Chapter 7: Management and Leadership
Knowledge Management
finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
7 D's 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 6. Do what is indicated (begin implementation) 7. Determine whether the decision was a good one, and follow up
4 Forms of Planning
1. Strategic Planning: the setting of broad, long-range goals by top managers 2. Tactical Planning: the identification of specific, short-range objectives by lower-level managers 3. Operational Planning: the setting of work standards and schedules 4. Contingency Planning: backup plans in primary plans fail
3 Skills
1. Technical 2. Human Relations Skills 3. Conceptual Skills
Planning answers the fundamental question:
1. What is the situation now? - part of the SWOT analysis 2. How can we get to our goal from here? - part of the 4 forms of planning
Leadership Styles:
1. autocratic leadership 2. participative leadership 3. free-rein leadership
Problem Solving Techniques
1. brainstorming 2. PMI
Leaders must:
1. communicate a vision and rally others around that vision 2. establish corporate values 3. promote corporate ethics: honesty and equality 4. embrace change: make the company more effective and efficient 5. stress accountability and responsibility - TRANSPARENCY
Control Process
1. establish clear standards 2. monitor and record performance 3. compare results against standards 4. communicate results and deviations to appropriate employees 5. if needed, take corrective action and provide positive feedback for good work ARE STANDARDS REALISTIC?
Participative (Democractic) Leadership
leadership style that consists of managers and employees working together to make decisions
Conceptual Skills
skills that involve the ability to picture the organization as a whole and the relationship among its various parts
Objectives
specific, short-term statements detailing how to achieve the organization's goals
Mission Statement should address:
- the organization's self concept - its philosophy - long-term survival needs - customer needs - social responsibility - nature of the product or service
Skills Needed at Various Levels of Management
TOP MANAGERS: need strong conceptual skills and rely less on technical skills FIRST- LINE MANAGERS: need strong technical skills and rely less on conceptual skills MIDDLE MANAGERS: need to have a balance between technical and conceptual skills
Planning
a management function that includes anticipating trends and determining the best strategies and tacts to achieve organizational goals and objectives - trend = planning teams
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
Staffing
a management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives
Controlling
a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
SWOT analysis
a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats - Opportunities and Threats = often external to the firm and cannot always be anticipated
Organization Chart
a visual device that shows relationships among people and divides the organization's work; it shows who reports to whom
Vision
an encompassing explanation of why the organization exists and where it's trying to head
Mission Statement
an outline of the fundamental purposes of an organization
Decision Making
choosing among two or more altneratives
Brainstorming
coming up with as many solutions to problem as possible in a short period of times with no censoring of ideas
Leadership
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
External Customers
dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
Enabling
giving workers the education and tools they need to make decision
Top Management
highest level of management, consisting of the president and other key company executives who develop strategic plans
Internal Customers
individuals and units within the firm that receive services from other individual or units
Autocratic Leadership
leadership style that involves making managerial decisions without consulting others - effective in emergencies and when absolute leadership is needed - also effective with new, unskilled workers
Free-Rein Leadership
leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives - takes warmth
PMI
listing Pluses, for a solution in one column, all the Minuses in another, and the Implications in a third column
Supervisory Management
managers who are directly responsible for supervising workers and evaluating their daily performance - first management position you are most likely to get after college
Leading
means creating a vision for the organization and communicating, guiding, training coaching and motivating others to achieve goals and objectives in a timely manner - trend = empower employees, giving them as much freedom as possible to become self-directed
CIO or CKO
responsible for getting the right information to other mangers so they can make correct decisions
CEO
responsible for introducing change into an organization
COO
responsible for putting those changes into effect - many companies are eliminating COO function because it's too costly
Rational Decision Making Model
series of steps managers often follow to make logical, magical, and well-founded decision
Human Relations Skills
skills that involve communication and motivation; they enable managers to work through and with people
Technical Skills
skills that involve the ability to perform tasks in a specific discipline or department
Directing
telling employees exactly what to do
Goals
the broad, long-term accomplishments an organization wishes to attain
Middle Management
the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
Transparency
the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders
Strategic Planning
the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals - used to increase sales
Tactical Planning
the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done - managers of managers at lower levels of the organization normally make tactical plans
Contingency Planning
the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives - due to economic and competitive environments - opportunities must fit in company's goals or else the company could lose focus
Operational Planning
the process of setting work standards and schedules necessary to implement the company's tactical objectives - department manger's tool for daily and weekly operations
Problem Solving
the process of solving he everyday problems that occur - less formal than decision making and usually calls for quicker action
Management
the process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources
Problem Solving Teams
two or more workers assigned to solve a specific problem