Management basics

Management basics

11 These slides are meant to highlight and complement material from the main text. Content is more fully explained in the main text. The reader can review these slides after reading the text. If there are any questions about content after reviewing the slides, then refer back to the main text for an explanation.

Susan Quinn2Worth notingManagement is a universal term applied to for-profit, not-for-profit and governmental organizations. An example of a not-for-profit organization is a charity. This organization is supposed to raise money or solicit enough funds to conduct their business, but it is not designed to make a profit. A for-profit organization is supposed to make a profit, although not all of them are successful at this.

3Managers/leaders are found at all levels and have different titlesTeam or area leaderFront-line supervisorMid-level managerDepartment headVice-PresidentPresidentChief Executive OfficerManaging DirectorDeputy Officer4Where did the day go?

5Management functionsPlanning

Organizing

Leading/Motivating

Controlling6Management SkillsConceptual

Technical

Human Relations

7Mgmt. skill - ConceptualBeing able to see accurately into the future. Big picture thinking.

The ability to plan and figure out the best direction for the organization.

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Mgmt. skill - TechnicalPossessing the necessary technical skills for the position.

This does not necessarily mean the ability to actually do the jobs of the people being supervised but rather it is the ability to understand how those jobs are done and what they entail. 9Mgmt. skill Human relationsThe ability to lead and motivate the employees supervised. Also includes the ability to deal well with ALL people others in the organization at all levels, customers, other industry professionals, etc.This means possessing good communication and conflict resolution skills as well as the ability to act with integrity and authenticity. 10Mgmt. function PlanningBenefits of organizational planning.Helps to answer these questions:Where are we going? (What is the purpose of the organization? What is NOT the purpose of the organization?) How are we going to get there? (Co-ordinates efforts so that everyone is aiming for the same goals).What is our competitive advantage?

11Mgmt. function PlanningAlso:Aids decision-making

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Strategic planning processSWOTGrand strategyMission statementAction plan13SWOTInternal analysisExternal analysisStrengthsOpportunitiesWeaknessesThreats14SWOT internal analysisWhat is good about our company (strength)? Or not so good (weakness)?Some factors to consider include:EmployeesUnionsShareholdersOrganizational cultureCompanys technology and equipmentProcesses and policies

15SWOT external analysisWhat exists outside the organization that is beneficial (opportunity) or not beneficial (threat)?Some factors to consider include:Customers and market demandSuppliersCompetitorsPressure groupsEnvironment

16SWOT external analysis (contd)Economic conditionsGovernment legislationMediaTechnological developmentsSociological and demographic conditionsTrade associationsLocal communities17Possible Grand StrategiesAs a result of the SWOT analysis and weighing the factors, the organization then decides on a strategy. Capitalize on strengths and opportunities (if possible), balancing weaknesses and threats. Choose one of the following or a combination of:GrowthStabilityRetrenchment18Mission statementsAs a result of the SWOT and grand strategy, the mission statement is a sentence (or two) that defines the company.

Clearly defines company to everyoneWording is simple and jargon-freeMay include values or principles of the organization

19Mission statement examplesGood examplesBad exampleU.K.s Marks & Spencer says: As one of the UK's leading retailers, we sell stylish, high quality, great value clothing and home products, as well as outstanding quality food, responsibly sourced from around 2,000 suppliers globally.

To provide the best quality product to our customers.

(Whats the product? Geographic area? How might they provide this? Who are the customers? Not all of these points need to be addressed.)20Action planHow is the organization going to accomplish what it has set out in the grand strategy and the mission statement? (These are the big goals).How will the different groups pull in the same direction to accomplish the goals?Who is going to do what?Flowing from the big goals, performance goals for individuals can be set. (These are the smaller goals).

21Action plan (contd)The action plan provides specifics for achieving the goals. These specifics ensure accountability and are described as smart goals. The short form is:S specificM measurableA achievable, attainableR realisticT time framed

22Action plan (contd)Example for the sales department:Increase sales by 10% by the end of Mar. 1, this year. Example for a salesperson:Increase sales to existing customers by 1% and to new customers by 2% by the end of Mar. 1, this year. 23

Action plan (contd)Example for all departments:Increase ratings in employee satisfaction survey by 5% on the next survey.

Example for a specific department:Increase rating on question 4 by 2% and on question 11 by 3% on the next survey, while maintaining other scores.

24Action plan (contd)The action plan outlines the goal to be achieved, it does not tell the employee HOW to get there. Think of taking a car drive. You tell the person that You are to go from A to B, but you leave it up to the person to figure out the best way to get there. This is the same for an individual action plan.

The employee should be supported by good guidance, training and supervision. 25Strategic planning processA good strategic planning process provides a clear road map for the organization and the employees in the organization.

26Mgmt. function - OrganizingHow are we going to best get the work done?

What kind of a structure will we need to accomplish our goals? (This explains why goal-setting comes first).27BureaucracyOne of the most common, and oldest, structures is the bureaucracy, or bureaucratic structure. This doesnt mean that it is the best structure but it is common so it may be easy to understand. 28Bureaucracy (contd)Four basic typesFunctionalProductCustomerGeographic

A large organization may have a combination of these types.

29Rules of a bureaucracyChain of command

Unity of command

Span of control30Rules of a bureaucracyChain of commandWho reports to who.

Unity of commandA person should report to one and only one boss.

Span of controlThe number of employees that the leader/manager supervises. 31Other possible structures alternatives to the bureaucracy. Group or team structure

Matrix

Project

32Mgmt. function - LeadershipLeadership is the ability to encourage, inspire and motivate others to work towards an established goal.

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Mgmt. function - LeadershipA manager is very different. A manager is a person concerned with administrative functions. Leaders and managers are not the same thing.

34Different theories of leadershipThree different styles - autocratic, democratic, and participative (participative is sometimes given the laissez-faire label) leadership styles. Theories are attributed to Tannenbaum and Schmidt and to Kurt Lewin.

Two other theories are situational and contingency styles of leadership. Attributed to Hersey and Blanchard and Fiedler. These styles propose that leaders change their leadership style depending on various factors in the environment.

35Different theories of leadership (contd)Transactional vs. transformational theories of leadership.

The transactional theory uses clear goal setting coupled with appropriate use of rewards and punishments. The transformational theory states that the leader sees the need for change, gets the appropriate people on board with the change and everyone works to bring about the change. 36MotivationMotivation is tied to successful leadership.

Managers and leaders have different ideas about how employees are motivated. Various approaches and theories can be combined by the manager/leader.

(The theories are not easily summarized please see text for fuller explanation).

37MotivationResearch indicates that good leaders are successful at creating an atmosphere where employees feel motivated to do well.

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Motivation theoriesIntrinsic and extrinsic motivation theory:

An employee who is intrinsically motivated gets satisfaction from knowing the job they did was well done.

39Motivation theoriesAn employee who is extrinsically motivated gets satisfaction from other people rewarding them (with, for instance, being given money, a promotion, a bigger office).

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Motivation theories (contd)Content theories:

Hierarchy of Needs MaslowFive levels of needs diagrammed as a pyramid.

Theory X and Theory Y McGregorOpposite views of the role of the manager and the attitudes of employee41Motivation theories (contd)Content theories (contd):

Motivation/hygiene HerzbergAlso described as satisfier/dissatisfier. A different spin on Maslows theory.

Job design theoryJob specialization, enlargement or enrichment may influence motivation. These are very different approaches!

42Motivation theories (contd)Content theories (contd):

Job characteristics modelSkill variety, task identity, task significance, autonomy, feedback built into job may increase motivation.

43Motivation theories (contd)Process theories:

EquityConcepts of internal and external equity

ExpectancySetting realistic expectations and rewardingperformance

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Mgmt. function - ControlControl process brings the organization full circle. This is the process of measuring actual performance in order to check to make sure that what was outlined and detailed in the planning process has happened. If it hasnt happened, then an examination is made to see what occurred and corrective action can be taken.

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Control (contd)If there is no difference between what was supposed to happen (from the planning process) and what actually happened (from the control process), this means that the employees achieved the plan. The first proactive step in this case is to give positive feedback to the employees!! Perhaps something like a reward, party, bonus or even just a compliment could be used. Be careful about simply increasing the goals this could de-motivate the employees. 46Control (contd)If there is a difference between what was supposed to happen (from the planning process) and what actually happened (from the control process), then a number of factors could be examined. For example:Perhaps the goal was unrealistic and needs to be adjusted. Perhaps some factors changed that made the goal unattainable. Perhaps the employee needs training to be able to achieve the goal.Perhaps the technology or equipment needs to be replaced, better maintained or updated.

47Control (contd)A good control process measures what matters. If an organizations goal for instance is to increase customer satisfaction, then this must be measured somehow. If a company wants to be the most efficient, then there would probably be a few different measurements that would have to be in place to measure their efficiency. 48Control (contd)Some tools often used in control process

Flowcharting

Critical path planning49

Control (contd)With advanced computer systems today, measuring performance and providing almost instant information and statistics is easy. Feedback can be given on performance. If adjustments/corrections/improvements in performance are needed, these can be made at an early stage when it is much easier to do. Go back to the plan and make sure everything is on course to achieve the plan. 50Is it any wonder where the day went?

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