Management basics

These slides are meant to highlight and

complement material from the main text.
Content is more fully explained in the main
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refer back to the main text for an explanation.

Susan Quinn
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Worth noting
Management is a universal term applied to
for-profit, not-for-profit and governmental
organizations.
An example of a not-for-profit organization is a
charity. This organization is supposed to raise
money or solicit enough funds to conduct their
business, but it is not designed to make a
profit.
A for-profit organization is supposed to make a
profit, although not all of them are successful
at this.
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Managers/leaders are found at

all levels and have different titles
Team or area

leader
Front-line
supervisor
Mid-level manager
Department head

Vice-President
President
Chief Executive

Officer
Managing Director
Deputy Officer
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Where did the day go?

Management functions
Planning
Organizing
Leading/Motivating
Controlling

Management Skills
Conceptual
Technical
Human Relations

Mgmt. skill - Conceptual

Being able to see accurately into the future.

Big picture thinking.

The ability to plan and figure out the best

direction for the organization.

Mgmt. skill - Technical

Possessing the necessary technical skills for

the position.
This does not necessarily mean the ability to

actually do the jobs of the people being

supervised but rather it is the ability to
understand how those jobs are done and what
they entail.
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Mgmt. skill Human

relations
The ability to lead and motivate the

employees supervised.
Also includes the ability to deal well with ALL
people others in the organization at all
levels, customers, other industry
professionals, etc.
This means possessing good communication
and conflict resolution skills as well as the
ability to act with integrity and authenticity.

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Mgmt. function Planning

Benefits of organizational planning.
Helps to answer these questions:
Where are we going? (What is the purpose of the
organization? What is NOT the purpose of the
organization?)
How are we going to get there? (Co-ordinates
efforts so that everyone is aiming for the same
goals).
What is our competitive advantage?
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Mgmt. function
Planning
Also:
Aids decision-making

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Strategic planning
process
SWOT
Grand strategy
Mission statement
Action plan

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SWOT
Internal
analysis
Strengths

External
analysis
Opportunities

Weaknesses

Threats

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SWOT internal analysis

What is good about our company (strength)?
Or not so good (weakness)?
Some factors to consider include:
Employees
Unions
Shareholders
Organizational culture
Companys technology and equipment
Processes and policies
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SWOT external analysis

What exists outside the organization that is
beneficial (opportunity) or not beneficial
(threat)?
Some factors to consider include:
Customers and market demand
Suppliers
Competitors
Pressure groups
Environment
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SWOT external analysis (contd)

Economic conditions
Government legislation
Media
Technological developments
Sociological and demographic conditions
Trade associations
Local communities

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Possible Grand Strategies

As a result of the SWOT analysis and weighing
the factors, the organization then decides on a
strategy. Capitalize on strengths and
opportunities (if possible), balancing
weaknesses and threats.

Choose one of the following or a

combination of:
Growth
Stability
Retrenchment

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Mission statements
As a result of the SWOT and grand strategy, the
mission statement is a sentence (or two) that
defines the company.
Clearly defines company to everyone
Wording is simple and jargon-free
May include values or principles of the

organization

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Mission statement
examples
Good examples
U.K.s Marks & Spencer
says: As one of the UK's
leading retailers, we sell
stylish, high quality, great
value clothing and home
products, as well as
outstanding quality food,
responsibly sourced from
around 2,000 suppliers
globally.

Bad example

To provide the best quality

product to our customers.
(Whats the product?
Geographic area? How
might they provide this?
Who are the customers?
Not all of these points
need to be addressed.)
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Action plan
How is the organization going to accomplish
what it has set out in the grand strategy and
the mission statement? (These are the big
goals).
How will the different groups pull in the same
direction to accomplish the goals?
Who is going to do what?
Flowing from the big goals, performance goals
for individuals can be set. (These are the
smaller goals).
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Action plan (contd)

The action plan provides specifics for achieving
the goals. These specifics ensure accountability
and are described as smart goals.
The short form is:
S specific
M measurable
A achievable, attainable
R realistic
T time framed
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Action plan (contd)

Example for the sales department:
Increase sales by 10% by the end of Mar. 1,
this year.
Example for a salesperson:
Increase sales to existing customers by 1%
and to new customers by 2% by the end of
Mar. 1, this year.

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Action plan (contd)

Example for all departments:
Increase ratings in employee satisfaction
survey by 5% on the next survey.
Example for a specific department:
Increase rating on question 4 by 2% and on
question 11 by 3% on the next survey, while
maintaining other scores.
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Action plan (contd)

The action plan outlines the goal to be achieved, it

does not tell the employee HOW to get there.

Think of taking a car drive. You tell the person that

You are to go from A to B, but you leave it up to

the person to figure out the best way to get there.
This is the same for an individual action plan.
The employee should be supported by good

guidance, training and supervision.

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Strategic
planning
process

A good strategic
planning process
provides a clear
road map for
the organization
and the
employees in the
organization.
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Mgmt. function Organizing

How are we going to best get the work

done?
What kind of a structure will we need to

accomplish our goals? (This explains why

goal-setting comes first).

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Bureaucracy
One of the most common, and oldest,

structures is the bureaucracy, or bureaucratic

structure.
This doesnt mean that it is the best structure

but it is common so it may be easy to

understand.

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Bureaucracy (contd)
Four basic types
Functional
Product
Customer
Geographic
A large organization may
have a combination of
these types.

Head

Manag
er

Worker

Worker

Manag
er

Worker

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Rules of a bureaucracy
Chain of command
Unity of command
Span of control

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Rules of a bureaucracy
Chain of command

Who reports to who.

Unity of command

A person should report to one and only one

boss.
Span of control

The number of employees that the

leader/manager supervises.
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Other possible structures

alternatives to the bureaucracy.
Group or

team
structure
Matrix
Project
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Mgmt. function Leadership

Leadership is the ability to encourage,
inspire and motivate others to work
towards an established goal.

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Mgmt. function Leadership

A manager is very different. A
manager is a person concerned with
administrative functions. Leaders
and managers are not the same
thing.

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Different theories of
leadership
Three different styles - autocratic, democratic, and
participative (participative is sometimes given the laissezfaire label) leadership styles. Theories are attributed to
Tannenbaum and Schmidt and to Kurt Lewin.
Two other theories are situational and contingency styles of
leadership. Attributed to Hersey and Blanchard and
Fiedler. These styles propose that leaders change their
leadership style depending on various factors in the
environment.

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Different theories of
leadership (contd)
Transactional vs. transformational theories of
leadership.
The transactional theory uses clear goal setting
coupled with appropriate use of rewards and
punishments.
The transformational theory states that the
leader sees the need for change, gets the
appropriate people on board with the change
and everyone works to bring about the
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Motivation
Motivation is tied to successful leadership.
Managers and leaders have different ideas
about how employees are motivated. Various
approaches and theories can be combined by
the manager/leader.
(The theories are not easily summarized
please see text for fuller explanation).
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Motivation
Research indicates that good leaders are
successful at creating an atmosphere where
employees feel motivated to do well.

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Motivation theories
Intrinsic and extrinsic motivation theory:
An employee who is intrinsically motivated
gets satisfaction from knowing the job they
did was well done.

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Motivation theories
An employee who is extrinsically motivated gets
satisfaction from other people rewarding them
(with, for instance, being given money, a
promotion, a bigger office).

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Motivation theories
(contd)
Content theories:
Hierarchy of Needs Maslow
Five levels of needs diagrammed as a
pyramid.
Theory X and Theory Y McGregor
Opposite views of the role of the manager
and the
attitudes of employee
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Motivation theories
(contd)
Content theories (contd):
Motivation/hygiene Herzberg
Also described as satisfier/dissatisfier. A
different spin on Maslows theory.
Job design theory
Job specialization, enlargement or enrichment
may influence motivation. These are very
different approaches!
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Motivation theories
(contd)
Content theories (contd):
Job characteristics model
Skill variety, task identity, task significance,
autonomy, feedback built into job may
increase motivation.

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Motivation theories
(contd)
Process theories:
Equity
Concepts of internal and external equity

Expectancy
Setting realistic expectations and rewarding
performance
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Mgmt. function - Control

Control process brings the organization full
circle. This is the process of measuring actual
performance in order to check to make sure
that what was outlined and detailed in the
planning process has happened. If it hasnt
happened, then an examination is made to
see what occurred and corrective action can
be taken.

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Control (contd)
If there is no difference between what was
supposed to happen (from the planning
process) and what actually happened (from
the control process), this means that the
employees achieved the plan.
The first proactive step in this case is to give
positive feedback to the employees!! Perhaps
something like a reward, party, bonus or even
just a compliment could be used.
Be careful about simply increasing the goals
this could de-motivate the employees.
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Control (contd)
If there is a difference between what was supposed to
happen (from the planning process) and what
actually happened (from the control process), then a
number of factors could be examined. For example:
Perhaps the goal was unrealistic and needs to be
adjusted. Perhaps some factors changed that made
the goal unattainable.
Perhaps the employee needs training to be able to
achieve the goal.
Perhaps the technology or equipment needs to be
replaced, better maintained or updated.
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Control (contd)
A good control process measures what
matters.
If an organizations goal for instance is to
increase customer satisfaction, then this must
be measured somehow.
If a company wants to be the most efficient,
then there would probably be a few different
measurements that would have to be in place
to measure their efficiency.

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Control (contd)
Some tools often used in control process
Flowcharting
Critical path planning

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Control (contd)
With advanced computer systems today,

measuring performance and providing almost

instant information and statistics is easy.
Feedback can be given on performance.
If adjustments/corrections/improvements in
performance are needed, these can be made
at an early stage when it is much easier to do.
Go back to the plan and make sure everything
is on course to achieve the plan.
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Is it any wonder where the

day went?

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