9) Management matters

Management means the members of administration of a business or an organization. They may be or may be not the owners of business. Also management means a skilful treatment of business in order to improve its performance. The main functions of management are:

-planning – the process of establishing objectives and suitable sources of action before taking action;

- organizing - the process of arranging an organization's structure and coordinating its managerial practices and use of resources to achieve its goals;

- leading - the process of directing and inspiring workers to perform the task-related activities of the group;

- controlling - the process of monitoring actual organizational  activities to see that they conform to planned activities.

Traditionally, there are two styles of management - autocratic and democratic.

Autocratic managers set objective for the group demonstrating their power and authority. They give orders and expect group members to obey them without any question. It is clear that in such situations group members do not make their own decisions.

Democratic managers, on the contrary, let group members set their own objectives. If they give orders they explain why and give reasons for their orders. Group members take part in decision making, they express different points of view. What is more, democratic managers take into consideration all their opinions before making a final decision. They also demonstrate the fact that the opinions of group members influence a final decision.

Researches show that the democratic style of management is much more effective. It leads to higher labor productivity, feelings of involvement into business and job satisfaction.

Of course, the autocratic management style can also achieve high productivity. However, researches show that such group members experience conflicts with management more often. They also show dissatisfaction with their work more often.

What modern researches also showed is that managers adopt more than one style in different situations (switching style).

A typical organization has three levels of management: the senior management, the middle management and the junior management. Heads of major departments within the organization make the senior level. Leaders of sections make the middle management level. The junior management level provides a link with the rest of the workforce.

Top management (President, Premier, Chairman of the board, Vice president)

- set objectives;

- scan environment;

- plan and make decisions.

Middle management (Head of accounting, Supervisory management)

- report to top managers;

- oversee first-line managers;

- develop and implement activities;

- allocate resources

Foreman, Supervisor (Chairman of the economic department)

- report to middle managers; - coordinate activities;

- supervise employees; - are involved in day-to-day operations

25. Human resources

Human resources is the term used to describe the individuals who make up the workforce of an organization. “Human capital” is the knowledge the individuals can contribute to an organization. It is responsible for:

• selection, training, assessment and rewarding of employees;

• overseeing organizational leadership and culture;

• ensuring compliance with employment and labor laws.

Human resources started to develop in the early 20st century. Human resources focuses on strategic initiatives (merger); talent management; successful planning; industrial and labor relations. It includes such aspects as: management, recruitment, selection, advice, training, competency mapping, performance evaluation, redundancy, payroll, promotions, career development.

Hire the right people Develop people to deliver service quality

CUSTOMER-ORIENTED

S ERVICE DELIVERY

Retain the best people

Provided needed support system

In practice HR is responsible for employee experience during the employment lifecycle.

RISK

Risk can be involved in any human activity which is connected with great number of factors that determinate positive or negative outcome.

1. Risk is presented in the form of possible failure, risk, financial and other losses

2. Risk is understood as a "way of action in unclear environment".

3. Risk is defined as a positive opportunity (chance) and negative (loss, damage) Risk performs many important functions, including innovation, regulatory (administrative), analytical and security

Risk mangement

To successfully manage risky situations you should follow these basic principles of risk:

1. Do not risk more than you own capital.

2. Do not risk large for small.

3. You must think about the consequences of risk.

Risk management has 8 steps: