Intro Ch8

Management & Leadership

Management

Achieving business goals through planning, organizing, leading, and controlling. Order and stability

Leadership

Guiding and motivating people toward a shared goal. Change and encouragement.

POLC

Four management functions: Planning, Organizing, Leading, and Controlling.

Planning

Setting goals and deciding how to achieve them.

Vision

What the business wants to become in the future.

Mission statement

Why the business exists and what it does.

Values

Beliefs and principles that guide business decisions.

Goals

Results the business wants to achieve. Long-term

Objectives

Specific, measurable steps toward achieving goals. short-term

SWOT Analysis

Identifies a business's Strengths, Weaknesses, Opportunities, and Threats.

• Strengths: Positive internal factors.

• Weaknesses: Negative internal factors.

• Opportunities: Positive external factors.

• Threats: Negative external factors.

Strategic Planning

Big-picture, long-term plans.

Tactical Planning

Department plans that support strategic goals.

Operational Planning

Daily tasks, schedules, and procedures.

Contingency Planning

Backup plans for unexpected situations.

Organizing

Arranging employees, tasks, and resources to achieve goals.

Division of Labour, Departmentalization, Delegation

Division of labour - Splitting work into smaller tasks among employees.

Departmentalization - Grouping similar jobs into departments.

Delegation - Assigning tasks and responsibility to another person.

Top Management, Middle Management, Supervisory Management

Top Management - Makes major company-wide decisions and strategic plans.

Middle Management - Manages departments and puts top-level plans into action.

Supervisory Management - Directly supervises employees and daily activities.

Management Skills: Technical Skills, Human Relations Skills, Conceptual Skills

Technical Skills - Knowledge needed to perform specific tasks.

Human Relations Skills - Ability to communicate, motivate, and work with people.

Conceptual Skills - Ability to understand the big picture and how the business operates as a whole.

Leading

Guiding, communicating with, and motivating employees.

Authority, Responsibility, Accountability

Authority - The right to make decisions and give instructions.

Responsibility - The duty to complete an assigned task.

Accountability - Being answerable for decisions and results.

Vision in Leadership, Ethics, Transparency, Transformational Change

Vision in Leadership - Having a clear direction for the future.

Ethics - Doing what is honest, fair, and right.

Transparency - Being open and honest when sharing information.

Transformational Change - Making significant improvements to a business.

Effectiveness, Efficiency

Effectiveness - Achieving the desired goals.

Efficiency - Achieving goals while minimizing wasted time, money, and resources.

Leadership Styles: Autocratic Leadership, Participative Leadership (Democratic Leadership, Consensual Leadership, Consultative Leadership), Free-Rein Leadership

Autocratic Leadership - The leader makes decisions with little employee input.

Participative Leadership - Employees contribute ideas and opinions to decisions.

• Democratic Leadership: The group makes decisions through voting.

• Consensual Leadership: The group discusses until everyone reaches an agreement.

• Consultative Leadership - The leader asks for opinions but makes the final decision.

Free-Rein Leadership - Employees have freedom to decide how to complete their work.

Controlling

Checking performance, comparing results with goals, and fixing problems.

Performance Standards

Clear, measurable (with time and descriptions) targets used to evaluate performance.

Steps of controlling

1. Set: Establish goals and performance standards.

2. Measure: Check actual performance.

3. Compare: Compare actual results with the goals.

4. Correct: Fix problems when performance is below expectations.

5. Revise: Adjust future goals or plans based on results.