PERSONAL GOALS AND ASPIRATIONS OF TOP MANAGEMENT PRESENTED BYVILAY GUPTA

What is Management?All managers work in organizationsOrganizations collections of people who work together and coordinate their actions to achieve a wide variety of goals

ManagersManagers The people responsible for supervising the use of an organizations resources to meet its goals

What is Management?The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

What is Management?Resources include people, skills, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees

Organizational PerformanceA measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals

Managerial TasksManagers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling

Four Functions of Management

PlanningProcess of identifying and selecting appropriate organizational goals and courses of action

Steps in the Planning ProcessDeciding which goals the organization will pursueDeciding what courses of action to adopt to attain those goalsDeciding how to allocate organizational resources

PlanningComplex, difficult activityStrategy to adopt is not always immediately clearDone under uncertainty

OrganizingTask managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals

OrganizingInvolves grouping people into departments according to the kinds of job-specific tasks they performManagers lay out lines of authority and responsibilityDecide how to coordinate organizational resources

Organizational StructureA formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals

LeadingArticulating a clear organizational vision for its members to accomplish, and energize and enable employees so that everyone understands the part they play in achieving organizational goals

LeadingLeadership involves using power, personality, and influence, persuasion, and communication skills Outcome of leadership is highly motivated and committed workforce

ControllingTask of managers is to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performanceThe outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness

Levels of Management

Levels of ManagementFirst line managers - Responsible for daily supervision of the non-managerial employees who perform many of the specific activities necessary to produce goods and services Middle managers - Supervise first-line managers. Responsible for finding the best way to organize human and other resources to achieve organizational goals

Levels of ManagementTop managers Responsible for the performance of all departments and have cross-departmental responsibility. Establish organizational goals and monitor middle managersDecide how different departments should interactUltimately responsible for the success or failure of an organization

Levels of ManagementChief executive officer (CEO) is companys most senior and important managerCentral concern is creation of a smoothly functioning top-management teamCEO, COO, Department heads

Relative Amount of Time That Managers Spend on the Four Managerial Functions

Managerial SkillsConceptual skillsThe ability to analyze and diagnose a situation and distinguish between cause and effect.Human skillsThe ability to understand, alter, lead, and control the behavior of other individuals and groups.Technical skillsJob-specific skills required to perform a particular type of work or occupation at a high level.

Skill Types Needed

RESPONSIBILITIES OF TOP MANAGEMENT1 - FULFILLS KEY ROLES

INTERPERSONAL ROLESFIGUREHEADLEADER:LIAISONINFORMATIONAL ROLESMONITOR DISSEMINATORSPOKESPERSONDECISIONAL ROLESINNOVATOR / ENTREPRENEUR (PLANNER)DISTURBANCE HANDLER (CRISIS MANAGER)RESOURCE ALLOCATOR (SLICING-THE-PIE)NEGOTIATOR (BARGAINER)

RESPONSIBILITIES OF TOP MANAGEMENT 2 PROVIDES CORPORATE LEADERSHIP

ARTICULATES A TRANSCENDENT GOAL FOR THE FIRMPROVIDES A VISION OF THE FUTURESEES THE FIRM NOT AS IT ISBUT AS IT CAN BECOME

COMMUNICATES HIGH PERFORMANCE STANDARDSSHOWS CONFIDENCE IN SUBORDINATESPROVIDES GOALS, AUTONOMY, MENTORING

PRESENTS A ROLE FOR OTHERS TO INDENTIFY WITH SETS AN EXAMPLE IN BEHAVIOR AND DRESSCOMMUNICATES VALUES CLEARLY IN WORDS & DEEDS

RESPONSIBILITIES OF TOP MANAGEMENT 3 MANAGES STRATEGIC PLANNING

INITIATES/MANAGES THE STRATEGIC PLANNING PROCESS

SEEKS INFORMATIONLONG-RANGE PLANNING STAFFDIVISIONAL (SBU) MANAGERSFUNCTIONAL AND DEPARTMENTAL MANAGERSTOP MANAGEMENT TEAM

APPROACHES TO STRATEGY FORMULATIONTHE MASTER STRATEGISTCEO personally shapes the planDepends on skills and vision of one person

DELEGATE IT TO OTHERSUses a planning staff or task forcesLack of top-down direction and leadership

COLLABORATIVE APPROACHInvolve key people --- seek group consensusCan political games and compromises be avoided?

THE CHAMPION APPROACHEncourage subordinate managers to develop their own strategiesWill a coherent, unified strategy emerge?

USING A STRATEGIC PLANNING STAFFTHE PLANNING STAFF SHOULD:Help gather and organize informationAnalyze industry and competitive conditionsAdminister annual reviews of strategyDistribute information on the firms strategic performance

THE PLANNING STAFF SHOULD NOT:Prepare strategic plans for someone else to implementUsurp the responsibilities of operating managersMake strategic decisions

POTENTIAL PROBLEMS:A planning staff cannot be held accountable for results because they have no authority to implement.Non-acceptance by managers who do not feel ownership in the strategic plan

ROLE OF THE BOARD IN STRATEGIC MANAGEMENTDETERMINE AND APPROVE THE ORGANIZATIONS MISSION AND STRATEGIC OPTIONS

EVALUATE AND INFLUENCE KEY MANAGEMENT DECISIONS AND ACTIONS

MONITOR AND EVALUATE THE ENVIRONMENT SURROUNDING THE ORGANIZATION

MONITOR AND EVALUATE THE OVERALL PERFORMANCE OF THE ORGANIZATION

BOARDS DIRECT THE AFFAIRS OF THE FIRM, BUT DO NOT MANAGE THEM

PHANTOM BOARDMay not even meet! Never knows what to do. No involvement.

RUBBER-STAMP BOARD(Ceremonial 8 %)Permits officers to make all decisionsVotes the officers recommendationsNo board agenda

MINIMAL REVIEW BOARD(Passive 21 %)Reviews issues brought to its attention by the officersMembers are notified what is on the agenda.but often come unprepared

NOMINAL PARTICIPATION BOARD(Somewhat Active 45 %)Reviews performance of selected key decisions independentlyOccasionally questions officers actions and strategiesInformal groups form within the boardBOARD INVOLVEMENT IN STRATEGIC MANAGEMENT

ACTIVE PARTICIPATION BOARD(Very Active 21 %)Has active board sub-committeesConducts its own audits Gathers information about the organization independentlyQuestions officers regularly on a wide variety of topicsMakes final strategic decisionsCATALYST BOARD(Critical Contributor 5 %)Takes a leading role in establishing and modifying the mission, objectives, and strategies of the organizationHas very active strategic planning sub-committeesOfficers do not propose or formulate strategiesbut are expected to implement them for the board

BOARD INVOLVEMENT IN STRATEGIC MANAGEMENT

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -HIGHENTREPRENEURALPARTNERSHIPINVOLVEMENTBY TOP MGMTCHAOTICMARIONETTELOW- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -LOW HIGHINVOLVEMENT BYBOARD OF DIRECTORSSTRATEGIC MANAGEMENT STYLES

BOARD COMMITTEESEXECUTIVEFINANCEAUDITNOMINATINGCOMPENSATIONSTRATEGIC PLANNINGINVESTMENTETHICS AND SOCIAL RESPONSIBILITY

BOARDSBOARD MEMBERSHIPInside MembersOutside MembersAffiliated Non-ManagementIndependentCo-determinationInterlocking Directorates

BOARD SIZEPrivate (8 members, meets 4 times/year)Public (13 members, meets 6-7 times/year)

NOMINATIONCEOBoard Committee

ELECTIONSSimultaneous vs. Staggered TermsStraight vs. Cumulative Voting

A GOOD DIRECTOR.1999 KORN/FERRY BOARD SURVEY

95 %Is willing to challenge management when necessary 67 %Has special expertise important to the company57 %Is available outside meetings to advise management41 %Has expertise on global business issues39 %Understands the firms key technologies and processes33 %Brings external contacts that are potentially valuable to the firm31 %Has detailed knowledge of the firms industry31 %Has high visibility in his or her field18 %Is accomplished at representing the firm to stakeholders

TRENDS FOR FUTURE DIRECTORS1BOARDS HELD TO HIGHER STANDARDS OF CONDUCTSociety will pay more attention---lawsuits for negligence

2DIRECTORS WILL FEEL RESPONSIBILITY FOR/TO THE CORPORATION AS A WHOLENot just to the stockholders

3GREATER ACTIVITY IN STRATEGIC PLANNING

4MORE TRAINING AND ORIENTATION OF BOARD MEMBERS TO THEIR DUTIESCertification of directors for their board responsibilities

5MORE USE OF NOMINATING COMMITTEES TO SELECT CANDIDATES FOR DIRECTOR POSITIONS

6DIRECTORS WILL BE MORE INDEPENDENT OF THE CEO

THANK YOU

**Henri Fayol outlined the four managerial functions in his book General Industrial Management*Major part of the middle managers job is developing and fine-tuning skills and know-how, such as manufacturing or marketing expertise, that allow the organization to be efficient and effective*