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OBS 114Hoofstuk 5 / Chapter 5
General Management & Leadership
obs 114 – click-up qUIZ 1
7 – 11 March 2011
7 – 11 Maart 2011
Chapters 1 & 2
Hoofstukke 1 & 2
obs 114 – semester test
14 March 2011
14 Maart 2011
Chapters 1, 2 & 5
Hoofstuk 1, 2 & 5
Framework of chapter
• Management skills and roles
• Management levels
• Planning and strategy
• Organising
• Leadership
• Control
• Managerial decision-making
• Managing for competitive advantage
© Van Schaik Publishers 2006
General Management
• Basic management tasks conducted by all managers, irrespective of their level, nature of specialisation or the specific roles they play within the value chain.
Algemene Bestuur
•Basiese bestuurs “werkies”is “werkies” watgedoen word deur alle bestuurders ongeaghulle onderskeie vlakke, spesialisasie of die rolle wat hulle speel in die waardeketting.
85
• Focus
– Level
• Scope & Place (in value chain)
• Fokus– Vlak
• Omvang & Plek(in waardeketting)
YES, managers differ!
JA, Bestuurders verskil!
BUT, the fact remains:
• CLOP– Control– Lead– Organise– Plan
• Secondary Tasks– Motivation– Communication– Decision Making
MAAR dit bly noodsaaklik:
• BLOK• Beplan• Leierskap• Organisasie• Kontrole
• Sekondêre ___• Motiveer• Kommunikeer• Besluitneming
Managers . . .
A Manager is a ......... by ...... with ..............
‘n Bestuurder is ‘n .......... deur ....... met ............
Bestuurders . . .
Management Skills:
Bestuurs Skills:85 - 86
– Ability to understand complex ideas– Create alternatives in you mind– Solve problems– Make decisions
• Must be able to think on your feet –world is changing, diversifying
• Ability to use processes and techniques to perform designated tasks
• Success = ability to use
– Knowledge
– Techniques
– Resources
• Ability to work in teams (with other people)
• Communication Skills
• Manage Diversity
• Motivation Skills
Low Level Managers Mid Level Managers Top Level Managers
Managers . . .
A Manager is a ......... using ...... by 3 BASIC SKILL SETS
‘n Bestuurder is ‘n .......... deur ....... met 3 STELLE BASIESE VERMOEËNS
Bestuurders . . .
Roles
Rolle87
Managers . . .
A Manager is a NERD, THAT MAKES DECISIONS, COMMUNICATES THE RESULTS AND HAS MANY RELATIONSHIPS using ...... with 3 BASIC SKILL SETS
‘n Bestuurder is ‘N NERD, WAT BESLUITE NEEM, DIE RESULTATE KOMMUNIKEER EN VERHOUDINGS BESTUUR deur ....... met 3 STELLE BASISE VERMOEËNS
Bestuurders . . .
Levels of managementVlakke van bestuurders
Top managers
Middle managers
Lower-level managers
Non Managerial Employees
Leve
l of
resp
on
sib
ility
O
rganisatio
nal Fo
cus
89
Managers . . .
A Manager is a NERD, THAT MAKES DECISIONS, COMMUNICATES THE RESULTS AND HAS MANY RELATIONSHIPS using ...... with 3 BASIC SKILL SETS
‘n Bestuurder is ‘N NERD, WAT BESLUITE NEEM, DIE RESULTATE KOMMUNIKEER EN VERHOUDINGS BESTUUR deur ....... met 3 STELLE BASIESE VERMOEËNS
Bestuurders . . .
Tasks / Werkies
• CLOP
– Control
– Lead
– Organise
– Plan• BLOK
• Beplan
• Leierskap
• Organisasie
• Kontrole
CLOP
BLOK
89-99
Planning & Strategy / Beplanning & Strategie
• Types1. Strategic• Develop Vision &
Mission
• Environmental Analysis
• SWOT
• Set LT Goals
• Develop Strategies (Corporate & Functional)
• Select
• Implement & Control
• Soorte
1. Strategies• Ontwikkel Visie & Missie
• Omgewings Analiese
• FIESPIT
• Mark & Mikro
• Stel LT Doelwitte
• Onwikkel Strategie(Korporatief & Funksioneel)
• Kies
• Implimenteer & Kontroleer
CLO
P
BLOK
89
Selection of Strategy Porter 4 Generic Strategies
Low Cost Differentiation
Focused Low Cost
Focused DifferentiationSc
op
e o
f A
ren
a
Economic Logic90
Planning & Strategy / Beplanning & Strategie
• Types2. Tactical
• Intermediate between Strategic (Corporate )& Operational
3. Operational• Short term < 1 year
• Middle & First Level Mangers
4. Functional• Medium term
• Middle Mangers
• Functional Areas
CLO
P
BLOK
• Soorte2. Takties
• Tussen Strategies (Korporatiewe) & Operasioneel
3. Operasioneel• Kort Termyn < 1 jr• Middel & Eerste
Vlak Bestuurders
4. Funksioneel• Medium termyn• Middel Bestuur• Funksionele Areas
Levels of planning:
Corporate
Business (Tactical)
Functional
Operational
WHY PLAN?
• Direction – management & employees
• Advanced Technology & Processes
• Effective interaction
• Future Orientated
91
The Process of Planning:
Objectives
Formulate Plan
Implementation of Plan
Review
92
Objectives
Vision –dream
Mission –Broad LT plan
LT Goals / Strategic plans
Functional Goals & Operational Plans
OBS 114Hoofstuk 5 / Chapter 5
General Management & Leadership
Significance of
this course
The importance of this course is:
To assist you in gaining insight into the fundamentals and dynamics
of the modern business world
To facilitate comprehension of the different roles played in the
business world
To lead you to apply management principles and techniques in the
field of business
Educational
approach
You have to study the units according to the lecturing programme
prior to the actual lectures. This enables the lecturer to facilitate
a class discussion, which can solve problems and provide impetus for
further discussions. The emphasis thus moves from formal lecturing
to self-study. It is expected from you to be able to identify the
relationships between study units and elements of these units, to
enhance a holistic perception of the study field.
Instructions for
using the study
guide
This study guide is student centred. It will be expected from you to
read through the study guide and also use it before every contact
session to prepare themselves for each lecture. This should
enable you to participate productively in class activities
which may include: case studies, group discussions and presentations,
class exercises, as well as topics already completed.
“ It is the policy of the Department of Business
Management not to make any previous
examination or test papers available to students. We believe that students that study
only questions will not gain the required insight into
the prescribed literature. The desired approach
should be for students to study the prescribed
literature and then see how they can account for
their knowledge when questions are put to them
during the test/examination session”
• Absolutely NO talking in the class!
– You may answer questions by raising your hand
– and ask productive questions
• You do not need to like a lecturer BUT YOU MUST RESPECT A LECTURER & OTHER STUDENTS.
• The lecturer prepares for class, it is therefore required of students to prepare for class.
obs 114 – semester test
14 March 2011
14 Maart 2011
17:30-18:25
Chapters 1, 2 & 5
Hoofstuk 1, 2 & 5
Venues:
Surname starts with: Venue
A AE du Toit Aud
B North Hall
C South Hall
D EB4-150
E EB4-151
F IT4-1
G IT4-1
H IT4-5
I AE Annex
J Van der Bijl Hall
K EB4-152
L AE Annex
Ma - Malepe Centenary 1
Maletswa - Mathatho Centenary 2
Mathe - Mnguni Centenary 3
Mnisi - Motileng Centenary 4
Motitswe - Mzimkulu Centenary 5
N Centenary 6
O IT4-1
P IT4-4
Q IT4-5
R EB2-151
S AE du Toit Aud
T Van der Bijl Hall
U IT4-5
V Chemistry
W Chemistry
X Chemistry
Y Chemistry
Z Chemistry
Special arrangements EB3-47 (10)
Groenkloof L5 & L6 (180)
Organising / Organisering
• Unity of Command
• Chain of Command
• Span of Management
• Division of labour
• Co-ordination• Responsibility &
Authority• Delegation• Flexibility
CL
OP
BL
OK
• Eenheid van beheer
• Ketting van Beheer
• Span• Verdeling van
arbeid• Ko-ordinasie• Verantwoordelik
heid en Gesag• Delegasie• Aanpasbaarheid
93
Authority / Gesag• Formal / Informal• Line Authority (Chain of Command)• Staff Authority (Advise & assist) • Centralised Authority
– Top-down– High levels of control– Less Duplication
• Decentralised Authority– Flat– Management Development– Improved efficiency & flexibility
94
Organisational Structures
• WHY Organise?
–Easy implementation (efficiency)
–Effective Leadership
–Motivation = Success = Employees Knowing their role and function
–Control94
Functional Structure / Departmentalisation
CEO
Marketing Operations Finance
95
Advantages: Disadvantages:
Functional Specialisation Emphasises Routine Tasks
Career Development within department Conflict over priorities
Specialised Training Reduces Communication
Centralised Decision Making Develops Functional Experts
•High levels of control•Less Duplication
• No general managers developed
Product Structure / Departmentalisation
CEO
Passenger Cars
Luxury Cars
Trucks
95
Advantages: Disadvantages:
Customer Focus / Orientation Resource allocation conflict
Identify Customers and their priorities Focus on ONE type of customer
Limited / Non coordination between customer groups
Geographic Structure / Departmentalisation
CEO
GautengWestern
CapeLimpopo
96
Advantages: Disadvantages:
Id & Solve Problems unique to an area Duplication of Functions
MNE Conflict of goals
Production centralised Extensive rule & regulations to ensure uniformity
Understand customers in one area
Matrix Structure / Departmentalisation
CEO
Finance
Luxury Cars
Trucks
HR Ops
97
Advantages: Disadvantages:
Coordination Interpersonal Skills
Flexibility & Sharing of Resources Balance (Skilled Matrix Managers)
Employees learn new skills in various areas
Employees work for 2 or more managers
How do I choose?
Environmental
Macro
Market
Organisational Design
Structure
• Coordination
• Authority
• Responsibility
• Communication
• Information Flows
Strategies
Corporate Level
Business Level
Functional Level
98
Informal Structures99
Project Management Structures
ONCE-OFF
Functional Experts
Geographical Experts
Product Experts
External Experts
Leadership/ Leierskap
• Leaders are people that use their power to influence other people.
• POWER
C
LOP
B
LOK
• Leiers is mense wathulle maggebruik omander mensete beïnvloed.
• MAG
99
Types of Power:
• Legitimate power (based on position)
• Coercive power (based on fear)
• Reward power (based on rewards)
• Expert power (based on skill & knowledge)
• Referent power (personal power relationship)
• Information power (persons ability to acquire information of importance)
99
Trait Theory
Trait Theory implies that people are born with inherited traits and suggests that some traits are particularly suited to leadership. Good leaders are assumed to be people with the right (or sufficient) combination of traits
100
What traits?
Napoleon: a Leader is a dealer in hope• Motivation
• Intelligence
• Integrity
• Self-confidence
• Knowledge
• Drive
Behavioral Theory
Behavioral Theory suggests that leaders can be made, rather than born. Successful leadership is therefore based in definable, learnable behavior. Behavioral Theory is a big leap from Trait Theory, in that it assumes that leadership capability can be learned, rather than being inherent.
101
Situational Leadership
Contingency Theory (Situational Leadership) implies the leader's ability to lead is contingent upon various situational factors.
101
Leadership Factors
• Motivation: influences, causes, channels and sustains goal-directed behaviour
• Communication: transfer and exchange of information
• Group & Teams: Size
• Culture & diversity: Globalisation
101
Conrol/ Kontrole
• Ensures coordination and effectiveness
• If it’s not
measured it’s not
done
CLOP
BLO
K
• Versekerkoördinasieen _________
• As dit nie
gemeet word
nie, word dit
nie gedoen nie.
103
Types of Control:
Co
ntr
ol P
roce
ss104
Criteria for effective control• Linked to goals
• Objective
• Quantitative and qualitative
• Timely
• Acceptable
• Full understanding
• Cost-benefit
• Must result in action
• Participation
© Van Schaik Publishers 2006 105
Managers . . .
A Manager is a NERD, THAT MAKES DECISIONS, COMMUNICATES THE RESULTS AND HAS MANY RELATIONSHIPS using CLOP with 3 BASIC SKILL SETS
‘n Bestuurder is ‘N NERD, WAT BESLUITE NEEM, DIE RESULTATE KOMMUNIKEER EN VERHOUDINGS BESTUUR deur te BLOK met 3 STELLE BASIESE VERMOEËNS
Bestuurders . . .
105-110
Success is influenced by . . .
• The short & long term decisions managers make every day.
Decision-making is the process whereby managers
evaluate and compare different alternatives, selecting
the most appropriate alternative to solve a problem or
to utilise resources.
105
Problems, solutions & conditions
Relatively Common
Structured
PROBLEMS
Unusual & Ambiguous
Unstructured
PROBLEMSContinuum
Co
nd
itio
ns
of
Un
cert
ain
ty
Co
nd
ition
s of
Certain
ty
Types of decisions:
Decision type
Innovative
Adaptive
Routine
Condition
Uncertainty (High Risk)
Certainty (Low Risk)
Problem Type
Unique
Known
Solution Type
Unknown
Clearly defined
107
Rational Decision-Making Process
ID Problem
Set goals & Objectives
ID
Alternatives
Compare & Evaluate
Choose a solution
Implement
Follow-up &
Control
108
Managing for Competitive Advantage
The most important advantages are
- cost leadership
- speed
- quality
- innovation
109
Steve Jobs, Co-Founder of Apple Inc said:
“Innovation distinguishes between a leader
and a follower.”