MANAGEMENT AND LEADERSHIP

GOAL OF ANY BUSINESS/ORGANIZATION

Fulfill a need or want Make a profit/raise funds

In order to do so, a business/organization must be as efficient as possible at their function.

Leadership and Management

MANAGERS’ ROLES ARE EVOLVING Every business has scarce resources, and

management is about deciding how to effectively use the resources.

Managers are educated to:GuideTrainSupportMotivate andCoach employees

MANAGERS’ ROLES ARE EVOLVING Most modern managers emphasize

Many companies don’t hesitate to lay off employees, and employees don’t hesitate to leave if their needs are not being met.

Teamwork and Cooperationvs

Discipline and Giving Orders

CHANGING ROLE- DON’T WRITE THIS

Before: Managers told employees what to do. Now: Managers

Guide, train, support, motivate and coach

foster teamwork and co-operation Treat employees as partners Team leadership

Why is this a better way? Or is it?

MANAGEMENTThe process used to accomplish organizational goals through: Planning Organizing Leading and Controlling people and resources.

FUNCTIONS OF MANAGEMENTWHAT MANAGERS DO?Planning

• Setting organizational goals

• Developing strategies to reach goals

• Determine resources needed

• Setting standards

Organizing

• Allocating resources, assigning tasks and establishing procedures for accomplishing goals

• Preparing an organizational chart

• Recruiting, selecting, training, and developing employees

• Placing employees where they’ll be most effective

Leading

• Guiding and motivating employees to work effectively to accomplish organizational goals and objectives

• Giving assignments

• Explaining routines

• Clarifying policies

• Providing feedback on performance

Controlling

• Measuring results against corporate objectives

• Monitoring performance relative to standards

• Rewarding outstanding performance

• Taking corrective action when necessary

What are some areas in the school where management functions come into play?

ASSIGNMENT

Business leaders and the functions of managment

PLANNING

FORMS OF PLANNING

Strategic Planning

The setting of broad,

long-range goals by top managers

Tactical Planning

The identification of specific, short-range

objectives by lower

managers

Operational Planning

The setting of work

standards and

schedules

Contingency Planning

Backup plans in case primary plans fail

CRISIS PLANNING Crisis Planning is part of

contingency planning.

It involves reacting to sudden changes in the environment.

What is the difference between a manager being proactive vs reactive?

HIERARCHY OF PLANNING

6-14

Purpose

Mission Statement

Strategic Plans Strategic Plans

Tactical Plans

Tactical Plans

Tactical Plans

Tactical Plans

OperationalPlans

OperationalPlans

OperationalPlans

OperationalPlans

OperationalPlans

OperationalPlans

TASKS & SKILLS AT DIFFERENT LEVELSOF MANAGEMENT

1. Technical skills involve the ability to perform tasks in specific discipline (such as selling a product or developing software) or department (such as marketing or information systems).

2. Human relations skills involve communication and motivation; they enable managers to work through and with people. Such skills also include those associated with leadership, coaching, morale building, delegating, training and development, and help and supportiveness.

3. Conceptual skills involve the ability to picture the organization as a whole and the relationships among its various parts. Conceptual skills are needed in planning, organizing, controlling, systems development, problem analysis, decision making, coordinating, and delegating.

FOUR FUNCTIONS OF MANAGEMENT ASSIGNMENT

PLANNING - CREATING A VISION FOR THE ORGANIZATION

Mission statement – the fundamental reason for being

Goals – what we want to attain. Long –term achievements of the organization

Objectives – specifying how to achieve the goals. Short –term plans

SWOT analysis- organization’s strengths, weaknesses, opportunities and threats.

LEGO MISSION STATEMENT‘INSPIRE AND DEVELOP THE BUILDERS OF TOMORROW’

Our ultimate purpose is to inspire and develop children to think creatively, reason systematically and release their potential to shape their own future - experiencing the endless human possibility.

LEGO VISION STATEMENT‘INVENTING THE FUTURE OF PLAY’

We want to pioneer new ways of playing, play materials and the business models of play - leveraging globalisation and digitalisation...it is not just about products, it is about realising the human possibility.

ASSIGNMENT

Identify a personal goal and build a set of objectives to reach the goal.

PLANNING ASSIGNMENT

SWOT ANALYSISA planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats.

SWOT

Strengths and Weaknesses – internal

Threats and Opportunities- external

SWOT ANALYSIS Strengths

What is their strongest business asset? What do they offer that makes them stand out

from the rest? What unique resources do they have? Do they have any specific marketing expertise? Do they have a broad customer base?

SWOT ANALYSIS Weaknesses

What can be improved? In what areas do their competitors have the

edge? What necessary expertise / manpower do they

currently lack? Do they have cash flow problems? Are they relying primarily on just a few clients

or customers?

SWOT ANALYSIS Opportunities

What trends do you see in their industry? What trends might impact their industry? What external changes present interesting

opportunities? What have you seen in the news recently that

might present an opportunity for them?

SWOT ANALYSISThreats

What obstacles do they face? What is the competition doing that

they are not?What challenges can be turned into

opportunities? Are external economic forces

affecting their bottom line?

LOCAL BUSINESS-CHOOSE TWO OF THE FOLLOWING BUSINESSES AND DO A SWOT ANALYSIS

Chez Wes Berts Al’s Pizza McDonald’s T-Bar

Tim Horton’s Intersport Pizza Delight Subway Quiznos

ORGANIZING

HOW DO MANAGERS ORGANIZE WITHIN A BUSINESS?

Organizing means allocating resources

Funds/money Assigning tasks Establishing procedures

Managers use the financial, human and knowledge resources to create a unified system.

ORGANIZING TO CONTROL

Hierarchy – A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

Chain of command – the line of authority that moves from the top of a hierarchy to the lowest level.

ISSUES INVOLVED IN STRUCTURING ORGANIZATIONS

Centralization versus decentralization Span of control Tall versus flat organization Departmentalization

DEPARTMENTALIZATION

The dividing of organizational functions into separate units.

Ways to departmentalize: By product – textbooks and technical books By function- marketing and human resources By customer group-consumers, commercial users By geographical location By process- cutters and dyers

CENTRALIZATION VERSUS DECENTRALIZATION

Centralized – maintaining decision – making authority at the top level of management.

Delegating decision – making authority to lower level managers who are more familiar with local conditions.

Which is better?

ORGANIZING: CREATING A UNIFIED SYSTEM Organizational Chart

A visual device that shows the relationship and divides the organization’s work; it shows who is accountable for the completion of specific work and who reports to whom.

President

Middle Manager A

(Operations)

First-lineManagement

Employee 1

Employee 2

Middle Manager B

(Human Resources)

First-lineManagement

Employee 1

Employee 2

Middle Manager C(Marketing)

First-lineManagement

Employee 1

Employee 2

LEVELS OF MANAGEMENT

TopManagement

PresidentVice-Presidents

Premier, Chancellor, Mayor

Middle ManagementPlant managers, Division

heads,Branch managers and Deans

Supervisory (First-Line)Management

Supervisors, Forepersons,Department heads and Section leaders

NonsupervisoryEmployees

TASKS & SKILLS AT DIFFERENT LEVELSOF MANAGEMENT\ REVIEW , DON’T WRITE THIS

1. Technical skills involve the ability to perform tasks in specific discipline (such as selling a product or developing software) or department (such as marketing or information systems).

2. Human relations skills involve communication and motivation; they enable managers to work through and with people. Such skills also include those associated with leadership, coaching, morale building, delegating, training and development, and help and supportiveness.

3. Conceptual skills involve the ability to picture the organization as a whole and the relationships among its various parts. Conceptual skills are needed in planning, organizing, controlling, systems development, problem analysis, decision making, coordinating, and delegating.

DECISION MAKING:FINDING THE BEST ALTERNATIVE

Define the situation

Describe and collect needed

information

Develop alternatives

Develop agreement

among those involved

Decide which alternative is

best

Do what is indicated

Determine whether the

decision was a good one and

follow up

HUMAN RESOURCES

HUMAN RESOURCES

Human resources are the people that work for an organization

Employees are the ultimate resource in business!

Human Resource Management are the leaders and are concerned with how these people are managed.

THE HUMAN RESOURCE FUNCTION

Meet the Organization Objectives

Provide the right

Incentives and Job

Environment

Find Staff

Evaluating HR Needs

STAFFING: GETTING AND KEEPING THE RIGHT PEOPLE

Staffing is a management function that includes hiring, motivating, and retaining the best people available to accomplish the company’s objectives.

Many people are not willing to work at companies unless they are treated well and get fair pay.

HUMAN RESOURCE MANAGEMENT (HRM)

Part of the strategic process

Determining human

resource needs

Recruiting

Selecting

Developing

Motivating

FORECAST HR NEEDS

Prepare HR

Inventory

Prepare Job

Description

Assess Future

HR Demand

Assess Future Supply

Establish a

Strategic Plan

RECRUITING EMPLOYEES Selection of employees is the process of

gathering information to decide who should be hired in the best interest of the organization.

The six steps in the process of selecting employees include:

1. Completion of the application form2. Initial and follow-up interviews3. Employment test4. Background investigations5. Physical examinations6. Probation periods

HOW COMPANIES SELECT EMPLOYEES

THINGS LISTED ON A JOB DESCRIPTION:

1) Essential job functions2) Knowledge and critical skills3) Physical demands4) Environmental factors5) Any information that may be

necessary to clarify job duties or responsibilities

SAMPLE:Title: ReceptionistDuties and responsibilities:Receives and directs phone calls, greetsvisitors, receives and sorts mail andpackages, orders office and kitchen supplies, key documents when requiredQualifications: High school graduate. Needs good communication skills and ability to get along with people. Keying speed of 45 wordsper minute. Experience desirable but not necessary.Salary: $20,000- $25,000, depending on experience

THE SELECTION PROCESSCommon Employment Tests

Aptitude TestMeasures capacity to learn a particular subject or skill

Psychomotor TestMeasures strength, dexterity, and coordination

Job Knowledge TestMeasures knowledge related to a particular job

Proficiency TestMeasures performance on a sample of the work required in the job

Interest TestCategorizes applicant’s interests relative to the job

Psychological TestAttempts to define personality traits

Polygraph TestRecords changes in physical response as a person responds to questions to determine whether responses are truthful

LEGAL CONSIDERATIONS IN SELECTION

The Wrong Questions

Due to federal law, certain questions cannot be asked of job candidates.

Questions to avoid when interviewing candidates include:

1. Age (may ask if they are older than a certain age if it is a requirement to of the job [i.e.-school bus driver, forklift operator]

2. Date of birth

3. Religion or church affiliation

4. Father's surname or mother's maiden name

5. Marital status

6. What languages they speak (unless it is a job requirement)

7. How many children they have, their children's ages and who will care for the children while applicant is working

8. Financial information not related to compensation

9. If they served in the military of any foreign country 10. If they have ever been arrested? (may ask if they have been

convicted of a felony/misdemeanor)

PAY SYSTEMS

Salary (weekly, monthly or annual)

Hourly Wages

Piecework= # of items x rate/unit

Commission% of sales

Bonuses Profit Sharing

ASSIGNMENT In teams of 2

• Develop 10 interview questions Find 1 local job ad for high school students on one or a combination of the websites below:

http://www.jobbank.gc.ca/home-eng.do?lang=eng

Workopolis – www.workopolis.com

Monster – www.monster.ca

Kijiji – www.monctonkijiji.ca

• Handwrite answers

JOB FAIR ASSIGNMENT

TRAINING AND DEVELOPMENT

When Human Resource Managers find the right employees they have the responsibility to: Assess the company’s needs and the employees

skills Design training activities to meet corporate and

employee needs Evaluate the effectiveness of all training

activities

MOTIVATION

Intrinsic reward – the good feeling you have when you have done a job well.

Extrinsic reward – something given to you by someone else as recognition for good work; extrinsic rewards include pay increases, praise, and promotions.

Article: Fredrick Taylor and Elton Mayo

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INTRINSIC VS. EXTRINSIC REWARDS

Intrinsic = InsideFeeling of Job Well

Done Pride

Sense of Achieveme

nt

Extrinsic = Outside

Praise

Salary Increase

Status

Recognition

Promotions

Gifts

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MASLOW’S HIERARCHY OF NEEDS

Physiological Needs

Safety Needs

Social Needs

Esteem Needs

Self-

Actualization

Unsatisfied

Satisfied

MOTIVATION & MASLOW’S HIERARCHY OF NEEDS

Esteem Needs Recognition and knowledge from others,

as well as self-respect and a sense of status or importance

Social Needs Feel loved, accepted, and part of a groupSafety Needs Feel secure at work and at homePhysiological Needs Basic survival needs, such as food, water,

and shelter.

THE IMPORTANCE OF MOTIVATION

Happy Workers

Happy Customer

s

Successful Business

MOTIVATION ASSIGNMENT

Motivating others

COMPENSATION Objectives include:

1. Attracting qualified workers2. Providing productivity incentives3. Keeping valued employees4. Maintaining a competitive edge by increasing

productivity5. Protecting employees from unexpected layoffs,

sickness and disability

PAY SYSTEMS:

1. Straight salary: weekly, monthly or annual amount2. Hourly wages3. Piecework: # of items produced times agreed

upon rate/unit4. Commission: % of sales5. Bonuses6. Profit sharing: additional compensation based on

company profits

FLEXIBLE SCHEDULES

Job sharing: arrangement whereby two part-time employees share one full-time job

Flextime plans: work schedules that give employees some freedom to adjust when they work, within limits, as long as they work the required number of hours

Compressed workweek: a work schedule made up of four 10-hour days

Working at home

PERFORMANCE APPRAISAL:SIX STEPS

Establish Performance Standards

Communicate Standards

Evaluate Performance

Discuss Results

Take Corrective

Action

Use Results to Make

Decisions

OUTSOURCING

Businesses/organizations outsource or hire other businesses to do certain functions such as distribution.

An efficient distribution channel will lead to faster delivery to the customer.

How do you think the employees of a business feel about outsourcing?

Marriotti: E

ntrepreneurshipLAWS AND TAXES AFFECTING EMPLOYEES Payroll Taxes: If you hire employees, you must

deduct payroll tax from their earnings and contribute it to Social Security.

Fair Labor Standards Act: Requires employers to pay minimum wage and not hire anyone under 16-years-old full-time.

Equal Pay Act of 1963: Requires employers to pay men and women the same amount for the same work.

Antidiscrimination Laws: Protect employees from discrimination due to age, race, religion, national origin, color, gender, physical disabilty.

Marriotti: E

ntrepreneurshipFIRING AND LAYING OFF EMPLOYEES You cannot fire someone just because you

don’t like him/her.

Unsupported firing exposes your company to wrongful termination lawsuits.

Conduct regular employee performance reviews so you have proof of poor performance.

If employee violates rules, inform him/her in writing and keep copy for your records.

UNIONS

WHY EMPLOYEES JOIN UNIONS?

Pro-union attitudesPoor management/ employee relationsNegative organizational climatePoor work conditionsUnion’s reputationJob security

WHY EMPLOYEES DON’T JOIN UNIONS

Anti-union attitudeGood management/labour relationsPositive organizational climateGood work conditionsUnion’s reputationPeer pressure

WHAT ARE LABOUR UNIONS?

An employee organization that has the main goal of representing members in employee – management bargaining over job related areas.

COLLECTIVE BARGAINING

Collective bargaining is the process by which a union represents employees in relations with their employer.

TYPICAL TERMS OF A COLLECTIVE AGREEMENT Higher rate of pay Working conditions Overtime Grievances Contractual Conditions Fringe Benefits

Medical, dental, maternity, paternity, paid vacations, sick leaves, coffee breaks, retirement funds

Political Lobbying

Copyright 2003 McGraw-Hill Ryerson Limited

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TACTICS USED BY LABOUR ANDMANAGEMENT TO RESOLVE CONFLICTS

Labour weapons

Management weapons

Strikes

Boycotts

Picketing

Work slowdowns

Injunctions

Strikebreakers

Lockouts

Bankruptcy

ESSENTIAL SERVICES Governments have determined that some

services, referred to as essential services, are too important to be allowed to go on strike. Police, Fire, Ambulance, Medical facilities

Work to Rule - Employees strictly adhere to working hours, and

refrain from performing any voluntary extra duties that often associated with their jobs. NB Teachers in 2005 – work to rule campaign

Work Slowdown – Decreased production and efficiency

Is this fair to employees?

UNIONS PROJECT

CITY OF TORONTO HANDOUT

LEADING – MANAGEMENT STYLES

LEADERSHIP STYLESTerm Definition

Autocratic Leadership

Involves making managerial decisions without consulting others.

Participative (democratic) leadership

Consists of managers and employees working together to make decisions.

Free-rein (laissez-faire) leadership

Involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

HANDOUT

Leadership styles

CONTROLLING

CONTROLLING: MAKING SURE IT WORKS

Establish clear

standards

Monitor and record

performance

Compare results against

standards

Communicate results

If needed, take

corrective action

Are standards realistic?

FEEDBACK

MEASURING CUSTOMER SATISFACTION Measuring success in a customer-oriented

firm is customer satisfaction. This includes satisfaction of both external

and internal customers.External customers are dealers, who buy

products and sell to others, and ultimate customers (or end users), who buy products for their own personal use.

Internal customers are individuals and units within the firm that receive services from other individuals or units.

ENABLINGGiving workers the education and tools they need to make decisions.

HANDOUT – PAGE. 255-256

Fayol’s principles Max Webber

Questions: Name and describe four of Fayol’s principles What principles did Webber add?

HANDOUT – THEORIES OF MOTIVATION- ANSWER THE QUESTIONS THAT FOLLOWThe importance of motivation

What is the difference between intrinsic and extrinsic reward?

Frederick TaylorExplain the time motion studies.

Why is this information important to managers?

Hawthorne StudiesWhat were the results of these studies?

Maslow’s hierarchy of needsWhat is the hierarchy of needs?

SPAN OF CONTROL

The optimum number of subordinates a manager supervises or should supervise.

What does this depend on?

QUIZ REVEIW

QUIZ

MANAGEMENT AND LEADERSHIP PROJECT