* * Chapter Seven Management and Leadership Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

* * Four Functions of Management Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. WHAT IS MANAGEMENT? LG2 7-2

* * Managers’ Roles Are Evolving Younger and more progressive.  Growing numbers of women.  Fewer from elite universities. Emphasis is on teams and team building. Managers need to be skilled communicators and team players. TODAY’S MANAGERS LG1 7-3

* * Four Functions of Management 1. Planning 2. Organizing 3. Leading 4. Controlling FOUR FUNCTIONS of MANAGEMENT LG2 7-4

* * Four Functions of Management 1. Planning: Anticipating trends & determining the best strategies & tactics to achieve organizational goals and objectives. 2. Organizing: Designing structure of organizations and creating conditions & systems, in which everyone & everything works together to achieve organization’s goals and objectives. 3. Leading: Creating a vision for organization and communicating, guiding, training, coaching & motivating others to achieve goals & objectives in a timely manner. 4. Controlling: Establishing clear standards to determine whether or not an organization is progressing towards its goals & objectives, rewarding people for doing a good job and taking corrective action if they are not. FOUR FUNCTIONS of MANAGEMENT LG2 7-5

* * Planning & Decision Making Vision -- More than a goal, it’s a broad explanation of why the organization exists and where it’s trying to go. SHARING the VISION LG3 7-6

* * Planning & Decision Making Mission Statement -- Outlines the organization’s fundamental purposes. It includes:  The organization’s self–concept.  Its philosophy.  Long–term survival needs.  Customer needs.  Social responsibility.  Nature of the product or service. DEFINING THE MISSION LG3 7-7

* * Planning & Decision Making Goals -- The broad, long-term accomplishments an organization wishes to attain. Objectives -- Specific, short- term statements detailing how to achieve the organization’s goals. SETTING GOALS and OBJECTIVES LG3 7-8

BRAC Our Vision A world free from all forms of exploitation and discrimination where everyone has the opportunity to realise their potential. Our Mission Our mission is to empower people and communities in situations of poverty, illiteracy, disease and social injustice. Our interventions aim to achieve large scale, positive changes through economic and social programmes that enable men and women to realise their potential. Our Values Innovation Integrity Inclusiveness Effectiveness

MISSION The mission of BRAC University is to foster the national development process through the creation of a centre of excellence in higher education that is responsive to society's needs, and able to develop creative leaders and actively contributes to learning and creation of knowledge. - See more at: YZA.dpuf

Growing sales revenue in North America can be considered a goal. Expanding your distribution network is an objective used to reach the goal of raising company revenue. Examples of Goals and Objectives Goals ‘“ I want to be a better cricket player. I want to learn more about Chinese history. I want to maximize my professional performance. Objectives ‘“ I want to memorize the periodic table before my next quiz. I want to increase my sales by 10% this month. I want learn to play ‘Freebird’ on the guitar.

* * Planning & Decision Making What is the situation now? SWOT Analysis -- Analyzes the organization’s Strengths, Weaknesses, Opportunities and Threats. PLANNING ANSWERS FUNDAMENTAL QUESTIONS LG3 7-12

* * Planning & Decision Making LG3 SWOT MATRIX 7-13

"Performing a SWOT analysis is a great way to improve business operations and decision-making," said Andrew Schrage, founder and CEO of Money Crashers. "It allowed me to identify the key areas where my organization was performing at a high level, as well as areas that needed work. Some small business owners make the mistake of thinking about these sorts of things informally, but by taking the time to put together a formalized SWOT analysis, you can come up with ways to better capitalize on your company's strengths and improve or eliminate weaknesses.”

How can we get to our goal after SWOT?  Strategic planning  Tactical planning  Operational planning  Contingency planning

* * Planning & Decision Making 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. Tactical Planning -- The process of developing detailed, short-term statements about what is to be done, who is to do it and how. STRATEGIC and TACTICAL PLANNING LG3 7-18

* * Planning & Decision Making Operational Planning -- The process of setting work standards and schedules necessary to implement the company’s tactical objectives. OPERATIONAL and CONTINGENCY PLANNING LG3 Contingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don’t work out. 7-19

* * Planning & Decision Making LG3 PLANNING FUNCTIONS 7-20

7–22 Kinds of Organizational Goals for a Regional Fast-Food Chain 7.2

* * Decision Making: Finding the Best Alternative Decision Making -- Choosing among two or more alternatives. DECISION MAKING LG3 7-23

* * Decision Making: Finding the Best Alternative 1. Define the situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Develop agreement among those involved. 5. Decide which alternative is best. 6. Do what is indicated. 7. Determine whether the decision was a good one and follow up. RATIONAL DECISION-MAKING MODEL LG3 7-24

* * Decision Making: Finding the Best Alternative 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 -- Listing all the pluses for a solution in one column, all the minuses in another and the implications in a third. PROBLEM SOLVING LG3 7-25

* * Progress Assessment What’s the difference between goals and objectives? What does a company analyze when it does a SWOT analysis? What are the differences between strategic, tactical and operational planning? What are the seven Ds in decision making? PROGRESS ASSESSMENT 7-26

* * Organizing: Creating a Unified System Organization Chart -- A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom. ORGANIZATIONAL CHARTS LG4 7-27

* * Organizing: Creating a Unified System LG4 LEVELS of MANAGEMENT 7-28

* * Organizing: Creating a Unified System Top Management -- The highest level, consists of the president and other key company executives who develop strategic plans. Middle Management -- Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling. Supervisory Management -- Those directly responsible for supervising workers and evaluating daily performance. MANAGEMENT LEVELS LG4 7-29

* * Organizing: Creating a Unified System Chief Executive Officer (CEO)  Introduces change into an organization. Chief Operating Officer (COO)  Implements CEO’s changes. Chief Financial Officer (CFO)  Obtains funds, plans budgets, collects funds, etc. Chief Information Officer (CIO)  Gets the right information to the right people so decisions can be made. TOP MANAGEMENT LG4 7-30

* * Technical Skills -- The ability to perform tasks in a specific discipline or department. MANAGERIAL SKILLS Tasks and Skills at Different Levels of Management LG4 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. 7-31

* * Tasks and Skills at Different Levels of Management LG4 SKILLS NEEDED at VARIOUS LEVELS of MANAGEMENT 7-32

* * Staffing: Getting and Keeping the Right People 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. STAFFING LG4 7-33

* * Leading: Providing Continuous Vision and Values. Leaders must:  Communicate a vision and rally others around that vision.  Establish corporate values.  Promote corporate ethics.  Embrace change.  Stress accountability and responsibility LEADERSHIP LG5 7-34

* * Leading: Providing Continuous Vision and Values. Transparency -- The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders. ACCOUNTABILITY through TRANSPARENCY LG5 7-35

* * As a first-line manager, you have new information that your department head hasn’t seen yet. The findings of the report indicate your manager’s plans should fail. If they do fail, you could be promoted. Will you give your department head the report? What is the ethical thing to do? What might be the consequences? To SHARE or NOT to SHARE (Making Ethical Decisions) 7-36

* * Leadership Styles Autocratic Leadership -- Making managerial decisions without consulting others. Participative or Democratic Leadership -- Managers and employees work together to make decisions. Free-Rein Leadership -- Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives. LEADERSHIP STYLES LG5 7-37

* * Empowering Workers Progressive leaders give employees the authority to make decisions on their own without consulting a manager. Customer needs are handled quickly. Manager’s role becomes less of a boss and more of a coach. Enabling -- Giving workers the education and tools they need to make decisions. EMPOWERMENT LG5 7-38

* * Source: BusinessWeek, Manage output instead of hours. Train workers to be ready for a more complex corporate structure. Allow lower-level managers to make decisions. Use new technology to foster teamwork. Shift hiring emphasis to collaboration. WORK SMARTER How to Ease Pressure on Workers Empowering Workers LG5 7-39

* * Managing Knowledge Knowledge Management -- Finding the right information, keeping the information in a readily accessible place and making the information known to every one in the firm. MANAGING KNOWLEDGE LG5 7-40

* * Controlling: Making Sure it Works FIVE STEPS of CONTROLLING LG6 7-41

That’s all for today!