Management and Leadership PDF

Management and Leadership McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.  * TODAY’S MAN...

Management and Leadership McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.  * TODAY’S MANAGEMENT Managers’ Roles Are Evolving LG1 * Management is the process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. 7-2  * FOUR FUNCTIONS of Four Functions of Management MANAGEMENT LG2 * 1. Planning 2. Organizing 3. Leading 4. Controlling 7-3  * SHARING the VISION Planning & Decision Making Vision -- More than a goal, it’s a broad LG3 * explanation of why the organization exists and where it’s trying to go. (future) A mission statement outlines the organization’s fundamental purposes. (present) Goals are the broad, long term accomplishments an organization wishes to attain. Objectives are specific, short term statements detailing how to achieve the organization’s goals. 7-4 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  Amazon "Our [Amazon's] vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online."  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 ANSWERS Planning & Decision Making FUNDAMENTAL QUESTIONS LG3 * What is the situation now? SWOT Analysis -- Analyzes the organization’s Strengths, Weaknesses, Opportunities and Threats. How can we get to our goal from here? - Strategic planning - Tactical planning - Operational planning - Contingency planning 7-8  STRATEGIC and TACTICAL PLANNING LG3 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. 7-9  OPERATIONAL and CONTINGENCY PLANNING Operational Planning -- The process of setting work standards and schedules necessary to implement the company’s tactical objectives. Contingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don’t work out. 7-10 Forms of Planning LG3 7-11  7.2 Kinds of Organizational Goals for a Regional Fast-Food Chain 7–12  *Decision Making: RATIONAL DECISION-MAKING Finding the Best Alternative MODEL (7D’s) LG3 * 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. 7-13  Problem Solving 1. Brainstorming - coming up with as many solutions possible in a short period of time with no censoring of ideas. 2. Another technique is called PMI, or listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third. The idea is to make sure the pluses exceed the minuses. 7-14  ORGANIZATIONAL CHARTS Organization Chart -- A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom. 7-15 LEVELS of MANAGEMENT 7-16  Formulating Business-Level Strategies A number of frameworks have been developed for identifying the major strategic alternatives that organizations should consider when choosing their business-level strategies. Three important classification schemes are Porter’s generic strategies, the Miles and Snow typology, and strategies based on the product life cycle. Porter’s Generic Strategies Porter’s Generic Strategies  Differentiation strategy An organization that pursues a differentiation strategy seeks to distinguish itself from competitors through the quality (broadly defined) of its products or services. Firms that successfully implement a differentiation strategy are able to charge more than competitors because customers are willing to pay more to obtain the extra value they perceive. Rolex pursues a differentiation strategy. Rolex watches are handmade of precious metals like gold or platinum and stainless steel, and they are subjected to strenuous tests of quality and reliability. The firm’s reputation enables it to charge thousands of dollars for its watches  Overall Cost Leadership Strategy Attempts to gain a competitive advantage by reducing its costs below the costs of competing firms. By keeping costs low, the organization is able to sell its products at low prices and still make a profit. Timex uses an overall cost leadership strategy. For decades, this firm has specialized in manufacturing relatively simple, low-cost watches for the mass market. The price of Timex watches, starting around $39.95, is low because of the company’s efficient high volume manufacturing capacity  A Focus Strategy Concentrates on a specific regional market, product line, or group of buyers. This strategy may have either a differentiation focus, whereby the firm differentiates its products in the focus market, or an overall cost leadership focus, whereby the firm manufactures and sells its products at low cost in the focus market. In the watch industry, Tag Heuer follows a focus differentiation strategy by selling only rugged waterproof watches to active consumers. Fiat follows a focus cost leadership strategy by selling its automobiles only in Italy and in selected regions of Europe;  A Focus Strategy Alfa Romeo uses focus differentiation to sell its high-performance cars in these same markets. Hasselblad makes expensive cameras targeted at professional photographers. Fisher-Price uses focus differentiation to sell electronic calculators with large, brightly colored buttons to the parents of preschoolers; stockbroker Edward Jones focuses on small-town settings. General Mills focuses one part of its new-product development on consumers who eat meals while driving—their watchword is “Can we make it ‘one-handed’?” so that drivers can safely eat or drink it. The Miles and Snow Typology  Organizing After managers have planned a course of action, they must organize the firm to accomplish their goals. That means allocating resources, (such as funds for various departments), assigning tasks, establishing procedures.  The Elements of Organizing EXAMPLE: Imagine asking a child to build a castle with a set of building blocks. She selects a few small blocks and other larger ones. She uses some square ones, some round ones, and some triangular ones. When she finishes, she has her own castle, unlike any other. Another child, presented with the same task, constructs a different castle. He selects different blocks, for example, and combines them in different ways. The children’s activities—choosing certain combinations of blocks and then putting them together in unique ways—are in many ways analogous to the manager’s job of organizing. Organizing is deciding how best to group organizational elements. Just as children select different kinds of building blocks, managers can choose a variety of structural possibilities. And just as the children can assemble the blocks in any number of ways, so, too, can managers put the organization together in many different ways. Understanding the nature of these building blocks and the different ways in which they can be configured can have a powerful impact on a firm’s competitiveness. Organizing Skills/Tasks – Technical- task in specific discipline – Human relation- involve communication and motivation – Conceptual- the ability to picture the org. as a whole Staffing Involves recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives. 7-27  *Leading: Providing LEADERSHIP Continuous Vision and Values. LG5 * Leaders must: - Communicate a vision and rally others around that vision. - Establish corporate values. - Promote corporate ethics. - Embrace change. - Stress accountability and responsibility 7-29  * LEADERSHIP STYLES Leadership Styles Autocratic Leadership -- Making LG5 * managerial decisions without consulting others. Participative or Democratic Leadership -- Managers and employees work together to make decisions. flexibility, good listening skill, empathy Free-Rein Leadership -- Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives. Warmth, friendliness & understanding 7-30  LEADERSHIP STYLES Other concepts: Directing: Telling them what to do to meet the goals and objectives of the organization. Empowerment: Giving employees the authority to make a decision without consulting the manager and the responsibility to respond quickly to customer requests  LEADERSHIP STYLES Other concepts: Enabling: Giving workers the education and tools they need to make decisions Knowledge management: Finding the right information, keeping it in a readily accessible place, and making it known to everyone in the firm together constitute the tasks of knowledge management.  Controlling The Control function measures performance relative to the planned objectives and standards, rewards people for work well done, and takes corrective action when necessary. Thus the control process (see Figure 7.8) provides the feedback that lets managers and workers adjust to deviations from plans and to changes in the environment that have affected performance. Controlling consist of five steps: FIVE STEPS of CONTROLLING 7-35