Chapter 7: "Management and Leadership" (Planning, the first…
Chapter 7: "Management and Leadership"
Managers normally use organizational resources (workers, money, information, equipment) to achieve enterprise objectives.
Today, however, the management function has changed more to team-emphasized. They prefer team, cooperation and leadership behaviors rather than just being a boss and giving orders. Their goal is to achieve organizational goals and objectives.
Planning: key element by anticipating trends and determining the best strategies and tactics.
Leading: 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.
Organizing: creating a vision for the organization and communicating, guiding, training, coaching, and motivating others.
Controlling: Establish clear standards and measures whether what actually occurs meets the organization’s goals.
Planning, the first managerial function, is setting the organization’s vision, goals, and objectives. Planning requires the SWOT analysis which analyzes the organization’s strengths and weaknesses, and the opportunities and threats.
Vision: broad explanation of why the organization exists and where it’s trying to go. (purpose and value)
Mission statement: outlines the organization’s fundamental purposes.The organization’s self-concept, its philosophy, long-term survival needs, customer needs, social, responsibility, nature of the product or service.
Goals: broad, long-term accomplishments an organization wishes to attain.
Objectives: specific, short-term statements detailing how to achieve the organization’s goals.
There are several types of planning to reach a goal.
Strategic planning: 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: process of developing detailed, short-term statements about what is to be done, who is to do it, and how.
Operational planning: process of setting work standards and schedules necessary to implement the company’s tactical objectives.
Contingency planning: process of preparing alternative courses of action the firm can use if its primary plans don’t work out.
While planning businesses encounter decision-making which is choosing among two or more alternatives. They need to define the situation, describe and collect needed information, develop alternatives, decide which alternative is best and determine whether the decision was a good one.
If they aren’t able to follow these steps, they need problem solving which is less formal than decision making and usually calls for quicker action to resolve issues.
Managers plan a course of action and they must organize the firm to accomplish their goals. That means allocating resources.
Top management: the highest level, consists of the president and other key company executives who develop strategic plans.
Middle management: responsible for tactical planning and controlling.
Supervisory management: directly responsible for supervising workers and evaluating daily performance.
Technical skills: ability to perform tasks in a specific discipline.
Human relations: enable managers to work through and with people.
Conceptual skills: let the manager picture the organization as a whole and see the relationships among its various parts.
Leadership is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way the organization does business in order to improve its effectiveness and efficiency. A leader must empower workers and communicate their knowledge with them.
Leaders communicate a vision and rally others around that vision, establish corporate values, promote corporate ethics, embrace change and stress accountability and responsibility.
Autocratic leadership: making managerial decisions without
Participative (democratic) leadership: meeting to discuss and resolve
management issues by giving everyone some opportunity to contribute
Free-rein leadership: managers set objectives and employees are
free to do whatever is appropriate to accomplish those objectives.
The control function measures performance relative to the planned objective and standards, rewards people for work well done, and takes corrective action when necessary.
Establishing clear performance standards. This ties the planning function to the control function. Without clear standards, control is impossible.
Monitoring and recording actual performance or results.
Comparing results against plans and standards.
Communicating results and deviations to the appropriate employees.
Taking corrective action when needed and providing positive feedback for work well done.