BADM 101 Ch 7 Management & Leadership PDF

Chapter 7 Management and Leadership Dr. Rania El Garem ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education....

Chapter 7 Management and Leadership Dr. Rania El Garem ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Chapter Contents 1. Managers’ Roles Are Evolving 2. The Four Functions of Management A. Planning and Decision Making B. Organizing: Creating a Unified System C. Leading: Providing Continuous Vision and Values D. Controlling: Making Sure It Works  Activity 1: What are the different Flaws and Drawbacks in the mini case?  a) Lack of patient 1- consent What was b) Failure to verify the injection contents primar y flaw c) Delayed medical attention in the mini- d) Inadequate case? monitoring  a) Allergic reaction 2- What b) Patient's was the death conseque nce of the c) Temporary nurse's pain mistake? d) No significant impact  a) Immediately 3- How stopped the did the injection doctor b) Listened and respon addressed her d to the concerns patient' c) Disregarded her s screams and scream continued injection s of d) Administered pain? pain relief medication  a) Prescribed medication for pain 4- What relief action should the b) Dismissed her doctor concerns as normal have side effects taken upon the c) Reassured the patient's patient and continued deteriorat treatment ing condition? d) Responded promptly and provided appropriate medical attention  Flaws and Drawbacks in the mini case: Mini Case: Medical Lack of Verification: The gynecologist failed to verify the contents of the injection Negligenc before it was administered to the patient. e and This shows a lack of attention to detail and failure to ensure the correct procedures Poor are followed. Managem ent Inadequate Monitoring: The doctor neglected to respond to the patient's screams of pain during the injection. This reflects a lack of empathy and failure to prioritize patient well-being.  Dismissal of Patient Concerns: The doctor dismissed the patient's complaints and did not address her deteriorating condition. This demonstrates a lack of professionalism and disregard for patient safety. Mini Case: Delayed Medical Attention: Medical The patient's family had to take her to another hospital Negligenc after her condition worsened, indicating a lack e and of timely intervention and proper medical care. Poor Managem Mismanagement of ent Resources: The nurse incorrectly prepared the injection, substituting formalin for the intended liquid. This highlights poor supervision, inadequate training, and a failure to follow proper protocols.  Manager’s Role Managers must have the talent to exploit all the organization resources which include workers, financial resources & equipment. Earlier managers were called “Bosses” and their jobs consisted of telling people what to do, watching over them to be sure they did it in their own way and Manyblame those now Managers who still didn’t. behave that way. ©McGraw-Hill Education.  1- Managers’ Roles Are Evolving Managers Today 1. Tend to be collaborative 2. Highlight the importance of teams and team building 3. Guide, train, support, motivate, and coach employees 4. Need to be skilled communicators and team players 5. Need to be planner, organizer 6. Motivator & Leader. LO 7-1  1- Managers’ Roles Are Evolving (cont’) 7- Need to be globally prepared Need skills such as Adaptability Foreign language skills Ease to deal with different cultures ©McGraw-Hill Education.  Respect and How to Get It Set standards Acknowledge not just for the actions of your staff, but others. for yourself. BE A ROLE In a MODEL constructive Be trustworthy. way & not in Give feedback. (+ a destructive or -) way Show respect. Source: Forbes, www.forbes.com, accessed November 2017.  Management It is the process used to accomplish organizational goals through planning, organizing, leading and control people and other organizational resources. 2- The Four Functions of Management Jump to long description in appendix LO 7-2 What Managers Do Jump to long description in appendix LO 7-2  In a restaurant, organizing may include: The restaurant They establish work management team schedules, define organizes the job responsibilities, kitchen operations and ensure the by assigning specific availability of roles to chefs, line necessary cooks, and equipment and dishwashers. ingredients.  a) Setting objectives and goals Activity 3: What does b) Allocating the resources and organizing assigning tasks function of managem c) Motivating and ent inspiring employees primarily involve? d) Evaluating performance and providing feedback  a) Developing marketing strategies In the restaura b) Creating a work nt schedule for example, employees what is an c) Monitoring aspect of customer satisfaction organizin g? d) Analyzing financial performance  The restaurant manager leads by example, demonstrating excellent customer service and In the teamwork. They provide clear restaura instructions, offer training and nt, development Leading opportunities, and foster may a positive work include: environment. They inspire employees to deliver exceptional dining experiences.  a) Structuring and arranging resources Activity 4: What b) Guiding and does the motivating leading employees function of managem c) Setting ent performance targets primarily involve? d) Monitoring and evaluating progress In the restaurant example, how does the manager demonstrate leadership? A) SETTING B) C) PROVIDING D) SALES MONITORING TRAINING ANALYZING TARGETS INVENTORY AND CUSTOMER LEVELS DEVELOPMEN FEEDBACK T  Example of a TRUE LEADER ©McGraw-Hill Education. ©McGraw-Hill Education.  Empowering Employees  Means giving Frontline the training, skills, equipment, authority & freedom they need to make a decision without consulting the manager and the responsibility to respond quickly to customer requests.  Knowledge is power.” Empowering employees means giving them knowledge—that is, the information they need to do the best job they can.  Managers are often reluctant to give up their decision- making power and often resist empowerment. © Paul J. RIchards/AFP/Getty Images Ritz Carlton  The folks at Ritz-Carlton know how to deliver an outstanding customer experience. To justify their premium prices, Ritz makes sure that its customers receive painstakingly good and personalized service.  They take things to the next level in this story covered on Bloomberg: A family who had been staying in the Ritz-Carlton in Bali had brought specialized eggs and milk for their son who had numerous food allergies.  Upon arrival, they saw that the eggs had broken, and the milk had soured!  The hotel's manager and dining staff searched the town but couldn't find the appropriate items. Luckily, the executive chef at this resort remembered a store in Singapore that sold them.  He contacted his mother-in-law and asked that she buy the products and fly to Bali to deliver them, which she agreed to do.  The words of Ritz-Carlton's COO Simon Cooper show the control Ritz is willing to give their employees to empower them to deliver an amazing experience:  The goal is to develop such a strong emotional engagement between the hotels' staff and their guests that a guest will not consider staying anywhere else, even if they have an option. D- Controlling: Making Sure It Works Control Function Measures performance relative to planned objectives & standards. Rewards people for work well done Takes necessary corrective action  In a restaurant, Controlling may include: The restaurant If there are management team discrepancies, they regularly reviews take corrective financial reports, action, such as customer feedback, adjusting menu and employee prices, addressing performance to service issues, or assess the providing additional achievement of goals. training.  a) Setting objectives and goals Activity 5: What b) Guiding and does the motivating controllin employees g function of c) Monitoring managem progress and taking ent corrective action primarily involve? d) Allocating resources and assigning tasks The Control Process Jump to long description in appendix For Managers to Measure Results The standards must be specific, attainable, and measurable “SMART” Vague goals and standards such as “better quality,” “more efficiency,” and “improved performance” aren't sufficient because they don't describe in enough detail what you're trying to achieve. Ex: increasing sales of product x from 10,000 per month to 12,000 per month by July. 33 A Key criterion for Measurement Customer satisfaction: Traditional measures for success are usually financial (profits, ROI). Other purposes may include: Pleasing employees, stakeholders, internal and external customers. 34  The Four Functions of Management ©McGraw-Hill Education.  A- Planning & Decision Making ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.  A- Planning & Decision Making Planning is what helps managers understand the environment in which their businesses must operate. Planning is setting managerial vision, mission, goals and objectives © Creatas/Getty Images RF  Vision: What do we want to become? It answers the basic question: If the organization were to achieve all of its strategic goals, what would it look like 10 years from now?  It should be short, preferably one statement.  It is more than a goal; it is a broad explanation of why the organization exists and where it’s trying to go.  It gives the organization a sense of purpose and a set of values that unite worker. Examples of Vision statements General Motors’ vision is to be the world leader in transportation products and related services. (Good statement) PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate-environment, social, economic- creating better tomorrow than today (statement is too vague; it should reveal beverage and food business)  Dell’s vision is to create a company culture where environmental excellence is second culture. (statement is too vague; it should reveal computer business in some manner; the world environmental is generally used to refer to natural environment so is unclear in its use here) Procter & Gamble’s vision is to be, and to be recognized as, the best consumer products company in the world. (statement is too vague and readability is not that good).  Mission: what is our business? It is an outline of the fundamental purposes of an organization, including: The organization’s self-concept Its philosophy Long-term survival needs Customer needs Social responsibility Nature of the product or service  What are the 9 components of the Mission Statements ©McGraw-Hill Education.  Mission Statement components It is important that it includes the following 9 characteristics: 1. Customers- who are the firm’s customers? 2. Products or services- what are the firm’s major products or services? 3. Markets- Geographically, where does the firm compete? 4. Technology- Is the firm technologically current? 5. Concern for survival, growth & profitability?- Is the firm committed to growth & financial soundness? 6. Philosophy- what are the basic beliefs, values & ethical priorities of the firm? 7. Self-Concept- what is the firm distinctive competencies or major competitive advantage? 8. Concern for public image?-Is the firm responsive to social community, & environmental concerns? 9. Concern for employees?- Are employees a valuable asset of the firm?  Examples of Mission statements PepsiCo the world's (3) premier consumer products company, focused on convenient foods & beverages (2), We seek to produce healthy financial rewards for investors (5) as we provide opportunities for growth & enrichment to our employees (9), our business partners & the communities in which we operate. And in everything we do, as we strive to act with honesty, openness, fairness, and integrity(6). (statement lacks 3 components: customers, technology, and self-concept). I Examples of Mission statements We are loyal to Royal Caribbean, and Celebrity and strive for continuous improvement in everything we do. We always provide service with a friendly greeting and a smile (7). We anticipate the needs of our customers and make all efforts to exceed our customer’s expectations (1). We take ownership of any problem that is brought to our attention. We engage in conduct that enhances our corporate reputation and employee morale (9). We are committed to act in the highest ethical manner and respect the rights & dignity of others (6). (Statement lacks five components: Products/services, Markets, Technology, concern for Survival/Growth/Profits, Concern for public Image).  The Vision Statement focuses on the future; it is a source of inspiration and motivation. Often it describes not just the Visio future of the organization but the future of the industry or society in which the n Vs. organization hopes to effect change. missi The Mission Statement on concentrates on the present; it defines the customer(s), critical processes and it informs you about the desired level of performance. 47  Goals vs Objectives The mission statement becomes the foundation for setting specific goals & objectives. Goals ………. Broad, long-term accomplishments an organization wishes to achieve. Objectives ……. Specific, short-term statements detailing how to achieve the organization's goals.  Goals Goals are….Broad in nature less specific than objectives  Valuable for setting a general direction or vision  They are Qualitative; Difficult to measure  Abstract ideas  Longer term  The end result Examples of goals include:  Goal: Increase market share in the smartphone industry.  Goal: Enhance customer satisfaction and loyalty.  Goal: Expand into new international markets. ©McGraw-Hill Education.  Objectives Objectives are:  Narrow in scope  Specific steps  Associated with a schedule and time frame  The means to the end result  Easy to measure  Short term or medium term Examples of objectives include: Objective: Increase market share by 10% within the next fiscal year. Objective: Achieve a customer satisfaction rating of 90% or higher in the next quarter. Objective: Enter and establish a presence in three new international markets within the next two years. ©McGraw-Hill Education.  Starbuck’s Goals & Objectives Starbucks’ Goal is to deliver “the best coffee in the world” to their customers without sacrificing their growth principles. From the very beginning, the founders of Starbucks had an emphasis on: Building a shop that would be the “Third Place” between work and home. To inspire and nurture the human spirit- one person, one cup and one neighborhood at a time. Starbuck’s Objective Today, with more than 32,000 stores in 80 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world. ©McGraw-Hill Education.  In summary, goals represent the broader intentions or desired outcomes, while objectives are the specific targets and actions that contribute to achieving those goals.  a) Increase sales by 1- 20%. Which of the b) Launch a new product by the end followi of the year. ng is c) Expand market an presence in new regions. exampl e of a d) Improve customer goal? satisfaction rating to 95%. 2-Which of the following is an example of an objective? a) Enhance brand reputation. b) Increase employee engagement. c) Achieve a 10% reduction in production costs. d) Establish partnerships with industry leaders.  1. What is the situation now? 2. What is the state of the economy & other environments? 3. What opportunities exist for meeting people’s needs? Planning 4. What products and customers are most answers 5. profitable? Who are our major competitors? several 6. What threats are there to our business? questions 55  What Is a SWOT Analysis? A SWOT analysis is a technique used to determine and define your:  Strengths,  Weaknesses,  Opportunities, and  Threats SWOT Matrix with Generic Examples 57 SOWT Analysis With Strategic Suggestions 58  Starbucks SWOT Analysis ©McGraw-Hill Education.  SWOT Analysis for a Hotel Strengths Weaknesses Prime location in a Limited online popular tourist presence and weak destination. digital marketing Well-trained and strategy. experienced staff. Outdated interior High-quality design and furniture. facilities. Lack of diverse Strong brand catering options. reputation. Inconsistent customer service standards.  SWOT Analysis for a Hotel Opportunities Threats Intense competition from other hotels and More environmentally accommodation options. conscious customers. Economic downturn impacting travel and Increasing international tourism. tourism in the region. Changing customer preferences and expectations. Negative online reviews and Collaboration with local reputation damage. attractions and tour operators. Strategic Suggestions for the Hotel: 1. Strengthen online presence and digital marketing efforts to increase visibility and attract more customers. 2. Renovate and update the interior design and furniture to enhance guest experience and stay competitive. 3. Diversify catering options to cater to different dietary preferences and attract a wider range of guests. Invest in staff training and development programs to ensure consistent high- quality customer service. 4. Embrace sustainability initiatives to appeal to eco-conscious travelers and differentiate from competitors. 5. Forge strategic partnerships with local attractions and tour operators to offer bundled packages and enhance guest experiences. 6. Target the corporate through specialized marketing campaigns and tailored services.  Forms of Planning How can we get to our GOAL from here? Jump to long description in appendix A- Planning and Decision Making Strategic planning — Determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. Policy decisions, long-term, complex & Non-routine (Senior Management). Tactical planning — Developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done. How to achieve the policy, Medium term, Less complex (Middle Management) A- Planning and Decision Making Operational planning — Setting work standards and schedules necessary to implement the company’s tactical objectives. Day- to- day decisions, Simple & Routine ( Junior Management). Contingency planning — Preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives.  An example of a company that effectively utilized strategic planning is Apple Inc. By focusing on innovation, design, and customer experience, Apple gained a significant market share with products like the iPhone and iPad. Nike is an example of a company that excelled in tactical planning. They implemented various marketing campaigns, sponsorships, and product line expansions to strengthen their brand and gain market share in the sports apparel industry. Walmart is an example of a company that effectively implemented operational planning. The retail giant optimized its supply chain, logistics, and inventory management systems, enabling them to deliver products efficiently, maintain competitive prices, and expand their market share. One example of effective contingency planning is demonstrated by Amazon. The company has invested heavily in building redundant infrastructure, implementing disaster recovery measures, and diversifying its distribution network to ensure uninterrupted service and customer satisfaction. John Lasseter  Disney-Lucasfilm-Pixar  Even though top managers are responsible for strategic planning, it is important for them to listen to those who might have the best strategic planning (employees).  Employees whose ideas about strategy are ignored might leave.  For example “John Lasseter”; worked as a young annimator for Disney, he advised the comp. to take computer animation seriously.  He believed that animation tech. would be central to Disney’s future. The company didn’t agree and fired him.  Lasseter then joined Lucasfilm’s growing computer graphics team.  Later Disney realized that Lasster was right & tried to bring him back, but it was too late.  Lucasfilm became Pixar, the powerhouse animation comp. that created Toy story, Finding Nemos,…  Two decades later Disney bought Pixar for 7.4 billion & made Lasseter “Chief Creative Officer” ©McGraw-Hill Education. The Management Planning Process 73 A- Planning and Decision Making Decision Making: Finding the Best Alternative Decision making — Choosing among two or more alternatives. Rational decision-making model 1. Define the situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Decide which alternative is best. 5. Do what is indicated (begin implementation) 6. Determine whether the decision was a good one, and follow up.  B- Organizing: Creating a Unified System Management Levels are: Top management — Highest level, consisting of the president and other key company executives who develop strategic plans. Middle management — Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling. Supervisory management — Those directly responsible for supervising workers and evaluating their daily performance Levels of Management Jump to long description in appendix 78  Skills needed at different levels of Management All Managers need human relations skills. At the Top managers need strong conceptual skills & rely less on technical skills. First-line managers need strong technical skills & rely less on conceptual skills. Middle managers need to have a balance between technical & conceptual skills.  C- Leading: Providing Continuous Vision & Values Leaders must: Create a vision for others to follow & communicating, guiding, training, coaching & motivating others to achieve goals & objectives in a timely manner. Establish corporate values and ethics Transform the way the organization does business in order to improve its effectiveness & efficiency. Managers strive to produce order and stability, whereas leaders embrace and manage change. Kahoot On-line Game Questions? 82 Thank you 83