Management influences the business performance of modern organizations, and includes the functions of planning, organizing, leading and controlling. The manager is responsible for stability and efficiency, and can learn to plan and control easier than to lead, because that is related to his personal characteristics and his intuition. The manager is achieving set goals of the organization together with the employees by directing and coordinating their work. Leadership is influencing the employees in order to create and control changes that present common goals, while taking on personal responsibility. The leader enables a positive atmosphere with his humane leadership and creates an environment with values that increase employee motivation for work. Learning organizations are aware of reasons for empowering employees, which means that the leader satisfies higher motivated needs of followers by dividing and delegating power or authority down the hierarchical scale.
In the research part, with the help of a survey questionnaire that has been submitted to public and private sectors, we evaluated five dimensions of management which directly influence the organizational climate and culture in the organization: effectiveness and efficiency of the organization, employee development and training, manager’s competences, management style and employee satisfaction. The research examined the set hypotheses, determined the current state of employees in Slovenia and compared it with international findings and statements in selected articles, such as Croatia and Germany. Based on the research, we find that effectiveness and efficiency are mostly depended on decision making of the management, while they also depend on the organization as a whole and all the employees who pursue its goals.
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