Understanding Canadian Business
Nickels*McHugh*McHugh*Berman*Cossa
Chapter 08
Leadership and Management

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• Chapter 8 - Leadership and Management - (pages 218-250)
  • Key terms (page 247)
  • Mary Parker Follett (1868-1933)
    • "Mother of Modern Management"
    • managers should be leaders rather than dictators
    • empowerment
    • self-management
    • cross-functional cooperation
    • conflict resolution
  • Management = the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.
  • Management Functions (planning, organizing, leading, controlling)
    1. Planning = a management function that involves anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives = setting organizational vision, setting goals, setting objectives, setting standards
       • Goals = broad, long-term
         • Mission Statement = an outline of the fundamental purposes of an organization = the foundation for setting goals and selecting and motivating employees.
       • Objectives = specific, short-term plans
         • objectives must be measurable
       • SWOT analysis
       • Types of Planning
         1. Strategic planning = broad, long-range, goals = the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
         2. Tactical planning = specific, short-term, objectives = the process of developing detailed, short-term decisions about what is to be done, who is to do it, and how it is to be done.
         3. Operational = specific timetables and standards (part of tactical planning) =  the process of setting work standards and schedules necessary to implement the tactical objectives.
         4. Contingency planning = alternative plans = the process of preparing alternative courses of action that may be used if the primary plans do not achieve the objectives of the organization
            • crisis planning = a part of contingency planning that involves reacting to sudden changes in the environment
    2. Organizing = a management function that  includes designing the structure of the organization and creating conditions and systems in which  everyone and everything work together to achieve the organization's goals and objectives.
       • Organization Chart = corporate hierarchy = a visual device that indicates who is accountable for the completion of specific work and who reports to whom = see Figure 8.3, page 227
         1. Top management = highest level of management, consisting of the president and other key company executives who develop strategic plans = CEO, COO, CFO, CIO or CKO, etc.
         2. Middle management = the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling = general managers, division managers, branch managers, plant managers, etc.
         3. Supervisory (first-line) management = managers who are directly responsible for supervising workers and evaluating their daily performance.
         4. Nonsupervisory employees = workers
       • Allocating resources
       • Assigning tasks
       • Establishing procedures
       • Staffing (recruiting, hiring, motivating, retaining)
       • Trends
         • self-managed teams = smart teams (see "empowerment")
         • stakeholder-orientation
         • restructuring (see Chapter 1)
         • managing diversity
    3. Leading = a management function that involves creating a vision for the organization and guiding, training, coaching, and motivating others to work  effectively to achieve the organization's goals and objectives.
       • Managers = plan, organize, direct, control, produce order and stability
         • managers carry out the vision (that was created by the leader)
         • directing = giving explicit instructions = giving assignments, explaining routines, clarifying policies, providing feedback on performance = opposite of empowerment
       • Leaders = vision, inspiration, values, ethics, direction, embrace and manage change, global focus
         • leadership = creating a vision for others to follow, establishing corporate values and ethics, and transforming the way the organization does business so it is more effective and efficient = vision, corporate values, corporate ethics, change
           • Like managers, leaders plan, organize, direct, and control - plan (more globally), organize (structuring, restructuring, for world markets), direct and control (vision, empowerment)
         • vision = a sense of why the organization exists and where it's heading
         • Good leaders tend to be visionary, value driven, flexible, able to identify with the goals and values of followers, good communicators, sensitive to the needs of others, and decisive when  the situation demands it.
       • Empowerment = authority + responsibility = opposite of directing = self-directed, self-motivated
         • Authority = the right to make a decision without consulting a manager
         • Responsibility = Accountability = Requirement to accept the consequences for one's actions
         • Enabling = providing the tools necessary for decision-making (work environment, tools, skills, education, knowledge-management)
           • Knowledge management = finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.
         • Self-managed teams = smart teams
           • cross-functional teams = composed of people from various departments of the firm = often self-managed
           • self-managed teams = function as independent elements of the firm with an inherent group intelligence of their own = think and act on their own and seek out any information they need = self-organizing and self-managing
       • Leadership Styles (see Figure 8.6, page 234)
         1. Autocratic leadership = leadership style the involves making managerial decisions, based on information available to the manager, without consulting others; it implies power over others.
         • Motivation comes from threats, punishment, intimidation
         • manager = the boss
         • This style is effective in emergencies and when absolute follower ship is needed (e.g. army, sports teams)
         2. Democratic (participative) leadership
         • Managers and employees work together to make decisions
         3. Laissez-faire (free-rein) leadership (subordinate-centred)
            • Managers set objectives
            • Employees relatively free do do whatever it takes to accomplish those objectives. (See "empowerment")
         4. Situational = vary the leadership style depending on the individual and the situation.
            • use the leadership style most appropriate to the situation and the employee involved
    4. Controlling = a management function that involves determining whether or not an organization is progressing toward its goals and objectives, and taking corrective action if it is not = setting standards = measuring = monitoring = evaluating
       • Steps of the Control function
         1. Establish/Set standards
            1. specific = clear
            • quantity
            • time period
            2. attainable
            3. measurable
            • stakeholder (customers, employees, others) satisfaction (internal & external)
              • stakeholders = anyone who's affected by the organization and its policies and products.  This includes employees, customers, suppliers, dealers, environmental groups, and the surrounding communities.
            • societal or environmental effects
            • profits
            • ROI
         2. Measure/Monitor and record performance (results)
         3. Compare performance (against plans and standards)
         4. Communicate results and deviations = Feedback
         5. Reward or Take corrective action (when needed)
  • Management Skills
    1. Technical skills
       • ability to perform specific tasks, give specific directions
    2. Human Relations skills
       • communication, motivation
       • delegating, coaching, training and development, help and support, morale building, motivation, ...
    3. Conceptual skills = skills that involve the ability to picture the organization as a whole and the relationship among its various parts.
       • vision, planning, organizing, coordination, delegating, controlling, systems development, problem analysis, decision-making
       • At the top of the ladder, the need is for people who are visionaries, planners, organizers, coordinators, communicators, morale builders, and motivators.
  • Seven skills to develop your management potential = leadership can be learned
  1. Decision-making skills
     • A decision-making model = the seven Ds of decision making = see Figure 8.10, page 242
     1. Define the situation
     2. Describe and collect needed information
     • the best decisions are based on sound information
     3. Develop alternatives
     4. Develop agreement among those involved
     5. Decide which alternative is best
     6. Do what is indicated (= implement the best alternative)
     7. Determine whether the decision was a good one and follow up
  2. Verbal skills
  • speaking
  • active listening = asking questions and feeding back what you've heard to let others know you're truly interested in what they say
  3. Writing skills
  4. Computer skills
  5. Human Relation skills
  • getting along with people, motivating them, inspiring them
  6. Time-management skills
  • budget your time, set priorities, delegate work, choose activities that produce the most results, do your work when you're at your best, deal with interruptions
  • Time Management Skills Tips Techniques for Small Business Entrepreneurs
  • Time Management
  7. Technical skills
     • Education (CA, BBA, MBA, etc.)
     • Foreign languages (Spanish, Italian, Japanese, Cantonese, etc.)
  • Effective Managers
  1. Action-oriented
  2. Manage change effectively
  3. Build a sense of shared values that will motivate and generate loyalty
• Resources
  • Chapter 8 - Understanding Canadian Business
  • Understanding Canadian Business