Chapter 5

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.”