understanding canadian business

UnderstandingCanadian BusinessChapter 8Management and Leadership

Learning Goals1. Explain how changes in the business environment

are affecting management function.

2. Describe the four functions of management.

3. Describe the different types of planning and the importance of decision making.

4. Describe the organizing function of management and the three skills needed by managers.

5. Explain the differences between leaders and managers and describe leadership styles.

6. Summarize the five steps of the control function of management.

Managers’ Roles are Evolving

• Every business has scarce resources, and management is about deciding how to effectively use the resources.

• Managers are educated to:

– Guide

– Train

– Support

– Motivate and

– Coach employees

Managers’ Roles are Evolving

• Most modern managers emphasize

• Many companies don’t hesitate to lay off employees, and employees don’t hesitate to leave if their needs are not being met.

Teamwork and Cooperationvs

Discipline and Giving Orders

Managers’ Roles are Evolving• Management will demand a new kind

of person:

– A skilled communicator

– Team player as well asa planner

– Coordinator

– Organizer and

– Supervisor.

Management• The process used to accomplish

organizational goals through:– Planning

– Organizing

– Leading and

– Controlling people and resources.

What Managers Do

How to Write a Great Business Vision StatementSusan L. Reid

PlanningCreate Vision

• Set vision, goals, objectives

• Vision/mission: why organization exists, purpose of organization

• Goals: broad, long-term aims

• Objectives: specific, short-term statements

How to Write a Great Mission StatementSusan L. Reid

Lego Mission Statement

‘Inspire and develop the builders of tomorrow’• Our ultimate purpose

is to inspire and develop children to think creatively, reason systematically and release their potential to shape their own future - experiencing the endless human possibility.

Lego Vision Statement‘Inventing the future of play’

• We want to pioneer new ways of playing, play materials and the business models of play - leveraging globalisation and digitalisation...it is not just about products, it is about realising the human possibility.

SWOT AnalysisA planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats.

SWOT Analysis• Strengths

–What is their strongest business asset?

–What do they offer that makes them stand out from the rest?

–What unique resources do they have?

– Do they have any specific marketing expertise?

– Do they have a broad customer base

SWOT Analysis• Weaknesses

–What can be improved?

– In what areas do their competitors have the edge?

–What necessary expertise / manpower do they currently lack?

– Do they have cash flow problems?

– Are they relying primarily on just a few clients or customers?

SWOT Analysis• Opportunities

–What trends do you see in their industry?

–What trends might impact their industry?

–What external changes present interesting opportunities?

–What have you seen in the news recently that might present an opportunity for them?

SWOT Analysis• Threats

–What obstacles do they face?

–What is the competition doing that they are not?

–What challenges can be turned into opportunities?

–Are external economic forces affecting their bottom line?

Assignment to be Completed in Teams of 2

• Complete a SWOT analysis on one of the following choices:

1. Subway and Pita Pit

2. McDonald’s and Big League

3. Starbucks and Second Cup

4. Swiss Chalet and St. Hubert

5. Lego and Mega Bloks

6. Pizza Hut and Dominos

Forms of Planning

PlanningA Vision for the Organization• Long-term plans - set the major goals

and the strategy to obtain those goals

• Short-term plans - detailed plan, who does what, when and how will it be done

• Contingency plans - alternative plans (including crisis plans) to remain flexible and react to new opportunities and challenges

Organizing• Trend toward self-managed

teams

• Stakeholders – who is affected by the organization

• Staffing - hiring and keeping good employees

• Managing a variety of situations

OrganizingCreating a Unified System• Organizational Chart

– A visual device that shows the relationship and divides the organization’s work; it shows who is accountable for the completion of specific work and who reports to whom.

Crisis Planning• Crisis Planning is part

of contingency planning.

• It involves reacting to sudden changes in the environment.

• What is the difference between a manager being proactive vs reactive?

Decision Making:Finding the Best Alternative

Term DefinitionDecision 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.

Brainstorming Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.

PMIPlusMinusImplications

Listing all of the pluses for a solution in one column, all the minuses in another, and the implications in a third column.

Decision Making:Finding the Best Alternative

Levels of Management

Tasks & SkillsAt Different Levels of Management

1. Technical skills involve the ability to perform tasks:

1. In specific discipline (such as selling a product or developing software) or

2. Department (such as marketing or information systems)

Tasks & SkillsAt Different Levels of Management

2. Human relations skills involve communication and motivation; they enable managers to work through and with people.

Skills are also associated with leadership, coaching, morale building, delegating, training and development, and help and supportiveness.

Tasks & SkillsAt Different Levels of Management

3. Conceptual skills involve the ability to picture the organization as a whole and the relationships among its various parts.

Conceptual Skills are Needed in:

StaffingGetting and Keeping the Right People

• Staffing is a management function that includes hiring, motivating, and retaining the best people available to accomplish the company’s objectives.

• Many people are not willing to work at companies unless they are treated well and get fair pay.

StaffingGetting and Keeping the Right People

• Employees may leave to find companies that offer them a better balance between work and home.

• Staffing is becoming a greater part of each manager’s assignment, and all managers need to cooperate with human resources to win and keep good workers.

Job Interview Advice

Defining Your Unique Selling Points

Assignment• In teams of 2

• Develop 10 interview questions &

• Find 1 local job ads for high school students on one or a combination of the websites below:

• Times and Transcript - http://timestranscript.canadaeast.com/classifieds/employment/&pub=3

• Workopolis – www.workopolis.com

• Monster – www.monster.ca

• Kijiji – www.monctonkijiji.ca

• Handwrite or print answers and submit by Friday, October 3

LeadingProviding Continuous Vision & Values

• Communicate a vision and rally others around that vision.

– In doing so, the leaders should be openly sensitive to the concerns of followers, give them responsibility, and win their trust.

• Establish corporate values.

– The values include a concern for employees, for customers, for the environment, and for the quality of the company’s products.

LeadingProviding Continuous Vision &Values• Promote corporate ethics.

– Ethics include an unfailing demand for honesty and an insistence that everyone in the company is treated fairly.

• Embrace change.

– A leader’s most important job may be to transform the way the company does business so that it’s more effective and efficient.

Leadership StylesTerm Definition

Autocratic Leadership Involves making managerial decisions without consulting others.

Participative (democratic) leadership

Consists of managers and employees working together to make decisions.

Free-rein (laissez-faire) leadership

Involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

Leadership Styles

EnablingGiving workers the education and tools they need to make decisions.

Reasons for Empowering Non-Supervisory Employees

• It leads to better decisions made by those closest to the customer

• Fewer, busier managers

• Predominance of knowledge workers

• Leads to better decisions and more valuable employees

The 12 Rules of Leadership1. Set a good example

2. Give your people a set of objectives and a sense of direction

3. Keep your people informed of new developments of the company and how they’ll affect them

4. Ask your people for advice

5. Let your people know that you support them

6. Don’t give orders

7. Emphasize skills, not rules

8. Give credit where credit is due

9. Praise in public

10. Criticize in private

11. Criticize constructively

12. Make it welcome that you welcome new ideas

The 7 Don’ts of Leadership

1. Trying to be liked rather than respected

2. Failing to ask subordinates for their advice or help

3. Failing to develop a sense of responsibility in subordinates

4. Emphasizing rules rather than skill

5. Failing to keep criticism constructive

6. Not paying attention to employee gripes and complaints

7. Failing to keep people informed

Knowledge Management1. Finding the right information

2. Keeping the information in a readily accessible place and

3. Making the information known to everyone in the firm.

ControllingMaking Sure it Works

Are standards realistic?FEEDBACK

Measuring Customer Satisfaction

• Measuring success in a customer-oriented firm is customer satisfaction.

• This includes satisfaction of both external and internal customers.

– External customers are dealers, who buy products and sell to others, and ultimate customers (or end users), who buy products for their own personal use.

– Internal customers are individuals and units within the firm that receive services from other individuals or units.