3 LeadersDifference between managers and leaders is that managers produce order and stability while leaders embrace and manage change.Leaders create vision for others to follow; managers carry out the vision.
4 Managers vs Leaders MANAGERS Do things right Command and control Seek stability and predictabilityAre internally focusedWork within the firmAre locally orientedThink mostly of workersLEADERSDo the right thingInspire and empowerSeek flexibility and changeAre externally orientedCoordinate the whole systemAre globally orientedThink mostly of customers and other stakeholders
5 Leadership StylesAutocratic Leadership – involves making managerial decisions, based on information available to the manager, without consulting others; it implies power over others.Consists of issuing orders, telling employees what to doMotivation comes from threats, punishment, and intimidationEffective in emergencies and when absolute followership is needed (ie. army manoeuvres)Suits employees who do not want to make decisions
6 Leadership StylesDemocratic (participative) leadership – style that involves managers and employees working together to make decisionsCan lead to frustration if the manager’s decisions are not consistent with the inputAnnoys those who do not wish to have inputEmployee participation in decisions may not always increase effectiveness but usually increases job satisfactionTraits such as flexibility, good listening skills, empathy
7 Leadership StylesLaissez-faire (free-rein) leadership – style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish these objectivesManagers simply advise subordinatesEmployees have the authority to make the final decisions themselvesTraits include: warmth, friendliness, understanding
9 5 Steps Establishing clear and specific performance standards Monitoring and recording actual performance (results)Comparing results against plans and standardsCommunicating results and deviations to the employees involvedTaking corrective action when needed
10 Controlling Ongoing throughout the year Weakest link tends to be the setting of standardsStandards must be specific, attainable, and measurableie. want to improve distance when running vs want to go from 2km to 4km within 3 months
12 Effective ManagersEffective modern managers have three things in common:they are action-orientedthey manage change efficientlythey are able to build a sense of shared values that will motivate and generate loyalty
13 Managerial SkillsConceptual skills – ability to understand the relationships among the various tasks of a firmSee how the pieces fit togetherUsed by top-level and middle-level managersManagers with good conceptual skills tend to be creative and are willing to consider various methods of achieving goals
14 Managerial SkillsInterpersonal Skills – skills necessary to communicate with customers and employeesCommunication with Customers – ensure satisfaction, listen to complaints, bring complaints to attention of top managerCommunication with Employees – clearly communicate assignments, mistakes, listen to complaints
15 Managerial SkillsTechnical Skills – skills used to perform specific day-to-day tasksUnderstand the types of tasks that they manageImportant for all managers who evaluate new product ideas
16 Managerial SkillsDecision-Making Skills – skills for using existing information to determine how the firm’s resources should be allocatedSteps for decision makingIdentify the possible decisions.Gather information on all possible decisions.Estimate costs and benefits of each possible decision.Make a decision and implement it.Periodically evaluate the previous decision to determine whether it should be changed.
17 Managerial SkillsHuman Relations Skills – skills in understanding and getting along with peoplemanagers with poor human relations skills may have trouble getting along with subordinates causing employees to quit or transferImportant in all levels of management
18 Areas of ManagementMarketing Managers - responsible for developing, pricing, promoting, and distributing goods and services to buyers.Financial Managers - responsible for planning and overseeing the financial resources of a firm.Operations Managers - responsible for controlling production, inventory, and quality of a firm's products.
19 Areas of ManagementHuman Resource Managers - responsible for hiring, training, evaluating and compensating employees.Information Managers - responsible for the design and implementation of systems to gather, process, and disseminate information.Other Managers - more specialized managers (e.g. Research and Development) may be created to meet the particular needs of a firm.