RSM LEC 4

What are the four key managerial functions?

Controlling, Leading, Organizing, Planning

What is Planning?

Setting performance objectives and deciding how to achieve them.  (writing syllabus, dates, weight of assignments)

What is Organizing?

Arranging tasks, people and other resources to accomplish the work?

What is Leading?

Inspiring people to work hard to achieve high performance.

What is Controlling?

Measuring performance and taking action to ensure desired results. (seeing if planning worked)

What are the kinds of planning at different management levels?

Strategic, Tactical, Operational, Contingency

What is the purpose/who is in charge of strategic planning?

Top management, big decisions - organizational objectives

What is the purpose/who is in charge of operational planning?

Supervisory management, day-to-day (assigning work days, procedures from each department)

What is the purpose/who is in charge of tactical planning?

Middle Management, Supports strategic planning and sets goal to achieve it.

What is the purpose/who is in charge of contingency planning?

Primarily top management, but all levels contribute: ongoing plans for actions and communication in an emergency.

What is leadership?

The ability to direct and inspire people to reach goals: empathy, self-awareness, objectivity (use facts) in deal with others.

What is decision making?

Process of seeing a problem or opportunity, assessing possible solutions, selecting and carrying out the best-situated plan.

What are the two types of decisions?

Programmed decision: almost formula-driven, (supplies get used up, order more supplies)

Non-programmed: requires thought, analytical, skills requires thought (buying product line, buying warehouse)

What are Katz Essential Managerial Skills?

• Technical Skills – Knowledge and ability in a specific field

• Human Skills – Ability to work well with others (communication, empathy)

• Conceptual Skills – Ability to see the big picture and make strategic decisions (THC)

What are Mintzberg’s 10 Managerial Roles?

Interpersonal Roles: how a manager, interacts with other leaders.

Informational Roles: how a manager exchanges and processes information

Decisional Roles: How a manager uses information in decision making

What is Autocratic Leadership? (adv/dis)

A leader makes decisions alone without consulting employees.
✅ Advantage: Quick decision-making
❌ Disadvantage: Team can feel disengaged, especially when leader is absent

What is Democratic Leadership? (adv/dis)

Leader involves employees in decisions and delegates tasks.
✅ Advantage: Team feels motivated and involved
❌ Disadvantage: Slower decision-making process

What is Free-Rein (Laissez-Faire) Leadership? (adv/dis)

Leader gives employees maximum freedom and minimal supervision.
✅ Advantage: Employees have autonomy to act on their ideas
❌ Disadvantage: Decisions can become inconsistent

Can leadership styles change over time?

Yes — leaders often start with one style and adapt as the team or situation evolves. (Autocratic to Democratic)

What is corporate culture?

The shared values, beliefs, and principles that shape how people feel and behave at work — like how energized you feel walking in or out of the workplace.

What is Cultural Behaviour in a company?

The actions and attitudes that are either tolerated or not tolerated within an organization.

How do managers reinforce corporate culture?

Through symbols, rituals, ceremonies, and stories that reflect the company's values.

What is Departmentalization? (adv/disadv)

Dividing work activities into specific units or teams (e.g., by geography like Walmart or customer type)

Advantage:

• Promotes specialization within departments

• Improves efficiency by grouping similar tasks

Disadvantage:

• Can lead to poor communication between departments

• Difficult to coordinate across departments

What is Delegation?

Assigning tasks to employees — a skill that requires letting go of perfectionism and adapting to different working styles.

What is Centralization? (adv/disadv)

Decision-making is controlled by one central authority, ensuring a consistent experience.

Pros: Ensures consistent decisions and brand experience, Tighter control over operations and strategy

Cons: creates bottlenecks (SLOW) if top leaders are unavailable, slower decision-making at local levels

What is Decentralization?

Leadership sets the direction but gives autonomy to local or regional teams to adapt to differences.

Adv:

• Faster decision-making at local levels

• Allows for greater flexibility and responsiveness to local needs

Disadv:

• Can lead to inconsistent practices across locations

• Harder to maintain control and alignment with corporate goals

What is a Line Organization?

A traditional structure where authority flows from top to bottom, like between a production manager and supervisor

What are Staff Relationships in an organization?

Departments like HR, accounting, or engineering that support the main line functions but don’t directly produce goods or services

What is a Committee Organization? Adv/Disadv

A structure using groups to make decisions.
✅ Advantage: Diverse perspectives and specialization
❌ Disadvantages: Slower decisions, hard accountability, and consensus over best choice

What’s an example of a Matrix structure challenge?

An employee at Kraft reporting to 3 different VPs with different goals — hard to keep all happy and align decisions.

What is a Matrix Organization?

A blend of line and staff structure where employees report to multiple managers across functions.
✅ Pros: Better coordination, global learning
❌ Cons: Slow progress, meeting overload, multiple bosses (takes one year to launch cream cheese flavour)

ex. Kraft, geographical departments

What is the 'Carrot and Stick' model?

• Carrot = reward (e.g., bonus) to motivate behavior

• Stick = short-term pressure or consequence (e.g., training or correction)

How did Alan Mulally change Ford’s culture?

He shifted leadership from a stick-based approach to a carrot-focused one, promoting transparency, accountability, and quality without punishment.

What business lesson comes from Nespresso vs. Maxwell House?

Shifting industry value — Nespresso turned low-cost home coffee into a premium, high-margin market, changing consumer expectations.

How did Kraft break internal resistance with new products?

By making employees experience the product themselves (like cappuccinos) to believe in the vision and market potential.

What is a Compelling Vision in leadership?

An inspiring, aggressive goal (e.g., sales target, trip rewards) that motivates employees and rallies them behind a shared objective.

What is Servant Leadership?

A leadership style where the leader’s main goal is to serve the needs of the team, supporting their growth and success.
📌 Example: Howard Behar (Starbucks)

What did Howard Behar prove about soft leadership?

He showed that kind, supportive leadership can still drive strong business results through a motivated and valued team.

What are WD-40’s “Learning Moments”?

Employees who share positive or negative learning moments are entered into a raffle to travel globally — encourages open learning culture.

What leadership trait did asking Marshall for coaching highlight?

📌 Persistence — asking year after year and not giving up shows that consistent effort over time is key to growth and success.

What do visionary leaders like Jobs, Musk, and Bezos have in common?

They have a clear vision, take big risks, fail fast, and keep going — all while holding incredibly high standards.

How can leadership style evolve over time or with context?

Leaders like Walt Disney and Jacinda Ardern began with democratic styles, but shifted to autocratic approaches during crises — leadership adapts to situations.

What makes Google’s corporate culture unique?

Google promotes innovation, flexibility, and employee well-being through progressive office norms — "work hard, play hard."

What happened after Kraft was acquired by 3G Capital?

3G’s extreme cost-cutting led to an initial stock surge, but long-term brand value dropped, showing that efficiency doesn’t replace innovation. Ron’s departure.