Steve Jobs talks about Management

Homework: Research and create a profile of a

business leader from your country

Work in pairs: Find a high profile business leader you know. Analyze how
this leader‘s leadership style influences the business activities and
performance. What does him make a good leader?
This weeks lecture theme

• What does a manager do?

• Planning and is role in the managers work
• Analyze the importance of good management to the success of a business
• Analyze the differences between McGregor‘s Theory X and Theory Y
• Understand the significance of informal leadership
• Analyze the four competencies of emotional leadership
The role of the manager

• A manager organizes and plans

• Sets objectives and motivates staff
• negotiator and communicator between employees,
customers and other managers of the organization
• Gives direction to subordinates
• Accomplishes a goal and explains the vision
Fayol‘s 5 Processes of management

Henri Fayol, who was himself a manager in industrial engineering, set out a wide-ranging set of
principles based on his experience.

5 Major processes of management:

- Planning
- Organizing
- Leading
- Coordinating
- Controlling
The functions of management – what are managers
responsible for
Planning: setting objectives. Good managers think ahead. Senior management will establish
strategic objectives
- Tactical objectives for middle management
- Planning and preparation are important to put the objectives into effect
The functions of management – what are managers
responsible for
Organizing resources to meet the objective:
- Not just giving instructions
- Encourage employees to take responsibility and authority
- Structure of business needs to be clear
- Each department needs to be organized to allow them to work towards objective
The functions of management – what are managers
responsible for
Leading:
- Directing and motivating staff
- Develop staff that is motivated to employ all of their abilities
The functions of management – what are managers
responsible for
Co-Ordinating activities
- Ensure coordination between business units and departments
- More important with increasing size of business
- Goals of each branch division, region and staff must be bound together to achieve a common
sense of purpose
- For example: avoid situations where two divisions of the same company spend money into
the same new product
The functions of management – what are managers
responsible for
Controlling and measuring performance:
- Take action if underperformance occurs
- Provide feedback when things are going right
- Establish targets for all groups, divisions and individuals
Activity: The working lives of managers across different
organizations

1. Watch the following videos and use Fayol‘s 5 processes of management

2. Outline which roles or processes the managers in the clips are using.

- Planning
- Organizing
- Leading
- Coordinating
- Controlling

Info: Although the focus of the program is the CEO of each organization, there are other managers like
the Semson restaurant manager and the Oxfam store manager
Challenge 1: Semsom Lebanese food restaurants (BBC, 2013a)
Christine Sfeir is founder and CEO of Semsom, an American-style chain of
fast food restaurants selling Lebanese food.

She is planning to start franchises in the US and is keen to establish whether

the customer experience her current restaurants offer will meet the standards
expected by US diners.

The video clip shows her planning to spend a day as part of the waiting staff
team in one of Semsom’s Beirut restaurants, in a bid to identify any key
improvements, which could be made to customer service operations.
Christine experiences some of the problems and obstacles, which restaurant
staff face in delivering good customer service.

At the end of her shift, Christine reviews some of the problems she has come
across and begins to identify a priority issue, which must be addressed in
order to make an improvement to customer service.
Mintzberg’s managerial roles

In the late 1960s Professor Henry Mintzberg, conducted a detailed study of managers day-to-day
activities. He suggested that managers tend to play about ten different roles in their everyday work.

- work is characterized by pace, interruptions, brevity and a fragmentation of activities.

- Managers like talking to people and they spent much of their time in contact with others, in
meetings or networks.

Mintzberg identified ten roles that describe the variety of manager’s work.
Management roles

1. Interpersonal roles – dealing with and motivating staff at all levels of the organization
2. Informational roles – acting as a source, receiver and transmitter of information
3. Decisional roles – taking decisions and allocating resources to meet the organizations
objectives
Interpersonal 1.The manager: acts as a figurehead, the person who represents the
organisation
2.leads the staff
3.liaises between the organisation and the people outside it.
Informational 4.The manager monitors the information flows within and outside
the organisation
5.disseminates relevant information to those who need it
6.acts as spokesperson for the organisation.
Decision 7.The manager sometimes acts as an entrepreneur, initiating a
making course of action intended to change something within the
organisation
8.sometimes reacts to events, acting as a disturbance-handler
9.allocates resources, such as the matching of people and jobs, the
allocation of money, equipment, and so on
10.negotiates with others, that is, trades resources with them.
Activity: The working lives of managers across different
organizations

1. Watch the following videos and use Mintzberg’s roles of management to make notes.
2. Outline which roles the managers in the clips are using.

Info: Although the focus of the program is the CEO of each organization, there are other
managers like the Semson restaurant manager and the Oxfam store manager
Challenge 2: InterContinental Hotels Group (IHG) (BBC, 2013b)
Jan Smits is the CEO of IHG, an international hotel chain. He is concerned about the recruitment,
retention and development of skilled graduates, who are keenly sought after in IHG’s key growth
market of India.
IHG have begun a training academy, which offers a training program for graduates and an opportunity
for them to be identified for career progression.
After spending time with the I-Grads at IHG’s Crowne Plaza Hotel in New Delhi during their training,
Jan listens to their feedback.
He begins to realize that even though they are trainees, the company can begin to harness their
energy and passion for new ideas.
Activity:

Read Page 126 – 127

Do Activity 10.1 on page 128
Activity:

1 Setting objectives and planning; directing and motivating staff; measuring

performance against targets and taking action regarding underperformance;
organising resources to meet objectives; coordinating activities.
2 Interpersonal skills to mediate between the department managers to avoid
resentment; an incisive mind to identify key problems and their cause;
organisational skills to cope with a wide variety of tasks; communication skills to
communicate plans, instructions and deal with builders.
3 Any reasonable answer: Lack of coordination of activities, lack of direction for
staff, failure to plan for the future, poorly motivated staff.
Leadership - the importance of it and the qualities needed

• Be able to set a clear direction and vision

• Employees will want to follow a good leader
• A poor leader will often fail to win over staff and to communicate with workers effectively
Leadership - personal characteristics

• Leader has the desire to succeed and natural self-confidence that they will succeed
• Ability to think beyond the obvious and encourage others to do the same
• Multitalented in a way that they can understand discussions about a wide range of issues
Leading
• Leadership is the ability to influence people toward the attainment of organizational goals
 Different Styles of Leadership
Autocratic: keeps all decision making at the center of the organization

Features Drawbacks Applications

• Leader takes all • Demotivates staff • Defense forces and
decisions who want to police where quick
• Close supervision contribute and accept decisions are needed
• Only one-way responsibility • Times of crisis when
communication decisive action might
be needed to limit
damage
Different Styles of Leadership
Democratic: promotes active participation of workers in taking decisions

Features Drawbacks Applications

• Participation • Consultation with • Experienced and
encouraged staff can be time- flexible workforce
• Feedback allowed consuming • Situations that
• Full staff • Some issues of demand a new
involvement involvement might way of thinking
be too sensitive or
secret
Different Styles of Leadership
Paternalistic: manager is in better position to know what is best for organization

Features Drawbacks Applications

• Managers do what • Some workers will • When workers are
they think is best be dissatisfied with young or
for the workers the attempts to inexperienced this
• Managers want consult but having might be
workers to be no real power or appropriate
happy in the jobs influence
Different Styles of Leadership
Laissez faire: leaves much of decision making at workforce – reverse of autocratic style

Features Drawbacks Applications

• Managers delegate • Workers could • When managers
all decision making experience a lack are to busy or too
powers of security lazy to intervene
• Very broad limits • Lack of feedback
might be might be
established demotivating
Activity: 10.2. Page 130 (20 min)
McGregor‘s Theory X and Theory Y
Theory X managers believe that Theory Y managers believe that
workers workers
- Dislike work • can derive as much enjoyment
- Will avoid responsibility from work as from rest and play
- Are not creative - Will accept responsibility
- Are creative
Theory X – managers believe that workers are lazy and therefore cannot be
motivated to work harder. They therefore need to be given precise tasks and be
closely supervised.

Theory Y – managers believe that workers do enjoy work and can therefore be
given more responsibility and encouraged to be creative
The ‚best‘ leadership style

Depends on many factors:

- Training and experience of workforce
- Importance of an issue – different styles for different situations

The rapid pace of change at work, increases the need to consult and involve workers in the
process of change.

Employees are better educated and have higher expectations: democratic leadership is
increasingly common.
Homework: Exercise: Page 132 Nr. 10.4 (30 min)
136 Google exercise
Activity: 10.2. Page 130 (20 min)
Q&A
136 Google exercise
 136 Google exercise
a Managers leave workers to make their own decisions and organise own work patterns.
b Monetary rewards paid to workers to increase motivation, bonus, commission, piece rate.

2 Democratic: managers listen to workers, take on board opinions, managers then make decisions and inform
subordinates.
Autocratic: manager makes all decisions, no consultation. Subordinates are told of decisions.

3 Reputation as a good place to work – makes it easy to recruit the most able people leading to greater innovation.
10% free time working on own projects results in 50% of most innovative products.

4 Yes – professional employees can be trusted to carry out work effectively, although probably not the most
appropriate in a multi-branch bank where consistency is important and need to follow regulations. However,
could allow a degree of autonomy or opportunity to offer ideas.

No – dealing with customers who will expect certain standards across all employees and branches, much of work will be
governed by guidelines and regulations. Tend to be hierarchical structures.
Exercise: Page 132 Nr. 10.4 (30 min)
QA: Which theorist identified ten roles common to all
managers?

a) Maslow
b) Fayol
c) Mintzberg
d) Porter
e) Hofstede
Name three functions of managers according to Fayol?
Outline two personality characteristics that you think are
important for a successful leader to have