1.

Introduction

Welcome to Essential Management Skills!

Good management skills are vital for any organization to succeed and achieve its goals. To be a
great manager, you must have an extensive set of skills – from planning and delegation to
communication and motivation.

Because this skill set is so wide, it’s tempting to build skills in the areas of management that
you’re already comfortable with. But, for your long-term success, it’s wise to analyze your skills
in all areas of management – and then challenge yourself to improve in all of these areas. This
course will help you to do so.

What are the main functions of managers?

Management is often expressed as the process of achieving an organization’s objectives through
guiding development, maintenance, and allocating resources. The four primary functions of
managers are planning, organizing, leading, and controlling.

1. Planning
Planning is the process of determining a course of action for future conditions and events with
the goal of achieving the company’s objectives. Effective planning is necessary for any business
or organization that wants to avoid costly mistakes. There are different types of planning:

§ Strategic planning involves creating long-range goals and determining the resources
required for achieving these goals. Strategic planning is the most far-reaching level of
planning and involves plans with time frames from one to five
years. Strategic planning includes analyzing the external environment and the
organization’s readiness to react.
§ Tactical planning denotes the implementation of the activities defined by the strategic
plans. Generally, tactical planning involves shorter-range plans with time frames of
less than one year.
 § Operational planning involves the creation of specific methods, standards, and
procedures for different functional areas of an organization.
§ Contingency planning involves the creation of alternative courses of action for
unusual or crisis situations.
2. Organizing
Managers have to figure out how many people are needed to get the jobs done. This
management role involves blending human and capital resources in a formal structure as well as
determining how the job flow happens. The manager will divide and classify work by determining
which specific tasks need to be carried out in order to accomplish a set of objectives.

3. Leading
Managers also have the role of leading or directing employees and plans. The goal of leading is to
guide and motivate employees in order to accomplish organizational objectives.

4. Controlling
Managers must monitor what’s going on in the company. Controlling allows a manager to
measure how closely an organization is adhering to its set goals. Important steps are: setting
performance standards, measuring the performance, taking corrective steps if necessary and
using information from the process to set future performance standards.

The primary functions of managers are:

1. Planning, 2. Organizing, 3. Leading, and 4. Controlling.

2.Leadership
Leaders and Managers
Although sometimes used synonymously, leadership and management can be quite different.
Leaders may be managers, but not all managers are leaders. So just what are the differences?

While managers tend to have their eyes on the bottom line, leaders are more often looking
toward the horizon, trying to find new opportunities for growth and development. A manager is
usually satisfied with the status quo, whereas the leader is often challenging it.
Leadership often involves reinventing the job; strong leaders create their role in an organization
or in the world system. Managers are often responsible for executing the task at hand, not
thinking of future goals.

Managers are responsible for maintaining, but leaders look to innovate. Managers may involve
employees in their activities, but often on a “need to know” basis. Leaders, in contrast, work to
inspire those around them by trying to help others gain personal growth and development from
their activities and by turning weaknesses into strengths. Companies that have “leader-
managers” throughout the corporate hierarchy are the most successful.

Remember: Leaders may be managers, but not all managers are leaders!

Emotional Intelligence

Daniel Goleman, an American psychologist, was able to analyze what “distinguishes great leaders
from good leaders”. It isn’t the intelligence quotient (IQ) or technical skills, it’s emotional
intelligence (EI): a group of five skills that enable the best leaders to maximize their own and their
followers’ performance. The EI skills are:
 § Self-awareness: The ability to recognize and understand your own moods, feelings,
and drives and also the effects on others.
§ Self-regulation: The ability to change your moods. It means learning to cheer yourself
up and handling anger effectively.
§ Motivation: A passion to work for reasons beyond money or status. Pursuing goals
with energy and persistence. Having optimism even in the face of failure.
§ Empathy: The ability to understand the social makeup of other people. Treating
people according to their emotional reactions.
§ Social Skills: The proficiency in managing and sustaining relationships and building
networks.
Understanding emotional intelligence is especially important in light of changes in organizational
structures.

Leadership Styles

Individual managers have their own styles of managing, and within organizations, there is often a
predominant style of leadership. The predominant leadership styles – autocratic, democratic, and
laissez-faire – have many variations. We can compare and contrast the effectiveness of each of
these styles as it affects employee performance.

Autocratic Leadership
This style of leadership is directive and controlling. The leader will make all decisions without
consulting employees. The autocratic style of leadership limits employee freedom of expression
and participation in the decision-making process. It will not serve to create trust between
managers and subordinates. Further, creative minds cannot flourish under autocratic leadership.
Autocratic leadership may best be used when companies are managing less experienced
employees. But managers should not use the autocratic leadership style in operations where
employees expect to voice their opinions.

Laissez-Faire Leadership
This style of leadership makes employees responsible for most of the decisions that are made.
This form requires extensive communication. Laissez-faire leadership may best be used when
employees are educated, knowledgeable, and self-motivated. Employees must have the drive
and ambition to achieve goals on their own for this style to be most effective. Laissez-faire
leadership is not a good idea in situations where employees feel insecure.

Democratic Leadership
This style of leadership is centered on employee participation and involves decision making by
consensus. The leader will involve employees in the decision-making process and they will be
encouraged to give input and delegate assignments. Democratic leadership often leads to
empowerment of employees because it gives them a sense of responsibility for the decisions
made by management. Democratic leadership may best be used when working with highly skilled
employees. It is most useful for implementing organizational changes and when the leader
requires input from knowledgeable employees. One of the down-sides of democratic leadership
is that it may lead to endless meetings.

As with many categories that describe business concepts, an organization and its leadership may
apply any or all of these leadership styles. For instance, a company may utilize an autocratic
leadership style with the lower levels but employ a democratic leadership style with its
professional staff in the upper levels.
Two additional styles of leadership worth exploring are transformational and transactional. Both
have strong ethical components and philosophical underpinnings.

Transformational Leadership
Leaders who have a clear vision and are able to articulate it effectively to others often
characterize this style of leadership. Transformational leaders look beyond themselves in order
to work for the greater good of everyone. This type of leader will bring others into the decision-
making process and will allow those around them opportunity to learn and grow as
individuals. They seek out different perspectives when trying to solve a problem and are able to
instill pride into those who work under them. Transformational leaders spend time coaching their
employees and learning from them as well.

Transactional Leadership
This leadership style is characterized by centralized control over employees. The transactional
leader will control outcomes and strive for behavioral compliance. Employees under a
transactional leader are motivated by the transactional leader’s praise, reward, and promise. They
may also be corrected by the leader’s negative feedback, threats, or disciplinary action.

The most effective leadership style is using a combination of styles. Leaders should know when it
is best to be autocratic and when to be democratic. They can also be transformational and
transactional at the same time; these are not mutually exclusive styles and in fact can
complement one another extremely well.
 Leadership Trends

In today’s competitive environment, leaders are continually searching for new ideas and
approaches to improve their understanding of leadership. Here are thumbnail descriptions of
current leadership trends.

Coaching
A new trend in effective leadership, coaching, has become extremely popular throughout
different organizations. This style of leadership involves guiding employees in their decision-
making process. When coaching, management provides employees with ideas, feedback,
and consultation, but decisions will ultimately be left in the hands of the employees. Coaching
prepares employees for the challenges they will face. The lower an employee’s skill and
experience level, the more coaching the worker will require. The interactions that an
employee has with the manager are the best opportunities they have for enhancing their
respective skills. Coaching enables the employees to excel at their tasks. Instilling confidence in
employees is extremely important.

Employee Empowerment
As organizations and companies become increasingly borderless, employee empowerment
becomes ever more important. This trend in leadership has allowed employees to participate in
the decision-making processes. Employee empowerment is also a method for building
employee self-esteem and can also improve customer satisfaction. It also ties them more closely
to the company goals and will serve to increase their pride in their work and loyalty to the
organization.

Global Leadership
As corporations become increasingly international in scope, there is a growing demand for global
leaders. Although many of the qualities that make a successful domestic leader will make a
successful global leader, the differences lie in the abilities of the leader to take on a global
perspective. Global leaders are often entrepreneurial; they will have the ambition to take their
ideas and strategies across borders. They will also have to develop cultural understanding; global
leaders must be sensitive to the cultures of those working under them, no matter where they are
based.

Equitable Treatment
An important trend in leadership is the equitable treatment of employees. This does not mean
that each employee will be treated the same; it means that every employee will be given the
amount of individual attention they require, and it will involve leadership knowing his or
her employees. A good leader will get to know employees well enough to give them what they
need in order to best perform. For some employees that may mean more structure; for others it
may mean more freedom.

Feedback
Employees thrive on feedback, and by providing feedback and communicating effectively,
managers can give employees the tools they need to improve their performance. Providing
feedback will not dampen employee morale in most cases, but will allow opportunities for
employees to learn from their mistakes and move on to perform their tasks better. Positive
reinforcement should be used to encourage employees’ positive behavior, but when criticism is
necessary, make sure it is constructive.

Management By Objectives

Management By Objectives (MBO) is a management model that aims to improve the

performance of an organization by defining objectives that are agreed to by both management
and employees. The term was first outlined by Peter Drucker in 1954. In the long run, MBO
allows the management to change the organization’s mindset to become more result-oriented.

In MBO, the management focus is on the result, not the activity. The tasks are delegated through
negotiations and there is no fixed roadmap for the implementation. The nature of its planning
process provides opportunities for the employees to find individual ways for accomplishing tasks.

Some of the important advantages are:

§ Employee empowerment increases employee motivation, job satisfaction, and

commitment.
 § Frequent reviews and interactions between superiors and employees enable better
communication and coordination.
§ The goals are clear.
§ Managers can ensure that objectives of the subordinates are linked to the
organization’s objectives.
However, there are also limitations:

§ MBO over-emphasizes the setting of goals over the working of a plan as a driver of
outcomes.
§ Not all tasks and jobs are suitable for MBO and not all employees are motivated by
finding their individual ways to accomplish tasks.
§ It under-emphasizes the importance of the environment or context in which the goals
are set.
When this approach is not properly set and managed by organizations, some employees might be
susceptible to distort results. In this case, managing by objectives would be counterproductive.
Therefore, the use of MBO must be carefully aligned with the culture of the organization.
Objectives must be discussed openly and agreed upon.

Management by Objectives (MBO) focuses on the result, not the activity.

3. Team Developement
Teamwork

Teamwork is defined as a group of people working together to achieve a common goal. Team
members are mutually responsible for reaching the goal toward which they are working. Team
building is a process meant to improve the performance of the team and involves
activities designed to foster communication and encourage cooperation. Additionally, the
objective is to avoid potential disputes and problems and to keep the morale of team members
high.

Many different industries and organizations use teams to accomplish goals because people
working together can often achieve more than they could individually. How do you know if you
need a team to complete a project? Ask yourself the following questions:

§ Can I achieve this goal by myself?

§ Do I have the resources and time to undertake this project?
§ Can a team of people be more effective than I would be in achieving this goal?
If your answers favor the involvement of others, it’s time to consider forming a team.

In an increasingly complex environment, organizations are using a team approach to bring a

diverse set of skills and perspectives into play. An effective use of teams often draws upon a
creative approach of bringing together specialists who combine their efforts and develop
intrateam synergies to meet the challenges of their often complex organizational environment.

An example of an industry that often uses teamwork is the construction industry. A successful
construction project cannot take place without the formation of teams. A design team will be
formed at the beginning of the project and is made up of architects, engineers, and project
consultants. The design team alone, however, will not be able to complete the project. They will
also need to form a team with the owner of the project and the contractor.

Types of Teams
Throughout different organizations, there are different types of teams that are used to
accomplish goals. Two of the most common team varieties are problem-solving teams and cross-
functional teams.

Problem-Solving Teams: These teams are formed only for a specific time period until a problem
is solved. Team members often consist of one level of management.

Let’s say Corporation ABC has lost 10 percent of its North American market share. All of ABC’s
regional salespeople will be called in to form a team to regain that market share. Although their
regional focus will remain, they will have to work together to solve the problem of regaining that
market share, and when they achieve that goal, they will individually work on maintaining their
hold in their market.
Cross-Functional Teams: This type of team is made up of members from different areas of the
business and often from a common managerial level.

If a car company wants to bring a new car to market, a team will be formed and its members will
consist of managers from different departments such as engineering, design, brand management,
product development, market research, marketing, and finance.
 Stages of Team Development
The forming–storming–norming–performing model of group development was first proposed by
Bruce Tuckman in 1965, who said that these phases are all necessary and inevitable in order for
the team to grow, face up to challenges, find solutions, plan work, and deliver results.

Stage 1: Forming
The first stage involves assembling the team and defining the goals, which should provide focus
and be attainable. It is important that the team leader understands the strengths of each of the
team members in order to assemble a cohesive team. Often in the forming stage, team members
will be extremely polite to one another; they will be feeling each other out. An example of a goal
that the team may set would be the project schedule. For a construction team, for example,
there are many stages of the project that should be completed in a certain time frame to ensure
that the project is completed on time for the owner. The design team designates the appropriate
amount of time for the construction phase in which the builder will make a profit. It is important
to agree upon and set this schedule from the beginning.

Stage 2: Storming
The second phase involves coordinating efforts and solving problems. If the teamwork starts to
slip because of a difficult problem, it is necessary for the team members to get the project back
on track. Team members should be conscious of the team’s health and whether the team is
taking steps in the right direction to reach the goals. It may be necessary to think creatively
about approaches to solving a problem. Communication is extremely important to effective team
performance in the storming stage. Effective teams communicate clearly and openly about
problems. Ineffective communication can cause unnecessary tension and stress to team
members. It is important that communication be relevant and responsive. Relevant
communication is task-oriented and focused. Responsive communication involves the willingness
of team members to gather information, to actively listen, and to build on the ideas and views of
other team members.
Stage 3: Norming
The project norms are an informal standard of conduct that guides the behavior of team
members. This stage involves defining team roles, rights, and responsibilities. It is important to
establish these norms at the beginning of the team-building process in order to avoid problems
along the way. In addition to allocating responsibilities, it may also be necessary to allocate the
risk that is to be undertaken by each team member. Each member of the team should have a
sense of ownership of the project. Allocating responsibility also means establishing a team
leader. Team leadership should not be a top-down effort but should be more of a coaching role.
The team leader must act as a cheerleader, encouraging the team members to work together,
providing ideas, and serving as a role model. There is often a period after the team has been
formed when a conflict of personalities or ideas will arise. Team members begin to show their
own styles; they are no longer worried about being polite. At this stage, there will be pessimism
on the part of team members in relation to the project and there may also be confusion.

Stage 4: Performing
By this stage, the team is working together effectively, problems have been smoothed out, and
achievements begin to become evident. A great deal of work will be accomplished at this stage.
The team will be able to tackle new tasks easily and confidently. They will be comfortable using
creative means. It is essential at this point to evaluate and report on the progress that has been
made.

The four stages of team development are:

1. Forming > 2. Storming > 3. Norming > 4. Performing

4. Decision Making Process

Some decisions are easy ones. But in the professional world, you will face complicated and high-
impact choices that can affect your business’s bottom line. Decision making is the process of
making choices by identifying a decision, gathering information, and assessing alternative
resolutions. Using a step-by-step decision-making process can help you make more deliberate,
thoughtful decisions by organizing relevant information and defining alternatives. A variety of
researchers have formulated similar prescriptive steps aimed at improving decision-making.

In this chapter, we want to introduce the DECIDE model by Kristina Guo. The DECIDE model
was intended as a resource for health care managers when applying the crucial components of
decision making, but it also enables managers to improve their decision-making skills, which
leads to more effective decisions.

The DECIDE model is the acronym of 6 particular activities needed in the decision-making
process:
Step 1: Define the Problem
Firstly, make sure to define what you want to achieve. Also, pay attention to involving the right
people and encourage participants to contribute to the discussions. You can use your creativity
right from the start – thinking from a different perspective might deliver the best solutions.

Step 2: Establish the criteria

Collect some information: what information is needed, the best sources of information, and how
to get it. This step involves both internal and external “work.” Some information is internal: you’ll
seek it through a process of self-assessment. Other information is external you’ll find it online, in
books, from other people, and from other sources.

Step 3: Consider all the alternatives

The more good options you consider, the more comprehensive your final decision will be. When
you generate alternatives, you force yourself to look at the problem from different angles. If you
do so, you’re more likely to make the best decision possible. Generating ideas through
brainstorming and considering different perspectives will help you and your team develop good
alternatives: Evaluate the feasibility, risks, and implications of each choice. By evaluating the risk
involved with various options, you can determine whether the risk is manageable. Determine if
resources are adequate, if the solution matches your objectives, and if the decision is likely to
work in the long term.

Step 4: Identify the best alternative

The next step is to choose between the alternatives. Compare all the choices you have and
determine the relative importance of various factors. This helps you compare unlike factors, and
decide which ones should carry the most weight in your decision. You may even choose a
combination of alternatives.

Step 5: Develop and implement a plan of action

Once you’ve made your decision, it’s important to explain it to those involved in implementing it.
Talk about why you chose the alternative. The more information you provide about risks and
projected benefits, the more likely people are to support the decision.

Step 6: Evaluate the solution

In this final step, consider the results of your decision and evaluate whether or not it has
resolved the need you identified in Step 1. If the decision has not met the identified need, you
may want to repeat certain steps of the process to make a new decision. For example, you might
want to gather more detailed or somewhat different information or explore additional
alternatives.

No one makes perfect decisions all of the time. Business environments are constantly changing
and there are lots of unknowns and what-ifs at play. Challenge yourself to go beyond the perfect
hypothetical stable business environments, and include other people in your decision-making
process to get new and different perspectives.

Hidden Traps

Bad decisions can often be traced back to the way the decisions were made – the alternatives
were not clearly defined or we missed the right information. But sometimes the fault lies not in
the decision-making process but rather in the mind of the decision-maker. The way the human
brain works can sabotage the choices we make. Harvard Professor John S. Hammond formulated
six decision making traps.

Each of these traps can influence how we make decisions. Being aware of the potential traps and
building tests and disciplines into our decision-making processes can assist.
Trap 1: Anchoring
We tend to give disproportionate weight to the first information we receive on a particular issue.
In negotiating, for example, people will often center around the first offer even if this is not
necessarily reasonable.
Tip: Avoid judging on the first impression and seek information from a variety of sources!

Trap 2: The Status Quo

In most cases, our decision making is biased towards the current situation (status quo), because it
is the “safe” and comfortable option.
Tip: Ask yourself if you’d choose the status quo choice if it weren’t the status quo!

Trap 3: Sunk Cost

Sunk costs have little to do with making a decision today as they relate to past costs and
experiences, but they still are in our minds and often lead us to make inappropriate decisions.
This trap relates to making choices in a way that justifies past, flawed choices.
Tip: Get views of people who weren’t involved in the previous decisions!

Trap 4: Confirming Evidence

We often look for evidence or opinions that will support and justify our own position or
decisions and place more weight on these issues than they deserve.
Tip: Ask somebody to play Devils’ Advocate (taking the counter position)!

Trap 5: Framing
How a question is framed can have an impact on the answer you select. A common framing trap
is to frame a question in terms of gains or losses. People tend to pick the decision that is
formulated least risky regardless of the real content.
Tip: Pose questions in a neutral manner!

Trap 6: Estimating and Forecasting

Even though most of us are not very good at making proper forecasts, we actually tend to be
overconfident about our accuracy. Additionally, we are overly influenced by vivid memories of
past events when estimating.
Tip: Be disciplined in forecasting and use statistics instead of personal impressions!

The six traps can all work in isolation. But, even more dangerous, they can work in concert,
amplifying one another. A dramatic first impression might anchor our thinking, and then we
might selectively seek out confirming evidence to justify our initial inclination. We make a hasty
decision, and that decision establishes a new status quo. As our sunk costs mount, we become
trapped, unable to find a propitious time to seek out a new and possibly better course. The
psychological miscues cascade, making it harder and harder to choose wisely.

The best protection against all psychological traps – in isolation or in combination – is awareness.
Forewarned is forearmed. Even if you can’t eradicate the distortions ingrained into the way your
mind works, you can build tests and disciplines into your decision-making process that can
uncover errors in thinking before they become errors in judgment.
 5. Project Management
Project Definition
What is a Project?
A project is “a unique endeavor to produce a set of deliverables within clearly specified time, cost
and quality constraints”. A project can be as small as moving your office or as complicated as
moving your entire company from one location to another. It can involve one person or hundreds
of people. There are, however, certain characteristics that most projects have in common.
Some typical projects are launching a new product or process, implementing a new company
software, replacing existing manufacturing equipment or reorganizing a department, division, or
organization. Project Management is the skills, tools and management processes required to
undertake a project successfully.

Projects differ from standard business operational activities:

§ Projects are unique in nature. They are one-time events and they do not involve
repetitive processes. Every project undertaken is different from the last, whereas
operational activities often involve repetitive processes.
§ Projects have a defined timescale. Projects have a clearly specified start and are
required to be completed by a certain deadline.
§ Projects have limited resources. An agreed budget as well as amount of labor,
equipment and materials are allocated to the project. This limitation requires effective
coordination of different people, resources, and processes.
§ Projects involve an element of risk. Projects entail a level of uncertainty and therefore
carry business risk should the project fail.
§ Projects achieve beneficial change. The purpose of a project, typically, is to improve
an organization through the implementation of business change.
A simple way of approaching project management is to see it as a process with four major
phases. We will explain each of these four phases on the following pages.
 Phase 1: Initiation

The Initiation Phase is the first phase of the project. Before work on the project can be started,
it’s necessary to clearly define what the outcomes of the project will be. This involves not only
what specifications and criteria the final project must meet, but when it must be completed and
what the budget is. This will probably require some study and analysis, addressing questions
about the project such as:

§ What’s the objective?

§ What are the expected, required, and desired results?
§ How will success be measured?
§ What’s the timeframe?
§ What are the resource implications?
Essential to effective project management is a clear description of the scope of the project –
what is included in the project, what is not included, and where the boundaries between the two
are set – established at the start of the project. ‘Scope creep’ is the term for what may occur
when the scope is not well defined: as the project progresses, it grows. It thus becomes more
difficult to complete the project or satisfy the client.

Imagine you are a project manager in an American construction company and your firm won a
contract to design and build the first copper mine in Northern Argentina. There is no existing
infrastructure for either the mining industry or large construction projects in this part of South
America.
During the initiation phase of the project, you should focus on defining and finding a project
leadership team with the knowledge, skills, and experience to manage a large complex project in
a remote area of the globe. You decide to open two offices: One in Buenos Aries to establish
relationships and Argentinian expertise, and the second in Catamarca – the largest town close to
the mine site. With offices in place, the project start-up team began developing procedures for
getting work done, acquiring the appropriate permits, and developing relationships with
Argentine partners.

Phase 2: Planning

Once the outcome of the project has been defined, the project enters the detailed planning
phase. It’s important to develop a plan of what work needs to be done, what resources are
needed, who will do it, and when.

The level of detail needed in the plan will be determined by the complexity of the project and
the number of people involved. The plan will probably not be followed exactly – things will
happen that lead to adjustments and modifications. One reason for having the plan is to be able
to see what needs to be adjusted when a task takes longer than expected or people or other
resources are not available when needed.

In developing the plan, consider the specifications from the client and any required completion
date, the budget, the best sequence of events (and whether any steps can be carried on
concurrently), the staff needed and the need for any staff training for their part in the project.

The planning phase involves the creation of:

§ a Project Plan (that outlines the activities, tasks, dependencies, and timeframes);
§ a Resource Plan (that lists the labor, equipment, and materials required);
§ a Financial Plan (that identifies the labor, equipment and materials costs);
§ a Risk Plan (that highlights potential risks and actions taken to mitigate them); and
§ a Communications Plan (that lists the information needed to inform stakeholders).
Two key components of any plan are milestones and status reports. A milestone marks the end
of a stage or period of the project, and may also be tied to a project deliverable, a specific
product provided to the client. During the planning, identify and establish milestones along the
way to provide an indicator of progress and successes, and the impact of difficulties or delays
that have been encountered. Also, establish a schedule and procedure for communicating the
status and progress of the plan on a regular basis. Regular timely sharing of this information will
allow the opportunity to adjust the plan and re-balance the quality, time and cost constraints.

During the planning phase, your project team develops an integrated project schedule that
coordinates the activities of the design, procurement, and construction teams.

§ The project controls team also develops a detailed budget that enabled the project
team to track project expenditures against the expected expenses.
§ The project design team builds the conceptual design and developed detailed
drawings for use by the procurement team.
§ The procurement team uses the drawings to begin ordering equipment and materials
for the construction team; develop labor projections; refine the construction schedule;
and set up the construction site.
Although planning is a never-ending process on a project, the planning phase focused on
developing sufficient details to allow various parts of the project team to coordinate their work
and allow the project management team to make priority decisions.
At this point, the project has been planned in detail and is ready to be executed.

Phase 3: Execution

The execution phase may be the longest and most visible phase of the project. It is during
this stage that activities move from paper to more tangible components. It’s important to
monitor progress, track milestones, and regularly communicate the progress, delays, or detours,
both internally to the project team and organization, and externally to the client.

Monitoring progress and tracking milestones can mean inspecting and testing interim, partial, or
pilot products, auditing work records, or holding progress review meetings to compare the
original plan of what would be done when and by whom to the actual work and output.

During the execution phase, your project team accomplishes the work defined in the plan and
makes adjustments when the project factors changed. Equipment and materials are delivered to
the worksite, labor is hired and trained, a construction site is built, and all the construction
activities, from the arrival of the first dozer to the installation of the final light switch, are
accomplished.

Phase 4: Closure
The project closure phase involves releasing the final deliverables to the customer, handing over
project documentation, terminating supplier contracts, releasing project resources and
communicating the closure of the project to all stakeholders.

While whatever has been created or developed may go on, the project team’s work is done.
Activities at the closing of the project can be split into two categories: those for the client
or stakeholder, and those for the team and organization.

§ For the client: Those who will be using the product need information to do their job
effectively. This information includes training and documentation to be turned over to
those responsible on a daily, ongoing basis for the new or revised process, system, or
product. Also included is a formal sign-off that indicates the client has accepted the
product or system.
§ For the project team: Evaluate how the project management process worked and
record lessons learned. Celebrate the completion of the project and the team’s
accomplishments. Then release or reassign the resources (staff, equipment, and
facilities) to their regular jobs or to new projects.
§
The closure phase includes turning over the newly constructed plant to the operations team of
the client. A punch list of a few remaining construction items is developed and those items
completed. You close the office in Catamarca and the office in Buenos Aries archives all the
project documents. You close the accounting books, write the final reports, and start with your
next project. Good job!

6. Negotiation
Negotiation Styles and Preparation
There are two major negotiation styles: hard and soft bargaining. Hard bargainers use a relatively
aggressive negotiation style. The focus is on achieving own goals, whereas the other party’s
situation is unimportant. Soft bargainers, on the other hand, try to find solutions that appease all
parties. They act more patient and more trustworthy.
Roger Fisher and William L. Ury, both Professors from Harvard Law School, recommend a
negotiation style called win-win negotiation. As the name suggests, this technique fits into the
category of soft bargaining styles. They base their principled negotiation, also called the Harvard
method, on the following four points:

1. Focus on the interests of all parties, not their positions.

2. Separate the people from the issue.
3. Make a list of creative options that meet the interests of both parties.
4. Base the end result on an objective standard.
Here are some steps you should consider before the negotiation process starts:

§ Choose a meeting location where you feel comfortable.

§ Establish your goals and make sure, that they are realistic.
§ Research the other party’s members and their positions.
§ Gather facts and information about the subject of the negotiation.
§ Focus on the other side’s interests to find win-win solutions.
§ Try to find options that meet the interests of both parties.
§ Define your “best alternative to a negotiated agreement” (BATNA)
What does the “best alternative to a negotiated agreement” (BATNA) mean? It is the exact point
when the deal the other side is offering is no longer beneficial to you. For example, if you are
negotiating about getting a job at firm A and you already have a job offer from firm B worth
$40,000 per year, this salary is your current BATNA.

Negotiation Process and Traps

Regarding the negotiation process, there are some strategies and tricks you should consider:

§ Make the other side feel comfortable and use small talk to break the ice.
§ Use “active listening” (listen carefully, be patient, ask questions, show
interest). Periodically repeat and summarize what they are saying so they will realize
that you are taking them seriously and actually listening to them.
§ Begin with those points most likely to be agreed upon and then proceed in descending
order of what is likely to be agreed upon.
§ Never give up “something for nothing.” Always link something that you are asked to
give up with something that you want.
§ Try to see the other person’s side and separate the people from the issue. Let the
other party know that you are seeking a win-win resolution so that both parties gain
rather than one party winning at the expense of the other.
§ Don’t be afraid to walk away, when you can’t find an agreement.
Finally, there are some traps in negotiating that people may use while negotiating with you:
 § In many cases, parties try to make even very small changes after both parties already
agreed to all parts of a contract. This trick, often used to make minimal changes, is
called nibbling.
§ Using the good guy, bad guy-trick, one individual you are dealing with is a hard,
aggressive bargainer whereas another one will try to make you believe he is working
as a mediator.
§ A party could set you an ultimatum to intimidate you and get you to sign the
agreement quickly.
§ By using the trick of limited authority, people may also offer you a deal, agree with
you on it and pretend shortly before signing the contract, that their supervisor will
only approve the deal for a slightly higher price.
§ You should also be prepared for checking statistical data the other side shows you.
Not all data is trustworthy.

7. Change Management
Lewin: Three Phases Change Model

One of the most popular models for understanding organizational change was developed by Kurt
Lewin. Lewin explained change using the analogy of changing the shape of a block of ice in three
steps. If you want to change a cube of ice towards a cone of ice, you must…

§ melt the ice (unfreeze),

§ mold the water into the shape you want (change), and
§ solidify the new shape (refreeze).
Therefore, his model is known as Unfreeze-Change-Refreeze model.
Stage 1: Unfreeze
The first stage is about getting ready to change. It involves getting to a point of understanding
that change is necessary and getting ready to move away from our current comfort zone. Key to
this is developing a compelling message showing why the existing way of doing things (status
quo) cannot continue. The more we feel that change is necessary, the more urgent it is, the more
motivated we are to make the change. This first stage involves moving ourselves, or a
department, or an entire business towards motivation for change. “Unfreezing” is usually difficult
and stressful. When you start cutting down the way things are done, you put everyone and
everything off balance.

Stage 2: Change
Change is not an event, but rather a process. That’s why the second stage can also be called
“transition”. People are now moving towards a new way of being. They start to believe and act in
ways that support the new direction. This is not an easy time as people are learning about the
changes and need to be given time to understand and work with them. People need time to
understand the changes and they also need to feel highly connected to the organization
throughout the transition period. It’s important to keep communicating a clear vision of the
desired change and the benefits to people.

Stage 3: Refreeze
This stage is about establishing stability once the changes have been made. The changes are
accepted and become the new norm. This means making sure that the changes are used all the
time; and that they are incorporated into everyday business. With a new sense of stability,
employees feel confident and comfortable with the new ways of working. As part of the
Refreezing process, make sure that you celebrate the success of the change – this helps them
believe that future change will be successful.

Lewin’s change model is a simple and easy-to-understand framework for managing change. You
start by creating the motivation to change (unfreeze). You move through the change process by
promoting effective communications and empowering people to embrace new ways of working
(change). And the process ends when you return the organization to a sense of stability
(refreeze), which is so necessary for creating the confidence from which to embark on the next,
inevitable change.

Kotter: 8-Step Change Model

Although Lewin’s model helps to describe and understand change management, there are more
detailed models that focus on how to “do” change. John Kotter, a professor at Harvard
University and world-renowned change expert, identified eight stages of change a company
must successfully complete to achieve lasting, sustainable business improvements.
Step 1: Create Urgency
During this first step, it is essential to ensure that the employees are motivated to participate. A
change is only successful if the whole company really wants it. If you are planning to make a
change, then you need to make others want it. Develop a sense of urgency around the need for
change. This may help you spark the initial motivation to get things moving. Open an honest and
convincing dialogue about what’s happening in the marketplace and with your competition. If
many people start talking about the change you propose, the urgency can build and feed on
itself.

Step 2: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadership and visible support
from key people within your organization. You can find effective change leaders throughout your
organization – they don’t necessarily follow the traditional company hierarchy. To lead change,
you need to bring together a coalition, or team, of influential people whose power comes from a
variety of sources, including job title, status, expertise, and political importance. Once formed,
your “change coalition” needs to work as a team, continuing to build urgency and momentum
around the need for change. Make them feel that they are important within the team.

Step 3: Create a Vision for Change

Create a vision that clearly defines where the organization is going. When you have a clear
vision, your team members know why they are working on the change initiative and the rest of
the staff know why your team is doing the change. A clear vision can help everyone understand
why you’re asking them to do something. When people see for themselves what you’re trying to
achieve, then the directives they’re given tend to make more sense.

Step 4: Communicate the Vision

Creating a vision is not just enough for you to implement the change. You need to communicate
your vision frequently and powerfully, and embed it within everything that you do. Talk about it
every chance you get – this could be in meetings or just talking over the lunch. When you keep it
fresh on everyone’s minds, they’ll remember it and respond to it. However, what you do is far
more important than what you say. Demonstrate the kind of behavior that you want from others.
Step 5: Remove Obstacles
No change takes place without obstacles. Always, there are people, who resist the change.
Watch out for obstacles and remove them as soon as they appear. Put in place the structure for
change and continually check for barriers to it. Removing obstacles will increase the morale of
your team, and it can help the change move forward.

Step 6: Create Short-Term Wins

Give your company a taste of victory early in the change process. Quick wins are the best way to
keep the momentum going, because nothing motivates more than success. Create not just one
long-term goal but also short-term targets. By quick wins, your team will have great satisfaction
and the company will immediately see the advantages of your change initiative.

Step 7: Build on the Change

Many change projects fail because victory is declared too early. Real change runs deep. Quick
wins are only the beginning of what needs to be done to achieve long-term change. Each success
provides an opportunity to build on what went right and identify what you can improve.

Step 8: Anchor the Changes in Corporate Culture

Finally, the change should become part of the core of your organization. “In the final
analysis, change sticks when it becomes the way we do things around here, when it seeps into the
bloodstream of the corporate body” (John Kotter). Use mechanisms to integrate the change into
people’s daily life and corporate culture. It’s also important that your company’s leaders continue
to support the change. If you lose the support of these people, you might end up back where you
started.

Each of the steps that Kotter outlines in his process is important, but none may be as crucial as
the first one. Kotter noted that for change to happen at least 75% of the company’s management
has to be on board. That’s why it is so important to take the time and effort to build the urgency
necessary to get others to buy-in to your change-related projects.

Responses to Change
In the constantly changing corporate world, the one who welcomes the changes stays ahead of
the competition. But you have to work hard to change an organization successfully. When you
plan carefully and build the proper foundation, implementing change can be much easier, and
you’ll improve the chances of success. If you’re too impatient, and if you expect too many results
too soon, your plans for change are more likely to fail.

Create a sense of urgency, train powerful change leaders, build a vision and effectively
communicate it, remove obstacles, create quick wins, and build on your momentum. If you do
these things, you can help make the change part of your organizational culture. That’s when you
can declare a true victory.
Individuals often have three different responses to change. Some will be obvious in either their
support (accelerators) or their opposition (resistors), while others accept the fact that some
degree of change is inevitable (channelers).

§ Accelerators: People in this group are interested in accelerating the changes they see
coming. These are the people who typically feel marginalized or unfulfilled by the
status quo and actually want change. Accelerators want to put the pedal to the metal
for change, to really pour it on.
§ Resistors: The second group are the Resistors who, as their name implies, are
conservative with regard to some potential change and will resist that change.
Resistors are typically those who derive their sense of self and place from the status
quo (like Elites) and for whom any change from the current state of affairs is
undesirable.
§ Channelers: The third group are the Channelers. These are the stakeholders who
recognize that change is coming, typically accept that some degree of change is
inevitable, and therefore attempt to channel it as much as possible to align with their
preferences and values.
Identifying resistance to change and managing it quickly is vital to your change management
process; failure to do so can derail even the most carefully planned change. Reinforcing
supporters alone will not guarantee a successful change process.

The first step to overcoming resistance is to understand why the resistance is there. The primary
reason for resistance is that change requires employees to alter their existing individual and
organizational identities. Once you have identified the true sources of resistance to the change,
you can work to address them. This may require individual attention. Following are some tips for
dealing with resistance once you’ve identified the cause.

§ Ask the resisters to explain why they are resistant. You might learn something that
you didn’t know before and you could even improve the change process.
§ Demonstrate the benefits of adapting to change. You might use personal gains such as
potential salary increase, recognition, promotion opportunities, etc.
§ If resistance is due to a general fear of what the change might mean to them, consider
putting the resister on a team that is determining how to implement the change. For
example, a front-line person may be afraid that upper-level decision-makers won’t
understand exactly how the change will impact them on a day-to-day basis. Putting
 this person on the implantation team lets them understand the process and can also
provide valuable information.
§ Discuss the change in broad-based meetings to put everyone on the same page and
provide everyone with the same information.
§ Although it is unpleasant to consider, individuals who stay resistant may have to leave
the organization. However, training new employees is more expensive and knowledge
will be lost. Remember that most employees will eventually adapt to change if given
the right incentives, the right information, and support.

8. Business Ethics
Business ethics deal with moral guidelines and good corporate governance. Companies are
supposed to set high standards and adhere to certain common business practices. In this chapter,
we will cover the essentials of business ethics, social responsibility, and sustainability.

Ethics and Law

Ethics are moral guidelines which govern good behavior. Today, many people believe that
business is in some way unethical or amoral. Various scandals all around the world concerning
undesirable business activities, such as the despoiling of rivers with industrial pollutants, the
exploitation of sweatshop workers, the payment of bribes to government officials, and the
deception of unwary consumers have highlighted the unethical way in which some firms have
gone about their business.

However, just because such malpractices take place, does not mean that there are not some
kinds of values or principles driving such decisions. After all, even what we might think of as ‘bad’
ethics are still ethics of a sort. And clearly, it makes sense to try and understand why those
decisions get made in the first place, and indeed to try and discover whether more acceptable
business decisions and approaches can be developed.

Many everyday business activities require the maintenance of basic ethical standards, such as
honesty, trustworthiness, and co-operation. Business activity would be impossible if corporate
directors always lied; if buyers and sellers never trusted each other; or if employees refused to
ever help each other.
Business ethics is the study of business situations, activities, and decisions where issues of right
and wrong are addressed.
It is worth stressing that by ‘right’ and ‘wrong’ we mean morally right and wrong as opposed to,
for example, commercially, strategically, or financially right or wrong. Moreover, by ‘business’
ethics, we do not mean only commercial businesses, but also government organizations, pressure
groups, not-for-profit businesses, charities, and other organizations.

So behaving ethically is doing what is morally right. But the law is also about issues of right and
wrong, correct? This is true, and there is an overlap between ethics and the law. Nevertheless,
the two concepts are not equivalent and behaving ethically is not quite the same thing as
behaving lawfully:

§ Ethics are about what is morally right and what is morally wrong.
§ Law is about what is lawful and what is unlawful.
Many moral issues are not explicitly covered by the law. For example, in many countries, there is
no law preventing businesses from testing their products on animals, selling weapons to
oppressive regimes, or preventing their employees from joining a union – decisions which many
people would define as unethical.
Similarly, there are issues that are covered by the law, but are not really about ethics. For
example, the law whether you should drive on the right or the left side of the road is not an
ethical decision.
The problem of trying to make decisions in the areas of business ethics, or where values may be
in conflict, means that many of the questions posed are ambiguous. There simply may not be a
definitive ‘right’ answer to many business ethics problems. And as is the case with issues such as
the animal testing of products, executive pay, persuasive sales techniques, or child labor,
business ethics problems also tend to be very controversial.

So business ethics is not about learning specific procedures and facts in order to make
objectively correct decisions – but it should help you to make better decisions.

Social Responsibility

Some managers believe that business’s sole duty is to make profits. In their view, it is up to the
government to determine what the laws should be. A profitable business benefits society by
creating jobs, increasing the standard of living of its owners and its employees. Corporations pay
the taxes that support government’s social action.

Today, more and more experts tend to discourage this view. Business ethics rests on the
assumption that businesses ought to adhere to a socially responsible approach to decision
making called the social responsibility approach. Proponents of this approach believe that
corporations have societal obligations that go beyond maximizing profits.
Corporate Social Responsibility (CSR) deals with actions that affect a variety of parties in a
company’s environment. A socially responsible company shows concern for all its stakeholders—
anyone who, like owners, employees, customers, and the communities in which it does business,
has a “stake” or interest in it.

Corporate Social Responsibility (CSR) is a self-regulating business model that helps a company be
socially accountable — to itself, its stakeholders, and the public.
Recognizing how important social responsibility is to their customers, many companies now
focus on and practice a few broad categories of CSR:

§ Environmental efforts: One primary focus of corporate social responsibility is the

environment. Businesses regardless of size have a large carbon footprint. Any steps
they can take to reduce those footprints are considered both good for the company
and society.
§ Philanthropy: Businesses can also practice social responsibility by donating money,
products or services to social causes. Larger companies tend to have a lot of resources
that can benefit charities and local community programs.
§ Ethical labor practices: By treating employees fairly and ethically, companies can also
demonstrate their corporate social responsibility.
§ Volunteering: Attending volunteer events says a lot about a company’s sincerity. By
doing good deeds without expecting anything in return, companies can express their
concern for specific issues and support for certain organizations.
To accomplish various CSR goals, the founders of the American ice cream manufacturer Ben &
Jerry’s, Ben Cohen and Jerry Greenfield, created the “Ben & Jerry’s Foundation.” The company
has set the bar high by giving 7.5% of its pretax profits to charitable organizations around the
world. Ben and Jerry’s strives “to show a deep respect for human beings” whether they work for
the company or not. The foundation awards more than $1.8 million per year to fund community
action, social change, and other sustainability initiatives.

Sustainability

Faced with growing global problems like environmental pollution, climate change, or waste
disposal, it has been widely suggested that the goals and consequences of business today require
radical re-thinking. One concept, in particular, appears to have been widely promoted as the new
frame for assessing not only business activities, but industrial and social development more
generally. That concept is sustainability.

For a long time, sustainability as a concept was largely synonymous with environmental
sustainability. Today, the concept of sustainability has been broadened to include not
only environmental considerations, but also economic and social considerations.

Sustainability refers to the long-term maintenance of systems according to environmental,

economic and social considerations.
All businesses must make money. But some companies realize that they can do more. The triple
bottom line (TBL) is a concept which broadens a business’ focus on the financial bottom line to
include social and environmental considerations. The concept was introduced in 1994 by John
Elkington and the three bottom lines are often referred to as the three P’s:

People: Companies that follow the triple bottom line way of doing business think about the
impact their actions have on all the people involved with them. This can include everybody from
farmers supplying raw materials, on up to the CEO of the company. Everyone’s well-being is
taken into consideration. The company offers health care, good working hours, a healthy, safe
place to work, and opportunities for education.

Planet: Triple bottom line companies take pains to reduce or eliminate their ecological footprint.
They strive for sustainability, recognizing the fact that “going green” may be more profitable in
the long run. But it’s not just about the money. Triple bottom line companies look at the entire
life cycle of their actions and try to determine the true cost of what they’re doing in regards to
the environment.

Profit: The financial bottom line is the one that all companies share, whether they’re using the
triple bottom line or not. When looking at profit from a triple bottom line standpoint, the idea is
that profits will help empower and sustain the community as a whole, and not just flow to the
CEO and shareholders.

In 2016 the Swedish furniture giant IKEA reported sales of $37.6 billion. The same year, the
company turned a profit by recycling waste into some of its best-selling products. Before, this
waste had cost the company more than $1 million per year.
Sustainable organizations recognize that profit isn’t opposed to people or planet. According to J.
Yarrow, IKEA’s head of sustainability for the UK, “We don’t do this because we’re tree huggers,
we do this because it’s very cost-effective.”
Though the triple bottom line has been around for decades, events such as the 2008 financial
crisis, the BP oil spill, and climate change cast an almost constant spotlight on corporate ethics
and corporate social responsibility.
For companies, changing operations to minimize risk and fight climate change, requires a lot of
time and money. But an upfront investment in corporate sustainability can pay off. Various
studies prove that companies that treated sustainability seriously – by making a business case for
it and setting concrete goals – were the ones that profited from sustainable activities.

9. Time Management
Time management is the process of planning and exercising control over the amount of time
spent on specific activities – especially to increase effectiveness or efficiency. Traditionally, time
management referred to just work activities, but today the term often includes personal activities
as well.

A good time management system is a designed combination of processes, tools, techniques, and
methods. Finding a time management strategy that works best for you depends on your
personality, ability to self-motivate and level of self-discipline. By incorporating some of the ten
steps below, you can more effectively manage your time:

1. Know How You Spend Your Time

Figure out how much time you usually spend on your activities and evaluate the results.
Determine which tasks require the most time; determine the time of day when you are most
productive; and analyze where most of your time is devoted.

2. Set Priorities
One of the easiest ways to prioritize is to make a “to-do” list. Put the most important tasks at the
top and tackle them first. Just be careful not to allow the list-making to get out of control and do
not keep multiple lists at the same time.

3. Use a Planning Tool

Use a personal planning tool to improve your productivity – and keep it with you. Examples of
personal planning tools include electronic planners, pocket diaries, calendars, computer
programs, notebooks, and your smartphone.

4. Get Organized
Disorganization results in poor time management. Implement a system that allows you to handle
information effectively. This is not only true for your desk and office bookcase, but also for your
computer files and your emails.

5. Schedule Your Time Appropriately

Plan your most challenging tasks for when you have the most energy and block out time for your
high priority activities. However, try to limit scheduled time to 70% of your day, leaving some
time for creative activities such as planning, thinking, and reading.
6. Delegate: Get Help from Others
Identify tasks that others can do and then select the appropriate person to do them. Be specific
in defining the work, but allow the person some freedom to personalize the task. Finally, don’t
forget to reward the person for a job well done.

7. Stop Procrastinating
Some tasks seem overwhelming, some seem unpleasant. Try breaking down the tasks into
smaller segments that require less time commitment and result in realistic deadlines. If you’re
having trouble getting started, ask some colleagues for help.

8. Manage Time Wasters

Decrease or eliminate time spent on activities imposed by other people (e.g., don’t schedule
meetings unless they are necessary and ask employees to make appointments during periods
when you have a lot of work to do).

9. Avoid Multi-tasking
Multi-tasking does not actually save time. In fact, the opposite is often true: You lose time when
switching from one task to another, resulting in a loss of productivity. Stay focused on your
current problem instead of trying to deal with ten problems at once.

10. Get time for yourself

The care and attention you give yourself is an important investment of time. Scheduling time to
relax can help you rejuvenate both physically and mentally.

Regardless of the time management strategies you use, you should take time to evaluate how
they have worked for you. Try to find a healthy balance between work and home life. Focus on
the tasks that are most important in your life. Invest enough time in your own personal well-
being. Always remember that successful time management today can result in greater personal
happiness, greater accomplishments at home and at work, increased productivity, and a more
satisfying future.

10. Case Studies & Conclusion

To complete this course and highlight its core concepts, we will take a closer look at the
leadership approaches of Steve Jobs at Apple and Bill Gates at Microsoft. After that, we will
discuss how the University of Oxford promotes sustainability. Finally, we will summarize the key
takeaways of the course.
 Case Study: Microsoft & Apple

Apple and Microsoft are two of the biggest companies in the world with each firm taking a
different business approach from an organizational and philosophical perspective. The
spectacular rise of both technology companies is directly linked with the history of their
founders.

In 1955, two of America’s most brilliant minds, Bill Gates (left) and Steve Jobs (right), were born
and grew up in different environments which reflected on their leadership skills. However, both
became successful business owners and they had a major thing in common: a passion for
innovation in the world of computing technology.

Two Geniuses with Visions

Steve Jobs was a successful entrepreneur who co-founded Apple. His beginnings were humble
pushing him to be self-made. In 1976, Steve Jobs and his friend Steve Wozniak launched their
individual company in the garage of Jobs’s home. They named it Apple Computer Company, in
memory of happy summers which Jobs had spent picking apples. Jobs resigned at Apple in 1985
but returned in 1997 and served as the company’s CEO until 2011.

Bill Gates was the chairman and CEO of Microsoft. He co-founded the company with his
childhood friend Paul Allen in 1975. In 1980, Gates had his greatest opportunity, when IBM
approached him to develop an operating system for its personal computer. In the early 1990s,
Microsoft had sold more than 100 million copies of MS-DOS. Gates became the chief architect
of Microsoft Windows and in 2014 he stepped down the chair to focus on his charity work.

Different Personalities

Bill Gates was driven by numbers, equations, and even economics. He was a software developer
who always tried to develop new software using new technologies. Slowly, he pushed himself
into the management role. Microsoft’s philosophy under the leadership of Gates was “A
computer on every desk in every house, running Microsoft software”. Bill Gates was never as
creative as Steve Jobs. Instead, he utilized the ideas and advice of his team to produce some of
the biggest technology game-changers in the market.

Steve Jobs, on the other hand, was driven by studying people and finding out what makes their
lives easier. His approach was futuristic; he thought about the future when he worked on his
innovations. Apple’s philosophy under the leadership of Jobs was “Make computer accessible to
everyone and make it very easy to use”. Jobs had a creative design mindset: He wanted to
develop his products how he saw best fit.

Different Leadership Styles

Bill Gates used a democratic leadership style. He believed in the value of input from his
employees for overall company success. He understood that in business you will have
fluctuations and changes that you must adapt to in order to succeed. Through the process of
delegation of tasks, Gates was able to develop a company that utilizes the skills of his team
members to the fullest.

Steve Jobs used an autocratic leadership style. He used to be the main person in charge of
decision making and typically decided based on his ideas without collecting any inputs from his
team members. Jobs understood the importance of taking risks and could be considered one of
the biggest risk-taking leaders in the world. His rudeness was accompanied by an ability to
inspirit Apple employees with a passion to create groundbreaking products and a belief that they
could accomplish what seemed impossible.

Different Organizational Structures

The original organizational structure of Microsoft under the leadership of Bill

Gates was functional. Through the process of delegation of tasks, Gates was able to develop a
company that utilizes the skills of his team members. Bill Gates also created a management
system known as “stack ranking” to control and motivate Microsoft employees. This program
classified employees as top performers, good performers, average, and poor. It turned out to be a
destructive process and Microsoft decided to ditch the stack ranking system in 2012.

The organizational structure of Apple under the leadership of Steve Jobs was highly centralized.
Jobs was in charge of all final tasks, supervisions and decision makings. This had definite impacts
on the corporate culture of the company with specific levels of responsibility for employees. His
top employees were more loyal to him than those at most other companies. CEOs who study
Jobs and decide to emulate his roughness without understanding his ability to generate loyalty
make a dangerous mistake.

Conclusion

Microsoft and Apple both created some of the most successful products and services in the
world. Apple’s business model was always based on innovation and consumer-centric devices.
Microsoft built its success on the licensing of software such as Windows and Office. However,
the management approaches of Steve Jobs and Bill Gates were quite different. In the end, both
were able to convert high-quality ideas into successful products.

Case Study: University of Oxford

The University of Oxford is a famous research university in Oxford, England. The history and
influence of the University of Oxford have made it one of the most prestigious universities in the
world. As of 2021, Oxford has educated many notable alumni, including 28 prime ministers of
the United Kingdom and 72 Nobel Prize winners.

With more than 23,000 students, 14,000 employees, and 230 buildings, the University of Oxford
is a large organization. Through its activities and actions, the university recognizes its impact on
the environment, locally, nationally and globally.

The university currently works to enhance its positive impact and reduce its negative impacts.
It made a commitment within the Oxford University Strategic Plan to continue to deliver its
sustainable targets. These targets will be met through continual improvement and evaluation.

The Sustainability Steering Group (SSG) of the university is responsible for the development of
sustainability strategy and monitoring its delivery, while the day-to-day implementation of the
sustainability initiative is managed by the Environmental Sustainability team.

During the last years, the university has identified seven key areas through which environmental
sustainability shall be approached. These are:

§ Energy and Carbon Management – by encouraging energy-efficient practices and

investing in its estate to reduce carbon emissions. For example, it was able to
decrease carbon intensity (carbon emissions/m²) from 2005 to 2015 by 33%. In the
year 2016, the university also installed its 1000th solar photovoltaic panel to generate
renewable energy.
§ Water Management – by reducing water consumption through water-efficient
practices and technologies. However, reducing consumption significantly remains
extremely challenging for a large research organization. Rainwater harvesting captures
rain and uses it for operations such as flushing toilets.
 § Material Resources – by encouraging preventing waste. As well as recycling and
recovering waste, the university is also working to reduce waste production through
reuse. The university developed a reuse platform through which University resources
can be shared.
§ Sustainable Travel – by reducing emissions from work-related travel and university-
owned vehicles. The university seeks to reduce the number of car journeys and to
improve the range of travel options. For example, the university decided to increase
the cycle-share program Oxonbike and to upgrade its vehicle fleet.
§ Sustainable Buildings – by making full use of available space and designing and
refurbishing buildings in line with the university’s Sustainable Building Philosophy.
§ Biodiversity – by enhancing wherever possible wildlife habitat on university-owned
land and supporting wider initiatives as appropriate.
§ Community – by increasing awareness and understanding of environmental
sustainability by staff and students and serving society by contributing and promoting
the university’s research and knowledge transfer on sustainability.
The university sets clear objectives and targets reviewed annually and supported by long-term
strategies and plans. Every year, it publishes a detailed report about its current performance on
these fields – including measurements of positive progress (targets achieved) as well as negative
progress (targets missed).

The university received numerous awards and prizes for its sustainable initiatives by the
Environmental Association for Universities and Colleges (EAUC) and the International
Sustainability Campus Network since 2010.

Additionally to its internal sustainability program, the university cooperates with city authorities
and other stakeholders in a network “to work towards Oxford City becoming a carbon-neutral
city and a center of excellence for climate change adaptation and mitigation initiatives.”

Summary
To be a great manager, you must have an extensive set of skills – from leadership skills to time
management.

Management skills can be defined as certain attributes or abilities that an executive should
possess in order to fulfill specific tasks in an organization. They include the capacity to perform
executive duties in an organization while avoiding crisis situations and promptly solving problems
when they occur. Management skills can be developed through learning and practical experience
as a manager.

While different roles and organizations require the use of various skillsets, essential management
skills help a professional stand out and excel no matter what their level. In top management,
these skills are essential to run an organization well and achieve desired business objectives.
A manager who fosters good management skills is able to propel the company’s mission and
vision or business goals forward with fewer hurdles and objections from internal and external
sources. Good management skills are vital for any organization to succeed and achieve their
goals and objectives.

We hope that this course gave you a good understanding and a complete overview of the most
important management skills and that this will help you to succeed in today’s business world and
become a better manager.