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The Four Functionsof Management:
1.1. PlanningPlanning
2.2. OrganisingOrganising
3.3. LeadingLeading
4.4. ControllingControlling
MORNÉ SCHUTTE
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CraftingStrategy
to AchieveObjectives
SettingObjectives
DevelopStrategic
Vision& Mission
Implementing& Executing
Strategy
Evaluatingand
Correcting
Task 1 Task 2 Task 3 Task 4 Task 5
The Five Tasks of Strategic Management
PlanningPlanning OrganisingOrganisingLeadingLeading
ControlControl
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Management Functions
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Planning
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Planning is the process used by managers to identify and select goals and courses of action for the organisation.
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Traditional Stages of the Planning ProcessTraditional Stages of the Planning Process
Determining theDetermining theOrganization’s goalsOrganization’s goals
FormulateFormulatePlansPlans
ImplementImplementPlansPlans
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The organisational plan that results from the planning process details the goals to be attained.
The pattern of decisions managers take to reach these goals is the organisation’s strategy.
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Levels of PlanningLevels of Planning
Strategic
Tactical
Operational
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Strategic Plans
Detailed action steps mapped out to achieve strategic goals
Generally developed by senior management and usually have a time horizon of 3 - 5 years.
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Tactical Plans
More specific and concrete, aimed at supporting the implementation of strategic plans.
Time horizon of 1 - 3 years.
Outline major steps to achieve objectives, and are developed by middle management
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Operational Plans
Set out specifically what, and how, must be achieved to achieve organisational objectives.
Time horizon of no more than 1 year.
Success of strategic and operational objectives are reliant on success of operational plans.
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Strategic Planning is the process of determining the company’s objectives, the courses of action needed to achieve them and the allocation of resources to enable them to be implemented
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Mission
Vision
Objectives
Internal
Analysis
External
Analysis
Develop
Strategies
Implement
Strategies
Control
Evaluate
Strategic Planning Process
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Mission
Vision
Objectives
Internal
Analysis
External
Analysis
Develop
Strategies
Implement
Strategies
Control
Evaluate
Strategic Planning Process
Step OneStep One
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Step One
Mission, Vision & Objectives
It is necessary for the organisation to determine it’s mission, vision and objectives before it begins to make plans for it’s future.
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Mission
Vision
Objectives
Internal
Analysis
External
Analysis
Develop
Strategies
Implement
Strategies
Control
Evaluate
Step TwoStep Two
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Step Two
Internal & External Analysis
Most commonly an organisation will undertake
a SWOT analysis
SSWWOOTT
pportunties
eaknesses
threngths
hreats
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Strategic SWOT Analysis
How do we improveour weaknesses toprevent, or reduce,
our threats?
How to we use ourstrengths to prevent,
or reduce, ourthreats?
How do we improveour weaknesses totake advantage ofthe opportunities?
How do we useour strengths to
take advantage ofthe opportunities?
ThreatsThreats
OpportunitiesOpportunities
StrengthsStrengths WeaknessesWeaknesses
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Step Two
External Analysis
Often an organisation will utilise Porter’s
competitive forces analysis tool
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SubstituteSubstituteProductsProducts
SubstituteSubstituteProductsProducts
RivalryAmong
Competitors
PotentialPotentialfor Entryfor Entry
PotentialPotentialfor Entryfor Entry
SuppliersSuppliersSuppliersSuppliersConsumersConsumersConsumersConsumers
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Porters’ Five Competitive ForcesPorters’ Five Competitive Forces
1. Level of Rivalry in an industry: how intense is the current competition with competitors? Increased competition results in lower profits.
2. Potential for entry: how easy is it for new firms to enter the industry? Easy entry leads to lower prices and profits.
3. Power of Suppliers: If there are only a few suppliers of important items, supply costs rise.
4. Power of Consumers: If there are only a few, large buyers, they can bargain down prices.
5. Substitutes: More available substitutes tend to drive down prices and profits.
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Mission
Vision
Objectives
Internal
Analysis
External
Analysis
Develop
Strategies
Implement
Strategies
Control
Evaluate
Strategic Planning Process
Step ThreeStep Three
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Step Three
Identifying Strategies
Once the organisation is fully informed about it’s environment (internal, operating and macro), it can then begin to develop strategies.
Remember, a strategy is a pattern of actions employed to achieve an organisations’ objectives.
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Strategic strategyStrategic strategydevelop a plan of actiondevelop a plan of action
maximizing long-run valuemaximizing long-run value
Tactical strategyTactical strategya plan of action to take a plan of action to take
advantage of opportunitiesadvantage of opportunitiesand minimize threatsand minimize threats
Operational strategyOperational strategya plan of action improving a plan of action improving
department’s ability to department’s ability to create valuecreate value
SWOT analysisSWOT analysisidentifies strengths & identifies strengths & weaknesses inside the weaknesses inside the firm and opportunitiesfirm and opportunities
& threats in the & threats in the environment.environment.
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Mission
Vision
Objectives
Internal
Analysis
External
Analysis
Develop
Strategies
Implement
Strategies
Control
Evaluate
Strategic Planning Process
Step FourStep Four
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Step FourStep FourImplementing StrategyImplementing Strategy
Step FourStep FourImplementing StrategyImplementing Strategy
After identifying appropriate strategies, managers confront the challenge of putting those
strategies into action
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Implementing StrategyImplementing StrategyImplementing StrategyImplementing Strategy
Strategy Implementation is a five step process.
• Allocating responsibility for implantation to the appropriate
individuals or groups
• Drafting detailed action plans that specify how a strategy is to
be implemented
• Establishing a timetable for implementation that includes
precise, measurable goals linked to the attainment of the action
plan.
• Allocating appropriate resources to the responsible individuals
or groups.
• Holding Specific individuals or groups responsible for the
attainment of corporate, divisional, and functional goals.
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Mission
Vision
Objectives
Internal
Analysis
External
Analysis
Develop
Strategies
Implement
Strategies
Control
Evaluate
Strategic Planning Process
Step FiveStep Five
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Step FiveStep FiveControlControl
Controlling is not the last function of management. This is because it is the function that monitors all other functions. Only through controlling can efficiency and effectiveness be maintained.
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Four Stages of Control
Establishing StandardsMeasuring PerformanceComparing Performance
against StandardsEvaluation and Action
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Example
Federal Express Corp. has a performance goal of delivering 99 % of its packages on time. If on-time deliveries fall to 97 %, managers know that they have a problem. On the other hand, an on-time rate of 99.5 % would indicate that the company is doing better than expected.
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OrganisingOrganising
Structure within the Organisation
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LeadingLeadingoror
LeadershipLeadership
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What should a Manager be?
A Leader
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Leadership
Think of a person who you consider a leader
What traits (attributes, characteristics) can you identify as central to their leadership?
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Leadership
Drive Leadership Motivation
IntegritySelf-confidence
Knowledge of the Business
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Central to effective leadership is ………………..
INFLUENCEINFLUENCE
…….. that is, the ability to influence other people
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InfluenceInfluence
AuthorityAuthority
Control overControl overRewardsRewards
Control overControl overPunishmentsPunishments
AppealingAppealingPersonalPersonal
CharacteristicsCharacteristics
Expertise
SourcesSourcesof Powerof Power
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Legitimate Influence
Power that stems from a position’s placement in the
managerial hierarchy and the
authority vested in the position.
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Reward Influence
Power that is based on the capacity to control and provide valued rewards to others.
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Coercive Influence
Power that depends on the
ability to punish others when they do not engage in
desired behaviour.
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Expert Influence
Power that is based on the possession of expertise that is valued by others.
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Information Influence
Power that results from access to and
control over the distribution of
important information about organisational
operations and future plans.
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Referent InfluencePower that results from being admired, personally identified with, or liked by others.
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Management Styles
The type of power, and the way it is used, by a manager will be greatly influenced the the type of management style he/she chooses to use.