Welcome to Management

Think about the following quote while I take attendance what do you think this quote means?

“Management is doing things right; leadership is doing the right things.”

Peter Drucker

This does not require any verbal or non-verbal communication with anyone else in the class.

Management 6.1 & 6.2

Chapter Overview

• Examine• The roles of leaders and managers within businesses and how they differ.• The functions of management.• The qualities of a good leader and the different leadership styles that exist.• The nature of emotional intelligence and Goleman’s four competencies.

Managers

• What is a manager?• A manger is someone who gets things done. • Tend to focus on the present and short term and are responsible for

implementing decisions of others. • They manage but also follow.• Their role is to maintain things the way they are currently within the business.

Leaders

• What is a leader?• Leaders are followed.• They have a visions and a clear sense of where they are taking the business. • Willing to go against business norms. (shake things up)• They motivate others to act in particular ways. • Often brought in to make significant changes to the business.

Key terms

• Authority is the power or ability to carry through a task or action.• Leadership includes the functions of ruling, guiding and inspiring

other people within an organization in pursuit of agreed objectives.• Management is planning, organizing, directing and controlling all or

part of a business enterprise.

Management and Mangers

• What is management?• Four basic functions of management:

• Planning • Organizing• Directing• Controlling

Case Studies

• Some case studies will be discussed in class, others will not be. This does not make them less important and it will be your responsibility to ready the case studies and be prepared to answer questions about them on quizzes and tests.

Planning

• The foundation of all management and business principals. • Requires the management to evaluate where the business currently is

and where the business needs to go in the future. • Establish objectives and targets for the business• Forecast key data such as costs and revenue• Planning for departments of the business such as human resources,

marketing and finance departments. • Estimating the resources that will be needed in the future.• Contingency plans- How will you overcome an emergency? Business

failure?

Organizing

• Management must assemble the resources that they need to carry out actions that they set out in the plan.• Determine the internal organization structure and maintain

relationships and allocate resources.

Directing

• Influence and oversee the behavior of the staff in achieving the companies goals. • Motivation is the willingness to achieve a target or goal. • Communication exchange of information between one or more

people. • One of the most important aspects of management!• Always think about lines of communication within your business. Billions of

dollars are lost every year because of poor communication.

Controlling

• Setting standards using the companies objectives, and evaluating and reporting performance. • Financial reports investors can compare companies and the

government can check and make sure the business is paying taxes.• Employee performance includes productivity reports, levels of

absenteeism ect.• Social performance ethical behavior, minimizing pollution and

creating jobs.

Warm UP

Think about the following quote while I take attendance what do you think this quote means?

This does not require any verbal or non-verbal communication with anyone else in the class.

Mintzberg’s roles of management

• Henry Mitzberg is a professor that specializes in management. • He argues management is not about functions but about what

managers do. • His most famous theory is managers perform 10 roles that fall into 3

categories. • Interpersonal management• Informational management• Decisional management

Interpersonal Management

• The managerial roles in this category involve providing information and ideas.• Figureheads – As a manager, you have social, ceremonial and legal

responsibilities. You're expected to be a source of inspiration. People look up to you as a person with authority, and as a figurehead.• Leaders – This is where you provide leadership for your team, develop

junior employees; and it's where you manage the performance and responsibilities of everyone in the group.• Liaison – Managers must communicate with internal and external

contacts. You need to be able to network effectively on behalf of your organization.

Informational Management

• The managerial roles in this category involve processing information.• Monitor – In this role, you regularly seek out information related to

your organization and industry, looking for relevant changes in the environment. You also monitor your team, in terms of both their productivity, and their well-being.• Disseminator – This is where you communicate potentially useful

information to your colleagues and your team.• Spokesperson – Managers represent and speak for their organization.

In this role you're responsible for transmitting information about your organization and its goals to the people outside it.

Decisional Management

• The managerial roles in this category involve using information.• Entrepreneur – As a manager, you create and control change within the

organization. This means solving problems, generating new ideas, and implementing them.• Disturbance Handler – When an organization or team hits an unexpected

roadblock, it's the manager who must take charge. You also need to help mediate disputes within it.• Resource Allocator – You'll also need to determine where organizational resources

are best applied. This involves allocating funding, as well as assigning staff and other organizational resources.• Negotiator – You may be needed to take part in, and direct, important

negotiations within your team, department, or organization.

Mintzbergs Conclusion

• Senior managers (Mintzbergs focus) have heavy workloads.• Managers work in fragments.• 80% of results usually come from 20% of effort.

• Managers often focus on short-term immediate problems. • Verbal communication is preferred.• Managers seldom get out and about which doesn’t make them visible

to other employees. • Managers often control very little of their every day activity. Things

happen to them.

Management 6.3

The Purpose of Leadership

• Leaders provide the vision that takes a business forward.• Decide objectives for the organization. • Provide expertise and setting standards for the organization. • Determine the structure of the organization. Hierarchies and control of the

organization. • Become role models for individuals within the organization.

• Leadership is always changing. • Information technology is giving leaders much more information then before.• Resources available to implement change are sometimes a challenge.• Employees understanding can be limited and support from other managers.

Leadership Roles in Business (Directors)• Set by the shareholders of the business.• Strategic role usually.• Set and oversee the achievements of long term goals for the business. • Usually bigger companies have directors although some small private

companies do as well. • Usually experience is a very important factor to be named to the

board of directors.

Managers

• Managers carry out a range of duties. • Often these are categorized as planning, organizing, motivating and

controlling. • Have authority over junior employees and plan and monitor short-

medium term strategies for the business. • In small businesses the owner might have many functions of the

manager as well as a leader.

Supervisors

• Represent a link between managers and the business’s shop-floor workers. • They are the first line of managers at the business. • Usually are responsible for day to day operations such as staffing, and

meeting deadlines.

Worker Representatives

• Chosen by their employees or appointed by management.• Pass on information to management about employees conditions,

pay, feelings ect.• Are usually the ones consulted about workplace matters. • Similar to a captain of a football team.

Qualities of a Good Leader

• Modern leaders are always adapting to the changing business environment. • Takes into account a broader range of views from ownership and

managers. • Respond quickly and be flexible.

Management6.4

Styles of Leadership (Trait Theory)

• If you have good leadership traits you will be a good leader.• Being informed and knowledgeable.• Having the ability to think creatively and innovatively.• Possessing inner motivation and the desire to achieve. • Having the ability to act quickly and decisively. • Projecting an air of authority.

• Has decreased in popularity recently because leaders have demonstrated different traits.

Behavioral Theories

• Focuses on how a leader behaves; trying to identify the right way of leading rather than what a leader is like as a person. • Important factor for leaders is communication.

Autocratic Leadership

• The idea which assumes that information and decision-making are best kept at the top. • One-way communication (downward)• Minimal delegation or decentralization• Close supervision of employees

• Basically think North Korea and Russia• Can face difficulties:• People avoid making decisions• Senior managers often overworked• Staff turnover usually higher than industry standards.

Democratic Leadership

• Entails operating a business according to decisions agreed by the majority. • Democratic leadership encourages:

• The leader to delegate a great deal and encourages decentralization.• The leader and subordinates discuss issues and employee participation is

actively encouraged.• The leader acts upon advice, and explains the reasons for decisions. • Subordinates have greater control over their own working lives.

• Delegation means passing authority down the organizational hierarchy. This is only genuine if the manager relinquishes some control to the subordinate.

Democratic Leadership (Cont.)

• Democratic leadership is becoming more popular. • People are more likely to be motivated and productive through

democratic leadership style. • Leadership has also became more complex. Individuals more likely

will need support of experts in certain fields to help them make the best decision.

Laissez-faire Leadership

• Sometimes called mild anarchy.• Employees take major roles in the business and have little direction

from leader. (Mai Pen Rai Leadership?)• Leader does not have the skills to carry out the role successfully.• Might be successful if: • The manager or leader is among a number of equals in terms of experience

and qualifications.• The workforce is self-motivated and understands the role of managers.• The workforce understand and agrees with the organizations objectives.

• Results in highly independent employees.

Homework • Telenor and its Indian Operations Q #1-2• Garuda Indonesia plans to double fleet Q #1-2• Trina Solar appoints non-executive director Q #1-2• What to look for in a top CEO Q #1-2• Richard Branson assesses Apple’s Steve Job Q #1-2

• Page #50 short answer questions #1-6• DUE MAY 22 PERIOD 7

• Be ready to discuss the case studies and answer questions about them.

Welcome to Management

Think about the following quote while I take attendance what do you think this quote means?

“In a very real sense we have two minds, one that thinks and one that feels”

― Daniel Goleman This does not require any verbal or non-verbal communication with

anyone else in the class.

Douglas McGregor’s Theory X and Theory Y• The best leadership is usually a mix of different styles. • Douglas McGregor was an American social psychologist who

researched management within in large organizations. • His research highlighted two types of leaders. • Research revealed leaders thought their employees were motivated

solely by money and had no desire to work.

Theory X

• Theory x ('authoritarian management' style)• The average person dislikes work and will avoid it he/she can.• Therefore most people must be forced with the threat of punishment

to work towards organizational objectives.• The average person prefers to be directed; to avoid responsibility; is

relatively unambitious, and wants security (money) above all else.

Theory Y

• Theory y ('participative management' style)• Effort in work is as natural as work and play.• People will apply self-control and self-direction in the pursuit of organizational

objectives, without external control or the threat of punishment.• Commitment to objectives is a function of rewards associated with their

achievement.• People usually accept and often seek responsibility.• The capacity to use a high degree of imagination, ingenuity and creativity in

solving organizational problems is widely, not narrowly, distributed in the population.

• In industry the intellectual potential of the average person is only partly utilized.

McGregor’s Arguments

• Came to the conclusion the behavior of employees is often the result of how they are treated. • Piece-rate pay – (Theory X) is a system under which employees’ wages

are determined by the quantity of products produced. • You see this in China, India and other countries that are major manufacturing

locations. .

• Business culture – (Theory Y) is the attitudes, values and beliefs that normally exist within an organization are important. • Communication – is the exchange of information or ideas between two

or more parties. Theory Y shows an increase in communication within the business.

Management 6.5

Emotional Intelligence

• Emotional Intelligence (Daniel Goldman) is the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in out relationship. • EQ model emphasizes that there are areas of emotional intelligence

that determine how well employees will perform. • People with a high IQ are not automatically good performers in the

workplace. • However low IQ predicts low performance.

Goldman’s 18 El Competencies

• Goldman’s work evolved to produce a model of 18 personal competencies grouped into four clusters as summarized in table 6.5.

Emotional Intelligence and Business

• Leaders have to be able to motivate and inspire others, establish good relationships and manage conflicts between subordinate employees.• Research shows that exceptional leaders and managers possess a

range of emotional competencies both personal and social. • EI is increasingly becoming more important and is providing a new

way to understand and assess people’s behavior, leadership styles, attitudes, interpersonal skills and most importantly, their potential performance.

Homework • Question #7 & 8 Page #50• Data Response Questions

• Q. 1-3• Essay Question #1 Only Should be 1-2 paragraphs that’s it.

• I would like you to work in teams of 2 for the entire assignment.• 611 may NOT work with anyone from 611 you must find a partner in 612.

• DUE MAY 26 PERIOD 7• There will be a test on chapter 6 as well Period 7 May 26

• Be ready to discuss the case studies and answer questions about them.