CHAPTER 7 - MANAGEMENT & LEADERSHIP

Management

The process of accomplishing organizational goals through planning, organizing, leading, and controlling people and resources.

Four Functions of Management

Planning, Organizing, Leading, and Controlling (POLC).

Planning

Setting organizational goals and deciding how to achieve them.

Keywords: goals, future, strategy, objectives.

Organizing

Arranging resources, assigning tasks, and creating departments to accomplish goals.

Keywords: structure, delegation, departments.

Leading

Motivating, directing, and inspiring employees to achieve organizational goals.

Keywords: motivation, communication, coaching.

Controlling

Measuring performance, comparing results to goals, and taking corrective action.

Keywords: evaluate, monitor, corrective action.

Management Pyramid

Top Managers → Middle Managers → First-Line Managers.

Top Managers

Develop long-term goals and company strategy.

Examples: CEO, President, Vice President.

Middle Managers

Implement plans developed by top management and supervise first-line managers.

First-Line Managers

Directly supervise employees and oversee daily operations.

Examples: Supervisors, Shift Managers, Foremen.

Technical Skills

The ability to perform specific job-related tasks.

*Most important for first-line managers.

Human Relations Skills

The ability to communicate, motivate, and work effectively with people.

*Important for all managers.

Conceptual Skills

The ability to see the organization as a whole and think strategically.

*Most important for top managers.

Leadership

The ability to inspire and influence employees to accomplish organizational goals.

Management vs. Leadership

Management

Managers focus on planning, organizing, and controlling.

Leadership

Leaders focus on vision, inspiration, and motivation.

Autocratic Leadership

Leader makes decisions without employee input.

*Advantage: Fast decisions.

*Disadvantage: Low employee involvement.

Democratic Leadership

Employees participate in decision-making.

*Advantage: High morale and teamwork.

*Disadvantage: Slower decisions.

Free-Rein (Laissez-Faire) Leadership

Employees have significant freedom to make decisions.

*Advantage: Creativity

*Disadvantage: Less supervision

Empowerment

Giving employees the authority to make decisions without first consulting managers.

Enabling

Providing employees with the knowledge and tools needed to make good decisions.

Vision

A statement describing where the company wants to go in the future

Mission

A statement explaining why the organization exists

Decision Making

Choosing the best alternative from available options

SWOT Analysis

A planning tool used to evaluate strengths, weaknesses, opportunities, and threats

Strengths

Internal advantages of the organization

Weaknesses

Internal limitations of the organization

Opportunities

External situations that may help the organization succeed

Threats

External factors that may negatively affect the organization

Strategic Planning

Long-term planning completed by top management

Tactical Planning

Intermediate planning completed by middle managers to support strategic plans

Operational Planning

Short-term planning that focuses on daily activities.

Contingency Planning

Backup plans prepared for emergencies or unexpected events

Organizational Goals

Specific results an organization wants to achieve

Customer Satisfaction

A major measure used when evaluating organizational performance

Communication

The process of sharing information so employees understand goals and expectations

Coaching

Helping employees improve their performance through guidance and feedback

PEOPLE TO KNOW

Frederick Taylor

Father of Scientific Management

Henri Fayol

Developed the four functions of management

MEMORY TRICKS

POLC

Planning

Organizing

Leading

Controlling

Management Skills

Technical = Doing

Human = People

Conceptual = Big Picture

Leadership Styles

Autocractic = I decide

Democratic = We decide

Free-Rein = You decide

Planning Types

Strategic = Long-term

Tactical = Mid-term

Operational = Daily

Contingency = Backup Plan