UNIT A LEADERSHIP AND SUPERVISION 2.01 Recognize the four functions of management.

2 The Four Functions of Management Planning Organizing Implementing Controlling

3 Planning Analyzing information and making decisions about what needs to be done. Strategic planning Operational planning SWOT analysis

4 Planning (cont.) Strategic planning: Developing long-term goals that focus on the broad picture of the business. Operational planning: Developing short- term goals for specific job tasks for each area of the business.

5 Planning (cont.) SWOT analysis: The examination of strengths, weaknesses, opportunities, and threats for the business. –Internal factors affecting efficiency and continued improvement Business strengths Business weaknesses –External factors which may reveal opportunities to capitalize on the advantages or disadvantages of others Opportunities in the market Threats in the market

6 Importance of planning to management Provides direction for the business Establishes goals Provides guidance –Decision making –Business’s progress Improves communication

7 Planning tools Goals Budgets Schedules Standards Policies Procedures Research

8 Organizing Determining how to most effectively accomplish goals and systematically arranging the resources of the business to complete the work.

9 Organizing (cont.) –Centralized organization: Business structure under which all major planning and organizing decisions are made by top management. –Decentralized organization: Business structure under which the business operations are divided into smaller units and local managers are responsible for the planning and organizing decisions. –Flattened organization: An organization with fewer levels of management than customary structures.

10 Organizing (cont.) Organizational chart: A flow chart that depicts the structure of a business listing job classifications and reporting relationships of the personnel.

11 Organizational Charts Line organization: Organizational structure in which the chain of command is a direct line from top management to the lowest level employee. Line-and-staff organization: Organizational structure in which staff specialists are added to the line organization. Matrix organization: A method of organizing in which employees are placed in teams for specific projects.

12 Organizational Charts (cont.) Team organization: A method of organizing in which employees are placed in permanent work groups. Self-directed work teams: Empowered work teams with complete control over their assigned workload.

13 Elements of organization Division of work Facility layout for maximum output Equipment and materials Employees

14 Organization characteristics Responsibility: The duty or obligation for an assigned task. Authority: The power to enforce rules, make business decisions, and assign job tasks to subordinate staff members. Accountability: Responsibility for the outcomes of assigned tasks. Unity of command: Each employee has only one supervisor. Span of control: The number of employees assigned to a supervisor at any given time.

15 Implementing Carrying out the business’s plans and providing guidance to help employees work effectively to achieve the goals.

16 Tools for implementing Management skills Working knowledge of how to motivate others Work teams Operations management

17 Motivating others Abraham Maslow’s hierarchy of needs theory David McClelland’s achievement motivation theory Frederick Herzberg’s two-factor theory

18 Abraham Maslow’s hierarchy of needs theory Motivation is connected to human needs. Needs must be met at each level before an individual is concerned about the next level.

19 David McClelland’s achievement motivation theory Three major needs govern individual motivation. 1.Achievement need: Motivation in which individuals take responsibility for their work, set goals, and require instant feedback on their work. 2.Affiliation need: Motivation in which individuals are concerned with interpersonal relationships and a need to get along well with others. 3.Power need: Motivation factor for individuals who want to influence and control others and like to be responsible for the group.

20 David McClelland’s achievement motivation theory (cont.) Most individuals exhibit all three needs, but some people have an intense need for achievement. Characteristics of the achievement motivated individual –Not a gambler –More concerned with achievement than with rewards –Wants concrete feedback about his/her work –Less interested in feedback about personal characteristics –Consistently thinks about doing things better

21 Frederick Herzberg’s two- factor theory Motivation is affected by the job environment (hygiene) and by what people actually do on the job (motivation).

22 Frederick Herzberg’s two- factor theory (cont.) Hygiene factors: Factors that do not lead to higher levels of motivation by their presence, but that create dissatisfaction when missing. –Company policies and administration –The kind of supervision provided –Working conditions and interpersonal relations –Salary and fringe benefits –Status and security

23 Frederick Herzberg’s two- factor theory (cont.) Internal motivators: Factors that increase job satisfaction and are related to what people actually do on the job. –Achievement –Recognition for achievement –Interest in challenging work –Increased responsibility for enlarged task –Growth and advancement

24 Frederick Herzberg’s two-factor theory (cont.)

25 Managing change Planning Communicating Involving Educating Supporting Process improvement

26 Controlling Evaluating progress, determining whether goals were achieved, and taking corrective action to improve performance.

27 Steps in controlling 1.Establish standards for each goal. 2.Measure and compare performance to the set standard. Variance Monitoring 3.Take corrective action when goals are not met. Steps to improve performance Changes to policies and procedures Revision of the standards

28 Types of standards Quantity standard: A measurement in units established to evaluate achievement of objectives. –May vary in nature due to type of business –Examples: sales quotas and contact quotas Quality standard: A measurement of excellence established to control errors or imperfections in products.

29 Types of standards (cont.) Time standard: A measurement to establish the allotment of time for completing job tasks. Cost standard: A limit placed on costs for the completion of job tasks to streamline the business and maximize profits.

30 Controlling costs Inventory Just-in-time inventory controls Credit Theft Health Safety