FUNDAMENTALS OF

MANAGEMENT
LEADING
DISCUSSION

■ The definition of LEADING and LEADERSHIP

■ The differences between Leaders and Managers
■ The 3M’s of a business leader
■ Leadership traits and behavior
■ Factors of Leadership
■ Theories on Leadership
LEADING AND
LEADERSHIP
LEADING

■ Another of the basic function within the management process. The leading process
helps the organization move towards goal attainment. Managers must be able to
make employees want to participate in achieving an organization’s goals. Three
components make up the leading function:
 Motivating employees
 Influencing employees
 Forming effective groups
 LEADERSHIP
■ Aprocess by which an executive can direct, guide
and influence the behavior and work of others
towards accomplishment of specific goals in a given
situation.
■ The ability of a manager to induce the subordinates
to work with confidence and zeal.
■ The potential to influence behavior of others. It is
also defined as the capacity to influence a group
towards the realization of a goal.
■ Required to develop future visions, and to motivate
the organizational members to want to achieve the
visions.
■ “Leadership is the ability to persuade others toseek
defined objectives enthusiastically. It is the human
factor which binds a group together and motivates it
towards goals.” says Keith Davis (2013).
LEADERSAND
MANAGERS
THE THREEM’S
The Three M’s: Mission, Mentor, and
Mirror
■ Leaders should create their own
personal Mission declaration.

■ Leaders should be careful in

choosing a Mentor.

■ Leaders always stand and look

in front of the Mirror to seethe
overall progress and
performance as a leader
towards others.
LEADERSHIP TRAITS
AND BEHAVIOR
Leadership Traits
Leadership Behaviors

■ Consideration

– Part of being a leader in which the leader should be friendly, treating all
group members as equal, supportive, shows concern for employees,
and always approachable to group members. Leadership style is
people-oriented.

■ Initiating Structure

– Part of being a leader in which the leader defines group member roles,
initiates actions, organizes group activities and defines how task are to
be accomplished by the group. Leadership style is task-oriented.
FACTORSOF
LEADERSHIP
 Factors of Leadership
■ Leader – must have an honest knowledge of
yourself like who you are, what you know, and
what you can and cannot do.
■ Followers – must know the people being
handled and should have clear understanding
on the people you are handling like their
emotions, attitudes, and personalities.
■ Communication – a situation in which is should
be a two-way interaction and it can be verbal or
non-verbal communication. The way and how
you communicate to the people you are
handling will determine the progress and
relationship in the overall situation.
■ Situation – must use judgement skills to decide
what will be the best course of action to
commence and be able to have different
leadership style cause it is needed in situations.
THEORIES ON
LEADERSHIP
Theories on Leadership
 Contingency Theory

■ Focuses on specific variables that is

related to the specific environment
that will determine what style of
leadership will be the most likely
choice to use in the specific situation.
■ According to the theory there is no
absolute great leadership style that
can be used in every situation given to
be handle.
 ■ Assumes that the people can and will
inherit certain qualities that the people
Trait Theory observe and learn and also inherit traits
that will make them better to be suited to
leadership.

■ Traits like self-confidence, openness, and

courage are one of the traits the could
potentially be linked to great leaders.

■ This theory is one of the difficult to usein

explaining leadership because there are
lots of variety of people who have the
personality traits of leadership yet some
people do not seek leadership and some
who lacks the personality traits of
leadership still excel at leading people.
 Relationship Theory
■ Also known as transformational theory, this focus
on the connections that are formed between a
leader and the followers.
■ Transformational leaders inspire and motivate the
followers by helping them to see the importance of
the given situation.
■ These leaders are solely focused on the
performances of the followers and at the sametime
trying to unlock the potential of each followers the
leaders is handling.
■ Leaders with this leadership style often have high
ethical and moral standards.
“Great Man” Theory
■ This theory suggests that leaders are born
and not made. This portray great leaders as
heroic, mythic, and destined to be a great
leader like that is their sole purpose of being
born is to be a great leader.
■ It suggests that people cannot really learn
how to become strong leaders. It is either you
are born as a leader or born without it.
■ It is much nature approach in explaining
leadership.
Situational Theory

■ The theory said that the

leaders chooses the best
course of action relying on
what is the given situational
variables. Having different
leadership styles will be more
appropriate in decision
making.
■ The most effective style of
leadership changes
depending on the given
situation.
Behavioral Theory
■ Leadership is shown by actions
rather than traits alone and it is
the result of effective role
behavior.
■ It concentrates on unique
behavioral parts found in leaders
that have the effective leadership
skills.
■ This theory suggests that the
great leaders are made andnot
born. It is against the “Great
Man” theory.
■ People can learn and become
leaders through teachings and
observations.
Participative Theory
■ Leaders should encourage
participation and contributions from
the followers and help the followers
feel more relevant, helpful, and
committed to the decision-making
process in the discussion.
■ Leader still retains the right to allow
the input of others meaning the
leader should handle the
participation and contribution of the
followers in a civil manner so
everyone can understand each other
and be able to progress smoothly.
Management Theory
■ Also known as transactional theory, focus
on the reward and punishment system in
which leadership will use the system for
the followers to be more focused and
disciplined because there will be
something at stake whenever the
followers work.
■ This is often used in business. When the
followers are successful then they will be
rewarded from the success that they did
but if the followers failed then they willbe
reprimanded or punished on what they
did.
 FUNDAMENTALS OF MANAGEMENT
z
CONTROLLING
z
FUNDAMENTALS OF MANAGEMENT:
CONTROLLING

 Understand the concept and meaning of Controlling

 Understand the Controlling Process

 Describe various types of control

 What are the necessary things to Control?

 FUNDAMENTALS OF MANAGEMENT: CONTROLLING
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WHAT IS CONTROL?
z

Definition of Control
according to Fayol
“Control consists in verifying
whether everything occurs in
conformity with the plan adopted,
the instructions issued, and the
principles established.

- Henri Fayol
z
Definition of Control
according to
Koontz & O’Donnell
“Controlling implies measurement
of accomplishment/performance
against the standard & the
correction of deviations to assure
attainment of objectives
according to plans.”
z
WHAT IS CONTROL?

 Control is the process of bringing about conformity of

performance with planned action.

 Control is the last and important function in the managerial

process, executed after Planning, Organizing, and Leading.
 FUNDAMENTALS OF MANAGEMENT: CONTROLLING
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CONTROLLING PROCESS
 CONTROLLING PROCESS
z

 Step 1: Setting Performance Standards

- Standards are the criteria against which actual
performance would be measured

- A good standard must enable goal achievement

- Listening to customers

- Observing competitors, collecting data to determine

other companies’ performance standards
 CONTROLLING PROCESS
z
 Step 2: Measurement of Actual Performance
- It is believed that measurement should be done after the
task is completed

- However, wherever possible, measurement of work should

be done during the performance

- Performance should be measured in an objective and

reliable manner.
 CONTROLLING PROCESS
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 Step 3: Comparing Actual Performance
with Standards
- Such comparison will reveal the deviation between
actual and desired results

- For instance, performance of a worker in terms of

units produced in a week can be easily measured
against the standard output for the week
 CONTROLLING PROCESS
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 Step 4: Analyzing Points for Controlling

-It is neither economical nor easy to keep a check on each

and every activity in an organization.

-Control should, therefore, focus on key result areas

(KRAs) which are critical to the success of an organization

-Saves time and effort as it focuses managerial attention

on important areas, thus better utilization of work and
keeping the organization in the right track
 CONTROLLING PROCESS
z
 Step 5: Taking Corrective Action
- immediate managerial attention so that such problems
do not occur again and standards are accomplished

- Corrective action might involve training of employees if

the production target could not be met
 FUNDAMENTALS OF MANAGEMENT: CONTROLLING
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TYPES OF CONTROL
z
TYPES OF CONTROL
 I. Bureaucratic Control
- Bureaucracy - defined as working in a way that has many
steps to complete a task with very strict order and rules

- Overly concerned with procedure at the expense of

efficiency or common sense

- Uses rewards and punishment to influence employee

behaviors

- Uses policies and rules to control employees

- Often inefficient and highly resistant to change

z
TYPES OF CONTROL
 II. Objective Control
- Use of observable measures of worker behavior outputs
to assess performance and influence behavior

Types of Objective Control:

1.) Behavior Control – regulation of the behaviors and
actions that workers perform on
the job.
2.) Output Control – regulation of workers’ results or
outputs through rewards and
incentives
z
TYPES OF CONTROL

 III. Normative Control

- Is practiced by careful selection of employees
- Observing experienced employees & listening to stories
about the company
z
TYPES OF CONTROL

 IV. Concertive Control

- Regulation of workers’ behavior and decisions through
work group values and beliefs

- Autonomous work groups operate with team leaders

- Group members control processes, output, and behaviors

z
TYPES OF CONTROL

 V. Self Control
- Also known as self management

- Employees control their own behavior

- Employees make decisions within well-established
boundaries
 FUNDAMENTALS OF MANAGEMENT: CONTROLLING
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THINGS TO CONTROL
z
THINGS TO CONTROL

 A. Human Resources
- Control includes selection and placement, training and
development, performance appraisal and compensation.
- Employees will burn out, and you'll begin to realize the negative
effect of bad customer service.
- Employee performance is critical to the overall success of the
company.
z
THINGS TO CONTROL

 B. Financial Resources
- Control involves managing the organizations debt, cash flow and
receivables/payables. Control of financial resources may be the
most important control of all.
- As a business grows and matures, it will need more cash to
finance its growth. Planning and budgeting for these financial
needs is crucial.
- Organizations must make sure that they have enough cash on
hand to pay employees and suppliers even though they have
more money going out than coming in.
z
THINGS TO CONTROL

 C. Information Resources
- Control includes sales/marketing forecasting, environmental
analysis, public relations, production scheduling and economic
forecasting.
- Marketing function is tasked with branding of the organization,
participation in publicity activities, advertising and customer
interaction through feedback collection.
- Forecasting becomes the basis for several other budgets. In the
absence of accurate sales forecasting, it is difficult to decide as
to how much production should be done.
z
THINGS TO CONTROL

 D. Physical Resources
- Control includes inventory management, quality control and
equipment control.
- Inventory management is important to small businesses because it
helps them prevent stockouts, manage multiple locations, and
ensure accurate recordkeeping.
- Organizations producing quality products have effective
advertisement. They win the public confidence by supplying those
better quality products.
 TRANSITION
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CASE STUDY
(CONTROLLING)
z

Samsung Galaxy Note 7:

Bang for the Buck?
The Samsung Galaxy Note
7 (stylized as Samsung Galaxy
Note7) is a discontinued Android-
based phone, designed,
developed, produced and
marketed by Samsung Electronics.
z
THE PROBLEM

 The Galaxy Note 7 was originally released

mid-August 2016, but there were numerous
reports of explosions and injuries, after it
was found that the phones were generating
excessive heat, resulting in fires and
explosions.
 Why Are Samsung’s Galaxy
Note 7 Phones Exploding?
 On September 2 2016,
Samsung suspended sales of the Galaxy
Note 7 and announced an informal recall,
after reports it can overheat and even
explode. The company said it "conducted a
thorough investigation and found a battery
cell issue."
z
THE SOLUTION (?)
 A formal U.S. recall was then announced on
September 15 2016. Samsung exchanged the
affected phones for a new revision, which
utilized batteries sourced from a different
supplier.

 However, after reports emerged of incidents

where these replacement phones also caught
fire, Samsung recalled the Galaxy Note 7
worldwide on October 10 2016, and
permanently ceased production of the device on
October 11 2016.
z
LOSSES
 Samsung stopped selling the Note 7’s,
which translated into lost sales of around
$17 billion for 19 million phones.
 Poor production planning and quality control, led
to negative brand publicity and waste of physical
resources.

 Should proper Controlling have been practiced,

further checks into the production of inferior
products and wastages would thereby bring
down the cost of production considerably.
CASE STUDY
DOWNFALL OF
APPLE INC.
On October 15, 1993, ever since Steve Job got removed by the board of
directors’ decision with the help of John Sculley the company was in a situation
of one step forward and two step backward ever since John Sculley took over
the company. the the Apple Inc. headed towards destruction. After a huge drop
in earnings while being held by John Sculley and after this huge drop he steps
down from being the CEOto just the chairman of Apple Inc. having a total of
$86 million of profit in 1993 and it is a huge difference from the 1992 profit
which is $530 million profit.

John Sculley. CEOof Apple Inc. (1993)

CASE ANALYSIS
The main cause of the problem is John Sculley. The less generous view is that Sculley
believed himself to be a technological innovator and he wasn't. You don't need to be an
engineer to run a technology company and you don't need to be a visionary to make a
success of a business. John Sculley acted like a visionary leader but he needed to
actually set the trends in a timely fashion —orset the company's course to where those
trends were going on time and not too early or too late —instead of bending to other
pressures. Because of John Sculley’s method it took a huge bad effect towards the
company.
CASE ANALYSIS
It is also the company’s part of fault on their downfall cause they got persuaded by John
Sculley and thinking he can do better then Steve Jobs solely because of the background
skills and experiences John Sculley was way better than Steve Jobs even though Steve
Jobs’ only flaw is being a literal boss figure who doesn’t care about the followers and
focuses on what he think is right but it is in a good way considering Steve Jobsfocused
on what is good on the company while John Sculley just wants to take control of a
another huge business.
SOLUTION
Apple Inc. should immediately remove John Sculley because the majority of his
accomplishment was a failure to the company. The solution to this is to take back Steve
Jobs and let him run the company like back then because ever since Steve Jobs is the
CEOof Apple Inc. the profits are always high and the time John Sculley came around the
profits came around as well resulting in a destruction of the Apple Inc. So the solution is
to evict John Sculley and hire Steve Jobs back and bring back the Apple Inc. in a much
more better state.