Ch.6Management: functions and styles

What is management: Effective management and leadership are the foundation of a

flourishing business.

Leadership is different from management: → management is an appointed position with a title, while leadership tends to have a broader scope encompassing ones personal life too. To be effective: all management must be leaders, however all leaders do not necessarily have to be managers. Management: is the process of planning, organizing, leading, and controlling;people and other available resources to accomplish organizational goals and objectives.

So management is a position of power, a position that is granted to individuals because they are capable.

So managers have to make sure that the org.goals and objectives are met → they do that throughthe 4 managerial functions: planning →organizing → leading →controlling.

Functions of management:

1. Planning: It includes incepting trends and determining the best

strategies and tactics to achieve organizational goals and objectives (e.g. objective could be to please customers).

The trend today is to develop planning teams to help - Monitor the environment

- Find business opportunities - Watch for challenges( e.g. competitors- new products etc ) Planning is a key management function, because the other

functions depend heavily on having a good plan.

2. Organization :It includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives.

Many organizations today are designed around the customer, working to satisfy the customer's need at a profit.

So the organization must remain flexible and adaptable because customers needs change all the time →so organizations must either change along with them, or risk losing business.

3. leading: it includes creating a vision for the org and then

communicating, guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives.

Today most manager use empowerment→ i.e. they empower employees: by giving them as mush freedom as possible so that they become self-dedicated and self-motivated.

Empowerment: means giving employees the authority ( the right to make a decision without consulting the manager) and responsibility( the requirement to accept the consequences of ones action) to respond quickly to customers requests.

Empowerment was once known as directing→ i.e. telling employees exactly what to do( its still used in smaller firms)→ but in big firms they use empowerment because the

workers and others often know how to do their jobs better than the manager ever can.

Nevertheless, some leadership is necessary to keep the employees focused on the right priorities and time lives, while training employees, coaching them, motivating them, and performing the other leadership skills.

4. controlling:

It includes establishing a clear standards to determine whether an organization is: progressing toward its goals and objectives.

Rewarding people for doing a good job and taking corrective action if they are not doing a good job.

mainly it means measuring whether what actually occurs meets the organization's goals.

Now we will explain each function in more details.

I- planning:- it’s the first managing function → it involves setting the

organizational: vision mission goals and objectives.

Vision:- is a forward – looking statement, that provides an encompassing explanation of why the org. exists and where it is headed in the future.

Mission statement:- is an outline of the org's fundamental purpose. Here the org. describes "what business they are in.

a meaningful mission statement is developed with input from all the members of an organization, and should address the following components:-

Customer needs Company philosophy and goals The org's self-concept. Long – term survival The nature of the company's products or service. Social responsibility. Care for employees.

The mission statement can vary in length and content. It identify who your company is

what you stand for whatwhat you do

the mission statement becomes the foundation for setting an org. goals:-

Goals:- are the broad, long-term accomplishments an org. wishes to gain.

goals setting is a team process, they have to be agreed upon

by workers and management. To be able to establish the long-term goals we need a

shorter term steps, which are the objective.

To make goals and objectives most effective, we can use a frame work called SMART objectives. (Please see p.180 figure 6.3 "Read it”)

S → SpecificM→ MeasurableA→ Achievable R → Realistic T → Time.

SWOT & PEST :- Another part of planning and setting goals might be to deter-

mine how well the company is doing at any given point in time → this is done by using SWAT analysis.

SWOT is an analysis of the org:-

Strength Done internally.

Weaknesses

Opportunities Done externally

Threats from the external environment.

so the company begin this process by:- 1- analysis of its business in general, looking internally: what

does the company do well (:- i.e. strengths) what does the company do poorly (:- i.e. weaknesses)

2- Then an external environment analysis is performed → this analysis identifies external factors that could affect the business (:- i.e. the opportunities → such as using the internet to advertise or sell on e-Bay).

3- Looking at all existing external issues in a business's environment that would affect a business negatively (i.e. threats) such as increase in the raw material prices, or competition etc.

By performing a SWOT analysis, a company can better develop goals and objectives because managers can see the entire spectrum of their business both internally and externally.

The external environment of an organization is divided into 2 sections:-

1- Micro → i.e. specific environment, which is comprised of

factors such as the firm's customers, distributors, suppliers, competitions → all of these have direct impact on the firm's performance so it should pay close attention to these factors.

2- Macro → i.e. general environment which include factors

that affect an organization indirectly, such as: PoliticalEconomicSocio cultural PESTtechnological

- to understand the Macro environment, the company could use PEST analysis.

- The company should look at these four external areas to determine those things that may affect their business in the future.

political :- are factors that include political, legal, and regulatory issues and items, such as new laws being passed that could affect the businesses.

Economic: include factors such as interest rates unemployment rates, availability of credit, rates and so on to determine how these might impact the business.

Socio cultural: factors that include items such as number of births, number of deaths, number of marriages, number of divorces, immigration and emigration rats and so on.

Technology: include changes that can affect a business need, to be considered, e.g. the internet and how it has changed the way people communicate and do business.

So using both SWOT and PEST can help a business get a larger picture of those things that may require future planning.

Another way to view planning is to consider its types or forms: which are 4 forms

1- Strategic planning.2- tactical planning.3- Operational planning.4- Contingency planning.

1-Strategic planning: It is the setting of major, long-term goals for the

company by top managers. Often, these goals have to do with the long –term

growth of the company or new product offering. It provides the foundation for the policies, procedures

and strategies for obtaining and using resources to achieve those goals.

2-Tactical planning: It is 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.

These objectives are the short-term goals that must be achieved in order to meet the strategic plans and goals.

They are mainly done by middle management.

3-Operational planning: It is the process of setting work standards and

schedules necessary to implement the company's tactical objectives.

The operational plan is the manager's tool for daily and weekly operations which is mainly done by lower level management.

4-Contingency planning:

It is the process of preparing alternative courses of actions that may be used if the primary plans do not achieve the organization's objectives.

II- organizing: It is organizing the firm to accomplish their goals. Operationally, organizing means: allocating resources

( such as funds for various functions within departments), assigning tasks, and establishing procedures for accomplishing the organizational objectives.

Organization chart: Is a visual diagram that shows relationships among

people and divides the org's work; it shows who is accountable for the completion of specific work and who reports to whom.

The chart includes top, middle, and first-line or supervisory managers.

It also shows thespan of control: which is the number of subordinates a manager supervises.

- the span of control depends greatly on the: o type of company o experience of employees.o Type of the work supervised.

Top management:- - the highest level of management - it consists of the president and other key company

executives who develop strategic plans. Examples are:-

Chief Executive Officer (CEO): they are responsible for introducing change into an org.

Chief Operating Officer (COO): is responsible for putting the changes of the CEO into effect.

Their tasks include : - controlling operations - Rewarding people to ensure that every one strives to carry out the leaders’ vision. Chief Financial Officer (CFO):- he is responsible for

obtaining funds, planning budgets, collecting funds, and soon.

Chief Information Officer (CIO) or the Chief Knowledge Officer (CKO): is responsible for getting the right information to other mangers so they can make accurate decisions.

Middle management :- includes general managers

division managers district managersPlant managers.

They are responsible for tactical planning and controlling

Many firms have eliminated some middle managers through downsizing and have given the remaining managers more employees to supervise.

Lower management (supervisory management) or

first line management:- are those who are directly responsible for

operational planning, supervising workers, and evaluating their daily performance.

Tasks and skills at Different levels of management:- managers become deeply involved in showing others

o how to do things o helping them o supervising them o generally being very active in the operations

related tasks. The further up the managerial ladder a person moves,

the less he may use his original job skills. Managers must have 3 categories of skills:-

1- Technical skills :- o involves the ability to perform tasks in a specific

discipline (such as selling or developing a software) or department (such as marketing)

o this is especially important with supervisory managers because they work closely with employees

o Top- level managers may not need to use technical skills as much, as they are more focused on utilizing conceptual skills.

2- Human relations skills:- - involves communication and motivation. - These skills enable managers to:-

work with and through people. They include:- leadership

Coaching Morale building Delegating Training & developmentHelp & supportiveness.

- these skills are critical for all three levels of management.

3- Conceptual skills:- - Involves the ability to picture the org. as a whole and the

relationships among its various parts. - Conceptual skills are needed in : planning

Organizing Controlling System development problem analysis Decision making Coordinating Delegating.

- this skill is needed for top-level managers and may not be as necessary for first line supervisors.

A major part of the organizing function is the parameter with in which a manager must work

Organizational structure:- is the way a company is organized and where all employees fit into the bigger picture of the company. there are several types of organizational structures:

- line – and – staff structure:- is where the staff personnel advise and assist the line personal in meeting the goals of the org.

- line structure: are part of the chain of command that are responsible for directly achieving org. goals.

- Matrix organization:- here they team people from various departments to accomplish a common goal such as getting a project done for a client.

* An important element of org. structure is the process of departmentalization

Departmentalization:- means to "group" related jobs or work processed into separate units

Normally departmentalization is done by functions. # Functional departmentalization: is probably the most widely used grouping by small – to – medium size org.s because of its simplicity. * Functional structure:- is grouping of workers into departments based on similar tasks, expertise, or resources used (e.g. production dept, transportation dept., finance dept.) # Product departmentalization: - is when a firm groups individuals and tasks around its major product lines. # Customer departmentalization :- group activities around the major customers it serves in other words, types of customers it primarily caters to.

# Geographic departmentalization:- org. group the tasks and processes to meet the different needs of customers in different geographic regions. # Process departmentalization:- group activities by process, (i.e. the stages of production). * many firms use a combination of these departmentalization techniques – its called hybrid forms.

Another aspect of organizing is staffing. Staffing:- involves recruiting, hiring, motivating and retaining the best people available to accomplish the company's objectives.

Another aspect of organizing is diversity: Diversity:- is to build systems and cultures that unite different people in a common pursuit, with out undermining their individual strengths.

It includes:- differences in race

gender,Ethnicity Sexual orientation Abilities,Religions.

Having a diverse work environment is key to success, because the more diverse the workforce, the more ideas from a variety of back grounds can be generated.

III – leading :- A leader: is a person who can provide guidance to

employees through establishment of values and ethics, but also can manage change through vision.

Keys to good leadership include:- -Communicate a vision and gather others around that vision:- he should be sensitive to the concerns of followers, give them responsibility and win their trust. -Establish company values:- these values include a concern for employees, for customers, for the environment and for the quality of the company's products.-Promote corporate ethics:- it includes demand for honesty and an insistence that everyone in the company be treaded fairly.-Embrace change: a leader's most important job may be to transform the way a the company does business, so that the company becomes more effective( does things better ) and efficient( uses fewer resources to accomplish the same objectives )So a major challenge a manager may find is to help employees deal with change.Most of the time employees do not understand the need for change, or think change affect them negatively because they have to do things differently which makes it difficult for the manager to implement change.

But if employees- see a reason for change and have input into the change, they become more likely to accept it.So managers can help employees understand and accept anew change through:

Open communication.Participation.Feedback mechanisms.

IV- controlling: It involves: (1) measuring performance relative to the planned objectives and standards.

(2) Rewarding people for work well done. (3) Taking corrective action when necessary.

The control is very important for a successful management system because it provides the feedback that enables managers and workers to adjust to any changes in plans or in the environment that have affected performance.

It consists of 5 steps:

1. establishing clear performance standards: employees should know exactly what is expected of them.

2. Monitoring and recording actual performance, which is done by the manager.

3. Comparing results against plans and standards, which is also done by the manager.

4. communicating results and deviations to the employees involved:( if standards are not met, also done by the manager )

5. taking corrective action when needed and providing positive feedback:

What else do managers do?: The kind of tasks managers do will vary greatly with the type

of industry. Some managers may work directly with employees to get a

task done. In general: managers are responsible for:

a- setting the tone of ethics.b- Creating a positive environment.c- Also making sure high quality products are

being produced. As for the ethical frame work that managers should

establish: employees tend to look up to managers for both guidance and example.

As for managers ensuring a good work- life balance for employees:

- Work- life balance: is a person's control over the interactions between his/ her work life and family and personal life.

- It can be achieved when a person feel satisfied about their personal life while still feeling satisfied and fulfilled by their work life.

- Managers can create work- life balance issues when their expectations exceed what a person can accomplish with in a regular work week.

As for the task of a manager ensuring the good quality of products or services: This have to do with all the managerial functions.- Total quality management( TQM ): is a management

strategy whereby quality goods are ensured at every phase of the production process, even in service organizations.

- In TQM the manager must inspire employees to be concerned at every stage of production about providing excellent quality.

- The basis for TQM rests on attention to satisfying customer needs and continuous improvement in every thing the org. does.

****************************************************************************