Lessons 8 · 1 lessons · E. Sariqov, B. Xaydarov. Fundamentals of Economic Knowledge (Economics), Grade 9, 4th edition. “Huquq va Jamiyat” publishing house, Tashkent, 2019
8
Managing a firm: management
Textbook: pp. 37–40
GoalKnow the concepts of management and manager, the management functions (planning, organising, leading, controlling), management styles and organisational structures.
A firm faces a goal and management is needed to reach it; both the process of managing and the science of managing are called management (English “management” means managing). A person with special knowledge of management who runs the work in a firm and directs staff is called a manager. A manager performs four tasks in turn: planning (setting the goal and programme), organising (coordinating the work of departments), leading (encouraging staff towards the goal) and controlling (checking the result). Because a leader spends much of the working time communicating with people, a culture of communication is an important quality. The bigger the firm, the more complex its management structure: in a two-person shop the owner manages directly, while in a supermarket department heads appear — middle-level managers. There are three main styles: autocratic (the leader decides alone), bureaucratic (relies on paperwork and instructions) and democratic (team members take part in decisions).
Worked examples
A student asked to organise a school celebration performs the four tasks: 1) planning — sets the date, place and programme; 2) organising — divides the jobs among groups; 3) leading — inspires everyone and settles disagreements; 4) controlling — checks the preparations and discusses the result.
One situation in three styles: an employee suggests a new promotion. An autocratic leader refuses: “I have decided.” A bureaucratic leader says: “Submit a written application; the instructions have no such clause.” A democratic leader discusses it with the team and decides to try the suggestion. Compare which style encourages initiative most.
Class activity
“Draw the structure”. Three firms are given: a two-person shop, a 20-person workshop, a 300-person factory. Groups draw a “who reports to whom” diagram for each and explain why the number of departments differs.
Practice
1
Name the manager’s four tasks in order.
planning, organising, leading, controlling
2
Which style: a) “I said it — do it”; b) “Let everyone give an opinion and we decide together”; c) “Nothing is done without paperwork”?
a) autocratic; b) democratic; c) bureaucratic
3
If a manager spends 75% of an 8-hour day communicating, how many hours is that?
6
4
Why is the management structure more complex in a large firm?
With many employees and departments one leader cannot manage everything, so middle-level managers and a chain of reporting are needed.