Understanding
Canadian Business
Chapter 8
Management and Leadership
Learning Goals
1. 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
Teamwork and Cooperation
vs
Discipline and Giving Orders
• Many companies don’t hesitate to lay
off employees, and employees don’t
hesitate to leave if their needs are not
being met.
Managers’ Roles are Evolving
• Management will demand a new kind
of person:
– A skilled communicator
– Team player as well as
a 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
Planning
• Setting
organizational
goals
Organizing
Leading
• Developing
strategies to
reach goals
• Allocating
resources,
assigning tasks
and establishing
procedures for
accomplishing
goals
• Guiding and
motivating
employees to
work effectively
to accomplish
organizational
goals and
objectives
• Determine
resources
needed
• Preparing an
organizational
chart
• Setting
standards
• Recruiting,
selecting,
training, and
developing
employees
• Explaining
routines
• Placing
employees
where they’ll be
most effective
• Providing
feedback on
performance
• Giving
assignments
• Clarifying
policies
Controlling
• Measuring
results against
corporate
objectives
• Monitoring
performance
relative to
standards
• Rewarding
outstanding
performance
• Taking corrective
action when
necessary
How to Write a Great
Business Vision Statement
Susan L. Reid
Planning
Create 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 Statement
Susan 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 Analysis
A 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
Strategic
Planning
The setting of
broad, long-range
goals by top
managers
Tactical Planning
The identification
of specific, shortrange objectives
by lower
managers
Operational
Planning
The setting of
work standards
and schedules
Contingency
Planning
Backup plans in
case primary
plans fail
Planning
A 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
Organizing
Creating 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.
Middle Manager A
First-line
(Operations)
Management
Employee 1
Employee 2
Employee 1
President
Middle Manager B
First-line
(Human Resources)
Management
Employee 2
Employee 1
Middle Manager C
First-line
(Marketing)
Management
Employee 2
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
Definition
Decision 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.
PMI
Listing all of the pluses for a solution in one
column, all the minuses in another, and the
implications in a third column.
Plus
Minus
Implications
Decision Making:
Finding the Best Alternative
Define the situation
Describe and
collect needed
information
Develop
alternatives
Develop
agreement among
those involved
Decide which
alternative is best
Do what is
indicated
Determine whether
the decision was a
good one and
follow up
Levels of
Management
Top
Management
President
Vice-Presidents
Premier, Chancellor, Mayor
Middle Management
Plant managers, Division heads,
Branch managers and Deans
Supervisory (First-Line)
Management
Supervisors, Forepersons,
Department heads and Section leaders
Nonsupervisory
Employees
Tasks & Skills
At 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 & Skills
At 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 & Skills
At 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:
Planning
Organizing
Controlling
Systems
Development
Problem
Analysis
Decision
Making
Coordinating
Delegating
Staffing
Getting 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.
Staffing
Getting 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.co
m/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
Leading
Providing 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.
Leading
Providing 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 Styles
Term
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
Autocratic
• Manager makes
decision and
announces it
• Manager “sells”
decision
• Manager presents
ideas and invites
questions
Participative/
Democratic
Free rein/
Laissez-faire
• Manager presents
tentative decision
subject to change
• Manager permits
employee to function
within limits defined
by superior
• Manager presents
problem, gets
suggestions, makes
decision
• Manager defines
limits, asks group to
make decision
Enabling
Giving 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 Leadership
1.
Set a good example
6.
Don’t give orders
2.
Give your people a set
of objectives and a
sense of direction
7.
Emphasize skills, not rules
8.
Give credit where credit
is due
9.
Praise in public
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
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 Management
1. Finding the right information
2. Keeping the information in a readily
accessible place and
3. Making the information known to
everyone in the firm.
Controlling
Making Sure it Works
Establish
clear
standards
Monitor and
record
performance
Compare
results
against
standards
Communicate
results
Are standards realistic?
If needed,
take
corrective
action
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.