Management functions: Planning, Organizing, Leading

• Managers guide organizations by using resources to achieve goals, assigning tasks, and optimizing performance.

Definition of Management

• Management is a body of knowledge.
• Management can refer to individuals who direct organizations.
• Management is the process of achieving goals using people and resources.

Management vs. Entrepreneurship

• Management emphasizes efficiency and operations within established systems with lower risk.
• Entrepreneurship focuses on innovation and opportunities, creating new ventures with higher risk and uncertainty.

The 4 Management Functions

• Planning involves setting goals and outlining how/when tasks should be done, similar to a battle plan.
• Organizing involves structuring teams and tasks to implement plans.
• Influencing (Leading) involves motivating and guiding people.
• Controlling involves measuring performance and making adjustments.
• These functions apply to all types of organizations.

Leadership

• Leadership exists only with followership.
• Leadership research is too US-focused.
• Leadership is more about followers’ perceptions than leaders' traits.
• Great leaders share traits like strong oration.

Important Skills for Managers

• Human Skills involve working with people.
• Technical Skills involve job-specific expertise.
• Conceptual Skills involve seeing the big picture.
• Managers' activities are task-related (handling operations), people-related (managing teams), and change-related (adapting to new challenges).

Career Stages

• Exploration involves deciding on career direction.
• Establishment involves entering the workforce.
• Maintenance involves climbing the career ladder.
• Decline involves retirement.

Gender in Management

• Social expectations affect career growth.
• Women face stereotypes in leadership roles.

Ethics & Social Responsibility in Business

• Ethics are beliefs about right and wrong shaped by society.
• Businesses must balance profit with social responsibility.
• Key responsibilities include safe products, safe working conditions, and environmental sustainability.

Examples of Ethical Failures

• Environmental Disasters include mass fish deaths and mining pollution.
• Workplace Safety Violations involve worker treatment.
• Human Rights Violations include child labor and forced labor.
• Corporate Negligence includes nuclear safety whistleblowing.

Challenges for Ethical Business

• Social Audit Challenge involves companies being transparent about their social impact.
• Philanthropy Challenge involves donations that help society and brand image.
• Sustainability Challenge involves ethical companies minimizing waste and protecting resources.

Why Ethics Matter for Business

• Ethics lead to more profit as consumers prefer ethical brands.
• Higher employee productivity occurs in ethical workplaces.
• Ethics encourages innovation.

What is Diversity?

• Diversity constitutes characteristics that shape identities and experiences in society.
• Diversity includes race, gender, social class, age, disability, culture, and more.

Intersectionality in Management

• Intersectionality analyzes how multiple identities compound discrimination.
• Intersectionality was coined to explain how laws failed Black women.
• Power dynamics exist in workplaces.
• Majority groups hold decision-making power and resources.
• Minority groups often face disadvantages, even if they’re a numerical majority.

Challenges for Managers & Leaders

• There are different values and expectations from Gen Z, Millennials, Gen X, Baby Boomers, and the Silent Generation.
• Each generation impacts workplace culture differently.

Promoting & Managing Diversity

• Diverse workplaces include gender, race, age, disabilities, and socio-economic backgrounds.
• Managers must create inclusive environments where all employees can thrive.

4 Functions of Management & Diversity

• Planning involves setting diversity goals and implementing diversity training programs.
• Organizing involves creating diversity committees and ensuring fair work assignments.
• Influencing involves encouraging employees and supporting career development of minorities.
• Controlling involves monitoring progress toward diversity goals.

Diversity Training Stages

• Unconscious Incompetence indicates unawareness of biases.
• Conscious Incompetence involves recognizing problematic behaviors.
• Consciously Competent involves actively practicing inclusivity.
• Unconscious Competence makes diversity second nature.

Case Study: Barilla & Diversity

• A CEO made homophobic remarks, leading to a global backlash and boycott.
• Barilla rebranded itself as LGBTQ+ inclusive, invested in diversity, and won an advertising award.
• Companies must embrace diversity to maintain public trust and market success.

Case Study: Dolce & Gabbana in China

• Racist ads stereotyping Chinese women caused a massive backlash, risking $500M in profits.
• Brands must understand cultural diversity to avoid damaging their reputation and profits.

Affirmative Action vs. Diversity Initiatives

• Affirmative Action is legally mandated policies to address historical discrimination.

Camillo Olivetti

• Born in 1868 in Ivrea, Italy, into an upper-middle-class Jewish family.
• Studied at the Polytechnic University of Torino, later attending classes at Stanford University.
• Founded Italy’s first typewriter company in 1896.
• He Advocated for worker welfare, offering better salaries, shorter workdays, and extensive social programs.

Adriano Olivetti

• Inherited the family business in the 1940s, growing it to 45,000 employees by 1960.
• Expanded the product line to include typewriters, calculators, teleprinters, and office furniture, with operations worldwide.
• Acquired Underwood, a major U.S. typewriter manufacturer.

Individuals at the Center of the Factory

• A human-centered approach to business prioritized employees' well-being over profit.
• Progressive workplace policies included free housing and scholarships for workers' families, on-site education programs, and 10-month maternity leave.
• Workers could return to small farms in July.

Olivetti’s Social and Urban Vision

• Ivrea was transformed into a company-town centered on social and architectural innovation.
• The Institute for Urban and Local Renewal was established in 1954 to foster entrepreneurship and revitalize depressed areas.

Pioneering Innovation

• Developed Elea, the first all-transistorized mainframe computer, rivaling IBM in 1959.
• Created the world’s first desktop computer.
• The Electronic Division was sold to General Electric after Adriano’s death.

Beyond Business: A Cultural and Ethical Model

• Olivetti’s model was a vision for a more humane, socially responsible business world.
• His philosophy contrasts with modern corporate structures that prioritize profits over people.

Success in Organizations

• There needs to be clear, well-defined goals aligned with the organization's vision for success.
• Detailed planning helps allocate resources, manage risks, and adapt to changes.

Types of Organizational Plans

• Single-Use Plans are for one-time projects or specific events.
• Standing Plans guide regular operations, such as policies, procedures, and rules.

Planning Tools

• Forecasting predicts future trends to inform organizational decisions.
• Sales Forecasting predicts future sales using qualitative and quantitative methods.

Futuristic Planning

• Planning is future-oriented, focusing on actions and decisions needed for future success.
• Managers should anticipate challenges and think beyond daily tasks.

Scenario Analysis

• Scenario analysis prepares organizations for uncertain futures by exploring multiple possible outcomes.
• It’s useful when dealing with high uncertainty.

Key Methods in Sales Forecasting

• The Qualitative Method uses expert opinions and judgments like sales force estimation.
• Quantitative Methods use historical data to predict future sales.

Strategic Planning

• Strategic Planning is a long-term process to set goals, define priorities, and allocate resources.
• It ensures sustainable growth and success for the organization.

Definition of a Strategy

• Strategy is a broad, high-level plan that guides decision-making to achieve long-term objectives, maintain a competitive advantage, and optimize resources.

Types of Organizational Strategies

• Marketing involves positioning the organization and building brand awareness.
• Finance involves managing budgets and financial sustainability.
• Production involves improving efficiency and operational effectiveness.
• R&D involves innovation and product/service improvement.
• Public Relations involves managing reputation and relationships with stakeholders.

Importance of Strategic Planning

• It leads to informed decisions, aligning teams, adapting to changes, and remaining competitive in dynamic environments.

Strategic Management Process

• Environmental Analysis.
• Establishing Organizational Direction.
• Strategy Formulation.
• Strategy Implementation.
• Strategic Control.

Environmental Analysis

• Internal and external factors are studied to guide strategic decisions.
• This ensures adaptability and alignment with changing conditions.

Establishing Organizational Direction

• The mission and purpose are defined through a mission statement that guides decisions and ensures team alignment.

Strategy Formulation

• This Involves choosing the best actions to achieve goals.
• Critical Question Analysis.
• SWOT Analysis.
• Business Portfolio Analysis.

SWOT Analysis

• Strengths (S) are internal advantages.
• Weaknesses (W) are internal challenges.
• Opportunities (O) are external growth opportunities.
• Threats (T) are external risks.
• It helps in making informed decisions and managing risks.

Strategic Formulation Strategies

• Differentiation involves developing unique products or services.
• Cost Leadership involves reducing production costs to offer competitive prices.
• Focus Strategy involves targeting a specific market segment.

Strategic & Tactical Plans

• Strategic Plans are long-term, broad goals set by upper management.
• Tactical Plans are short-term, specific actions to implement strategic goals, created by lower-level managers.

ORGANIZING

• Organizing is the primary mechanism that managers use to implement and activate plans effectively.
• Roles & Responsibilities should be defined of individual employees within the organization.
• Coordination should ensure efforts are aligned and integrated to achieve organizational objectives.

IMPORTANCE OF ORGANIZING IN MANAGEMENT & LEADERSHIP

• Organizing helps employees understand their tasks, reducing confusion and boosting productivity.
• Organizing helps leaders allocate resources (time, talent, capital) effectively.
• Company goals are aligned with individual efforts to foster teamwork and synergy with Organizing .
• A well-organized structure responds efficiently to changes and innovation
• Clear roles and workflows enable progress tracking and continuous improvement.

THE FIVE STEPS OF THE ORGANIZATIONAL PROCESS

• Ensure organizing efforts support overall strategic goals.
• Identify core activities needed to achieve goals.
• Break tasks into manageable subtasks for clarity and efficiency.
• Assign personnel, time, and materials; offer clear guidance.
• Continuously evaluate and refine organizing strategies.

ORGANIZATIONAL PROCESS IN SPORT

• Start with clear strategic objectives for sport clubs.
• Identify key tasks (e.g., athlete contracts, game scheduling).
• Divide tasks into smaller subtasks (e.g., scheduling games, hiring staff).
• Determine who handles each task (e.g., scheduling or overseeing operations).
• Collect feedback and adjust strategies if necessary.

DIVISION OF LABOR

• Tasks are divided among multiple members, rather than one individual completing all aspects.
• Examples include organizing an art exhibition requiring curators, guides, and security staff.
• Specialization enhances efficiency.
• Over-specialization can lead to boredom and dissatisfaction.

ÉMILE DURKHEIM & THE CONCEPT OF ANOMIE

• The division of labor in modern societies can lead to a breakdown of social norms, leading to alienation and disconnection.

ORGANIZATIONAL STRUCTURE: FORMAL & INFORMAL

• Formal Structure defines roles, responsibilities, and authority (often visualized with organizational charts).
• Informal Structure emerges from social relationships, individual norms, and shared values, affecting collaboration and communication.

TWO DIMENSIONS OF FORMAL STRUCTURE

• Vertical Structure authority flows top-down.
• Horizontal Structure focuses on lateral divisions with minimal hierarchy.

MATRIX MANAGEMENT

• Employees report to both a functional manager and a project manager.
• Matrix management fosters cross-functional collaboration and improves resource utilization. It can be complex due to dual reporting lines.

Management involves using resources to achieve goals, assigning tasks, and optimizing performance. It includes planning, organizing, influencing/leading, and controlling. These management functions apply to all types of organizations.