Management and Leadership Principles

Management and Leadership

• This chapter covers management and leadership principles.
• There are learning goals related to management, planning, leadership, organizing and controlling.

Learning Goals

• Describe changes in management today.
• Describe the four functions of management.
• Relate planning and decision-making to company goals.
• Describe the organizing function of management.
• Explain the differences between leaders and managers, and describe leadership styles.
• Summarize the steps in the control function of management.

What Is Management?

• Management is a process to accomplish organizational goals through planning, organizing, leading, and controlling people and resources.

Today's Managers

• 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.

Four Functions of Management

• Planning
• Organizing
• Leading
• Controlling

Function of Management

• Planning - Defining goals, strategies, and developing plans to integrate and coordinate activities.
• Organizing - Arranging and structuring work to accomplish organizational goals.
• Leading - Working with and through people to accomplish goals.
• Controlling - Monitoring, comparing, and correcting work.

Planning Answers Fundamental Questions

• What is the situation now?
  • SWOT Analysis - Analyzes strengths, weaknesses, opportunities, and threats.
• How can we get to our goal from here?
  • Strategic planning
  • Tactical planning
  • Operational planning
  • Contingency planning

Forms of Planning

• Strategic Planning - Setting broad, long-range goals by top managers.
• Tactical Planning - Identifying specific, short-range objectives by lower-level managers.
• Contingency Planning - Backup plans in case primary plans fail.
• Operational Planning - Setting work standards and schedules.

Strategic and Tactical Planning

• Strategic Planning: Top management determines major organizational goals and needed policies, procedures, strategies and resources.
• Tactical Planning: Process of developing detailed, short-term statements about what's to be done, who will do it, and how.

Operational and Contingency Planning

• Operational Planning: Process of setting work standards and schedules needed to implement tactical objectives.
• Contingency Planning: Process of creating alternative courses of action in case primary plans don't work.

Decision Making

• Decision Making - Choosing among two or more alternatives.

Rational Decision-Making Model

• Define the situation.
• Describe and collect needed information.
• Develop alternatives.
• Develop agreement among those involved.
• Decide which alternative is best.
• Do what is indicated.
• Determine if the decision was good and follow up.

Problem Solving

• Problem Solving - Process of solving everyday problems, less formal than decision-making, and requiring quick action.
• Problem-solving techniques include brainstorming and PMI (Plus, Minus, Implications).

Organizational Charts

• Organizational Chart - Visual device showing relationships among people, and divides work, showing who reports to whom.

Four Ways to Structure an Organization

• Line Organizations
• Line-and-Staff Organizations
• Matrix-Style Organizations
• Cross-Functional Self-Managed Teams

Line Organizations

• Has direct two-way lines of responsibility, authority, and communication from top to bottom.
• Everyone reports to one supervisor.
• No specialists (legal, accounting, HR, IT).
• Line managers issue orders, enforce discipline, and adjust to changes.

Line Personnel

• Workers responsible for directly achieving organizational goals (production, distribution, marketing).
• Have authority to make policy decisions.

Staff Personnel

• Advise and assist line personnel in meeting goals.
• Include marketing research, legal advising, IT, and HR.

Types of Organizational Structures

• Matrix Organization: Specialists from different parts work temporarily on projects, remaining part of a line-and-staff structure.
  • Focus on product development, creativity, special projects, communication, and teamwork.
• Tall Organizational Structures: Organization chart is tall due to many levels of management.
• Flat Organizational Structures: Few management layers and a broad span of control.

Levels of Management

• Top Management: Highest level, including president and other key executives, develop strategic plans.
• Middle Management: General, division, and branch managers, responsible for tactical planning and control.
• Supervisory Management: Directly responsible for supervising workers and evaluating daily performance.

Managerial Skills

• Technical Skills: Ability to perform tasks in a specific discipline or department.
• Human Relations Skills: Skills in communication and motivating, enabling managers to work with people.
• Conceptual Skills: Ability to picture the organization as a whole and understand relationships among parts.

Skills Needed at Various Levels

• Skills needed for top, middle, and first-line managers are described in a chart.

Staffing

• Staffing - Recruiting, hiring, motivating, and retaining the best people to accomplish objectives.
• Critical to recruit good employees.
• Many unwilling to work for companies unless properly treated and compensated fairly.

Leadership

• Leaders must communicate a vision and rally others around it.
• Leaders must establish and promote corporate values and ethics.
• Leaders must grasp change.
• Leaders must stress accountability and responsibility.

Accountability through Transparency

• Transparency - Presenting company facts and figures clearly and openly to all stakeholders.

Leadership Styles

• Autocratic: Managers make decisions without consulting others.
• Participative/Democratic: Managers and employees work together to make decisions.
• Free-Rein: Managers set objectives, employees have freedom in how to accomplish them.

Empowerment

• Progressive leaders give employees authority to make decisions.
• Customer needs are handled quickly.
• Manager's role becomes more of a coach than a boss.
• Enabling - Providing workers with education and tools needed to make decisions.

Work Smarter

• Manage output instead of hours.
• Train workers for complex corporate structures.
• Allow lower-level managers to make decisions.
• Use technology to foster teamwork.
• Shift hiring emphasis to collaboration.

Managing Knowledge

• Knowledge Management - Finding, keeping, and making information readily accessible and known to all in the firm.
• Keeps people from reinventing the wheel.

Five Steps of Controlling

• Establish clear standards
• Monitor and record performance
• Compare results against standards
• Communicate results to correct work if needed

Are you a Micromanager?

• Questions to help assess management style.

This quiz explores the foundational principles of management and leadership. It delves into the four functions of management, the evolution of managerial roles, and the distinct characteristics of leaders versus managers. Discover the vital skills needed for today's dynamic organizational environments.