Busn 100 Chapter 7

1. Busn 100 Chapter 7 Management and Leadership

2. Goals • Management of a Company • Four Functions Of Management • Planning • Strategies & Goals & Objectives &Tactics • SWOT • Organizing • Leading • Differences Between Leaders And Managers • Leadership Styles • Controlling

3. Define: Management • The process used to accomplish goals through • Planning • Organizing • Leading • Controlling: • People • Financial resources • Information • Equipment

4. Management Old • Called Bosses • Telling people what to do • Watching over people • Punishing people if they did not obey • Act sternly • Management New • Guide • Train • Support • Motivate • Coach • Build Teams • Treat employees like partners rather than unruly workers

5. Four Functions Of Management • Planning • Strategies/Goals/Objectives (Big picture) • Tactics (Small picture) • Organizing • Create a structure for firm and deploy resources, so that the whole team can achieve the Goals • Leading • Create a vision for the firm that inspires and motivates so that the whole team can achieve the Goals • Controlling • Create the standards to measure whether the Team is achieving the Goals and then make corrections when the Goals are not met and give rewards when the Goals are met.

6. Highline • Planning • http://www.highline.edu/pres/president/StrategicPlan/strategicplan2006.htm • Organizing • http://www.highline.edu/pres/president/organization/orgchrt.htm • Leadership • Jack Bermingham, Jeff Wagnitz, Alice Madsen, Joy Smucker, Jeffrey Ward • Controlling: • Joy Smucker & Jeffrey Ward visit teachers classes and write reports • Alice Madsen creates a 5-year plan for teachers • This information is passed up to the Vice President, President and the B of T

7. Planning • Strategic Planning • Set long term goals & objectives • Goals • Broad statement of purpose and destination of company (listed in Mission Statement) • Objectives • Specifics of how to achieve goals (usually listed in Mission Statement) • Tactical Planning • Specifics of how to achieve objectives and goals

8. Strategic Planning • Determining the major goals of the organization and the policies for obtaining and using the resources to achieve those goals • Position in the market • What customers to serve? • What products to sell? • Where to sell in the world?

9. Goals • The broad, long-term accomplishments an organizations wishes to attain • Mutually agreed upon by employees and managers • Goals are listed in the Mission Statement • Example: Sell X product to Y customers in USA market.

10. Objectives • Specific, short-term statements detailing how to achieve the organizational goals • Mutually agreed upon by employees and managers • Goals are usually listed in the Mission Statement

11. Mission Statement • Goals and Objectives • An outline of the fundamental purpose of an organization • The organization’s self-concept • Company philosophy and goals • Long-term survival • Customer needs • Social responsibility • The nature of the company’s products or services

12. Mission Statement - Goal We deliver innovative education and training opportunities to foster your personal and professional success in our multicultural world and global economy. We help you build a better future.

13. Mission Statement - Goal “To provide any customer a means of moving people and things up, down, and sideways over short distances, with higher reliability than any similar enterprise in the world.” Elevator

14. Mission Statement - Goal “To offer food prepared in the same high-quality manner world-wide, tasty, reasonably priced, and delivered in a consistent, low-key and friendly atmosphere.”

15. Mission Statement - Goal “To offer all of the fine customers in our territories all of their household needs in a manner in which they continue to think of us fondly.” “Become a $125 billion company by the year 2000”

16. Mission Statement - Goal • “Become the dominant player in commercial aircraft and bring the world into the jet age" (1950)

17. Mission Statement - Goal “To be the number one sports and fitness company in the world." Nike

18. Planning: Mission Statements • http://www.starbucks.com/aboutus/environment.asp • http://www.wholefoodsmarket.com/company/declaration.php • http://www.exxonmobil.com/Corporate/about_operations_sbc_principles.aspx • http://www.highline.edu/pres/president/mission.htm • http://www.pccnaturalmarkets.com/member/board/policy_governance.html

19. Tactics • Developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done • Setting annual budgets • Research or advertise or marketing • Managers below the top level

20. Wholefoods • Goal: • Whole Foods Market aims to create a complete stakeholder team that sets the standards of excellence for quality food retailers • Objectives • Sell the Highest Quality Natural & Organic Products • Satisfying and Delighting Our Customers • Supporting Team Member Happiness and Excellence • Creating Wealth Through Profits & Growth • Caring about our Communities & Our Environment • Creating ongoing win-win partnerships with our suppliers • Strategies (position in Market) • Best Quality Food • Employees and managers are on same team instead of two opposing teams • Gain enough scale to bring costs down (quality food is not cheap) • Tactics • Met with law makers who are creating laws that define the term organic • Visit a particular farm to inspect farming techniques • Contracting with farms in China to grow walnuts • Do not allow unions so that managers and employees can be on one team • Managers are not allowed to make more than 19-times the average pay

21. SWOT

22. SWOT: Boeing Internal External • Strength • Biggest • Access to educated engineers • Weakness • Biggest • Union Strike are common • Opportunities • Emerging markets need planes • If the dollar goes down • Threats • Air Bus • Global recession

23. SWOT: Wal-Mart Internal External • Strength • Best logistical system • Biggest • Outsourcing • Inexpensive Stuff • Weakness • Image that workers are not treated fairly • “Cheap Crap” • Biggest • Outsourcing • Opportunities • Emerging markets • Recessions • If the dollar goes up • Threats • Target • Communities that don’t want Big Box Stores • Dollar goes down • Natural Food Stores

24. SWOT • http://marketingteacher.com/SWOT/walmart_swot.htm • http://www.marketingteacher.com/SWOT/yahoo_swot.htm • http://www.marketingteacher.com/SWOT/amazon_swot.htm • http://www.marketingteacher.com/SWOT/toyota_swot.htm

25. SWOT: Internal: • Strengths • Core competencies in key areas • An acknowledged market leader • Well-conceived functional area strategies • Proven management • Cost advantages • Better advertising • Weaknesses • No clear strategic direction • Obsolete facilities • Subpar profitability • Lack of managerial depth and talent • Weak market image • Too narrow product line

26. SWOT: External: • Opportunities • Ability to serve additional customer groups • Expand product lines • Ability to transfer skills/technology to new products • Falling trade barriers in attractive foreign markets • Complacency among rival firms • Ability to grow due to increases in market demand • Threats • Entry of lower-cost foreign competitors • Rising sales of substitute products • Slower market growth • Costly regulatory requirements • Vulnerability to recession and business cycles • Changing buyer needs and tastes

27. Planning Functions

28. Contingency Planning • Preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives • If you do not meet sales target: • More advertising • Cut prices

29. Decision Making: Steps

30. Planning: Rational Decision Making • Choosing between two or more alternatives • 7 Ds: • Define the situation • Describe and collect needed information • Develop alternatives • Develop agreement among those involved • Decide which alternative is best • Do what is indicated (begin implementation) • Determine whether the decision was a good one and follow up http://www.youtube.com/watch?v=JhjUJTw2i1M

31. Planning: 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

32. Planning: Brainstorming • Coming up with as many solutions to a problem as possible in a short amount of time with no censoring of ideas

33. Planning: PMI

34. Organizing • 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 • Please the customer and adapt to changing customer needs • Allocating resources, assigning tasks, and establishing procedures for accomplishing goals • Preparing a structure (organizational chart) showing lines of authority and responsibility • Recruiting, selecting, training, and developing employees • Placing employees where they are most effective

35. Structure Of The Organization President, Vice Pres. Division Heads, Plant Mgrs. Foreman, Dept Heads Employees

36. Organizing : Top Management • Highest level of management who develop strategic plans • Chief Executive Officer (CEO) • Often the president • Responsible for all top level decisions • Responsible for introducing change into the firm • Chief Operating Officer (COO) • Responsible for executing change • Structural work • Controlling operations • Rewarding people for achieving goals

37. Organizing : Top Management • Chief Financial Officer (CFO) • Planning budgets • Obtaining resources through debt or equity • Accounting • Chief Information Officer (CIO) or Chief Knowledge Officer (CKO) • Getting useful information that can help the firm meet its goals and objectives

38. Organizing : Middle Management • General managers • Division Managers • Branch and plant managers • Deans • Division Chairs • Responsible for tactical planning and controlling

39. Organizing : Supervisory Management • Foreman • Production manager • Department coordinator • Directly responsible for supervising and evaluating workers

40. Organizing : Employees • Workers: • Assembly line workers • Retain Checkout clerk • Bookkeeper • Teacher

41. Organizing : Skills • Technical Skills • Perform tasks in a specific department or discipline (Accounting, Selling, Manufacturing, Servicing) • Human Relations Skills • Inspiration, motivation, communication, delegating, training, support • Conceptual Skills • Ability to picture the organization as a whole and the relationship amongst the various parts (planning, organizing, controlling, system developing, problem analysis, decision making, coordinating, delegating)

42. Skills Needed For Managers

43. Organizing : Staffing • Recruiting, hiring, motivating, and retaining the best people

44. Controlling • 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 • Measuring results against corporate objectives • Monitoring performance relative to standards • Rewarding outstanding performance • Taking corrective action when necessary

45. Controlling

46. When Setting Standards • Be specific and set a time frame • Not so good: • Improve sales • Good: • Raise sales from 100,000 on January 1, 2010 to 125,000 on Jan 1 2011

47. Measuring Customer Satisfaction • External Customers • End users and dealers • Internal Customers • Example: Top managers use accounting information from the accounting department • Have I delighted all the stakeholders? • Customers • Employees • Stockholders • Community leaders • Others

48. Leading • Creating a vision for the organization • Guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives • Empowering and giving freedom to employees to become self-directed and self-motivated • Giving assignments • Training • Explaining routines • Clarifying policies • Provide feedback on performance

49. Differences Between Leaders &Managers • Leader • Embrace and manage change • Create vision, values, ethics and motivate others to follow and motivate themselves to follow • Manager • Strive to produce order and stability • Carry out leader’s vision • Leaders and managers must: • Lead by example

50. Leadership Styles • Autocratic • Making decisions without consulting others • Participative (Democratic) • Managers and employees working together to make decisions • Free-rein • Managers set objectives • Employees are relatively free to do whatever it takes to meet those objectives