Ch 8 - MANAGEMENT AND LEADERSHIP

MANAGEMENT AND LEADERSHIP Chapter 8 1 MANAGERS’ ROLES ARE EVOLVING Managers practise the art of getting things done through organizational resources. Resources is a general term that incorporates: human resources (e.g., employees) natural resources (e.g., raw materials) financial resources (e.g., money) 2 Functions of Management 3 Questions of planning What is the situation now? Where do we want to go? How can we get there from here? 4 Planning: create vision A vision is more than a goal; it’s an encompassing explanation of why the organization exists and where it’s trying to head. A vision gives the organization a sense of purpose. Values are a set of fundamental beliefs that guide a business in the decisions they make. A mission statement is an outline of the organization’s fundamental purposes. 5 Planning: create vision Goal(s) are the broad, long-term accomplishments an organization wishes to attain – usually expressed in terms of measurable objectives. Objectives are specific, short-term statements detailing how to achieve the organization’s goals. Plans are the ordered sequences of strategies an organization uses to achieve each objective. – plans always have a time element. 6 planning A large part of creating measurable objectives is to understand what you are good at and what you are not good at, referred to as SWOT Analysis: Strengths and Weaknesses are things within the control of your organization. Opportunities and Threats are things outside your control and things you have to find information about to act on. A manager has to know: How can strengths be used and capitalized on, How can weaknesses be improved, How can opportunities be exploited, how can threats be mitigated. 7 planning Strategic planning outlines how the company will meet its objectives and goals. It provides the foundation for the policies, procedures, and strategies for obtaining and using resources to achieve those goals 8 Planning Tactical planning is the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done. 9 planning Operational planning is the process of setting work standards and schedules necessary to implement the company’s objectives. Operational planning focuses on the specific responsibilities of supervisors, department managers, and individual employees. 10 planning Contingency planning is the process of preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives. The economic and competitive environments change so rapidly that it’s wise to have alternative plans of action. 11 Crisis planning Crisis planning involves reacting to sudden changes in the environment. Can be especially challenging to medium-sized and smaller companies due to fewer resources. 12 Decision making Choosing among two or more alternatives Define the situation Describe and collect needed information Develop alternatives Develop agreement among those involved Decide which alternative is best Do what is indicated (begin implementation) Determine whether the decision was a good one and follow up. 13 Organizing: Creating a Unified System Organizing: allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives. Organization chart: a visual device that shows relationships among people and divides the organization’s work; it shows who is accountable for the completion of specific work and who reports to whom. organizing 15 Required management skills Technical skills: skills that involve the ability to perform tasks in a 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 relationships among its various parts. 16 How required management skills relate to management levels: 17 stakeholders Stakeholders include customers, employees, suppliers, dealers, environmental groups, and the surrounding communities. The consensus seems to be that smaller organizations are more responsive than larger organizations. Therefore, many large firms are being restructured into smaller, more customer-focused units. 18 leading In business literature there is a trend toward separating the notion of management from that of leadership. One person might be a good manager but not a good leader. Another might be a good leader without being a good manager. Generally, if someone is given responsibility to lead, they also have a responsibility to manage. 19 Successful leadership 20 Leaders must: Communicate a vision and rally others around that vision. Establish corporate values. Promote corporate ethics. Embrace transformational change. Stress accountability and responsibility. Leadership Styles Autocratic style: involves making managerial decisions without consulting others. Participative (democratic) style: consists of managers and employees working together to make decisions. Free-rein (laissez-faire) style: involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives. [Catch Figure 8.8] controlling Controlling consists of five steps: 1. Establishing clear performance standards. 2. Monitoring and recording actual performance 3. Comparing results against plans and standards. 4. Communicating results and deviations to the employees involved. 5. Taking corrective action when needed and providing positive feedback. 23 When setting standards for controlling the standards must be: Specific Attainable Measurable Customer satisfaction must be measured for both internal and external customers. controlling 24