Chapter 7 Management and Leadership PDF

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Chapter 7...

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Chapter 7 Management & Leadership

Management The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources Today’s managers:

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Younger and more progressive o Growing numbers of women o Fewer from elite universities Emphasis on teams and team building Must be skilled communicators and team players

Four Functions of Management

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Planning o Setting organizational goals o Developing strategies to reach those goals o Determining resources needed o Setting precise standards Leading o Guiding and motivating employees to work effectively to accomplish organizational goals and objectives o Giving assignments o Explaining routines o Clarifying policies o Providing feedback on performance Organizing o Allocating resources, assigning tasks, and establishing procedures for accomplishing goals o Preparing a structure (organization chart) showing lines of authority and responsibility o Recruiting, selecting, training and developing employees o Placing employees where they’ll be most effective Controlling o Measuring results against corporate objectives o Monitoring performance relative to standards o Rewarding outstanding performance o Taking corrective action when necessary

Sharing the Vision and Defining the Mission Vision More than a goal, it’s a broad explanation of why the organization exists and where it’s trying to go Mission Statement Outlines the organization’s fundamental purposed. It includes:      

The organization’s self-concept Its philosophy Long-term survival needs Customer needs Social responsibility Nature of the product or service

Setting Goals and Objectives Goals The broad, long-term accomplishments an organization wishes to attain Objectives Specific, short-term statements detailing how to achieve the organization’s goals Planning Answers to Fundamental Questions SWOT Analysis Analyzes the organization’s Strengths, Weaknesses, Opportunities, and Threats 

How can we get to our goal from here? o Strategic planning  Done by top management and determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them o Tactical planning  The process of developing detailed, short-term statements about o Operational planning  The process of settling work standards and schedules necessary to implement the company’s tactical objectives o Contingency planning  The process of preparing alternative courses of action the firm can use if is primary plans don’t work out

SWOT Matrix

Planning Functions

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Strategic Planning o The setting of broad, long-range goals by top managers Tactical Planning o The identification of specific, short-range objective by lower-level managers Contingency Planning o Backup plans in case primary plans fail Operational Planning o The setting of work standards and schedule

Rational Decision-Making 1) 2) 3) 4) 5) 6)

Define the situation Describe and collect needed information Develop alternatives Decide which alternative is best Do what is indicated Determine whether the decision was a good one and follow up

Problem Solving The process of solving the everyday problems that occur; less formal than decision making and needs quicker action 

Problem-solving techniques include brainstorming and PMI o PMI – Listing all the pluses for a solution in one column, and all the minuses in another and the implications in a third

Levels of Management

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Top Management o The highest level, consists of the president and other key company executives who develop strategic plans  President, Vice Presidents, CEO, COO, CFO, CIO, CMO Middle Management o Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling  Plant managers, Division heads, Branch managers Supervisory (First-Line) Management o Those directly responsible for supervising workers and evaluating daily performance  Supervisors, Foremen, Department heads, Section leaders Nonsupervisory o Employees

Managerial Skills Technical Skills The ability to perform tasks in a specific discipline or department Human Relations Skills Skills that involve communication and motivation; they enable managers to work through and with people Conceptual Skills Skills that involve the ability to picture the organization as a whole and the relationship among its various parts Staffing Recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives  

Recruiting good employees is critical Many people are not willing to work at companies unless they are treated well with fair pay

Leadership Leaders Must: -

Communicate a vision and rally others around that vision Establish corporate values Promote corporate ethics Embrace change Stress accountability and responsibility

Transparency The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders Leadership Styles 1) Autocratic Leadership a. Making managerial decisions without consulting others 2) Participative or Democratic Leadership a. Managers and employees work together to make decisions 3) Free-Rein Leadership a. Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives

Empowerment Progressive leaders give employees the authority to make decisions on their own without consulting a manager

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o Customer needs are handled quickly o Manager’s role less of a boss and more of a coach Enabling o Giving workers the education and tools they need to make decisions Knowledge Management o Finding the right information, keeping the information in a readily accessible place and making the information known to everyone in the firm

5 Steps of Controlling

Measuring Success  

Traditional forms of measuring success are financial Pleasing employees, stakeholders and customers is important o External Customers  Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own use o Internal Customers  Individuals and units within the firm that receive services from other individuals or units...