MANAGEMENT & LEADERSHIP

Activities of management

• Directing business

• Use resources – achieve goals

• Ensure buss sustainable – continue to

operate - future

• How to survive – ever changing

environment

Definition of management

Management is the process of accepting accountability for the innovative application of resources in order to achieve business goals

top management

CEO, BOD, GM

Strategic dec – planning future(long term) (policy/objectives)

Ensuring sustainable future

Look at demands stakeholders

Responsible overall

buss results + performance

Middle management

Tactical dec. – medium term (functional areas managers)

Interpret top management dec i.t.o demands each buss function.

Overall business plan implemented by each dept

Synergy (working together) between functional areas.

Lower management

Day to day decision – operational dec. (short term) (Supervisor; Foremen)

Managing operations on daily basis within boundaries of policy and procedure

of buss functions.

planning

• First function –creative + logical thinking

improve performance

• Deciding up front: 5W1H

principles of effective planning

1. Planning is a rational (realistic/

logical) process aimed at the future

• Future anticipated to identify + bridge gap –

current position + projections for future plans

• Formulate Vision, Mission, objective, policies

• Where + how obtain resources

2. Follow-funnel approach

*Buss influenced by external (Porters & Pestle

elements) + internal factors. (employees, resources)

*Be successful – environmental scanning –

circumstances change over time.

3. Plans have to be flexible

• Buss needs to adapt to internal/external

pressures.

• Flexibility limited to resources

• Assess benefits vs costs before making

changes.

4 . Planning takes place at all levels in

the business

• Top level – communicate long term direction

ensure understanding + buy-in lower levels.

• Superior (senior manager) give support

ensure plans realistic +

economical (cost-effective)

• All managers accountable

for plans + implementation

importance of planning

• Focus on objectives. Dec in line with

vision + mission. Unplanned/careless dec

– negative impact performance

• Minimise risks + uncertainty. Looking for

changes/trends – plans prevent crisis

• Entails integration of buss functions –

coordination(working

together) achieve vision

• Facilitates control – plan used

benchmark (standard) to

measure performance.

steps in planning process

Establishing objectives, Deciding the planning period, Considering alternatives, Implementing the plan, Control process

Definition of oganising

 Identify activities (jobs/tasks) undertaken +

resources to achieve goals.

 Divide amongst workers

 Work towards achieving goals.

 Allocate authority(power) to employees (legal

right of a person to command his subordinates

(junior). Flows from top to bottom.) to carry out

responsibilities.

steps involved in organising

Considering

Objectives, Identifying and grouping, Assigning of duties, Delegating

authority

Advantages of proper organising

Provides with

Communication: facilitate com between levels of man/departments

Identify workers whom authority and responsibility allocated: Workforce know who is responsible

Creates proper balance: groups activities for same man. level, eg strategic act top man

Stimulate creativity: forces people in teams to solve problems

Encourage growth: put structures in place in functional areas eg overcome challenges

Leading(activating staff)

• Planning + organising - preparation of work

• Leadership what encourages workforce to

perform .

• To implement plans + organise resources –

manager provide direction to workers.

principles of leading (Good manager will make following principles part of his approach to getting the work done.)

• Harmony of objectives: Ensure buss goals

achieved, employees feel able achieve

personal goals (win-win situation)

• Clear communication: employees

understand plan, policies, procedures,

responsibilities.

• Unity of direction: receive instructions and

report to ONE person only.

• Direct supervision: show personal interest.

• Follow up on tasks delegated – provide

support structure.

Sound leadership characteristics

1. guide ppl to implement plan

2. able to make decision if situation requires it

3. planning what has to be done now achieve future goals

4. mediator and arbitrator

5. take initiative - not afraid to get hands dirty to finish job

6. encourage others

Autocratic leadership

• Commands subordinates

• Formulates objectives, policies – without

asking for input.

 Positive elements (advantages) (when to use)

- Saves time and gets quick results in crisis.

(Emergencies – shortage time to consider other

opinions)

- Employees no doubt about chain of command – no

confusion.(order in which instructions are passed on.)

Democratic leadership

• Participative leadership style

• Joint decision making

• More involvement by workers in decision-

making – improve their ‘buy-in’ (agree)

• Advantages:

 Grow confidence + collective

performance

 Boosts morale of workplace

disadvantages:
 Long time to make decisions

 Can be used as a way for

employees to avoid responsibilit

Laissez-faire

• Free-rein Leadership (no interference)

• Leader does NOT exercise control

• Supplies information + resources achieve

goals(Workers informed WHAT achieved, not HOW)

• Effective: workers creative, competent

(expert/skilled), integrity (trustworthy).

• Disadvantage: uncertainty + confusion

employees not sure what they have to do.

components of a good control system

Suitable : Level of worker (manager or worker)

Flexible :adapt to changes

Motivate Staff: understand system + fair,

motivate them to achieve their goals

Aimed at the future: Monitor processes

identify deviations – Improve processes avoid repeating future

Economical: cost not exceed benefits

communication

• Exchange information, opinion, views, ideas

• Aim top-down communication – employees

understand what, why, how they should be

doing (avoid conflict)

co-ordination

• Dealing variety opinions, interests, attitudes

of internal + external stakeholders

• Manager coordinate variables – ensuring all

stakeholders contribute achieving same

goals.(make different people/things

work together to

fulfill desired goals

in buss)

principles of sound co-ordination

Clear Objectives (communicated ensure Common understanding- all efforts coordinated-achieving goals)

Comprehensive Policies (create uniformity- understand expectations.)

Induction (new workers, understand vision, mission, values)

Liaison (cooperation) between departments

(dependent upon one another, activities between them

coordinated)

Chain of Command (Line of authority, avoid conflict)

Delegation

• Allocate responsibility/authority to worker.

• Meaningful distribution of work

• Employee empowered to perform work/task

• Employee trained develop required skills

• Continuous monitoring- assess

effectiveness – manager

remains responsible.

Discipline(practice of making people obey rules or standards of

behaviour, and punishing them when they do not.

• Purpose – improve future behavior.

• Nature of disciplinary action depend on

seriousness of offence.

• Informal discussion for minor offence

• Verbal/written warning –

instant dismissal for serious offence.

• Employees know what is

regarded misconduct and

disciplinary action.

decision making

• To solve problems – manager make decisions

about most appropriate

course of action. (Plan

how to deal with a

situation)

• External factors

(market

& macro env)

influence decision

making. (Porters &

Pestle)

motivation

• Manager “pushes (drives)” employees

achieve their goals.

• Employees feel want to fulfil responsibility

• Performance depend on two variables:

Ability (skill) + Willingness (eager/keen)

maslows heirarchy of needs

• Every person variety needs to be satisfied.

• Needs not satisfied as starting point for

motivation

• Once unsatisfied need has been identified,

person will look what can be done to satisfy

the need.

5 types of needs

Physiological Needs: Basic needs:

Food, water, shelter, sleep.

Until these needs been met,

other needs not motivate person.

Security Needs: Feel safe. Fear of losing job

and not able meet physiological needs. (loss of

income, no money buy food, pay bond)

Social needs: Need to feel you

belong and are accepted by

group of which are part.

Esteem needs: self-respect, pride in

oneself/one’s abilities, faith in oneself, self-

confidence.

Your attitude towards yourself. (how do you

feel about yourself?) I am ‘worthy’, I am

‘competent’

Results in need for power, prestige + status

self-actualization

Desire for self-fulfillments – to become what

you are potentially. (maximize your potential,

doing the best that you are capable of doing)

Only few people reach this, unaware of “what

lies within”.

definition of entrepreneur

Ability to see opportunities

Use the FOP (resources) to take

advantage of opportunities

By starting own business venture and

manage it successfully

entrepreneurial qualities

• Passionate visionaries who believe they can do

something that no-one else have ever thought of

or succeeded in doing before them.

• Creative thinkers who challenge the conventional

ways of doing things, innovating different

aspects of traditional businesses such as

products, methods and marketing campaigns.

• Risk takers with a positive attitude, who takes a

chance by devoting their time, money and other

resources to something they believe will work.

• Good leaders, because they persuade others to buy

into their dream and help them realise it.

• Independent spirits, who like to be in control and

are internally motivated, rather than working for a

boss who tells them what to do.

• Perseverance and commitment. Will not change the

world in a day, but they work hard until they

eventually do something that significantly change

the part of the world they live in.

• Opportunists who happen to be in the right place at

the right time – people who see an opening and

takes it.

activities of an entrepreneur

Idea Generation (viable & feasible)

Market research to determine success of idea

Raising of funds: evaluate different avenues to obtain funds

Recruitment - right workforce with skills, knowledge to implement idea

Procurement of other factors of production (raw material,

equipment)

Develop plans to implement the idea. (POLC: elements of

implementing idea)

intrapreneur

 Working as employee who creates new

ideas

 Converts ideas into products/services

 Becoming more valuable as competition

becomes global.

ultrapreneur

 Identifies opportunity – establish buss. Finds highly

competent managers develop idea.

 Often sells large number shares (establish new buss)

in business as soon as buss is established

 Aim: achieve maximum return in shortest possible

time + repeat process.

sociopreneur

• uses innovate business ideas to solve

social (community) problems.

• Willing to take risks - create positive

change and communicates through

their business initiatives.

• The aim not to create a profit, to use

profits to achieve widespread social

improvements.

ecopreneur

• Looking at ways to solve environmental

problems.

• Use innovation to create environmental

products/ services and processes-

assist in solving environmental

problems.

tenderpreneur

• Develop an entrepreneurial business

based around a tender he/she would

like to apply.

• Business already exists, but operations

are adapted to meet the requirements

of the tender or tender is sub-

contracted to another business.

technopreneur

• Using technology advancements/

developments creates a business venture.

• Two types: Technology Developers and

Technology Users.

• Developer: develops new unique technology

concept that can drive a business.

• User: identifies a new technology

development, can apply

concept meet needs/

wants of customers.