profit and a decrease on staff turnover in the future. Many successful businesses and leaders use democratic leadership style to achieve their aims and objectives, for example George Washington, he has shown democratic style by appointing strong leaders to his staff and sharing their opinions and beliefs, a business example will be Google. As for management skills, the children will need to improve on coordinating with their employees, so they will feel welcome as before and as for leadership skills, they will need to improve on motivating and inspiring with the leadership style that i have explained. Show that they are important in the business and they give the workplace more success and reaching their goals. Many theories are also been used these days to achieve their aims and objectives in the business, but I will be sharing the best theories and models (in my opinion) that can be used. On my first, it is Edgar Schein model of organisational culture, this theory or method is used to shape and improve the culture and value in the internal and the external part in the business, they have 3 levels which are artifacts, espoused values and basic assumptions. This theory believes that the culture of the company determines the way the company develop its business, the relation with its suppliers, clients and with the final customer. Another one that I think is acceptable is role theory, this theory shows how individuals who occupy particular social positions are expected to behave and how they expect others to behave, I believe that this focuses on the social needs of the employees in the business. Last theory I will be adding on is Hertzberg’s two factor theory, these factors are hygiene factors and the motivators. Hygiene factors are the factors that must be present in the workplace to prevent job dissatisfaction, for example salary and supervision and motivators are the factors that influence a person to increase their efforts, for example, responsibility and achievement. Other motivational methods can be non-financial methods, for example, job rotation, job enlargement and job enrichment. This can improve the coordination and reducing the amount of delegations for each employee. Those steps can help Paula, Loris and Zoe to improve the workplace and the employees. In addition to their skills in management and leadership, they will need the Henri Fayol’s 14 principles of management, these principles will help them become skillful and more efficient in the business than if they had a broader range of tasks and everyone can have a specialized role.

References:

https://www.google.com/search? q=functions+of+management&safe=strict&rlz=1C5CHFA_enAE889AE889&sxsrf=ALeKk02U_mlm YUOkUaKJc4WTFK5mt0m3JA:1604929257194&source=lnms&tbm=isch&sa=X&ved=2ahUKEwic xY6yy_XsAhWQd98KHd2LBwQQ_AUoAXoECBkQAw&biw=1440&bih=789#imgrc=ghuAAW4Qi_n m8M https://www.google.com/search? q=disadvantages+of+autocratic+leadership&safe=strict&rlz=1C5CHFA_enAE889AE889&sxsrf=AL eKk0055M72bkbo3jtbK9tsp8trFwJ35w:1604931811890&source=lnms&tbm=isch&sa=X&ved=2a hUKEwjU3qT01PXsAhUMhlwKHY80CG0Q_AUoAXoECBoQAw&biw=620&bih=702#imgrc=hXZQh QXXW7yKmM https://www.google.com/search? q=paternalistic+leadership+style+advantages+and+disadvantages&safe=strict&rlz=1C5CHFA_en AE889AE889&hl=en&sxsrf=ALeKk03PIq-F4-DJSQTPgrs2JuWRUiIDw:1603606877890&source=lnms&tbm=isch&sa=X&ved=2ahUKEwj1jsOSjc_sAhWTh1wKHQfO A30Q_AUoAXoECBYQAw&biw=634&bih=702...