Chapter 1 Leadership and Management

People trump Organizations Younger workers in particular are more loyal to people than to anything the organization offers.

Technology is making competition one click away Organizations face a dynamic environment Pressures from: ◦ Changes in customer tastes ◦ Upstarts ◦ Government regulation These make competition fierce and adaptability increasingly important

Managing versus Leading Management Defined Management is defined as the process of working with and through individuals and groups and other resources (such as equipment, capital, and technology) to accomplish organizational goals. Leadership Defined Leadership occurs whenever one person attempts to influence the behavior of an individual or group, regardless of the reason. It may be for one’s own goals or for the goals of others, and these goals may or may not be congruent with organizational goals.

Importance of Leading Page 4 – Read Bennis’s description of the difference between a manager and a leader… After reading this, which is more important for human resources? Managing or leading?

The Three Competencies of Leadership Leading or influencing requires three general skills, or competencies: 1.Diagnosing – understanding the situation you are trying to influence; 2.Adapting – altering your behavior and the other resources you have available to meet the contingencies of the situation; and 3.Communicating – interacting with others in a way that people can easily understand and accept.

Management Processes Four functions are central to any discussion of management: 1.Planning involves setting goals and objectives for the organization and developing “work maps” showing how these goals and objectives are to be accomplished. Once plans have been made, organizing becomes meaningful. 2.Organizing involves bringing together resources – people, capital, and equipment – in the most effective way to accomplish the goals. Organizing involves the integration of resources. 3.Motivating plays a significant role in determining the level of performance of employees, which, in turn, influences how effectively the organizational goals will be met. 4.Controlling involves feedback of results and follow-up to both compare accomplishments with plans and to make appropriate adjustments where outcomes have deviated from expectations.

Skills of Managers There are three areas of skill necessary for carrying out the management processes. 1.Technical Skills – Doing your job: the ability to use the knowledge, methods, techniques, and equipment necessary for performance of specific tasks acquired from experience, education, and training. Technical skill is most important at the lower, supervisory levels of management. Managers at these levels are often called upon to train and develop individual contributors with technical/functional expertise. As a manager moves up the corporate ladder, the importance of technical skill declines. 2.Human Skills – Relating to people: the ability and judgment used in working with and through people includes an understanding of motivation and demonstration of effective leadership. Unlike technical skills, these skills are used between people, which requires communicating with them, listening to them, understanding their perspectives, and, when appropriate, involving them in decisions. Human skills are the common denominator that seems to be crucial at all managerial levels. These skills are of overriding importance. 3.Conceptual Skills – Seeing the whole: navigating the wider world of ideas, patterns, and trends. They enable you to understand the direction and complexities of the overall organization, the competitive or social context in which it operates, and how they fit together as well as where your own operation fits in.. This knowledge permits you to act according to the objectives of the total organization rather than only on the basis of the goals and needs of one’s own immediate group. Conceptual skill becomes increasingly important at higher levels of management.

Management Skills Technical Conceptual Executive Managerial Supervisory Nonsupervisor y Management Level Skills Needed Human

Ingredients for Effective Human Skills Managers need two levels of expertise in their human skills: 1.Understanding Behavior: Managers need to understand why people behave as they do so they can better predict how their people are likely to behave in response to their attempts to influence. 2.Influencing Behavior: When you accept the role of leader, you accept along with it the responsibility of having an impact on the behavior of other people. Your leadership behaviors influence the behavior of others working toward the achievement of desired results.

People are a Source of Competitive Advantage Competitive Advantage – Something that provides an organization with a sustainable “leg up” over its competitors This advantage can be in terms of access to: ◦ Physical resources (i.e. British Petroleum having access to more offshore oil leases) ◦ Less tangible resources (i.e. Wal Mart’s distribution network or relationships with suppliers) ◦ People (i.e. Apple’s superior programmers)

21 st Century Competitive Advantage As we enter the 21 st century and move away from manufacturing, people as a source of advantage are becoming increasingly important. Leading Human Resources is an essential skill for managers.