Business Management and Accountability PDF

6 Business Management and Accountability  Leading and Delegating for Success Business insight... “It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” — Steve Jobs (1955-2011), industrial designer, an...

6 Business Management and Accountability  Leading and Delegating for Success Business insight... “It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” — Steve Jobs (1955-2011), industrial designer, and co-founder of Apple Inc. management, noun “The activity of running and controllinga business or similar organization.” — The Oxford English Dictionary (OED).  anagement is doing things right; leadership M is doing the right things, according to Key Terms management guru Peter E. Drucker. Not all leaders and managers are great, and not all Leadership Management great leaders and managers are the same. Autocratic leaders Great managers are able to judge what is right and then Laissez-faire leaders carry it out at the right time. They earn the respect of those Democratic leaders working with them by setting a good example and showing Transformational leaders Management roles the way forward. Both practical knowledge and technical SMART goals skill are involved, but essentially management is a people Planning skill — knowing how to motivate people. Organizing Motivating This chapter provides an overview of business management Controlling and the skills and attributes of a good manager. Like other Fairtrade Canada aspects of a business, with commitment, time and practice, Inclusion, equity and social management skills can be learned and perfected. justice Glass ceiling Genderequity Chapter Learning Goals Affirmative action By the time you complete this chapter, you should be able to: Cross-cultural awareness Cloud business model Explain the critical importance of leadership and Management teams management in business today; Management accountability Describe the main managerial leadership styles; Delegating work Analytical skills Describe the different tasks that managers perform in a business context; Explain the role of management teams and the different types of teams within a business; Understand the importance of managers fostering workplace inclusion, equity and social justice; and Understand the importance of ensuring that managerial accountability exists throughout a business enterprise. First, ask yourself... What is your own leadership style? Do you think your style of leadership might differ dramatically depending on the type of business you owned?  6.1 Business Leadership Leadership is necessary in every business environment. Whether "... Black excellence in tech and business exists and, as a leader, you own a business, manage a business, or are an employee making it is part of my responsibility to your way up the corporate ladder, demonstrating leadership abilities showcase that to the world.” is one key to reaching your business and personal goals. — Tamar Huggins, Executive Director and founder of Tech Spark The Characteristics of Good Leaders Canada. Leadership might seem to come “naturally” for some people, but for most it is acquired characteristic. In other words, the ability to lead, whether in business or elsewhere, is something that can be learned. Like most things, it just takes a lot of practice. Listed below are five business skills that every great leader should, ideally, possess. There are many more dimensions to leadership, of course, but these five are a good starting point. People-Oriented. A leader’s ability to connect with others creates trust, which benefits everyone. Purposefulness. Leaders inspire others in an organization to pursue the corporate vision. Collaboration. Creating an environment where everyone can contribute builds confidence and adds to a business’s bottom line.  Decisiveness. Good leaders understand that the consequences of being indecisive can be greater than occasionally making the wrong decision. Better a good decision in time than a perfect decision too late. Self-Awareness. Being aware of your own abilities and weaknesses, and not being afraid to admit them, is an essential trait of a great business leader. Strong leadership is a vital part of every successful business. A business with a skilled team and a leader at the top is well-positioned for success. Leadership Integrity Of all the characteristics of strong leaders, perhaps the most important is integrity. Integrity involves honesty and a commitment to doing the right thing, even if it is a difficult thing. Integrity at the top percolates throughout the organization. People look up to those who demonstrate integrity. Too many entrepreneurs take leadership skills for granted and fail to recognize the importance of hiring great leaders to direct their business affairs. Having great ideas and a strategic vision will not get you far if your employees will not follow you. Leaders and Managers There is overlap between leadership and management. Leadership is the process of inspiring, motivating, leading and directing employees with the purpose of achieving the goals and mandate of the organization. Managers have leadership qualities. They translate a leader’s vision into achievable objectives and organize and direct teams of people to achieve those objectives. The two positions work in unison to get things done. Management is the use of human capital, financial resources, and technology to better achieve greater efficiencies. Managers are ultimately responsible for directing and delivering the various functions in an organization. One example is an IT Manager at Shopify who supports a team of IT analysts as they manage the features and services on Shopify’s website. Another might be an Insurance Claims Manager who leads their team in timely processing of insurance claims related to home and car insurance. The two positions essentially perform the same role. Managers motivate, mentor, guide, develop and support employees in their tasks and responsibilities. They help others to work towards the success of the company. Today, management takes many forms due to rapid technological change and a globalized economy. Society, Challenge, and Change The business world changes rapidly, and so does the role of Inside Business management. The changes occurring in the business environment today pose immense challenges for business owners and managers Business Etiquette alike. But they present new opportunities for businesses as well. Business practices are not the same in different cultures and Not every decision a manager makes is straightforward. countries around the world, and Globalization and technology create a dynamic business one’s interactions with foreign environment for managers to navigate — and in which to flourish. clients and business partners Workplace norms are changing as Baby Boomers retire and GenZ must take this into account. enters the workforce. Social media, privacy concerns, remote work, Business etiquette refers to and flexible work environments have prompted managers to find those unique gestures, customs, new ways to improve productivity while addressing the concerns of a and behaviours that people new generation of employees. follow in professional situations. A wise businessperson will High on the list of new challenges are issues related to ethical research a country’s customs business practices. Scandals of various kinds at Facebook, Samsung, and practices before doing Google, Wells Fargo, Tesla, Uber, Amazon, and many other business there. Seemingly small companies have made it necessary for managers to understand and things, like how to accept a apply high ethical standards as they execute their roles. person’s business card or what to orderfor lunch, can make or Owners and managers who can adapt and meet such challenges head break a business relationship. on will succeed in this new world order. When conducting business in North America, for example, eye contact is important, whereas in other countries it may be considered rude. In many countries, it is essential to inquire about one’s health and family before talking about business matters. Just as there are different nations and cultures, so too there are many unique business customs and practices. As international business expands, a working knowledge about the other country’s business etiquette is not only good manners — it can be good for business, too. ♦  Leadership Styles The ability to lead depends, in large part, on the leaders themselves Success Story — their personalities, education and experience. Different leaders Red Cross Society have different approaches to leading others. There is not one “pure type” of leader, but leadership styles can be thought of as falling into four general categories. (1) Autocratic Leaders Autocratic leaders have a high degree of control over their departments and their employees. This is a centralized style in which duties and tasks are directed or dictated by the leadership. Little opportunity is provided for feedback without the possibility The Canadian Red Cross Society of suffering repercussions. There is a notable lack of employee is a non-profit organization that involvement in decision-making, and employees are asked to share is part of the world’s largest only a limited amount of their knowledge and expertise. humanitarian network, the International Red Cross and Red Given the changing dynamics of the workforce today, this autocratic Crescent Movement. style could lead to high turnover, resentment toward the employer, and a lack of engagement on the part of employees. This type The Canadian Red Cross Society receives funding from of leadership might work well in emergency situations or when both private donations and decisions need to be made quickly. This leadership style might be from Canadian government more useful if, for example, a manager at a fast-food restaurant departments. needs to issue orders to staff when a flood of customers arrives following a flash sale promoted on the company’s website. However, The Canadian Red Cross Society this autocratic leadership style is less likely to be effective in modern Act (1909) legally established workplaces where collaboration is often highly valued. the Red Cross as the corporate body in Canada responsible (2) Laissez-Faire Leaders for providing volunteer aid in Laissez-faire leaders operate in a manner that is the polar opposite accordance with the Geneva of the autocratic leader. With this managerial style, the manager Conventions. leaves employees free to complete assigned tasks and responsibilities The Red Cross network includes more or less as they choose. the International Committee of the Red Cross (ICRC), the Employees are empowered to make their own decisions. If asked, International Federation of Red this manager’s response to an employee’s query would be “Do what Cross and Red Crescent Societies you think is best.” For new employees, this response could create (Federation) and 192 National uncertainty and anxiety, as there would be little or no formal Red Cross and Red Crescent training, and employees would essentially be left to figure things out Societies. on their own. The international Red Cross For workers who have been doing the job for many years, this style network is dedicated to of leadership may encourage them to get comfortable and possibly improving the situation of the complacent in their duties. Over time, this could lead to employees most vulnerable throughout becoming unmotivated and showing a lack of initiative in taking on the world. ♦ new roles as a result of a lack of positive support, job reinforcement, and direction in their tasks. This leadership style, too, is less effective in the modern workplace because people do look to leaders to provide them with direction. (3) Democratic Leaders Democratic leaders seek to strike a balance between the two previously mentioned managerial styles. With this type of Section Review leadership, dialogue is encouraged. Managers acknowledge feedback 1. What is leadership in the from employees and use it, and they collaborate with employees context of a business? by encouraging active participation in how their duties and 2. List some of the main responsibilities will be accomplished. characteristics of great This type of manager supports the development of employee business leaders. skills, abilities, and education, and this enables employees to 3. What is an autocratic perform their tasks more efficiently and effectively. Managers also manager? Provide provide constructive criticism and positive feedback, which makes an example. employees feel appreciated and supported. Thus, productivity 4. Describe what a laissez-faire increases, benefiting the organization and the departmental goals. manager is and provide Some have criticized this leadership style as being too cumbersome, an example. but the democratic leadership style is considered one of the 5. How would you describe a most effective management styles. This style values maximum democratic manager? collaboration — everyone is given an opportunity to participate in decisions, ideas about what to do are exchanged freely, and discussion is encouraged within the business about what needs to be done and how to do it. This is not to say there is no leader. While there is equality within the group and the free flow of ideas, the leader is still in a position of authority. The leader is there to offer guidance and control of the group. (4) Transformational Leaders Transformational leaders have a unique leadership style. They inspire their employees to move beyond what they are currently doing to accomplish more for their departments and the company. Their influence produces a transcending effect throughout the organization. Transformational leaders inspire their followers to believe in what they are doing. They foster a sense of achievement and accomplishment within their organization and throughout their industry. Some of the common characteristics of inspirational leaders include such things as possessing a broad vision, encouraging participation in that vision, empowering others, fostering creativity and intellectual stimulation, and demonstrating personal integrity. Inspirational leaders are widely known in the world of politics — Mahatma Gandhi, Nelson Mandela, and Martin Luther King, Jr. It seems like every age also produces transformational leaders in the world of business. Some examples are Bharat Masrani, Elon Musk, Oprah Winfrey, Indra Nooyi, and Steve Jobs, to name but a few.  6.2 Management Roles Managers play many management roles — they wear many hats. They attend to various tasks throughout a busy day to support the operations of their teams and the business. Managers also manage the staffing of their department, including situations when an employee takes sick leave or attends a funeral, and they delegate and spread the workload as necessary to help achieve the team achieve its goals. Managers also play a critical role in communication with other Figure 6.1: Management’s “Ten department managers. Additional roles include training employees, Hats.” Managersplay evaluating and motivating their teams, determining performance many different roles within a bonuses and compensation levels, enforcing employment policy, business that are critical to and overseeing departmental tasks as well as those of individual business success. employees under their supervision. Management Roles Interpersonal Decisional Roles Informational Roles Roles Figurehead Entrepreneur Monitor Disturbance Leader Handler Disseminator Resource Liaison Allocator Spokesperson Negotiator  A Manager’s Ten Hats Various management scholars have assessed the many-sided responsibilities of managers. In his 1990 book Mintzberg on Management: Inside Our Strange World of Organizations, Canadian business and management author Henry Mintzberg divides managerial work into three categories: (1) interpersonal, (2) informational, and (3) decisional. Within these categories, Mintzberg argues that, at different times, managers play different roles, which he describes as wearing “ten hats.” Interpersonal Roles 1. Figurehead: A manager performs ceremonial duties — greeting visiting dignitaries, attending an employee’s wedding, taking an important customer to lunch. 2. Leader: A manager is responsible for the work of subordinates, motivating and encouraging employees, and exercising formal authority. 3. Liaison: A manager makes contacts outside the vertical chain of command, including peers in other companies or departments, government and trade organizations. Informational Roles 1. Monitor: A manager scans the environment for new information relevant to their business operations. 2. Disseminator: A manager passes on privileged information directly to subordinates and superiors. 3. Spokesperson: A manager shares information with people outside their organization — a speech to a lobby group or suggesting product modifications to suppliers. Decisional Roles 1. Entrepreneur: A manager seeks to improve the business unit by initiating projects or exploring new opportunities. 2. Disturbance Handler: A manager responds to pressures too severe to be ignored — a dispute with employees, a customer who is bankrupt, or a supplier reneging on a contract. 3. Resource Allocator: A manager decides who gets what within the organization. 4. Negotiator: A manager commits the organization’s internal resources in “real time” in accordance with the best information available at the time.  The Tasks of Management The day-to-day tasks of management fall into four categories: Inside Business 1. Planning Mergers & Acquisitions 2. Organizing A growth strategy often used by businesses is to merge with 3. Motivating anothercompany or simply to 4. Controlling buy the other company outright. Let us now look at these four areas in turn. Mergers and acquisitions have many advantages. They include: (1) Planning Greater expertise and more Planning is the process of developing short-term and long-term customer insights goals and setting out a roadmap to achieve them. It is a process Consolidated products similar to what you do when you set goals for your future once and services you finish high school. Your short-term goals could be the courses Scaled-up and efficient you have chosen for next year, and these lead into your long-term manufacturing process plans for after you graduate. Business planning is similar. As with Access to new markets and postsecondary education, establishing a business involves personal a better ability to serve and financial risk. Planning is therefore essential. existing ones When planning for revenue, companies develop a target and take the Greaterability to attract top necessary steps to reach it. For example, Rogers Communications talent in the industry may hope to increase the number of cellphone subscribers by Faster development and 10% each quarter (every three months). Or Spotify might set an launch of new technologies annual goal to increase the amount of revenue it receives from its Single product clients for its music services by 5%. Setting goals is the first step to distribution network achieving them. Greater purchasing power across all departments Developing a plan to achieve financial goals is the next step. In Substantially lower the examples of Rogers and Spotify, the goal is to expand their overhead costs customer base, which will increase their profits over the long term. Whether it is a merger or Whether it is business owners setting their targets, or a high school acquisition, the goal is the same. student setting postsecondary targets, meeting short-term results It is to create a new entity that is (e.g., choosing the right courses) affects their ability to achieve more efficient and effective than longer-term goals. the two companies operating on Business planning is not limited to financial matters. Managers theirown. ♦ must also make plans to provide instructions and directions to employees so that these employees can be successful and meet their responsibilities within the business. Planning also helps to reduce waste and duplication, and it can set an example for managers in other departments in the business. If done well, planning helps to reduce uncertainty and ensure that the business’s goals are achieved. There are many ways to think about planning that will help achieve real results. One widely used method that is called the “SMART method.” s SMART Goal-Setting. With smart goal-setting, Specific there is a sense of priority and urgency about getting things Clearly state your goal. done. SMART goals are: Specific. SMART goals are clear. They answer the 5 “W” questions. Who? What? Where? When? Why? M Measurable. SMART goals Measurable are measurable. How do I know if I have reached my Ensure you can measure success. goal? What are the indicators of progress? Attainable. SMART goals are achievable. Do I have the resources and capabilities? Is A the goal attainable? Attainable Relevant. SMART goals are relevant. Will the goal add value to the organization? Set goals you know you can achieve. Time-based. SMART goals have a start and finish date. Does the goal have a deadline? In business and R elsewhere, SMART goals Relevant go a long way to ensuring that targets are achieved. Set goals relevant to your life. T Time-Based Set a deadline for completion. (2) Organizing Organizing is another important managerial role. This involves defining roles and responsibilities, ensuring people are assigned to accomplish those responsibilities, and making sure that everything is completed on time and on budget. It also includes making sure other resources, like supplies, are available to the team. For example, a manager in the Loss-Prevention Department at Rogers Communications would have team members contact clients who have missed a payment. For this, the manager would need to assess the workload and undertake the following: Outline the tasks and responsibilities to various team members; Allocate resources to support the department; Coordinate with other departments; and, Create an atmosphere of cooperation and mutual support. (3) Motivating Motivating plays a crucial role in the business context because it is a key driver of employee performance and productivity. Motivation Section Review refers to the internal or external factors that energize, direct, and 1. What is business sustain an individual’s behaviour toward achieving a specific goal or management? objective. In a business setting, motivation impacts various aspects 2. What are some of the main of organizational performance, including employee engagement, job tasks and responsibilities of satisfaction, and overall organizational success. a business manager? Managers must motivate and encourage employees to accomplish 3. What are some challenges departmental and organizational goals. To do this, managers may that managers face in the develop teams within their departments or create teams with 21st century? members from other departments within the organization. 4. What is planning? Provide High levels of workplace stress can lead to conflict, and managers an example. also are responsible for managing the stress levels in their 5. What is organizing? Provide departments. This is done by communicating the expectations an example. that accompany the task at hand, providing time and resources 6. What is motivating? Provide to complete that task, and providing positive support to their an example. employees throughout the process. This might even take the form of 7. What is controlling? Provide incentives — bonuses, overtime pay, recognition of their work, and an example. other forms of compensation. Often, all that is needed is a kind word of support. (4) Controlling Finally, controlling is the process of monitoring the activities of your team to ensure they meet the requirements set out when planning and organizing. It involves recognizing weaknesses and making adjustments. Managers control their departments to make them as productive and efficient as possible in reaching the organization’s goals. When things go wrong, a manager helps the team identify and acknowledge the problem, analyze where things went wrong, and reset to move forward successfully. One way that managers control their departments is by setting daily goals. For example, Mondelez Canada (one of the largest snacking companies in Canada with major brands such as Chips Ahoy!, Oreo, and Peek Freans) set out a daily goal of no workplace accidents at its cookie factory. The objective was to reduce the costs related to employee injuries and those related to production breakdowns. Managers also control the physical and social environment in their departments to ensure that the necessary safety protocols and training programs are in place. Control means encouraging employees to take responsibility for their workspace and report such things as malfunctioning equipment or safety hazards. In this way, managers can be sure that the employees are fully engaged and take responsibility for their own productivity alongside the managers who are there to support them. Knowledge, Skills, and Applications What Is Fair Trade? Yu just purchased a new t-shirt and got o a great deal on the price. You consider yourself to be a responsible shopper and are proud of the fact. But was everyone along the production process treated well and paid fairly? Fairtrade Canada Some of the products that we use are made in factories or farms that employ children, have dangerous working conditions, pay poor wages, violate labour laws, and have 14- to 16-hour work days. Products commonly made in these conditions include clothing, cotton, tea, and coffee. So, how do you make certain that what you buy does not come at the cost of another person’s exploitation? One way is to purchase products with the Fairtrade Canada logo. Based in Ottawa, Fairtrade Canada is a Canadian not-for-profit corporation and a member of Fairtrade International. Fairtrade seeks to build a model of international trade that ensures better prices, decent working conditions, no exploitation of child labour, and sound environmental practices. The FAIRTRADE mark is a globally recognized certification. Fairtrade is a worldwide movement that ensures that farmers get better prices and that workers have better pay and safer working conditions. It safeguards workers’ rights, bans child labour and gender discrimination, ensures collective bargaining rights and freedom of association, and takes steps to protect the environment. Fairtrade aids over 1.6 million workers in 73 countries. It helps these businesses improve the quality and yield of their crops, assists in buying needed facilities and equipment, trains the workers, and improves the communities though education, healthcare and safe water. Better Education Review Questions Fairtrade Canada supports sustainable 1. What is the Fairtrade movement? development by setting standards that 2. What could be happening in a factory or ensure that the conditions of production farm that is not Fairtrade certified? of all certified products are socially and economically fair, and environmentally 3. What kinds of products are commonly made responsible. How can you help? under conditions of unfair trade? 4. How does Fairtrade Canada help The first way is to become educated. Do some workers globally? research on fair trade and the companies from 5. What can everyone do to foster fair trade in which you buy products. Secondly, purchase Canada and around the world? goods with the FAIRTRADE mark. More than 7000 products are Fairtrade certified in Canada. Another way to help is to shop at stores that provide Fairtrade options. You can also start a Fairtrade program in your school or community. ♦ Activities 1. Create a poster promoting the key ideas behind “fair trade.” Show the poster to your teacher and classmates. 2. Make a list of things you yourself can do to help make certain that the products you buy are not exploiting others.  6.3 Workplace Inclusion and Social Justice Owners seek to find the best managerial leadership available to help build their businesses. Fostering inclusion, equity and social justice is the key to achieving this goal. The Search for Business Leaders Increasingly, businesses acknowledge that there is a need to access a larger pool of managerial talent. For example, while much still remains to be done, today more women and minorities are ascending to higher positions within business, media, and government. Barriers that prevented people from rising to the top — sexism, racism and other forms of discrimination — are now unacceptable in business. In these areas, Canada lags behind. Changes are happening slowly, Figure 6.2: The Glass but the long-term trend is toward greater equity and inclusion. The Ceiling. Board seatsand opportunities for women and minorities to move into leadership top executive positions held positions within Canadian business have never been more by women (Centre for Policy favourable, but much more hard work will be needed to bring about Alternatives, Ottawa). full inclusion, equity and social justice.  Advancing Gender Equity in the Workplace Inside Business One of the most important changes in Canada over the last seventy years or so is the increased participation of women in Affirmative Action the labour force. The impact of this shift has been dramatic for Throughout Canada’s history, family incomes, childcare, and women’s independence. many groups have been the This transition did not occur painlessly. Women generally subject of discrimination entered the labour force in less secure occupations and in and this has putthem at a jobs with lower pay and benefits. They also faced obstacles to disadvantage today. Workplace advancement within their workplaces, a problem dubbed the affirmative action programs glass ceiling. Women faced discrimination that prevented them are designed to increase the representation of groups that from reaching the heights of industry. suffered past discrimination. Shattering the Glass Ceiling Discrimination against While women are playing a bigger role in Canada’s boardrooms, Indigenous peoples has existed the statistics show that they have a long way to go. A “glass since European contact. Slavery ceiling” exists, according to Statistics Canada. Canada’s was legal until it was abolished statistical agency looked at more than 10,000 public, private, in the British Empire in 1833. and government corporations and found that the boards of People who are Black, Japanese, directors of these businesses in 2016 and 2017 were composed or Chinese have been repressed largely of men. Just 18.1 percent of directorships were held by in Canada, and in the past women in 2017, and that was only a slight increase from 17.8 certain groups (e.g., the Irish, the percent the year before. Sikhs) were declared unwanted. Discrimination has also occurred A 2019 report by the Centre for Policy Alternatives examined on the basis of gender, religion, differences in pay between male and female executives and age, sexual orientation, and found a significant gender pay gap. Among top executives, physical ability. women made $0.68 for every dollar their male colleagues made The Canadian Charter of Rights (which amounted to $950,000 less in pay a year). and Freedoms guarantees Only 4% of Canadian CEOs and 10% of top executives are that all people will be treated women. Even when women break into this rarified group, they equally. It also recognizes that are still paid less than their male colleagues. The causes of discrimination did occur in gender equality in the Canadian corporate world, as elsewhere the past, and that corrective in society, is multifaceted. It cannot be divorced from the measures are necessary. absence of important social programs like affordable child The aim is to level the playing and elder care. Nor can it be divorced from a system of tax field, especially in employment, preferences that go almost entirely to executive “bonus pay,” a business, and education. ♦ key area creating the gender pay gap among top executives. The need for proactive policies aimed at promoting gender equity is clear. The lack of female executives in Canadian businesses and their substantial pay gap is an issue of fairness in its own right, but it also highlights the impact of corporate culture on women’s lives. ♦ Promoting Equity and Diversity in the Workplace Canada is one of the most multicultural nations in the world. As well as Indigenous peoples, who have lived in this land we call Canada for millennia, successive waves of immigrants have made this country a richer and more exciting place to live and do business. Cross-cultural awareness is the ability to understand, communicate, and effectively interact across cultures. For business owners and managers, cultural awareness is one of the keys to business success. Culturally diverse organizations can more easily identify consumer needs and they can develop and deliver products and services that accurately reflect the diversity of the population. Work teams of members with different cultural backgrounds and experiences introduce alternative ways of thinking and more effective decision-making. Culturally diverse organizations attract a more qualified pool of potential employees. The greater the talent pool, the more likely a business can find qualified and skilled employees. Diverse organizations can offer greater levels of employee satisfaction because perceptions of fairness and inclusion correlate positively with employee well-being. The Responsibilities of Owners and Managers Cross-cultural awareness is cultivated in the workplace by owners, Section Review managers, and employees demonstrating their respect for, and understanding of, different cultures, nationalities, religions, 1. What is meant by the phrase languages, and ethnicities. “workplace inclusion”? Cultural-awareness training includes such things as: 2. What meant by the phrase “the glass ceiling”? Deepening one’s knowledge of different cultural practices 3. What are workplace and views; “affirmative Understanding why and how communication and behaviours action” programs? should be adapted in different cross-cultural situations; 4. How can equity and Learning how to work effectively and respectfully with people of diversity be fostered in the different cultural and linguistic backgrounds; workplace? Highlighting the benefits of diversity, whether in the workplace or society more broadly; and, Creating plans and strategies that foster cultural competency, such as pay equity and equitable recruitment policies. Also, increasingly, consumers are voting with their wallets. Consumers want to buy from companies that promote social justice. Such shifts in consumer preferences will lead businesses to adopt policies that demonstrate inclusion and equity in the workplace. Knowledge, Skills, and Applications What Is the Cloud Business Model? Most businesses advertise and sell their goods on the internet. Computing technology enables businesses to promote their products online and allows consumers to buy using a web browser. For these firms, the internet is technology that is used to help sell their products. The Cloud Business Model is different. A Paradigm Shift The Cloud Business Model is a new way of doing business — a paradigm shift. The Cloud Business Model is built on the notion of the economies of scale. The fixed costs (set-up costs) are built into in the contract with the vendor. For users, this “pay-as-you-go” model is attractive since it reduces the time, money, and people needed to start and operate a business. In effect, the Cloud Business Model turns every customer into a subscriber. Instead of a one-time purchase, the sale is recurring and, equally important, the sales become regular and more predictable. Adobe, Salesforce, and most modern accounting software use this cloud-based sales model. Indeed, businesses like Amazon, Microsoft, and Apple now build vast fortunes based mostly on recurring subscriptions for infrastructure services. Take Amazon, for example. Most people know that Amazon sells items from its warehouses using the internet for ordering and invoicing. However, the real money comes from Amazon’s business-cloud operations. Amazon Web Services (AWS) sells cloud-based server access to businesses, and AWS accounts for the vast majority of Amazon’s total operating income. AWS is just one of the companies in this cloud infrastructure market, with competitors such as Microsoft, Google and IBM in active pursuit. Not Just a New Technology Review Questions Large insurance companies (MetLife), 1. Describe how the Cloud Business Model accounting firms (Sage), enterprise technology differs from more traditional uses of the companies (Oracle), media firms (Netflix) and internet, such as promoting and ordering even car companies (GM) have made the shift products or services. to the cloud. 2. Why are recurring and reliable sales The Cloud Business Model is changing the way important? companies are valued, too. Smart investors 3. What would an investor look at to assess now look not just at a firm’s traditional “bottom whether a cloud-based business was on firm foundations? line” but also at the subscriber base possessed by that company — that is, at the firm’s ability to generate endlessly recurring revenue from its subscriber base well into the future. Cloud business is not just a new technology. It is actually changing the way business is done. ♦ Activities 1. Research the earnings of the cloud-based divisions of Amazon, Apple, or Microsoft over the last decade or so and plot them on a simple graph. Present your results to your class or to a smaller group of classmates. 2. Using an internet search, find and describe how three companies (other than Amazon, Microsoft, or Apple) have moved to a Cloud Business Model in recent years. Write a report on what effect this model has had for these companies. 6.4 What Are Management Teams? Management teams are groups of people with complementary roles or tasks who aim to achieve their goals by working together. Management teams are very common in large business organizations and are critical to their success. Types of Management Teams Perhaps the best example of a management team is in professional sports, where the players and support staff work together to achieve the goals set by the owner and the team’s general manager. Business teams work in a similar manner. In the business context, the teams consist of groups of employees working together to complete various assignments under a general manager who has set the performance goals and timelines. Not all teams are the same. Some of the types of teams found in business organizations are: (a) Project teams (b) Cross-functional teams (c) Virtual teams Project Teams A project team (sometimes described as a “task force”) combines people from various parts of the organization to work on a specific project or toward a specific purpose. Usually, the project team exists only on a temporary basis until the project is completed and timelines are fully met. After the project has been completed, the team is disbanded and workers return to their functional departments and tasks. Cross-Functional Teams A cross-functional team involves employees with specific skill sets to work on a specific project or task. This could involve assembling employees from various functional units across a company, such as marketing, human resources, operations, accounting and finance, IT services, and others. Each member contributes their own particular skills to the task at hand. Members on such cross-functional teams work together to develop a solution that addresses a common problem or set of issues, which then advances the overall interests of each unit and the business as a whole.  Virtual Teams A virtual team is a group of individuals who collaborate using video-conferencing and other online technology. An example is employees from Toyota Canada and their counterparts in other countries working together over the internet to design and develop the upcoming new models of the Camry and Corolla. During the COVID-19 pandemic, online collaboration became widespread in workplaces from coast to coast out of necessity. Virtual teams face unique challenges, as anyone involved with Figure 6.4: Managing such a team during COVID-19 will attest. One concern is scheduling Successful Business around different time zones — when is everyone on the team awake? Teams. As a collective, a The team must also consider holidays and festivals celebrated in business team is greaterthan one region but not in another. Another is that all-important tone, simply the sum of the individual gestures, and cultural sensitivities may not be easily conveyed in a members in that team. text message or during a video conference. Training Communication Team Management Reward Motivation Flexibility Feedback Delegation Transparency  Building a Successful Business Team Section Review Here are a few general guidelines for creating strong business teams. 1. What are teams? What do they do? 1. Set Clear Goals and Targets 2. Describe a project team. The first thing is having clear goals and a clear path to get there. What happens at the end of The question to be answered is “What does team success look a project? like?” When tracking success, what will the scorecard measure? 3. Explain what a cross­ It also must be a shared scorecard. In the absence of shared functional team is. goals, individuals will make up their own minds and pursue 4. What are virtual teams? What their own goals. The team’s goals have to be explicit and shared benefits do they bring to the by the team as whole from the beginning. work environment? 2. Develop a Team Culture and Mutual Support 5. List four key principles to Carrying this further, there should be an effort to create a team keep in mind for creating culture, a feeling of mutual support among the team members. strong and successful The best analogy is that of a sport team, where everyone plays business teams. together, each having a clear role, each role working in concert with the others. Creating a team culture takes work — constant communication and mutual respect and support among the team members. 3. Foster Team and Individual Accountability Teamwork is important, but so too is individual responsibility. A team may be greater than the sum of its parts but that is only true if all the parts are taking responsibility for their role on the team. In a strong team, the members all want to be held responsible since, at the end of the day, that will advance the overall interests of the team as a whole. This may mean having frank discussions about problems and any misunderstandings that arise among colleagues on the team. 4. Encourage Team Communication and Feedback Of all the components of teamwork, perhaps the most important is full and frank communication between team members, including criticism where it is needed. Constructive feedback is a big part of this. Communication between team members can take many forms, but the best is in-person, face-to-face communication. Discuss confrontational issues directly with the parties involved rather than the full group. A useful guidepost for constructive feedback is never to go overboard — never make bold statements that attribute bad motives to someone’s behaviour. For one thing, you could be wrong. ♦ 6.5 Management Accountability Management accountability occurs when business managers take responsibility for ensuring that things are carried out as planned and results are achieved more or less as expected. Of course, employees need to act responsibly, too, but business managers especially need to be accountable for their actions. Managers Are Expected to Lead Being responsible for one’s actions and behaviour is important in all spheres of life, of course. In the business context, management accountability is crucial to ensuring a high level of performance within the organization. It also sets an example for others at all levels in the organization. Strong managers focus their efforts on leading and taking responsibility for their actions. By definition, that is what leaders are expected to do.  Fostering a Culture of Accountability Inside Business A healthy work environment does not suddenly appear magically — it takes deliberate effort and time to develop. It Workplace Harassment requires creating a culture of accountability. “Harassment,” according to A work environment will change in a positive way when business the Canadian Human Rights leaders consistently practise accountability. Accountability Commission (CHRC), “is a form starts and ends with strong leadership at the top. of discrimination. It includes any unwanted physical or The managers are the frontline leaders in any business. So, what verbal behaviour that offends or can managers do to demonstrate accountability and encourage a humiliates you.” culture of accountability within their organizations? According to the Canadian Some recognized accountability principles are the following. Human Rights Commission, it occurs when someone: 1. Walk the Talk makes unwelcome remarks or Leaders themselves must exemplify the behaviour that they jokes about your race, religion, expect from others, so that employees can emulate them. Strong sex, age, disability or any other business leaders walk the talk. grounds of discrimination; 2. Define Results and Expectations in Advance threatens or intimidates you Leaders set clear standards and expectations ahead of time, because of your race, religion, even when hiring, so that all employees understand how they sex, age, disability or any other are expected to behave. grounds of discrimination; makes unwelcome physical 3. Secure Ongoing Commitment contact with you, such as Leaders work with all their employees and set clear guidelines touching, patting, or pinching. and examples for them in order to overcome barriers and to The Act protects individuals obtain their commitment to company goals. anywhere they may find 4. Always Be Open to Feedback themselves in the course of their work, duringoroutside normal Leaders have an open-door policy with their employees, where working hours. any employee is empowered to bring any problem without fear of reprisal. Generally, it is the employer’s responsibility to create and 5. Encourage Critical Thinking and Problem-Solving maintain a workplace free of Leaders apply critical thinking and problem-solving skills, and harassment. ♦ they foster these skills in people who work for them. 6. Hold Each Other Accountable Strong business leaders act as role models, find teachable moments, and instill an “ownership mentality” where everyone holds everyone in the business accountable. ♦  Delegating Work A serious problem for many growing businesses is the owner’s Success Story and manager’s inability to let go. In such instances, the hesitancy Jobber at delegating work becomes a serious obstacle to long-term business success. For many owners and managers, it is a challenge to strike a balance between retaining control over the business and delegating to employees or subcontractors. The refusal to hand over responsibility can take a devastating toll on business profitability, employee engagement, and one’s personal life. In 2011, Jobber was born in Letting Go Edmonton, Alberta. The firm is Here are nine steps, developed by the Business Development Bank the brainchild of two software of Canada, that will help you delegate tasks so you can focus on developers and one painter. growing your business. Jobber is built around award-winning software that 1. Take an objective look at your workload helps small home-service Analyze what you are doing with your days by keeping a diary of businesses organize their entire your time for two weeks. How much time is dedicated to strategic operations, from scheduling activities and how much to day-to-day firefighting? Are you putting jobs and managing their crews, off important activities and projects? Now, consider which tasks to invoicing customers and could be performed by someone else to free you up to perform your collecting payments. highest value activities. The platform simplifies day-to- day operations for more than BENEFIT. Identify low-level activities that are eating up your time. 50 industries, including lawn 2. Determine where your contribution is most needed care, HVAC, painting, plumbing, residential cleaning, and more. Successful entrepreneurs know their strengths and weaknesses. To ensure every employee feels Perhaps you are a whiz at sales and marketing, but are driven crazy aligned with the company’s by accounting. Ideally, you should delegate that and other areas of mission, Jobber cultivates a safe weakness to those who are better at it than you. work environment that values BENEFIT. Your No. 1 job is to lead. By stepping back and letting diversity and supports the others who are better equipped to manage certain areas take career growth. some of the load, you are making your life easier and improving Jobber was recently named a your business’s performance. great place to work by Great Place to Work Institute in 3. Identify the best people in the organization recognition of the company’s Look for employees within your organization who are ready and commitment to creating a able to take on more responsibility. When hiring, recruit people who supportive, collaborative culture that provides equal opportunity have skills that complement your own. Create clear job descriptions, for all its employees. ♦ structured evaluation processes and fair incentives. These will help you achieve your business’s goals. BENEFIT. Your business will profit from diverse, complementary expertise. 4. Train. Coach. Empower. Trust Lack of trust is delegation’s worst enemy. With the proper training Section Review and coaching, your people can take on more complex tasks. Resist telling yourself you are the only one who can do things right or that 1. “The buck stops here" is a it will take too long to train someone to do something. The time you phrase that was popularized invest up front will be paid off many times over. by U.S. President Harry S. Truman. The idea is that the BENEFIT. A sense of making a contribution motivates people and president takes ultimate increases their productivity. responsibility for decisions during his time in office. 5. Share your business strategy with employees How does this managerial Do not lead from an ivory tower. Having a shared vision of the future principle apply in the context makes work more meaningful for your staff and gives them direction. of a business organization? BENEFIT. Obtain access to an excellent source of fresh, 2. Why is it especially important to create a innovative ideas. culture of accountability in every area of a business’s 6. Develop repeatable processes operations? Get your business processes out of your head — document them. 3. What are some indicators They need to be clear, detailed, and teachable. that there is accountability BENEFIT. You do not have to be present in person for things to throughout a business get done. A process-driven business is also easier to sell if that organization? time comes. 4. Why is the ability to delegate important at the 7. Focus on results management level? Do not get hung up on seeing staff adopt your working style. You want people who are focused on getting the job done, not worrying about how you would do it or what you are thinking. BENEFIT. You might be surprised. Having always done something in a certain way does not necessarily mean it is the best way. 8. Follow up without micromanaging Successful entrepreneurs maintain control as they delegate. Commit to regular one-on-one meetings with key employees and be briefed on key projects to ensure you know where things stand throughout the company. BENEFIT. You are on top of your business and ready to provide advice and feedback to employees. 9. Encourage your direct reports to delegate Managers in a growing company also need to learn to delegate while keeping themselves and you apprised of developments. BENEFIT. Now you are creating a healthy, professional corporate structure that will allow you to scale your company. 21st Century Business Competencies Analytical Skills Faced with a difficult decision, a business owner or manager will evaluate the available information, figure out what is relevant (and what is not), and draw conclusions free from biases and emotions. As a result, they will make better decisions — not always, but most of the time. But how does a person become more “analytical?” And what exactly does it mean? What Are Analytical Skills? Analytical skills refer to the ability to gather, interpret, and analyze data or information to make informed decisions and solve complex problems in a business setting. Analytical skills are crucial in business as they enable professionals to critically evaluate information, identify patterns or trends, make data-driven decisions, and solve complex problems, leading to improved business outcomes. Analysis uses two types of information: Quantitative Information. Quantitative information comes in the form of numerical data, experiments, and things like market surveys with “closed-ended” questions. This is the kind of “hard” information one finds in financial statements, for example. Quantitative information lends itself to rigorous mathematical calculations. Qualitative Information. Qualitative information, on the other hand, is considered “soft.” It reveals subtle insights not easily detected in raw numbers. It involves judgment, possibly even bias. As, Albert Einstein quipped: “Not everything that can be counted counts, and not everything that counts can be counted.” An analytical mindset draws upon both types of information. This allows for a better understanding about what is happening now, why it is happening, and what needs to be done next. Building an Analytical Mindset Review Questions There are a several characteristics common to 1. Why are analytical skills important an “analytical mind.” in business? Inquisitiveness. There is a natural curiosity 2. What is the difference between qualitative and a drive to figure out how things work. and quantitative data? Persistence. Solving problems requires 3. Provide some examples of analytical skills logical thinking and a respect for the facts. in business. Thinking outside the box. New problems 4. Describe the kinds of things that indicate an usually are unique and need new solutions. analytical mindset. A focus on details. The details count. “The devil,” as the saying goes, “is in the details.” Businesses can succeed or fail, and there are no guarantees. By developing strong analytical skills, owners and managers can improve the odds that their business will be successful. Activities 1. You are a manager of a large business and profits are down this year. With a group of classmates, develop a list of the kinds of things that would go into a S.W.O.T. analysis (strengths, weaknesses, opportunities, and threats) to address this problem. 2. An employee has expressed a serious concern about unsafe working conditions. In small groups, discuss how a manager would think through, and work through, this kind of problem. 3. Working with a small group of classmates, develop a slideshow to capture various qualitative and quantitative measures that would help a business owner decide whether to proceed with a new line of clothing products. Careers in Canadian Business Cyber Security Expert  cyber A security expert specializes in Kim Cameron safeguarding digital networks from Pioneer in Cyber Security cyber attacks, data breaches, and unauthorized access. Their role is to ensure the Kim Cameron, a graduate from the University integrity of sensitive digital assets. of King’s College and Dalhousie University in Halifax, N.S., was a visionary in the field of What Is a Cyber Security Expert? secure computer networks. Cyber security experts are in high demand In 1999, Kim Cameron joined Microsoft as across various industries, including finance, part of their acquisition of ZoomIt Corp., healthcare, government, and technology. a company he had co-founded in 1980. Kim Indeed, cyber security risks are a major became Microsoft’s Chief Architect of Identity concern in business today. and the mastermind behind Microsoft’s Active The key skills and qualifications of a cyber Directory, which evolved into the world’s most security expert include: widely deployed identity technology. Advanced knowledge of networking, Author of the now-famous “7 Laws of Identity,” operating systems, and programming. Kim championed innovations that put users in control of their own identity as a way to solve Understanding of cyber security privacy and security problems. frameworks, processes, and standards. Analytical thinking and problem-solving skills in order to identify and mitigate risks. Ethical hacking skills to conduct security assessments and penetration tests. Excellent communication skills to communicate complex technical concepts to non-technical stakeholders. Review Questions 1. In a sentence, sum up the role of a “cyber security expert.” 2. What are the main skills and qualifications of a cyber security expert? 3. Do you agree that the need for cyber security expertise in business is growing? If so, why might this be the case? 4. Is the idea of becoming an “cyber security expert” something that might interest you as a possible career? Why or why not? Spotlight on a Canadian Business Tech Spark Canada  Tech Spark is Canada’s first tech and Tamar Huggins, Founder design school committed to empowering As a Black Canadian woman in tech, Tamar children of colour, girls, women and Huggins wanted young girls and children of teachers through innovative education. It is a colour to see people like them reflected in non-profit business. the tech industry. Her goal was to empower underrepresented children. About Tech Spark Canada In 2015, Tamar Huggins launched Tech Tech Spark educators and technical Spark, Canada’s first technology and design mentors are industry experts who reflect school with the mandate to empower girls the communities they serve. They develop and children of colour. So far, Tech Spark curriculum that is culturally relevant in has created 7 curricula and 300 curated order to build and strengthen the social and workshops with 100 trained teachers and emotional skills of students. 10,000 trained students. Tech Spark believes that girls and Black youth In 2017, Tamar Huggins was honoured as one at the elementary and high school levels need of Canada’s top 150 Black women by the CBC more support to pursue academic science, and HERstory in Black. technology, engineering and math (STEM) courses. The lack of encouragement in the early grades leads to an under-representation in higher education and technology careers. Tech Spark’s mission is to empower underrepresented Canadians and provide them with opportunities to make meaningful contributions to Canada’s tech ecosystem. ♦ Review Questions 1. Tech Spark is a non-profit Canadian business? What does “non-profit” mean? 2. Who founded Tech Spark Canada? 3. According to Tech Spark, which groups are underrepresented in the science and technology field? 4. Do you think the goals of Tech Spark are a worthwhile cause? Why or why not?  Review of Chapter 6 Knowledge and Understanding Thinking and Inquiry 1. What are the roles and responsibilities 5. How might management adapt to the changing of managers? characteristics of young employees who make 2. The acronym POLC stands for “Planning, up their work environment (e.g., Millennials, Organizing, Leading, and Controlling.” Briefly GenZ, etc.)? explain each of these terms. 6. What type of leader is best suited for emergency 3. Although no individual conforms exactly to a situations? Why? Provide an example that particular style of leadership, provide an example illustrates your reasoning. of someone who comes readily to mind who 7. What are the advantages and disadvantages of might best represent each type of leader. working in a team? Provide an example from your 4. “Two minds are better than one,” as the saying own experience. goes. Do you think this notion applies, always 8. Explain what could go wrong if there is no or or just sometimes, in a business context? Why little managerial accountability within a business or why not? organization. Communications and Media Applications 9. Identify three famous transformational leaders in 13. Imagine you are the manager of a fast-food business, past and present. In what ways are they restaurant. What managerial style do you transformational? think would be best suited to dealing with the 10. Ask a family member or friend about a particular following? (a) You come across an annoyed style of leadership that they have experienced at customer who waited too long for their meal; their place of work. Describe their experiences in and (b) A fire has started in the kitchen and a presentation to a group of your classmates. emergency services have been dispatched. 11. Research a technology company based in your Explain your answers to a group of classmates. city. What type of management practices did 14. Assume you are the sales manager in a large you identify in that workplace? Why do these manufacturing firm. What steps could you take practices seem to make sense for this company? ahead of time to ensure that you are comfortable 12. What type of leader do you expect to become? taking responsibility for those working List the skills and characteristics that will inform under you? Explain your answers to a group of your choice of leadership style. classmates.