Management and Leadership
Management is the process of guiding and coordinating an organization’s resources—people, materials, and finances—to achieve its goals efficiently and effectively. Managers plan, organize, lead, and control to ensure that the organization’s objectives are met.
Leadership, on the other hand, is about inspiring and motivating people to move toward a shared vision. While management focuses on systems and processes, leadership focuses on people, influence, and direction. The best leaders balance both—combining clear planning with the ability to energize and empower others.
🔹 Similarities in Small & Large Business Management
Both have concerns about:
Capital
Marketing
Management
🔹 Definition of Management
Management: Process of achieving goals through:
Planning
Organizing
Leading
Controlling
🔹 Planning
Identify goals and objectives
Includes:
Setting goals
Developing strategies
Determining resources
Setting standards
🔹 Leading
Guiding and motivating employees
Assigning work
Explaining routines
Clarifying policies
Providing feedback
🔹 Organizing
Hiring and assigning the right people
Includes:
Allocating resources
Assigning tasks
Establishing procedures
Preparing org charts
Recruiting, training, and placing staff
🔹 Controlling
Tracking and adjusting progress
Involves:
Measuring results
Monitoring performance
Rewarding excellence
Taking corrective actions
🔹 Vision in Planning
More than a goal: defines why the organization exists
Gives direction and motivation
Without vision = team with no direction
🔹 Mission Statement
Specific form of vision
Communicates purpose to:
Employees
Customers
Stockholders
Includes:
Self-concept
Philosophy
Survival needs
Customer needs
Target market
Product or service nature
🔹 Goals vs Objectives
Goals: Long-term achievements aligned with vision
Ex: Which products to sell, where, and to whom
Objectives: Short-term steps to reach goals
Ex: Take 12 units/semester, get B’s or better
🔹 SWOT Analysis
Answers: “What is the situation now?”
Internal: Strengths & Weaknesses
External: Opportunities & Threats
Market forecasts and trends
🔹 Real-Life SWOT Examples
Strengths: Reputation, finances, tech, management
Weaknesses: Distribution, outdated facilities, R&D
Opportunities: New markets, relaxed trade barriers
Threats: Foreign competitors, slower growth
🔹 Managerial Planning Levels
Answers: “Where do we go from here?”
Top-Level (Strategic Planning):
Long-term goals (e.g., increase sales in the South)
Middle-Level (Tactical Planning):
How to meet strategic goals
Ex: Research, advertising
First-Line (Operational Planning):
Daily/weekly tasks and schedules
Contingency Planning:
Backup plans if primary plans fail
🔹 Management Hierarchy
Top: CEO, CFO, VP
Middle: Division/Plant/Branch Managers
First-line: Supervisors, Team Leads
🔹 Skill Types by Level
Top-Level: Conceptual skills (seeing big picture)
Middle-Level: Balance of technical + conceptual
First-line: Technical skills more important
All Levels: Human relations skills essential
🔹 Importance of Planning
Planning guides:
Resource allocation
Team organization
Progress monitoring
Performance control
🔹 Leadership Styles
Autocratic: Bosses make decisions alone
Best for emergencies or new/inexperienced staff
Participative: Collaborative decision-making
Boosts employee satisfaction
Free-Rein: Employees decide how to reach objectives
Ideal for professionals (doctors, engineers)
🔹 Empowerment Requires Enablement
Employees must be trained before being empowered
Otherwise, they may become:
Frustrated
Ineffective