COMMERCE 1B03 Study Guide - Final Guide: Iso 9000, Toshiyori, Quality Management

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Published on 18 Apr 2013
School
McMaster University
Department
Commerce
Course
COMMERCE 1B03
Professor
Page:
of 6
Chapter 12 Management and Leadership
Manager’s Roles Are Evolving
Resources a general term that human resources, natural resources, and financial resources
Management is about deciding how to effectively use these scarce resources
Managers are educated to guide, train, support, motivate, and coach employees rather than tell them what to do
Management is an assignment; coaching is a choice
Modern managers emphasize teamwork and co-operation rather than discipline and giving orders
Traditional long-term contracts between management and employees- and the accompanying rust- are often no
longer there
o Increases the difficulty of the management task because managers must earn the trust of their employees,
which includes rewarding them and find other ways to encourage them tow stay in the firm
Functions of Management
Peter Drucker says that managers give direction to their organizations, provide leadership, and decide how to use
organizational resources to accomplish goals
Management the process used to accomplish organizational goals through planning, organizing, leading, and
controlling people and other organizational resources
Planning a management function that includes anticipating trends an determining the best strategies and tactics
to achieve organizational goals and objectives
Leading creating a vision for the organization and building, training, coaching, and motivating others to work
effectively to achieve the organization’s goals and objectives
Controlling a management function that involves establishing clear standards to determine whether or not an
organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking
corrective action if they are not
Planning
Setting organizational goals
Developing strategies to reach those goals
Determining resources needed
Setting precise standards
Organizing
Allocating resources, assigning tasks and
establishing procedures for accomplishing goals
Preparing a structure (organization chart)
showing lines of authority and responsibility
Recruiting, selecting, training, and developing
employees
Placing employees where they’ll be most
effective
Leading
Guiding and motivating employees to work
effectively to accomplish organizational goals
and objectives
Giving assignments
Explaining routines
Clarifying policies
Providing feedback on performance
Controlling
Measuring results against corporate objectives
Monitoring performance relative to standards
Rewarding outstanding performance
Taking corrective action when necessary
Planning: Creating A Vision Based On Values
Vision an encompassing explanation of why the organization exists and where it’s trying to head
Value a set of fundamental beliefs that guide a business in the decision they make
Mission Statement an outline of the fundamental purposes of an organization
o Developed by top management with some input from employees
o Should address the following:
The organization’s self-concept
Company philosophy and goals
Long-term survival
Customer needs
Social responsibility
The nature of the company’s product or service
Goals the broad, long-term accomplishments an organization wishes to attain
Objectives specific, short-term statements, detailing how to achieve the organization’s goals
o Must be measurable
Questions ask:
o 1. What is the situation now? What trends are being observed in the business environment? What
opportunities exist for meeting customers’ needs? What products and customers are most profitable or will
be profitable? What threats are there to our business? Framing SWOT analysis
SWOT Analysis strength, weaknesses, opportunities, and threats- how can strengths be used and capitalized on,
how can weaknesses be improved, how can opportunities be exploited and how can threats be mitigated
SWOT Analysis a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and
threats
PRIMO-F people, resources, innovation and ideas, marketing, operation, operation, and finance
Environmental analysis PESTLE - political, economic, social, technological, legal, and environmental
o 2. How can we get there from here? most important part of planning come in 4 forms: strategic,
tactical, operational, and contingency
Strategic planning the process of determining the major goals of the organization and the policies and strategies
for obtaining and using resources 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
Operational Panning the process of setting work standards and schedules necessary to implement the company’s
tactical objectives
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
Crisis Planning involves reacting to sudden changes in the environment
A vision (where we are going) in combination with values (how we will treat our stakeholders) and the mission
statement (our purpose is), provides direction for the company
Company’s objectives what we want to accomplish) are linked to its strategy (how we will accomplish the
objectives)
Decision Making: Finding The Best Alternative
Decision Making choosing among tow or more alternatives
Seven Ds
o 1. Define the situation
o 2. Describe and collect needed information
o Develop alternatives
o Develop agreement among those involved
o Decide which alternative is best
Do what’s indicated (begin implementation)
o Determine whether the decision was a good one and follow up
Strategic Planning:
The setting of broad,
long-range goals by
top managers
Tactical Planning:
The identification of
specific, short-range
objectives by lower
managers
Contingency Planning:
Backup plans in case
primary plans fail
Operational Planning:
The setting of work
standards and
schedules
Problem Solving the process of solving the everyday problems that occurs. Problem solving is less formal than
decision making and usually calls for quicker action
Brainstorming coming up with a s many solutions to a problem as possible in a short period of time with no
censoring of ideas
PMI listing all the pluses for a solution in one column, all the minuses in another, and the interesting iin a third
column
Organizing: Creating a Unified System
Organization Chart - a visual device that shows relationships among people and divides the organization’s work; it
shows who is accountable for the completion of specific work and who reports to whom
Top Management highest level of management, consisting of the president and other key company executives,
who develop strategic plans
Middle Management the level of management that incudes general managers, division managers, and branch and
plant managers, who are responsible for tactical planning and controlling
o CEO chief executive officer president of firm and responsible fro all top-level decision, introducing
change into org
o COO chief operating officer putting those changes into effect, structuring work, controlling operations,
and rewarding ppl (eliminating role to CEO and CFO)
o CFO chief financial officer responsible obtaining funds, planning budges, collecting funds
o CIO chief information officer getting right info to other managers so they make correct decisions
o CKO chief knowledge officer getting right info to other managers so they make correct decisions
Middle Management the level of management that includes general managers, division managers, and branch
and plant managers, who are responsible for tactical planning and controlling
Supervisory Management managers who are directly responsible for supervising workers and evaluating the daily
performance
Tasks and Skills at Different Levels of Management
The further up the managerial ladder a person moves, the less important his or her original job skills become
1. Technical Skills skills that involve the ability to perform task in a specific discipline or department
2. Human Relations Skills skills that involve communication and motivation; they enable managers to work
through and with people
3. Conceptual Skills skills that involve the ability to picture the organization as a whole and the relationships
among its various parts
Leading: Providing Continuous Vision and Values
Management is the carrying out of the leadership’s vision
Characteristics of successful leaders:
o Self-esteem, need to achieve, screening for opportunity, internal locus of control, goral orientation,
optimism, courage, tolerance to ambiguity and strong internal motivation
Leaders are motivated by intrinsic values: needs, desires, motive, and will power: as opposed to extrinsic values:
rewards and recognition
Leaders must:
o Communicate a vision and rally others around that vision openly sensitive to concerns of followers, give
them responsibility, and win their trust
o Establish corporate values include a concern for employees, customers environment, and quality of
company’s products
o Promote corporate ethics - an unfailing demand for honesty and an insistence that everyone in the
company is treated fairly
o Embrace transformational change most important job because the company should do business in the
most effective and efficient way
The Importance of Middle Managers to Leadership
Middle Managers are an essential link to making change throughout the organization and a raining groud for
executives of the future

Document Summary

Resources a general term that human resources, natural resources, and financial resources. Management is about deciding how to effectively use these scarce resources. Managers are educated to guide, train, support, motivate, and coach employees rather than tell them what to do. Management is an assignment; coaching is a choice. Modern managers emphasize teamwork and co-operation rather than discipline and giving orders. Traditional long-term contracts between management and employees- and the accompanying rust- are often no longer there. Increases the difficulty of the management task because managers must earn the trust of their employees, which includes rewarding them and find other ways to encourage them tow stay in the firm. Peter drucker says that managers give direction to their organizations, provide leadership, and decide how to use organizational resources to accomplish goals. Management the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.