Busn 100 Chapter 7

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Busn 100 Chapter 7

• Management and Leadership

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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

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Define Management

• The process used to accomplish goals through
• Planning
• Organizing
• Leading
• Controlling
• People
• Financial resources
• Information
• Equipment

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• 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

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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.

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Highline

• Planning
• http//www.highline.edu/pres/president/StrategicPl
  an/strategicplan2006.htm
• Organizing
• http//www.highline.edu/pres/president/organizatio
  n/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

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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

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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?

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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.

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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

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Mission Statement

• Goals and Objectives
• An outline of the fundamental purpose of an
  organization
• The organizations self-concept
• Company philosophy and goals
• Long-term survival
• Customer needs
• Social responsibility
• The nature of the companys products or services

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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.
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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
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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.
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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
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Mission Statement - Goal

• Become the dominant player in commercial
  aircraft and bring the world into the jet age"
  (1950)

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

• http//www.starbucks.com/aboutus/environment.asp
• http//www.wholefoodsmarket.com/company/declaratio
  n.php
• http//www.exxonmobil.com/Corporate/about_operatio
  ns_sbc_principles.aspx
• http//www.highline.edu/pres/president/mission.htm
  
• http//www.pccnaturalmarkets.com/member/board/poli
  cy_governance.html

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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

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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

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SWOT
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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

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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 dont want Big Box Stores
• Dollar goes down
• Natural Food Stores

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SWOT

• http//marketingteacher.com/SWOT/walmart_swot.htm
• http//www.marketingteacher.com/SWOT/yahoo_swot.ht
  m
• http//www.marketingteacher.com/SWOT/amazon_swot.h
  tm
• http//www.marketingteacher.com/SWOT/toyota_swot.h
  tm

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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

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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

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Planning Functions
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Contingency Planning

• Preparing alternative courses of action that may
  be used if the primary plans dont achieve the
  organizations objectives
• If you do not meet sales target
• More advertising
• Cut prices

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Decision Making Steps
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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?vJhjUJTw2i1M

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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

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Planning Brainstorming

• Coming up with as many solutions to a problem as
  possible in a short amount of time with no
  censoring of ideas

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Planning PMI
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Organizing

• Designing the structure of the organization and
  creating conditions and systems in which everyone
  and everything work together to achieve the
  organizations 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

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

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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

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Organizing Middle Management

• General managers
• Division Managers
• Branch and plant managers
• Deans
• Division Chairs
• Responsible for tactical planning and controlling

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Organizing Supervisory Management

• Foreman
• Production manager
• Department coordinator
• Directly responsible for supervising and
  evaluating workers

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Organizing Employees

• Workers
• Assembly line workers
• Retain Checkout clerk
• Bookkeeper
• Teacher

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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)

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Skills Needed For Managers
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Organizing Staffing

• Recruiting, hiring, motivating, and retaining the
  best people

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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

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Controlling
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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

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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

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Leading

• Creating a vision for the organization
• Guiding, training, coaching, and motivating
  others to work effectively to achieve the
  organizations 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

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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 leaders vision
• Leaders and managers must
• Lead by example

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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

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Autocratic Leadership

• Making managerial decisions without consulting
  others

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Participative Leadership

• Democratic
• Managers and employees working together to make
  decisions

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Free-rein Leadership

• Managers set objectives
• Employees are relatively free to do whatever it
  takes to accomplish those objectives

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Leading Knowledge Management

• Finding the right information
• Keeping it in a readily accessible place
• Making the information known to everyone
• Who are your customers, competitors?
• Knowledge management post the information once
  so everyone knows reduce reinventing the wheel