1. Leadership and Management – Part 2

2. Leading: Vision and Values

3. Leaders
Difference between managers and leaders is that managers produce order and stability while leaders embrace and manage change.
Leaders create vision for others to follow; managers carry out the vision.

4. Managers vs Leaders MANAGERS Do things right Command and control
Seek stability and predictability
Are internally focused
Work within the firm
Are locally oriented
Think mostly of workers
LEADERS
Do the right thing
Inspire and empower
Seek flexibility and change
Are externally oriented
Coordinate the whole system
Are globally oriented
Think mostly of customers and other stakeholders

5. Leadership Styles
Autocratic Leadership – involves making managerial decisions, based on information available to the manager, without consulting others; it implies power over others.
Consists of issuing orders, telling employees what to do
Motivation comes from threats, punishment, and intimidation
Effective in emergencies and when absolute followership is needed (ie. army manoeuvres)
Suits employees who do not want to make decisions

6. Leadership Styles
Democratic (participative) leadership – style that involves managers and employees working together to make decisions
Can lead to frustration if the manager’s decisions are not consistent with the input
Annoys those who do not wish to have input
Employee participation in decisions may not always increase effectiveness but usually increases job satisfaction
Traits such as flexibility, good listening skills, empathy

7. Leadership Styles
Laissez-faire (free-rein) leadership – style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish these objectives
Managers simply advise subordinates
Employees have the authority to make the final decisions themselves
Traits include: warmth, friendliness, understanding

8. Controlling

9. 5 Steps Establishing clear and specific performance standards
Monitoring and recording actual performance (results)
Comparing results against plans and standards
Communicating results and deviations to the employees involved
Taking corrective action when needed

10. Controlling Ongoing throughout the year
Weakest link tends to be the setting of standards
Standards must be specific, attainable, and measurable
ie. want to improve distance when running vs want to go from 2km to 4km within 3 months

11. Effective Managers

12. Effective Managers
Effective modern managers have three things in common:
they are action-oriented
they manage change efficiently
they are able to build a sense of shared values that will motivate and generate loyalty

13. Managerial Skills
Conceptual skills – ability to understand the relationships among the various tasks of a firm
See how the pieces fit together
Used by top-level and middle-level managers
Managers with good conceptual skills tend to be creative and are willing to consider various methods of achieving goals

14. Managerial Skills
Interpersonal Skills – skills necessary to communicate with customers and employees
Communication with Customers – ensure satisfaction, listen to complaints, bring complaints to attention of top manager
Communication with Employees – clearly communicate assignments, mistakes, listen to complaints

15. Managerial Skills
Technical Skills – skills used to perform specific day-to-day tasks
Understand the types of tasks that they manage
Important for all managers who evaluate new product ideas

16. Managerial Skills
Decision-Making Skills – skills for using existing information to determine how the firm’s resources should be allocated
Steps for decision making
Identify the possible decisions.
Gather information on all possible decisions.
Estimate costs and benefits of each possible decision.
Make a decision and implement it.
Periodically evaluate the previous decision to determine whether it should be changed.

17. Managerial Skills
Human Relations Skills – skills in understanding and getting along with people
managers with poor human relations skills may have trouble getting along with subordinates causing employees to quit or transfer
Important in all levels of management

18. Areas of Management
Marketing Managers - responsible for developing, pricing, promoting, and distributing goods and services to buyers.
Financial Managers - responsible for planning and overseeing the financial resources of a firm.
Operations Managers - responsible for controlling production, inventory, and quality of a firm's products.

19. Areas of Management
Human Resource Managers - responsible for hiring, training, evaluating and compensating employees.
Information Managers - responsible for the design and implementation of systems to gather, process, and disseminate information.
Other Managers - more specialized managers (e.g. Research and Development) may be created to meet the particular needs of a firm.