management and leadership

1. Management and LeadershipManagement and Leadership

2. Types of leadership style
 Autocratic leadership styleAutocratic leadership style
 Democratic leadership style:Democratic leadership style:
persuasivepersuasive
or consultativeor consultative
 Laissez-faire leadership styleLaissez-faire leadership style
© PhotoDisc

3. Leadership styles
 A leadership style where theA leadership style where the
leader makes all decisionsleader makes all decisions
independently or withoutindependently or without
consulting with othersconsulting with others
 Advantages: good in certainAdvantages: good in certain
circumstances, such as urgentcircumstances, such as urgent
tasks or military actionstasks or military actions
 Disadvantages: poorDisadvantages: poor
decisions, poor level ofdecisions, poor level of
employee motivationemployee motivation
AutocraticAutocratic

4. Leadership styles
 A leadership style where a leaderA leadership style where a leader
encourages employeeencourages employee
participation in decision-makingparticipation in decision-making
 persuasive or consultativepersuasive or consultative
 Advantages: better decisions,Advantages: better decisions,
employee motivationemployee motivation
 Disadvantages: delayedDisadvantages: delayed
decision, long consultationdecision, long consultation
AutocraticAutocratic
DemocraticDemocratic

5. Leadership styles
 A leadership style where
employees are encouraged to
make their own decisions within
limits.
 Advantages: more freedom for
employees
 Disadvantages: few guidelines,
little incentive, poor motivation,
maybe a mess
Autocratic
Democratic
Laissez-faire
© PhotoDisc

6.  Characteristics of Laissez-Faire Leadership
 Laissez-faire leadership is characterized by:
 Very little guidance from leaders
 Complete freedom for followers to make
decisions
 Leaders provide the tools and resources needed
 Group members are expected to solve problems
on their own
 Power is handed over to followers, yet leaders still
take responsibility for the groups decisions and
actions
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7. 7

8.  Comparison of Leadership Styles

9. Factors affecting leadership
styles
 The taskThe task
 The tradition of an organizationThe tradition of an organization
 The type of labor forceThe type of labor force
 The leader’s personalityThe leader’s personality
 The timeThe time
 Gender?Gender?
© PhotoDisc

10. Managerial
Planning and
Goal Setting

11. Planning for the Future
 Most organizations are facing turbulence and
growing uncertainty
● Economic, political, & social turmoil = managers wonder
how to cope
● Renewed interest in organizational planning
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12. Managerial Planning
and Goal Setting
 Process of planning
 How managers develop effective plans
 Goal setting
 Types of plans
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13. The Importance of Goals and
Plans
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Guides to actionGuides to action
Rationale for decisionsRationale for decisions Standard of performancStandard of performance
Goals and Plans

14. Goals and Plans
 Goal - A desired future state that the
organization attempts to realize.
 Plan - A blueprint specifying the resource
allocations, schedules, and other actions
necessary for attaining goals
 Planning – determining the organization’s goals
and the means for achieving them
 the most fundamental management function
 the most controversial management function.
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15. 15
Mission
Statement
Strategic Goals/Plans
Senior Management
(Organization as a whole)
Tactical Goals/Plans
Middle Management
(Major divisions, functions)
Operational Goals/Plans
Lower Management
(Departments, individuals)
Internal Message
Legitimacy,
motivation,
guides,
rationale,
standards
External Message
Legitimacy for
investors, customers,
suppliers, community
Levels of Goals/Plans & Their Importance

16. Benefits for the
Organization
• Legitimacy
• What the organization stands for - reason for being
• Symbolizes legitimacy
• Employees identify with overall purpose
• Source of Motivation and Commitment
• Employees’ identification with the organization
• Motivate by reducing uncertainty
• Guides to Action
• Provide a sense of direction; focus attention on
specific targets
• Direct efforts toward important outcomes
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Provided from Internal and External Messages Goals and Plans Send

17. Benefits for the Organization
• Rationale for Decisions
• Learn what organization is trying to
accomplish
• Make decisions to ensure that internal policies,
roles, performance, structure, products, and
expenditures will be made in accordance with
desired outcomes
• Standard of Performance
• Serve as performance criteria
• Provide a standard of assessment
• Always do performance then assessment
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Provided from Internal and External Messages Goals and Plans Send

18.  Purposes of Planning
 Planning is the primary management function that establishes the
basis for all other management functions
 Planning establishes coordinated effort
 Planning reduces uncertainty
 Planning reduces overlapping and wasteful activities
 Manage complexities & competition
 Planning establishes goals and
standards used in controlling
 To increase org effectiveness
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19. Definition of Planning
 Weihrich & Koontz “Planning involves selecting
missions and objectives and the actions to achieve
them; it requires decision making, that is, choosing
from among alternative future courses of action”.
 McFarland “Planning may be broadly defined as a
concept of executive action that embodies the
skills of anticipating, influencing & controlling the
nature &direction of change”.
 Terry “Planning is the selection & relating of fact &
making & using of assumption regarding the future
in the visualization & formation of proposed
activities believed necessary to achieve desired
result.”

20. What is Planning?
Planning is a search problem that requires to find
an efficient sequence of actions that transform a
system from a given starting state to the goal state
Planning is the starting point of the management
process
Predetermines what the business proposes to
accomplish and how it intends realizing its goals

21. STEPS IN PLANNING
 Being aware of opportunity :In light of Market, Competition
Customer desire, Our strengths Our weaknesses
 Setting objectives or goals: Where we want to be& what we want
to accomplish & when
 Considering planning premises: In what environment will our plans
operate
 Identifying alternatives: What are the most promising alternatives to
accomplishing our objectives
 Comparing alternatives in light of goals sought Which alternative
meets our goals at lowest cost &at highest profit
 Choosing an alternative Selecting the course of action
 Formulating derivative plans such plans as to :- Buy equipment Buy
materials, Hire& train workers,
 Budgets: Develop such budgets as Volume & price of sales,
operating expenses necessary for plans, Capital expenditure

22. Organizational Mission
 Mission = organization’s reason for existing
 Mission Statement
 Broadly states the basic business scope and operations that
distinguishes it from similar types of organizations
 May include the market and customers
 Some may describe company values, product quality,
attitudes toward employees
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23. Bristol-Myers Squibb
Mission Statement
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Our company’s mission is to
extend and enhance human life
by providing the highest-quality
pharmaceutical and related
health care products.

24. Types Of Plans
Breadth
Strategic
Operational
Specificity
Directional
Flexible plan
Specific
Non flexible
Leave no room
For interpreation
Frequency
of Use
Single use
Standing
Time Frame
Long term
Short term
© Prentice Hall, 2002

25. Strategic Goals and Plans
Strategic Goals
 Where the organization wants to be in the
future
 Pertain to the organization as a whole
Strategic Plans
 Action Steps used to attain strategic goals
 Blueprint that defines the organizational
activities and resource allocations
 Tends to be long term
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26. Tactical Goals and Plans
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●Tactical Goals
- Apply to middle management
- Goals that define the outcomes that major
divisions and departments must achieve
●Tactical Plans
-Plans designed to help execute major strategic plans
-Shorter than time frame than strategic plans

27. Operational Goals and
Plans
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• Operational Goals
- Specific, measurable results
- Expected from departments, work groups,
and individuals
• Operational Plans
- Organization’s lower levels that specify action
steps toward achieving operational goals
- Tool for daily and weekly operations
- Schedules are an important component

28. Goal Attainment
Means-end Chain
 Attainment of goals at lower levels permits the
attainment of high-level goals
 Traditional organizational responsibility
 Strategic = top management
 Tactical – middle management
 Operational = 1st
line management & workers
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29. Characteristics of Effective
Goal Setting
 Specific and measurable
 Challenging but realistic
● Defined time period
● Linked to rewards
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30. Model of the MBO Process
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Step 1: Set Goals Step 2: Develop Action Plans
Step 3:
Review Progress
Corporate Strategic Goals
Departmental goals
Individual goals
Step 4: Appraise Overall
Performance
Appraise Performance
Take Corrective Action
Review Progress
Action Plans

31. MBO Benefits and
Problems
 Manager and employee
efforts are focused on
activities that will lead to
goal attainment
 Performance can be
improved at all company
levels
 Employees are
motivated
 Departmental and
individual goals are
aligned with company
goals
 Constant change prevents
MBO from taking hold
 An environment of poor
employer-employee relations
reduces MBO effectiveness
 Strategic goals may be
displaced by operational
goals
 Mechanistic organizations
and values that discourage
participation can harm the
MBO process
 Too much paperwork saps
MBO energy
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Benefits of MBO Problems with MBO

32. Single-Use Plans
For Goals Not Likely To Be Repeated
● A program is a complex set of objectives and plans to
achieve an important, one-time organizational goal
● A project is similar to a program, but generally smaller in
scope and complexity
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33. Standing Plans
For Tasks Performed Repeatedly
● A policy is a general guide to action and provides
direction for people within the organization
● Rules describe how a specific action is to be performed
● Procedures define a precise series of steps to be used in
achieving a specific job
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Experiential Expercise: Company Crise Wave

34. Contingency Plans
Specific Situations - unexpected conditions
 Identify Uncontrollable Factors
 Economic turndowns
 Declining markets
 Increases in costs of supplies
 Technological developments
 Safety accidents
 Minimize Impact of Uncontrollable Factors
 Forecast a range of alternative responses to most-likely high-
impact contingencies
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35. Crisis Management Planning
Sudden - Devastating –Require Immediate Response
 Prevention
 Build trusting relationship with key stakeholders
 Open communication
 Preparation
 Crisis Management Team
 Crisis Management Plan
 Establish an Effective Communications system
 Containment
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Ethical Dilemma: Completing Project WebFirst

36. Planning for High
Performance
 Central Planning = Traditional Department Group of
planning specialists who develop plans for the
organization as a whole and its major divisions
and departments and typically report directly to
the president or CEO
 Decentralized Planning = High-Performance Managers
work with planning experts to develop their own
goals and plans ,to achieve specific operational
goal .
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37. Contemporary Issues In
Planning
 Criticisms of Planning
 1. Planning may create rigidity
 unwise to force a course of action when the environment
is fluid
 2. Plans can’t be developed for a dynamic
environment
 flexibility required in a dynamic environment
 can’t be tied to a formal plan
 3. Formal plans can’t replace intuition and creativity
 mechanical analysis reduces the vision to some type of
programmed routine
© Prentice Hall, 2002

38. Contemporary Issues
In Planning (cont.)
 Criticisms of Planning (cont.)
 4. Planning focuses managers’ attention on
today’s competition, not on tomorrow’s survival
 plans concentrate on capitalizing on existing business
opportunities
 hinders managers who consider creating or reinventing
an industry
 5. Formal planning reinforces success, which
may lead to failure
 success may breed failure in an uncertain environment
© Prentice Hall, 2002

39. Contemporary Issues In
Planning (cont.)
 Effective Planning in Dynamic
Environments
 develop plans that are specific, but flexible
 recognize that planning is an ongoing process
 change directions if environmental conditions
warrant
 stay alert to environmental changes
© Prentice Hall, 2002

40. Barriers to effective planning
 Difficulty of accurate premising
 Problems of rapid change
 Internal inflexibilities
policy & procedural inflexibility
capital investment
 External inflexibility
political climate
trade unions
technology changes
 Time & cost factors
 Failure of people in planning