Unit 12 - Managing People

This is an extract of the full specification, which you can download from this page.

About this Unit

In this unit, you will explore the characteristics of different organisational structures and how these factors affect the managers and employees that work in them.

You will study the role of management and the skills that a manager should possess. You will learn about the different types of decisions that managers have to make and will assess the use of specific decision-making tools.

You will consider the difference between power and authority and be able to describe types of power. You will study why styles of leadership are important to the way in which a business functions and how the characteristics of each style impacts on staff motivation. You will consider how empowerment can be used to help motivate staff.

This unit builds on Unit 2 People in Business.

How you will be assessed

You need to complete the external assessment requirement for this unit which will require you to apply management principles to a series of short case studies. The external assessment is 1½ hours.

In the external assessment, you will be required to:

  • explain how organisational structures impact upon the management role and explain the role of managers
  • discuss the types of decision that managers are faced with in a given situation and be able to recognise the specific decision-making tools which may be appropriate to help managers to make decisions
  • identify the types of power used by managers in given situations. You will explain how power differs from authority and how a manager uses the two together to achieve results
  • discuss whether a leadership style is appropriate in a given situation and to apply models of motivation to given situations. You will be able to discuss how empowerment can be used to improve motivation and to explain the limitations of empowerment within organisations.

Types of Organisational Structure

You need to know, understand and be able to demonstrate how the structure of an organisation is affected by the following three dimensions:

  • tall as opposed to flat
  • centralised as opposed to decentralised
  • matrix as opposed to hierarchical.

How the organisational structure affects where decisions are made and how these are communicated to staff.

How the organisational structure affects the flow of information through the organisation and the ability for cross-functional teams to be used for projects.

Functions of Management

The roles and responsibilities of management, including:

  • planning
  • organising
  • monitoring and evaluating activities
  • reporting on the outcomes of business.

The skills of effective management, including:

  • technical skills – knowledge of products, subject area, the organisation
  • communication skills
  • organisational skills
  • interpersonal skills.

Types of Decision

The different types of decision with which managers are faced:

  • routine or non-routine
  • tactical or strategic
  • reactive or proactive.

The need for managers to consider the pros and cons of the following decision-making techniques and to appreciate the situations in which each is appropriate, including:

  • networks or Critical Path Analysis
  • statistical process control
  • decision trees.

Power and Authority

The difference between power and authority.

How problems with authority can lead to the inability to use power to lead staff effectively.

The difference between the following sources of power:

  • coercive power
  • reward power
  • expert power
  • legitimate (or position) power
  • referent power.

The characteristics of each type of power.

How managers use power to achieve outcomes within organisations.

How staff respond to different types of power and the types of power which are most appropriate in specific situations.

How each type of power affects:

  • the interaction between managers and subordinates
  • the willingness of staff to accept instructions.

Leadership Styles

The characteristics, advantages and disadvantages of the following leadership styles:

  • autocratic
  • paternalistic
  • laissez-faire
  • democratic
  • participative.

The problems with particular leadership styles in given situations.

How far managers can be expected to change their leadership style as the situation they face changes.

Models of Motivation

The theory of motivation as proposed in:

  • Maslow's Hierarchy of Needs
  • Herzberg's Two Factor Theory
  • McGregor's Theory X and Theory Y.

How the models relate to employees of different types and personal motivation. The need for managers to recognise the different motivational needs of different people in the workforce, including:

  • skilled as opposed to unskilled staff
  • manual or process-based as opposed to knowledge-based tasks
  • old as opposed to young staff
  • paid as opposed to volunteer staff.

How different management or leadership styles may affect motivation.

How different organisational structures impact on employee motivation.

The role of empowerment in developing motivation.

The problems with empowerment in terms of management control, devolution of power and authority and acceptance of responsibility.

How managers need to consider when and how to empower employees through delegation.