Imparting the money management knowledge to children right from the early age will be rewarding in the long run. Since children spend most of the time at home, parents should make them realize the importance of money management.

Managing money, as we all know is crucial in every aspect of life. From raising a ‘kid’ to ’retirement’, money is needed. Income generation, investment and savings all requires effective money management on your part.

Here are some valuable money management tips which parents may use in realizing the essence of money management to their little ones:

As the kid start exploring new things, money comes into existence. For e.g. If your child demands $1 for buying a toy. At this time you should neither be so lenient nor too rigid. You should make them realize how the value of the cost related to the toy and what all it takes to built that toy.

Encourage your kid to play money management games such as game of life, payday, moneywise kids, easy money etc. All these interactive games will help your kid to learn the importance of money management more quickly.

Do not pamper your child by fulfilling all their financial demands. This way they might not respect money in the long run. Give them a small activity such as cleaning their bed sheet daily. Upon completing the task give them what they want. This will help the kids in implementing money management more effectively.

Try to involve kids into regular financial meetings and making them aware about the financial condition of the family. This will help them to learn money management in a more realistic manner.

Make sure that your kids do not waste things. For e.g. not properly eating the food, breaking the toys quite often, damaging the walls with pencil marks etc. All these things come with money and the parents should make their children realize this fact.

Make your child financially independent so that they can manage their money at their own. Just keep an eye on them what they are doing with the money and also assist them if they are unable to handle the finances properly. This will help your kid to take financial decisions on their own.

Parents play a crucial role in the upbringing of their children. Therefore they should be actively involved in realizing their kids, the importance of money management.



By: saurabh kanwar

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money management

You may never have heard of “the turtles” but this group of people who had never traded before went onto make $100 million quickly after 14 days training. Read their story and you will find it an inspiration on how to make money fast.

In 1983 trading legend Richard Dennis claimed everything about successful trading could be learned by anyone with a desire and a willingness to learn the right information.

He set about his task by gathering a diverse group OF people together, of all ages and backgrounds which included:

A boy fresh from school, an actor, a security guard, two card players and a female auditor.

He then mentored them for 14 days and set them off to trade.

The result?

They made $100 million for him and went on to become some of the most successful traders of all time proving anyone could trade and anyone could make money fast.

Now the facts are 95% of traders lose so why were this group so spectacularly successful?

Dennis understood that the reason people fail in trading is not that they can’t learn the knowledge anyone can – but most people simply cannot apply what they have learned and trade with discipline.

He therefore set about giving them a trading method they could understand and have confidence in – it was simple, so simple in fact that anyone could learn it but he gave them something more – CONFIDENCE that led to discipline to follow the method.

Trading is essentially simple and a simple method works best – its easy to understand and easy to apply and has less elements to break than a complicated one in the brutal world of trading.

Trading the Odds

He taught them a method that would get the odds in their favour and combined this with instilling mental discipline and a strict money management system, to keep equity intact and the rest is history.

Could you trade successfully?

The answer is yes.

If you have the desire to work smart and get the right knowledge you can have confidence in then the door to successful trading is open to you to, just as it is to anyone.

The problem with most traders is they think they can follow someone else – but it’s hard to follow someone else’s method and have confidence in it. Other traders simply learn the wrong knowledge, which gives them no chance of success.

Success comes from within

To have the mindset to trade with discipline is hard and comes from within – that’s why Dennis taught them a simple system, they could see the logic of and have confidence in.

If you can’t apply a method with confidence and discipline, you really have no method at all.

If you want to win at trading you have the opportunity to do so and take charge of your financial future – sure, it’s a challenge the question is:

Are you up for the challenge?

If you are – then you can do it, you just need to get the right knowledge and mindset to succeed and if you have the desire to be successful, you’re already halfway toward your goal.



By: Kelly Price

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LIQUIDITY MANAGEMENY SYSTEM

Introduction-

The first thing in liquidity management is managing the cash in hand. This basically constitutes of the cash that is usually kept at home for emergency. This comes handy, in case of instant hospitalization, where you have to pay money at the time of admission.

Though the amount kept as cash-in-hand will vary depending upon the number of family members and the expected requirements. However, a minimum of Rs 25,000-30,000 is essential because it is the bare requirement in most situations. This provides an element of safety for the individual. It is very important that this amount is kept away from daily expenses and if used, replenished quickly.

What is Liquidity?

We often hear the word liquidity used in combination with cash management. Liquidity is a firm’s ability to pay its short-term debt obligations. In other words, if the firm has adequate liquidity, it can pay its current liabilities such as accounts payable. Usually, accounts payable are debts owe to our suppliers.

There are methods we can use to measure liquidity. Financial ratio analysis will help us determine how liquid firm is or how successful it will be in meeting its short-term debt obligations. The current ratio will help us determine the ratio of current assets to current liabilities. Current assets include cash, accounts receivable, inventory, and occasionally other line items such as marketable securities. We need to have more current assets than current liabilities on our balance sheet at all times.

The quick ratio will allow determining if we can pay your short-term debt obligations, or current liabilities, without having to sell any inventory. It’s important for a firm to be able to do this because, if we sell have to sell inventory to pay bills that means we have to find a buyer for that inventory. Finding a buyer is not always easy or possible.

There is various other measure of liquidity that you will want to use to determine our cash position.

When your business is just starting up, we essentially run it out of a check book, which is an example of cash accounting. As long as there is cash in the account, our business is solvent. As business becomes more complex, we will have to adopt financial accounting. However, we have to keep a focus on liquidity and cash management even though our track net income through financial accounting.

Importance of liquidity management-

Regardless of the type of company, effective liquidity management is a core responsibility of its treasury group. Within a financial institution’s treasury, it is critical. Core revenue generating functions of banks “capital markets, lending, payments, etc. ” depend on sufficient levels of liquidity to operate. Further, as the financial world has become increasingly global, were a bank to have insufficient liquidity to fund a time-sensitive CLS payment or to finance lending activities (think Northern Rock), the ripple effects would be felt across the globe and the reputation of the institution would be seriously, if not irreparably, damaged. With these critical responsibilities, the ability of a financial institution’s treasury group to minimize idle balances and identify all cash flows is essential to its success.

Beyond the relationship between liquidity and the revenue generating functions of a financial institution are the costs resulting from inefficient management of it. Manual processes require excess staff, are prone to error and limit treasury’s ability to focus on optimizing liquidity and other strategic responsibilities. Further, much of the information required for the liquidity management process exists across multiple, disparate systems, in batch form and is typically not available in real-time. This results in the inability to quickly identify the lowest cost of funds, resulting in increased interest costs. Additionally, these results in the need for treasury to maintain a liquidity “cushion” to ensure liquidity levels do not drop too low.

The Liquidity Management Process -

Effective liquidity management requires three-steps in which treasury identifies, manages and optimizes liquidity. These steps are interdependent, each requiring the successful implementation of the other two to optimally manage liquidity.

Identifying liquidity is the foundation from which the entire liquidity management process depends. It involves understanding the balances and positions of the institution on an enterprise-wide level. This requires the ability to access and gather information across the institution’s many lines of business, currencies, accounts and, often, multiple systems. Identifying liquidity is primarily a function of data gathering, and does not include the actual movement or usage of funds.

Managing liquidity within a bank’s corporate treasury involves using the identified liquidity to support the bank’s revenue generating activities. This may include consolidating funds, managing the release of funds to maximize their use, and tasks that “free up” lower-costing funds for lending or investment purposes to maximize their value to the institution.

Optimizing liquidity is an ongoing process with a focus on maximizing the value of the institution’s funds. As the strategic aspect of liquidity management, optimizing liquidity balances requires a strong and detailed understanding of the financial institution’s liquidity positions across all currencies, accounts, business lines and counterparties. With this information, the bank’s treasury is able to map the strategic aspects of the institution into the liquidity management process.

The biggest challenge in the liquidity management process is the limited time and resources available to treasury. Although treasury groups are staffed with very capable personnel, a large amount of their time is spent on the task-based function of identifying liquidity instead of on the strategic elements necessary to optimize balances. This results in the entire liquidity management process being less efficient and affects the institution’s bottom line.

Basic steps for liquidity management-

How companies are implementing steps to improve their liquidity management using these three steps:

1. Improve visibility with centralized payment workflow & approval

2. Reduce costs with electronic execution of payments

3. Reduce fraud and erroneous payments

The economic downturn is affecting how financial institutions manage liquidity in a number of ways. It has particularly affected the liquidity of financial instrument portfolios, which now need to be thoroughly reappraised.

If this is our situation regarding liquidity management-

Liquidity management procedures are inadequate, and restrictions are obsolete and prevent business from going forward The existing level of control over liquidity and cash flows is no longer sufficient Additional volume of liquid reserves needs to be attracted to close the liquidity gap Liquidity contingency plans are not realistic in the current market conditions Fair value and maturity of assets as well as conditional liabilities that could materialize in the current environment need to be identified Quick decision making often fails to follow the even faster economic environment The end-of-the-day report, uploaded from the IT system, is always late ALM and risk management teams fail to collaborate How to Maximize Your Cash Flow-

Our goal, as the owner and manager of a company, is to squeeze all the cash out of balance sheet that we can. Not only have we wanted to get as much cash out of our company as we can, to keep it out in case of a potential or actual crisis.

Two of current asset accounts are usually big drains on cash. They are inventory and accounts receivable. Inventory is the products you sell and accounts receivable are our credit accounts or those the accounts that represent the credit extend to customers. The balances in both accounts need to be converted to cash as soon as possible.

We can use financial ratio analysis to check out our position regarding inventory and accounts receivables. Inventory turnover ratios can tell us if our inventory is obsolete or if we are selling so fast our stocking out. Accounts receivable ratios, such as day’s sales outstanding, can tell us how fast our credit customers are cleaning up their accounts among other things. Once we determine the position of our inventory and receivables, we can take the appropriate actions to adjust the situations and have more cash coming in to the firm.

Conclusion-

The bottom line to good cash management is that, in a crisis, typical financial statements become irrelevant and all that is important is surviving from a cash point of view. In a cash crisis, such as a recession, a business owner’s focus becomes, by necessity, very short-term. Often, a cash crisis will instill good cash management practices into business managers that carry over from that day forward.

References-

Alexander, Carol et al. : Risk Management and Analysis. Bessis, Joel : Risk Management in Banking. Brockhaus, Oliver et al. : Equity Derivatives and Market Risk Models. Modeling and Hedging Equity Derivatives.

By: chinmoy ghosh

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The New York Stock Exchange has always been seen as a trusted investment institution where people become rich.  The Stock Market has produced many millionaires who followed the right stock advice and invested in the right stocks at the right time.

Many average Americans have followed suit and put their faith in the stock exchange as a trusted wealth producing institution.  They are happy to include their S & P Fortune 500 stock or two in their 401K or retirement plan.

Choosing the right investment often times is left to the professional financial planner or broker’s investment research and 401K advice by trusting average Americans. The planner tries to diversify the investments.  Sometimes they include gold or other precious metals because they know the gold price will rise during difficult economic times such as a recession.

The old adage “It takes money to make money” is true on Wall Street.  The more money one has to invest, the better stock portfolio can be created. The average American has to count on their 401K portfolio that the company offers.  Many long term employees bought shares in their company stock year after year.

In 2001 the average Americans learned a hard lesson with the highly touted Fortune 500 Enron stock.  Whether you were an employee of the company or whether you or your investment consultant decided to include Enron as one of your investment opportunities, the collapse of the Enron Corporation destroyed these investors and their retirement planning dreams.

A friend of mine confided in me that he really took a hit with the Enron collapse, and he has to keep working beyond his planned retirement date. The Enron Employees lost everything…..their job, their 401K, and all their stock holdings.

Due to the greed and manipulation by the corporate heads of the company, the Enron collapse had an estimated loss of $618 million and eliminated $1.2 billion in shareholder equity. This should have been a warning to all investors.

WARNING: Greed and manipulation is a part of corporate America!  We may never know how many individual lives were affected by the Enron collapse, just as we never know how many average American families’ lives have permanently been altered by the abuses of corporate America in the housing and banking crisis of 2007-2008.

In a recent conversation with my brother he shared with me that his company’s stock shrunk to $0.97 per share down from a high of $57.00 (December 2006). His company’s stock portfolio was going to be the means by which he would pay for his three boys to go to college.  But all he has left is a penny stock.  I didn’t need to ask how many shares he had; it wouldn’t make a difference.

 In 2009 the same corporate greed of the last two years reaches far beyond Houston, Texas, where Enron was located.  Across America, from California to New York average American families who had pinned their hopes and dreams for the future on their stock and 401K investments have lost everything including their jobs and their homes. By now 8.5 million Americans have lost their jobs.

“Who do you trust?” Where can the average American go to invest in his/her future? Are we ever again able to believe corporate America, Wall Street Brokers, the New York Stock Exchange, Banks, Financial Planners to direct us to a place where one can locate a high yield safe investment?  Does anyone have any other investment ideas as where to put their money?

Will my brother’s stock ever reclaim the $57.00 value it once had? Can the average American trust themselves with an investment program of their own?  Are they willing to do their own investing?  Are banks and their 3% return on CD investments of $10,000 for 30 months the answer?  Does the average American have that kind of cash flow to give to Banks?

What’s the difference between a 3% return on $15,000 investment and a $15,000 return on a $3 investment?  The first answer is cash flow.  Most Americans may be able to afford the three dollars, but definitely not the fifteen thousand, and especially not for thirty months!

A lot of people are against gambling for a lot of different reasons. But the stories of Enron 2001, and corporate America 2007-2008, whom we thought we could trust have gambled away our money with reckless abandon with unregulated hedge funds for their own profit taking.

Which is worse — to risk your own money or to give your money to someone else who could possibly gamble it away?  What is the difference of investing your money in a low risk high yield Pick 4 investment—win or lose, or give your money to a stock broker who could gamble it away?

Every successful investment system is based on KNOWLEDGE & STRATEGY. If an investor of any kind gains this knowledge and learns the strategies, they can be SUCCESSFUL, too.  But does the average American trust him or herself enough to handle his or her own investing?  Or are we stuck with Corporate America?

Dr. Benjamin Spock once said: “Trust yourself. You know more than you think you know.”



By: Robert Walsh

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Why do some forex traders fail while just a handful succeed?

Why do so many new and intermediate traders blow up their accounts (again and again?) How can you prevent blowing out yours?

It’s not the answer you likely want to hear.

The answer is not to have the best strategy.  You should be well aware that there are many, many forex strategies that  work well – technical strategies, trending strategies, price action strategies, scalping strategies, and even discretionary strategies and so on.

So why does one trader trade a strategy successfully and another trader trade the same exact strategy unsuccessfully?

The answer is this:  The successful trader uses good money management.

I could write a lot more on the rationale for this. But I don’t want to bore you or start preaching about it.

Instead I will just tell you what to do to make sure you are using good money management.  Ready?

Again, it’s probably not something you want to hear.

Rule 1 ) 

Never risk more than 5% of your account on any one trade.  (If you want to know why, then just do a google search for the rationale.  I’m not here to preach this to you or convince you. I just want to keep it simple so you can apply the guidelines and start successfully trading quickly. )

Rule 2)

 Stop Loss – Set your stop loss so that you never lose more than 5% on any one trade.  If you see a trade set up, but you also see that the set up requires a stop loss that will  cause you to risk more than 5% on the trade – then DON’T take that trade.  There will be another trade that fits your parameters soon. Take the good trade that allows you to stay within your money management parameters.

Yes, I know that applying forex money management seems to take some of the fun and excitement out of Forex.

But if you want to trade Forex as a business and for profit, you will treat it as such and always apply proper money management.   Money management is the difference between the person who is “gambling in forex” verses the person who is successfully managing their forex business.

 

 

 



By: Ann Pevey

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One of the crucial components of trading forex signal is the proper money management system. It is a major and very important element of forex trading. Profits cannot be achieved and sustained without one. Basic purpose of money management system is to protect trading account from excessive losses and to preserve profits. The proper money management is absolutely necessary and any trading activity will have no future without one.

Money management is the most important tool while trading forex signal systems. It will control the risk and distribute investment strategy in such a manner that the trading account will be protected against few consecutive losses and will preserve the ability to continue trading when such a situation occurs.

This aspect of speculative forex signal trading is tightly connected with trader’s psychological approach to trading. Any devotions from it would be an indicator of typical human’s emotions as greed or lack of discipline which are the main reasons for failure in this field. Not having money management system in place would effect in damaging the trading account to such a point that it would be impossible to bring it back to good shape again or totally destroying it.

As we know the trading forex signal can be very unpredictable task especially in current difficult market conditions. It is down to proper techniques and discipline to show profits on the end of the day. Money Management system can be sometimes the only thing to save forex signal trader from disaster.

It is very difficult to choose the system which would suit particular trader or trading style. There is a huge amount literature devoted to money management systems and some of those opinions would contradict each other. It can be very confusing especially for inexperienced traders.

Proper money management system would vary one from the other and would depend of many different points as;

 trading style, time frame used, duration of trades, amount of trades at the time, account size, past performance, trader personality or even trader’s lifestyle.There is no solid scheme to construct one good money management system and every forex signal trader has to develop it himself and adjust it to his own trading practices.

The important point is that professional forex signal trader would have a money management system constructed even before his trading system. The way the trades are placed, amount of them, risk taken etc.

There are few essential points of every good money management system.

-Allow significant amount of time for the trading system to prove its profitability long term and test it in different market conditions. Choose time frames; calculate stop losses and amount of trades placed at the time. This would give the solid base and confidence for future management system.

- From your past performance calculate possible consecutive losses which may occur and be ready for it. It will happen! Based on this study decide on how much of account equity will be risked per trade placed. It is a rule to risk 3% of the account in singe trade.

-Allow sufficient capital reserve in case of single loss or series of consecutive losses.

-Do not calculate stop losses based on a fixed percentage or the sum from the account equity. Here technical trading levels in accordance with particular forex signal system should be used.

-Avoid averaging. It is a technique very popular among novice forex signal traders where new position is added to an existing one that has floating loss. It is short lived and dangerous practice in forex signal trading. Accept your loss and move on. There are more opportunities around the corner.

-Try to keep risk/reward ratio above 1

-Do not be greedy. There is no way in forex signal trading to get rich quick.

Apply above rules and stick to them. Remember that forex signal trading is not a gamble but mathematically structured business.



By: Roman Sadowski

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In order to understand your currently financial situation, you must provide financial statements below. These financial statement will give you a snapshot of your financial situation and it gives you a clear view of your spending habits, regarding your assets and liabilities.

1. Statement of net worth

a) Statement of net worth he difference between your assets and liabilities, including all liquid assets, equity in investments, equity in personal assets, and deferred income taxes, such as k401 and any retirement saving plan. This is the best single measurement of your financial condition and resources.

b) It helps to determine the ratio between your total assets and liabilities, usually the Equity ratio=total liabilities/total assets less than 0.5 is good.

2. Equity ratio for liquidity

The equity ratio for your liquid assets and short-term debts provides a measurement of your ability to pay short-term obligations. Usually short term debt/ liquidity assets less than 0.5 is good.

3. Equity ratio for investment assets

a) This ratio shows the level of your investments leveraging

b) The interest you pay on the loan is tax-deductible if money are borrow for investment purposes.

4. Statement for household expenditure

a) This is the expenses for thee cost of accommodation only including rent or the interest paid on your mortgage.

b) It is also for the cost to own a car

5. Statement of cash flow

It shows the total flow of cash over a period of time from all sources of income and expenses.

6. Balance sheet

This provides a snapshot of your financial situation and it gives you a overview of your spending habits.

I hope this information will help. If you need more information of insurance or series of articles of the above subject at my home page at:

http://medicaladvisorjournals.blogspot.com

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

All rights reserved. Any reproducing of this article must have all the links intact.



By: Kyle J. Norton

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Before you start-off your journey in money marketing, consider the following Forex Money Management Strategies first and keep the risks low as much as possible.

For Beginners: Low aim equals low risk.

It has been always a good practice for starters not to pour all of their wealth into the entire thing. It is common for beginners not to win on the first round. This is one of those fields that do not take the beginner’s luck philosophy. Since you are just starting, your goal should be not to earn right away, but learn as much as you can and commit as much mistakes as possible so you would know what not to do in future endeavors.

Invest in reliable Trading Platforms

There are about thousands of platforms available online. How do you choose which one will work for you? The perfect answer to this would be research. If you know people who are into money marketing, then it would be perfect to get their inputs. The secret to winning the forex game is getting the perfect software that will work for you. Do not be blinded though by the expensive platforms as it does not generally mean that expensive software will guarantee results. Choose your platform carefully. No all best-selling platforms will work for you.

Keep an investment diary

Take note of all the things you have done for the day. In the future, your financial diary can help you review the things that worked and did not work in the past. With these, you will be able to distinguish what strategies you should be replicating and which ones you should be letting go right away.



By: Tim Rohrer

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As a novice trader I was looking at forex education on the net and looking to buy course and found one that’s perfect for novices. It’s easy to understand, easy to apply and it makes profits. Let’s review it.

The first thing I liked about the course was it was not just a sequence of numbers or an equation – it actually explains the logic behind the numbers and told me why and how the patterns develop.

Anyone who wants to buy the course gets 2 PDFs free (you don’t even have to give your email) which I thought was confident- the author obviously thinks people will come back! And after reading the 60 pages I can see why.

The PDF’s were written so traders know exactly what it takes to become a successful trader. The first one explained the mindset you need to succeed and the second why the bulk of traders lose.

These are quite simply two of the best PDFs on trader psychology I have read and tempted me to buy the course.

When I got the course I read through it – its easy too understand and is simply based around support and resistance and the velocity of price, to time entry – hence its name, The Velocity Breakout System or VBM for short.

The courses main theme is that you need to trade using valid support and resistance but you can’t predict if levels will hold or break – if you do you are hoping and if you hope or guess, you will lose.

The course is big on trading price momentum – If price momentum supports the set up trade it – if it doesn’t, forget it.

Does it work?

I have found that I have made good profits overall and made 57% on my account equity in 4 months, on 3 trades, so it’s worked for me and I am confident using it.

A word of caution with the course is – it doesn’t suit traders who like action.

The VBM set ups only come around a few times a month but as the course says – the aim is to make money and that doesn’t rely on trading frequently.

Furthermore, it is up to you to set the money management parameters and this is simple but results will vary.

Keep in mind this is not just a number sequence you apply blindly, you customize the basics the way you like them, in line with your trading personality and risk tolerance.

All in all, it’s easy to understand and apply, all the logic is fully explained and it’s a great system for novices and traders who want to take a system and make it their own.

As the course points out – you don’t make money unless you understand the logic and from this understanding flows confidence and discipline and these traits as we all know are essential to success.

I have had the lots of systems and tried them but never stuck with them as they were number sequences and I had no confidence – the key to the VBM is you understand the logic and that gives you the confidence to follow the system.

Another great thing I liked about the course was even before I bought it and had just downloaded the initial PDFs, my queries were answered promptly and in great detail.

The reason for this is the guys who wrote the course are traders NOT just e-book sellers.

What I loved was the daily weekly and special situations reports the guys post on the website. They show what their doing and help you spot the set ups for two months free which I thought was a nice touch and helped me really get into the system.

The reports were easy to understand and the set ups clear and while I followed it, the guys were calling the big trends as well and obviously making money.

All in all if you want a great course, that is easy to understand and profitable, then the VBM is a good start and unlike many other courses, it doesn’t claim you will be success, thats down to you. – As the authors say, we will give you the tools but you need to pick them up and use them.

I have and made some great profits and highly recommend this course.

One final point – get the free PDF’s even if you don’t buy the course there a great freebie and you can download them without giving an email or any of your details.



By: David Windsor

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All in all there are 6 managerial styles. Now what I am not saying is that there are any right or wrong answers here.

You as a leader need to adopt the right style to fit the situation and the person. But what I am saying is that some styles are better suited to certain situations than others.

And also, if you keep to the same style no matter what the situation this can have adverse affects from you staff and performance.

So, want to know what the 6 managerial styles are and what they mean?

Here goes!

THE COERCIVE MANAGEMENT STYLE **

Manager who uses this is intent on obtaining immediate compliance from employees. Conversation is one way.

Very directive. He/she tightly controls situations and emphasizes negative rather than positive feedback.

The manager wants employees to do their work exactly as the manager wants it.

HOMEWORK **

Do you use this style?

What situations do you think it would be appropriate to use this style?

What situations do you think it would not be appropriate to use this style?

THE AUTHORITATIVE MANAGEMENT STYLE **

The manager’s goal here is to provide vision and focused leadership. Long term thinking and a clearly stated direction.

Decisions are made by the manager but some employee input is sought to reality test decisions. This style also relies on the skillful use of influence to gain employee buy-in to decisions. A firm but fair approach.

HOMEWORK **

Do you use this style?

What situations do you think it would be appropriate to use this style?

What situations do you think it would not be appropriate to use this style?

THE AFFILIATIVE MANAGEMENT STYLE **

Manager uses this to promote harmony, cooperation, and good feelings among employees.

Affiliative actions include accommodating family needs that conflict with work goals, quickly smoothing tensions between employees, or promoting social activities within the team.

The manager pursues being liked as a way to motivate people.

He/she puts people first and tasks second.

HOMEWORK **

Do you use this style?

What situations do you think it would be appropriate to use this style?

What situations do you think it would not be appropriate to use this style?

THE DEMOCRATIC MANAGEMENT STYLE **

Manager focuses on building group consensus and commitment through group management of the decision-making process.

Requires a hands-off style and a heavy emphasis on team participation. Employees are trusted to have the skills, knowledge and drive to come up with decisions to which everyone is committed.

Manager’s role is only to fine-tune and approve the plan.

HOMEWORK **

Do you use this style?

What situations do you think it would be appropriate to use this style?

What situations do you think it would not be appropriate to use this style?

THE PACESETTING MANAGEMENT STYLE **

Manager uses this style to focus on accomplishing a great deal of top quality work him-or herself. Employees are thought capable of achieving their own goals with little supervision.

When performance is not up to standard, the manager will do it him- or herself.

Emphasis on “Doing it myself”

HOMEWORK **

Do you use this style?

What situations do you think it would be appropriate to use this style?

What situations do you think it would not be appropriate to use this style?

THE COACHING MANAGEMENT STYLE **

Directed towards professional growth of employees.

Manager focuses on helping employees identify their strengths and weaknesses, improvement areas and set development plans that foster career goals.

Manager creates an environment that supports honest self- assessment and treats mistakes as learning opportunities in the development process.

HOMEWORK **

Do you use this style?

What situations do you think it would be appropriate to use this style?

What situations do you think it would not be appropriate to use this style?

You will always have a dominant style that you use more than any other. It’s always really interesting to see the mix of how often you use the other styles as well.

Think about what styles you use the most often.

Are they effective?

Are you a one dimensional leader that uses the same style over and over again?

What could you do to develop you skills in the other managerial styles?

I’ll leave them with you!



By: SEAN MCPHEAT

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