PERSONAL GOALS AND ASPIRATIONS OF TOP MANAGEMENT PRESENTED BYVILAY GUPTA
What is Management?All managers work in organizationsOrganizations collections of people who work together and coordinate their actions to achieve a wide variety of goals
ManagersManagers The people responsible for supervising the use of an organizations resources to meet its goals
What is Management?The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently
What is Management?Resources include people, skills, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees
Organizational PerformanceA measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals
Managerial TasksManagers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling
Four Functions of Management
PlanningProcess of identifying and selecting appropriate organizational goals and courses of action
Steps in the Planning ProcessDeciding which goals the organization will pursueDeciding what courses of action to adopt to attain those goalsDeciding how to allocate organizational resources
PlanningComplex, difficult activityStrategy to adopt is not always immediately clearDone under uncertainty
OrganizingTask managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals
OrganizingInvolves grouping people into departments according to the kinds of job-specific tasks they performManagers lay out lines of authority and responsibilityDecide how to coordinate organizational resources
Organizational StructureA formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals
LeadingArticulating a clear organizational vision for its members to accomplish, and energize and enable employees so that everyone understands the part they play in achieving organizational goals
LeadingLeadership involves using power, personality, and influence, persuasion, and communication skills Outcome of leadership is highly motivated and committed workforce
ControllingTask of managers is to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performanceThe outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness
Levels of Management
Levels of ManagementFirst line managers - Responsible for daily supervision of the non-managerial employees who perform many of the specific activities necessary to produce goods and services Middle managers - Supervise first-line managers. Responsible for finding the best way to organize human and other resources to achieve organizational goals
Levels of ManagementTop managers Responsible for the performance of all departments and have cross-departmental responsibility. Establish organizational goals and monitor middle managersDecide how different departments should interactUltimately responsible for the success or failure of an organization
Levels of ManagementChief executive officer (CEO) is companys most senior and important managerCentral concern is creation of a smoothly functioning top-management teamCEO, COO, Department heads
Relative Amount of Time That Managers Spend on the Four Managerial Functions
Managerial SkillsConceptual skillsThe ability to analyze and diagnose a situation and distinguish between cause and effect.Human skillsThe ability to understand, alter, lead, and control the behavior of other individuals and groups.Technical skillsJob-specific skills required to perform a particular type of work or occupation at a high level.
Skill Types Needed
RESPONSIBILITIES OF TOP MANAGEMENT1 - FULFILLS KEY ROLES
INTERPERSONAL ROLESFIGUREHEADLEADER:LIAISONINFORMATIONAL ROLESMONITOR DISSEMINATORSPOKESPERSONDECISIONAL ROLESINNOVATOR / ENTREPRENEUR (PLANNER)DISTURBANCE HANDLER (CRISIS MANAGER)RESOURCE ALLOCATOR (SLICING-THE-PIE)NEGOTIATOR (BARGAINER)
RESPONSIBILITIES OF TOP MANAGEMENT 2 PROVIDES CORPORATE LEADERSHIP
ARTICULATES A TRANSCENDENT GOAL FOR THE FIRMPROVIDES A VISION OF THE FUTURESEES THE FIRM NOT AS IT ISBUT AS IT CAN BECOME
COMMUNICATES HIGH PERFORMANCE STANDARDSSHOWS CONFIDENCE IN SUBORDINATESPROVIDES GOALS, AUTONOMY, MENTORING
PRESENTS A ROLE FOR OTHERS TO INDENTIFY WITH SETS AN EXAMPLE IN BEHAVIOR AND DRESSCOMMUNICATES VALUES CLEARLY IN WORDS & DEEDS
RESPONSIBILITIES OF TOP MANAGEMENT 3 MANAGES STRATEGIC PLANNING
INITIATES/MANAGES THE STRATEGIC PLANNING PROCESS
SEEKS INFORMATIONLONG-RANGE PLANNING STAFFDIVISIONAL (SBU) MANAGERSFUNCTIONAL AND DEPARTMENTAL MANAGERSTOP MANAGEMENT TEAM
APPROACHES TO STRATEGY FORMULATIONTHE MASTER STRATEGISTCEO personally shapes the planDepends on skills and vision of one person
DELEGATE IT TO OTHERSUses a planning staff or task forcesLack of top-down direction and leadership
COLLABORATIVE APPROACHInvolve key people --- seek group consensusCan political games and compromises be avoided?
THE CHAMPION APPROACHEncourage subordinate managers to develop their own strategiesWill a coherent, unified strategy emerge?
USING A STRATEGIC PLANNING STAFFTHE PLANNING STAFF SHOULD:Help gather and organize informationAnalyze industry and competitive conditionsAdminister annual reviews of strategyDistribute information on the firms strategic performance
THE PLANNING STAFF SHOULD NOT:Prepare strategic plans for someone else to implementUsurp the responsibilities of operating managersMake strategic decisions
POTENTIAL PROBLEMS:A planning staff cannot be held accountable for results because they have no authority to implement.Non-acceptance by managers who do not feel ownership in the strategic plan
ROLE OF THE BOARD IN STRATEGIC MANAGEMENTDETERMINE AND APPROVE THE ORGANIZATIONS MISSION AND STRATEGIC OPTIONS
EVALUATE AND INFLUENCE KEY MANAGEMENT DECISIONS AND ACTIONS
MONITOR AND EVALUATE THE ENVIRONMENT SURROUNDING THE ORGANIZATION
MONITOR AND EVALUATE THE OVERALL PERFORMANCE OF THE ORGANIZATION
BOARDS DIRECT THE AFFAIRS OF THE FIRM, BUT DO NOT MANAGE THEM
PHANTOM BOARDMay not even meet! Never knows what to do. No involvement.
RUBBER-STAMP BOARD(Ceremonial 8 %)Permits officers to make all decisionsVotes the officers recommendationsNo board agenda
MINIMAL REVIEW BOARD(Passive 21 %)Reviews issues brought to its attention by the officersMembers are notified what is on the agenda.but often come unprepared
NOMINAL PARTICIPATION BOARD(Somewhat Active 45 %)Reviews performance of selected key decisions independentlyOccasionally questions officers actions and strategiesInformal groups form within the boardBOARD INVOLVEMENT IN STRATEGIC MANAGEMENT
ACTIVE PARTICIPATION BOARD(Very Active 21 %)Has active board sub-committeesConducts its own audits Gathers information about the organization independentlyQuestions officers regularly on a wide variety of topicsMakes final strategic decisionsCATALYST BOARD(Critical Contributor 5 %)Takes a leading role in establishing and modifying the mission, objectives, and strategies of the organizationHas very active strategic planning sub-committeesOfficers do not propose or formulate strategiesbut are expected to implement them for the board
BOARD INVOLVEMENT IN STRATEGIC MANAGEMENT
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -HIGHENTREPRENEURALPARTNERSHIPINVOLVEMENTBY TOP MGMTCHAOTICMARIONETTELOW- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -LOW HIGHINVOLVEMENT BYBOARD OF DIRECTORSSTRATEGIC MANAGEMENT STYLES
BOARD COMMITTEESEXECUTIVEFINANCEAUDITNOMINATINGCOMPENSATIONSTRATEGIC PLANNINGINVESTMENTETHICS AND SOCIAL RESPONSIBILITY
BOARDSBOARD MEMBERSHIPInside MembersOutside MembersAffiliated Non-ManagementIndependentCo-determinationInterlocking Directorates
BOARD SIZEPrivate (8 members, meets 4 times/year)Public (13 members, meets 6-7 times/year)
NOMINATIONCEOBoard Committee
ELECTIONSSimultaneous vs. Staggered TermsStraight vs. Cumulative Voting
A GOOD DIRECTOR.1999 KORN/FERRY BOARD SURVEY
95 %Is willing to challenge management when necessary 67 %Has special expertise important to the company57 %Is available outside meetings to advise management41 %Has expertise on global business issues39 %Understands the firms key technologies and processes33 %Brings external contacts that are potentially valuable to the firm31 %Has detailed knowledge of the firms industry31 %Has high visibility in his or her field18 %Is accomplished at representing the firm to stakeholders
TRENDS FOR FUTURE DIRECTORS1BOARDS HELD TO HIGHER STANDARDS OF CONDUCTSociety will pay more attention---lawsuits for negligence
2DIRECTORS WILL FEEL RESPONSIBILITY FOR/TO THE CORPORATION AS A WHOLENot just to the stockholders
3GREATER ACTIVITY IN STRATEGIC PLANNING
4MORE TRAINING AND ORIENTATION OF BOARD MEMBERS TO THEIR DUTIESCertification of directors for their board responsibilities
5MORE USE OF NOMINATING COMMITTEES TO SELECT CANDIDATES FOR DIRECTOR POSITIONS
6DIRECTORS WILL BE MORE INDEPENDENT OF THE CEO
THANK YOU
**Henri Fayol outlined the four managerial functions in his book General Industrial Management*Major part of the middle managers job is developing and fine-tuning skills and know-how, such as manufacturing or marketing expertise, that allow the organization to be efficient and effective*