Management and Leadership Lecture 5 PDF

MANAGEMENT AND LEADERSHIP 5 Sepideh Mahdikhani Dr. habil Madai Hajnalka  OUTLINE OF THE CHAPTER Management Functions of management How management differs from leadership?  MANAGEMENT At one time managers were called “bosses” and their job consisted...

MANAGEMENT AND LEADERSHIP 5 Sepideh Mahdikhani Dr. habil Madai Hajnalka  OUTLINE OF THE CHAPTER Management Functions of management How management differs from leadership?  MANAGEMENT At one time managers were called “bosses” and their job consisted of telling people what to do, watching over them to be sure they did it, and reprimanding those who didn’t. Many managers still behave that way. Some managers tend to be more progressive: 1. emphasize teams 2. team building 3.change the def. of work from a task you do for a specified period in a specific place to sg. you do anywhere, anytime 4.tend to guide, train, support, motivate and coach employees, rather than tell them what to do 5.emphasize teamwork and cooperation rather than discipline and order giving  THE PEOPLE ENTERING MANAGEMENT TODAY ARE DIFFERENT FROM THOSE WHO ENTERED IN THE PAST: 1. tend to be younger 2. more of them are female 3. fewer of them educated at elite universities Management demand a new kind of person: 1. skilled communicator 2. team player 3. well planner, organizer, motivator and leader 4. more globally prepared 5. adaptability skills 6. foreign languages skills 7. ease in other cultures  Management is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources. MANAGEMENT WHAT MANAGERS DO 6  WHAT MANAGERS DO Some modern managers perform all of these tasks with the full cooperation and participation of workers. Empowering employees means allowing them to participate more fully in decision making.  PLANING Planning a management function that inclu d e s anticipat ing trends and determining the best strategies and tactics to achieve organizational goals and objectives. ONE OF THE MAJOR OBJECTIVES OF ORGANIZATIONS IS TO PLEASE CUSTOMERS Trend today is to have planning team: 1. help monitor the environment 2. find business opportunities 3. watch for challenges  ORGANIZING a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives. MANY OF TODAY’S ORGANIZATIONS ARE BEING DESIGNED AROUND PLEASING THE CUSTOMER AT A PROFIT. They must remain flexible and adaptable, because when customer needs change, firms must change with them.  LEADING CREATING A VISION FOR THE ORGANIZATION AND GUIDING, TRAINING, COACHING, AND MOTIVATING OTHERS TO WORK EFFECTIVELY TO ACHIEVE THE ORGANIZATION’S GOALS AND OBJECTIVES. The trend is to empower employees, giving them as much freedom as possible to become self-directed and self- motivated. Managers no longer tell people what to do because knowledge workers and others often know how to do their jobs better than the managers does. Still necessary to keep employees focused on the right tasks at the right time.  CONTROLLING a management function that involves establishing clear standards to determine whether or not an organization is progressing towards its goals and objectives, rewarding people for doing a good job and taking corrective action if they are not. It means measuring whether what actually occurs meets the organization’s goals.  PLANNING AND DECISION MAKING Planning, the first managerial function, is setting the organization’s vision (incl. its mission statement), goals, and objectives. Vision is more than a goal; it’s a broad explanation of why the organization exists and where it’s trying to go. Mission statement: an outline of the fundamental purposes of an organization. 1. The org.’s self-concept. 2. Its philosophy. 3. Long-term survival. 4. Customer needs. 5. Social responsibility. 6. Nature of the product or service. Business vision & mission What do we want to become? What is our business?  The essence of the strategy Assets driven business plan Vision driven strategy plan Ambition Ambition I Vision INNOVATIVE INNOVATIVE M SPHERE SPHERE A G The limit of Future The limit of I conventional state conventional N thinking. thinking. E Present Present state state The starting point of the Time The starting point of the Time Classical planning Strategic planning  Vision STRATEGIC VISION A view of an organization’s future direction and business course; a guiding for what the organization is trying to do and to become. What do we want to become?  Vision Henkel is want to be a leader with brands and technologies that make people's lives easier, better and more beautiful. What do we want to become?  Vision We will provide knowledge and take action to ensure the national security of the United States and the preservation of American life and ideals. What do we want to become?  Vision In the medium term, we will extend our leading market position in Europe, expand our share of the US footwear market and be the fastest growing major sporting goods supplier in Asia and Latin America. The resulting top-line growth, together with strict cost control and working capital improvements, will drive over-proportionate earnings growth. What do we want to become?  Vision To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products. What do we want to become?  Vision …..the Company has the potential to become an energy “bridge” between the European and Asian markets by supplying its own natural gas and providing gas transit services to other producers. This predetermines the essence of the Company's strategy in its key business areas. What do we want to become?  Strategic mission STRATEGIC MISSION Declaration in relation to the basic values and expectations. What is our business?  Strategic mission We believe our first responsibility is to the doctors nurses to mothers who use our products and services.  Strategic mission We are the eyes and ears of the nation and at times its hidden hand. To pioneer the future in space exploration, scientific discovery and aeronautics research. What is our business?  Strategic mission To organize the world's information and make it universally accessible and useful. What is our business?  Strategic mission To bring inspiration and innovation to every athlete in the world. What is our business?  Strategic mission "To provide the fast food customer food prepared in the same high-quality manner world-wide that is tasty, reasonably-priced & delivered consistently in a low-key décor and friendly atmosphere." What is our business?  Strategic mission …..will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies….. What is our business?  Strategic mission We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments. What is our business?  Strategic mission …..strives to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle. What is our business?  Strategic mission ……. is unique for enjoying the advantage of being simultaneously an energy producer and supplier owning a potent resource base and a manifold gas transport infrastructure. What is our business?  Strategic mission Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. What is our business?  KFC MISSION AND VISION STATEMENT ANALYSIS MIND MAP  GOALS & OBJECTIVES Goals are the broad, long-term Objectives: specific, short-term accomplishments an statements detailing how to organization wishes to attain. achieve the organization’s goals. SWOT analysis: a planning tool used to analyze an organization’s strengths, weaknesses, opportunities and threats. Strength Weakness SWOT Opportunity Threat  DECISION MAKING: FINDING THE BEST ALTERNATIVE Decision making: Choosing among two or more alternatives. The rational decision making model: (7 Ds of decision making): 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. B C 6. Do what is indicated (begin implementation). 7. Determine whether the decision was a good one, D E and follow up.  PROBLEM SOLVING The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.  Brainstorming: Coming up with as many solutions to a problem as possible in a short period of time no censoring of ideas.  PMI: Listing all the Pluses for a solution in one column, all the  Minuses in another, and the  Implications in a third. SKILLS NEEDED AT VARIOUS LEVELS OF MANAGEMENT  LEADER, MANAGER OR ENTREPRENEUR? The terms “entrepreneur,” “leader,” and “manager” often describe different roles in a business or organization, but they can sometimes overlap. 1.Entrepreneur: An entrepreneur is someone who initiates, designs, and starts a new business or venture. They are often seen as innovators, identifying needs, opportunities, and solutions. Entrepreneurs are willing to take financial risks to see their vision come to life. They are typically characterized by high levels of creativity, drive, and a willingness to challenge the status quo. 2.Leader: A leader is someone who influences others and inspires them to achieve goals. Leadership is more about the personal attributes and qualities one possesses. Leaders are often visionary, charismatic, and skilled in motivating and guiding others. They focus on setting direction, building an inspiring vision, and creating something new. Leadership is often about change, innovation, and personal growth. 3.Manager: A manager is someone who is responsible for controlling or administering an organization or group of staff. The role of a manager is often more operational. They are involved in planning, directing, and overseeing the work and performance of others. Managers are responsible for ensuring that organizational goals are met efficiently and effectively. They tend to be more focused on processes, systems, and structures. https://david.bozward.com/2024/02/starting-a-business-is-an-exciting-and-challenging-journey- one-that-tests-the-bounds-of-creativity-and-perseverance/ BASIC CHARACTERISTICS OF THE ENTREPRENEUR Source: Karlsson C., Friis C., Paulsson T (2004). Relating entrepreneurship to economic growth  ENTREPRENEURIAL SKILLS: Risk-Taking and Innovation: Be prepared to take calculated risks and embrace innovative ideas. Starting a business involves uncertainty, and your ability to navigate this is crucial. Vision and Opportunity Recognition: Develop a clear vision for your business and stay alert to opportunities in the market. This will guide your decisions and strategies. Resilience and Adaptability: Be ready to face challenges and adapt to changes. The entrepreneurial journey is often unpredictable, and resilience is key to overcoming obstacles.  ENTREPRENEURSHIP Starting a business is an exciting and challenging journey, one that tests the bounds of creativity and perseverance. It requires a blend of innovation, leadership, and management skills. Aspiring entrepreneurs can learn much from the wisdom of those who have navigated this path successfully. Steve Jobs, co-founder of Apple Inc., emphasized the importance of passion in entrepreneurship: “The only way to do great work is to love what you do.” This sentiment highlights the necessity of having a strong personal connection to your work. Entrepreneurship often demands long hours and overcoming significant obstacles. A deep-seated passion for your venture is what often sustains you through these challenges.  MANAGER AND LEADER Manager: Leader: plans, organizes, and has vision and inspires controls functions others to grasp that vision, within an organization. establishes corporate values, emphasizes corporate ethics, and doesn’t fear change.  LEADERSHIP SKILLS Communication and Motivation: Effective communication is crucial to articulate your vision and motivate your team. Leadership involves inspiring others and fostering a positive, productive environment. Strategic Thinking and Decision Making: Develop your ability to think strategically and make decisions that align with your long-term goals. This includes understanding market trends, customer needs, and your competition. Empathy and Team Building: Cultivate empathy to understand and support your team. Building a strong, cohesive team is vital for success.  MANAGEMENT SKILLS Planning and Organization: Develop strong planning and organizational skills. This includes setting clear goals, prioritizing tasks, and efficiently allocating resources. Financial Management: Understand financial basics, including budgeting, forecasting, and managing cash flow. Financial acumen is critical for the sustainability of your business. Problem-Solving and Process Improvement: Be skilled in problem-solving and continuously look for ways to improve processes and efficiency. This helps in maintaining operational effectiveness.