3/15/2017

Lecture outline
• Describe the changes occurring today in the
1 management function

• Describe the four functions of management

2

• Relate the planning process and decision making to

3 the accomplishment of company goals

• Explain the differences between leaders and

4 managers, and describe the various leadership styles
Lecturer: Nguyen Thi Hong An 1
• Summarize the five steps of the control function of
5 management

2
Lecturer: Nguyen Thi Hong An

WHAT IS MANAGEMENT?

Management -- The process used to accomplish
organizational goals through planning, organizing, leading
and controlling people and other organizational resources.
LEVELS OF MANAGEMENT
◦ Organizations have three basic levels of management
• Strategic level
• Tactical level
• Supervisory or Operational level
◦ Depending on where you work, some parts of the country call it the
Supervisory level while other parts of the country call it the
Operational level. Also when you talk about the structure of a
business, organizations put management in the categories of
Strategic, Tactical, and Supervisory or Operational
◦ However over the years, organizations have been eliminating middle
managers and relying more on Team Leaders and Self-Managed
Teams.

Lecturer: Nguyen Thi Hong An 4

Lecturer: Nguyen Thi Hong An

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LEVELS OF MANAGEMENT LEVELS of MANAGEMENT

◦ Top Management -- The highest level, consists of
the president and other key company executives
who develop strategic plans. Strategic Level

◦ Middle Management--Includes general managers,

division managers and branch and plant
Tactical Level
managers who are responsible for tactical
planning a controlling.
◦ Supervisory/Operational Management--Those Supervisory/ Level
Operational
directly responsible for supervising workers and
evaluating daily performance.

Lecturer: Nguyen Thi Hong An 5 Lecturer: Nguyen Thi Hong An 6

Common Job Titles Problems with titles

◦ Strategic (Top Level): CEO, COO, President, Vice-
President
◦ Tactical (Middle Level): Division Manager, Dean,
Plant Manager, Personnel Director, Sales Manager,
Regional Manager, District Manager
◦ Operational (Lower Level): Department Head, Supervisor,
Team Leader, Foreman, Store Manager, Assistant Store
Manager
◦ Over the years, organizations have been giving workers fancy
titles to make them feel good or important in lieu of raises. But
these titles can confuse people as to what level they work at or
belong to in the organization. For example, Sales Manager is a
Tactical title. But many people in a store, which is considered
lower level, have the title of Sales Manager of the store. The
following are some examples.
 Salesperson is a Sales Associate
 Secretary is Office Manager or Assistant to the President
 Clerk is Customer Service Rep
 Stock boy is an Inventory Specialist
 Bagger is Front Store Customer Service Specialist

Lecturer: Nguyen Thi Hong An 7 Lecturer: Nguyen Thi Hong An 8

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SKILLS NEEDED at VARIOUS

LEVELS of MANAGEMENT

As people move up in an organization, they begin to use more

conceptual skills and less technical skills. In order for people to
move up in an organization, they need to develop their conceptual
skills. Human relations skills are needed at every level of
management.

Lecturer: Nguyen Thi Hong An 9 Lecturer: Nguyen Thi Hong An 10

STAFFING TODAY’S MANAGERS

• Younger and more progressive.

• Staffing -- Recruiting, hiring, motivating and - Growing numbers of women.
retaining the best people available to - Fewer from elite universities.
accomplish the company’s objectives.
• Emphasis is on teams and team building.
• Recruiting good employees is critical.
• Managers need to be skilled communicators and
• Many people are not willing to work at team players.
companies unless they are treated well
with fair pay.

7-11
Lecturer: Nguyen Thi Hong An

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The Functions of Management
Lecturer: Nguyen Thi Hong An
BENEFITS OF PLANNING
◦Helps Cope with Uncertainty
◦Helps to Think Ahead
◦Helps Coordinate Activities
◦Helps to Check on Progress
Lecturer: Nguyen Thi Hong An
3/15/2017
PLANNING
◦ Planning is the conscious, systematic process of
making decisions about goals and objectives
that an individual, group, department, work unit,
or organization will pursue and gives a clear map
to follow for future activities.
◦ Planning is a purposeful effort that is directed
and controlled by managers and often draws on
the knowledge, experience, and expertise of
employees throughout the organization
13 Lecturer: Nguyen Thi Hong An 14
• Mission Statement -- Outlines the organization’s
fundamental purposes. It includes:
- The organization’s self–concept.
- Its philosophy.
- Long–term survival needs.
- Customer needs.
- Social responsibility.
- Nature of the product or service.
◦ Vision -- More than a goal, it’s a broad explanation
of why the organization exists and where it’s trying
to go.
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SETTING
GOALS and OBJECTIVES Planning & Time Spans
Strategic

Tactical
• Goals -- The broad, long-
long-term
accomplishments an

TIME
3 Years + Operational
organization wishes to attain. 1 Year,
Quarter Days,
• Objectives -- Specific, short-
short- Weeks
term statements detailing how
to achieve the organization’s At one time, strategic planning was considered 10 years or
goals. more, then it went to 5 years or more, and now is considered 3
years or more. Why has it changed? Change is happening
more rapidly today making it harder to project the future.

Lecturer: Nguyen Thi Hong An 17 Lecturer: Nguyen Thi Hong An 18

• What is the situation now?

◦ SWOT Analysis -- Analyzes the
organization’s Strengths, Weaknesses,
Opportunities and Threats.

• How can we get to our goal from here?

- Strategic planning
- Tactical planning
- Operational planning
- Contingency planning
Lecturer: Nguyen Thi Hong An 19 Lecturer: Nguyen Thi Hong An 20

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STRATEGIC and TACTICAL PLANNING
◦ Strategic Planning -- Done by top management
and determines the major goals of the
organization and the policies, procedures,
strategies and resources it will need to achieve
them.
◦ Tactical Planning -- The process of developing
detailed, short-term statements about what is to
be done, who is to do it and how.
Lecturer: Nguyen Thi Hong An
Plans Should Fit Reality
Lecturer: Nguyen Thi Hong An
3/15/2017
OPERATIONAL and CONTINGENCY
PLANNING
• Operational Planning -- The process of setting
work standards and schedules necessary to
implement the company’s tactical objectives.
• Contingency Planning --
The process of preparing
alternative courses of action
the firm can use if its primary
plans don’t work out.
21 Lecturer: Nguyen Thi Hong An 22
Plans Should Fit Reality
If plans do no fit a person’s reality, they will not carry out the
plan. For example, let’s say a person is working as a store
salesperson. The manager tells the salesperson the corporate
goal is to increase sales 10% over the next five years. The
salesperson might think, “Who cares, I want be here in 5
years.” That’s why we break down plans at the Operational and
Tactical levels to fit a person’s reality. For example, the
Strategic goal is to increase sales 10% in five years. The
Tactical (District Manager) goal is to increase sales 2% this
year. The Operational (Store Manager) objective is to increase
sales by $500 this week over last year at this time. Now the
store salesperson as a plan that fits their reality, which is
increase sales by $500 this week. The salesperson knows they
are being evaluated based on the plan that could result in
being rewarded, or keeping their job, or being dismissed.
23 Lecturer: Nguyen Thi Hong An 24
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DECISION MAKING RATIONAL DECISION-MAKING

MODEL
1. Define the situation.
• Decision Making -- Choosing among two or
more alternatives.
2. Describe and collect needed information.
3. Develop alternatives.
4. Develop agreement among those involved.
5. Decide which alternative is best.
6. Do what is indicated.
7. Determine whether the decision was a
good one and follow up.
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PROBLEM SOLVING
PROGRESS ASSESSMENT

• Problem Solving -- The process of solving the

everyday problems that occur; less formal than • What’s the difference between goals and
decision making and needs quicker action. objectives?

• What does a company analyze when it does

• Problem-
Problem-solving techniques include
a SWOT analysis?
brainstorming and PMI -- Listing all the pluses
for a solution in one column, all the minuses in • What are the differences between strategic,
another and the implications in a third.
tactical and operational planning?

• What are the seven Ds in decision making?

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Management Functions
Organizing is designing the structure of the
Organizing
organization and assembling the human, financial,
physical, informational, and other resources needed to 1) Allocating resources,
achieve goals and objectives. Organizing activities assigning tasks, and
include specifying job responsibilities, grouping jobs establishing procedures for
into work units, finding and allocating resources, and accomplishing objectives.
creating conditions so people and things work together 2) Need proper organizational
to achieve goals and objectives. structure to accomplish
objectives.

Note: How to properly structure an organization is discussed in the next

chapter.

Lecturer: Nguyen Thi Hong An 29 Lecturer: Nguyen Thi Hong An 30

Management Functions LEADERSHIP STYLES

Leading is creating a vision for the organization and • Autocratic Leadership --
communicating, guiding, training, coaching, motivating Making managerial decisions
others to achieve goals and objectives in a timely without consulting others.
manner. Leading is stimulating people to be high
performers either as individuals or as a group. • Participative or Democratic
Leadership -- Managers and
employees work together to
make decisions.
• Free-
Free-Rein Leadership --
Managers set objectives and
employees are free to do
whatever is appropriate to
accomplish those objectives.
Lecturer: Nguyen Thi Hong An 31
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VARIOUS LEADERSHIP STYLES

Example
◦ Examples: Leadership in Vietnam Airlines:
http://www.academia.edu/9183925/III._TASK_2_2.1_LEADERSHIP_S
TYLE_IN_VIETNAM_AIRLINES_AND_CATHAY_PACIFIC_AIRWAYS_OR
GANIZATION

Lecturer: Nguyen Thi Hong An 33

7-34

NATURAL BORN LEADERS? EMPOWERMENT

Four Types of Executives
• Progressive leaders give employees the
authority to make decisions on their own
Rationalists Humanists without consulting a manager.
• Customer needs are handled quickly.
Politicists Culturists • Manager’s role becomes less of a boss and
more of a coach.
• Enabling -- Giving workers the education and
tools they need to make decisions.
Source: CIO Magazine, www.cio.com
www.cio.com..

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LEADERSHIP ACCOUNTABILITY THROUGH

TRANSPARENCY
• Leaders must:
- Communicate a vision and rally others
around that vision. • Transparency -- The presentation of the
- Establish corporate values. company’s facts and figures in a way that
is clear and apparent to all stakeholders.
- Promote corporate ethics.
- Embrace change.
- Stress accountability and responsibility

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MANAGING KNOWLEDGE Jack Welch’s Six Rules for Managers

◦ Face reality as it is, not as it was
or as you wish it to be.
• Knowledge Management - ◦ Be candid with everyone.
- Finding the right ◦ Don’t manage, lead.
information, keeping the ◦ Change before you have to.
information in a readily
◦ If you don’t have a competitive
accessible place and
advantage, don’t compete.
making the information
known to every one in the ◦ Control your own destiny, or
firm. someone else will.
Note: Jack Welch was a former CEO of General Electric

Lecturer: Nguyen Thi Hong An 40

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Management Functions FIVE STEPS OF CONTROLLING

Controlling is establishing clear standards to determine
whether an organization is progressing toward its goals
and objectives while taking corrective action if they are
not. Managers make sure the organization’s resources
are being used as planned so the organization can meet
its goals and objectives. Managers may
use various methods in measuring
whether what actually occurs meets the
organization’s goals. Basically,
controlling monitors performance and
implements necessary changes.

Lecturer: Nguyen Thi Hong An 41

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Exception Principle
The philosophy behind the principle is that as long as the performance stays ARE YOU A MICROMANAGER?
within an acceptable range, it would cost more to correct the deviation than to just
leave it alone. However the manager has to decide what is “acceptable” or
“unacceptable.” For example, why pay an accountant $50 an hour to find $0.50
to make the books balance? Just write-off the $0.50 and make the books balance. • Do you have strategic initiatives that you
But if the books were off by $500, then using an accountant would be needed. have not addressed?
• Do you often check on employees for quality
control?
• Do you often check on subordinates
throughout the day?
• Do you rarely take vacations?
• Is there a lot of turnover?
Source: CFO Magazine, www.cfo.com
www.cfo.com..

Lecturer: Nguyen Thi Hong An 43

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MEASURING SUCCESS PROGRESS ASSESSMENT

• Traditional forms of measuring success are
financial.
• How does enabling help achieve
• Pleasing employees, stakeholders and customers empowerment?
(both internal and external) are important.
• What are the five steps in the control
• External Customers -- Dealers, who buy products
process?
to sell to others, and ultimate customers (or end
users), who buy products for their own use.
• What’s the difference between internal and
• Internal Customers -- Individuals and units within external customers?
the firm that receive services from other individuals
or units.
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The differences bet ween boss

and leader :
◦ https://www.youtube.com/watch?v=j_F7ghGTxGY
◦ https://www.youtube.com/watch?v=j_F7ghGTxGY
Case study 1:
◦ Manager 1: Kelly has a specific background in research. She
manages staff who provide research support to another
department that delivers behavioral health services to youth.
Kelly supports her staff and is very organized; however, she often
takes a very black and white view of issues. Upper level
leadership values Kelly’s latest research on the therapeutic
division’s services. Kelly is very motivated, driven, and expects the
same from her staff.

Lecturer: Nguyen Thi Hong An 47 Lecturer: Nguyen Thi Hong An 48

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Case study 1: Case study 1:

◦ Manager 2: Linda has a strong background in social science research and Discussion Questions:
evaluation. She manages staff that work on different projects within the ◦ How can Laura most effectively use both management and leadership skills
agency. She is known as problem solver and is extremely supportive of her
in her role as associate director? What combination of the two do you think
staff. She is very organized and has a wealth of experience in evaluation of would work best in this setting?
family services. Linda is very capable and can sometimes take on too
much. ◦ What steps could be taken to build staff confidence?
◦ The managers are sensing that staff are becoming over-worked as ◦ What advice would you give Laura on improving her leadership skills and to
everyone takes on increased responsibilities due to high staff turnover. Staff the managers on improving their management skills?
have also mentioned that Laura’s “glass half-empty” conversation style ◦ Which leadership style do you think a leader would need to be effective in
leaves them feeling dejected. In addition, Laura has not shared budgets this situation?
with her managers, so they are having difficulty appropriately allocating
work to staff. Laura said she has not received sufficient information from the
finance department to complete the budgets. The finance department
said they have sent her all the information they have available.
◦ As staff become distressed, the managers are becoming frustrated. They
feel like they are unable to advocate for their staff or problem solve without
key information like the departmental budget.

Lecturer: Nguyen Thi Hong An 49 Lecturer: Nguyen Thi Hong An 50

Case study 2:

◦ Analyze the SWOT of Trung Nguyen Legend coffee store chain ?

Lecturer: Nguyen Thi Hong An 51

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