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