AFM131 Lecture Notes - Lecture 10: Swot Analysis, Pest Analysis, Strategic Planning
19 Dec 2016
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Module 10: Management and Leadership
WHAT MANAGERS DO
Planning
- Setting organizational goals
- Developing strategies to reach those goals
- Determining resources needed
- Setting precise standards
Leading
- Guiding and motivating employees
- Giving assignments
- Explaining routines
- Clarifying policies
- Providing feedback on performance
Organizing
- Allocating resources, assigning tasks, and
establishing procedures
- Preparing an organization chart
- Recruiting, selecting, training, and developing
employees
- Placing employees where they will be most
effective
Controlling
- Measuring results against corporate objectives
- Monitoring performance relative to standards
- Rewarding outstanding performance
- Taking corrective action when necessary
1) Planning
• Anticipating trends and determining the best approaches to achieve organizational objectives
o Inform how you organize, lead, and control
2) Organizing
• Structure of the organization (to allocate resources)
• People and resources working cohesively
3) Leading
• Create a vision for the organization
• Guiding, training, coaching, and motivating others
4) Controlling
• Establishing clear standards to measure progress
o Rewarding people
o Taking corrective action
PLANNING
Vision—why the organization exists and where it is trying to head
• Stockholders shape the vision statement
Values—set of fundamental beliefs that guide a business in the decisions they make
• Help guide day-to-day decisions
• Consider various stockholders
Mission statement—outline of the organization’s fundamental purpose
SWOT analysis
• Internal assessment—strengths and weeknesses
• External assessment—opportunitities and threats
o PESTLE
o Porter’s five forces—competitors, products, suppliers, and customers
find more resources at oneclass.com
find more resources at oneclass.com
Goals—what a business wants to achieve (board, long-term accomplishments)
Figure 1. SMART goals
Objectives—how to achieve the goals (specific, short-term details)
Forms of planning
• Strategic planning—determining the major long-term goals
Example: Jamal is part of a management group that is examining whether his company, State
Engineering, should offer important new services to appeal to a different group of potential
clients
• Tactical planning—detailed, short-term statements about what is to be done, who is involved,
and how it will be done
• Operational planning—setting work standards and schedules; “daily assignments”
• Contingency planning—alternative courses of action
o Crisis planning—reacting to sudden changes in the environment
ORGANIZING—allocating resources to accomplish organizational goals
Level of management
1. Top management—strategic planning
2. Middle management—tactical planning
3. Supervisory (first-line) management—operational planning
4. Non-supervisory management
find more resources at oneclass.com
find more resources at oneclass.com
Management skills
• Technical skills • Human relation skill • Conceptual skills
LEADING—leaders are visionaries
Maslow’s hierchy of needs
• Self-actualization needs
• Esteem needs
• Social needs
• Safety needs
• Psychological needs
Leadership styles
• Autocratic—making decisions without consulting others
• Participative (democratic)—working together to make decisions
• Free-rein (laissez-faire)—managers set objectives, employees are free to do what it takes to
meet those objectives
Knowledge management—collecting the right information, making it readily accessible, and making
it known to everyone in the firm
CONTROLLING
1. Establish clear standards
2. Monitor and record performance
3. Compare results against standards
4. Communicate results
5. Take corrective actions
Balanced scorecard
• Financial and non-financial measures
• Balanced view of organizational effectiveness
• Long-term performance
find more resources at oneclass.com
find more resources at oneclass.com
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AFM131 Full Course Notes
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Document Summary
Allocating resources, assigning tasks, and establishing procedures. Placing employees where they will be most effective. Taking corrective action when necessary: planning, anticipating trends and determining the best approaches to achieve organizational objectives. Vision why the organization exists and where it is trying to head: stockholders shape the vision statement. Values set of fundamental beliefs that guide a business in the decisions they make: help guide day-to-day decisions, consider various stockholders. Internal assessment strengths and weeknesses: external assessment opportunitities and threats, pestle, porter"s five forces competitors, products, suppliers, and customers. Goals what a business wants to achieve (board, long-term accomplishments) Objectives how to achieve the goals (specific, short-term details) Forms of planning: strategic planning determining the major long-term goals. Example: jamal is part of a management group that is examining whether his company, state. Level of management: top management strategic planning, middle management tactical planning, supervisory (first-line) management operational planning, non-supervisory management. Management skills: technical skills, human relation skill, conceptual skills.
