Chapter 7

Management and leadership

Kevin Plank, Founder of
Under Armour

GETTING TO KNOW
 Chapter
Structure
1. Managers’ roles are evolving
2. The four functions of management
3. Planning and decision making
4. Organizing: creating a unified system
5. Leading: providing continuous vision and values
6. Controlling: making sure it works
 6.1. Managers’ roles are evolving

 Managers must practice the art of

getting things done through
organizational resources, which
include workers, financial resources,
information and equipment.
 Most managers tend to be more
collaborative.
 A skilled communicator, a team
player, a planner, an organizer, a
motivator, a leader.
6.1. Managers’ roles are evolving

Planning Management is the

process used to
accomplish
Organizing organizational goals
through planning,
Leading organizing, leading and
controlling people and
other organizational
Controlling resources.
 Planning
A management function that includes anticipating

Planning trends and determining the best strategies and

tactics to achieve organizational goals and
objectives.
• Setting organizational goals
• Developing strategies to reach those goals
• Determining resources needed
• Setting precise standards
 Organizing
A management function that includes designing
the structure of the organization and creating
conditions and system in which everyone and

Organizing
everything work together to achieve the
organization’s goals and objectives.
• Allocating resources, assigning tasks, establishing
procedures for accomplishing goals.
• Preparing a structure showing lines of authority and
responsibility.
• Recruiting, selecting, training and developing
employees.
• Pacing employees where they’ll be most effective.
 Leading
Creating a vision for the organization and guiding,
training, coaching and motivating others to work

Leading effectively to achieve the organization’s goals and

objectives.
• Guiding and motivating employees to work
effectively to accomplish organizational goals and
objectives.
• Giving assignments
• Explaining routines
• Clarifying policies
• Providing feedback on performance
 Controlling
A management function that involves establishing
clear standards to determine whether or not an

Controlling organization is progressing toward its goals and

objectives, rewarding people for doing a good job,
and taking corrective action if they are not.
• Measuring results against corporate objectives
• Monitoring performance relative to standards
• Rewarding outstanding performance
• Taking corrective action when necessary
 6.3. Planning and decision making

Planning: the first managerial function, is setting

the organization’s vision, goals and objectives.
 • Vision: an encompassing explanation of
why the organization exists and where it’s
Some definitions trying to head.
• Mission statement: an outline of the
fundamental purposes of an organization.
• Goals: the broad, long-term
accomplishments an organization wishes to
attain.
• Objectives: specific, short-term statements
detailing how to achieve the organization’s
goals.
 6.3. Planning and decision making

SWOT analysis: a planning tool used to analyze an organization’s strengths, weaknesses,

opportunities and threats.
 6.3. Planning and decision making

STRATEGIC PLANNING TACTICAL PLANNING

The setting of broad, long-range The identification of specific,
goals by top managers short-range objectives by lower-
level managers

CONTINGENCY PLANNING OPERATIONAL PLANNING

Backup plans in case primary The setting of work standards and
plans fail schedules

FORMS OF PLANNING
 STRATEGIC PLANNING
The process of determining the
major goals of the organization
and the policies and strategies
for obtaining and using
resource to achieve those goals.

Forms of planning
 TACTICAL PLANNING
The process of developing
detailed, short-term statements
about what is to be done, who
is to do it, and how it is to be
done.

Forms of planning
 OPERATIONAL PLANNING
The process of setting work
standards and schedules
necessary to implement the
company’s tactical objectives.

Forms of planning
 CONTINGENCY PLANNING
The process of preparing
alternative courses of action that
may be used if the primary plans
don’t achieve the organization’s
objectives.

Forms of planning
 6.3. Planning and decision making
Decision making: finding the best alternative

DECISION MAKING
Choosing among two or more alternatives.

PROBLEM SOLVING
The process of solving the everyday problems that occur.
Problem solving is less formal than decision making and
usually calls for quicker action.
 6.3. Planning and decision making
Decision making: finding the best alternative

Develop alternatives Decide which alternative is best

4
3
Describe and collect
2 5 Do what is indicated
needed information

Determine whether the decision

6
1
Define the situation was a good one, and follow up

The steps of decision making – the six Ds

1. What’s the difference between goals
and objectives?
2. What does a company analyze when it
does a SWOT analysis?
3. What are the differences among
strategic, tactical and operational
planning?
4. What are the six Ds of decision
making?
 6.4. Organizing: Creating a unified system

Three levels of management and

their mission
 6.4. Organizing: Creating a unified system

Three levels of
management and their
position title
 6.4. Organizing: Creating a unified system

Middle Lower
Top
management management
management

Highest level of The level of management Managers who are

management, consisting
of the president and other
key company executives
who develop strategic
plans.
that includes general directly responsible for
managers and branch and supervising workers and
plant managers who are evaluating their daily
responsible for tactical performance.
planning and controlling
 6.4. Organizing: Creating a unified system
Tasks and skills at different levels of management

Skills that involve the

ability to perform tasks Skills that involve the
in a specific discipline or ability to picture the
department. organization as a whole
Technical
and the relationship
skills among its various parts.

Human
relations Conceptual skills
Skills that involve skills
communication and
motivation; they enable
managers to work through
and with people
6.4. Organizing: Creating a unified system
Tasks and skills at different levels of management

Skills needed at various levels of management

 6.4. Organizing: Creating a unified system
Staffing: getting and keeping the right people

STAFFING
A management function that includes hiring,
motivating and retaining the best people available
to accomplish the company’s objective.

Today, staffing is critical, especially in the Internet and

high-tech areas. Staffing is becoming a greater part of
each managers’ assignment and all managers need to
corporate with human resource management to win and
keep good workers.
6.5. Leading: Providing continuous vison and values
Manager: someone who coordinates and
oversees the work of other people so that
organizational goals can be accomplished.
Leader: someone who can influence others and
who has managerial authority.
Leadership: as defined here is the ability to
influence people toward the attainment of
organizational goals.
Leadership style: is the manner and approach of
providing direction, implementing plans and
motivating people.
6.5. Leading: Providing continuous vison and values
6.5. Leading: Providing continuous vison and values
 6.5. Leading: Providing continuous vison and values
Leadership style

Managers and employees

working together to make
decisions.

Autocratic Participative Free-rein

leadership leadership leadership

Making decisions without Managers set objectives and

consulting others. employees are free to do
whatever is appropriate to
accomplish those objectives.
6.5. Leading: Providing continuous vison and values
Leadership style
6.5. Leading: Providing continuous vison and values
Leadership style
6.5. Leading: Providing continuous vison and values
Leadership style

Exploring
your leadership styles
 6.5. Leading: Providing continuous vison and values
Empowering workers

Directing includes giving Empowerment means giving Enabling means giving workers
assignments, explaining routines, employees the authority to make the education and tools they
clarifying policies and providing a decision without consulting the need to make decision.
feedback on performance. manager and the responsibility
to respond quickly to customer
requests.
 We Create Quality
Professional PPT
Presentation

Knowledge management: finding the Get right information, keeping the

a modern PowerPoint Presentation that is beautifully designed. Easy to
information in DOLOR
LOREM IPSUM a readily
SIT accessible place, and making the information
change colors, photos and Text.

knownAMET,
to everyone in
CU USU AGAM INTEGRE
the firm.  Get a modern PowerPoint Presentation that is beautifully designed. Easy to
change colors, photos and Text.

IMPEDIT.  Get a modern PowerPoint Presentation that is beautifully designed. Easy to

change colors, photos and Text.
6.6. Controlling: making sure it works

The control process

6.6. Controlling: making sure it works
A key criterion for measurement: customer satisfaction

EXTERNAL CUSTOMERS INTERNAL CUSTOMERS

Dealers, who by Individuals and units

products to sell to within the firm that
others, and ultimate receive services from
customers (or end other individuals or
users), who buy units
products for their own
personal use.
The end …
Management and leadership