Managers-interest and influence

Managers as Business Stakeholders

Definition

Managers are individuals responsible for the day-to-day operations of a business. They play a vital role in achieving the organization's goals and objectives and have a significant influence on various aspects of the business.

Interest and Motivation

Motivating Employees

• Managers must motivate employees to enhance productivity and provide excellent customer service.
• Example: A retail store manager may motivate staff by setting sales targets and offering performance-related bonuses.

Interest in Business Success

• Managers have a personal interest in the business doing well because it can lead to promotions, bonuses, and job security.
• Example: A marketing manager's career progression and income can be influenced by the success of marketing campaigns.

Influence on Business Operations

Decision-Making

• Managers make a wide range of decisions, from what products to produce to hiring and firing employees.
• Example: A manufacturing manager decides on production methods and staffing levels to meet production targets.

Policy Creation

• Managers are responsible for creating and implementing company policies that guide employees' actions and conduct.
• Example: HR managers establish policies related to employee benefits and workplace conduct.

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Managers-interest and influence

Continuous Review and Evaluation

• Managers continually review, evaluate, and alter their decisions, which can affect the organization's performance.
• Example: Marketing managers assess the effectiveness of advertising campaigns and adjust strategies accordingly.

Role of Managers

Functions of Management

• Managers perform various functions, including planning, organizing, commanding, coordinating, and controlling.
• Example: A manager plans the launch of a new product, organizes resources for production, commands employees to execute tasks, coordinates different departments, and controls project progress.

Motivation and Delegation

• Managers motivate employees through monetary and non-monetary factors, such as fair wages, job rotation, empowerment, and performance-related pay.
• Example: A manager may offer performance bonuses to sales staff to motivate them to achieve higher sales targets.

Financial Management

• Managers use financial data, ratios, and budget comparisons to make decisions and ensure the organization's financial health.
• Example: Finance managers compare sales figures with budget projections to determine whether adjustments are needed.

Challenges for Managers

Cash Flow Management

• Managers must ensure that there is enough cash to meet expenses and avoid financial crises.
• Example: Cash flow management is critical in retail businesses to pay suppliers, rent, and employees on time.

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Managers-interest and influence

Ownership and Control Conflict

• The conflict between owners (shareholders) and managers can arise when their interests diverge.
• Example: Shareholders may prioritize profit maximization, while managers might focus on profit satisfaction, leading to a divergence of interests.

In summary, managers are key stakeholders in a business, responsible for its day-to-day operations and decision-making. They have a personal interest in the success of the business and play a crucial role in motivating employees, creating policies, and ensuring efficient operations. The continuous review and evaluation of decisions are essential for adapting to changing circumstances. However, managers also face challenges in managing cash flow and reconciling their interests with those of the owners/shareholders.