Figure 1. Skills needed at various levels of management

All managers need human relations skills. At the top, managers need strong conceptual skills. First-line managers need strong technical skills. Middle managers need to have a balance between technical and conceptual skills.

3. Comprehension questions.

1. What skills are involved in the process of management?

2. What do technical skills involve?

3. What do human relations skills include?

4. How can you decribe conceptual skills?

5. What is the most difficult task to learn for most managers?

6. What is decision making?

7. What specific skills will you need to develop your managerial potentials?

8. What will you need to rise to top management?

4.Talking points.

1. Discuss with your friends the role of management and managerial skills in different sphere of business.

2. Talk to several people who work in marketing and see how they enjoy their job.

Text 2 leadership styles

There are managers and there are leaders in business. The difference between managers and leaders is that managers produce order while leader create change. Leadership is creating a vision for other to follow, establishing corporate values and ethics, and transforming the way the organization does business so that it is more effective and efficient.

In the book Workplace 2000 the authors say that leaders, like managers, plan, organize, direct, and control. But when leaders plan, they plan more globally in terms of setting the agenda for the firm. Leaders organize, but their focus is on structuring or restructuring the organization to be competitive in world markets. Leaders direct and control, but their direction involves creating a vision and their control consists of empowering people and holding them responsible for finding their own means to those ends. Let's look at other ways that leaders differ from managers:

Managers Leaders

Do things right Do the right thing

Command and control Inspire and empower

Seek stability and predictability Seek flexibility and change

Are internally focused Are externally oriented

Nothing has challenged researchers in the area of management more than the search for the "best", leadership traits, behaviors, or styles. Thousands of studies have been made just to find leadership traits, that is, characteristics that make leaders different from others. Intuitively, you would conclude about the same that researches found: that the research findings were neither statistically valid nor reliable. You and I know that some leaders seem to have traits such good appearance and tact while others appear unkempt and abrasive.

Just as there is no one set of trails that can describe a leader, there is no one style of leadership that works best in all situations. Let's look briefly at a few of the most commonly recognized leadership styles and where they may be effective:

1. Autocratic leadership involves making managerial decisions without consulting others and implies power over others. Many business people who were sports leaders seem to use rather successfully an autocratic leadership style that consists of issuing orders and telling players what to do. Motivation comes from threats, punishment, and intimidation of all kinds. Such a style is effective in emergencies and when absolute followership is needed (for example, on army manoeuvres). Some football, basketball, and soccer coaches have successfully used this style.

2. Democratic or participative leadership consists of managers, and employees working together to make decisions. Research has found that employee participation in decisions may not always increase effectiveness, but it usually does increase job satisfaction. Many new, progressive organizations are highly successful at using a democratic style of leadership where traits such as flexibility, good listening skills, and empathy are dominant. Some organizations that have successfully used this style include Wal-Mart, Federal Express, DBM, Xerox, and AT&T.

3. Laissez-faire or free rein leadership involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives. In certain professional organizations, where managers deal with doctors, engineers, and other professionals, the most successful leadership style is often one of laissez-faire leadership. The traits needed by managers in such organizations include warmth, friendliness, and understanding.

Individual leaders rarely fit neatly into just one of these categories. Researchers Tannenbaum and Schmidt illustrate leadership as a continuum with varying amounts of employee participation ranging from purely boss-centered leadership to subordinate - centered leadership.

Which leadership style is best? Research tells us that successful leadership; depends largely on who is being led and in what situations. It also supports the notion that different leadership styles ranging from autocratic to laissez-faire may be successful depending on the people and the situation.

In fact, any one manager may use a variety of leadership styles depending on whom he or she is dealing with and the situation. A manager may be autocratic but friendly with a new trainee; democratic with an experienced employee who has many good ideas that can only be fostered by a manager who is a good listener and flexible; and laissez-faire with a trusted, long-term supervisor who probably knows more about operations than the manager does.

The 12 Golden Rules of Leadership 1. Set a good example. Your subordinates will take their cue from you. If your work habits are good, theirs are likely to be, too. 2. Give your people a set of objectives and a sense of direction. Good people seldom like to work aimlessly from day to day. They want to know not only what they're doing but why. 3. Keep your people informed of new developments at the company and how they'll affect them. Let people know where they stand with you. Let your close assistants in on your plans at an early stage. Let people know as early as possible of any changes that'll affect them. Let them know of changes that won't affect them but about which they may be worrying. 4. Ask your people for advice. Let them know that they have a say in your decisions whenever possible. Make them feel a problem is their problem, too. Encourage individual thinking. 5. Let your people know that you support them. There's no greater morale killer than a boss who resents a subordinate's ambition. 6. Don't give orders. Suggest, direct, and request. 7. Emphasize skills, not rules. Judge results, not methods. Give a person a job to do and let him or her do it. Let an employee improve his or her own job methods. 8. Give credit where credit is due. Appreciation for a job well done is the most appreciated of "fringe benefits." 9. Praise in public. This is where it'll do the most good. 10. Criticize in private. 11.Criticize constructively. Concentrate on correction, not blame. Allow a person to retain his or her dignity. Suggest specific steps to prevent recurrence of the mistake. Forgive and encourage desired results. 12. Make it known that you welcome new ideas. No idea is too small for a hearing or too wild for consideration. Make it easy for them to communicate their ideas to you. Follow through on their ideas.

The 7 Sins of Leadership 1. Trying to be liked rather than respected. Don't accept favours from your subordinates. Don't do special favours trying to be liked. Don't try for popular decisions. Don't be soft about discipline. On the other hand, these items can cancel any constructive image you might try to establish. 2. Failing to ask subordinates for their advice and help. 3. Failing to develop a sense of responsibility in subordinates. Allow freedom of expression. Give each person a chance to learn his or her superior's job. When you give responsibility, give authority, too. Hold subordinate Have a sense of humour. Don't give up. accountable for results. 4. Emphasizing rules rather than skill. 5. Failing to keep criticism goes wrong, do you tend to assume who's at fault? Do you do your best to get all the facts first? Do you control your temper? Do you praise before you criticize? Do you listen to the other side of the story? 6.Not paying attention to employee gripes and complaints. Make it easy for them to come to you. Get rid of red tape. Explain the grievance machinery. Help a person voice his or her complaint. Always grant a hearing. Practice patience. Ask a complainant what he or she wants to do. Don't render a hasty or biased judgement. Get all the facts. Let the complainant know what your decision is. Double-check your results. Be concerned. 7. failing to keep people informed.