11 14 13 Chapter 7 Notes Management and Leadership The Four Functions of Management Management the process used to accomplish organizational goals through planning organizing leading and controlling people and other organizational resource 1 Planning management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives a Setting organizational goals b Developing strategies to reach those goals c Determining resources needed d Setting precise standards 2 Organizing 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 organizations goals and objectives a Allocating resources assigning tasks and establishing procedures for accomplishing goals b Preparing a structure showing lines of authority and responsibility c Recruiting selecting training and developing employees d Placing employees where they ll be most effective 3 Leading creating a vision for the organization and guiding training coaching and motivating others to work effectively to achieve the organizations goals and objectives a Guiding and motivating employees to work effectively to accomplish organizational goals and objectives b Giving assignments c Explaining routines d Clarifying policies e Providing feedback on performance 4 Controlling 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 a Measuring results against corporate objectives b Monitoring performances relative to standards c Rewarding outstanding performance d Taking corrective action when necessary Planning and Decision Making Vision an encompassing explanation of why the organization exists and where its trying to head Mission statement an outline of the fundamental purposes of an organization Addresses o The organizations self concept o Its philosophy o Long term survival needs o Customer needs o Nature of the product of service Goals the broad long term accomplishments an organization wishes to attain Objectives specific short term statements detailing how to achieve he organizations goals SWOT Analysis a planning tool used to analyze an organizations strengths weaknesses opportunities and threats 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 Strategic planning the setting of broad long range goals by top managers Tactical planning the identification of specific short range objectives by lower level managers Operational planning the setting of work standards and schedules Contingency planning backup plans in case primary plans fail Decision making choosing amount two or more alternatives Rational decision making model o Define the situation o Describe and collet needed information o Develop alternatives o Develop agreement among those involved o Decide which alternative is best o Do what is indicated o Determine whether the decision was a good one and follow up Problem solving process of solving the everyday problems that occur Problem solving is less formal than decision making and usually calls for quicker action o Brainstorming coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas o PMI listing all the Pluses for a solution in one column all the Minuses in another and the Implications in a third column Organizing Organization chart a visual device that shows relationships among people and divides the organizations 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 Conceptual skills human relation skills technical skills o CEO president and is responsible for all top level decisions Responsible for introducing change into the organization o COO responsible for putting those changes into effect o CFO responsible for obtaining funds planning budgets collecting funds o CIO or CKO responsible for getting the right information to other managers so they can make correct decisions Middle management level of management that includes general managers division managers and branch and plant managers who are responsible for tactical planning and controlling o Technical skills human relation skills conceptual skills all equal Supervisory management managers who are directly responsible for supervising workers and evaluating their daily performance o Technical skills human relation skills conceptual skills Technical skills skills that involve the ability to perform tasks in a specific discipline or department Human relation skills skills that involve communication and motivation they enable managers to work through and work with people Conceptual skills skills that involve the ability to picture the organization as a whole and the relationship among its various parts Staffing Staffing management function that includes hiring motivating and retaining the best people available to accomplish the company s objectives Leaders must Communicate a vision and rally others around that vision Establish corporate values Promote corporate ethics Embrace change Stress accountability and responsibility o Transparency the presentation of a company s facts and figures in a way that is clear and apparent to all stakeholder Leadership Styles Autocratic leaders involves making managerial decisions without consulting others Participating demographic leadership consists of managers and employees working together to make decisions Free rein leadership involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objective 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 Control process based on clear standards Without such standards the other steps are difficult if not impossible With clear standards performance measurement is relatively easy and the proper action can be taken 5 steps 1 Establishing clear performance standards This ties the planning function to the control
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