Class 15. Managing Leadership

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• Lundquist Flight School mentoring program designed for first-year and transfer business students.

• Aims to enhance social, professional, and academic experience at the Lundquist College of Business and the University of Oregon.

• Encourages signing up for mentorship to build connections.

BA 101: Introduction to Business

• Introduction course for first-year students at Lundquist College of Business, University of Oregon.

Managing & Leading

Managerial Roles

• Understanding the distinction between management and leadership.

4 Functions of Management

1. Planning

2. Organizing

3. Leading

4. Controlling

Management Skills

• Managers guide, train, support, motivate, and coach employees instead of merely directing them.

• Effective communication is crucial for successful management.

Communication in Management

• Communication is a two-way exchange of understanding, unlike information giving, which is one-sided.

Definition of Management

• A process to achieve organizational goals through planning, organizing, leading, and controlling resources.

Managers' Evolving Roles

• Today's managers emphasize collaboration, team-building, and skilled communication.

• They need to be globally prepared.

Leadership vs. Management

• Entrepreneurs need to adopt a leadership role, with entrepreneurial teams addressing leadership needs.

• Leadership focuses on influencing and inspiring towards common goals, while management focuses on maintaining the status quo and controlling risk.

Characteristics of Leaders vs. Managers

• Leaders: Create visions, are change agents, take risks, and coach employees.

• Managers: Create goals, maintain the organizational status quo, and control risks.

Effective Managers and Leaders

• Critical tasks include hiring skilled employees, fostering a supportive culture, communicating values, and motivating high performance.

Functions of Management Explained

Planning

• Involves setting organizational goals, developing strategies, determining necessary resources, and setting precise standards.

Organizing

• Involves allocating resources, assigning tasks, establishing procedures, and preparing organizational structure.

Leading

• Involves guiding and motivating employees, assigning tasks, clarifying policies, and providing performance feedback.

Controlling

• Measuring results against objectives, monitoring performance, rewarding outstanding work, and making corrections as necessary.

Mission Statements

Definition and Importance

• Mission statements outline an organization's fundamental purposes, including self-concept, philosophy, long-term survival needs, customer needs, social responsibility, and nature of product/service.

Examples of Good Mission Statements

• Airbnb: "To create a world where anyone can belong anywhere."

• Patagonia: "Build the best product, cause no unnecessary harm, use business to inspire solutions to the environmental crisis."

• Warby Parker: "To inspire and impact the world with vision, purpose, and style, while also demonstrating that a business can be profitable and do good."

Goals vs. Objectives

• Goals: Broad, long-term accomplishments desired by the organization.

• Objectives: Specific, short-term statements detailing how to achieve these goals, often with target numerics and timelines.

Planning Framework

Fundamental Questions

1. What is the current situation? (SWOT analysis)

2. How to achieve the goals? (strategic, tactical, operational, and contingency planning)

SWOT Analysis Components

• Strengths: Internal capabilities that give an organization an advantage.

• Weaknesses: Internal limitations hindering performance.

• Opportunities: External factors that can be exploited for advantage.

• Threats: External challenges that can cause trouble for the organization.

Types of Planning

1. Strategic Planning: Setting broad, long-term goals by top management.

2. Tactical Planning: Short-term objectives identified by lower-level managers.

3. Operational Planning: Work standards and schedules necessary to implement tactical objectives.

4. Contingency Planning: Backup plans if primary plans fail.

Decision Making

Rational Decision-Making Model

1. Define the situation.

2. Gather and describe relevant information.

3. Develop alternatives.

4. Choose the best alternative.

5. Implement the decision.

6. Evaluate the decision's effectiveness.

Problem-Solving vs. Decision Making

• Problem-solving is less formal and quicker than decision-making.

Organizing: Levels of Management

• Top Management: CEO, VP, responsible for strategic decisions.

• Middle Management: Plant managers, division heads, implement tactical plans.

• First-Line Management: Supervisors, foremen, oversee daily operations.

Skills Needed at Different Levels

• Top Managers: Need conceptual, human relations, and some technical skills.

• Middle Managers: Require a balanced mix of all three skills.

• First-Line Managers: Primarily technical and human relations skills.

Staffing Challenges

• It is critical to hire, motivate, and retain effective employees.

• This is increasingly challenging in a competitive job market.

Leadership Characteristics

• Leaders must communicate a vision, establish corporate values, promote ethics, embrace change, and emphasize accountability.

Leadership Styles

1. Autocratic: Managerial decisions made without consulting others (e.g., Alan Mulally at Ford).

2. Participative/Democratic: Collaborative decision-making process.

3. Free-rein: Employees have the freedom to achieve objectives with little managerial oversight (e.g., Tony Hsieh at Zappos).

Empowerment in Leadership

• Encouraging employee autonomy and addressing customer needs promptly.

• Focus on enabling employees through education and tools.

Controlling Process

1. Monitor performance.

2. Establish clear standards.

3. Compare results to standards.

4. Communicate results and take corrective action if necessary.

Conclusion

• Leadership skills are teachable and can be developed over time.