CHAPTER 7 MANAGEMENT AND LEADERSHIP Management the process used to accomplish organizational goals through planning organizing leading and controlling people and other organizational resources Planning a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives Organizing a management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization s goals and objectives 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 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 Vision an encompassing explanation of why the organization exists and where it s trying Mission statement an outline of the fundamental purposes of an organization it should to head address goals o The organization self concept o Its philosophy o Long term survival needs o Customer needs o Social responsibility o Nature of the product or service Goals the broad long term accomplishments an organization wishes to attain Objectives specific short term statements detailing how to achieve the organizations Planning is continuous it answers several fundamental questions o What is the situation now SWOT analysis Strengths Weaknesses Opportunities Threats o How can we get to our goal from here Four forms to answer this q strategic tactical operational and contingency 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 o Policies are broad guidelines for action o Strategies determine the best way to use resources 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 Operational planning the process of setting work standards and schedules necessary to implement the company s tactical objectives 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 Decision making choosing among two or more alternatives o Rational decision making model 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 being implementation 7 Determine whether the decision was a good one 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 o Problem solving teams are two or more workers assigned to solve a specific problem Brainstorming coming up with as many everyday problems that occur Problem solving is less formal than decision making and usually calls for quicker action PMI listing all the pluses for a solution in one column all the minuses in another and the implications in a third Organization chart a visual device that shows relationships among people and divides the organization s work it shows who reports to whom Top management highest level of management consisting of the president and other key company executives who develop strategic plans o CEO responsible for introducing change into an organization o COO responsible for putting those changes into effect tasks include structuring work controlling operations and rewarding people to ensure that everyone strives to carry out the leader s envisions o CFO responsible for obtaining funds planning budgets collecting funds and so o CIO CKO responsible for getting the right information to other managers so they on can make correct decisions Middle management the level of management that includes general managers division managers and branch and plant managers whoa responsible for tactical planning and controlling Supervisory management managers who are directly responsible for supervising workers and evaluating their daily performance Managers must have three categories of skills 1 Technical skills skills that involved the ability to perform tasks in a specific discipline or department 2 Human relations skills skills that involve communication and motivation they enable managers to work through and with people 3 Conceptual skills skills that involve ability to picture the organization as a whole and the relationship among its various parts Staffing a management function that includes hiring motivating and retaining the best people available to accomplish the company s objectives Leaders must o Communicate a vision and rally others around that visions o Establish corporate values o Promote corporate ethics o Embrace change o Stress accountability and responsibility Transparency is the presentation of a company s facts and figures in a way that is clear Autocratic leadership leadership style that involves making managerial decisions and apparent to all stakeholders without consulting others Participative democratic leadership leadership style that consists of managers and employees working together to make decisions Free rein leadership leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives Empowerment means giving employees the authority to make a decision without consulting the manager Enabling giving workers the education and tools they need to make decisions Knowledge management finding the right information keeping the information in a readily accessible place and making the information known to everyone in the firm The control process is based on clear standards W o such standards the other steps are difficult if not impossible 1 Establish clear standards 2 Monitor and record performance 3 Compare results against standards 4 Communicate results 5 If needed take corrective action External customers dealers who buy products to sell to others and ultimate customers or end users who buy products for their own personal use Internal customers individuals and units within the firm that receive services from other individuals or units
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