PMGT406 - Lecture 4 Chapter_8&9(2)

Nickels 6e/Copyright 2007 McGraw-Hill Ryerson

Chapter 8

Management and Leadership



Learning GoalsExplain how the changes that are occurring in the business environment are affecting the management function.Describe the four functions of management.Describe the different types of planning and the importance of decision making in choosing the best alternative.Describe the organizing function of management and the three categories of skills needed by managers.Explain the differences between leaders and managers, and describe the various leadership styles.Summarize the five steps of the control function of management.



New Paradigms and resulting Management StylesManagers are now guiding, training, supporting, motivating, and coaching employees.Employees are better educated.Emphasis on teamwork and cooperation.Employees are seen as partners.Employees tend to be more transientMore females and younger workers



Planning: Create VisionSet vision, goals, objectivesVision/mission- why organization exists, purpose of organizationGoals- broad, long-term aimsObjectives- specific, short-term statements



Questions of Strategic PlanningWhat is the environmental situation now? (SWOT Analysis)

Where do we want to go? (mission)How can we get there from here? (strategy)



4 levels of Planning



Planning: A Vision for the OrganizationLong-term plans - set the major goals and the strategy to obtain those goalsShort-term plans - detailed plan, who does what, when and how will it be doneContingency plans - alternative plans (including crisis plans) to remain flexible and react to new opportunities and challenges



The Decision Making ProcessDefine Describe Develop Alternatives Develop AgreementDo DetermineDecide



OrganizingTrend toward self-managed teamsStakeholders-who are affected by the organizationStaffing-hiring and keeping good employeesManaging increased diversity


The Org Chart




Tasks and Skills at Different Levels of Management



LeadingCommunicate a vision and rally others around that visionEstablish corporate valuesPromote corporate ethicsEmbrace change


*Copyright 2008 by Nelson, a division of Thomson Canada LimitedConcept CheckWhat are the 5 power bases? What is the source of that power?What are the 3 leadership styles? When is each appropriate?Explain: democratic leaders consensual leaders consultative leaders



Reasons for Empowering Non-Supervisory EmployeesIt leads to better decisions made by those closest to the customerFewer, busier managersPredominance of knowledge workersLeads to better decisions and more valuable employees


SummaryManagement functions are changing because employees are better educated and seen as partners, there is an emphasis on teamwork and there are more females and younger workers.The four functions of management are planning, organizing, controlling and motivating.The types of planning that managers undertake are strategic, tactical, contingency, and operational. Management is stratified into three levels. Top, middle and supervisory. They need skills such as technical, human relations and conceptual.Leaders create the vision for others to follow. Managers carry out the leaders visions. The five steps of control are establish clear standard, monitor and record, compare results, communicate results and take corrective action if needed. Nickels 6e/Copyright 2007 McGraw-Hill Ryerson



Chapter 9

Adapting Organizations to Todays Markets



Learning GoalsDiscuss the various issues involved in structuring organizations.Describe and differentiate the various organizational models.List the concepts involved in interfirm co-operation and coordination.Explain how restructuring, organizational culture, and informal organizations can help businesses adapt to change.


Organizational StructureStructuring an organization consists of devising a division of labour, setting up teams or departments to do specific tasks and establishing procedures for accomplishing the organizational objectives.Nickels 6e/Copyright 2007 McGraw-Hill Ryerson


Purpose of an Organizational ChartShows the activities of the organization.Highlights sub divisions of the organization.Identifies different types of work performed. Provides information about different management levels.Shows lines of authority and the flow of organizational communications.




Fayols Principles of OrganizationUnity of commandHierarchy of authorityDivision of labourSubordination of individual interestAuthorityDegree of centralizationCommunication channelsOrderEquityEsprit de corps



Webers Organizational PrinciplesSimilar to Fayol and added:Job descriptionsWritten rules, decision guidelines, and detailed recordsConsistent procedures, regulations, and policiesStaffing and promotions based on qualifications



Fundamentals of BureaucracyHierarchy

Chain of command

Rules and regulations

Set up by function

Communication between departments is minimal


Issues Involved in Structuring OrganizationsWhen designing responsive organizational structures firms have to deal with several issues.Centralization vs DecentralizationSpan of ControlTall vs Flat organizational designDepartmentalization




Variables To Considerin Span of Control Capabilities of the managerCapabilities of the subordinatesGeographical closenessFunctional similarityNeed for coordinationPlanning demandsFunctional complexity



Organizational StructuresTall OrganizationsMany layers of managementSpan of control limitedCostly to maintainLots of paperworkInefficient communication and decision makingFlat OrganizationsFew layers of managementBroad span of controlHighly responsive to customer demands due to increased employee empowerment


DepartmentalizationDividing of organizational functions into separate units.Functional structure is the grouping of workers into departments based in similar skills.Nickels 6e/Copyright 2007 McGraw-Hill Ryerson



Advantages

Skill development

Economies of scale

Better coordination of activitiesDepartmentalization by Function



Departmentalization by FunctionDisadvantagesLack of communicationEmployees identify with department instead of companySlow response to external demandsNarrow specialistsSilos of knowledge-group think



DepartmentalizationBy productBy functionBy customerBy locationBy process



Organization ModelsLine organizationsLine-and-staff organizationsMatrix-style organizationsCross-functional self-managed teams


Managing Interactions Among FirmsNetworking is using communications technology to link organizations.Real time is the current moment.Transparency occurs when a company is see-through from another companies perspective. It means firms can work closely together.Nickels 6e/Copyright 2007 McGraw-Hill Ryerson


Benchmarking and Core CompetenciesBenchmarking: comparing an organizations practices, procedures and products against the worlds best.Core Competencies: Those functions that an organization can do as well as or better than other organizations in the world.Nickels 6e/Copyright 2007 McGraw-Hill Ryerson


Restructuring and EmpowermentRestructuring: redesigning an organization so that it can more effectively and efficiently serve its customers.Inverted Organization: An organization that has contact people at the top and the CEO at the bottom of the organizational chart.Nickels 6e/Copyright 2007 McGraw-Hill Ryerson


Restructuring ProcessTotal Quality Management (TQM)Striving for maximum customer satisfaction by ensuring quality from all departments.Re-engineering is the fundamental rethinking and radical redesign of organizational processes to achieve dramatic improvements in critical measures of performance.Continuous Improvement (CI)Constantly improving the way the organization does things so that customer needs can me better satisfied.



Summary1) Fayol and Weber introduced principals of command, hierarchy, division of labour, subordination authority, communication channels, order, equity, job descriptions, rules consistent procedures, staffing and promotions based on qualifications.2) Issues involved in structuring and restructuring organizations include: centralization, decentralization, span of control, tall and flat structures and departmentalization.3) The different organizational models are line and staff, matrix and cross functional teams.4) Interfirm co-operation occurs when companies use networking to communicate with each other and as a result become transparent to each other.5) The best organizations have cultures that emphasize service to others, especially customers.



**Chapter 7*Chapter 7*Harnessing the power of information technology gives a company a significant competitive advantage. Information is at the heart of all organizations. Without information about the processes of and participants in an organization, a business cannot operate. *********Chapter 7*Chapter 7*To be effective leaders, managers must be able to influence others behavior. This ability to influence others to behave in a particular way is called power. The five primary sources, or bases, of power are described here.

Many leaders use a combination of all of these sources of power to influence individuals toward goal achievement. Chapter 7*Chapter 7*Individuals in leadership positions tend to be relatively consistent in the way they attempt to influence the behavior of others. This pattern of behavior is referred to as leadership style. There are three distinct leadership styles.

Autocratic leaders are directive leaders, allowing for very little input from subordinates. These leaders prefer to make decisions on their own. Information typically flows one way: from manager to subordinate. the military is generally autocratic.

Participative leadership is a leadership style in which the leader shares decision making with group members and encourages discussion of issues and alternatives. The three types are described on the following slide.

Free-rein or laissez faire leaders turn over all authority and control to subordinates. Employees are assigned a task and given free rein to figure out the best way to accomplish it. This approach is sometimes with highly trained professionals. Chapter 7*Chapter 7*Democratic leaders solicit input from all members of the group and then allow the group members to make the final decision through a voting process.

Consensual leaders encourage discussion about issues and then require that all parties involved agree to the final decision. This is used by labor mediators.

Consultative leaders confer with subordinates before making a decision, but retain the final decision-making authority. This technique has been used to increase the productivity of assembly-line workers. *OT 7-7 Changes Creating Opportunity for Leadership by Non-Supervisory Employees

1. This acetate illustrates things that are occurring in our economy today that work to increase the need for well-trained employees even though they do not have a formal management responsibility.

2. The following describe each bullet:Increased competition- better, faster, cheaper, newer are the standards organizations must meet to be competitive today.Loosening of structures- in an effort to create flexibility, jobs have been left undefined. Employees enjoy more flexibility than in the past.Fewer, busier- besides reductions in managerial ranks, there are so many cross-functional teams and offsite/outsourced activities, managers dont have nearly the knowledge/control over clients they once had.Predominance of knowledge- although knowledge workers tend to be self-managing and dont want/need daily supervision, they are not necessarily self-leading.Focus on projects- today more organizations are focusing on specific project objectives which means that project members are often from different departments, and resources seldom are under the direct control of a single manager.

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PMGT406 - Lecture 4 Chapter_8&9(2)

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